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Business Standard
a day ago
- Business
- Business Standard
GIFT Nifty hints towards positive start; Trump announces 'massive' trade deal with Japan
GIFT Nifty: GIFT Nifty August 2025 futures were trading 37 points higher in early trade, suggesting a positive opening for the Nifty 50. Institutional Flows: Foreign portfolio investors (FPIs) sold shares worth Rs 3,548.92 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 5,239.77 crore in the Indian equity market on 22 July 2025, provisional data showed. Global Markets: Markets in Asian traded in the green, with Nikkei leading the gains, after President Donald Trump announced the signing of a "massive trade deal with Japan. The deal includes reciprocal tariffs of 15% on the countrys exports to the U.S., with auto duties reportedly being lowered to that level as well. Japanese Prime Minister Shigeru Ishiba reportedly said that he needed to examine the deal before commenting. Additionally, the news that Washington had reportedly achieved agreements with the Philippines and Indonesia encouraged investors, giving them hope that other nations may also reach arrangements to avoid the worst of the US president's levies. The announcements boosted hopes that other deals could be in the pipeline, though talks with the European Union and South Korea reportedly remain elusive for now. Equity markets have been rising in recent weeks on hope that countries will eventually sign trade deals with the US. This is despite the fact that there haven't been many agreements reached with Trump, despite the deadline of 01 August 2025. On Wall Steet, the Dow Jones Industrial Average and other indexes eased off the day's highs while the S&P 500 set another new high in the final minutes of trading Tuesday, as investors grinded though countless quarterly financial results. According to media reports, the S&P 500 companies are expected to report a 7% increase in earnings on average for the second quarter, with technology heavyweights driving much of that gain. Meanwhile, U.S. trade policy remains a major point of uncertainty for investors and companies as Trump's self-imposed 01 August deadline for many countries to reach agreements with the White House approaches. On Tuesday, GM tumbled after the automaker reported a $1 billion hit from tariffs to its quarterly results, adding more fuel to investor concerns about U.S. President Donald Trump's global trade policy. The recent rally in Wall Streets most valuable companies has been fueled by the optimism about heavy spending on artificial intelligence. Following the mixed economic data released last week, reports suggest that the market has trimmed its expectations about interest-rate cuts from the U.S. Federal Reserve at next week's policy meeting. The market now expects about a 60% chance of a reduction in rates at the September meeting. Domestic Market: Domestic equity benchmarks closed mostly flat today, registering slight losses as investor sentiment remained cautious. Market participants continued to grapple with uncertainty ahead of the August 1 deadline for a potential U.S. trade agreement. The Nifty index settled just below the 25,100 mark. All sectoral indices on the NSE ended in the red, with PSU banks and realty stocks experiencing notable declines. The S&P BSE Sensex declined 13.53 points or 0.02% to 82,186.61. The Nifty 50 index fell 29.80 points or 0.12% to 25,060.90.
Economic Times
a day ago
- Business
- Economic Times
Sensex jumps over 150 pts, Nifty tops 25,100 on strong global cues after US-Japan trade deal
Indian benchmark indices Sensex and Nifty50 opened higher, buoyed by gains in Asian markets following the U.S.-Japan trade deal. Investor sentiment improved, fueled by hopes of further trade agreements and upcoming U.S.-China talks. However, optimism regarding an interim India-U.S. trade deal is fading due to stalled negotiations. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Experts View Tired of too many ads? Remove Ads Global Market FII/DII Tracker Crude Oil Rupee vs Dollar Indian benchmark indices Sensex and Nifty50 opened higher on Wednesday, following gains in Asian markets after the United States announced a trade deal with Japan, raising hopes of more such 9:40 am, the BSE Sensex was up 160 points or 0.20% at 82,347, while the Nifty50 rose 45 points or 0.20% to 25, equities led the regional rally, while the MSCI Asia-Pacific index (excluding Japan) climbed 0.7%, reflecting improved investor sentiment following the trade to the optimism, U.S. and Chinese officials are scheduled to meet in Stockholm next week to discuss extending the August 12 deadline for a bilateral trade agreement, U.S. Treasury Secretary Scott Bessent global trade tensions is seen as a positive trigger for equities, as it reduces uncertainty over global growth and inflation—key concerns that have held the U.S. Federal Reserve back from further rate hopes of an interim trade deal between India and the U.S. ahead of Washington's August 1 deadline appear to be fading. Talks remain stalled over tariff reductions on agricultural and dairy products, Reuters reported, citing Indian government key movers, Tata Motors, Maruti Suzuki, Adani Ports, Eternal, and M&M opened with gains. On the other hand, Titan, SBI, HDFC Bank, and HUL started the session in the the sectoral front, the Nifty Realty index declined over 2%, dragged by Lodha and Oberoi Realty amid block deals in both counters. In contrast, Nifty Auto, Metal, Pharma, and Oil & Gas opened the broader market, the Nifty Midcap 100 slipped 0.3%, while the Nifty Smallcap 100 edged down 0.1%.Among individual stocks, Paytm surged 3.5% in early trade after the company swung to a profit in the June quarter, supported by strong growth in its lending business and effective cost control measures. The firm also said it expects further improvement in earnings going forward."The 11th new record high for 2025 set by S&P 500 yesterday is an indication of the direction and resilience of equity markets globally. Markets are climbing all walls of worries and valuation concerns have been put on the back burner. In the near-term, this resilience is likely to continue," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit."A significant takeaway from the early Q1 results is the improving prospects of banking and digital stocks. In banking the market will be choosy with focus on the high-quality private sector banks, particularly ICICI Bank and HDFC Bank. Q1 results of Eternal and Paytm indicate steady growth potential of the digital stocks, which have a long runway of growth. Investor interest in the digital segment will remain high despite the high valuations," Vijayakumar Vakil, Head of Prime Research at HDFC Securities, said, "Nifty's 5-day DEMA resistance, positioned at 25093, is the short-term resistance. The positional support of the 50-Day DEMA remains well intact at 24943. Looking ahead, 25255 could offer resistance in Nifty."Japanese shares surged to a one-year high on Wednesday as the country struck a trade deal with the United States that lowers tariffs on its autos, while also reviving hopes for an EU-US agreement that boosted European stock Donald Trump late on Tuesday said a trade deal with Tokyo will include Japan paying a lower 15% tariff on shipments to the U.S. It followed an agreement with the Philippines that will see the U.S. collect a 19% tariff rate on imports from 50 futures rose 1%, while Wall Street futures were up about 0.1%.Japan's Nikkei climbed over 3% as shares of automakers surged on news the deal would also lower the auto tariff to 15%, from a proposed 25%. Mazda Motor rallied 17% while Toyota Motor jumped 13.6%.Foreign Institutional Investors (FIIs) extended their selling streak for the second consecutive session, offloading equities worth Rs 3,548 crore. In contrast, Domestic Institutional Investors (DIIs) remained consistent buyers for the 12th straight day, investing Rs 5,239 crore into prices edged up in Asian trade on Wednesday after falling for three consecutive sessions as a U.S. trade deal with Japan signalled progress on tariffs, though gains were capped by fading hopes for a breakthrough at an EU-China crude futures rose 21 cents, or 0.31%, to $68.80 a barrel by 0351 GMT. U.S. West Texas Intermediate crude futures gained 17 cents, or 0.26%, at $65.48 per Indian rupee fell 8 paise to 86.46 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, rose 0.08% to 97.46 level.(With inputs from agencies)
Business Recorder
a day ago
- Business
- Business Recorder
India equity benchmarks set to track Asian peers higher after US-Japan deal
India's equity benchmarks are set to open higher on Wednesday, tracking gains in their Asian peers after the U.S. announced a trade deal with Japan, fuelling expectations of more to come. The uncertainty over India-U.S. interim trade deal ahead of President Donald Trump's August 1 deadline could limit gains in the Indian market. The Gift Nifty futures were trading at 25,164 points as of 8:08 a.m. IST, indicating that the Nifty 50 will open above Tuesday's close of 25,060.9. Japanese shares led the rally in Asian equities on Wednesday following the trade deal announcement. MSCI's broadest index for Asia-Pacific stocks outside Japan also advanced 0.7%. In another positive development, U.S. and Chinese officials will meet in Stockholm next week to discuss an extension to the August 12 deadline for negotiating a trade deal, Treasury Secretary Scott Bessent said. Easing global trade tensions is a positive for equities as it can reduce the uncertainty about global growth and inflation, which has kept the U.S. Federal Reserve from cutting interest rates. Meanwhile, the prospects of an interim trade deal between India and the U.S. before Washington's August 1 deadline have dimmed, with talks deadlocked over tariff cuts on key agricultural and dairy products, Reuters reported, citing two Indian government sources. In the absence of a trade deal, analysts expect market to remain stock-specific amid earnings season. Infosys, Dr Reddy's Laboratories and Tata Consumer Products are the Nifty 50 companies scheduled to release their earnings on Wednesday.
UPI
a day ago
- Business
- UPI
Powell calls for 'safe, sound' U.S. bank system as Bessent shows vague support
1 of 2 | U.S. Federal Reserve Chair Jerome Powell (pictured June 24 in the Rayburn House office building in Washington, D.C.) said Tuesday in the nation's capital at the Fed's integrated review conference on capital framework for large banks that federal banking regulators need to "make sure that our supervisory practices focus on the critical areas that determine safety and soundness." Photo by Annabelle Gordon/UPI. | License Photo July 22 (UPI) -- Federal Reserve Chair Jerome Powell spoke of a need to unify and maintain a "safe, sound and efficient" U.S. banking system within hours of Treasury Secretary Scott Bessent calling the embattled central bank chief a "good public servant" and suggesting Powell finish his term despite ongoing fire by the White House. Powell said Tuesday in Washington at the Fed's integrated review conference on capital framework for large banks that federal banking regulators need to "make sure that our supervisory practices focus on the critical areas that determine safety and soundness." "We need our large banks to be well capitalized and to manage their key risks well," Powell said in remarks to industry veterans, academics, and current and former policymakers. "And we need large banks to be free to compete with one another, with nonbank financial firms, and with banks in other jurisdictions to provide capital and support economic growth," he added. Powell, who has given no indication he plans to step down, has faced a barrage of open public criticism by U.S. President Donald Trump for the Fed's decision not to lower interest rates. For months, Powell and America's bank system leaders have been clear in their "wait-and-see" approach over the impact Trump's often-changing tariff policies will have on inflation and the U.S. economy before taking any further steps. Powell, who was nominated by Trump to his role, has said he will not influence decisions of the independent Federal Reserve Board of Governors. On Tuesday, the treasury secretary shared positive words on Powell and repeated a desire to see an "entire" review of the central bank's finances and operations. "I know Chair Powell. There's nothing that tells me that he should step down right now," Bessent said in a TV interview. "He's a good public servant." But Bessent shared vague support on if Powell should carry on in the job. "His term ends in May," he commented. "If he wants to see that through, I think he should. If he wants to leave early, I think he should." However, a noted business and academic leader disagreed with Bessent, admitting it "isn't the consensus view" and called on Powell to resign over fears of the central bank's autonomous status. "If Chair Powell's objective is to safeguard the Fed's operational autonomy (which I deem vital), then he should resign," Mohamed El-Erian, president of Britain-based Queens College, posted Tuesday on X. El-Erian warned of the "growing" and "broadening" events, he said, "playing out now" that threaten the independent U.S. Federal Reserve from political or other outside influence should Powell remain chair. He added his belief that "most" of the speculated candidates to replace Powell "would be able to calm any potential market jitters." Meanwhile, the rate-setting Federal Open Market Committee is slated to meet next week where it's expected again hold the line on interest rates again over Trump's tariff and inflation worries.
Yahoo
2 days ago
- Business
- Yahoo
Trump Media's $2B Bitcoin Buy Challenges Halving Cycle Wisdom of BTC Peaking in 2025
"Don't fight the Fed," a market adage says, warning investors from betting against the U.S. Federal Reserve. For crypto traders, it may be time for a new dictum: "Don't fight the President." On Monday, Trump Media and Technology Group, the social media company owned by President Donald Trump, disclosed a $2 billion investment in bitcoin (BTC), with the intention of acquiring more. The announcement calls for traders to reconsider the possibility of BTC remaining bid through the year-end, potentially invalidating the conventional wisdom that the bull market peaks a year after the halving. Halving cycle The Bitcoin blockchain implements reward halving every four years, reducing the amount of BTC paid to miners per block by 50%. The fourth halving, implemented in April last year, decreased rewards to 3.125 BTC. Since then, BTC's price has surged from roughly $65,000 to nearly $120,000. The bull market is in full swing, but here is the catch. Since its inception, bitcoin's price has tended to follow a predictable rhythm – a four-year cycle centered around halving. Notably, prices tend to surge after halving, peaking 12-18 months after the event and then slipping into a year-long bear market. Past bull runs peaked in December 2013, December 2017 and November 2021. In other words, if history is a guide, BTC's ongoing bull run could lose momentum before the year's end, paving the way for a prolonged bear market. This time may be different The notion that history must repeat itself in Bitcoin's cycles requires reassessment this time due to a key differentiator – the presence of a pro-crypto president. On one hand, the Trump-linked DJT is actively purchasing coins and adding bullish pressure in the market. On the other hand, the Trump administration is adding to the bullish market sentiment through favorable regulatory reforms, such as the recent GENIUS Stablecoin Act. Beyond traditional market cycles, Trump Media's multi-billion-dollar Bitcoin bet signals potentially significant bullish macro tailwinds. As pseudonymous observer EndGame Macro highlighted on X, "No one spends $2 billion on an ultra volatile asset unless they're betting on a shift in the entire liquidity regime." Given President Donald Trump's repeated public criticisms of Fed Chairman Jerome Powell and high interest rates, this high-profile bitcoin acquisition by the President-linked group likely suggests a clear strategic play: a bet on forthcoming rate cuts and a potential debasement of the U.S. dollar. Trump has repeatedly criticized the Fed and its Chairman Jerome Powell for keeping interest rates elevated at 4.25%, saying it's costing Americans billions of dollars. "If they didn't believe the Fed was going to pivot, either by force or design, then this would be reckless. Because if the Fed holds rates higher for longer and bitcoin corrects 40–60% in a deflationary flush, Trump Media would risk massive mark-to-market losses or even liquidation depending on how this position is structured," EndGame Macro noted. Fed rate cuts and potential debasement of the dollar could only add to the liquidity in the system, easing financial conditions for continued risk-taking in both traditional and crypto markets. Goldman expects three rate cuts this year Strategists at the investment banking giant Goldman Sachs expect the Fed to deliver three-quarter basis-point rate cuts, starting from the September meeting, according to InvestingLive. The expected easing cycle is contingent on inflation not flaring up again, Goldman noted, adding that the current trends point to a gradual but steady policy pivot to rate in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
