Opening Bell - 13 / 01 / 25

Stock Market Updates

Opening Bell - Morning Commentary

Markets to open lower on concerns over slower GDP growth and slowdown Q3 earnings.

The Indian equity markets witnessed heightened volatility and ended the week with significant losses pressured by selling in financials and energy stocks. Concerns over India’s Currency and GDP growth projections pointing to a four-year low dampened market sentiment. Expected slowdown in Q3 corporate earnings also weighed on sentiments.

On a contrary note, India’s Industrial production numbers saw a significant improvement and increased to a 6-month high of 5.2% year-on-year growth. Services PMI surged from 58.4 in November to 59.3 in December, marking the most robust expansion in four months.

The reaction in the financial markets to the jobs reports was largely negative as markets are reassessing the need for further central-bank rate cuts. U.S. equities declined during the week, which was shortened due to Thursday’s market holiday.

U.S. Treasury yields were higher heading into Friday and jumped following the blowout jobs report, with the benchmark 10-year U.S. Treasury note yield touching its highest intraday level since November 2023. Global debt markets experienced a steep sell-off amid expectations of a stronger dollar.

Weighed by weak sentiment and soft global cues, Indian markets are slated to open lower this week. Strong support zone of 23260-23000 is likely to be tested in the first half.