Global equity markets were largely subdued on Friday, with US indices hovering near record levels while Asian stocks showed selective strength amid mixed economic signals.
In the United States, the S&P 500 touched a new intraday high before ending marginally lower at 6,929.94. The Dow Jones Industrial Average and the Nasdaq Composite also slipped by less than 0.1%, underscoring investor caution despite resilient corporate earnings and easing inflation expectations.
Asian markets presented a more nuanced picture. Japan’s Nikkei 225 rose 0.5% to close at 50,675, marking its second consecutive weekly gain. Sentiment was supported by cabinet approval of a record budget for fiscal year 2026, aimed at sustaining growth while managing long-term public debt. Markets also reacted positively to indications that Japan may reduce issuance of super-long government bonds next year, easing upward pressure on yields. Gains were, however, capped by weaker-than-expected industrial output data and slowing retail sales growth.
Pharmaceuticals: Domestic focus offers resilience
Within India, research analysts suggest that pharmaceutical companies with a stronger domestic orientation may be better positioned than those heavily exposed to the US market. Pricing pressures, regulatory scrutiny, and heightened competition continue to weigh on export-led players, while steady demand, chronic therapy growth, and improving healthcare access support domestic-focused firms.
Corporate developments in focus
In the industrial and defence space, Solar Industries India is expected to see growth driven by rising overseas orders and increased defence spending, according to recent analyst visit notes. The company’s expanding global footprint and diversification beyond core explosives are seen as key medium-term drivers.
Meanwhile, the banking sector faced renewed scrutiny after Punjab National Bank disclosed a ₹2,434 crore borrowing fraud linked to entities associated with former SREI promoters. While the bank has fully provisioned for the exposure, the case highlights lingering asset quality risks tied to legacy non-banking financial company (NBFC) accounts.
In the technology sector, Coforge announced a $2.35bn all-stock acquisition of US-based AI-native firm Encora. One of the largest overseas deals by an Indian IT company, the transaction significantly scales Coforge’s capabilities in AI-led engineering, cloud services, and Latin American delivery, signalling continued consolidation as firms reposition for an AI-driven future.
