The week saw significant political and economic events that influenced market movements worldwide, including in India.
Tata Consultancy Services Ltd. announced its third-quarter earnings, while the Union government's first advance estimates predicted that India's economy is expected to grow at its slowest pace in four years.
TCS Results
TCS announced its third-quarter earnings on on Thursday. Its net profit rose 4.1% sequentially to Rs 12,444 crore in the quarter ended Dec. 31, 2024. This is in line with the consensus estimate of Rs 12,537 crore shared by analysts tracked by Bloomberg.
The IT major's revenue from operations declined 0.4% over the previous three months to Rs 63,973 crore in the third quarter, according to an exchange filing. That compares with the Rs 64,749-crore consensus estimate of analysts tracked by Bloomberg.
GDP Estimates
According to the government's first advance estimates, India's economy is expected to grow at its slowest pace in four years.
The gross domestic product is projected to increase 6.4% in fiscal year 2024-25, based on the first advance estimates released by the Central Statistics Office ahead of the Union Budget. This compares to a provisional estimate of 8.2% growth for fiscal year 2024.
A Bloomberg poll of economists had also predicted a 6.4% growth in GDP for the current fiscal year. The Reserve Bank of India has revised its GDP growth forecast to 6.6%, down from the earlier projection of 7.2%.
Trade Deficit
India's merchandise trade deficit remained at a record high in November, despite a reduction in gold imports.
On Wednesday, the government revised the sharp rise in gold imports for November, lowering the figure from $14.8 billion to $9.8 billion. The original number was incorrect due to a calculation mistake, likely caused by double counting in warehouses.
After the correction, the trade deficit narrowed to about $32.8 billion, down from $37.8 billion in November.
FOMC Meeting Minutes
In December, Federal Reserve officials took a new approach to rate cuts due to ongoing inflation risks, choosing to proceed more gradually in the coming months.
The minutes released in Washington stated that officials pointed to higher inflation, strong spending and reduced risks to the labour market and economic activity outlook. At that meeting, US central bankers lowered their benchmark lending rate by a quarter-point, bringing it to a range of 4.25% to 4.5%.
LA Wildfire
The Los Angeles wildfire has affected affluent neighbourhoods, destroyed multi-million-dollar properties and forced widespread evacuations.
Celebrities who were affected included Paris Hilton, Billy Crystal, Mandy Moore, Adam Brody and Leighton Meester. The raging fire has burned more than 70 sq. kilometres across Palisades, Eaton near Pasadena, and San Fernando Valley.
Parts of Hollywood were ordered to evacuate as a new fire broke out in the hills, further escalating the damage.
Trudeau Resigns
Canadian Prime Minister Justin Trudeau has resigned on Jan. 6. Trudeau, in a media conference in Ottawa, said that he will remain prime minister until his party selects a new leader.
The Canadian Parliament will remain suspended until March 24.
"I intend to resign as party leader and as Prime Minister after the party selects its next leader. Last night I asked the president of the Liberal Party to start that process," Trudeau said in an address.
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