Hey there Readers.
Here is today’s edition of the ‘Market Daily’ by Finance Flashcards covering the key headlines from the Financial Markets across the globe, that drew attention including the Anthropic AI tool that wiped out billions, and Piyush Goyal’s statement on the India-US trade agreement. Alongside we dissect the performance of the Indian Equity Market Indices for the day-both broader and sector-wise, as well as the institutional trading activity. Plus we take a brief look at the Market Stats and Turnover, with a glimpse of the Wall Street. So stick around, and read through..
THE WRAP- MARKET DAILY
The benchmark equity indices- Nifty and Sensex fell sharply on Thursday, amid weak global cues and selling pressure in metal shares. Market breadth was negative as about 1368 shares advanced, 1997 shares declined and 159 shares remained unchanged. Profit-booking on optimism over India-US trade deal that reduced tariffs on Indian goods further led to the indices falling from the highs of past three sessions, with markets having gained around 3.8%.
Markets stayed cautious with investors awaiting RBI’s stance in the upcoming Monetary Policy Committee (MPC) meeting on early Friday, with the repo rate expected to remain unchanged.
Let us take a look at the Market stats for the day..
Finance Flashcards Newsroom
TOP HEADLINES
India free to buy oil from any supplier: Russia
According to a report in Hindu, the Kremlin spokesperson Dmitry Peskov said India is free to buy oil from any country, having always purchased these products from diverse suppliers in the past. “We, along with all other international energy experts, are well aware that Russia is not the only supplier of oil and petroleum products to India. India has always purchased these products from other countries. Therefore, we see nothing new here,” Peskov said while responding to a question.
As per Igov Yushkov, a leading expert at the National Energy Security Fund, Indian refiners cannot completely cut off Russian crude oil import while claiming America cannot cover the Russian export volume of 1.% million to 2 million barrels per day. It is important to note that India buys about 88% of its crude oil, which is converted into fuels like petrol and diesel, from overseas.
India-US trade deal to be signed by Mid-March: Piyush Goyal
As per Deccan Herald, India and the United States are likely to issue regarding the trade deal (reported in our wrap edition on 3rd February) in the next four to five days. Also the first tranche of proposed Bilateral Trade Agreement (BTA) would be signed by Mid-March, said India’s Commerce and Industry Minister on Thursday. According to the minister, a joint statement would pave the way for reduction of US tariff on Indian goods to 18% from the current 50%. While the two countries have also agreed to more than double two-way trade to $500 billion by 2030.
The statement comes days after the two countries reached a trade agreement, as announced by the US President Donald Trump following months of strained relations and uncertainty. Also, Piyush Goyal said that India would cut the tariffs on American goods only after the formal signing.
$285B wiped out: Anthropic AI Tool that panicked the Wall Street as software stocks tanked overnight
Global stock markets were rattled after a US artificial intelligence firm, Anthropic, released a new set of AI tools for corporate legal teams. The firm introduced a new AI tool, Claude Cowork with 11 plugins on 30 January which help automate everyday business tasks. However, one plugin which focused on legal work, stirred major investor uncertainty as it automates contract review, NDA triage, compliance checks and legal briefings. This resulted into a brutal sell-off worth roughly $285 billion being wiped-out from software, legal and tech stocks in a single trading session.
The damage extended beyond legal tech, as DocSign declined 11%, Salesforce dropped nearly 7% while Adobe slid 7%. According to a report in Moneycontrol, Wall Street is nervous that AI tools like Claude’s new plugins will challenge existing software companies’ data analytics and research products. The sliding stocks will likely only amplify concerns over AI-related job losses.
EQUITY MARKET DAILY
INDIAN INDICES
GLOBAL MARKETS
US markets ended mostly in the red on Wednesday, with the Nasdaq Composite tumbling 1.51 percent and the S&P 500 falling 0.51 percent, although the Dow Jones Industrial Average rose 0.53 percent.
INDIAN MARKETS TODAY
Indices- Benchmark and Broader
On Thursday, the Sensex dropped 503.76 points, or 0.60 per cent, to settle at 83,313.93 while Nifty declined 133.20 points, or 0.52 per cent, to end at 25,642.80.
The sell-off was broad-based, with mid-cap and small-cap stocks also coming under pressure. The Nifty midcap100 index fell around 0.3 percent, while the Nifty smallcap100 index declined ~1.2 percent.
Sectoral and Stock Performance
Metal stocks led the losses, with the index declining nearly 2%, tracking global metal price trends while dollar strengthens. Most sectoral indices were trading in the red, barring healthcare and PSU banks.
From the Sensex firms, Eternal, Bharti Airtel, Bharat Electronics, ITC, Infosys, Reliance Industries, ICICI Bank and Asian Paints were among the major laggards. While Trent, Tata Steel, SBI and Bajaj Finance were among the winners.
Institutional Trading Activity & Market Turnover
Foreign institutional investors offloaded equities worth Rs 2,150.51 crore on Thursday, according to exchange data.
Data and Image from NSE Website
That’s all from us in today’s edition of the Market Daily Wrap. Keep reading..
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