Market Bizzz

Economist Swaminathan Aiyar argues that India’s strong economic growth is a result of long-term structural reforms, not short-term budget adjustments. He advises the government to prioritize fiscal consolidation and deregulation over new stimulus measures or expanding subsidies and PLI schemes, emphasizing the need to cut red tape to sustain momentum.

Oil prices surged for a third day amid escalating fears of a U.S. military strike on Iran, potentially disrupting regional supply. Brent crude neared $69 and WTI touched $63.79, reflecting heightened geopolitical tensions and a surprise drop in U.S. crude inventories. Analysts warn further escalation could push Brent to $72.

KRM Ayurveda’s shares traded at a 17% grey market premium ahead of its NSE SME listing, signaling strong investor confidence. The Rs 77 crore IPO, entirely a fresh issue, was oversubscribed 74.27 times, driven by robust demand across all investor categories.

Indonesia’s stock market experienced a sharp 7% drop early Wednesday after MSCI announced a freeze on certain index changes. This decision stems from investor concerns regarding free float data transparency. Indonesian authorities are actively engaged in discussions with MSCI to resolve these issues, aiming to restore market confidence.

Vedanta and Hindustan Zinc are in focus after Vedanta approved an Offer for Sale of up to 1.59% stake in Hindustan Zinc at a floor price of Rs 685 per share. Elevated RSI levels suggest strong momentum but raise near-term caution amid potential consolidation.

On January 27, four stocks from the Nifty50 index entered the RSI Trending Up scan after their RSI crossed above the 50 mark from lower levels. This technical development signals improving price momentum and rising buying interest, often tracked by traders to identify potential upside and emerging bullish trends.

Marico is set to acquire a 93.27% stake in premium snacking brand “4700BC” for up to Rs 226.83 crore, aiming to expand its value-added foods portfolio. This strategic investment, expected to conclude within 30 days, will make Zea Maize a subsidiary of Marico. The company also secured rights for the remaining stake after three years.

Gold prices have reached unprecedented levels, breaking the $5,100 mark. This surge is driven by safe-haven demand amidst global geopolitical tensions. The US dollar’s weakness further supports gold’s rise. Silver is also near its all-time highs. Investors are closely watching the Federal Reserve’s policy meeting. Chinese miner Zijin Gold’s acquisition of Allied Gold highlights consolidation in the sector.

Oil prices dipped despite a severe winter storm disrupting U.S. Gulf Coast production and refineries, with analysts estimating significant output losses. Geopolitical tensions in the Middle East also persist as a U.S. aircraft carrier arrived in the region. Meanwhile, OPEC+ is expected to maintain its pause on oil output increases for March.