In 2025, India's fiscal constraints will continue to limit its credit strength despite potential economic benefits from US-China tensions. Moody's anticipates gradual fiscal consolidation with debt levels and affordability remaining concerns. Geopolitical and economic risks persist, particularly from US-China relations affecting trade and investment flows.
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Indian IT firms generated $20 billion in free cash flows last year with over 75% returned to shareholders. Experts highlight the need for a reset as AI disrupts traditional business models. They suggest reinvesting in innovation and strategic investments to leverage future opportunities rather than focusing only on short-term shareholder returns.
Coffee Day Enterprises Ltd (CDEL) faces resumed insolvency proceedings as the NCLAT did not issue its order by the Supreme Court’s deadline. The insolvency process, initially started due to Rs 228.45 crore default claim, was previously stayed pending appeal.
Global trade in 2025 is expected to transform due to geopolitical tensions, potential US-China trade wars, AI advancements, and sustainability demands. Experts urge Indian exporters to prioritize AI strategy and environmental standards to stay competitive. New technologies and trade agreements pushing sustainability are crucial for future trade dynamics.
Emami's MD, Harsha Vardhan Agarwal, new Ficci president, states that consumption slowdown, impacted by inflation, will take a few quarters to normalize. He suggests controlling inflation and boosting government spending to revive demand, noting a mixed bag for FMCG with rural uptick and urban slowdown.
India's Union Cabinet has approved the 'Protection and Enforcement of Interests in Aircraft Objects Bill, 2024 (Cape Town Convention Bill)', making it easier for aircraft and engine lessors to reclaim their assets from insolvent airlines. The move aims to lower leasing costs and end prolonged legal battles, addressing concerns highlighted by the GoAir incident.
Despite rising industrial metal prices, India's core inflation outlook remains positive. Significant factors like a stable rupee, declining energy prices, and a normal monsoon suggest a supportive inflation environment, although global market uncertainties such as trade policies and commodity price changes could still create challenges.
India's industrial production growth slowed to 3.2 per cent in December 2024, driven by a poor performance in mining and manufacturing sectors. The IIP grew 4 per cent during April-December 2024, with power output increasing to 6.2 per cent, while consumer non-durables output contracted by 7.6 per cent.
Chinese officials are exploring the possibility of Elon Musk acquiring TikTok's US operations if the platform faces a ban, preferring it remains under ByteDance's ownership. Senior officials are debating contingency plans while ByteDance contests the ban in the Supreme Court. Negotiations involve complex geopolitical and financial factors, with Musk's involvement seen as strategically favorable.
Consumer-centric companies are witnessing a surge in sales as Valentine's Day approaches, with increased demand for jewellery, apparel, premium chocolates, and curated experiences. Quick commerce platforms like Zomato are capitalising on the spike in demand for flowers, cakes, and desserts. Retailers report sales on par with the festive season, boosting Valentine's Day's commercial appeal.
Stock market recommendations: Vedanta and International Gemmological Institute have been identified as top stock picks by Bajaj Broking Research, with favorable entry points noted.