Opening Bell : Benchmarks likely to get cautious start amid weak global cues
Indian equity benchmarks are likely to get a cautious start on Thursday amid weak global cues and monthly expiry of F&O segment. Investors are likely to stay focused on Budget expectations and Q3 earnings. They are awaiting results from key companies such as L&T, Adani Ports, Adani Enterprises, and Bajaj Finserv, among others.
Some of the key factors to be watched:
India needs fiscal policy changes for 6.4% GDP growth rate in 2025: Moody's Analytics said India needs to change its fiscal and monetary policy to achieve a 6.4 per cent GDP growth in 2025 amid a weak rupee, declining foreign investment and volatile inflation.
India considering lowering tariffs on some high-end products from US: A private report indicated that India is considering lowering tariffs on some high-end products from the United States, including specific steel, luxury motorcycles, and electronic goods. India currently imposes duties of over 100 per cent on 20 items imported from the US.
Govt raises procurement price of C-heavy molasses ethanol: The Union Cabinet has approved a three per cent increase in the procurement price for ethanol made from C-heavy molasses to Rs 57.97 per litre for the 2024-25 supply year, while keeping rates unchanged for other feedstock.
Digital payments rise 11.1% at Sept-end 2024: RBI’s index that measures the adoption of online transactions showed that digital payments across the country registered an 11.11 per cent year-on-year rise as on September 2024.
Banking stocks will be in focus: A report by S&P Global Market Intelligence said Indian banks are facing margin pressure as loan growth slows amid high interest rates. The report highlighted that the aggregate loan growth of six of India’s largest banks–both private and state-owned–is expected to decline to 12.3 per cent in the fiscal year ending March 31, 2025.
On the global front, the US markets ended lower on Wednesday, but off their lows of the day, with the Federal Reserve holding interest rates steady as expected and Fed Chair Jerome Powell offering soothing comments for investors. Asian markets are trading mixed on Thursday as investors wait for clarity on the Trump administration's plans for trade policy.
Back home, Indian equity benchmarks ended higher for the second straight session on Wednesday as investors looked forward to positive cues in the upcoming Union Budget 2025-26. Finally, the BSE Sensex rose 631.55 points or 0.83% to 76,532.96, and the CNX Nifty was up by 205.85 points or 0.90% to 23,163.10.
Some of the important factors for the markets:
About 64% of industrialists optimistic about India’s growth: Ahead of Union Budget on February 1, the FICCI in its Pre-budget 2025-26 Survey showed that about 64% of industrialists expressed optimism regarding India’s growth. It said nearly 60% of participants projected a GDP growth rate 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 over Rs 1.5 lakh crore liquidity injection into the banking system, the Reserve Bank said it will conduct a USD/INR buy-sell swap auction of $5 billion (about Rs 43,000 crore) on January 31.
Falling US Treasury yield further boosted investor sentiments: U.S. Treasury yields were lower as investors awaited the Federal Reserve’s first interest rate decision of 2025. The Fed is widely expected to leave interest rates unchanged.
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