Market Trends for & Outlook for Wednesday, January 29, 2025

On January 28, 2025, the Indian stock markets saw gains, driven mainly by the financial sector.

Nifty 50 rose 0.56% to 22,957.25 points.B

BSE Sensex increased 071%, closing at 75,901.41.

Gains were fueled by RBI's liquidity measures, sparking expectations of a potential interest rate cut in February.

Banking stocks like HDFC Bank, Axis Bank, and ICICI Bank led the rally.

Pharmaceutical stocks fell 2.5%, affected by concerns over the impact of a U.S. pause in foreign aid for AIDS drug manufacturers.

Mid-cap and small-cap stocks also faced declines of 0.51% and 1.81%, respectively.

Top Gainers from Key Indices:

Bajaj Finance: +4.31%
Axis Bank: +3.71%
Shriram Finance: +3.56%
Bajaj Finserv: +3.42%
HDFC Bank: +2.67%

Top Losers from Key Indices:

Sun Pharma: -4.24%
Britannia: -2.15%
Hindalco: -2.08%
Grasim: -1.75%
BEL: -1.69%

There are no F&O Scrips in Ban Period for January 29, 2025

U.S. Market Recovery & Global Impact

The U.S. stock markets saw a partial recovery after a sharp sell-off triggered by DeepSeek, a Chinese AI competitor that rattled U.S. tech stocks.

The Nasdaq Composite rebounded by 2.03%, while the S&P 500 rose 0.92%.

Nvidia saw some recovery after losing nearly $600 billion in market value over AI competition fears.

Former President Donald Trump called the situation a "wake-up call" for U.S. tech firms.

Boeing posted its second-largest annual loss, citing supply chain disruptions and labor strikes.

In Europe, markets were mostly positive, while the UK saw higher-than-expected rental prices. Amazon announced it would launch drone deliveries in the UK

Global Economic Trends

Investors shifted towards safe-haven assets like Japan’s yen and European credit, trying to hedge against U.S. market volatility and tariff concerns.

Oil prices, Canadian & Mexican currencies, and inflation projections are fluctuating due to uncertainty around U.S. policy changes.

Hedging strategies have increased, with investors turning to European corporate bonds and under-owned assets like UK’s FTSE 100.

Despite fears of the new U.S. tariffs, markets are still on edge, waiting for clarity.

Source: Reuters, The Guardian, Marketwatch