Bajaj Broking Research highlights top stock picks including Tata Steel, and Bharat Electronics for January 31, 2025. Nifty and Bank Nifty indices show potential for pullbacks and consolidation.
The Federal Reserve decided to maintain its benchmark lending rate between 4.25% and 4.50% despite President Trump's calls for reductions. The Fed highlighted stable unemployment and solid labor conditions, while acknowledging elevated inflation. Experts are uncertain about future rate cuts amid Trump's trade and immigration policies.
China has emerged as a significant player in AI foundation models with DeepSeek, creating powerful AI models at lower costs than the West. This has spurred a debate in India about whether to develop indigenous large language models or focus on smaller, application-specific ones. Experts emphasize the need for investment in research, infrastructure, and innovation to enhance India's AI capabilities.
Following the RBI's liquidity infusion, experts anticipate government measures to strengthen the rupee. Potential steps could include promoting exports and attracting foreign deposits. Noted changes from past currency management practices signal a focus on maintaining smooth monetary transmission rather than direct intervention in currency markets.
RBI's decision to infuse ₹1.5 lakh crore liquidity boosted banking stocks, leading to a sensex rise of 530 points. Despite a late sell-off, major banks led gains, while foreign funds continued selling. Mid- and small-cap sectors saw declines. Upcoming events, such as the US FOMC meeting and Union Budget, are expected to contribute to market volatility.
In a significant shake-up of the tech industry, Nvidia's shares dropped by nearly 17% after a new Chinese generative AI model by DeepSeek emerged as a formidable competitor. The AI model, developed at a fraction of the cost, challenges US dominance in the AI sector, causing widespread market reactions.
RBI announced measures to infuse over Rs 1.5 lakh crore in money markets to address liquidity shortfall. The plan includes government bond buy-backs, a long-term repo auction, and a dollar-rupee swap auction. These steps, seen as a precursor to a possible repo rate cut in February, aim to stabilize the financial system and enhance monetary transmission.
Automobile exports from India saw a notable 19% increase in 2024, reaching 50,98,810 units compared to 42,85,809 units in 2023. The growth was driven by strong demand for two-wheelers, passenger vehicles, and commercial vehicles, particularly in emerging markets such as Latin America and Africa.
Consumer complaints related to loans and advances rose 43%, representing 29% of the total grievances against RBI-regulated entities in FY24, according to the Reserve Bank's Integrated Ombudsman Scheme report. Overall complaints increased by 33%, with a notable rise in grievances related to mobile and internet banking and deposit accounts.
The Centre has introduced the Unified Pension Scheme (UPS) for central government employees with assured payouts and inflation adjustments for those with over 25 years of service. Employees currently under the National Pension System (NPS) have a one-time option to switch to UPS, which starts in April.
ICICI Bank's profit after tax increased by 14.8% year-on-year to Rs 11,792 crore for Q3-2024, driven by higher net interest income, fee earnings and a 15.1% loan growth. On a consolidated basis, profit rose by 16.6% to Rs 12,883 crore, with strong performance from subsidiaries.
Venugopal (Venu) Lambu has been appointed as the new CEO of LTIMindtree for a five-year term. Lambu, a three-decade IT veteran, takes over from Debashis Chatterjee, who led the company to a $4.3-billion IT enterprise. Lambu previously served as the CEO of Randstad Digital.
Tata Electronics has acquired a 60% stake in Pegatron's India unit, which operates an iPhone plant in Tamil Nadu. This acquisition positions Tata Electronics as a significant Apple supplier in India. The company plans to collaborate with Pegatron Technology India and diversify its production to include components for Xiaomi and Oppo.
Mobile phone purchases on EMI are helping individuals in the informal sector create a formal credit history, enhancing access to other loans. Digital lending and no-cost EMIs from lenders like Bajaj Finance are boosting mobile sales on credit. Obtaining these loans helps in generating a credit score, which is beneficial for future borrowings.
The Indian government is set to launch social security contributions for gig workers, with platforms required to deduct a portion of payments and deposit it with the Employees' Pension Scheme. The government will also contribute 3-4%. Efforts are being made to implement the Social Security Code, which includes health and accident insurance, to provide much-needed protection for gig workers.
The government is likely to introduce measures to enhance financial support for exporters and small businesses in the upcoming Budget. This includes options like collateral-free lending and a pending interest equalisation scheme. The aim is to alleviate financial challenges faced by these sectors, which are crucial for economic activity and employment generation.
The government is expected to exceed its fiscal deficit consolidation target for FY25 due to slower-than-budgeted public capex in an election year, closing at 4.8% of GDP. For FY26, the fiscal deficit is projected to achieve the target of below 4.5% of GDP, with substantial RBI dividends aiding the target, despite weak growth and expenditure cuts.
As Forex Reserves Swell To All-Time High Of $786Bn, RBI Announces Sale Of 1L Cr Bonds from Business News Today: Stock Markets, Financial N...
