Gold at Record High Above $5,000/oz, Silver Hits New Peak: What Lies Ahead?

Gold Hits Record Above $5,000/oz, Silver Scales New Peak: What Investors Should Watch Next

Gold prices surged to an unprecedented milestone on Monday, crossing the $5,000 per ounce mark for the first time in history. The rally reflects heightened demand for safe-haven assets as global investors respond to geopolitical risks, policy uncertainty, and shifting expectations around interest rates. Silver also joined the rally, scaling fresh lifetime highs and outperforming gold on a percentage basis.

Gold and Silver Extend Historic Rally

In international markets, spot gold advanced 1.79% to trade around $5,071.96 per ounce, after touching an intraday high of $5,085.50. US gold futures for February delivery moved in tandem, rising to approximately $5,068.70 per ounce.

Silver prices posted an even sharper move. Spot silver jumped 4.57% to $107.65 per ounce, after hitting a record high of $108.60. The strong momentum in silver highlights increased speculative interest and its dual appeal as both a precious and industrial metal.

Key Drivers Behind the Precious Metals Surge

The latest rally builds on a strong long-term trend. Gold prices have already climbed 64% during 2025 and have added more than 17% so far in 2026. Several structural and near-term factors continue to support prices:

• Safe-haven demand: Rising geopolitical tensions and global trade uncertainties have pushed investors toward defensive assets.
• Monetary policy easing: Expectations of lower interest rates in the United States have reduced the opportunity cost of holding non-yielding assets like gold.
• Central bank buying: Strong and consistent gold purchases by central banks, including continued buying by China, have provided a firm demand base.
• ETF inflows: Record inflows into gold-backed exchange-traded funds have reinforced upward momentum.

Domestic Market Update

In India, the Multi Commodity Exchange (MCX) remained closed on Monday due to Republic Day. However, domestic prices have already reflected the global surge.

Over the past week, MCX gold futures jumped by ₹13,520, or 9.5%, reaching an all-time high of ₹1,59,226 per 10 grams. Silver prices rose even more sharply, surging by ₹46,937, or 16.3%, to cross the ₹3 lakh per kilogram mark for the first time.

What Lies Ahead for Gold and Silver?

Analysts expect bullion prices to remain firm in the near term, with volatility likely around key global events. Market participants are closely tracking the upcoming US Supreme Court hearing related to trade tariffs, as well as the next interest rate decision by the US Federal Reserve.

Domestically, attention will shift to the Union Budget 2026, scheduled for February 1. Any changes in import duties, taxation, or fiscal measures could influence sentiment in the Indian bullion market.

Experts suggest that the broader trend for precious metals remains positive, and any short-term corrections may attract buying interest. Investors will also monitor inflation data from major economies, trade indicators from China, and commentary from global central bank officials for further cues.

Conclusion

With gold above $5,000 per ounce and silver at record highs, precious metals have firmly established themselves as key assets in an uncertain global environment. While short-term fluctuations are inevitable, the underlying fundamentals continue to support a bullish outlook.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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RBI Announces Major Liquidity Push to Support Rupee and Rate Transmission

The Reserve Bank of India has unveiled a fresh and sizeable liquidity infusion plan aimed at strengthening banking system liquidity and improving the effectiveness of past interest rate cuts. The measures come at a time when the rupee remains under pressure and market participants are seeking durable surplus liquidity.

Details of RBI’s Liquidity Measures

The central bank has announced three separate operations that together are expected to inject nearly ₹1.92 lakh crore into the financial system over the coming weeks.

• Open Market Operations (OMO): RBI will purchase government securities worth ₹1 lakh crore in two tranches of ₹50,000 crore each, scheduled for February 5 and February 12.
• Dollar-Rupee Buy-Sell Swap: A three-year swap of $10 billion will be conducted on February 4, infusing close to ₹92,000 crore of rupee liquidity.
• Variable Rate Repo: A 90-day repo operation amounting to ₹25,000 crore is slated for January 30.

These steps are designed to move system liquidity into a sustained surplus and ensure that earlier policy rate reductions are transmitted more effectively to lending and deposit rates.

Current Liquidity Position

Despite recent interventions, liquidity levels have remained modest. System liquidity averaged a surplus of ₹57,120 crore in January so far, compared with ₹72,549 crore in December.

Measured as a share of net demand and time liabilities (NDTL), liquidity stood at just 0.2% in January, down from 0.3% in December. Market participants believe this level is insufficient to drive strong credit growth or meaningful rate transmission.

Market Expectations and Outlook

Economists expect the latest measures to significantly improve liquidity conditions. Based on current estimates, the new operations could lift liquidity to around 0.9% of NDTL, provided there is no major absorption due to foreign exchange market interventions.

Analysts also anticipate that the central bank may need to continue open market purchases in the coming months. Expectations are building for additional OMOs during February and March, with further liquidity support likely in the next financial year.

Link to Monetary Policy Decision

The liquidity announcement comes just ahead of the upcoming monetary policy review, with the policy decision scheduled for February 6. Market participants see the measures as a clear signal that the central bank is focused on supporting growth while managing currency volatility.

Why This Matters for Investors

Improved liquidity typically lowers borrowing costs, supports bond prices, and enhances credit availability. For equity markets, durable surplus liquidity often acts as a positive trigger by improving risk appetite and easing financial conditions.

As the rupee faces global headwinds and domestic growth remains a priority, the RBI’s aggressive liquidity stance is being viewed as a proactive step to stabilize markets and reinforce monetary policy transmission.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Kotak Mahindra Bank Q3FY26 Results: Profit Up 4%, NII Rises 5%

Kotak Mahindra Bank Q3FY26 Results: Standalone Profit Rises 4%, NII Grows 5%

Kotak Mahindra Bank delivered a steady financial performance in the third quarter of FY26, supported by consistent growth in its core lending operations, improving asset quality, and healthy balance sheet metrics. The private sector lender reported moderate profit growth amid stable margins and robust expansion in advances and deposits.

Profit Performance

For Q3FY26, Kotak Mahindra Bank posted a standalone net profit of Rs 3,446 crore, registering a 4% year-on-year (YoY) increase compared with Rs 3,305 crore in the corresponding quarter last year.

On a consolidated basis, profit after tax (PAT) stood at Rs 4,924 crore, reflecting a 5% YoY growth and a 10% sequential rise over Rs 4,468 crore reported in Q2FY26.

Net Interest Income and Margins

The bank’s core income remained resilient during the quarter. Net interest income (NII) rose 5% YoY to Rs 7,565 crore, compared with Rs 7,196 crore in Q3FY25. On a quarter-on-quarter basis, NII increased by 3% from Rs 7,311 crore.

Net interest margin (NIM) for the quarter stood at 4.54%. While this was lower than 4.93% recorded a year earlier, margins remained flat sequentially, indicating stability despite a changing interest rate environment.

Asset Quality Improves Further

Kotak Mahindra Bank continued to strengthen its asset quality metrics. As of December 31, 2025:

• Gross NPA ratio improved to 1.30% from 1.50% a year ago
• Net NPA declined to 0.31% from 0.41%
• Provision Coverage Ratio (PCR) stood at 76%

Provisions for the quarter amounted to Rs 810 crore, lower than Rs 947 crore in the previous quarter. The annualised credit cost reduced to 0.63%, reflecting better credit performance.

Advances, Deposits, and CASA

Net advances grew strongly by 16% YoY to Rs 4,80,673 crore. Customer assets, including advances and credit substitutes, increased 15% YoY to Rs 5,29,455 crore.

Total deposits stood at Rs 5,42,638 crore, marking a 15% YoY growth. Average deposits also rose 15% to Rs 5,26,025 crore.

• Average current deposits grew 14% YoY to Rs 75,596 crore
• Average savings deposits increased 12% YoY to Rs 1,18,505 crore
• Average term deposits surged 19% YoY to Rs 3,18,070 crore

The CASA ratio as of December 31, 2025, stood at a healthy 41.3%.

Capital Position and Returns

The bank maintained a strong capital buffer, with a Capital Adequacy Ratio of 22.6% under Basel III norms. The CET1 ratio stood at 21.5%, including unaudited profits.

For the quarter, Kotak Mahindra Bank reported an annualised Return on Assets (ROA) of 1.89% and a Return on Equity (ROE) of 10.68%.

Fund Raising Plan

In a strategic move to strengthen its funding base, the bank’s board approved a proposal to raise up to Rs 15,000 crore through the issuance of unsecured, redeemable, non-convertible debentures (NCDs) via private placement during FY27, subject to necessary approvals.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Dr Reddy’s Gets Approval for Generic Ozempic in India, Targets 12 Million Pens

Dr Reddy’s Wins Approval for Generic Ozempic in India, Targets 12 Million Pens in First Year

Regulatory clearance marks a major step into the booming diabetes and weight-loss drug market

Dr Reddy’s Laboratories has received regulatory approval in India to manufacture and sell a generic version of Ozempic, a widely used diabetes medication based on the active ingredient Semaglutide. The approval positions the company to tap into one of the fastest-growing therapeutic segments, with management targeting sales of 12 million injectable pens in the first year of launch.

The clearance from India’s drug regulator allows Dr Reddy’s to introduce the generic product for diabetes treatment. However, the company is still awaiting approval for the obesity-focused version, commonly associated with the weight-loss therapy Wegovy.

Semaglutide Patent Expiry Opens New Opportunities

The approval comes ahead of the global patent expiry for Semaglutide, scheduled for March 2026. Once the patent protection ends, Indian pharmaceutical companies are expected to intensify competition in both diabetes and weight-management therapies.

Semaglutide has gained significant attention globally not only for diabetes management but also for its appetite-suppressing properties, which have driven strong off-label use for weight loss. This dual demand has made the molecule a strategic growth driver for generic drugmakers.

Strong Demand Expected in Domestic and Overseas Markets

Dr Reddy’s management has indicated that the company has adequate manufacturing capacity to meet anticipated demand. The firm plans to collaborate with local partners in India to support distribution and market penetration.

Beyond the domestic market, Dr Reddy’s also plans to launch Semaglutide in Canada later this year, followed by other emerging markets. These launches are expected to strengthen the company’s branded generics portfolio and support long-term revenue growth.

India Business Shows Solid Growth Momentum

Semaglutide is expected to play a key role in accelerating Dr Reddy’s India business, which has been expanding through new product launches and strategic acquisitions. During the latest quarter, revenue from the company’s India operations rose 19% year-on-year to ₹16.03 billion.

This growth was supported by selective price increases and contributions from recently acquired brands, including an anti-vertigo therapy added to its domestic portfolio in September.

Quarterly Financial Performance Beats Expectations

For the quarter ended December 31, Dr Reddy’s reported a 14.4% decline in consolidated net profit to ₹12.1 billion. Despite the drop, the result exceeded market expectations, which had projected a sharper fall.

Total revenue from operations increased 4.4% year-on-year to ₹87.53 billion, comfortably ahead of estimates. The profit decline marked the company’s first quarterly contraction in five quarters.

Key Headwinds Impacting Profitability

• Slower sales of Lenalidomide, a generic cancer drug, in the US market
• Increased pricing pressure due to heightened competition
• Normalization of earnings following earlier high-margin periods

Outlook: Semaglutide as a Long-Term Growth Engine

While near-term earnings faced pressure, the approval for generic Ozempic significantly strengthens Dr Reddy’s medium- to long-term outlook. With diabetes and obesity rates rising steadily in India and abroad, Semaglutide-based therapies are expected to remain in high demand.

The company’s early regulatory clearance, manufacturing readiness, and international expansion plans could provide a meaningful boost to revenues once large-scale launches commence.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Sun Pharma Explores $10-Billion Organon Acquisition to Boost US Presence

Sun Pharma Eyes $10-Billion Organon Acquisition to Strengthen US Market Presence

Sun Pharmaceutical Industries Ltd, India’s largest pharmaceutical company by market value, is reportedly evaluating a major acquisition that could significantly reshape its global footprint. The company is exploring the purchase of US-based Organon, a women’s health-focused drugmaker with an expanding biosimilars portfolio, in a deal estimated at around $10 billion including debt.

If executed, this transaction would mark the largest cross-border acquisition ever undertaken by an Indian pharmaceutical firm and could be among the most ambitious moves by Sun Pharma’s founder, Dilip Shanghvi. Market participants view the potential deal as a strategic effort to deepen Sun Pharma’s presence in the lucrative US pharmaceutical market.

Deal Structure and Strategic Intent

According to reports, Sun Pharma has appointed a European investment bank to advise on structuring a detailed financial proposal that may eventually be placed before Organon’s board. While discussions are ongoing, sources caution that there is no certainty of a final agreement and that competing bidders could also emerge.

Organon was spun off from a global pharmaceutical major in 2021, inheriting a sizeable debt burden of about $9.5 billion at inception. Despite efforts to rebalance its finances through asset sales and acquisitions, the company’s debt stood at approximately $8.9 billion as of the second quarter of 2025. This leverage has been a key factor influencing its valuation and strategic options.

Why Organon Matters to Sun Pharma

The proposed acquisition is seen as a potential gateway for Sun Pharma to scale up in two high-growth segments:

• Women’s healthcare, including contraception and fertility treatments
• Biosimilars, a segment offering long-term growth and relatively high margins

Organon’s portfolio includes established women’s health brands and a biosimilars business that contributed roughly $660 million in annual revenue. Analysts believe these assets could neatly complement Sun Pharma’s existing US product lineup.

Financial Snapshot of Both Companies

Organon currently has a market capitalisation of about $2.3 billion on the New York Stock Exchange, with its share price well below last year’s highs. For FY24, the company reported revenue of $6.4 billion and EBITDA of around $1.95 billion. However, margins have come under pressure due to higher costs and debt servicing.

Sun Pharma, on the other hand, closed FY25 with consolidated revenue of Rs 52,041 crore (approximately $6.19 billion) and EBITDA of Rs 15,300 crore, reflecting a growth of over 17% year-on-year. Its balance sheet remains relatively strong, with minimal standalone debt and cash reserves estimated at around Rs 20,000 crore.

Potential Impact on the US Business

The US market is already Sun Pharma’s largest revenue contributor, driven by its growing portfolio of branded and specialty products. In FY25, revenue from innovative products in the US reached $1.21 billion, supported by strong performance from dermatology and specialty therapies.

An Organon acquisition could accelerate this momentum by adding scale, diversifying revenue streams, and enhancing Sun Pharma’s reach in women’s health and biosimilars—areas where competition is limited to a handful of global players.

Risks and Market Watchpoints

While the strategic logic appears sound, investors will closely monitor key risks such as integration challenges, leverage levels post-acquisition, and regulatory approvals. Pro forma leverage is estimated to rise to around 2.5 times net debt to EBITDA, which remains manageable but higher than Sun Pharma’s current levels.

At present, both companies have declined to comment on market speculation. As negotiations evolve, the proposed transaction is expected to remain a major focus for investors tracking consolidation trends in the global pharmaceutical industry.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Steel Prices Rise on Safeguard Duty and Export Demand | Market Outlook

Steel Prices Rise as Safeguard Duty and Export Demand Push Rates Higher

Domestic steel prices have started moving upward after remaining under pressure for most of calendar year 2025. The recent increase has been supported by the imposition of safeguard duty on imports, stronger export demand, and rising raw material costs, prompting steelmakers to raise prices. However, analysts remain cautious about the sustainability of the current uptrend.

Latest HRC Price Hike Signals Firming Trend

Steel producers recently announced another round of price increases, with several mills raising hot rolled coil (HRC) prices by ₹500–₹750 per tonne. This marked the second hike in the current month, and market participants expect other producers to follow suit in the coming days.

As a result, list prices of HRC have climbed by ₹3,000–₹5,250 per tonne since mid-December, reaching around ₹50,500–₹51,750 per tonne across major mills. At the trade level, distributor-to-dealer prices have increased by nearly ₹6,000 per tonne to approximately ₹52,000 per tonne.

Key Factors Driving Steel Prices Higher

Multiple structural and cost-related factors are contributing to the upward movement in steel prices:

• Safeguard duty support: Import curbs have reduced low-priced overseas supplies, improving pricing power for domestic producers.
• Higher input costs: Imported met coke prices have risen sharply, while rupee depreciation has further inflated costs.
• Tight availability: Certain long products are witnessing supply constraints, supporting overall steel prices.
• Improved exports: Strong overseas orders have helped absorb excess domestic capacity.

Industry executives believe the recent price rise could mark a turning point after a prolonged period of subdued pricing.

Export Momentum Provides Additional Support

Steel exports from India have seen a notable improvement, aided by advance buying from overseas markets. During April–November 2025, total steel exports, including stainless steel, rose 31% year-on-year to 5.77 million tonnes.

Finished flat steel exports to the European Union surged 45% year-on-year to 2.46 million tonnes during the same period. This growth was largely driven by pre-buying ahead of the phased implementation of carbon-related trade regulations in Europe.

For the full calendar year 2025, India’s steel exports stood at 8.48 million tonnes, while imports declined to 9.56 million tonnes, reflecting improved trade balance dynamics for the sector.

Can the Price Uptrend Sustain?

Despite the recent improvement, analysts warn that supply-side pressures could resurface. The domestic steel industry has added nearly 15 million tonnes of capacity over the past few quarters, with an additional 5 million tonnes expected by the end of FY26.

This rapid expansion created temporary oversupply and capped prices earlier. Looking ahead, demand is expected to improve in FY27, with incremental consumption projected at 11–12 million tonnes. With limited new capacity additions in early FY27, the impact of overcapacity on prices may gradually ease.

However, some analysts caution that commissioning of new blast furnaces and a potential slowdown in demand growth could limit further price increases. On a cumulative basis, flat steel HRC prices are expected to be only 1–2% higher in FY27 compared to FY26, while increased competition may push long steel prices lower by 3–5%.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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HDFC Bank Q3 Results: Net Profit Jumps 11% YoY to Rs 18,654 Crore, NII Up 6.4%

HDFC Bank Q3 Results: Net Profit Rises 11% YoY to Rs 18,654 Crore, NII Grows 6.4%

HDFC Bank delivered a steady financial performance in the December quarter of FY26, reporting an 11% year-on-year increase in net profit that exceeded market expectations. India’s largest private sector lender continued to show resilience in earnings despite margin pressures and a moderated growth environment.

Profit Performance Beats Estimates

The bank’s standalone profit after tax (PAT) stood at Rs 18,654 crore for the quarter ended December 31, 2025, compared with Rs 16,735 crore in the same period last year. This was higher than Street expectations of around Rs 18,473 crore.

On a sequential basis, profit remained largely flat compared to Rs 18,641 crore reported in the September 2025 quarter, reflecting stable operating performance.

Net Interest Income and Margins

HDFC Bank’s net interest income (NII) increased by 6.4% year-on-year to Rs 32,620 crore, up from Rs 30,650 crore in the corresponding quarter of the previous year.

During the quarter:

• Interest income rose marginally by 1% YoY to Rs 76,751 crore.
• Interest expenses declined nearly 3% YoY to Rs 44,136 crore.

The core net interest margin (NIM) stood at 3.35% on total assets and 3.51% on interest-earning assets, indicating stable margins despite competitive pressures.

Operating Efficiency

Operating expenses for Q3FY26 were reported at Rs 18,770 crore. Excluding the estimated Rs 800 crore impact from employee benefits under the New Labour Code, expenses were Rs 17,970 crore, compared with Rs 17,110 crore in the year-ago quarter.

The core cost-to-income ratio for the quarter stood at 39.2%, reflecting disciplined cost management amid network expansion.

Balance Sheet and Deposit Growth

The bank’s balance sheet continued to expand steadily. As of December 31, 2025, total balance sheet size stood at Rs 40.89 lakh crore, compared with Rs 37.59 lakh crore a year earlier.

Key balance sheet highlights include:

• Average deposits rose 12.2% YoY to Rs 27.52 lakh crore.
• Average CASA deposits grew 9.9% YoY to Rs 8.98 lakh crore.
• Sequential growth in deposits remained healthy during the quarter.

Advances and Loan Mix

Gross advances increased by 11.9% year-on-year to Rs 28.45 lakh crore. Growth was driven primarily by:

• Retail loans rising 6.9%
• Small and mid-market enterprise loans growing 17.2%
• Corporate and wholesale loans expanding 10.3%

Overseas advances accounted for a modest 1.7% of total advances, keeping the loan book largely domestically focused.

Asset Quality Remains Stable

Asset quality indicators remained steady during the quarter. Gross non-performing assets (GNPA) stood at 1.24% of gross advances as of December 31, 2025, unchanged sequentially and improved from 1.42% a year ago.

Net NPAs were reported at 0.42%, reflecting controlled credit costs and prudent risk management.

Expanding Network and Workforce

As of December 31, 2025, HDFC Bank operated 9,616 branches and 21,176 ATMs across 4,170 cities and towns. Around 50% of branches are located in semi-urban and rural areas, supporting financial inclusion.

The bank’s workforce stood at 2,15,739 employees, underscoring continued investment in human capital to support long-term growth.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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