Indian equities suffered a sharp bout of profit-taking on Friday, with benchmark indices Sensex - Nirmal Bang
Market Review
US: Stocks retreated on Friday as technology shares remained in a funk, even as investors largely approved of President Donald Trump’s pick of Kevin Warsh to lead the Federal Reserve. Still, the S&P 500 squeaked out a January gain, despite Friday’s losses and volatile trading this month.
Asia: Asian stocks ended mostly lower on Friday as Apple warned of rising memory chip prices and China's state-owned Securities Times warned against speculative trading.
India: Indian equities suffered a sharp bout of profit-taking on Friday, with benchmark indices Sensex and Nifty retreating from recent highs as investors turned defensive ahead of the Union Budget this weekend. Market is expected to open on a range bound note and likely to witness sideways move during the day.
Global economy: China's factory activity faltered in January as weak domestic demand dragged down production at the start of the new year, an official survey showed on Saturday. The official purchasing managers' index (PMI) dropped to 49.3 in January, from 50.1 in December, below the 50-mark separating growth from contraction. The non-manufacturing PMI, which includes services and construction, dropped to 49.4 from 50.2 in December, falling to its lowest since December 2022.
Average prices of new homes across 100 Chinese cities rose in January, while declines in the secondary market narrowed, a private survey showed on Sunday, following renewed government pledges to stabilise the sector. New home prices rose 0.18% month-on-month, easing from a 0.28% gain in December.
The U.S. Producer Price Index (PPI) for December rose 0.5% month-on-month, significantly above the expected 0.2% increase, showing stronger-than-forecast producer inflation. This rise indicates increased pricing pressures at the producer level, which often feeds into broader consumer inflation trends.
Commodities: Oil prices held near six-month highs Friday, nudged by lingering U.S.-Iran tensions, though gains paused amid prospects of dialogue and a potential ceasefire. While U.S. sanctions were issued, a stronger dollar and rising crude output also pressured prices.
Gold and silver are stabilising after their worst-ever single-day crash on MCX, with traders bracing for fresh volatility as the Union Budget approaches.
Currency: The dollar was poised for a second straight weekly decline on Friday as tariff threats against countries trading with Cuba added to global tensions that have sapped demand for U.S. assets.
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