Short-term yields fall on surplus liquidity
Bond yields are diverging, with short-term rates falling due to liquidity while long-term rates rise, signaling the end of the current rate-cut cycle. Institutions are locking in long-term funds, anticipating future rate increases, as the market prices in a potential shift to higher rates.
Corporate revenues jump most in six quarters on GST push
Corporate revenues and profits surged in India during the December quarter, driven by GST reforms and strong performance in key sectors like automotive and financials. Analysts anticipate continued double-digit earnings growth in FY27, supported by favorable trade deals and improving business fundamentals, with a shift towards mid- and small-cap companies.
AI bubble fears are creating new derivatives
Debt investors are increasingly concerned about major tech companies taking on significant debt for AI development, leading to a surge in credit derivative trading. This market activity, particularly for single-company contracts on issuers like Meta and Alphabet, reflects a growing demand for protection against potential defaults as AI investments escalate.
Global Markets | China’s stock bull run falters with earnings set to underwhelm
Chinese stocks face a gloomy outlook as corporate earnings show a significant downturn. Investors are concerned that upcoming holiday spending will not be enough to boost the market. Economic indicators point to weak consumer demand. This situation is fueling worries that the Lunar New Year will not bring its usual economic uplift.
Reserve Bank of India restores default loss guarantees for NBFCs
Non-banking finance companies (NBFC) can now factor in DLGs when setting aside buffers for potential loan losses, provided the guarantee forms an integral part of the loan arrangement, the RBI said last week.
RBI initiates talks to ease overseas investment norms
The Reserve Bank of India is seeking input from banks to streamline overseas investment rules. This move aims to simplify procedures and ease compliance hurdles for Indian companies. Discussions are underway to address practical challenges and ambiguities in the current framework. The central bank is looking to clarify regulations and facilitate smoother outbound investments for […]
Traders stay guarded as Nifty turns range-bound, support at 25,100 zone
Nifty faces a range-bound week after failing to breach 26,000. Analysts anticipate cautious trading with support seen at 25,300 and resistance at 25,700-26,000. Traders are advised a wait-and-watch approach. Key stock picks include Bajaj Finance, Torrent Pharma, Tata Motors Passenger Vehicles, Dr. Reddy’s Laboratories, L&T, and Pricol, offering potential trading opportunities.
FPIs trim bearish bets, but no rush to buy yet
Overseas fund managers have reduced bearish derivative bets on India, moving from near-lifetime lows as market pessimism eases. However, they remain cautious, retaining significant short positions due to ongoing AI trade uncertainties on Wall Street. This cautious approach is reflected in the fluctuating Long-Short Ratio of FPIs’ Nifty futures.
Commodities enter a corrective phase: Will it last or is it just a pause?
On the other hand, geopolitical risks are still high. Global risk indicators continue to show heightened concerns around interstate tensions and geoeconomic confrontation through 2026. Such uncertainty can keep volatility high in commodity markets—even if spot prices are taking a breather.