Indian equity markets are anticipated to open on a subdued note this Thursday, reflecting declines in U.S. stock futures and weaknesses observed in Asian markets. The upcoming weekly futures and options (F&O) expiry may also contribute to market volatility.
Looking into 2025, investors are confronted with several challenges, particularly the ongoing uncertainty regarding U.S. monetary policy and the anticipated economic strategies of President-elect Donald Trump, which are geared towards fiscal growth and imposing tariffs.
Upon his inauguration on January 20, President Trump is expected to implement a 25% tariff on imports from Canada and Mexico and a further 10% tariff on imports from China, atop any existing tariffs. Additionally, consistent foreign institutional investor (FII) outflows, influenced by a depreciating rupee, persistent inflation, and indications of slowing corporate earnings growth, could further impact Indian equities.
On the international stage, any escalation in the conflict in the Middle East could drive oil prices upwards, given the region's significant role as an oil exporter.
On Wednesday, India's benchmark indexes, Sensex and Nifty, experienced approximately a 0.4% increase, propelled mainly by the gains in auto and public sector undertaking (PSU) stocks.
The Indian rupee remained stable, closing at 85.64 against the U.S. dollar, with major global markets inactive due to the New Year holiday.
In early trading today, Asian markets are displaying cautious behavior. The U.S. dollar remains robust, while gold has commenced the New Year strongly, following a 27% annual gain.
Meanwhile, oil prices have inched higher following data indicating a continued decrease in U.S. crude stockpiles.
The material has been provided by InstaForex Company -
www.instaforex.com
