GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 are poised to see a higher start on Tuesday despite Asian markets opening on a mixed note in early trade hours hit by DeepSeek. 

Previously, on Monday, the NSE Nifty 50 closed the session 263.05 points or 1.14% lower at 22,829.15, while the BSE Sensex declined 824.29 points or 1.08% to close at 75,366.17.

Key global and domestic cues to know on January 28, 2024

Global Markets

Asia markets were trading on a mixed note on Tuesday after Wall Street saw a massive dip in tech companies dragged by DeepSeek’s AI dominance. Japan’s Nikkei 225 was trading 0.70% lower at 39,280.47. However, the Asia Dow was trading 0.26% higher at 3,741.93. The Chinese benchmark index, the Shanghai Composite was trading flat at 3,250.60. The Hang Seng was trading 0.21% higher at 20,231. Also, Japan’s semiconductor stocks fell the previous day as DeepSeek posed a risk to Asian technology firms involved in the U.S. AI value chain. The technology-heavy Nasdaq Composite dropped 3.07% to end at 19,341.83. Nvidia lost almost 17%, followed by Broadcom which slid 17.4%, and so on. The S&P 500 closed the session 1.46% lower at 6,012.28. 

DeepSeek in focus

DeepSeek is a Chinese artificial intelligence startup that took over rival OpenAI’s dominance as the most downloaded free app in the U.S. on Apple’s App Store. DeepSeek was founded in 2023 by Liang Wenfeng, co-founder of High-Flyer, a quantitative hedge fund focused on AI. However, DeepSeek was hit with a cyber-attack, forcing it to temporarily limit registrations. Following approximately two hours of monitoring, the firm stated that it had fallen prey to a “large-scale malicious attack.”

US dollar 

The US Dollar Index (DXY), which measures the dollar’s value against a basket of six foreign currencies, was up 0.51% at 107.89 on Tuesday morning. However, the dollar index fell 0.34% to 107.30. The index evaluates the strength or weakness of the US dollar in comparison to major currencies. The basket contains currencies such as the British Pound, Euro, Swedish Krona, Japanese Yen, Swiss Franc, etc. The rupee slipped 0.13% to close at 86.33 to the dollar on January 27. 

RBI’s liquidity boost

With the liquidity crunch in the banking system crossed multi-year highs last week, the Reserve Bank of India (RBI) announced a slew of measures. The lender of the last resort will hold open market operations (OMOs) of Rs 60,000 crore in three tranches of Rs 20,000 crore on January 30, February 13 and February 20. While a 56-day variable rate repo auction of Rs 50,000 crore will be held on February 7, a dollar-rupee buy/sell swap auction of $5 billion for a tenor of six months will be undertaken on January 31.

FII, DII data

Foreign institutional investors (FII) were the net sellers of shares net worth Rs 5,015.46 crore. Meanwhile, the Domestic institutional investors (DII) were the net buyers of shares worth Rs 6,642.15 crore on January 27, 2024, according to the provisional data available on the NSE.

Quarterly results

TVS Motor Company, TVS Holdings, V-Guard Industries, UTI Asset Management Company, TTK Prestige, VIP Industries, Tatva Chintan Pharma Chem, Udaipur Cement Works, Tourism Finance Corp of India, Zenotech Laboratories, Transchem, SBI Cards & Payment Services, Suzlon Energy, Star Health & Allied Insurance Company, Shyam Metalics & Energy, RITES, Route Mobile, Share India Securities, Sai Silks Kalamandir, Som Distilleries and Breweries, Motilal Oswal Financial Services, Piramal Pharma, R R Kabel, Novartis India, PTC India Financial Services, PNB Gilts, JSW Energy, Lloyds Metals and Energy, JSW Infrastructure, Mahindra & Mahindra Financial Services, and many other companies will report their quarterly results for Q3 FY25 on January 28.