Market Savera - 01/ 01/ 25

Stock Market Updates

2025 Dawns: A Fresh Chapter Begins

Daily Morning Commentary

Global Wrap

2024 was a massive year for global equity gains driven by a trifecta of the AI explosion, a slew of Fed interest rate cuts and a robust U.S. economy.

The S&P 500 logged another year of double-digit gains of over 24% last year, logging its best two-year performance since 1998.

Looking ahead to 2025, financial markets are now pricing in about 50 basis points of additional interest rate cuts from the Fed, with investors eying stretched valuations and uncertainties surrounding tax and tariff policies from the administration of President-elect Donald Trump.

For the month, the S&P 500 tumbled 2.5%, its worst month since April, while the Dow shed 5.3% in December to book its largest monthly slump since Sept. 2022.

The three major U.S. stock indexes closed in negative territory on Tuesday, ending a languid, low-volume session that contrasted with the tumultuous year that preceded it.

All major financial markets around the globe are closed today.

Indian markets

Back home, currency weakness is bothering market participants - the Indian Rupee continue to weaken against the US Dollar on the final trading day of the 2024. As declining exchange rates affect everything from import costs to investment flows.

After six consecutive quarters of gains, the Nifty declined 8% in the December quarter.

Indian markets are slated to open lower on back of weak global cues. Foreign investors continue to remain sellers in cash and derivative markets and that will continue to put pressure on local indices.

The Nifty's positional trend remains sluggish as the index trades below key moving averages. The index faces immediate resistance at 23938, with support at 23450