Overall economic activity continued to hold up in November with demand conditions remaining robust, thanks to strengthening urban demand, but manufacturing and rural demand showed some signs of deceleration even as services remained strong, according to an article on the State of the Economy written by Reserve Bank of India (RBI) officials in the central bank's December bulletin.
Sanjay Malhotra has made structural changes to banking regulation to bring down costs and increase efficiency. Plus, he kicked off a benign interest regime. But there are challenges ahead.
In an event-heavy week ahead, stock markets' movement would highly depend on macroeconomic data announcements, global trends, RBI's interest rate decision and trading activity of foreign investors, analysts said. India's industrial production data for October 2025 will be released on December 1, an official statement said on Friday.
Foreign direct investment (FDI) in India rose 18 per cent to $35.18 billion during April-September this fiscal year, while the inflow from the US more than doubled to $6.62 billion during the first half of this fiscal, according to government data released on Monday. Foreign Direct Investment (FDI) during April-September FY24 stood at $29.79 billion.
Congress leader Rahul Gandhi alleges the government discourages foreign dignitaries from meeting the Leader of the Opposition due to insecurity, breaking established traditions.
'We expect modest returns in 2026 versus the steep gains seen over the past few years.'
A federal body began a hearing on the impact of Indian trade policies on US businesses wherein American bodies and advocacy groups slammed India for its trade practices, alleging they hit their jobs and business.
The Bharatiya Janata Party on Tuesday said it held a formal meeting with a Chinese delegation openly, given the "improved" relations between New Delhi and Beijing, unlike the Congress which, it alleged, "secretly" signed a memorandum of understanding with the neighbouring country's ruling party.
US lawmakers have expressed concerns that policies enacted by the Trump administration, such as the H1B visa fee and tariffs on India, are detrimental to American businesses and threaten the relationship between the United States and India.
India has raised concerns with the United States regarding the cancellation of scheduled H1B visa interviews for Indian applicants due to enhanced vetting measures. Both countries are engaged in discussions to address the disruptions caused by the delays.
China and Pakistan concluded their strategic dialogue, reiterating their opposition to unilateral actions in South Asia and discussing Kashmir, Afghanistan, and trilateral cooperation.
United States President Donald Trump ignited controversy after making sharp and unprecedented remarks about Colombia during a brief exchange with reporters.
Trump called for immediate negotiations for the US to acquire Greenland from Denmark, describing the country as ungrateful, during his speech at Davos.
Chinese Foreign Minister Wang Yi stated that China mediated tensions between India and Pakistan, a claim disputed by India which maintains that the matter was resolved bilaterally.
The Centre is regularly holding consultations with stakeholders to streamline foreign direct investments (FDIs) and foreign institutional investments (FIIs) related processes to enable faster and more efficient investment flows into the country, said Commerce and Industry Minister Piyush Goyal, adding one such meeting with stakeholders was held on Tuesday.
The Reserve Bank of India (RBI) on Friday delivered a 25 basis point (bps) repo rate cut analysts expected, driven by the strong 8.2 per cent GDP growth in the September quarter. However, analysts do not expect a runaway market rally as the impact of US tariffs continues.
India told the UN Security Council that it calls for a pragmatic engagement with the Taliban, underlining that a focus on only punitive measures will ensure a 'business as usual' approach.
The latest move removes one of the key friction points for visitors, temporary liquor permits, while allowing licensed hotels and restaurants operational flexibility.
As the rupee remains under pressure due to several headwinds and the uncertainty around the India-US trade deal, the Reserve Bank of India (RBI) has been stepping in only to calm volatility, not to stop the fall.
Among Sensex firms, Eternal, Infosys, Asian Paints, HDFC Bank, Bajaj Finserv and Titan were the major gainers. However, Tata Steel, Tech Mahindra, Adani Ports and Bharat Electronics were among the laggards.
Gold and silver prices are poised to maintain their record-setting rally in the coming week as investors focus on global inflation data and key macroeconomic indicators that shape central bank policy paths, analysts said.
Tata Consultancy Services, Tech Mahindra, Infosys, HCL Tech, Bharti Airtel, Sun Pharma, Bharat Electronics and Trent were the major gainers among Sensex scrips. However, Maruti, Eternal, Kotak Mahindra Bank and Titan were among the laggards.
'Rate cut looks unlikely and there is reason to believe that the cycle is over.'
After a year of modest returns, equity investors may anticipate gains of 10-15 per cent in Samvat 2082, which began on October 21. Although valuations have moderated from their peaks a year earlier, they remain above long-term averages, potentially limiting sharp upsides.
Uncertainties over the impact of the United States' (US') tariffs on India, along with the ongoing transmission of past rate cuts, prompted the members of the Reserve Bank of India's Monetary Policy Committee (MPC) to maintain the status quo during the August meeting, the minutes showed. While some of the external members highlighted their concern over growth, the internal members cited the one-year headline inflation rate overshooting the 4 per cent target.
'Foreign capital will continue to come directly into India, but companies have realised that GIFT City is a more cost-efficient way of channelling funds.'
Inflation data, quarterly earnings and global trends will be the major driving factors for stock markets this week, analysts said. Moreover, the trading activity of foreign investors would also influence the equity market trends.
Among 30 Sensex shares, Zomato tanked over 5 per cent. Tata Steel, Bajaj Finserv, Tata Motors, Power Grid, Larsen & Toubro, Kotak Mahindra Bank, Hindustan Unilever and ITC were the biggest laggards. Bharti Airtel was the only gainer among Sensex scrips.
'Only four or five original companies remain; the rest have been replaced every decade as sectors evolve or leadership shifts.' 'Companies that fail to adapt -- like many textile mills from the 1970s and shipping firms from the 1980s -- disappear.' 'Benchmark indices reward those who reinvent themselves in line with economic demands.'
The Reserve Bank of India (RBI) on Tuesday announced a fresh round of liquidity measures through open-market operations (OMOs) and a foreign exchange buy-sell swap, under which it will inject close to Rs 3 trillion into the banking system. The central bank said it would purchase Government of India securities worth Rs 2 trillion through OMOs, spread across four tranches of Rs 50,000 crore each to be conducted on December 29, January 5, January 12 and January 22.
Main imports from the neighbouring country during April-January 2024-25 included fruits and nuts (USD 0.08 million), certain oil seeds and medicinal plants (USD 0.26 million), and organic chemicals.
Domestic PMI data, US Federal Reserve meeting minutes and the progress on India-US trade deal negotiations are likely to influence movement in the equity market in the week ahead, according to analysts. Moreover, the trading activity of foreign investors would also influence the equity market trends.
Just over a year ago, India was investors' top pick among EMs. Its slide down the rankings follows $30 billion (over 2.5 trillion) of foreign selling over the past 12-13 months.
Amid US-China trade tensions and economic vulnerabilities, India must seize the 'China +1' opportunity, deepen reforms, secure FTAs, and globalise its firms for long-term growth, suggests Ajay Shah.
India's gems & jewellery exports witnessed 30.6 per cent year-on-year (Y-o-Y) contraction in October to $2.17 million, amid the imposition of a steep 50 per cent tariff by the United States (US) on several Indian products.
US President Donald Trump signed the National Defence Authorisation Act for Fiscal Year 2026 into law, highlighting broadened engagement with India and addressing the challenge posed by China in the Indo-Pacific region.
With inflation comfortably below the Reserve Bank of India's (RBI's) 4 per cent median target and likely to undershoot its 3.7 per cent projection for 2025-26 (FY26), there is room for the monetary policy easing cycle to be sustained, the Finance Ministry said on Monday. The comments, featured in the ministry's Monthly Economic Review for June 2025, assume significance ahead of the Monetary Policy Committee (MPC) meeting of the Reserve Bank of India (RBI) scheduled to begin from August 5.
Escalating trade tensions amid a tariff war after Donald Trump took over as President of the United States (US) could adversely impact global growth and fuel inflation, an article on the "State of the Economy" in the Reserve Bank of India (RBI) monthly bulletin said.
India and Russia have solidified a five-year plan to enhance their economic and trade partnership, while also addressing the ongoing conflict in Ukraine and the threat of terrorism.
In an event-heavy week, stock investors will track ongoing quarterly earnings, the US Federal Reserve's interest rate decision, and macroeconomic data for market direction, analysts said. Moreover, progress in India-US trade negotiations will remain a key focus for investors, an expert said.
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