Sensex, Nifty close higher over US-China trade hopes despite FII outflow fears
Benchmark stock market indices closed higher on Monday, ending the week with a rally that was driven by IT, FMCG, and financial sector stocks.The S&P BSE Sensex added 769.09 points to close at 81,721.08, while the NSE Nifty50 gained 243.45 points to end at 24,853.15.Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity, said that the market sentiment was buoyed by optimism over US-China trade negotiations, following a mutual agreement between Washington and Beijing to maintain open lines of communication.advertisement
"However, gains were capped due to concerns over foreign fund outflows, amid rising US Treasury yields and a weakening US fiscal outlook," he added.Eternal Company led the charge with a gain of 3.51%, followed by Power Grid Corporation which surged 2.51%. ITC advanced 2.39%, while Bajaj Finserv climbed 2.09% and Nestle India rounded out the top five gainers with a solid rise of 1.83%.Only one stock among Sensex's top companies managed to close in the red. Sun Pharmaceutical Industries was the sole loser for the day, declining by 1.84%.The Nifty Midcap100 advanced by 0.64% while the Nifty Smallcap100 posted a solid gain of 0.80%, indicating robust performance in the broader market segments. The India VIX declined marginally by 0.11%.Almost all sectoral indices closed in positive territory, reflecting widespread buying interest across various segments.advertisementNifty FMCG emerged as the top performer with a gain of 1.63%, followed by Nifty Financial Services which surged 1.15% and Nifty Private Bank advancing 1.06%.Other notable gainers included Nifty IT up 0.95%, Nifty Oil & Gas rising 0.78%, Nifty Metal gaining 0.76%, Nifty Media climbing 0.54%, Nifty PSU Bank adding 0.52%, Nifty Consumer Durables up 0.32%, Nifty Realty advancing 0.26%, and Nifty Auto posting a modest gain of 0.24%.However, Nifty Healthcare Index bucked the positive trend, declining marginally by 0.01%, while Nifty Pharma also faced minor selling pressure with a decline of 0.41%.Ajit Mishra – SVP, Research, Religare Broking Ltd, said that technically the recovery after retesting the crucial short-term support level, the 20-day exponential moving average (20 DEMA), has eased some pressure."The outlook could improve further with renewed strength in the banking and financial sectors after their consolidation phase. We maintain our view of adopting a 'buy on dips' strategy, with a focus on selective stock picking, unless the Nifty decisively breaks below the 24,500 mark," said Mishra.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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India.com
33 minutes ago
- India.com
Why is Trump desperate for a trade deal with China? Know the SHOCKING reasons that brought US to its knees due to...
(File) China Rare Earth Elements: After assuming office for his second Presidential term in January this year, Donald Trump instigated a trade war with China by imposing exorbitant import tariffs on Chinese good. However, nearly six months later, the US President is desperately seeking a trade deal with Beijing to prevent key American industries from collapsing. Here's the reason why Trump made a U-turn on China, and is appeasing the Asian power to seek a China-US trade deal. Why US bent the knee to China? China dominates the global supply of rare earth elements, which are used by the US defense industry to manufacture advanced weapons and defense systems like radar systems, fighter jet engines, etc. According to a report by the South China Morning Post, China controls more than 90 percent of the world's processing and refining of rare earth elements, and also leads in other refining an extraction of other critical minerals like refined gallium, of which it controls 98.8 percent of global production. In recent years, Beijing has leveraged its dominance in critical mineral production and refining as a major negotiating point in trade wars, as well as targeting the defence industries of the US and its allies. The US defense industry is majorly dependent on China for rare earth minerals, but the supply has been nearly halted due to the ongoing US-China tariff war. China has imposed an export ban on rare earth elements to the US, effectively weaking the Pentagon's Pentagon's military preparations and weapons manufacturing capabilities. How China pressured the US into submission? In July 2023, Beijing imposed export controls requiring Chinese exporters to seek permission to ship eight gallium-related and six germanium-related products to other countries. In August last year, the list was expanded to include antimony, and in December, the Chinese Ministry of Commerce imposed export restrictions on gallium, germanium and antimony to the United States, as Beijing anticipated a trade war when Trump assumed office. In April this year, Beijing imposed export restrictions, mandating special export licenses for seven categories of medium and heavy rare earth elements (REEs) – samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium – as well as magnets and other finished products containing these REEs to be shipped out of China. China's sweeping restrictions on REEs brought defense manufacturing to a halt in US and its allied countries, as supplies of rare earth minerals required for weapons' manufacturing rapidly thinned out. Why US requires large quantities of REEs? The United States is world's largest arms manufacturer and its defense sector requires a gargantuan amount of rare earth minerals to manufacture advanced modern weaponry such as precision-guided missiles, stealth fighter jets, naval warships, submarines and advanced radar systems. According to various reports, the US-made F-35 stealth fighter incorporates over 400 kg (900 lbs) of REEs in each unit for its jet engines, avionics, munitions and radar systems. The F-47, US' Next-Generation Air Dominance (NGAD) fighter jet, is expected to contain even larger amounts of critical minerals, due to cutting-edge features like unmanned flight, artificial intelligence integration, and next-gen stealth capabilities. Similarly, US navy warships and submarines require giant quantities of REEs, with Virginia-class submarines requiring 4,200 kilograms and Arleigh Burke-class destroyers needing 2,360 kilograms of REEs for their radars, munitions and other technologies. US Predator drones, Tomahawk missiles, Joint Direct Attack Munition (JDAM) smart bombs, and advanced radar systems all rely on rare earth elements for propulsion, targeting, and guidance. According to experts, more than 80 percent of the Pentagon's weapon system supply chains contain antimony, gallium, or germanium. Does US have REE resources? While the US does have rare earth resources, those pale in comparison to China's gigantic hold on global refining and processing of REEs. The US accounts for around 15 percent of global production of REEs, but its not enough to meet the rare earth needs of US industries, especially the defense sector. Since 2020, the Pentagon has invested $439 million to build domestic supply chains in critical minerals, and a $35 million contract was awarded to MP Materials in 2022 for a heavy rare earth processing facility. However, its supply chain is still miniscule compared to China, and thus needs to import a major chunk of REEs from Beijing. In 2024, MP Materials announced a record production of 1,300 tons of neodymium-praseodymium (NdPr) oxide for producing neodymium magnets, while China produced an estimated 300,000 tons of NdFeB magnets in the same year. China's antimony dominance Additionally, the US does not have any mining facilities for gallium, while China reportedly produced 750 of the 760 tons of primary low-purity gallium produced worldwide in 2024 and is known to have production capacity of up to 1,000 tons. China also holds about 48 percent of the world's mined antimony, controls 98.8 percent of refined gallium production, and is responsible for 59.2 percent of refined germanium production. All these critical minerals are used in the manufacturing of advanced weapons, ranging from armor-piercing bullets, night vision goggles and cables, to nuclear weapons and naval warships.
Time of India
2 hours ago
- Time of India
Inside Putin's India pivot: Why Russia is trying to woo New Delhi into alliance with China
As US President Donald Trump publicly lashes out at Vladimir Putin for dragging out the Ukraine war, Moscow is quietly retooling its Asia strategy putting India front and centre in hopes of countering growing Western influence. While Trump's frustration with Putin mounts, the Kremlin has ramped up arms deals and diplomatic outreach to New Delhi, aiming to revive the once-promising Russia-India-China (RIC) troika as a foil to the Quad. Trump's irritation with Putin has grown as the Kremlin delays a ceasefire. While Kyiv reportedly accepted Trump's earlier 30-day truce proposal, Russia refused, insisting on terms that would force Ukraine to surrender territory not even under Russian control. Trump has since offered to host peace talks, but Moscow's demands, including US recognition of Crimea, have drawn accusations from experts like former ambassador Michael McFaul, who called them 'poison pills' meant to derail diplomacy. This has forced Putin to rekindle old alliances as a means to 'fight, fight, fight' against the US influence. From arms deals to trilateral summits, Russia is intensifying efforts to woo New Delhi, hoping to revive the Russia-India-China (RIC) dialogue as a counterweight to Western influence. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No dark spots, 10 years younger! Just take this from Guardian URUHIME MOMOKO Learn More Undo 'India-Russia defence deals rubbed US the wrong way' The situation became more tricky for New Delhi when US secretary of commerce Howard Lutnick delivered a forthright assessment of recent tensions in the India-US relationship, pointing to certain Indian policies that 'rubbed the US the wrong way.' These include New Delhi's continued purchase of military equipment from Russia and its participation in the BRICS grouping, which Lutnick characterised as an attempt to 'not support the dollar and dollar hegemony. ' That's a way to kind of get under the skin of not really the way to make friends and influence people in America US Commerce Secretary Howard Lutnick 'That's not really the way to make friends and influence people in America,' Lutnick said, noting that President Trump 'calls that out directly,' and the Indian government is now 'addressing it specifically.' Despite such differences, Lutnick struck an optimistic tone, calling India's economy 'extraordinary' and praising its 'amazing' human capital and growth. He said both countries are working towards a trade agreement and that 'you should expect a the not too distant future.' Lavrov's India pitch Russian foreign minister Sergey Lavrov, speaking in Perm on Friday, revealed new efforts to woo India. He claimed Moscow was told India joined the Quad alliance, which includes the US, Australia and Japan, purely for economic cooperation. But Lavrov warned that the alliance is being militarised behind the scenes. 'In practice, other countries from the Quad are already trying, already insisting on organising naval and other military exercises,' Lavrov said. 'And I'm sure that our Indian friends can see this provocation clearly,' he said. Also read: 'US, other Quad countries trying to force India into military alliance rather than just trade,' claims Russia Lavrov's remarks came a day before US Defence Secretary Pete Hegseth's announcement that the US is deepening its military relationship with India. Hegseth cited joint exercises like Tiger Triumph and Towson Sabre as evidence of growing strategic coordination in the Indo-Pacific. He also pointed to the Indo-Pacific Logistics Network and the PIPER initiative as efforts to integrate the region's defence infrastructure. 'Rookies talk strategy, pros talk logistics,' Hegseth said, signalling the US goal of building a sustained and interconnected defence presence in Asia. He emphasised that Trump's foreign policy was 'grounded in common sense and national interest' and stressed that a resilient alliance of like-minded democracies remains America's greatest strength against Chinese ambitions. But for Russia, these moves are part of what Lavrov describes as a Western ploy to 'divide and conquer,' a phrase he says President Putin himself recently used. Lavrov warned that the rebranding of the Asia-Pacific into the 'Indo-Pacific' was designed to isolate China and undermine ASEAN. Rekindling older alliances Perhaps the most significant signal from Lavrov was Russia's renewed push for the revival of the Russia-India-China (RIC) trilateral dialogue. The forum, originally proposed by former Russian Prime Minister Yevgeny Primakov, has met over 20 times and served as a platform for cooperation in trade, finance, and foreign policy. 'Now that… an understanding has been reached between India and China on how to calm the situation on the border, it seems to me that the time has come to revive this RIC troika,' Lavrov said. He framed the grouping as a valuable mechanism that could balance out the influence of Western-led coalitions like the Quad. India's strategic tightrope However, India's position remains complex. For years, India has enjoyed a privileged status as one of Russia's largest arms importers. Moscow provided India with cutting-edge weaponry, sometimes even before it was deployed in the Russian military itself. From India's strategic viewpoint, the RIC format carries other risks. Beijing continues to occupy a key position in South Asia's strategic balance, primarily through its deepening alliance with Islamabad. India remains concerned that any trilateral cooperation would be undermined unless China reconsiders its longstanding military and nuclear support for Pakistan. Moreover, the RIC format's perceived anti-American leanings are another sticking point. With Indo-US relations having deepened under both Prime Minister Narendra Modi and President Trump, especially on defence and technology cooperation, New Delhi may find it increasingly difficult to align with Russia and China in ways that could appear contrary to its current trajectory. 'Wishful thinking by Russia' Professor Rajan Kumar, from the School of International Studies at Jawaharlal Nehru University while speaking with the , said that Russia's push for a revived RIC format may be 'wishful thinking by Russia, and it flies away in context of the real world and the current geo-political landscape.' He agreed, however, with Foreign Minister Lavrov's warning that the West seeks to 'divide and conquer' the India–China relationship. On whether the RIC would serve as a platform for direct mediation with China, Professor Kumar noted that 'though India and China are members of several international organisations, like the BRICS and SCO, a direct mediation with China is not possible. Particularly after the Ladakh incident in 2020, after which New Delhi's trust with Beijing has disappeared.' 'India maintains strategic autonomy' Asked whether India must align with either the US or Russia, he warned that 'given the current policies of the Trump administration, India cannot depend on the United States. As a consequence of the US president's policy the world has moved towards protectionism, and in the context of defence production this has ruled out the possibility of joint production of weapons.' He further noted India's longstanding tradition of strategic autonomy, adding, 'India has always maintained the policy of strategic autonomy, and it doesn't have the policy of involving other countries in its policy of China, and India sees China as a rival country. I believe in the coming time the tensions between New Delhi and Beijing are likely to escalate.' On whether Russia taking military equipment from China during its war with Ukraine would have impact on India's defence dealings with Russia, Professor Kumar observed: 'Yes, we do have a certain degree of dependence on Russian defence equipment, as was recently seen in the India-Pakistan war, with the successful use of S-400 on the defensive front and the BrahMos missile on the offensive. But yes, we are also trying to diversify our defence, with deals from Israel and France. ' India's balancing act Professor Rajan welcomed India's efforts to boost indigenous defence production, noting that 'one good thing is that India has also ramped up its own defence production and is moving towards becoming a major defence exporter; however, when compared to other countries its defence dealings are still minuscule.' Speaking on how India's close ties with Russia can be leveraged to question China's support for Pakistan, he explained that 'India has repeatedly voiced concerns about both China and Pakistan, especially regarding Islamabad's support for terrorist groups. Yet, India cannot dictate Russian foreign policy, as Moscow is grappling with its own geopolitical constraints. Since the full-scale invasion of Ukraine in February 2022, Russia has faced isolation and sanctions from the West, compelling it to deepen ties elsewhere. India, while strengthening ties with Western democracies, notably refrained from imposing sanctions on Russia and has abstained from UN resolutions condemning Moscow. This stance reflects India's effort to balance relations rather than fully aligning with Western positions. Concurrently, India participates in the Quadrilateral Security Dialogue (Quad) alongside the US, Australia, and Japan, a grouping often viewed as a strategic counterweight to China's influence.' What's the road ahead? India is poised to maintain its careful balancing act. In practice, New Delhi will likely deepen its defence ties with the US expanding logistics cooperation and joint exercises while continuing to source critical systems from Russia wherever gaps remain in its domestic industry. At the same time, India's focus on ramping up indigenous production and forging new partnerships with France and Israel suggests that Moscow's overtures, though acknowledged, will be weighed against broader economic and strategic interests. Whatever shape RIC might take, New Delhi's core priority will remain safeguarding its own strategic autonomy managing great-power competition without becoming dependent on any single capital.
Hans India
2 hours ago
- Hans India
Lee to hold 2nd meeting of emergency economic task force on Monday
President Lee Jae-myung will hold the second meeting of the emergency economic task force this week, his office said on Sunday, which is likely discuss an additional supplementary budget to boost the local economy. Lee is set to preside over the session with presidential aides, relevant authorities and working-level officials on Monday, with economic stimulus measures and details of the second supplementary budget expected to be high on the agenda, reports Yonhap news agency. Lee chaired the first meeting of the task force on his first day in office last week, during which he was briefed on the assessment of the local economy and potential effects of an extra budget. During his campaign, Lee pledged to introduce an additional extra budget of at least 30 trillion won (US$22.1 billion) to revitalise the sluggish economy. As the National Assembly approved a 13.8 trillion-won extra budget bill last month, the additional budget is expected to be at least 20 trillion won. Rep. Jin Sung-joon, policy chair of the ruling Democratic Party, said in a recent radio interview that the party is considering a supplementary budget worth 20-21 trillion won, noting 14 trillion won in spending, out of its initial proposal of 35 trillion won, was already confirmed in the first supplementary budget. Meanwhile, the finance ministry held a meeting last week to discuss drafting a second supplementary budget bill with an aim to boost the local economy, officials said, following President Lee Jae-myung's call for economic recovery efforts. The Ministry of Economy and Finance held the meeting earlier in the day as a follow-up measure to the emergency government task force (TF) meeting held the previous day to address economic challenges, according to the officials. In the TF meeting, Lee asked government officials detailed questions regarding the government's fiscal capacity for an extra budget and the immediate economic stimulus effects it would generate, according to presidential spokeswoman Kang Yu-jung. During his election campaign, Lee had vowed to introduce an additional extra budget of at least 30 trillion won (US$22.1 billion) to revitalize South Korea's sluggish economy and improve people's livelihoods.
