Opening Bell:
Gift Nifty is up by 0.5 points in the early morning trade, indicating a positive opening for Indian stock market.
Asian markets bounced back after a previous dip, eyeing Tokyo’s December inflation stats as a lead for national trends. Tokyo’s inflation slowed to 2.4% from 2.6%, while core inflation held steady at 2.1%. Australian retail sales for November exceeded expectations, up by 2%, boosting the S&P/ASX 200 by 1.03%. Japan’s Nikkei 225 surged 1.66%, Topix rose 0.93%, and South Korea’s Kospi gained 0.7%. Despite Samsung’s lowered earnings forecast, Kosdaq rose 0.91%. Hong Kong’s Hang Seng futures pointed to a slight uptick at 16,377 from its prior close at 16,224.45.
US stock market indices ended sharply higher on Monday led by a rally in megacap stocks amid a fall in Treasury yields. The Dow Jones Industrial Average gained 0.58%, while the S&P 500 rose 1.41%. The Nasdaq Composite ended 2.20%.
European markets turned positive Monday, shaking off the negative sentiment seen at the start of trading in 2024. The Stoxx 600 index closed 0.34% higher, having slumped during morning trade. Technology and retail stocks both rose 1.23% to lead gains.
Stocks News:
👉 Tata Motors: The company’s subsidiary Jaguar Land Rover reported a 27% rise in total wholesales at 101,043 units in the third quarter ended December as compared to the year-ago period. JLR delivered the highest wholesales in 11 quarters during the period.
👉 Bajaj Auto: The company has announced a share buyback after its board approved the proposal to buy back up to 4,000,000 shares of face value of ₹10 each for ₹10,000 per share for a total consideration not exceeding ₹4,000 crore. The company’s board has constituted a buyback committee and delegated the power to do all such acts, deeds, matters, and things as it may deem necessary, expedient, or proper in connection with the offer.
👉 Eicher Motors: Motorcycle manufacturer Royal Enfield, a unit of the company, has earmarked investments of ₹3,000 crore spread for eight years in Tamil Nadu towards the development of new products. The investments are expected to generate about 2,000 direct and indirect jobs in the region.
👉 Cipla: The company announced a joint venture in the US with Kemwell Biopharma and Manipal Education & Medical Group to develop and commercialize novel cell therapy products for unmet medical needs in the US, Japan, and EU.
👉 Foreign institutional investors (FIIs) bought shares worth Rs 16.03 crore, while domestic institutional investors (DIIs) purchased Rs 155.96 crore worth of stocks on January 8, provisional data from the NSE showed.
Domestic and International Events
- India may see around $30 billion shaved off its total exports in the current fiscal year, as threats to cargo vessels in the Red Sea lead to a surge in container shipping rates and prompt exporters to hold back on shipments. The initial assessment, conducted by the Research and Information System for Developing Countries, a New Delhi-based thinktank, would mean a 6.7% drop in Indian exports, based on last fiscal year’s $451 billion total.
- US Federal Reserve Governor Michelle Bowman suggested that maintaining current interest rates could steer inflation toward the Fed’s 2% target. She hinted at the possibility of supporting rate cuts if inflationary pressures diminish. Bowman stated, “If inflation gradually aligns with our 2% target, it may be fitting to start reducing our policy rate to prevent excessive constraints on policy.” This was part of her prepared comments at an event.
- US crude oil declined 4% on Monday after Saudi Arabia slashed its prices, raising renewed worries that the market is oversupplied at the same time as demand is weakening. The West Texas Intermediate futures contract for February lost 4.12%, to settle at $70.77 a barrel. The Brent futures contract for March shed 3.35%, to settle at $76.12 a barrel. The sell-off comes after Saudi Aramco on Sunday sharply lowered the price of Arab Light Crude to Asian customers by $2 per barrel.
- Gold prices fell to a three-week low on Monday, pressured by elevated Treasury yields as expectations for an imminent Federal Reserve interest rate cut faded, with investors looking ahead to this week’s U.S. inflation data for more clarity. Spot gold was down 0.9% at $2,026.97 per ounce, after touching its lowest price since December 18 earlier in the session. U.S. gold futures fell 0.8% to $2,033.4.
Key Equity Indices
| EMERGING | LATEST | % 1D |
| Hang Seng | 16,224 | (1.9) % |
| Shanghai Composite | 2,888 | (1.4) % |
| DEVELOPED | LATEST | % 1D |
| Dow Jones | 37,683 | 0.6 % |
| DAX | 16,716 | 0.7 % |
| FTSE 100 | 7,694 | 0.1 % |
| Nikkei | 33,377 | 0.3 % |
| Straits Times | 3,187 | 0.1 % |
