Good morning!
This is the daily morning update from NDTV Profit. Over the next few minutes, I’ll bring you up to speed with everything you need to know to start your day on the right note.
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US equity markets had their first chance to react to the inauguration of Donald Trump as the 47th President. And despite the flurry of executive orders he signed as he entered office, the lack of any announcements on tariffs seems to have been taken positively by Wall Street. The Dow closed higher by over 500 points, while the S&P 500 and the Nasdaq climbed 0.9% and 0.6%, respectively. The Nasdaq was weighed down by a 3% fall in Apple.
The dollar, which fell sharply after tariffs weren’t announced, stayed at close to 108. Meanwhile, treasuries saw buying, with yields on the 10-year being pushed below 4.6%.
Comments by Trump over the past two days on tariffs have riled global currency markets. He made offhand comments about levying 25% tariffs on Mexico and Canada. And Bloomberg reported that he reiterated that he was considering 10% tariffs on China. And, while some experts interpret Trump’s comments as him wanting to broker a deal with China, uncertainty persists.
In fact, that word is probably what rattled Dalal Street in trade yesterday. Sharp gyrations and an eventual capitulation pulled benchmarks back to their six-month low. The broader markets were worse off, with the midcap and small cap indices falling over 2% each.
At least for now, the cues from overseas are positive. All the three early risers in the Asia Pacific region have started with gains.
In other news, Bloomberg has reported that India’s government is prepared to work with Donald Trump’s administration to identify and take back all its citizens residing illegally in the US.
The two countries have together identified some 18,000 illegal Indian migrants in the US to be sent back home. The figure could be much higher than that, though, given it’s unclear how many illegal Indian migrants live in the US. The report quoted unnamed sources.
And in news coming in from the World Economic Forum in Davos, Maharashtra kicked things off with Chief Minister Devendra Fadnavis signing Memorandums of Understanding worth Rs 4.99 lakh crore on the first day. The investments aim to generate over 92,000 jobs across defence, renewable energy, steel and infrastructure.
The largest deal was inked with the JSW Group, which committed Rs 3 lakh crore to projects in steel, renewable energy, cement, infrastructure and electric vehicles. This partnership will create 10,000 jobs, with a special focus on Nagpur and Gadchiroli.
Some key earnings should be looked forward to today. Hindustan Unilever Ltd. will set the tone for FMCG players in the current earnings season. Meanwhile, HDFC Bank Ltd. will be the largest bank to report numbers so far. And finally, Bharat Petroleum Corp. will likely report earnings after market hours.
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