As of January 24, 2025, global and Indian markets exhibit a blend of optimism and caution, influenced by recent political developments, economic indicators, and corporate earnings.
Global Market Overview
The inauguration of U.S. President Donald Trump has introduced a mix of expectations regarding global economic growth. His policies on tariffs and immigration have led to concerns about potential trade conflicts and geopolitical tensions, particularly between the U.S. and China. Additionally, inflation and interest rate trajectories are under scrutiny, with anticipated rate cuts in the Eurozone and potential hikes in the U.S.
In the UK, the FTSE 100 index rose by 0.2% to 8,565 points, nearing its all-time high as investors awaited clarity on U.S. President Donald Trump’s trade policies. During the week, Trump refrained from imposing heavy tariffs and announced significant investments in AI infrastructure, boosting global tech shares.
Indian Market Outlook
The Indian stock market is poised for a positive opening, reflecting favorable global cues. The benchmark indices, Sensex and Nifty 50, are expected to open higher, with the Gift Nifty trading around the 23,303 level, indicating a premium of nearly 40 points from the previous close.
Vinod Nair, Head of Research at Geojit Financial Services, notes, “Uncertainty lingers whether the trade tariff measures will affect global trade, instigate higher inflation, and currencies volatility. The trend holds a declining momentum YTD with a pause today contemplating the upcoming 2025 budget, which has a muted expectation. Meanwhile, in-line Q3 results showcasing QoQ growth to the indices suggesting that Q4 will be much better.”
Top Stock Picks of the Day
Analysts have identified several stocks with strong potential:
• Indus Towers: The company reported a significant increase in its third-quarter consolidated net profit to ₹4,003.2 crore, a 160% rise from ₹1,540.5 crore in the same period last year. This performance was bolstered by considerable delayed collections from a major customer, leading to a ₹3,024 crore write-back of doubtful receivables.
• UltraTech Cement: Despite a 17% year-on-year decline in net profit to ₹1,469.50 crore, the company’s revenue from operations rose marginally by 3% YoY to ₹17,193 crore, surpassing market expectations.
Top Gainers and Losers
In early trading on January 24, 2025:
• Top Gainers:
• Tata Steel: Increased by 0.46% to ₹131.10.
• Reliance Industries: Rose by 0.03% to ₹1,264.20.
• Top Losers:
• Tata Motors: Declined by 1.46% to ₹741.60.
• Wipro: Decreased by 0.20% to ₹317.00.
Currency and Derivatives
The Indian Rupee’s performance against major currencies remains a focal point for investors, especially in light of global trade dynamics and domestic economic policies. In the derivatives market, trends indicate a cautious approach, with traders closely monitoring global cues and domestic earnings reports to inform their strategies.
Ongoing and Upcoming IPOs
The IPO market in India continues to be active:
• Ongoing IPOs:
• Denta Water: The IPO is currently open for subscription, with investors showing keen interest in the company’s growth prospects.
• Upcoming IPOs:
• Marex: A young IPO that has garnered attention for its strong market entry.
Investors are advised to stay updated with official announcements and consult financial advisors before making investment decisions.
Conclusion
As of January 24, 2025, both global and Indian markets are navigating a complex landscape shaped by political developments, economic indicators, and corporate performances. While opportunities exist, a cautious and informed approach is essential for investors aiming to navigate the evolving market dynamics.
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