Core Viewpoint - The stock market is experiencing a pattern of rising on Mondays following declines at the end of the previous week, indicating a potential trend in investor behavior [2]. Group 1: Market Performance - The S&P 500 index increased by 1% on Monday after a decline of 0.6% on the preceding Friday [3]. - If the gains are maintained, this would mark the eighth consecutive Monday in 2026 that the market closed higher [3]. - The only decline for the index on a Monday occurred on February 23, when President Donald Trump announced a global tariff increase to 15% [3].

Core Viewpoint - The Trump administration is reinstating a 15% global tariff following a Supreme Court ruling that invalidated previous tariff measures, with expectations to revert to earlier rates within months [1][2]. Group 1: Tariff Implementation - Treasury Secretary Scott Bessent announced that the 15% global tariff will take effect this week [1][3]. - The administration plans to restore tariff rates to previous levels within five months [2]. Group 2: Legal Context - The reinstatement of tariffs comes after the Supreme Court struck down Trump's "reciprocal" tariffs, prompting a shift to a different legal authority for maintaining tariffs [2]. - Following the Supreme Court ruling, Trump signed an executive order imposing an initial 10% global tariff, which was later increased to 15% [4].

Core Viewpoint - The dollar is gaining support due to reduced expectations for interest rate cuts following the recent Federal Reserve meeting minutes [1] Group 1: Interest Rate Expectations - The scaling back of interest-rate cut expectations is contributing to the dollar's strength, as noted by MUFG Bank's Lee Hardman [1] - The new 10% global tariff, effective Tuesday, may lower overall tariffs, potentially allowing the Federal Reserve to reduce rates later this year by decreasing inflation [1] - Despite the potential for lower tariffs to influence rates, an immediate change in the Fed's cautious approach to rate cuts is deemed unlikely [1]

Market Overview - Equity benchmark indices Sensex and Nifty ended lower, with Sensex dropping 250.48 points (0.30%) to 83,627.69 and Nifty declining by 57.95 points (0.22%) to 25,732.30, amid foreign fund outflows and global tariff concerns [1][3] - The market sentiment was sluggish due to a weak start to the earnings season, with the Sensex experiencing a decline of 615.38 points (0.73%) during the day [3] Company Performance - TCS, the largest IT services exporter in the country, reported a 13.91% drop in December quarter profit to Rs 10,657 crore, primarily due to a one-time impact of new labour codes [6] - Among the 30-Sensex firms, major laggards included Trent, Larsen & Toubro, Reliance Industries, InterGlobe Aviation, Maruti, ITC, Adani Ports, and Bharat Electronics, while gainers included Eternal, ICICI Bank, Tech Mahindra, State Bank of India, and Tata Consultancy Services [4] Foreign Investment Activity - Foreign institutional investors sold equities worth Rs 3,638.40 crore, while Domestic Institutional Investors (DIIs) purchased stocks worth Rs 5,839.32 crore [7] Global Economic Impact - US President Donald Trump announced a 25% tariff on any country doing business with Iran, which could affect major trading partners like India, China, and the UAE [7][8] - The initial optimism in Indian equity markets was tempered by global tariff-related concerns and mixed reactions to Q3 earnings [9]