Discover the top business headlines that are trending across the world today!
Benchmark stock market indices opened lower on Wednesday, continuing a downward trend from the previous two sessions, as investor sentiment remained cautious.
As of 9:55 AM, the S&P BSE Sensex fell 15.56 points to 80,668.89, and the NSE Nifty50 lost 4 points, reaching 24,332.00.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that the market’s near-term outlook has weakened, with foreign institutional investors (FIIs) turning net sellers during rallies. The strong FII sell-off of Rs 6,410 crore on Tuesday is indicative of more selling pressure in the near future. This shift is partly due to the relative underperformance of the Indian market compared to the US, where the S&P 500 has risen 27.5% year-to-date, while the Nifty is up only 12%.
Global markets are awaiting the Federal Reserve’s upcoming decision, with expectations of a 25 basis point rate cut and a focus on the accompanying commentary.
US President-elect Donald Trump reiterated his commitment to imposing reciprocal taxes, criticizing India for its high tariffs on American goods. Speaking at his Mar-a-Lago resort, Trump highlighted India’s 100% tariff on certain U.S. products, questioning the lack of equivalent U.S. measures. He argued that if countries like India and Brazil impose steep tariffs, the U.S. should respond with similar charges.
Trump emphasized the need for fairness, stating, “If they tax us, we tax them the same amount.” He also criticized the current U.S. trade approach, claiming it allows foreign nations to levy significant tariffs on American exports without retaliation.
Howard Lutnick, Trump’s nominee for Commerce Secretary, reinforced this stance, advocating for reciprocity in trade policies. The U.S. remains India’s largest trade partner, with bilateral trade exceeding $120 billion in fiscal 2024. Unlike its deficit with China, India enjoys a favorable trade balance with the U.S.
Indian firms are increasingly turning to cross-currency swaps to reduce borrowing costs, according to bankers. By converting debt into euros or Japanese yen, companies aim to capitalize on expected interest rate declines in these currencies compared to the dollar. Some firms are swapping rupee debt, while others convert dollar loans. The European Central Bank's rate cuts could lower borrowing costs by 150-200 basis points in the coming months.
Cross-currency swaps allow firms to manage interest rate and forex risks by converting loan principals or repayments between currencies. The yen, with near-zero interest rates, and favorable loan pricing, has become a popular choice. Additionally, a strong dollar has prompted a shift away from USD-INR pairs.
ECB President Christine Lagarde has hinted at further rate cuts amid a slowing eurozone economy. Meanwhile, rising dollar hedging costs and market uncertainties are influencing corporate decisions.
CoinSwitch, India’s leading crypto trading platform, has published its third annual report, India’s Crypto Portfolio 2024: How India Invests. The report delves into India’s evolving crypto ecosystem, analyzing city-wise investment patterns and demographic trends driving digital asset adoption. For the third year running, Delhi-NCR leads in crypto investments, contributing 20.1%, nearly double Bengaluru’s 9.6%, which ranks second, followed by Mumbai at 6.5%. These three cities collectively account for over 36% of India’s crypto investments, showcasing notable growth from last year.
Kolkata and Botad (Gujarat) have entered the top 10 cities for crypto adoption, ranking 9th and 10th, respectively, reflecting the broader acceptance of cryptocurrencies nationwide. Pune stands out with 86% of its investors reporting profits, making it the city with the highest proportion of profitable portfolios in India. The report underscores the increasing appeal and success of crypto investments across diverse regions.
