The Economic Times

Indian markets ended higher as buying in financials, IT and metals offset weakness in auto and FMCG stocks. Adani Enterprises, Axis Bank, BPCL and Apex Frozen Foods gained, while Asian Paints, auto stocks and Sula Vineyards declined.

Mahindra & Mahindra shares fell over 4%, erasing Rs 18,000 crore in value, as investors worried about tariff cuts for European cars under the India-EU trade deal. But analysts say the calibrated quota, mass-market exclusions, and phased EV access limit the competitive threat to Mahindras core SUV business.

Britain will cap ground rents at 250 pounds ($342) a year in an overhaul of its antiquated property system, Prime Minister Keir Starmer said on Tuesday, adding it would ease financial strain on millions of households.

The Indian rupee firmed slightly on Tuesday, helped along by a broadly weaker dollar and the boost from a landmark trade agreement between India and the European Union, which is expected to cut tariffs on nearly all Indian exports.

Vedanta said on Tuesday it has approved the sale of a 1.59% stake it held in Hindustan Zinc.

India has signed a landmark free trade agreement with the European Union, dubbed the mother of all deals by Prime Minister Narendra Modi, sparking a mixed market reaction. Textile stocks jumped up to 12% on export optimism, while automakers fell over 4% on fears of stiffer competition.

Indias benchmark indices closed higher as the India-EU mother of all deals lifted sentiment. Sensex gained 320 points to 81,857, Nifty50 rose 127 points to 25,175. Gold surged near record highs, crude eased, and the rupee strengthened to 91.72 per dollar amid positive trade cues and global market optimism.

Gold prices have surged to record highs, with weekly RSI at 86 highlighting strong momentum. Technical indicators suggest a bullish trend intact, though short-term consolidation is possible. Experts recommend buying on dips, citing strong support levels and sustained upside potential.

Raymond Real Estate Ltd on Tuesday reported a sharp jump in its consolidated net profit to Rs 66.79 crore for the third quarter of this fiscal.

The US Dollar has remained weak against the Pound Sterling and Euro, although it has shown some selective strength against the Japanese Yen. Against the Chinese Yuan, the depreciation has been more pronounced, signalling continued pressure in the Asian currency complex.

European equities climbed on Tuesday, supported by a raft of positive corporate updates that eased investors' concerns over recent trade tensions, while shares of Puma soared 19% after the sportswear maker sold a stake to China's Anta Sports.

Asian Paints shares slid 5% after the company reported a nearly 5% year-on-year decline in Q3 consolidated net profit. Despite modest revenue growth, margin expansion and improved sequential profitability, investor sentiment weakened following the earnings announcement.

Japan's Nikkei share average ended higher on Tuesday, as technology stocks extended their advance after the yen lost some gains.

Larsen & Toubro is set for a strong December quarter, with brokerages forecasting 2035% profit growth, double-digit revenue and EBITDA gains, improving margins, and a robust order book driven by steady execution and operating leverage across infrastructure and hydrocarbons segments.

Indian liquor stocks like Sula Vineyards, Radico Khaitan, United Spirits, Globus Spirits saw significant selling pressure as a new India-EU trade pact allows European wines to enter India at lower duties. While Indian wines will also gain market access in the EU, the immediate impact is increased competition for domestic producers.

Realty firm WeWork India on Tuesday reported a consolidated net profit of Rs 16.78 crore in the third quarter of this fiscal year on higher revenue.

Asian Paints announced its third quarter results for FY26. The company's net profit saw a slight decrease of 4.5 percent compared to the previous year. However, its revenue from operations showed positive growth. This indicates a mixed financial performance for the paint giant during the period.

Indian equity markets remain under pressure amid global risk-off sentiment, AI-led rotations and muted earnings growth, says ICICI Prudential AMCs Anand Shah. He explains why 2026 will be a stock-pickers market, highlights preferred sectors like financials and metals, and outlines why valuation discipline and asset allocation are crucial for investors.

Realty major DLF Ltd is yet to recognise over Rs 55,000 crore revenue in its financial accounts from the total sales bookings done till December quarter of this fiscal.

India's Raymond reported a 78% rise in quarterly profit on Tuesday, supported by robust demand for its aero and defense components.

Japanese government bond yields rose on Tuesday as the market continued to bet on an early interest rate hike from the Bank of Japan even as the yen gained ground in recent sessions.

The world's largest oil company, Saudi Aramco, has launched a $4-billion four-tranche bond, drawing robust demand from investors for its first foray into global debt markets this year.

Amid market volatility and corrections, investors are debating whether to favour largecaps or riskier mid- and small-caps. Gurmeet Chadha advises taking a medium- to long-term view and focusing on accumulating fundamentally strong companies, irrespective of their market size.

Tata Consumer Products Q3 Results: Tata Consumer Products reported a robust 38% year-on-year increase in net profit for the December quarter, reaching Rs 385 crore. Revenue from operations also saw a significant 15% jump to Rs 5,112 crore, driven by strong volume growth across its India Branded business, including notable performance in coffee and the Tata Sampann portfolio.

The U.S. dollar is facing renewed pressure in early 2026 due to a confluence of factors, including Washington's desire for a weaker currency and President Trump's unpredictable policies. This has led investors to reassess their optimistic outlook, with the dollar experiencing a significant slide against major currencies.

Eternal's stock faces pressure due to leadership changes, overshadowing optimism in quick commerce. Market expert Sandip Sabharwal likens the situation to past leadership transitions that impacted valuations. He believes the stock remains fundamentally expensive, with the CEO's potential distraction being the primary driver of the correction.

Indias landmark FTA with the European Union, dubbed the mother of all deals, is reshaping investor focus as tariff cuts and regulatory easing promise a structural export boost. Textiles, pharmaceuticals and specialty chemicals are the biggest near-term winners, while shrimp exporters, auto ancillaries and jewellery retailers offer secondary plays. Automakers and Sula Vineyards face near-term pressure.

Axis Securities expects a weak Nifty trend this week and recommends buying APL Apollo while advising sells on IEX and Hero MotoCorp based on bearish technical signals.

As global markets outperform India, diversification is gaining urgency. Subho Moulik explains why a 70:30 India global portfolio improves risk adjusted returns, reduces concentration risk, and provides access to long term global growth themes such as AI, defence, and quantum computing.

Sahi introduces a new trading platform for Indian traders. It features in-house charts built for speed and responsiveness. This platform aims to eliminate delays in options trading. Traders can execute orders and manage trades directly from charts. Sahi's Scalper 2.0 offers faster charts and seamless navigation. It provides a focused trading desk for quick decision-making.

OneSource Specialty Pharma shares plunged 18% after reporting a net loss of Rs 47 crore for the December quarter, a significant reversal from the previous year's profit. Revenue dropped 26% year-on-year, impacted by delayed semaglutide approvals in Canada. Despite the weak quarter, the company reaffirmed its FY28 revenue guidance.

Maruti Suzuki is expected to deliver a strong Q3 performance, driven by robust volumes, an improved product mix and operating leverage. Brokerages forecast a 2435% surge in net profit and over 30% revenue growth, though margin trends may vary. The automaker will announce its OctoberDecember earnings on January 28.

Indian equity markets are experiencing foreign investor outflows, driven by global asset reallocation rather than weak fundamentals. Market expert Sandip Sabharwal suggests this trend is temporary, with underlying corporate performance showing stability and even improvement, creating buying opportunities in select stocks.

Bharat Petroleum Corporation Limited shares surged following a significant 98% rise in December quarter net profit. The company announced a Rs 10 per share interim dividend for FY26. Improved refining margins and a stronger balance sheet contributed to the positive outlook. Analysts maintain a buy rating with a potential upside.

The crypto market is stabilizing after a volatile week. Bitcoin is trading near $88,300, showing a rebound. Investors are cautious ahead of the US Federal Reserve's policy meeting. Major altcoins are also seeing gains. Global crypto market capitalization has risen. The market is focused on big-tech earnings and the Fed's update. This consolidation reflects waiting for clarity on monetary policy.

Global markets remain resilient despite tariff threats and Fed uncertainty, says Port Shelter Investments Richard Harris. US equities are supported by strong economic data, while investors increasingly discount aggressive trade rhetoric. With central banks in focus, markets favour equities over bonds but are also hedging through gold and other commodities amid lingering geopolitical and policy risks.

Adani group shares rebounded up to 5% after a significant sell-off, following news of Adani executives' willingness to negotiate with the US SEC regarding summons. Lawyers are discussing an agreement to resolve service of process, with the SEC seeking court permission for direct email delivery after India rejected official requests.

IndusInd Bank reported a sharp year on year profit decline in Q3FY26, broadly in line with estimates. Brokerages offered mixed views, with ratings ranging from Outperform to Reduce, citing elevated stress, muted growth and a gradual recovery outlook.

India's foreign investment landscape has seen net outflows recently, despite strong market returns. To counter this, Budget 2026 is urged to offer competitive tax rates on long-term investments for both FPIs and FDIs. Lowering taxes on capital gains and dividends, along with making debt markets more attractive, could stabilize inflows and boost reserves.

Jefferies has cut its price target on Paytm to Rs 1,450 after removing PIDF incentives from estimates, trimming EBITDA forecasts for FY27 and FY28. Despite the downgrade, the brokerage maintained its Buy rating, citing strong core business traction.

Auto stocks fell sharply as investors reacted to reports that the India EU free trade agreement could significantly lower import tariffs on European cars. Concerns over increased competition weighed on shares of Mahindra, Tata Motors, Hyundai and Maruti Suzuki.

President Trump's $5 billion lawsuit against JPMorgan Chase over alleged politically motivated account closures highlights the complex interplay between his administration's policies and the financial sector. While banks benefit from deregulation, they face uncertainty from proposed caps on credit card interest. Increased lobbying and cautious strategies are emerging as institutions navigate these challenges and opportunities.

Vodafone Idea is expected to report a weak December-quarter showing, with revenue growth remaining muted and losses widening as modest ARPU gains are offset by continued subscriber erosion. An average of five brokerages forecasts revenue growth of about 1% YoY in Q3, while losses are seen expanding to around Rs 6,700-7,000 crore.

Geojit Financial Services' Gaurang Shah sees a mixed earnings season for banks, with some near-term challenges but long-term opportunities. Despite weaker results from IndusInd Bank, Shah remains positive on the BFSI sector's overall loan growth and outlook for the upcoming financial year, recommending several private and public sector banks, as well as NBFCs.

Adani Green Energy shares rebounded 6% as investors bought the dip after a sharp sell-off triggered by regulatory concerns and weak Q3 results. Sentiment improved following company clarification and updates on capacity additions.

The US dollar is under fresh pressure in early 2026 as investors reassess its strength amid shifting US policies, geopolitical risks and central bank moves. Signals that Washington may prefer a weaker currency have added to the strain.

Hindustan Zinc shares surged to a fresh 52-week high of Rs 731, driven by a sharp rally in silver prices which crossed $100 per troy ounce. The company, a leading global silver producer, saw its stock climb as analysts like HSBC upgraded it to 'Buy' with an increased target price, citing strong fundamentals and a positive outlook for metal prices.