Indian stock markets are expected to start on a positive note, driven by firm global trends. Key market drivers today include forex data, January's PMI Manufacturing and Services Flash figures, and Q3 earnings reports from major firms such as JSW Steel, DLF, IndiGo, and Godrej Consumer Products.
Key Updates to Watch:
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India Positioned for Global Leadership in AI:
Union Minister Ashwini Vaishnaw stated that India is ready to achieve global leadership in artificial intelligence, mirroring its success in IT services.
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Eased Retail Inflation for Rural Workers:
Retail inflation for agricultural and rural laborers reduced to 5.01% and 5.05%, respectively, in December, down from November's 5.35% and 5.47%, according to the Labour Ministry.
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Rupee’s Weak Performance Over 5 Years:
Moody’s Ratings revealed that the Indian rupee depreciated by 20% over the last five years, making it the weakest currency in South and Southeast Asia.
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Banking Sector Optimism:
Fitch Ratings projects that gross non-performing assets (NPAs) of Indian banks will decline to 2.4% by March 2025, with a further 20 basis points drop expected in the following year.
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Auto Ancillary Sector Outlook Stable:
India Ratings and Research (Ind-Ra) maintained a neutral outlook for the auto ancillary industry, predicting an 8-10% year-on-year revenue growth for FY26.
Global Market Trends:
The US stock markets ended higher on Thursday, driven by mixed corporate earnings and calls by President Trump for rate cuts. Asian markets are trading in green ahead of the Bank of Japan's policy meeting. Japan’s December core inflation reached a 16-month high of 3%, strengthening the possibility of a rate hike.
Indian Markets Recap:
On Thursday, Indian equity markets gained for the second consecutive day, fueled by buying in IT, Consumer Durables, and TECK stocks. The BSE Sensex climbed 115.39 points (0.15%) to 76,520.38, while the CNX Nifty added 50 points (0.22%) to close at 23,205.35.
Other Key Highlights:
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Robust Q3 Earnings Boost Sentiments:
Strong Q3 results from Zensar Technologies, Coforge, Persistent Systems, and UltraTech Cement led to increased buying in IT and cement stocks.
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FII Selling Continues:
Foreign institutional investors offloaded equities worth RS 4,026 crore on January 22, marking their 14th consecutive day of net selling.
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Uncertainty Over US Trade Tariffs:
Concerns persist over the impact of US trade tariff measures, including potential disruptions to global trade, inflation, and currency volatility.
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India, a Trusted Global Hub:
Union Minister Ashwini Vaishnaw emphasized that India has emerged as a reliable global hub amid global disruptions, boosting investor confidence.