India's BSE Sensex closed about 0.67% firmer at 85,762 on Friday, an all-time high, supported by broad-based buying across most sectors, except FMCG. Strong buying was seen in power, banking, autos and metal stocks amid expectations of strong Q3 earnings. At the same time, positive market sentiment was influenced by stable domestic macro fundamentals and ongoing confidence in India’s medium-term growth prospects. Among individual stocks, NTPC (+4.6%), Trent (+2.4%), State Bank of India (+2.1%), Bajaj Finance (+1.8%), Power Grid (+1.7%), Maruti (+1.5%, ICICI Bank (+1.4%) and Bharat Electronics (+1.4%) were among the biggest gainers. On the downside, ITC slipped nearly 4%, pulling the fast-moving consumer goods index down 3.7% amid concerns over earnings pressure from higher taxes on cigarettes. Other losers included Kotak Mahindra Bank (-1.4%), Axis Bank (-0.4%) and Bharti Airtel (-0.1%). For the week, the index gained about 0.8%.
US stocks closed mostly higher after a volatile first session of the year, reflecting the market's uncertainty on whether AI software providers have overdone their pledges of AI capital expenditure. The Dow gained 370 points on the strength of core sectors of the economy, while S&P 500 added 0.3% and the Nasdaq 100 closed flat. Chip producers rose sharply amid a series of positive corporate developments in the sector with Nvidia gaining 2%, while Micron and Intel jumped 10% and 7%, respectively. Baidu announced the IPO of its AI chip arm in Hong Kong, while asset managers upgraded ASML. Furniture makers also advanced as President Trump delayed tariffs on inputs, with Wayfair and RH adding 6% and 8%. AI software producers fell sharply, with Microsoft, Meta, Amazon, and Palantir fell between 2% and 5%. Additionally, Tesla lost 2.5% after missing its delivery target in the fourth quarter. Broader sectors were supported by the view of robust growth and lower rates by the Fed this year.
