GIFT Nifty:

The GIFT Nifty January 2025 futures contract is currently down 5.50 points, indicating a flat-to-negative start for the Nifty 50.

Politics:

The JD(U) on Wednesday sacked its Manipur unit president, Ksh. Biren Singh, in an effort to quell growing speculation about its ties with the BJP. Party’s national spokesperson Rajiv Ranjan told the media Singh’s removal was due to indiscipline and asserted that the party would continue to support the BJP-led government in the northeastern state. Ranjan affirmed that the JD(U) remains committed to supporting the BJP-led NDA, not just in Manipur but across the country. Ranjan’s remark came shorty after Ksh Biren Singh claimed that the party had withdrawn support to the BJP-led Biren Singh government and informed its decision to governor Ajay Kumar Bhalla. The state unit chief had also claimed that the lone JDU MLA in the state, Md Abdul Nasir, will sit in the opposition benches.

Institutional Flows:

Foreign portfolio investors (FPIs) sold shares worth Rs 4,026.25 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,640.22 crore in the Indian equity market on 22 January 2025, provisional data showed.

According to NSDL data, FPIs have sold shares worth Rs 59380.83 crore (so far) in the secondary market during January 2025. This follows their sale of shares worth Rs 2589.63 crore in December 2024.

Global Markets:

Most Asian stocks climbed on Thursday, buoyed by a rally on Wall Street driven by optimism over increased spending on artificial intelligence (AI). However, Asian investors remain cautious as they assess the implications of US President Donald Trump’s early days in office, which have sent mixed signals. While Trump reiterated tariff threats against China, fears of an escalation in the trade war have largely been avoided, leaving the world’s second-largest economy somewhat unscathed for now.

In China, investors are considering additional measures from Beijing to stabilize its stock market. On Wednesday, the government introduced a series of policies, including plans to increase the portion of pension funds that can be invested in listed companies, aiming to shore up market confidence.

South Korea's economy grew by 0.1% quarter-on-quarter in the final three months of 2024, according to preliminary data from the central bank. On a year-on-year basis, GDP growth slowed to 1.2% from 1.5%, reflecting challenges in the broader economic environment.

Meanwhile, Japan posted a surprising trade surplus of 130.9 billion yen ($840 million) in December, beating expectations for a deficit of 55 billion yen. This marked a significant turnaround from November's 110.3 billion yen deficit, supported by strong exports, according to government data released Thursday.

In the US, the S&P 500 came close to a record high on Wednesday, boosted by a surge in tech stocks and AI-related companies. The rally followed President Trump’s announcement of a $500 billion initiative to enhance domestic AI development.

Netflix shares soared nearly 10% after the company reported a record-breaking addition of 19 million new subscribers in Q4 2024, surpassing market expectations by a wide margin.

The S&P 500 briefly touched an all-time high of 6,100.81 points before trimming gains to close 0.6% higher at 6,086.28 points. The NASDAQ Composite gained 1.3% to reach 20,009.34 points, while the Dow Jones Industrial Average edged up 0.3%.

Domestic Market:

The domestic equity benchmarks displayed a mixed performance on Wednesday, with benchmark indices Nifty and Sensex rallying on the back of strong third-quarter earnings from HDFC Bank. Mid-cap and small-cap indices, on the other hand, witnessed a sharp decline, plunging over 1% each. Analysts attributed this to elevated valuations in these segments, which currently surpass historical averages. The S&P BSE Sensex advanced 566.63 points or 0.75% to 76,404.99. The Nifty 50 index added 130.70 points or 0.57% to 23,155.35.