Market Today
The benchmark Sensex and Nifty indices are likely to open on a positive note on January 29 as trends in the GIFT Nifty indicate a higher start for the broader index with a gain of 79.50 points.
On Friday, bears dominated Dalal Street as frontline indices Sensex and Nifty erased their gains from the previous session, dragged by banking, FMCG and IT stocks.
At close, the Sensex was down 359.64 points or 0.51 percent at 70,700.67, and the Nifty was down 101.40 points or 0.47 percent at 21,352.60.
The pivot point calculator indicates that the Nifty is likely to take immediate support at 21,272, followed by 21,222, and 21,141 levels, while on the higher side, it may see an immediate resistance at 21,372, followed by 21,484 and 21,565 levels.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms, which could impact Indian as well as international markets.
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GIFT Nifty
Trends in the GIFT Nifty indicate a strong start for the broader index in India, with a gain of 79.50 points or 0.37 percent. The Nifty futures were trading around the 21,619.50 level.
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US Markets
The S&P 500 ended a five-session streak of record highs on Friday, with Intel (INTC.O), opens new tab slumping after a bleak revenue forecast, while U.S. economic data showed inflation moderating.
Even as the S&P 500 and Nasdaq ended the session lower, all three major indexes recorded their third straight weekly gain and their 12th weekly advance out of 13.
The S&P 500 declined 0.07percent to end the session at 4,890.97 points. The Nasdaq declined 0.36 percent to 15,455.36 points, while Dow Jones Industrial Average rose 0.16 percent to 38,109.43 points.
For the week, the S&P 500 added 1.06 percent, the Dow gained 0.65 percent and the Nasdaq advanced 0.94 percent.
Asian Markets
Asian markets were trading mostly higher on Monday ahead of a slew of GDP and inflation numbers due out from the region this week. Japan's Nikkei was up 0.8 percent, while Kospi index gained 1 percent.
US prices rise moderately in December; inflation trending lower
US prices rose marginally in December, keeping the annual increase in inflation below 3 percent for a third straight month, bolstering expectations that the Federal Reserve will start cutting interest rates this year.
But the timing of the anticipated rate cut is uncertain, with the report from the Commerce Department on Friday also showing consumer spending surging at the end of 2023 as Americans splurged on goods and services over the holidays.
The personal consumption expenditures (PCE) price index increased 0.2 percent last month after dropping 0.1 percent in November, the Commerce Department's Bureau of Economic Analysis said. Food prices rose 0.1% and the cost of energy products increased 0.3 percent.
ECB leaves key rates unchanged
The European Central Bank froze borrowing costs again on Thursday even as inflation eases, signalling it was too soon to start considering rate cuts.
The third consecutive pause since October leaves the ECB's benchmark deposit rate at a record high of four percent, following a historic run of hikes to tame prices that shot up after Russia's war in Ukraine.
The pause was widely expected but with inflation steadily slowing and the eurozone economy stuttering, investor attention has shifted to when the ECB might start cutting rates.
The ECB's governing council reiterated in its statement that it believed rates are at levels that "maintained for a sufficiently long duration, will make a substantial contribution" to returning inflation to the two-percent target.
US economy grew at a surprisingly strong 3.3% pace last quarter
The US economy grew at an unexpectedly brisk 3.3 percent annual pace from October through December as Americans showed a continued willingness to spend freely despite high interest rates and price levels that have frustrated many households.
Thursday's report from the Commerce Department said the gross domestic product the economy's total output of goods and services decelerated from its sizzling 4.9 percent growth rate the previous quarter. But the latest figures still reflected the surprising durability of the world's largest economy, marking the sixth straight quarter in which GDP has grown at an annual pace of 2 percent or more. Consumers fueled much of last quarter's expansion.
For all of 2023, the economy grew 2.5 percent, up from 1.9 percent in 2022.
RBI allows LIC to acquire up to 9.99% stake in HDFC Bank
The Reserve Bank of India has allowed Life Insurance Corp. of India to acquire as much as 9.99 percent of HDFC Bank, the country's largest private lender told stock exchanges on January 25.
"LIC has been advised by RBI to acquire the aforesaid major shareholding in the Bank within a period of one year i.e. by January 24, 2025," HDFC Bank said in an exchange filing. "Further, LIC must ensure that the aggregate holding in the Bank does not exceed 9.99 percent of the paid-up share capital or voting rights of the Bank at all times," said HDFC Bank.
LIC owns a 5.19 percent stake in the bank, according to the lender's shareholding pattern as of December 31.
As per the bank's exchange notification, the RBI informed the decision to the LIC through a letter dated January 25, under which LIC can acquire an aggregate holding up to 9.99 percent of the paid-up share capital or voting rights of HDFC Bank Limited.
Crude Oil
Oil prices jumped 1 percent on Monday on fuel supply concerns after a missile struck a Trafigura-operated fuel tanker in the Red Sea and as Russian refined products exports are set to fall as several refineries are under repair after drone attacks.
Brent crude futures climbed 83 cents to $84.38 a barrel by 2341 GMT after hitting a session-high of $84.80. US West Texas Intermediate crude rose 78 cents to $78.79 a barrel.
Dollar
The dollar started the week on a steady footing as investors took stock of U.S. economic data ahead of the Federal Reserve policy meeting this week, while escalating geopolitical tensions in the Middle East kept risk sentiment in check.
The dollar index, which measures the U.S. currency against six rivals, inched 0.01% higher to 103.55 on Monday, set for a 2% gain in January as traders temper expectations of early and deep U.S. interest rate cuts.
FII and DII data
Foreign institutional investors (FIIs) continued to be net sellers in the cash segment for seven days in a row, offloading shares worth Rs 2,144.06 crore, while domestic institutional investors (DIIs) bought Rs 3,474.89 crore worth of stocks on January 25, provisional data from the NSE showed.
With inputs from Reuters and other agencies
