Monthly Market Wrap | January 2025

What’s Trending?

Rupee Hits Record Low of 86.73 Against USD

• Lowest Ever: Rupee falls to 86.73 per USD on Jan 13.
• US Impact: Strong US job data delays Fed rate cuts, pressuring the rupee.
• Uncertain Future: Rupee likely to stay volatile in the coming days.

India’s Business Growth Slows

• 14-Month Low: Business activity weakens, mainly in services.
• Manufacturing Holds: Factory output remains stable.
• Inflation Easing: Lowering costs may push RBI to cut rates.

?V2 Retail Profits Double in Q3

• Stock Jumps: Hits 5% upper circuit at ?1,839.75.
• Huge Profit Growth: ?51.19 crore, up 117.2% from last year.
• Sales Boom: Revenue surges 58.1% to ?590.94 crore.
• Investor Confidence: Strong results drive stock higher.

IndiGo Hit by Rupee Depreciation

• Big Forex Loss: ?1,456.4 crore loss due to weak rupee.
• Higher Costs: Dollar-denominated lease payments increase expenses.
• Compared to Last Year: Loss was just ?50.9 crore in the same period.
• More Challenges Ahead: Further rupee volatility could impact profits.?

Factors that will drive the market in February 2025

RBI Interest Rate Decision

• Next Meeting: RBI’s Monetary Policy Committee meets from Feb 5-7, 2025.
• Rate Cut Expected: Analysts predict a 25 bps rate cut in early 2025.
• Impact: Lower interest rates could boost borrowing and economic growth.
• Market Watch: Investors await RBI’s stance amid growth concerns.

Quarterly Earnings Season?

• Q3 Results: Companies started announcing their earnings for Oct-Dec 2024.
• Key Indicator: Results will reflect company performance and economic health.
• Investor Focus: Markets will react to revenue and profit trends.
• Sectors in Spotlight: Banking, IT, FMCG, and Auto to be closely watched.

IIP Data Release in February

• Data Release: Industrial Production (IIP) data for December 2024 will be released in Mid February.
• Sector Performance:? FMCG, Pharma, Auto and other key industries.
• Economic Indicator: Measures industrial output and growth trends.?