India looks less equal to China than 5 years ago, the strategic alliance with the US is hobbled by trade, and Pakistan is looking anything but chastened by Balakot. What has gone wrong? asks Shekhar Gupta.
Plans for big bang reforms in the GST regime by Diwali, the Putin-Trump summit and S&P upgrading India's sovereign credit rating are likely to instil optimism in the domestic equity market in the week ahead, analysts said. Besides, trends in global markets and the trading activity of foreign investors would also impact domestic investors' sentiment.
In the Indian stock market, investors are interested in the actions of both domestic and foreign institutional investors (FIIs and DIIs). These groups have wealth as well as expertise in research, which makes them powerful participants in the Indian stock market. Their buy and sell positions have a large effect on stock prices and market sentiment due to the large volume.
The relations between New Delhi and Washington are on a downturn after Trump doubled tariffs on Indian goods to a whopping 50 per cent, including 25 per cent additional duties for India's purchase of Russian crude oil.
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.
'The big power struggle in faraway Europe erupted at a most critical juncture when India has been increasingly sceptical about American policies and statesmanship,' argues Ambassador M K Bhadrakumar.
'Don't play the American game... India is too big for a US game.'
Amid trade tensions between Delhi and Washington, the NYT article gives an account of how relations between Trump and Modi "unraveled" after Trump's repeated claims of solving the four-day conflict in May between India and Pakistan, an assertion denied by India.
Benchmark BSE Sensex tanked 824 points to settle at a fresh seven-month low on Monday following heavy selling in IT and oil & gas shares amid weak global trends. The 30-share BSE barometer plunged by 824.29 points or 1.08 per cent to close at 75,366.17 with 23 of its constituents ending lower and seven with gains. During the day the index moved between a high of 75,925.72 and a low of 75,267.59.
Equity markets this week will take cues from global trends, trading activity of foreign investors and quarterly earnings, with TCS kick-starting the results calendar on Thursday, analysts said.
'While the President has been critical of India, he has gone out of his way to compliment PM Modi. They have an incredible relationship.'
The issues around trade gaps, especially around steel and aluminium tariffs imposed by the US, will be addressed separately.
'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.'
Among the 30 Sensex firms, Asian Paints, Infosys, JSW Steel, UltraTech Cement, Power Grid, Larsen & Toubro, HCL Technologies and Tata Steel were the biggest laggards. Tata Motors, HDFC Bank, Bharti Airtel, ITC, IndusInd Bank and Axis Bank were the gainers.
Senior Congress leader Shashi Tharoor says US tariffs are negatively impacting India, leading to job losses, and criticizes President Trump's diplomatic behavior.
"These latest so-called 'Liberation Day' tariffs are reckless and self-destructive, inflicting financial pain on Illinois at a time when people are already struggling to keep their small businesses afloat and put food on the table."
To those who ask, "Is all this really worth it? Why can't domestic demand fill the gap?", it is important to remind them that only 13 economies since the Second World War have grown at 7 per cent or more for 25 years -- like India needs to. They all had one thing in common: Strong export growth underpinned by strong global engagement, explains Sajjid Z Chinoy.
Prime Minister Narendra Modi arrived in China for the Shanghai Cooperation Organisation (SCO) summit. His meeting with President Xi Jinping is significant given global economic concerns.
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.
Prime Minister Shigeru Ishiba's sudden resignation after only a year in office has thrown Japan into political turmoil, raising doubts about how the country will handle economic and regional challenges, observes Dr Rajaram Panda.
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.
'We do India great disservice if we continue to perpetuate a flawed narrative on trade, one based on myths rather than facts,' says Hardeep Singh Puri.
Imports too declined by 16.31 per cent to $37.39 billion.
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.
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.
'Geopolitically and diplomatically it's a very difficult situation for India.'
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.
On average, stocks that debuted last year are down 37 per cent from their peak levels.
'The policies announced by his administration are implemented faster.'
'America holds about 16% of IMF voting rights, giving it crucial influence over Pakistan's desperately needed bailout loans.'
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.
Foreign investors continue to show confidence in the country's equity market, infusing Rs 18,620 crore so far this month, driven by a combination of global tailwinds and improving domestic fundamentals. This positive momentum follows a net investment of Rs 4,223 crore in April, marking the first inflow in three months, data with the depositories showed.
'India is too important to the United States for there to be any kind of a permanent bump in the relationship.'
Movement in the equity market this week will be guided by a host of macroeconomic data announcements, global trends and trading activity of foreign investors, analysts said. Stocks markets concluded the last week on a subdued note, as investors grappled with global uncertainties.
There was no smooth surge in middle class prosperity for foreign businesses to tap into because of the Indian economy was mismanaged, argues Debashis Basu.
'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.'
'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.'
'Many global investors have been overweight on dollar assets, so some diversification or hedging is naturally expected.'
Yes, the entry of private bankers, particularly with global experience will add value to PSBs, points out Tamal Bandyopadhyay.
From the Sensex firms, Eternal climbed 3.32 per cent. Bharti Airtel, IndusInd Bank, Tech Mahindra, Reliance Industries, Tata Motors, HDFC Bank, Tata Steel and Hindustan Unilever were the other major gainers. However, Bajaj Finserv, Axis Bank, Tata Consultancy Services, Titan and Larsen & Toubro were among the laggards.
