Trump Winning US Election; FOMC Cuts Rate, Trent Share Price Declines — The Week That Was
In the weekly wrap, NDTV Profit brings crucial events that impact the world of business news and financial markets around the globe.
The week ended on Nov. 8 witnessed major global political and economic events directing market movements across the world with no exception to India.
Donald Trump's victory in the US election helped the Indian benchmark indices rally. However, the Indian rupee posted its worst week as it successively hit fresh lows for five consecutive sessions.
The Federal Open Market Committee cut the benchmark federal target range by 25 basis points to 4.5–4.75% in line with market expectations late on Thursday night. Unlike most of the time, the FOMC decision did not evoke a reaction from the Indian markets.
Volatility To Increase As Trump Wins Second Term
Trump's comeback in the 2024 election saw a surge in stocks globally with cryptocurrencies and the dollar on an upward swing. However, Indian stocks are likely to face increased volatility from renewed trade tension and a strong dollar, according to brokerages.
Fed Cuts Interest Rates To 4.5–4.7%
The US Federal Reserve on Friday cut its benchmark interest rate for the second time in a row, in line with market expectations and official projection. The Federal Open Market Committee reduced the federal funds rate target by 25 basis points to between 4.50% and 4.75% at the conclusion of its two-day meeting. The decision was based on consensus.
Bank Of England Cut Rates By 25 Basis Points
The Bank of England reduced the benchmark interest rates by 25 basis points to 4.75%. The move was in line with the market expectations. This was the second time the UK central government reduced the benchmark interest rates.
Indian Markets See 'Healthy Correction'
Indian stock markets witnessed a "healthy correction" after a record rally. It has particularly impacted the most expensive segments, Jefferies' Christopher Wood said in his latest 'Greed & Fear' note.
The relatively inexpensive private sector banks have started to outperform of late, amid expectations of a potential rate cut by the Reserve Bank of India, Wood noted.
Top Nifty 50 Company Earnings Last Week
SBI
State Bank of India reported that its net profit rose 28% on year to Rs 18,331 crore for the quarter ended September, exceeding estimates of Rs 16,112 crore polled by Bloomberg. Higher net interest income and asset quality helped the SBI post better-than-expected results in the July–September period.
Trent
Trent Ltd. reported that its bottom line increased 47% in the second quarter of fiscal 2025 but missed analysts' estimates. It net profit was at Rs 335 crore in July–September, compared to Rs 431 crore that analysts projected in a Bloomberg's survey. The reason behind the Tata Group-led Trent missing expectations is slower revenue growth due to store consolidation in Westside and Zudio.
Trent share price declined for straight five sessions due to impact of its earning jitters.
SC Asks Centre Take Final Call On Mining Royalty
The Supreme Court gave the Union government on Thursday two months to take a final decisive call about the cascading impact of mining royalty compounding.
The development came as the mining companies notified the top court that the royalty, which is already paid is getting included computation of royalty needs to be paid for subsequent month.
