Market Highlights: Vedanta’s Debt Strategy, PSU Bank Selling & More
Your daily dose of financial news in a minute plus expert advisor views.
🗞️Vedanta’s 3-Year Financial Cushion Amidst Debt Refinancing
Vedanta Resources secured a $300 million loan to refinance higher-interest bonds due in 2026 and 2028. This move reduces refinancing risk and interest costs.
Expert Opinion: CreditSights praised the company’s proactive debt management - Effective debt management showcases Vedanta’s commitment to financial discipline. The three-year cushion allows the company to focus on strategic growth initiatives without the immediate pressure of large debt maturities.
🗞️PSU bank selling, inflows from bonds help Indian rupee to recover sharply in afternoon trade
The local currency was trading at INR 86.38 against the US dollar at 2:00 pm, as compared to 86.64 against the greenback on the previous trading session.
Expert Opinion: “There is a selling by a big public sector bank, possibly on behalf of the central bank. Direction is still on the upside unless 86 is breached. Also, buy/sell swaps are being done by RBI to ease the liquidity position. That has soothed the temperature to some extent,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
🗞️Sustainability Standards: ACCA Chief Urges Immediate Action
She highlighted the increasing demand for ESG expertise and skilled accountants in India to meet global standards.
Expert Opinion: As India’s economy grows, aligning business practices with global ESG standards becomes essential. Upskilling the workforce in sustainability and ethical frameworks will be a game-changer for long-term growth.
🗞️India's trade deficit widens to $22 billion in December
India's trade deficit widened to $21.94 billion in December, with a contraction in exports for the second consecutive month. Imports rose to $59.95 billion. Gold imports saw significant revisions, affecting deficit calculations. Key export sectors faced declines while electronics and garments reported growth. Multiple FTAs are under negotiation.
Expert Opinion: “Globally, this year was challenging for all of us. Despite that, we have come out very well. We have done better than the rest of the world,” Barthwal said, adding that exports showed resilience amid improved manufacturing competitiveness. “The initiatives of the government and exporters are reflecting on growth.”
🗞️States' Health Spending Up 15% Since FY20
While state health spending grew by 15% annually, the central government’s share halved to 7% between FY20 and FY25.
Expert Opinion: The shift in spending responsibilities to states reflects federal financial restructuring. However, increased spending on healthcare infrastructure remains crucial for addressing systemic challenges.
🗞️India to co-chair Paris AI summit in February
A French-organised summit on AI set for early February will be co-chaired with India, featuring industry leaders such as OpenAI's Sam Altman and DeepMind's Demis Hassabis. The summit will focus on sustainable, ethical AI and inclusive global governance, with discussions and an artistic program.
Expert Opinion: "Summit for Action on Artificial Intelligence will bring together leaders from all over the world from governments, civil society (and) the world of research and business", Chappaz added.
🗞️ShareChat Announces 5% Workforce Layoff
In its fourth round of job cuts in two years, ShareChat laid off 5% of its workforce, citing performance appraisals.
Expert Opinion: Layoffs during appraisals reflect industry-wide trends of performance optimization amidst economic challenges. Employees should focus on upskilling to navigate uncertainties.
🗞️Railway Budget Likely to Increase by 15-18% in FY26
The government plans faster rollouts of Vande Bharat trains and high-speed rail projects, with nearly 90 trains expected for delivery in 2025.
Expert Opinion: The budget increase indicates strong government focus on modernizing rail infrastructure. This move can significantly boost economic activity and connectivity.
🗞️ Market Updates: Key Indices & Commodity Rates
Sensex: Ends at 66,670.89, up by 170 points (+0.26%)
Nifty 50: Settles at 19,800.10, gaining 90.10 points (+0.39%)
Gold Rates: ₹7,340 per gram for 22-carat (↑₹30), ₹8,007 per gram for 24-carat (↑₹40)
Silver Rates: ₹90,720 per kg (↑₹500)