The BSE Sensex rose about 1% to close at 77,500.6 on Friday, its highest level in three weeks and advancing for the fourth straight day. IT, auto, and consumer durable stocks led the charge, fueled by expectations of a pro-growth budget and prudent fiscal policies, as outlined in the economic survey. The document, presented by Finance Minister Nirmala Sitharaman, projects FY26 GDP growth at 6.3%-6.8%, with growth expected to hit a four-year low this year amid global uncertainty, while inflation is forecast to remain controlled and consumption stable. Meanwhile, traders monitored President Trump’s tariff threats and ongoing corporate earnings. Larsen & Toubro posted a 14% rise in consolidated profit and record new orders, while Nestle India’s December quarter performance met estimates, with healthy growth in key brands. The index recorded a 1.7% weekly gain but suffered a 0.8% loss in January, amid sustained foreign outflows and slowing earnings.
US stocks ended the week with a roller-coaster ride after the White House denied reports that President Trump was delaying tariffs by a month and confirmed his plans to impose tariffs on Mexico, Canada, and China this weekend, erasing earlier gains in equities. The S&P 500 dropped 0.5%, the Dow trimmed 310 points, while the Nasdaq 100 edged lower. Nvidia lost 3.7% amid lingering concerns that a Chinese AI startup could impact tech valuations, while Apple shed 0.7% despite reporting a 4% revenue increase and delivering optimistic guidance. Additionally, Exxon Mobil and Chevron fell 2.5% and 4.6%, respectively, after reporting their results. On a positive note, AbbVie rose 4.7% after its forecast 2025 earnings were above Wall Street’s average expectation as two key medicines gained ground. Meanwhile, the market barely budged after the US Core PCE inflation gauge met estimates, with markets continuing to bet on two rate cuts by the Fed this year.
The DAX closed little changed at 21,732 on Friday, setting a new record high, as market participants assessed key inflation data from both Europe and the US, while also evaluating the latest corporate earnings reports. Both Germany and France saw headline inflation below forecasts, suggesting easing price pressures and reinforcing expectations that the ECB will continue with rate cuts this year. On the business front, Germany's Commerzbank reported today a 20% surge in net profit in 2024. Meanwhile, investors' attention shifted to President Donald Trump’s tariff announcements, scheduled for Saturday. The DAX notched its fourth consecutive weekly gain with a 1.6% rise, wrapping up January with a 9.2% increase, its best performance since November 2023.
