Stock Market’s Mixed Start
Monday saw early fluctuations in the stock market, with both Sensex and Nifty opening on a low note. The Sensex dropped by 137.69 points to 71923.44, while the Nifty started with a 28.10 points dip at 21,682.70. Out of the Nifty companies, 20 showed advances, while 30 faced declines. The market is influenced by Nifty Futures, and GIFT Nifty is trading at 21771, indicating a relatively quiet opening.
Investors Keeping a Close Eye
Varun Aggarwal, founder of Profit Idea, highlighted that investors are closely monitoring corporate results and global trends. There’s a shift towards large-cap stocks due to rising valuations in mid and small-cap stocks. Despite the soft opening, Aggarwal believes market sentiments remain robust, supported by India’s strong economic activity. The market is responsive to macroeconomic data, global bond yields, and investment activities.
Global and US Economic Highlights
In global news, US Initial Jobless Claims were lower than expected at 202K. However, the federal government’s gross national debt reached a record USD 34 trillion, posing challenges. The US Federal Reserve suggests that inflation is under control, hinting at a potential lower target for the federal funds rate by the end of 2024. The US private sector employment rose by 164,000 in December, surpassing market expectations, and Nonfarm Payrolls increased by 216,000.
Global Economic Indicators
The S&P Global US Composite PMI remained stable at 50.9 in December. In the Eurozone and the UK, PMIs showed positive signs. Germany’s unemployment rate stayed stable at 5.9%, and positive economic indicators were observed in Japan and China.
Bharat Economic Updates
In Bharat, foreign exchange reserves reached USD 623.20 billion, marking a significant milestone. The Central Bank of India reported a 14.91% YoY growth in gross advances. The National Statistical Office estimates a 7.3% growth in the current financial year. FPI investments in Bharat debt turned positive in 2023, and HSBC Bharat Manufacturing PMI fell to 54.9 in December.
Financial Landscape and Regulatory Changes
On the regulatory front, the RBI implemented changes for CPs and NCDs issuance, emphasizing transparency. Insurance companies can now invest in infrastructure debt funds of NBFCs. As India gears up for the interim budget, insiders suggest fiscal discipline over populist spending. REC signed a pact with Bank of Baroda for joint finance, and India’s fiscal deficit for the first eight months stood at 50.7% of annual estimates.
In summary, the financial landscape reflects a mix of global and domestic factors shaping market dynamics and economic outlooks. Investors are navigating through uncertainties while keeping a keen eye on both national and international developments.
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