Market Summary

Asian markets are likely to open on a cautious note as ongoing tensions between the US and the EU keep investors on edge. GIFT Nifty is trading flat, suggesting a muted start for Indian equities. The rupee ended slightly weaker at 90.91 against the US dollar, compared to 90.87 in the previous session.

Key News & Events to Watch

Former US President Donald Trump plans to announce a Gaza “Board of Peace” at Davos, despite resistance from key allies, adding to global geopolitical uncertainty.

Japan’s 40-year government bond yield has touched 4% for the first time, as Prime Minister Takaichi hints at possible snap elections.

The Aditya Birla Group may see up to a 3% stake sale in Aditya Birla Lifestyle and Aditya Birla Fashion, which could impact stock movement.

India and the UAE have signed a food safety agreement aimed at boosting India’s food and agricultural exports.

Both countries will also explore cooperation in advanced nuclear technologies, including large and small nuclear reactors.

The RBI Governor met heads of selected urban cooperative banks and industry representatives in Mumbai on January 19 to review sector issues.

Paras Defence has entered the semiconductor space, announcing plans to set up a 3D chip packaging facility.

The IMF expects global economic growth to remain stable at 3.3% in 2026, with India projected to grow at a healthy 6.4% in FY27.

Market participants believe the RBI may need to inject more liquidity, as recent rate cuts and bond purchases have not yet eased high yields.

The upcoming Electricity Amendment Bill in Budget 2026 is expected to focus on reducing losses at power distribution companies (discoms).