China's Deepseek shaves $1 Trillion off US Market, RBI to increase liquidity, India tops remittances & more

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China's Deepseek shaves $1 Trillion off US Market, RBI to increase liquidity, India tops remittances & more

Tuesday, 28-January-2025

Sensex 75,901.41 ▲ 0.71%  Nifty 22,957.25 ▲ 0.56%
This is a summary of news that happened relating to finance on 26-04-24


Pointers:

  • Markets opened above yesterday's closing point.
  • Nifty 50 made its high at around 2:38 AM. After that, it fell drastically but still closed positively.
  • Realty and financial services stocks rose the most.
  • Pharma and healthcare stocks fell today.
  • The market's positivity was largely due to RBI's decision to increase liquidity by buying government securities.
  • This might have led to a repo rate cut expectation from the RBI in the near future.
  • Global Markets:
    • The US markets were down.
    • European markets were mostly up.
    • And Most Asian Markets were showing a mixed trend.
    
TOP GAINERS:     (Nifty 50)

Bajaj Finance     Rs. 7,606.60 ▲ 4.26%
Axis Bank     Rs. 983.80 ▲ 3.77%
Shriram Finance     Rs. 530.10 ▲ 3.61%
Bajaj Finserv     Rs. 1,768.95 ▲ 3.35%
HDFC Bank     Rs. 1,670.40 ▲ 2.49%



TOP LOSERS:        (Nifty 50)

Sun Pharma     Rs. 1,705.50 ⏷ 4.55%
Britannia     Rs. 5,060.75 ⏷ 2.23%
Hindalco     Rs. 573.85 ⏷ 2.22%
Grasim     Rs. 2,411.30 ⏷ 1.90%
Bharat Electronics     Rs. 258.25 ⏷ 1.79%




News:

  • India remained the top recipient of remittances globally in 2024. It received around $129 billion, followed by Mexico ($68 billion), China ($48 billion), Philippines ($40 billion) and France ($37 billion).
  • The RBI's Rs.60,000 crore OMO purchase auctions boosted banking and financial stocks. 
  • Stocks fell as China's Deepseek unveiled a cost-effective AI model rivaling U.S. counterparts, raising competitive concerns.
  • Nvidia & Broadcom led a sharp chip stock selloff, Nvidia has dropped 17% and erased &589 billion in value, down 23% from the record highs.
  • UPI payments accounted for 83% of all digital transactions by volume in 2024 (compared to 34% in 2019). Other digital transactions include RTGS, NEFT, IMPS, credit cards, debit cards, etc: RBI.


Trending Stocks:        

TVS Motor Company    ▲ 5.32%
Tata Motors    ▲ 2.64%
Sun Pharmaceuticals    ⏷ 4.24%
Britannia Industries    ⏷ 2.15%

Quote of the day:
"Debt is like any other trap, easy enough to get into, but hard enough to get out of."
- Henry Wheeler Shaw
 
Stock Updates:
  • ITC: The Company's emerged business, ITC Hotels will be listed on 29 January 2025 for Rs. 180.
  • Tata Power: The Company's subsidiary, TP Solar, received a Rs. 455 crore contract to 300MWp solar modules to Maharastra State Power generation company.
  • L&T: The company has received a significant order to build a 10 MW AI-enabled data center in Tashkent, Uzbekistan. Orders between Rs. 1000-2500 crores are categorized as significant orders from L&T.
  • Baja Auto: net profit for the Oct-Dec quarter rose 8% to Rs. 2,196.00 crore Quarter-on-Quarter.
  • Hyundai Motors: net profit for the Oct-Dec quarter fell 19% to Rs. 1,161 crores Quarter-on-Quarter.
  • Hindustan Zinc: net profit for the Oct-Dec quarter rose 32% to Rs. 2,678 crores Quarter-on-Quarter.
  • Cipla: net profit for the Oct-Dec quarter rose 49% to Rs. 1,571 crores Quarter-on-Quarter.
  • TVS Motors: net profit for the Oct-Dec quarter rose 18% to Rs. 566 crores Quarter-on-Quarter.
  • CG Power: net profit for the Oct-Dec quarter rose 68% to Rs. 458 crores Quarter-on-Quarter.
  • Bosch: net profit for the Oct-Dec quarter fell 12% to Rs. 458 crores Quarter-on-Quarter.

1-Day Change

Gold             80,020.00 ⏷ 0.03%
Silver             90,390.00 ⏷ 0.79%
Dow Jones    44,713.58 ▲ 0.65% 
Nasdaq         19,341.83 ⏷ 3.07%

Featured Question:

“If Index Fund is passively investing in the index companies then why some of the fund's return are higher than the index itself! If it's due to tracking error then I suppose the error is made by intension. Please correct me.”

Index fund mutual funds usually give similar to or less return than the index itself, as they are tracking.

Example: If an index is growing at 13.7%, then its index fund mutual fund should give around 13.2% to 14.0% returns.

Although, it's very rare for mutual funds to give higher returns than index funds.

This can also be due to the reason that mutual funds add back the amount of dividend they receive.

Or due to the timing difference of investment/divestment.

Although there might be differences in returns, those differences are usually negligible.


Long-Term Returns

Last 20 Years

Sensex               ▲ 13.15% p.a.
Nifty                  ▲ 12.95% p.a.
Dow Jones           ▲ 7.53% p.a.
Nasdaq               ▲ 11.88%  p.a. 

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