Here is today’s edition of the Market Daily where we look at key headlines from the world of Financial Markets, including Europe ending the US trade deal, Trump’s change of stance over Greenland with reference to his speech at the World Economic Forum in Davos, among others. Additionally we also look at how Indian equity markets performed- broader and sector-wise, as well as the institutional trading activity, and the US markets.
So let us begin with…
MARKET DAILY WRAP
The benchmark indices Sensex and Nifty rebounded today after US President Donald Trump’s remarks on India-US trade deal among key factors, even as gains in PSU banks, services and auto stocks rallied the indices to settle higher on Thursday. Market breadth was positive in the morning as about 2668 shares advanced, 871 shares declined and 153 shares unchanged. The sentiment improved after Trump withdrew his threat to impose tariffs on EU countries over their stance on Greenland, alleviating fears of wider trade conflict globally. While positive cues from Asian markets, with Japan’s Nikkei 225 trading higher, further aided the rally while US Markets too ended higher on Wednesday.
Yet the markets declined towards the close, with Nifty falling below 25300 while Sensex lost 500 points from the day’s high amid heavy profit-booking. Persistent FII selling along with rising VIX further elevated intra-day swings, signalling fragile sentiment.
Finance Flashcards Newsroom
TOP HEADLINES
Europe suspends trade deal with US amid Greenland tariff threats
According to a report in CNBC, European lawmakers on Wednesday suspended the approval of the trade deal that the European Union and U.S. agreed in July. In a statement, the European Parliament member Bernd Lange, and INTA chair on EU-US trade relations asserted that the US President’s plan to impose tariffs between 10-25% on European nations go against the terms of the trade pact. “We will hold on the procedure … until there is clarity regarding Greenland and the threats,” Lange said further. A governing council member of the European Central Bank, he acknowledged that the tariff threat will likely have “some spillover” to monetary policy in the region.
Donald Trump sues JPMorgan for 5billion USD over ‘alleged’ debanking
As per a report in CNBC, President Donald Trump sued banking giant JPMorgan Chase and its CEO Jamie Dimon for USD 5 billion, accusing the company of debanking him and his businesses for political reasons after he left office in January 2021. The lawsuit, filed in Miami-Dade County court in Florida, alleges that JPMorgan abruptly closed multiple accounts in February 2021 with just 60 days notice and no explanation. This affected Trump and his businesses off millions of dollars, disrupting operations and forcing their hand at urgently opening bank accounts elsewhere.
In a statement, JPMorgan said that it “regrets” that Trump sued them but insisted they did not close the accounts for political reasons.
Musk’s SpaceX lines up four banks to lead IPO, reports FT
SpaceX has lined up four banks to lead its initial public offering, according to the Financial Times, as Elon Musk’s rocket and satellite firm moves forward with plans for the biggest-ever listing. The company sees Bank of America Corp., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley in senior roles, while reportedly moving forward with an insider share sale that values it at about $800 billion. SpaceX is targeting an IPO as soon as this year that would raise significantly more than $30 billion in a transaction that would value the company at about $1.5 trillion, as per people familiar with the matter.
EQUITY MARKET RECAP
INDIAN INDICES
GLOBAL MARKETS
Following Trump’s comments at the World Economic Forum in Davos, the markets staged a sharp rally on Wednesday with Dow Jones Industrial Average jumping 588.64 points, or 1.21 percent, to close at 49,007.23. The S&P 500 rose 1.16 percent to 6,875.62, while the Nasdaq Composite gained 1.18 percent to finish at 23,224.82.
INDIAN MARKET WRAP
Indices
At close, Sensex settled at 82,307.37, up 397.73 points or 0.49 percent, while the broader Nifty was at 25,289.90, up 132.40 points or 0.53 percent. The benchmark indices snapped 3-day losing streak after the sentiment improved after Trump withdrew his Greenland tariffs threat over European partners, supported by positive global cues. While as per Moneycontrol, the broader outperformed the benchmarks, with the BSE midcap and smallcap indices adding more than 1% each.
Broader markets also rallied, with the Nifty Midcap 100 and Nifty Smallcap 100 indices rising over 1 percent each amid broad-based buying. The Nifty Smallcap 100 snapped a four-day losing streak, while the Nifty Midcap 100 ended a three-day decline, indicating improved market breadth and participation beyond frontline indices even though the index fell 1.26% from day’s high.
Sector and Stock Movement
Nifty Realty was the worst performing sector along with consumer durables being the only such index not ending in green, with majority of sectoral indices in green. FMCG, power, metal, media, PSU Bank, pharma gained 1-2%.
Coal India and Adani Ports and Special Economic Zone were among the top gainers in the Nifty50 pack, rising up to 5 percent, while SBI Life Insurance Company and Eternal were among the major laggards, losing around 2%. Top heavyweight stocks like HDFC Bank and ICICI Bank fell marginally, thus capping market gains on January 22. More than 260 stocks hit 52-week low including Sapphire Foods, Kalyan Jeweller, Siemens Energy, among others.
Institutional Trading Activity
In the trading session on Thursday, DIIs purchased shares worth Rs 17538 crore and sold shares worth Rs 13315 crore. In contrast, FIIs bought shares worth Rs 16873 crore but sold shares totalling Rs 19423 crore.
That’s all in our today’s edition of the Market Daily Wrap. Until next time..
