Analysts predict that reciprocal tariffs starting April 2 may impact equity markets, along with overseas market trends and FII activity. Investors will also focus on global developments, PMI data, rupee-dollar trends, and Brent crude prices. Given recent modest FII buying and quarterly earnings reports, potential tariffs could play a vital role in market movements.
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The rupee experienced its sharpest single-day drop in two years, closing at 86.58 due to a stronger US dollar following robust job data and new sanctions on Russian oil. Additional factors like reduced forex reserves, FII outflows, and market expectations of prolonged high US interest rates aggravated the decline.
Equity markets are bracing for a volatile, holiday-shortened week, influenced by US-China trade war developments and key Q4 earnings from Indian giants like Wipro and Infosys. Investors will closely monitor global cues, foreign investor activity, and inflation data. Market sentiment will also be affected by rupee-dollar movements and Brent crude oil prices amid significant global economic data releases.
Moody's Ratings anticipates that ongoing US trade policy uncertainty, particularly tariffs, will negatively impact business and consumer confidence across Asia, including India, potentially slowing regional growth. While India may show some resilience due to its domestic market, significant investment shifts will take time. The tariff pause offers a window for trade negotiations, but broader de-globalization trends persist.
Vivo India and Dixon Technologies are forming a joint venture for contract manufacturing electronics, including smartphones. Dixon will hold a 51% stake. The partnership aims to boost local manufacturing and Vivo's presence in India, with the JV handling some of Vivo's OEM orders and potentially those of other brands.
India's Finance Act of 2022 has introduced a 30% tax on income from cryptocurrencies, classified as virtual digital assets. Investors are required to pay 1% TDS on transactions exceeding certain limits and cannot offset cryptocurrency losses against other gains or carry them forward.
SoftBank is negotiating a potential $25 billion investment in OpenAI, the creator of ChatGPT, according to insiders. This investment would significantly bolster SoftBank's involvement in the AI sector and support the OpenAI-Stargate initiative aimed at maintaining the US's lead in global AI advancements.
Aurobindo Pharma's subsidiary, CuraTeQ Biologics, received a positive CHMP opinion for its filgrastim biosimilar, Zefylti, intended to treat neutropenia and mobilize peripheral progenitor cells. Zefylti is CuraTeQ's first biosimilar to receive this positive opinion. Three additional biosimilars are currently under review with EMA and UK-MHRA, expected to be available next year.
Following the US removal of tariffs, Indian electronics exports, including smartphones and laptops, are poised to become 20% cheaper than those from China. This move provides a significant boost to India's electronics manufacturing sector, offering a competitive edge over China and Vietnam. Experts believe this strengthens India's position in the global electronics supply chain, presenting a vital opportunity for growth.
In efforts to boost innovation, pharma and med-tech sectors in India seek a 10% allocation from the National Research Fund, reinstatement of 200% weighted deductions for R&D, and tax incentives for AI research in the Union Budget. They also call for reduced import duties and GST on medical devices to enhance affordability and ensure quality healthcare for patients.
KFin Technologies Ltd reported a 35% year-on-year increase in profit after tax to Rs 90.18 crore for the quarter ended December 2024. Revenue from operations rose by 32.6% to Rs 290 crore. For the first nine months of FY25, the company's PAT grew by 44.3%, with revenues increasing to Rs 808 crore.