Morning Mint Newsletter
Tuesday, January 28, 2025
Hello friends, Indian markets declined to seven month lows on Monday January 26th. Nifty opened below crucial level of 23000 and closed at 22829.15, very near to the support level of 22786-800.
Talking purely technically, coming days and this week ending it will be crucial for Nifty to claim 23000 level and close decisively above 23000 to give ray of hope to Bulls in the market and pause further fall in the market. All eyes on upcoming Union Budget on 1st February, Saturday.
Global Market Overview
- Tech Stocks Decline: On Monday, U.S. tech stocks faced significant downturns due to the emergence of DeepSeek, a Chinese startup introducing a cost-effective AI model. The S&P 500 decreased by 1.8%, and the Nasdaq Composite fell by 3.3%. Nvidia’s shares notably dropped by more than 17%. (Data at 12:40 am January 28)
- DeepSeek’s Impact: DeepSeek’s new AI model has raised concerns among investors about increased competition in the tech industry, leading to declines in major tech stocks.
Indian Market Insights
- Market Performance: Indian markets declined to seven-month lows on Monday. The Sensex decreased by 1.08% to 75,366.17 points, and the Nifty 50 fell by 1.14% to 22,829.15 points. This downturn was influenced by weak earnings reports and global uncertainties.
- Foreign Portfolio Investors (FPIs): FPIs have been net sellers in the Indian equity market for 17 consecutive sessions, offloading equities worth ₹5,016 crore recently. So far in January 2025, FPIs have sold equities totaling ₹67,022 crore, according to NSDL.
Key Factors Influencing the Market
- Global Economic Concerns: Ongoing global economic uncertainties, including trade tensions and interest rate decisions, continue to affect investor sentiment.
- Corporate Earnings: Recent underwhelming earnings reports have heightened concerns about a potential slowdown in corporate profits, contributing to market declines.
- Indian Budget announcement on February 1st is itself an enigma which is one of the big factors causing market volatility.
Looking Ahead
Investors are advised to monitor upcoming corporate earnings reports, union budget announcements and global economic developments closely.
Stay informed with Morning Mint and navigate the current market volatility smoothly.
– Team Morning Mint
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