Indian equity markets are expected to open on a flat-to-positive note on Wednesday, driven by falling crude oil prices and mixed global signals.

Key Market Highlights:

India's Economy to Become Third-Largest by 2027
Commerce Minister Piyush Goyal has stated that India is on track to surpass Japan and Germany to become the third-largest economy by 2027, boosting investor confidence.

Rupee to Stabilise Post Volatility
A State Bank of India (SBI) report forecasts that the Indian rupee, which might experience initial volatility, is likely to stabilise soon, attributing recent swings to what it termed the “Trump Tantrum.”

India-UK Free Trade Agreement Talks Resume
The UK Parliament announced the resumption of Free Trade Agreement (FTA) negotiations with India, aiming to strengthen bilateral ties further.

Auto Sector in Focus
Automobile dispatches to dealers increased by 12% in 2024, reaching 2.54 crore units compared to 2.28 crore in 2023, according to SIAM, driven by strong consumer demand for two-wheelers.

Aviation Industry Faces Continued Losses
ICRA predicts a net loss of ₹2,000–₹3,000 crore for the aviation sector over the next two fiscal years due to supply chain disruptions and engine-related challenges.

Global Markets Update
US markets closed mostly higher on Tuesday as investors analyzed inflation data and awaited quarterly earnings. Meanwhile, Asian markets showed mixed trends on Wednesday, reflecting gains on Wall Street.

Domestic Markets Recap:

Indian benchmarks rebounded on Tuesday after four days of losses, supported by value buying and firm European market trends.

• Sensex: Gained 169.62 points (0.22%) to close at 76,499.63
• Nifty: Rose 90.10 points (0.39%) to end at 23,176.05

Factors Impacting the Market:

Decline in Retail Inflation
Retail inflation fell to a four-month low of 5.22% in December 2024, providing room for the Reserve Bank of India to consider reducing interest rates.

Wholesale Price Inflation (WPI) Increases
WPI rose to 2.37% in December 2024 due to higher costs of manufactured goods, despite easing food prices.

Rupee Recovers from Historic Low
The Indian rupee strengthened by 12 paise to settle at ₹86.62 against the US dollar as the greenback weakened globally.

Quarterly Earnings in Focus
HCL Technologies reported a 5.58% increase in net profit for Q3FY25, reaching ₹4,594 crore compared to ₹4,351 crore in the same period last year.

Treasury Yields Drop, Crude Oil Prices Stabilize
US Treasury yields declined, with the 10-year yield retreating from a 14-month high. Brent crude prices eased by 0.33% to $80.74 per barrel.