Stock markets snap two-day rally; Realty, healthcare stocks drag
The 30-share BSE benchmark dropped 329.92 points or 0.43 per cent to settle at 76,190.46. During the day, it slumped 428.63 points or 0.56 per cent to 76,091.75
The 30-share BSE benchmark dropped 329.92 points or 0.43 per cent to settle at 76,190.46. During the day, it slumped 428.63 points or 0.56 per cent to 76,091.75
Since the inclusion of Indian government bonds in the JP Morgan Global Bond Index on June 28, 2024, foreign investments in Fully Accessible Route (FAR) bonds have surged to approximately $7.55 billion as of January 21, 2025. This robust inflow underscores the growing appetite among international investors for Indian fixed-income assets, highlighting the potential for long-term benefits to the domestic bond market.
Donald Trump’s return to the global stage has reignited concerns about trade protectionism. On his first day back in office, Trump announced tariffs on Canada and Mexico and hinted at potential hikes targeting other countries, including India. The lack of clarity on his broader economic strategy has unnerved markets. His immigration policies could also hit Indian IT firms hard, adding to the gloom.
Trump’s tariff decisions remain a wildcard for Indian markets, said Prashant Tapse, senior vice president of research at Mehta Equities, adding that uncertainty over his tariff plans for India has led to caution among investors. The U.S. policy framework under Trump could impact the strength of the dollar and Treasury yields, as well as raise inflation, which could mean fewer interest rate cuts.
India’s forex reserves fell to a 10 month low as RBI sold dollars to support Rupee
The benchmark indices reflected investor caution amidst global and domestic uncertainties. Here are the five key factors contributing to this market downturn:
MUMBAI: Benchmark indices Sensex and Nifty surged in early trade on Thursday in tandem with a rally in global markets
Some recovery in domestic equity markets after the release of macroeconomic numbers also supported the Indian currency even though it remained under pressure due to elevated crude oil prices and continuous outflow of foreign funds.
India’s benchmark indices Sensex and Nifty rebounded in early trade on Tuesday after four days of sharp decline amid value
Stronger-than-expected US employment data released last Friday rattled global markets, diminishing hopes for an early rate cut by the Federal Reserve. With the US unemployment rate dipping to 4.1% in December and robust job growth, analysts now predict fewer rate cuts in 2025.