Indian equity benchmarks are expected to open cautiously on Thursday due to weak global cues and the monthly expiry of the F&O segment. Investors will remain focused on Budget expectations and Q3 earnings, with key results awaited from companies such as L&T, Adani Ports, Adani Enterprises, and Bajaj Finserv.

India Needs Policy Changes for 6.4% GDP Growth in 2025: Moody’s Analytics

Moody’s Analytics has stated that India must implement fiscal and monetary policy changes to achieve 6.4% GDP growth in 2025. Challenges such as a weak rupee, declining foreign investments, and volatile inflation may require immediate action.

India May Reduce Tariffs on Some High-End US Imports

According to a private report, India is considering reducing tariffs on select high-end products from the US, including specialty steel, luxury motorcycles, and electronic goods. Currently, India imposes over 100% duties on 20 items imported from the US.

Government Increases Procurement Price for C-Heavy Molasses Ethanol

The Union Cabinet has approved a 3% hike in the procurement price of ethanol made from C-heavy molasses, raising it to RS 57.97 per litre for the 2024-25 supply year, while keeping rates unchanged for other feedstock.

Digital Payments Rise 11.1% by September 2024

According to RBI’s Digital Payments Index, the adoption of online transactions grew by 11.11% year-on-year as of September 2024.

Banking Stocks in Focus

A report by S&P Global Market Intelligence indicates that Indian banks are facing margin pressure as loan growth slows due to high interest rates. The report projects that the aggregate loan growth of six major Indian banks, both private and state-owned, may decline to 12.3% in FY 2024-25.

Global Market Update:

US markets ended lower on Wednesday but recovered from their intraday lows. As expected, the Federal Reserve kept interest rates unchanged, and Fed Chair Jerome Powell’s remarks helped calm investor concerns. Meanwhile, Asian markets traded mixed on Thursday as investors awaited clarity on US trade policy under the Trump administration.

Indian Market Performance:

Indian equity benchmarks ended higher for the second straight session on Wednesday as investors anticipated positive cues from the Union Budget 2025-26.

• BSE Sensex gained 631.55 points (0.83%) to close at 76,532.96
• Nifty rose 205.85 points (0.90%) to 23,163.10

Other Important Market Factors:

64% of Industrialists Optimistic About India's Growth

Ahead of the Union Budget on February 1, FICCI’s Pre-Budget 2025-26 Survey revealed that 64% of industrialists are optimistic about India’s economic growth. Around 60% of respondents projected GDP growth between 6.5% and 6.9% for 2025-26.

RBI to Conduct USD/INR Swap Auction of $5 Billion to Inject Liquidity

As part of its RS 1.5 lakh crore liquidity injection, the Reserve Bank of India (RBI) will conduct a USD/INR buy-sell swap auction worth $5 billion (approximately RS 43,000 crore) on January 31.

Falling US Treasury Yields Boost Investor Sentiment

US Treasury yields declined as investors awaited the Federal Reserve’s first interest rate decision of 2025. The Fed is widely expected to keep rates unchanged, which could provide further market stability.