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From ServiceNow to SAP: how the software sector is offering hope to investors amid economic jitters

Enterprise software stocks found themselves in the market’s spotlight on Thursday after ServiceNow posted stronger-than-expected earnings and guidance, reassuring investors that the sector might offer a rare bright spot in an economy clouded by rising tariffs and recession fears.

Shares of ServiceNow soared more than 15% to close at $938.57, their biggest one-day gain in over a decade, making the company the top performer in the S&P 500.

The surge followed Wednesday’s after-hours release of its first-quarter results and an upbeat forecast for subscription revenue.

Demand for ServiceNow’s workflow automation offsetting macro hurdles

ServiceNow’s management projected subscription revenue growth ahead of expectations, suggesting the company can maintain momentum even if corporate budgets tighten due to macroeconomic uncertainty, including the latest round of US tariffs introduced by President Donald Trump.

“Solid execution and demand for ServiceNow’s workflow automation platform is providing a meaningful offset to an otherwise challenging macro environment,” said BofA Securities analyst Brad Sills, who raised his price target on the stock from $1,025 to $1,085.

Goldman Sachs went further, boosting its target to $1,150 and praising the company’s ongoing expansion into artificial intelligence and its monetization potential.

The optimism surrounding ServiceNow rippled through the software industry, pushing shares of Salesforce, Adobe, Intuit and Microsoft higher.

Investors welcomed the sector’s resilience at a time when other parts of the market have struggled to cope with policy shifts and inflationary pressures.

SAP helping firms keep supply chains resilient

Also supporting the positive sentiment was German software giant SAP, which reported better-than-expected results earlier in the week.

SAP’s Chief Financial Officer Dominik Asam noted that the company hasn’t yet seen a significant impact from US tariffs, adding that its outlook was based on “visible and hard data.”

SAP CEO Christian Klein told CNBC that recent discussions with US clients revealed increased reliance on software tools to navigate a more complex global trade environment.

“What they are telling me is, ‘your software is now more relevant than ever,’” he said, pointing to SAP’s role in helping firms keep supply chains resilient and cost-competitive across borders.

Klein added that the company’s confidence in its growth trajectory remains strong, allowing SAP to reaffirm its annual guidance despite the uncertain economic backdrop.

Analysts urge caution as policy risks loom

While investors cheered Thursday’s gains, some analysts warned that the current momentum might not last if global policy uncertainty persists.

“Our field checks suggest that the environment for closing enterprise deals is indeed becoming more difficult,” Macquarie analyst Steve Koeing wrote.

He noted growing caution among large enterprise customers, many of whom are wary of making major software commitments amid fears of supply chain disruption and trade volatility.

With more software companies set to report earnings in the coming days, investors will be closely watching whether the sector can maintain its performance — or whether recent gains will prove short-lived as macroeconomic challenges deepen.

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US tariff relief? China eyes exemptions for select goods, report claims

In perhaps the clearest sign yet of Beijing’s growing concern over the economic repercussions of its trade conflict with Washington, China is reportedly considering exemptions for certain US imports currently subject to steep retaliatory tariffs.

Authorities are actively soliciting input from businesses to identify goods that could potentially bypass the hefty 125% duties imposed on American products.

Beijing solicits input amid tariff strain

According to a source familiar with the matter who spoke on condition of anonymity, a dedicated task force within China’s Ministry of Commerce is compiling lists of imported items that might qualify for tariff exemptions.

Crucially, this process involves directly asking companies to submit their own requests, suggesting a targeted approach to alleviating specific economic pressures.

This development follows reports indicating potential areas of focus.

The financial news magazine Caijing reported on Friday, citing sources, that Beijing was preparing to include eight specific semiconductor-related items in an exemption list, although notably excluding memory chips.

Furthermore, a separate, unverified list detailing 131 broader categories of products – ranging from vaccines and chemicals to sophisticated items like jet engines – was circulating widely among businesses and trade groups on Friday.

However, Reuters could not independently verify the authenticity or status of this circulating list.

Official channels remained silent on the matter. Repeated attempts to reach China’s customs department by phone were unsuccessful, and neither customs nor the Ministry of Commerce immediately responded to faxed inquiries from Reuters seeking comment.

Bloomberg first reported on China considering the tariff exemptions earlier on Friday.

A shift driven by economic concerns?

This potential policy adjustment suggests a significant degree of worry within Beijing about the economic strain caused by the decoupling of the world’s two largest economies.

The move mirrors similar actions taken by Washington, which recently offered tariff exemptions for certain electronic goods imported from China, acknowledging the potential harm to its own economy.

China’s consideration of exemptions contrasts sharply with its official rhetoric, which has consistently maintained a willingness to “fight to the end” unless the US completely lifts its tariffs.

However, beneath the surface of these strong public declarations, the Chinese economy is facing considerable headwinds as it navigates the trade war.

Domestic demand remains weak, consumer spending and sentiment have struggled to fully recover to pre-pandemic levels, and the economy is showing signs flirting with deflationary pressures.

The government has encouraged exporters hit hard by tariffs to pivot towards selling within the domestic market.

However, companies undertaking this shift report significant challenges, including lower profit margins, weaker demand compared to export markets, and less reliable customer bases.

Granting targeted tariff exemptions represents a more direct form of support for affected industries and supply chains.

Dual impact: easing pain on both sides

While primarily aimed at mitigating domestic economic strain, allowing some US imports to enter without punitive tariffs could inadvertently lessen the economic pressure on the United States as well.

By permitting certain trade flows to resume more normally, these exemptions could take some pressure off the White House, even as the broader trade conflict continues.

The move underscores the complex interplay of domestic economic realities and geopolitical posturing in the ongoing US-China trade saga.

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Chinese companies look to Southeast Asia for listings amid tariff tensions

Chinese companies are increasingly looking to Southeast Asia as a fundraising and listing destination, as tariff tensions with the United States and capital movement restrictions at home prompt a shift in strategy.

The pivot is gaining momentum in 2025, with a rising number of firms exploring dual listings or asset-based offerings in regional markets such as Singapore, Thailand, and Indonesia.

“Interest in dual listings in Southeast Asia is quite real,” said Jason Saw, group head of investment banking at CGS International, a Singapore-based unit of China Galaxy Securities, in a report by WSJ.

He added that the momentum has accelerated this year, especially after President Trump’s’ “Liberation Day” tariff announcements in April,

Traditionally, Chinese companies have opted for secondary listings in the US or Hong Kong.

While Hong Kong continues to be a preferred option, ongoing tensions between Beijing and Washington are leading many firms to consider Southeast Asian financial hubs, which offer regulatory flexibility, geographical proximity, and expanding investor bases.

Clutch of IPOs, secondary listings in the works: CGS

CGS International is currently advising on eight to ten significant transactions in Southeast Asia, including initial public offerings, secondary listings, and share placements.

Most of the companies involved are based in mainland China or Hong Kong.

The firm played a key role in the Singapore Exchange debut of Helens International, a China-listed pub chain operator, last year.

Saw said two to three similar listings are scheduled for Southeast Asia in 2025, the report mentioned.

The move is driven partly by capital controls imposed by Chinese authorities, which make it difficult for companies to move funds offshore.

Dual listings and asset-based offerings provide a mechanism to raise capital abroad while staying compliant with domestic regulations.

In Thailand, a Chinese food chemical company is preparing to list its local assets on the Stock Exchange of Thailand with CGS International’s assistance.

Indonesia attracting Chinese entrepreneurs

Meanwhile, in Indonesia, Chinese entrepreneurs backed by mainland private-equity funds have launched local ventures and are exploring listings on the Indonesia Stock Exchange.

Despite a challenging year in 2024—when IPO activity across ASEAN declined by 21% in volume and 38% in value, according to EY—there is optimism for a revival in 2025.

Analysts cite easing inflation, expected interest rate cuts, and improving political stability as factors supporting a rebound in capital markets.

Demographics and diplomacy add to Southeast Asia’s appeal

Southeast Asia’s appeal also stems from its growing population and rising consumer spending power, making it an attractive destination for Chinese firms in competitive sectors such as retail, technology, and food services.

Adding to the momentum are warmer diplomatic ties between China and Southeast Asian nations.

In April, Chinese President Xi Jinping visited the region and signed several trade and business cooperation agreements aimed at strengthening cross-border investment.

While some listing plans may face delays due to ongoing geopolitical risks, the broader trend of Chinese companies looking south for fundraising is expected to continue.

“It’s natural for companies to take a pause,” Saw said. “But we believe Southeast Asia will remain a key diversification route as firms navigate geopolitical headwinds.”

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FTSE 100 shares to watch: HSBC, GSK, Glencore, NatWest, Lloyds, Shell

The FTSE 100 index extended its recovery this week, reaching its highest level since April 2. It has jumped by 11.2% from the lowest level this year. Precisely, it soared for nine consecutive days, its longest streak in over a year. 

The recovery has mirrored that of other European indices like the German DAX and French CAC 40. It began after Donald Trump softened his stance on tariffs and started negotiating with other countries. 

This article looks at some of the top FTSE 100 shares to watch next week as they publish their quarterly financial results. These firms include popular names like HSBC, GSK, NatWest, Lloyds, and Shell.

HSBC (HSBA)

HSBC, the biggest bank in Europe by assets, will be one of the top FTSE 100 shares to watch next week as it releases its results. The stock has jumped to 830p, up by almost 20% from its lowest level this month. 

Its performance is mostly in line with other top European banks whose stocks have soared this year. HSBC’s earnings will provide color on its performance as the trade war between the US and China continues.

While HSBC does not have a major presence in the US, it has a large business in China. China may need additional stimulus this year, particularly following the IMF’s downgrade of its economic outlook to 3.2%.

In most cases, China stimulus measures will lead to thinner margins as they will involve rate cuts. A key aspect to watch when HSBC releases its numbers is whether it will outsource its trading business, a move aimed to boosting returns. 

Read more: HSBC launches $2 billion share buyback as annual profit rises 6.5%

GSK

The other top FTSE 100 stock to watch will be GSK, one of the top pharmaceutical companies in the UK. While the GSK shares have bounced back from their monthly lows, they remain significantly lower than its highest levels in 2024.

These numbers come a few months after the company published strong numbers and launched a $2.5 billion buyback. A buyback helps investors by boosting the earnings per share. 

It also revised its 2025 estimates, with growth expected to be between 3% and 5%, and operating profit growth between 6% and 8%. The company also delivered its 2031 sales outlook to be £40 billion.

Glencore (GLEN)

Glencore is also one of the top FTSE 100 shares to watch as it releases its financial results next week. These numbers come at a time when the stock has been under significant pressure in recent months, having fallen by almost 50% from its highest level during the pandemic.

Glencore’s results come as most commodity prices remain under pressure because of the trade war. Fortunately, copper, its core metal, has jumped in the last three consecutive weeks as investors predict more Chinese demand.

Shell (SHEL)

Shell, the biggest energy group in the FTSE 100 index, will also release its numbers next week. These results come as its stock trades at 2,435, down from the year-to-date high of 2,842p. 

The stock will likely be affected by the trends in the oil market. As we have predicted, there are odds that the Brent and West Texas Intermediate (WTI) will crash below $50 in the near term because of the supply and demand imbalance. 

NatWest, Lloyds, and Standard Chartered

The other group of FTSE 100 shares to watch is banks like NatWest, Lloyds Bank, and Standard Chartered. These numbers come as most UK bank stocks are soaring. The Lloyds share price has jumped to 2008 highs. 

Similarly, the NatWest stock price has soared to 468p, its October 2008 highs. Standard Chartered stock has also bounced back in the past few weeks. These results will show whether these banks are still growing.

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Top CAC 40 Index shares to watch next week

The CAC 40 index has rallied in the past two weeks as concerns about Donald Trump’s tariffs ease. It initially bottomed at €6,765 earlier this month when Trump launched his Liberation Day tariffs. It has bounced back by over 10% from its lowest level this month, and is targeting the year-to-date high at €8,258, up by 10% from the current price. 

The CAC 40 index will be in the spotlight next week as some of its largest constituent companies release their financial results. Some of the top companies to watch will be Airbus Group, TotalEnergies, Société Générale, Capgemini, Vivendi, and Schneider Electric.

Airbus Group (AIR)

Airbus Group share price remains under pressure even as the odds of more Chinese business rose. As a European company, Airbus has seen more orders as many Chinese firms have stopped ordering from Boeing. 

Airbus stock has dropped by over 20% from its highest level this year. This decline is primarily due to Trump’s tariffs, which are expected to lead to margin compression and supply chain issues. 

Therefore, the upcoming earnings will provide more information about its business and how it is navigating the new normal.

Read more: Airbus stock price analysis: big beneficiary of Trump’s trade war

TotalEnergies (TTE)

TotalEnergies will be one of the top CAC 40 companies to watch next week as it releases its financial results. Its stock trades at €52, up slightly from the year-to-date low of €47.63. 

The stock has come under pressure as investors remain concerned about oil demand. Top agencies like the IEA and EIA have all slashed their oil demand estimates this year. There are concerns that crude oil prices will remain under pressure this year.

TotalEnergies raised its dividends and accelerated its share buybacks when it published its results earlier this year. Like its American peers, Chevron and Exxon, it is focusing on shareholder returns as profits decline

Societe Generale (SocGen)

Societe Generale’s share price has surged and is nearing its all-time high of €44.40. Its rally has mirrored that of other top European banks, such as BNP Paribas, Lloyds, and NatWest.

SocGen, as it is commonly known, will publish its financial results next week. While growth is expected to slow, investors are focused on its dividend payouts and share repurchases. It paid investors €1.7 billion last year, and hinted towards more if the European Union suspends implementing Basel rules. 

Schneider Electric (SU)

Schneider Electric stock price remains 22% below its highest level this year as concerns about its growth and tariffs remain. It has, nonetheless, remained 20% above the lowest level this year. 

Schneider Electric’s business has benefited from the ongoing data center boom because of the artificial intelligence craze. In February, it boosted its forecast, with the EBITDA margin expected to be between 19.2% and 19.5%. It expects that its organic revenue will grow by between 7% and 10%.

A key concern for Schneider is that it exports most of its products to the US, which accounts for 36% of sales. As such, most of these products are now costing 10% extra, which may affect its demand.

Other CAC 40 shares to watch

There will be more CAC 40 index companies to watch next week as they release their results. The most notable ones are Legrand, Air France-KLM, Alstom, and Veolia. 

Additionally, the index will react to any trade-related news from the United States. Like other global indices, it will also react to earnings from American powerhouses like Microsoft, Meta Platforms, Apple, and Amazon. Historically, these companies usually have an outsize impact on global earnings because of their size.

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Berkshire Hathaway stock price is thriving: could BRK hit $1M soon?

Wall Street stocks had an eventful April as the fear and greed index plummeted to the extreme fear zone amid Donald Trump’s tariff announcements. The S&P 500 index formed its first death cross in over two years. However, the Berkshire Hathaway stock price did well, and is now hovering near its all-time high. 

Berkshire’s performance has helped Warren Buffett grow his fortune at a time when most billionaires have suffered significant losses. Elon Musk has a net worth of $310 billion, $122 billion lower than where he started the year at. 

Jeff Bezos has lost $36 billion this year, while Mark Zuckerberg, Bill Gates, Bernard Arnault, Larry Ellison, Sergey Brin, and Larry Page have shed over $120 billion in value. 

Warren Buffett, on the other hand, has added over $22.4 billion to his fortune, and is now worth $164 billion. This performance happened for two main reasons: his huge cash position and the fact that most of the portfolio companies are not affected by tariffs.

Berkshire Hathaway stock is supported by cash

The primary reason the BRK stock price has performed well this year is that Warren Buffett has largely shifted to cash over the past few months.

He has sold large positions on companies like Apple and Bank of America, a process that has led to his cash balance being worth over $334 billion. He has doubled that amount since the company had about $164 billion at the end of 2023.

Having a large cash balance benefits Berkshire Hathaway stock in three main ways. First, the cash, unlike stocks, don’t decline when the market is crashing, which helps to provide stability to the firm. 

Second, the large cash hoard means that the company is making free money. That’s because Buffett invests his cash hoard in government bonds, which are now yielding about 4%. As such, its interest income could be worth over $13 billion. 

The company generated an interest income of $13.7 billion last year, significantly higher than its interest expense of $4.9 billion. This means that it made $8.8 billion in interest income.

Furthermore, the cash balance enables the company to make significant acquisitions, particularly now that American stocks have declined. Buffett has a long history of making such acquisitions. For eaxample, Buffett famously bought bank stocks like Goldman Sachs, Bank of America, and Wells Fargo during the last crisis.

BRK stocks not exposed greatly to tariffs

The Berkshire Hathaway stock price has done well because most of the companies in the fund are not exposed to Donald Trump’s tariffs directly. 

Trump has exempted Apple from tariffs because the surge in iPhone prices would be seen by customers. American Express, Bank of America, Coca-Cola, Moody’s, Chevron, and Occidental are not affected directly. 

The same is true with other companies like VeriSign, T-Mobile, Visa, Mastercard, Aon, and Capital One Financial. In other words, Buffett has created an all-weather portfolio that is hard to disrupt.

Berkshire Hathaway stock price analysis

BRK stock price chart | Source: TradingView

The daily chart shows that the BRK stock price has done well in the past few months. It has jumped to near $800,000, and is nearing the all-time high of $807,885. The stock has moved above the 50-day and 100-day Exponential Moving Averages (EMA). 

It has remained above the Ichimoku cloud indicator. Therefore, the outlook for the stock is highly bullish. A move above the resistance level at $807,885 will point to more gains to $1 million, up by 23% above the current level. A drop below the support at $740k will invalidate the bullish view.

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GBP/USD forecast: C&H pattern signals more pound gains this year

The GBP/USD exchange rate has pulled back this week as the US dollar index (DXY) has stabilized. It initially rose to a high of 1.3430 earlier this week and then pulled back to the current 1.3300. This article explores what to expect after the latest UK retail sales data, and as the odds of Bank of England (BoE) rate cuts rise. It also mentions that the GBPUSD pair has formed a cup and handle pattern pointing to more gains in the long term.

Bank of England interest rate cuts odds rise

The GBP/USD pair pulled back this week as investors predicted that the Bank of England would start cutting interest rates more aggressively as concerns about tariffs rose. 

The bond market is also signaling this, with the yield of the ten-year GILTs falling to 4.5%. It has dropped by almost 10% from its highest point in 2024. It has dropped in the last five consecutive days. 

Similarly, the closely-watched five-year yield has dropped to 4% from last year’s high of 4.65%. Bond yields typically drop when analysts anticipate a central bank to cut interest rates.

A key concern for the UK market is that analysts expect the economy to slow this year. In a report this week, the IMF warned that the UK will be one of the most hit economies by these tariffs. It then predicted that the BoE will deliver at least three more interest rate cuts.

The BoE has been one of the most hawkish central banks this year. Unlike the European Central Bank, it has delivered just two cuts this cycle as it remained concerned about the elevated inflation rate in the country. 

Data released on Friday shows that the country’s retail sales did well in March. Total sales rose by 2.6% in March, higher than 1.8% in the previous month. Core sales jumped by 3.3%, a big increase from 1.8%. 

US dollar index has stabilized

The GBP/USD pair has pulled back because the US dollar index (DXY) has stabilized in the past few days. It initially crashed to a multi-year low of $97.95 earlier this month and then rebounded to its current level of $99.53. 

The US dollar has jumped against other popular currencies like the Japanese yen and the euro.

This recovery is primarily because Trump promised not to fire Jerome Powell, the Fed Chair who has maintained a balanced tone on inflation. He has said that the bank will cut rates only if only inflation continues falling.

The US dollar also jumped after Trump signaled that he was open to negotiating with China. He said that Chinese officials were talking to the White House, a statement the Beijing has rejected. 

Read more: DXY: US dollar index outlook if Trump fired Fed’s Jerome Powell

GBP/USD technical analysis: C&H points to more gains

GBPUSD chart | Source: TradingView

The daily chart shows that the GBP/USD exchange rate has surged in the past few months. It rose and hit the crucial resistance level at 1.3430 this week. This was a notable achievement, as it marked the highest level recorded in 2024. It was also the upper side of the cup and handle pattern that has been forming for years. C&H is a popular continuation pattern, and the recent pullback is the formation of the handle section.

In this case, the pattern has a depth of about 10%. Therefore, measuring this distance from the cup’s upper side brings the target price to 1.4770. 

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USD/CAD analysis: forms a death cross ahead of Canada election

The USD/CAD exchange rate has crashed, forming a death cross pattern ahead of the upcoming Canadian election. It has plunged from a high of 1.4795 earlier this year to 1.3900.

Canada election ahead

The USD to CAD exchange rate has been in a strong downtrend over the past few weeks due to the decline in the US dollar index (DXY). 

The key catalyst for the pair will be next week’s Canadian election on April 28. This election will be a contest between Mark Carney, the current Prime Minister, and Pierre Poilievre. 

Analysts anticipate that Carney’s Liberal Party will win because of the recent trade skirmish with the United States. Before the trade war, Poilievre was expected to win because of Justin Trudeau’s low approval ratings. 

As such, many Canadians see the election as a referendum on who can handle Trump better. Carney has vowed to be tough on Trump and not to cave in. While Poilievre has also vowed to protect Canada’s interests, many Canadians expect him to be softer on Trump.

Trump has implemented tariffs on Canadian goods, ending the USMCA deal that he negotiated in his first term. Most Canadian goods are being charged a 25% tariff on most goods from the United States. 

Trade worth $923B to be disrupted

These tariffs are affecting goods worth over $923 billion. The US exports goods valued at over $441 billion to Canada and then imports about $482 billion. Excluding energy, the US has a trade surplus with Canada. 

The USD/CAD pair will likely react mildly to the election results since the current policies will continue. 

However, the most notable difference will be a Poilievre victory since he has vowed to implement some policy changes, including reducing income tax to 12.75%, increasing tax-free savings account contributions by $5,000, and deferring capital gains taxes if reinvested in the country. 

Economists expect that the Bank of Canada (BoC) will continue cutting interest rates later this year as inflation continues falling. Recent data show that the headline Consumer Price Index (CPI) dropped from 2.6% in February to 2.3%. 

The BoC has been cutting interest rates, moving from a high of 5% to 2.75%. It may continue cutting rates this year.

The USD/CAD pair has also declined due to the recent decline in the US dollar index. It has dropped from $110 earlier this year to below $100. 

USD/CAD technical analysis

USD/CAD chart by TradingView

The daily chart shows that the USD/CAD exchange rate has dropped from a high of 1.4795 in February to the current 1.3900. 

It has dropped below the 50% Fibonacci Retracement level at 1.3940. Also, the pair has formed a death cross pattern as the 50-day and 200-day Weighted Moving Averages (WMA) have crossed each other. 

The pair has formed a bearish pennant pattern, which is characterized by a vertical line and a triangle pattern. Therefore, the pair will likely continue falling as sellers target the key support at 1.3735, the 61.8% retracement point. 

The post USD/CAD analysis: forms a death cross ahead of Canada election appeared first on Invezz

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Indian markets open: Sensex tops 80K, Nifty above 24.3K on positive global cues

Indian equity benchmarks started Friday’s trading session on a positive footing, extending recent gains as favourable cues from global markets spurred buying interest, particularly in technology, pharmaceutical, and automotive stocks during the initial hours.

Building on the momentum from previous sessions, both the Sensex and Nifty 50 opened higher.

Around 9:27 am, the 30-share BSE Sensex was trading at 80,066.81, up 265.3 points or 0.33 per cent from its previous close.

The broader NSE Nifty 50 index added 89.85 points or 0.37 per cent, trading comfortably above the 24,300 mark at 24,336.55.

This positive start indicated continued investor confidence following a strong run-up in recent days.

Global cues provide updraft

The domestic optimism was significantly bolstered by a strong performance in overseas markets overnight.

US stock indices rallied sharply on Thursday, with investors actively buying into technology stocks that had recently faced pressure.

Analysts noted this buying helped lift the S&P 500 out of correction territory.

The Dow Jones Industrial Average closed 1.23% higher, the S&P 500 climbed 2.03%, and the tech-heavy Nasdaq Composite surged 2.74%.

This positive sentiment carried over into Asian trading on Friday morning, with markets in Jakarta, Bangkok, Seoul, Hong Kong, China, and Japan all registering gains.

Sectoral currents and broader market check

Early trading in India saw clear sectoral preferences emerge. IT, Pharma, and Auto stocks attracted buying interest, contributing to the headline indices’ gains.

However, the Nifty Bank index experienced a slight pullback, trading down 0.40% or 222.85 points at 54,978.55.

The broader market displayed mixed signals in the initial phase; the Nifty Midcap 100 index edged slightly higher (+0.02% at 54,980.80), while the Nifty Smallcap 100 index saw a decline (-0.35% at 16,903.30).

Movers and shakers: tech leads gainers

Within the Sensex pack, technology and automotive names featured prominently among the early gainers.

TCS, Tata Steel, Maruti Suzuki, Eternal [as per source], ICICI Bank, SBI, HDFC Bank, Infosys, M&M, and Tata Motors were trading higher.

Conversely, Axis Bank, Tech Mahindra, Nestle India, and IndusInd Bank were among the stocks experiencing early selling pressure.

Institutional flows signal confidence

Adding to the positive backdrop was the continued strong participation from foreign institutional investors (FIIs).

Data from the previous session (April 24) showed FIIs were substantial net buyers, purchasing Indian equities worth Rs 8,250.53 crore.

Domestic institutional investors (DIIs), however, were net sellers on the same day, offloading equities worth Rs 534.54 crore.

The significant net inflow from FIIs indicated sustained foreign investor confidence in the Indian market outlook.

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Asia markets open: Nikkei climbs over 1% on Fed optimism, strong Alphabet earnings

Asian stock markets advanced broadly at the open on Friday, taking strong cues from a powerful rally on Wall Street overnight.

Investor optimism was largely driven by rising expectations for earlier-than-anticipated interest rate cuts from the US Federal Reserve, coupled with encouraging earnings results from technology giant Alphabet Inc., though underlying caution regarding global trade persisted.

The positive sentiment sweeping through the region followed a stellar performance in US markets, where stocks surged on Thursday.

The key MSCI Asia Pacific ex-Japan index reflected this, trading 0.11% higher at 569.53.

Japan’s Nikkei 225 led the charge among major indices, climbing over 1.39 per cent, while South Korea’s Kospi gained as much as 1 per cent, and Australia’s S&P/ASX 200 rose 0.6 per cent.

A significant catalyst for the improved risk appetite stemmed from comments by Federal Reserve officials suggesting increased openness to monetary policy easing.

Fed Governor Christopher Waller indicated support for rate cuts should aggressive tariff levels negatively impact the jobs market.

Similarly, Cleveland Fed President Beth Hammack mentioned the possibility of rate adjustments as early as June if clear economic signals emerge.

“While the Fed has maintained a cautious approach to monetary easing, we believe it will be willing and able to respond to signs of economic weakness, especially rising layoffs,” noted Ulrike Hoffmann-Burchardi, chief investment officer for global equities at UBS Global Wealth Management, echoing the market’s interpretation.

Tech gains boosted by Alphabet beat

Adding significant fuel to the rally was positive news from the tech sector.

Google-parent Alphabet Inc. reported first-quarter revenue and profit that exceeded analysts’ estimates after the US market close Thursday.

This strong performance sent Alphabet shares up 4.9% in after-hours trading and provided an immediate lift to futures contracts for the S&P 500 and Nasdaq 100, which gained 0.4% in early Asian trading, further bolstering regional sentiment.

The S&P 500 had already jumped on Thursday to its highest close since the day President Donald Trump initially announced his broad tariff offensive.

While Fed hopes and tech strength dominated the immediate narrative, the global trade situation remained a source of underlying caution.

Global stocks had advanced for three straight days, partly reflecting optimism that the White House might secure trade deals with key partners.

Treasury Secretary Scott Bessent fueled some of this optimism, suggesting the US might reach an “agreement of understanding” with South Korea on trade as soon as next week, following reports of “significant progress” with India.

However, the crucial US-China relationship remained complex.

President Donald Trump stated Thursday that talks were occurring, despite prior denials from Beijing and demands for the US to revoke unilateral tariffs.

“They had a meeting this morning,” Trump said Thursday. “It doesn’t matter who ‘they’ is… we’ve been meeting with China.”

Meanwhile, reports indicated Japan intends to resist US efforts to draw it into an economic bloc specifically targeting China, underscoring the geopolitical complexities.

Analyst caution amidst market gains

Despite the multi-day rally, some market analysts advised caution, pointing to potential headwinds.

Concerns persist that the risk of an economic slowdown, potentially exacerbated by tariffs, could negatively impact corporate profits.

Measures of earnings revisions breadth for the S&P 500 are reportedly approaching pessimistic extremes.

Deutsche Bank AG’s Bankim Chadha, previously a noted bull, significantly slashed his year-end S&P 500 target by 12% to 6,150, forecasting a 5% earnings decline this year versus the consensus expectation of 8% growth, citing tariff impacts.

Amidst this uncertainty, the advice from strategists like Daniel Skelly, head of Morgan Stanley’s Wealth Management Market Research & Strategy Team, is pragmatic.

“Investors should continue to focus on the long term, with an eye toward companies with high earnings achievability, limited tariff exposure, and quality balance sheets,” he told Bloomberg.

Commodities and currencies reflect shifting sentiment

In commodity markets, gold futures traded with modest gains, supported by a generally weaker US dollar, though prices remained below the record highs hit earlier in the week (last trading around $3,362.89 per ounce).

Silver futures also saw gains. The slightly weaker dollar environment generally supports risk assets in emerging markets and commodity prices.

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