Equity Alert
AU Small Fin Bank up 3% after Oct-Dec PAT rises 26% on year
This story was originally published at 13:15 IST on 21 January 2026
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Equity Alert: AU Small Fin Bank up 3?ter Oct-Dec PAT rises 26% on year
MUMBAI--1258 IST--Shares of AU Small Finance Bank rose nearly 3% to a high of INR 1,027.45 after the lender reported a 26% on-year rise in its net profit for the December quarter. At 1255 IST, shares of the company were nearly 1% higher on the NSE at INR 1,010.30. Over 4 million shares of the company were traded as of the same time Wednesday, over four times the number of shares traded till the same time Tuesday.
AU Small Finance Bank reported a net profit of INR 6.68 billion for Oct-Dec, up over 26% on year and over 19% sequentially. The lender missed the Street's view of INR 6.89 billion marginally. A 34% on-year fall in provisions at INR 3.31 billion aided the top line of the bank. AU Small Finance Bank's total income for the December quarter was INR 54.51 billion, up over 15% from the year-ago quarter. The net interest margin of the bank rose 20 basis points sequentially to 5.7% for the reporting quarter.
AU Small Finance Bank's performance in the December quarter was below expectations across parameters, according to Nirmal Bang Institutional Equities. The brokerages said that net interest income, pre-provision operating profit, and profit after tax were below estimates. Net advances of the bank rose 24% on year and 6.7% on quarter to INR 1.2 trillion, which was much higher than industry growth of 14.5% during the same period, Nirmal Bang said. The brokerage cut the target price on the stock to INR 1,012 from INR 1,017 and maintained a 'hold' call on the stock.
While some broking firms retained their respective target prices for AU Small Finance Bank post the December quarter earnings, Nuvama Institutional Equities increased the lender's target price by a quarter percentage. Brokerages believe that the bank's net interest margin was the best in the sector so far. (Adhithya Aji)
Equity Alert: CreditAccess up 12%; co posts net profit in Q3 vs loss yr ago
MUMBAI--1217 IST--Shares of Creditaccess Grameen rose nearly 12% to a high of INR 1,388.40 after the company reported a net profit of INR 2.52 billion in the December quarter against a loss of INR 995.20 million in the year-ago quarter. The non-banking finance company's bottom line doubled from INR 1.26 billion reported in the September quarter and beat Street's estimates of INR 2.26 billion. The company's impairment fell over 54% on year to INR 3.43 billion. The company's top line rose nearly 8% on year but fell over 1% on quarter to INR 14.90 billion. The company's net interest margins rose 60 basis points sequentially and 140 bps from the year-ago quarter to 13.9% .
The company reported a rise in its net profit due to a sharp decline in credit costs to around 5.6%, according to JM Financial. The improvement of around 310 bps in credit cost was driven by a lower accretion rate of its portfolio at risk and reduction in write-offs to 3.9% from 10.5% in the September quarer. The improvement came despite the increase in the company's early credit loss provisioning rate, the brokerage said. The company reported a strong sequential recovery on the back of margin expansion and lower credit costs, according to ICICI Direct. Assets under management of the company rose 2.6% on quarter and 7.1% on year, led by a 13.4% on-year rise in disbursements to INR 57.67 billion. The management said improvement in the asset quality is evident across geographies as Karnataka also reverted to its normalised levels, according to a report from Motilal Oswal Financial Services. The disbursements of the company were led by a 30% sequential growth in its retail finance, which offset the decline in its micro-finance loans, JM Financial said.
The management expects steady improvement in its asset quality with its early bucket collection efficiency improving across states, but still guided for a credit cost of 4.0-4.5% in 2026-27 (Apr-Mar) due to the impact of early credit loss rate provisions. However, this is expected to be offset by better margins and lower operating expenditure, leading to a steady improvement in return on assets from 1.9% in 2024-25 (Apr-Mar) to 2.7% in FY26 and 4.3% and 5.0% in FY27 and FY28, respectively, according to a report from Emkay Global Financial Services. The brokerage has upgraded the stock to 'buy' from its previous recommendation of 'add' and maintained its target price of INR 1,550. Similarly, JM Financial has upgraded the stock to 'buy' from its previous 'add' recommendation and maintained its target price of INR 1,530. Brokerage Motilal Oswal maintained its 'buy' rating on the stock with a target price of INR 1,580.
At 1217 IST, shares of CreditAccess Grameen were nearly 11% higher at INR 1,378.60 on the NSE. Nearly 10 million shares of the company have been traded on the bourse so far during the session, nearly 98 times higher than the number of shares traded till the same time Tuesday. Of the 7 brokerage reports on the company available with Informist, six have a 'buy' recommendation with an average target price of INR 1,551 and one has a 'hold' recommendation on the stock. (Akshat Saksena)
Equity Alert: Indices off lows as select heavyweights trim intraday losses
MUMBAI--1212 IST--Benchmark indices were off lows, as index heavyweights erasing erased a portion of the day's losses, and as a handful of stocks joined ranks with advancing Nifty 50 companies. While selling pressure was persistent across sectors, a few metal and public sector enterprises were able to move against the market's downward direction. Market volatility remained heightened throughout the session and India VIX, the market's fear gauge, jumped nearly 10% to a near seven-month high of 14.43 points.
At 1205 IST, the Nifty 50 was at 25122.60 points, down 109.90 points or 0.4%. The 50-stock index has erased over 200 points from its intraday lows. The BSE Sensex was at 81765.18 points, down 415.29 points or 0.5%. Shares of Eternal were up 2% and Tata Consultancy Services traded higher after a slight decline; these two stocks were the biggest support to the Nifty 50. Larsen & Toubro, Bharat Electronics, and Trent were down 2-3?ch and were the worst hit Nifty 50 stocks. Index heavyweights HDFC Bank and ICICI Bank were down 0.4% and almost 2%, respectively, but were able to erase some losses from earlier in the session. The same was seen in the case of Reliance Industries, which was trading 0.3?low Tuesday's closing level.
All sectoral indices were in the red and the Nifty Consumer Durable index remained the worst hit among them, down 2%. Amber Enterprises India, PG Electroplast, and Havells India were among the worst performing constituents of this index and were down 2–3%.
Among Nifty 200 companies, Bharti Hexacom and Gail (India) were the best performing, up 2?ch, while Kalyan Jewellers India was down almost 12% and was the worst hit in the 200-stock index. (Eshitva Prakash)
Equity Alert: Eternal up, Dr Reddy's down ahead of Oct-Dec results
MUMBAI--1122 IST--Shares of Dr. Reddy's Laboratories retreated from highs and those of Eternal were trading slightly higher ahead of their December quarter earnings, due later in the day. Shares of Eternal rose 3% to a high of INR 277.30. Dr. Reddy's was over 1% lower at an over eight-month low of INR 1,151.
Dr. Reddy's is expected to post a sharp fall in its consolidated net profit for the December quarter due to fading contribution from sales of the generic cancer drug Revlimid in the US, coupled with pricing pressure in its base business. The company is likely to report a 19% on-year fall in its consolidated net profit at INR 11.4 billion. The pharmaceutical major's revenue for the latest quarter is seen flat on year at INR 83.8 billion. On a quarter-on-quarter basis, the company's net profit is expected to fall 15% and revenue 5%.
At 1041 IST, shares of Dr. Reddy's were trading 1% lower on NSE at INR 1,154.30. So far, over 1 million shares of the company have changed hands on the exchange, lower than over 490,000 shares traded till the same time Tuesday.
Of the 11 brokerage recommendations available with Informist on Dr. Reddy's, six have a 'buy' recommendation with an average target price of INR 1,518. Four have a 'hold' recommendation with an average target price of INR 1,255 and the remaining one has a 'sell' recommendation.
Meanwhile, Eternal is expected to post a 32% on-year rise in its consolidated net profit for the December quarter at INR 780.89 million. This would mean a rise of 20% on quarter. Rapid expansion in the company's quick commerce business-to-consumer platform Blinkit is likely to support the bottom line growth of the consumer-technology firm in the latest quarter. The company's consolidated revenue for the reporting quarter is expected to rise three-fold on year to INR 162.27 billion.
At 1044 IST, shares of Eternal were trading 0.2% higher at INR 270.25 on NSE. So far, nearly 18 million shares of the company have changed hands on the exchange, lower than over 24 million shares traded till the same time Tuesday.
Of the nine brokerage recommendations available with Informist on Eternal, seven have a 'buy' recommendation with an average target price of INR 390.29, while the remaining two have a 'sell' recommendation on the stock. (Arundathi A R)
Equity Alert: Nifty 50 extends slide on rupee weakness, US-EU trade jitters
MUMBAI--1120 IST--Benchmark indices fell more, and broader markets saw a deeper cut. Stocks are facing selling pressure amid a tariff overhang on investor sentiment and a fall in the rupee against the dollar, analysts said. The Nifty 50 is now seeing a trend reversal, with a downtrend emerging on technical charts, Jatin Gedia, vice president of technical research at Teji Mandi Investment Technologies, said. The analyst expects the 50-stock index to fall to 24800 levels in the near term, and sees a sharper intraday pull-back.
At 1106 IST, the Nifty 50 was at 249787.10 points, down 245.40 points or 1%. The BSE Sensex was at 81313.53 points, down 866.94 points, or 1%. The Nifty 50's support is now placed at 24800 level, Gedia said. Only a handful of stocks were in the green and all sectoral indices moved lower. Shares of Trent hit a 52-week low and were trading over 3% lower. Apollo Hospitals Enterprise and Bharat Electronics were also among the worst hit, down over 2?ch. Index heavyweights such as ICICI Bank and HDFC Bank fell over 1% and 2%, respectively, deepening the 50-stock index's fall. Meanwhile, Eternal, Power Grid Corp. of India, and Tata Motors Passenger Vehicles were off their intraday highs.
All small-cap and mid-cap indices fell more than their benchmark peers. Angel One, Affle 3i, and Aegis Logistics were the worst hit small-cap stocks and were down 3-4%.
The rupee fell sharply to a record low of 91.4425 against the dollar as risk appetite among investors was dented amid the ongoing US-Europe trade tensions, according to dealers. A sell-off in Japanese bonds owing to fiscal concerns also dampened risk sentiment, dealers said.
Globally, equity markets saw selling pressure in stocks as trade tensions between the US and the European Union fuelled concerns of a transatlantic trade war. In the latest development, the European Parliament could be planning to suspend approval of the US trade deal agreed in July, BBC reported. The suspension is set to be announced in Strasbourg, France on Wednesday, according to the report. US President Donald Trump has ramped up efforts to acquire Greenland and threatened new tariffs over the issue. (Eshitva Prakash)
Equity Alert: Persistent Systems down 5?ter co's Q3 PAT falls 7% QoQ
MUMBAI--1045 IST--Shares of Persistent Systems fell nearly 5% to a one-month low of INR 6,048 after the company reported a nearly 7% sequential fall in its December quarter consolidated net profit to INR 4.39 billion. The bottom line was impacted by a one-time cost of INR 890.25 million pertaining to the implementaion of the new labor codes. This was the first time in six quarters that the company posted a sequential decline in its net profit.
At 1028 IST, shares of the company traded nearly 4% lower at INR 6,114. Over 1.2 million shares of the company changed hands so far in the session, which is seven times higher than the number of shares traded till same time Tuesday. The stock is down for the second straight session.
However, brokerages are positive on the company post announcement of its December quarter earnings. The company reported a better than-expected operating performance in the reporting quarter. "The ongoing investments in AI, cloud, and digital transformation services reinforce Persistent's competitive edge in the IT services space," Nirmal Bang said. The brokerage is optimistic about the information technology company's growth trajectory given its consistently robust financial performance, strong deal wins, pricing premium over peers, and strategic focus on artificial intelligence and platform driven services. Nirmal Bang raised the target price on the stock to INR 7,287 from INR 6,711, an upside of nearly 9%.
JM Financial said that the deal momentum of the company remained strong. The total contract value rose 13.5% on year and the annual contract value rose 17.2% on year. The brokerage estimates the revenue in constant currency terms to improve by 19 to 40 basis points over 2025-26 (Apr-Mar) to FY28. This is on the back of strong growth and deal wins. For the December quarter, the company reported a 4.1% on-quarter growth in the consolidated revenue in constant currency terms. The brokerage maintained a 'buy' recommendation on the stock and raised the target price to INR 7,600 from INR 7,280. This is an upside of 4.4%.
Of the 14 brokerage reports available on the company, eight have a 'buy' recommendation on the stock with an average target price of INR 7,188 and four have a 'hold' recommendation with an average target price of INR 5,436. The remaining two have a 'sell' call on the stock. (Adhithya Aji)
Equity Alert: Amagi Media Labs lists at INR 318, 11% discount to issue price
MUMBAI--1017 IST--Shares of Amagi Media Labs listed at INR 318 on the National Stock Exchange, a discount of 11% to the issue price of INR 361 per share. At 1003 IST, the stock was down nearly 4% at INR 347.90.
The company's initial public offering, which closed Friday, was subscribed over 30 times with bids for 824.01 million shares against 27.27 million on offer. Of the net proceeds from the issue, the company plans to utilise INR 6.67 billion for investment in technology and cloud infrastructure. The remaining amount will be used to fund inorganic growth through unidentified acquisitions and for general corporate purposes.
The Bengaluru-based company's platform provides streaming services to content providers and distributors through smart televisions, smart phones, and applications rather than the traditional cable or set-top box services. It also helps to monetise the content by providing targeted advertising services. For the six months ended Sept. 30, Amagi Media had, on a consolidated basis, reported a net profit of INR 64.70 million on a revenue of INR 7.05 billion. (Gopika Balasubramanium)
Equity Alert: Oracle Financial down 3% ahead of Dec quarter earnings
MUMBAI–-1022 IST--Shares of Oracle Financial Services Software fell 3% ahead of the company's December quarter earnings, scheduled to be announced later in the day. After reporting a sequential fall in the trailing quarter, the information technology solutions provider is expected to see a recovery in both its top line and bottom line for the quarter.
The company's consolidated net profit for the reporting quarter is expected to jump around 20% sequentially to INR 6.54 billion, according to Dolat Capital Market Pvt. Ltd. On a year-on-year basis, this would translate to a near 21% rise. If the expectation comes true, this will be the highest sequential rise in the company's bottom line in eight quarters.
The top line of the company, which is a subsidiary of US-based Oracle Corp., is expected to rise over 7% sequentially and around 12% on year to INR 19.18 billion, the brokerage said. It expects this to be supported by strong growth in licence revenue post a soft September quarter, which was impacted by delayed deals.
The company's operating margin for the reporting quarter is expected to expand 286 basis points sequentially, supported by "better traction and wage normalisation," Dolat Capital said.
For the September quarter, the company had reported a consolidated net profit INR 5.46 billion, down 15% sequentially and over 5% on year. Its revenue for the quarter fell 3% sequentially but rose nearly 7% on year to INR 17.89 billion. For the six months ended September, the company had reported an operating margin of 43%.
At 1019 IST, the stock was down 2.3% at INR 7,648. Dolat Capital has an 'accumulate' recommendation on the stock with a target price of INR 10,280, indicating a 34% upside from the current market price. (Arya S. Biju)
Equity Alert: Indices dn as heavyweight bks fall; metal, pharma cos off highs
MUMBAI--1018 IST--Domestic benchmark indices fell in early trade Wednesday, extending losses for the third consecutive session as heavyweight banks and information technology companies fell further. Metal and pharmaceutical stocks were off their highs and stocks of companies involved in retail and production of precious metals reacted meaningfully to a surge in the prices of these metals.
At 1013 IST, the Nifty 50 was at 25172.20 points, down 60.30 points or 0.2%. The BSE Sensex was at 81943.57 points, down 236.90 points or 0.3%. Trent was the worst hit Nifty 50 stock and was down 2%. In contrast, Power Grid Corp. of India and Tata Motors Passenger Vehicles rose over 1?ch and were the biggest gainers in the 50-stock index. Index heavyweights ICICI Bank and HDFC Bank, which fell nearly 2% and 1%, respectively, were the biggest drag on the Nifty 50. Metal and pharmaceutical companies were mostly off their highs. JSW Steel, Hindalco Industries, Sun Pharmaceutical Industries, and Dr. Reddys Laboratories were up 0.2–1%.
Shares of Kalyan Jewellers were hit the hardest in the Nifty 200 index. The jewellery retailer shed almost 8%. Futures contracts of gold and silver hit fresh all-time highs on the Multi Commodity Exchange on Wednesday for the third consecutive day. The most-active February gold contract on the MCX hit a new record high of INR 157,400 per 10 grams. Prices of the precious metals soared on the back of safe-haven demand as tensions between the US and the European Union showed no signs of dissipation. Several European countries reacted negatively to US President Donald Trump's consistent push for acquiring Greenland, which persisted after his threat over the weekend. Hindustan Zinc, which is involved in production of silver, rose 2%.
Most sectoral indices were in the red, with the Nifty Consumer Durables index falling 1.5% and the Nifty IT index down 1%. The Nifty Metal and the Nifty Pharma index held onto thin gains. (Eshitva Prakash)
Equity Alert: Indices open flat; Nifty 50 swings between gains and losses
MUMBAI--0945 IST--Benchmark equity indices opened flat Wednesday and swung between gains and losses in early trade. Select pharmaceutical and metal stocks supported the Nifty 50, but a decline in heavyweight banks capped the 50-stock index's upside. Stock-specific movement was strong following their December quarter earnings. Market volatility continued to spike for the fifth consecutive session, with the fear guage India VIX rising almost 3%.
At 0940 IST, the Nifty 50 was at 25214.20 points, down 18.30 points or 0.1%. The BSE Sensex was at 82056.20 points, down 124.27 points or 0.2%. E-commerce giant Eternal saw the sharpest rise among Nifty 50 constituents and was up nearly 2?fore its December quarter earnings due later in the day. A rapid expansion in the company's quick commerce business-to-consumer platform Blinkit is expected to support the net profit growth of the company in the December quarter, according to brokerages. Dr. Reddy's Laboratories was also up nearly 1% ahead of its earnings. The company is expected to report a sharply lower net profit growth due to fading contribution from sales of the generic cancer drug Revlimid in the US, coupled with pricing pressure in its base business, according to analysts. Shares of other healthcare related stocks such as Cipla, Sun Pharmaceutical Industries, and Max Healthcare Institute were also higher.
Index heavyweights moved between gains and losses in the opening minutes of trading. A 1.5?ll in shares of ICICI Bank was the biggest drag on the 50-stock index. HDFC Bank and Infosys also traded lower. Meanwhile, gains in metal companies supported the Nifty 50, with shares of JSW Steel, Hindalco Industries, and Tata Steel trading around 1% higher each. The Nifty Metal index and the Nifty Pharma index were the best performing sectoral indices, while the Nifty IT index was the worst performer, falling over 1%.
Among other stocks, shares of CreditAccess Grameen jumped 10% after the company reported a net profit in the December quarter, as opposed to a net loss in the year-ago quarter. Meanwhile, shares of SRF fell nearly 5% and was among the worst-hit stocks on the Nifty 200. The company's management said Tuesday that pricing pressure remains an issue in the specialty chemicals segment. (Eshitva Prakash)
Equity Alert: Nuvama ups Persistent Systems target price 10%, maintains 'buy'
MUMBAI--0858 IST--Nuvama Institutional Equities has raised the target price on Persistent Systems by 10% to INR 7,700 from INR 7,000. The brokerage maintained a 'buy' recommendation on the stock of the information technology company. The company delivered a solid performance for the December quarter with margin expansion aided by artificial intelligence-led platform sales, Nuvama said.
The company reported a consolidated net profit of INR 4.39 billion for Oct-Dec, down 7% sequentially but up almost 18% on year. The bottom line was dragged down by a one-time cost of INR 890.25 million due to the impact of the new labour codes. The company's consolidated revenue from operations in Oct-Dec rose nearly 6% sequentially and over 23% on year to INR 37.78 billion.
The brokerage expects Persistent Systems to lead the growth as well as the AI-led transformation opportunity in the industry. Nuvama has upgraded the earnings-per-share estimate of the company by 5% for 2025-26 (Apr-Mar) and 1.5% for FY27. This is due to slightly higher margin expectations. The revenue of the company was up 4.1% on quarter in constant currency terms. "Healthcare logged strong transformation demand with new wins across payer, provider and pharma clients," Nuvama said. The segment reported 6.4% sequential growth in revenue at INR 9.6 billion for the December quarter.
The company continues to deliver industry-leading growth, according to Nuvama. "All along, its margin trajectory has kept improving and cash flows have remained robust," the brokerage said.
The company reported its December quarter results post market hours Tuesday. Shares of the company ended over 1% lower at INR 6,342.50 on the National Stock Exchange on Tuesday. (Adhithya Aji)
Equity Alert: Indices seen opening flat Wed, to fall more on tariff worries
MUMBAI--0840 IST--Domestic benchmark indices are expected to open flat Wednesday after falling sharply in the previous session. Analysts see further fall in the market amid trade tensions between the US and European Union. The ongoing December quarter earnings and the Union Budget for 2026–27 (Apr-Mar), which will be presented on Feb. 1, will be closely watched. Investors are likely to take cues from these two major events, even if geopolitical concerns continue to be an overhang. Dr. Reddy's Laboratories and Eternal will announce their December quarter earnings later in the day.
GIFT Nifty contracts suggest that the Nifty 50 index will be largely be flat on Wednesday. At 0835 IST, the GIFT Nifty's January contract was at 25275.50 points, 43 points higher than the Nifty 50's close of 25232.50 points on Tuesday. The BSE Sensex closed at 82180.47 points on Tuesday, down over 1000 points or 1.3%. The Nifty 50 is expected to find support at 25160 points and face resistance at 25500–25550 points, Nandish Shah, senior derivative analyst at HDFC Securities, said. "The overall trend remains weak," he said.
On the earnings front, Persistent Systems Tuesday posted a 7% sequential fall in its consolidated net profit, but a rise of 18% on year to INR 4.39 billion. The company's consolidated revenue from operations in Oct-Dec rose nearly 6% sequentially and over 23% on year to INR 37.78 billion. Emkay Global Financial Services retained its 'add' recommendation on the company with a target price of INR 6,700, while Nuvama Institutional Equities has a 'buy' call on the stock, with an increase of 10% in its target price at INR 7,700.
US indices closed lower Tuesday, with the S&P 500 and the Nasdaq Composite closing over 2% lower. All three major indices closed with their steepest one-day declines in three months, after a broad selloff amid concerns about new tariff threats by Trump against Europe, which could signal renewed market volatility, Reuters reported. Furthermore, the US Supreme Court issued three decisions on Tuesday but did not decide upon the legality of President Donald Trump's global tariff impositions upon its trading partners and others. Asian indices were mixed in early trade with China's CSI 300 index gaining the most, while Japan's Topix fell over 1%, to be the worst hit. (Arundathi A R)
Equity Alert: Asian indices dn barring CSI 300, Hang Seng; fears on US-Europe
MUMBAI--0819 IST--Most equity indices in Asia were down Wednesday, in line with losses on Wall Street. Investors in the region continue to grapple with tensions between the US and European countries over the former's desire to acquire the mineral-rich island of Greenland, which is an autonomous part of Denmark.
US President Donald Trump announced escalating tariffs against eight North Atlantic Treaty Organization members begining at 10% on Feb. 1 and then rising to 25% on Jun. 1 if talks fail to come to an agreement that would allow the US to take over Greenland. The leader of the world's largest economy has also threatened import tariffs of 200% on French wines and champagnes after reports suggested that French President Emmanuel Macron was unwilling to join his 'Board of Peace' for Gaza. The tensions were fanned further after the US president called the UK's plans to hand over sovereignty of the Chagos Islands, home to a UK-US military base, an "act of great stupidity" and used the move to justify his plans to take over Greenland.
China's Vice Premier He Lifeng used his address at the World Economic Forum to ease fears over the flood of exports from the country, saying that China saw itself as a commercial partner and not a rival for other countries, according to a Bloomberg report. "We never seek a trade surplus," Lifeng said, adding that on top of being the world's largest factory, the country hopes to be the world's market as well. The leader said the development seen in China presents an opportunity and not a threat to the global economy. "The world must not return to the law of the jungle where the strong prey on the weak," China's Vice Premier was reported as saying. He also called for China and the US to seize opportunities that benefit both sides, referencing some of the technology restrictions on China, and said China often sought to purchase foreign goods, but others were not up for selling. Officials of the country are looking to boost consumption, turning the country into a consumption powerhouse along with a manufacturing powerhouse, according to the leader. He said the country's development was primarily a result of reforms, innovation, and opening up its economy rather than government subsidies, Bloomberg reported.
Following are the levels of key Asian indices at 0815 IST:
|
INDEX |
LEVEL |
CHANGE IN % |
|
CSI 300 Index |
4753.28 |
0.73 |
|
Hang Seng Index |
26514.04 |
0.10 |
|
KOSPI |
4852.17 |
(-)0.69 |
|
Nikkei 225 Day |
52715.31 |
(-)0.52 |
|
TOPIX FIRST SECTION |
3591.60 |
(-)0.94 |
|
FTSE Singapore Straits Times |
4793.95 |
(-)0.71 |
|
S&P/ASX 200 Index |
8779.50 |
(-)0.41 |
(Akshat Saksena)
Equity Alert: US indices end sharply lower on US-Europe tensions
MUMBAI--0737 IST--Major equity indices in the US ended around 2% lower each on Tuesday, after a holiday on Monday. This was after US President Donald Trump threatened tariffs on European countries until they reach an agreement that will let the US acquire Greenland. The US president also threatened French wine and champagne companies with a 200% tariff.
Trump on Saturday said US imports from eight North Atlantic Treaty Organization members would face tariffs starting at 10% on Feb. 1 and rising to 25% on Jun. 1 unless and until a deal was reached for the world's largest economy to acquire the Arctic island. Trump also threatened 200% import tariffs on French wines and champagnes at a time when reports suggest that French President Emmanuel Macron is not interested in joining the US leader's 'Board of Peace' on Gaza. Trump also lashed out at the UK, calling its plan to hand over sovereignty of the Chagos Islands to Mauritius as a "great act of stupidity" and also said that this was another reason why Greenland had to be acquired. The islands are one of the sites of a UK-US military base, CNBC reported. The fear gauge of Wall Street, Cboe Volatility Index, spiked to a high of 20.99.
The threat of tariffs have reignited the 'Sell America' trade, which emerged following the US president's "Liberation Day" levies announced last April, Reuters reported. European leaders are set to discuss possible responses such as tariffs worth on around $109 billion on US imports at an emergency meeting in Brussels Thursday. "The geopolitical risks that we've been talking about for a long time are re-emerging and are shifting market perceptions of common alliances across allies in Europe," Wasif Latif, chief investment officer at Sarmaya Partners in New Jersey, was reported as saying. "That is coupled with what's going on in Japan with the JGB yields continuing to rise and the market caught asleep at the wheel on that risk that's out there. So it's all coming together for a pretty significant risk-off day," Latif added.
Oil prices ended higher for the session, rising 1.5% to end at $64.92 per barell. US West Texas Intermediate settled higher at $60.34 per barrel, up 1.5% as well, Reuters reported. Gold hit a record high of $4,700 an ounce, while spot silver prices slipped slightly after reaching a record high of $4,700 an ounce.
Trump is set to speak at the World Economic Forum in Davos on Wednesday and has agreed to talk to European leaders to discuss his ambitions over the mineral rich island. Speaking on the president's proposed takeover, US Treasury Secretary Scott Bessent defended Trump, saying, "That will stop any kind of a kinetic war, so why not pre-empt the problem before it starts?" CNBC reported.
Following are the closing levels of US indices Tuesday:
|
Index |
Level |
Change in % |
|
S&P 500 |
6796.86 |
(-)2.06 |
|
NASDAQ Composite |
22954.32 |
(-)2.39 |
|
Dow Jones Industrial Average |
48488.59 |
(-)1.76 |
(Akshat Saksena)
US$1 = INR 91.66
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Nishant Maher
All prices from National Stock Exchange, unless otherwise specified.
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