Indian Stock Market Faces Turbulence Amid Geopolitical and Economic Pressures ??

This week, the Indian stock market faced significant challenges, primarily driven by geopolitical uncertainties and global economic cues.

Concerns over potential new tariffs imposed by the U.S. on key imports, including automobiles, pharmaceuticals, and semiconductors, created anxiety among investors.

The implications of these tariffs were particularly worrying for sectors heavily reliant on exports to the U.S., leading to increased selling pressure in the market.

Additionally, the policies of the newly inaugurated U.S. administration under President Donald Trump contributed to market volatility, as investors grappled with the potential impact on trade relations.

Further complicating the market landscape were the cautious signals emerging from the U.S. Federal Reserve. The latest minutes revealed a reluctance to implement interest rate cuts due to ongoing inflationary pressures and economic uncertainty.

Amid this backdrop, fund managers adopted a defensive strategy, favouring large-cap stocks with strong fundamentals over mid and small-cap stocks, which they perceived as overvalued.

This week, the Nifty 50 and Sensex fell by 0.58% and 0.27% respectively. The Nifty 50 closed below the 22,800 level while the Sensex closed below the 75,800 level.

Stock Spotlight ??

Top Gainers ??

Godrej Industries - ?1,131.50 (+41.31%)

GlaxoSmithKline - ?2,508.70 (+24.32%)

Bikaji Foods - ?675.30 (+16.88%)

Rajesh Exports - ?185.22 (+16.75%)

NLC India - ?223.78 (+15.18%)

Top Losers ??

PTC Industries - ?10,350.35 (-20.89%)

Kirloskar Oil - ?585.30 (-13.28%)

Carborundum - ?899.45 (-11.34%)

CreditAccess Grameen - ?866.35 (-10.33%)

Natco Pharma - ?797.95 (-9.65%)

Sectors in Focus ??

Financial Services ??

The financial services sector in India is poised for significant growth and transformation in the coming weeks, driven by several positive developments. As highlighted by RBI Governor Sanjay Malhotra, the sector is entering 2025 on a strong footing, characterised by robust earnings, low impaired assets, and solid capital buffers.

The Economic Survey for FY25 indicates that scheduled commercial banks (SCBs) have seen a notable decline in gross non-performing assets (GNPAs), which have fallen to a 12-year low of 2.6%. This decline, coupled with a year-on-year profit increase of 22.2% for SCBs, underscores the sector's improved profitability and stability.

Moreover, technological advancements are set to play a pivotal role in shaping the future of financial services in India. As digital adoption accelerates, particularly among underserved populations, India's fintech industry is anticipated to thrive.

The combination of these factors positions the financial services sector as a focal point for investors and stakeholders looking to capitalise on growth opportunities in the evolving economic landscape.

IPO Insights ???

This week 2 IPOs are listed - Ajax Engineering and Hexaware Technologies IPOs.?

Ajax Engineering is listed at a discount of 5.42%. In contrast, Hexaware Technologies is listed at a premium of 5.37%.

Quality Power Electrical Equipment closed this week and will be listed next week. Currently, the GMP is in negative.

As of now, there are no more IPOs expected to come next week.

That’s all for this week.?

We’ll see you again next week ??

Happy Investing!