Global trends, trading activity of foreign investors and news flow on tariffs are expected to influence movement in the equity market in a holiday-shortened week ahead, analysts said. Equity markets would remain closed on Wednesday for 'Mahashivratri'.
The comprehensive foreign trade policy provides for setting up free trade warehousing zones and gives major thrust to service exports.
Trump has repeatedly claimed that he "helped settle" the tensions between India and Pakistan and that he told the nuclear-armed South Asian neighbours that America would do a "lot of trade" with them if they stopped the conflict.
India briefed envoys of around 45 nations on the Pahalgam terror attack and its link to cross-border terrorism. The envoys were briefed in two batches by senior officials of the Ministry of External Affairs (MEA). India also announced punitive measures against Pakistan, including expulsion of Pakistani military attaches, suspension of the Indus Water Treaty of 1960 and immediate shutting down of the Attari land-transit post. Pakistan responded by shutting its airspace to all Indian airlines and suspending trade with New Delhi.
From the Sensex pack, HDFC Bank, Maruti, Tech Mahindra, HCL Tech, ITC, ICICI Bank, Kotak Mahindra Bank and Bajaj Finance were among the biggest laggards. NTPC, Adani Ports, Mahindra & Mahindra, Tata Steel and IndusInd Bank were among the gainers.
The lawmakers slammed opposition leaders over their remarks on the development, alleging that they were "happy" with the US government's move when "everyone" should be standing together in such a situation.
Equity markets will take cues from the US tariff related developments, global trends and trading activity of foreign investors this week, analysts said.
From the 30-share Sensex pack, Bajaj Finance, Nestle India, Bajaj Finserv, Asian Paints, UltraTech Cement, Infosys, Maruti, Bharti Airtel and Hindustan Unilever were among the gainers. JSW Steel, Adani Ports, NTPC, State Bank of India, Reliance Industries, Tech Mahindra, Axis Bank, Titan and HDFC Bank were the laggards.
'Pakistan has found itself in a favourable position after Operation Sindoor by appreciating the mediation as claimed by Trump and recommending him for the Nobel Peace Prize.'
618 companies were part of the billion dollar club when the markets reached all-time highs on September 26, 2024. That number has fallen to 500 following a $1 trillion wipeout in India's market capitalisation amid relentless selling by FPIs.
At present, India's share in the global trade is about one per cent. Majority of the respondents said the FTP review is growth-oriented and would help in sustaining the 8.5 per cent growth rate of the country, besides, giving the much-needed boost to the rupee-hit exports. Over 73 per cent of the respondents said the target of India achieving 5 per cent share in world trade by 2020 is ambitious but achievable. Government has set an export target of $ 200 bn for the 2008-09.
In response to the panic triggered by Trump's trade policies, the RBI net sold approximately $43 billion in the second half of FY25 to curb volatility, as the rupee plunged to a low of 87.95 per dollar in February this year.
Former Army chief Gen M M Naravane (retd) said India-China ties are "on the mend" with initiatives announced at political, diplomatic and military levels. He expressed hope that China will reciprocate India's goodwill as they move forward in discussing the boundary question.
The interplay between domestic and foreign capital will shape India's equity markets.
'Geopolitically and diplomatically it's a very difficult situation for India.'
The defence minister also announced that India has taken up the challenge of developing a powerful indigenous aero-engine, adding that preparations for this critical project are now almost complete and the work will soon be visible.
A US official has stated that India's continued purchase of Russian oil is a point of contention in the relationship between the two countries, as it helps fund Russia's war efforts in Ukraine.
Titan, HCL Tech and State Bank of India were also among the laggards. However, Hindustan Unilever, Asian Paints, ICICI Bank, Power Grid, HDFC Bank and ITC were the gainers.
From the Sensex pack, UltraTech Cement, Infosys, Bajaj Finserv, Axis Bank, HDFC Bank, Bharti Airtel, HCL Tech and Tata Consultancy Services were the biggest gainers. Zomato tanked nearly 6 per cent followed by IndusInd Bank which declined about 5 per cent. Adani Ports, Mahindra & Mahindra, Reliance Industries and Sun Pharma were also among the laggards.
'The logic every one of our neighbours must realise is that working with India will give you benefits, and not working with India has a cost.'
'However, we must implement a tit-for-tat approach -- reciprocating their conduct with precision.' 'If they demonstrate respect, we respond accordingly. If they adopt hostile positions, we mirror that hostility with equal intensity.'
The RBI on Wednesday slashed key interest rate by 25 basis points, for the second time in a row, to support a shuttering economy hit by reciprocal tariffs imposed by the US. Following the rate cut, the key policy rate eased to 6 per cent providing relief to home, auto and corporate loan borrowers.
'America holds about 16% of IMF voting rights, giving it crucial influence over Pakistan's desperately needed bailout loans.'
In the short run, the Trump presidency has already ensured one thing: The assumptions of the past can no longer guide the strategies of the future, points out Manish Dabhade.
India-US relations, like Rome, were not built in a day, nor can they be demolished in a day.
All said and done, when the new global order emerges, India can only remain with the democracies, asserts Ambassador T P Sreenivasan.
Since October, FPIs have offloaded Indian equities worth Rs 2.1 trillion.
'India is too important to the United States for there to be any kind of a permanent bump in the relationship.'
'India has the deciding vote in the 21st century...India is a significant player in the 21st century and is poised to become even more powerful.'
India's Foreign Secretary Vikram Misri will travel to Beijing for a two-day trip beginning Sunday, marking the second high-profile visit from India to China in less than one-and-a-half months. The visit comes amidst ongoing border tensions and follows a recent disengagement pact between the two countries in eastern Ladakh. The Foreign Secretary-Vice Minister mechanism meeting will focus on the next steps for India-China relations, including in the political, economic, and people-to-people domains. The decision to revive this bilateral mechanism was taken at a meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping in Kazan in October.
'Indian markets may underperform global peers for the next two quarters.' 'But beyond that, India should catch up and resume its long-term growth path.'
The central government is devising a mechanism to step up screening imports to protect domestic manufacturers. The details of the online monitoring system may find mention in the foreign trade policy 2021-26, which will kick in next month. The online system will make the data available to the government as well as industry about the countries from where the goods are being imported, and their quantity and quality. The data can help domestic producers analyse the market potential for such goods, said a senior government official. In the past 16 months, the government had implemented a steel- and coal-import monitoring system.
The crisis may not be as visible this time, but the stakes are just as high, points out Rajeswari Sengupta.
From the 30-share pack, Adani Port, Bharti Airtel, Asian Paints, IndusInd Bank, Bajaj Finserv, Reliance Industries, Infosys, UltraTech Cement, HDFC Bank, HCL Technologies and ICICI Bank were among the laggards. Tata Motors, Axis Bank, Maruti, Larsen & Toubro, ITC and Tata Steel were among the gainers.
The US remains the largest market for IT outsourcing, and for Indian giants TCS, Infosys and Wipro, it contributes around 40 per cent of their top line.
India expects partners to understand its policy of 'zero tolerance' against terrorism, and it will never countenance 'perpetrators of evil' being put on par with its victims, External Affairs Minister S Jaishankar said on Saturday during extensive talks with his British counterpart David Lammy.
India and China have announced a series of measures aimed at improving their relationship, including maintaining peace along the border, reopening border trade, and resuming direct flights.
Whether it's Carrefour, Ford, or other foreign majors, they are ready to adjust their strategies and design their plans in a way that would address the Indian consumption story.
'...he keeps his campaign promises, does what he said he will do which led to his huge victory.'
The last time this happened was in 1996.
'These efforts by Beijing can be weaponised one day with economic, security and political implications for India.'
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