Indian stock market facing a dip and losses from the last 2 days due to a 1 trillion dip in the US tech industry market due to Deepseek. Finally Indian stock market has shown some good signs with an 1100 points increase in Sensex and Nifty at 23,0765. Despite being downward trends in the USA stock market Indian market showing growth. Most of the stock which has gained is from the banking and financial sectors. Pre-budget announcements, fair valuations and technical corrections combined are the reasons for gains in the stock market. In all over secenerio market has gained over 1.48% increases where mid-cap stocks gained 0.5 of profit and low-cap registered a 1.0 percent of loss. American president Donald Trump has warned the emerging Chinese AI company DeepSeek could be a threat to American AI companies and the stock market will face losses.
Key Factor Why India’s Sensex Jumps?
- RBI’s announcement of measures to infuse approximately 1.5 trillion Indian rupees into the financial system gives the banking and financial sector the required momentum. Also, RBI has planned to purchase government securities from open market operations on 30th Jan, 13th Feb and 20th Feb worth 60 thousand crore . Nifty bank and Nifty financial jumper over 2% due to this.
- The markets have demonstrated resilience, supported by robust investor participation and improving fundamentals. Valuations are not at extremes and continue to be supported by healthy corporate earnings, strong ROEs, and low FII holdings.
- Market valuation of large-cap stocks is closer to long-term averages due to correction in policies which triggers the buying.
- All the investor across India has positive feelings about the upcoming union budget 2025 which will be presented by our Finance Minister Nirmala Sitharaman on Feb. 01.
DeepSeek USA Impact on the Indian Stock Market
DeepSeek, an emerging AI model, is making waves in the U.S. market by intensifying competition in the AI sector. With its advanced capabilities, it challenges dominant players like OpenAI and Google, driving innovation and pushing companies to enhance their AI offerings. This increased competition fosters better AI tools, benefiting industries such as finance, healthcare, and customer service.
In India, DeepSeek’s impact could be significant, accelerating AI adoption across businesses and startups. Its cost-effective and efficient solutions may drive digital transformation, boost automation, and create new opportunities in IT and analytics, further solidifying India’s position as a global AI hub.
Also Read – Deepseek AI – Open source AI is disrupting the tech market
