Here is the Weekly Wrap where we look at key headlines from the Financial Markets, including Trump’s tariff threat to Canada over trade deal with China, the current state of EU-India trade agreement negotiations, among others. Additionally we also look at how Indian equity markets performed- broader and sector-wise, as well as the institutional trading activity on Friday, and also how the Wall Street fared overnight.
So let us start…

Weekly Wrap

After rebounding on Thursday, the Equity Markets closed the week in RED on Friday, with Sensex and Nifty giving up early gains amid worries over sustained foreign outflows which overshadowed relief from easing geopolitical concerns. Market breadth remained negative as about 1630 shares advanced, 1729 shares declined, and 165 shares unchanged. On the currency front, Indian rupee remained under pressure on Friday as it touched fresh record low at 91.97 per dollar intraday, further adding to the negative bias.  For the week, a weaker rupee, sustained FII outflows, delays in the India–US trade deal, and weaker-than-expected Q3 earnings so far continued to weigh on market sentiment.

In Asian markets, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, South Korea’s Kospi index and Hong Kong’s Hang Seng index closed higher. The US equities also ended higher on Thursday.

Finance Flashcards Newsroom

TOP HEADLINES

• Trump threatens 100% tariffs if Canada makes deal with China

In a Truth Social post, US President Donald Trump warned Canada that the U.S. would impose 100% tariff on goods sold in the U.S. if the country strikes a trade deal with China. As per a report in CNBC, Trump also suggested Saturday that China would try to use Canada to try to avoid paying U.S. tariffs. This new threat comes a day after Trump withdrew his invitation to Canada to join his ‘Board of Peace’ post Carney’s address at the World Economic Forum in Davos with the Canadian Prime Minister noting the world’s “middle powers” must band together to resist coercion from the world’s largest powers.

• EU turns to India for ‘mother of all deals’ amidst Trump’s tariff uncertainty

The European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen will be chief guests at India’s Republic Day celebrations. As per a report in BBC, the two leaders will have a pressing item on the agenda which is to advance free trade talks with the third largest Asian economy. This comes amidst a tying moment for the Europe, with US President Donald Trump threatening to escalate trade war with European allies for opposition to the Greenland takeover.

Both von der Leyen and India’s Trade Minister Piyush Goyal have called it the “mother of all deals” highlighting the importance placed on negotiations nearing finishing line, with reports suggesting the deal could be announced as early as 27 January. As von der Leyen said in her speech at the World Economic Forum in Davos, the EU bloc joining forces with India would create a free market of two billion people, accounting for a quarter of global GDP.

EQUITY MARKET RECAP

INDIAN INDICES

FYI: NSE, BSE will remain shut on January 26, Monday for Republic Day

GLOBAL MARKETS

INDIAN MARKET WRAP

• Indices

At close on Friday, the Sensex was down 769.67 points or 0.94 percent at 81,537.70, and the Nifty was down 241.25 points or 0.95 percent at 25,048.65. Tepid Earnings, persistent FII outflows, along with selling in heavyweights like Bank Nifty added to selling pressure.

Broader market indices mirrored the weakness, with midcap and smallcap indices falling close to two percent each, highlighting widespread risk-off positioning and cautious participation.  The broader underperformed the benchmarks, with BSE midcap index falling 1.5 percent and smallcap index down over 2 percent.

• Sector and Stock Movement

All the sectoral indices ended in the red with capital goods, power, PSU Bank, media down 2-3%, while for the week, Realty index witnessed steepest fall in 11 months, weighed down by concerns over housing sales, with stocks such as Anant Raj, DLF among others leading the decline. Alongside, Nifty Consumer Durables index slipped 6.5 percent with Nifty Media declining 4 percent, among major losers. Bank Nifty too snapped its previous session gains, to decline up to 1 percent amid broad-based selling in the domestic markets.

Biggest Nifty losers were Adani Enterprises, Adani Ports, Eternal, Interglobe Aviation, Cipla, while gainers included Dr Reddy’s Labs, Tech Mahindra, ONGC, Hindalco, HUL. More than 400 stocks touched 52-week low including Adani Enterprises, Reliance Power, Blue Jet, DLF, among others.

• Institutional Trading Activity

On Friday, DIIs purchased shares worth Rs 18,259 crore and sold shares worth Rs 14,156 crore. In contrast, FIIs bought shares worth Rs 13,550 crore but sold shares totalling Rs 17,664 crore.
For the week, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 14,651.99 crore during the period, while Domestic Institutional Investors (DIIs) offset the selling with purchases worth Rs 20,746 crore.

That’s all in our this week’s Market Weekly Wrap edition. Stay curious..