Equity benchmark Sensex rallied 936 points on Monday, helped by heavy buying in banking and IT counters along with decline in oil prices amid hopes of headway in renewed diplomatic talks between Russia and Ukraine. A fresh round of talks is expected on Monday between Ukrainian and Russian officials. Rising for the fifth straight session, the BSE Sensex jumped 935.72 points or 1.68 per cent to settle at 56,486.02.
The Asian Development Bank (ADB) on Wednesday slashed India's GDP growth forecast for FY23 to 7 per cent from the earlier estimate of 7.2 per cent mainly on account of higher inflation and a tight monetary policy. India's economy grew 13.5 per cent year-on-year in the first quarter of 2022-23, reflecting strong growth in services, ADB said in its second supplement to Asian Development Outlook Report 2022 (ADO 2022). "However, GDP growth is revised down from ADO 2022's forecasts to 7 per cent for FY2022 (ending March 2023) and 7.2 per cent for FY2023 (ending March 2024) as price pressures are expected to adversely impact domestic consumption, and sluggish global demand and elevated oil prices will likely be a drag on net exports," ADB said.
The US actions can be seen as a riposte to India's neutral position on the Ukraine crisis, its continuing import of Russian arms and oil thus undermining Western sanctions, argues Colonel Anil A Athale (retd).
India's macroeconomic situation has benefited from oil prices' decline.
External Affairs Minister S Jaishankar met United States Secretary of State Antony Blinken in Phnom Penh on Sunday and discussed bilateral ties, the raging Ukraine conflict, energy issues, G20 and the situation in the Indo-Pacific, days ahead of a possible meeting between Prime Minister Narendra Modi and President Joe Biden.
Russian President Vladimir Putin on Thursday held talks with Prime Minister Narendra Modi to further boost cooperation between the two strategic partners in crucial sectors like defence, energy and trade at a time when Russian economy was facing Western sanctions.
China is slowing down, Europe is barely afloat and the US is meeting a larger chunk of its own demand.
The move comes days after the Indian Navy also warned of a possible terror attack from the sea side.
Official sources said the two leaders will meet for around four to six hours for the 'agendaless' talks
Blinken will also attend a meeting of the foreign ministers of the Quad grouping and will hold bilateral talks with his Indian counterpart S Jaishankar in Delhi.
Modi on the global stage always comes across as a statesman, counselling peace and amity to world leaders even as his policies at home hurt certain sections, explains Virendra Kapoor.
Tehran plans to lift exports by 500,000 barrels per day
Since October, FPIs have sold over $26 billion worth of stocks, which is the largest selling ever seen in India, observes Akash Prakash.
The change of heart in the US and India was propelled by the increased threat of China to both countries, explains Ambassador T P Sreenivasan.
After selling dollars for the past few months, the Reserve Bank of India (RBI) may take a hands-off approach before its annual account closing by not trying to prop up the rupee as geopolitical tensions show signs of stabilising with global crude oil prices easing from its $140 peak. The central bank was a net buyer of dollars between April and September, and then turned a net seller in the following months, the data released by the RBI showed. The RBI continued to be a net buyer of $36.6 billion in this fiscal year - between April and January. In 2020-21, it purchased $68 billion on a net basis.
'Had a very fruitful meeting with Iranian defence minister Brigadier General Amir Hatami in Tehran. We discussed regional security issues including Afghanistan and the issues of bilateral cooperation,' Singh said in a tweet.
'What would we feel if we found the world behaving the way it has?' 'Forced to fight our own prolonged battle; nobody from outside really demanding that the war end or actively working to make it end, and above all, a completely toothless United Nations reduced to pleading for a halt to the violence,' notes Shyam G Menon, exactly a month after Vladimir Putin ordered the invasion of Ukraine.
The finance ministry said on Tuesday that high energy and commodity prices due to the Russian invasion of Ukraine may provide an upside risk to inflation and continued vigil is required. "Going forward, elevated energy and commodity prices may act as an upside risk to the inflation outlook in the near-medium term. "Given the inherently unsustainable nature of high prices, international commodity prices are expected to level off early with an increase in supplies outside the crisis zone," the department of economic affairs said in its latest monthly economic report for February.
A strengthening dollar overseas also kept the rupee under pressure amid demand from importers. Goldman Sachs followed JP Morgan, HSBC and Nomura in cutting India's economic growth forecast and also said it expects the rupee to touch 72 against the dollar in the next six months.
Singh, in his address to the Indian-American community in San Francisco, also sent a subtle message to the United States that New Delhi does not believe in a diplomacy of 'zero-sum game' and its relationship with one country cannot be at the expense of the other.
Russian President Vladimir Putin arrived in New Delhi late on Friday night for annual summit talks with Prime Minister Narendra Modi on Thursday that is aimed at building on the already close strategic ties, particularly in the fields of nuclear energy, hydrocarbons and defence.
Equity indices chalked up losses for the second straight session on Monday, in tandem with a bearish trend overseas as ratcheting up of hostilities in Ukraine and prospects of further rate hikes by the US Fed soured global risk sentiment. The rupee slipping to another all-time low against the US dollar amid foreign fund outflows added to the gloom, traders said. After tumbling over 800 points in intra-day trade, the 30-share BSE Sensex clawed back some lost ground to end 200.18 points or 0.34 per cent lower at 57,991.11.
Blinken also underlined that diplomacy is the only way to definitively end the Russian conflict in Ukraine.
'If the Russian forces do capture Kyiv and set up some sort of provisional government, they might run into an insurgency, for which the geography is just right, it could prove costly for them.' 'In that event, the whole exercise could turn out to be counter-productive -- and costly in both foreign policy and domestic terms.'
India is also likely to push for a Free Trade Agreement with the Eurasian Economic Zone and is sharing details of the study it conducted in this regard.
In his pre-departure statement, he said trade ties between India and Russia can increase even further, to benefit not only the two nations but also the world.
He said as per the US, India was a sovereign state, so "what are we then?" he asked.
The country may propose pipeline via China when Putin visits this year.
The 2+2 was attended by Secretary of State Antony Blinken and Secretary of Defence Lloyd Austin and their Indian counterparts S Jaishankar and Rajnath Singh respectively.
In 2017, a consortium led by Russian state oil company Rosneft agreed to buy Essar Oil for $12.9 billion in India's biggest foreign acquisition of a homegrown company. Rosneft's buyout of Essar's assets was meant to herald a wave of energy investments in India - over six decades after Esso, Caltex and Shell invested in India's refining sector in the 1950s. But the government has tripped up in its efforts to sell Bharat Petroleum Corporation Ltd (BPCL), formerly Burmah Shell, a blue chip public sector company. Bidders include a couple of global funds and resources firm Vedanta.
India's projected economic growth for 2022 has been downgraded by over two per cent to 4.6% by the United Nations, a decrease attributed to the ongoing war in Ukraine, with New Delhi expected to face restraints on energy access and prices, reflexes from trade sanctions, food inflation, tightening policies and financial instability, according to a UN report released on Thursday. The UN Conference on Trade and Development (UNCTAD) report downgraded its global economic growth projection for 2022 to 2.6 per cent from 3.6 per cent due to shocks from the Ukraine war and changes in macroeconomic policies that put developing countries particularly at risk. The report said while Russia will experience a deep recession this year, significant slowdowns in growth are expected in parts of Western Europe and Central, South and South-East Asia.
An India-Japan joint statement said the two leaders expressed serious concern over the conflict and the unfolding humanitarian crisis in Ukraine.
During his two day visit, Modi is expected to seal a raft of major deals in defence, nuclear energy and hydrocarbons sectors to further cement their 'special and privileged strategic ties'.
Sources had earlier said Modi and Putin would also deliberate on impact of US sanctions on import of crude oil from Iran.
'The US will not want to tangle with China landwards.' 'Nor will the US confront the Chinese navy seawards on India's account.'
Russian firms expand their footprint in India. And take bigger steps to do business with India's private sector.
India believes no country would emerge victorious in the Russia-Ukraine war as all will suffer losses and there will be a "more serious" impact on developing and poor countries, Prime Minister Narendra Modi said on Monday after holding talks with German Chancellor Olaf Scholz as both leaders reiterated the need for an immediate cessation of hostilities.
'Indian diplomacy in West Asia under the present government has been a success story -- and with Saudi Arabia in particular,' says Ambassador M K Bhadrakumar.
'The big power struggle in faraway Europe erupted at a most critical juncture when India has been increasingly sceptical about American policies and statesmanship,' argues Ambassador M K Bhadrakumar.
Russia is among the top buyers of Indian tea, accounting for about 18 per cent of the industry's total exports.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances