Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, tanked in opening trade on Monday before recovering a bit. While BSE Sensex fell over 600 points, Nifty50 went below 22,750.
Stock market recommendations: Shriram Finance is expected to benefit from a recovery in vehicle finance, with an anticipated 18% AUM and 19% PAT CAGR over FY24-27. Varun Beverages is projected to sustain earnings growth with a 12% revenue and 17% PAT CAGR over CY24-26, supported by expanding international markets and domestic expansion.
Central banks in Asia, including RBI and Bank Indonesia, are increasingly using derivatives to protect their currencies against the strong dollar. The RBI’s short forward dollar position reached $68 billion in December, while Bank Indonesia’s hit $19.6 billion. This strategy raises concerns about potential deferred selling pressure instead of removing it, suggesting possible future risks.
India is set to resume free trade negotiations with the UK and EU, aiming to counter protectionist policies by Trump. Important talks with trade ministers are scheduled, and India shows commitment by reducing some tariffs and considering bilateral investment treaty changes.
Post-Covid, Japanese companies are increasingly considering India as a manufacturing base under the ‘China Plus One’ strategy to reduce reliance on China. Deloitte Japan’s CEO highlighted India’s potential not just as a production hub but also as a gateway to high-growth markets in the Middle East and Africa. The Japanese government supports this diversification move.
Labour and employment minister Mansukh Mandaviya emphasized the Modi government’s priority on industry and trade to elevate India to a developed nation by 2047. Highlighting initiatives like ‘Make in India’ and ‘Startup India’, he noted the increase from four to 118 unicorns over the last decade.
Hitesh Mehta, the general manager of New India Cooperative Bank, was arrested by Mumbai police for allegedly embezzling Rs 122 crore. The case, initially reported at Dadar police station, was later transferred to the Economic Offences Wing. The arrest followed a complaint by the bank’s acting CEO.
Harsh Jain, CEO of Dream11, has requested for creation of an independent regulator like SEBI for the online gaming industry. He warns that the sector will collapse if forced to pay the retrospectively imposed GST, which impacts 400 companies and threatens their financial viability. Jain suggests lower tax rates based on Gross Gaming Revenue.
Foreign investors have been selling Indian equities rapidly since the start of 2025, with outflows nearing Rs 1 lakh crore. This sharp shift follows US President Donald Trump’s return to the White House, leading investors to favor the American economy.
New Income Tax Bill 2025: Finance Minister Nirmala Sitharaman introduced the New Income Tax Bill 2025 in Lok Sabha, set to replace the Income Tax Act 1961. The new bill aims to simplify tax provisions with clearer language, reducing its length and eliminating redundant sections while consolidating related content for easier understanding and compliance.
