INDIA ECONOMY NEWS
Use market dips to accumulate quality stocks: Vikas Khemani
Vikas Khemani of Carnelian Asset Management suggests that while Middle East tensions are a concern, their impact on oil prices may be limited due to diversified supply sources. Domestically, positive economic news outweighs global uncertainties, potentially leading to market consolidation rather than a steep correction.
5 world market themes for the week ahead
Global markets face a volatile week as Middle East tensions escalate, driving oil prices up. Central banks, including the U.S. Federal Reserve, are set to make crucial interest rate decisions. Investors await clarity on the Fed's stance amid inflation concerns. The Bank of Japan's policy meeting is also keenly anticipated.
India's soft industrial momentum, widening trade gap & business caution, key risks in H2 2025: Report
A recent LLama Research report indicates that while India's economy exhibits strong growth and moderating inflation, certain vulnerabilities warrant attention as H2 2025 approaches. Softening industrial momentum, a growing trade deficit, and initial signs of business caution require careful monitoring.
Iran-Israel War: Why Israel bombed Iran’s nuclear sites and what it means for global security, oil, and trade
Iran-Israel War news: In a dramatic escalation, Israel launched Operation Rising Lion, striking nuclear and military infrastructure deep within Iran, citing concerns over Iran's nuclear weapons program. Prime Minister Netanyahu declared it a necessary act for Israel's survival and regional defense. The strikes have heightened tensions, raising fears of broader conflict and significant impacts on global trade and diplomatic relations.
Iran-Israel Conflict: A Middle East flashpoint that Indian economy can’t ignore
Israel-Iran Conflict: India's economy faces challenges in 2025. The Israel-Iran war has pushed global crude oil prices higher. This threatens the rupee and could raise inflation. India, a major crude oil importer, is highly vulnerable to rising oil prices -- it could widen the current account deficit. The Reserve Bank of India may postpone rate cuts. The government might consider cutting excise duties on fuel.
Black box & one survivor: Hunt begins to unearth mystery behind Air India plane’s deadly descent
Air India plane crash: Investigation has started into the Air India flight AI171 crash near Ahmedabad. The Boeing Dreamliner crashed shortly after takeoff, killing many. One black box has been recovered. The crash site shows total devastation. Prime Minister Narendra Modi visited the site. Questions arise about the cause of the crash. One passenger, Ramesh Vishwaskumar, miraculously survived. The flight was bound for London.
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Niti Aayog: Central incentives only for zero emission vehicles
Niti Aayog emphasised that taxpayer funds would incentivise zero-emission vehicles like EVs, while hybrids, being more fuel-efficient, won't be penalised. India aims to become an EV manufacturing hub, fostering innovation and supply chain control through initiatives like IIT research and GST rationalisation.
Tariffs not going to move the needle much for Chinese or Indian markets: Mark Matthews
Despite evolving US-China-India tariff dynamics, markets remain largely unaffected, according to Mark Matthews of Julius Baer. He emphasizes that earnings, particularly in India, are crucial, with high single-digit growth needed to justify current valuations. While a US-India trade deal faces hurdles regarding agricultural access, tariffs' overall impact on GDP is deemed limited.
Trade deal lacks fine print, raising doubts over US-China truce: Shaun Rein
Shaun Rein discusses the US-China trade agreement, highlighting Trump's optimistic view versus China's more cautious approach. He emphasizes China's growing economic power and shift in trade patterns, with the US needing Chinese manufacturing and resources. Despite market fluctuations and geopolitical tensions, Rein suggests investors consider increasing exposure to Chinese equities, anticipating future institutional investment.
Scott Bessent said to be in the race for next Fed chair. What it means for stock market investors
Scott Bessent, currently the U.S. Treasury Secretary, has emerged as a strong candidate to succeed Jerome Powell as Federal Reserve chair, sparking speculation about a potential shift towards a more dovish monetary policy. This possibility has boosted tech stocks, fueled by expectations of interest rate cuts.
Pakistan once again picks arms over 'aam aadmi'
Pakistan's new budget for fiscal year 2025-26 prioritizes defense with a 20% increase in spending, despite shrinking the overall budget by 7%. The nation, still recovering from an economic crisis and relying on loans, aims for 4.2% growth and reduced inflation while navigating IMF constraints and trade challenges. This allocation occurs amid regional growth outpacing Pakistan and ongoing economic vulnerabilities.
Pakistan hikes defence spending by 20% to $9 bn, still nearly 9x less than India's
Pakistan's FY26 budget reveals a 7% decrease in overall spending, yet defence expenditure surges by 20% to 2.55 trillion rupees after recent clashes with India. In contrast, India's defence budget for the same period is $78.7 billion, a 9.5% increase, signaling heightened military spending in the region following the conflict.
Rural recovery to power financials, NBFCs poised for revival: Punita Kumar Sinha
Punita Kumar Sinha suggests focusing on quality, defensives, and FMCG, anticipating a boost from a better monsoon. She recommends a domestic-focused portfolio including financials, particularly NBFCs benefiting from a recovering rural economy. While IT valuations are reasonable, a catalyst for increased spending remains uncertain due to ongoing trade and immigration concerns.
Markets in wait-and-watch mode amid global crosswinds: Punita Kumar Sinha
Markets are stable due to the RBI cut and benign macro conditions. Global events like US-China trade talks and internal US economic softening are key factors. India faces mixed economic data, with positives like rate cuts and good monsoons balanced by concerns about valuations and geopolitics. Market momentum exists, but choppiness is expected. Valuations are neutral to high.
ETMarkets Smart Talk | India’s Next Big Themes: AI, Semiconductors & Defense to lead wealth creation says Manish Jain
Manish Jain from Mirae Asset Capital Markets highlights AI, defense, digital economy, semiconductors, and renewables as key sectors for long-term wealth creation in India. He suggests that tariff war fears are not the main volatility driver, but geopolitics and earnings shocks could be.
Ahead of Market: 10 things that will decide stock market action on Tuesday
Indian markets ended higher on Monday, with Nifty reaching an eight-month high and banking stocks rallying to record levels, driven by RBI’s surprise easing, strong U.S. jobs data, and progress in global trade discussions.
Cement prices to adjust further in June; 5-6% Q1 volume growth likely for industry: Rakesh Arora
Cement companies are attempting price hikes in Eastern and Southern India due to improved capacity utilization. While industry volume growth is expected to be around 5-6% in Q1, larger companies with acquisitions anticipate mid-teens growth. The rollback of West Bengal incentives may impact some players, but legal challenges are expected.
Asian stocks advance on trade talks, US jobs data
Asian stocks saw a positive opening as the US and China prepare to restart trade negotiations, fueled by optimism from better-than-expected US jobs data that eased recession concerns. Japan and South Korea's equities rose, while US Treasury yields remained steady. The resumption of trade talks could provide a further boost to markets.
India beating Japan as world's 4th biggest economy no cause for major celebration, warns ex-WEF MD
India is set to surpass Japan as the world's fourth-largest economy, but experts caution against complacency due to its low GDP per capita. Claud Smadja highlights the importance of accelerating reforms, protecting data assets, enhancing innovation, and boosting rural productivity to ensure inclusive growth and achieve the goal of a $7 trillion economy by 2030.
India is the 5th largest economy, so it makes sense: Canada’s Mark Carney backs PM Modi’s G7 invite despite tensions
Canadian Prime Minister Mark Carney has defended his decision to invite Prime Minister Narendra Modi to the G7 Summit, stating it "made sense" given India's economic stature and global role. Despite ongoing tensions over the killing of Sikh activist Hardeep Singh Nijjar, Carney stressed that diplomacy is necessary for advancing national interests. The move sparked criticism from Sikh groups, but Carney underscored India's strategic value and noted progress in law enforcement dialogue between the two countries.
Would be my pleasure to welcome PM Modi for G7: Former Canada MP Chandra Arya calls India "indispensable partner"
Chandra Arya welcomes Narendra Modi to Canada for the G7 meeting. He highlights shared values and India's global importance. Mark Carney emphasizes India's essential presence at the G7 summit. Discussions will cover security, energy, and digital future. India's role in supply chains makes its participation crucial.
India is fifth largest economy, their presence at G7 meeting 'makes sense': Canadian PM Mark Carney
Canadian Prime Minister Mark Carney announced that the upcoming G7 summit in Canada will address critical issues like energy, security, and digital infrastructure. He emphasized India's essential role in these discussions, citing its status as the world's fifth-largest economy and most populous nation. Prime Minister Modi accepted Carney's invitation to attend, signaling a potential thaw in relations after recent tensions.
PNB cuts lending rate in line with RBI policy
Following a significant 50 basis points repo rate cut by the RBI, Punjab National Bank has reduced its lending rates by up to 50 basis points, effective June 9, 2025. This move aims to make EMIs more affordable for both existing and new borrowers, with home loan rates starting from 7.45% and vehicle loans from 7.8% per annum.
RBI takes up axe in hand for frontloading rate cuts to push 3D India
The Reserve Bank of India cut the repo rate by 50 basis points to 5.50%, marking its third consecutive reduction and totaling 100 basis points of cuts in 2025. It also slashed the Cash Reserve Ratio (CRR) by 100 basis points to 3%, injecting additional liquidity into the banking system. The RBI shifted its monetary policy stance from "accommodative" to "neutral", citing muted inflation and the need to support economic growth.
RIL, Eternal drive Sensex 400 points higher, Nifty above 24,700
Indian benchmark indices, Sensex and Nifty, traded higher, mirroring gains in Asian markets. Positive sentiment was fueled by advancements in sectors like pharma, oil & gas, and auto. Investors are awaiting the RBI's policy decision, widely expected to include a rate cut. Globally, markets are reacting to fluctuating oil prices and evolving trade dynamics.
Govt will have extra Rs 0.8 tn for capex in FY26 because of higher dividend by RBI, robust GDP: ICRA
The central government has extra space in the fiscal deficit to push up expenditure by at least Rs. 0.8 trillion in FY2026 relative to the Budget Estimates (BE), as the higher GDP and RBI dividend payout provide room for it, according to a report by ICRA.
Indian manufacturing growth eases to 3-month low in May, PMI shows
India’s manufacturing growth slowed to a three-month low in May due to softer demand, price pressures, and geopolitical tensions, according to HSBC’s PMI survey. Despite this, job creation hit a record high, with permanent hiring rising fastest ever. Input costs surged to a six-month peak, pushing output prices up significantly, potentially complicating the Reserve Bank of India’s upcoming rate cuts.
India’s FY25 fiscal deficit meets target at 4.8% of GDP
India’s fiscal deficit for FY25 stood at ₹15.77 lakh crore, or 4.8% of GDP, meeting the revised estimate set by the Union Budget. Data released by the Comptroller General of Accounts on Friday showed the deficit slightly above the target in absolute terms, at 100.5% of the annual goal.
RBI's net income surges by 27.3% to Rs 2.69 lakh cr in FY25 as forex gains rise
The Reserve Bank of India’s net income rose 27.3% to ₹2.69 lakh crore in FY2025 from ₹2.11 lakh crore the previous year, with this surplus declared as a dividend to the government. Gains from foreign exchange transactions increased to ₹11.1 lakh crore, while interest income from foreign securities grew to ₹9.7 lakh crore.
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