The rupee slumped 5 per cent in 2025 as persistent capital outflows from foreign investors, alongside heightened dollar demand from importers, making it one of the worst-performing Asian currencies.
Indian benchmark indices Sensex and Nifty experienced a decline due to renewed geopolitical concerns in the Strait of Hormuz, a strained US-Iran ceasefire, and the rupee hitting a record low against the US dollar.
India's forex reserves jumped $8.663 billion to hit a new all-time high of $725.727 billion in the week ended February 13, the RBI said on Friday.
India possesses two months of fuel stockpiles and faces no supply concerns despite global energy disruptions, according to Oil Minister Hardeep Singh Puri. However, state-run fuel retailers are incurring losses of up to Rs 1 lakh crore in a single quarter due to elevated crude prices and unchanged retail fuel prices, raising questions about the sustainability of these losses.
Moody's Ratings has downgraded India's growth forecast for financial year 2026-27 (FY27) to 6 per cent from 6.8 per cent, attributing the revision to weaker consumption and industrial activity, elevated energy prices, and rising input costs stemming from the West Asia conflict.
India's forex reserves dropped by $6.71 billion to $717 billion during the week ended February 6, the RBI said on Friday.
Indian benchmark indices Sensex and Nifty closed higher, with the Sensex climbing 355.90 points, driven by positive state election results and better-than-expected Q4 earnings, despite ongoing geopolitical concerns.
The total reserves increased to $701.3 billion on the back of a rise in foreign currency assets which increased by $9.6 billion to $560 billion during the reported week.
Indian benchmark indices Sensex and Nifty rebounded in early trade after three days of decline, driven by a rally in Sun Pharma following its USD 11.75 billion acquisition of US-based Organon & Co, alongside a positive trend in global equity markets.
Indian benchmark equity indices, Sensex and Nifty, closed lower due to investor caution over rising bond yields, a weaker rupee, and fresh fuel price hikes, which have revived inflation concerns.
Stock markets are likely to trade in a range-bound manner in a holiday-shortened week where trading activity of foreign investors, currency movement and global macroeconomic data announcements are expected to drive sentiments, analysts said. Several global markets may see subdued activity on account of Christmas and New Year holidays, an expert said.
The Indian rupee crashed to a record closing low against the US dollar due to rising global crude oil prices, a strengthening dollar, and geopolitical tensions in the Middle East.
Foreign Ministers from Pakistan, Saudi Arabia, Turkiye, and Egypt convened in Antalya to explore avenues for enhanced cooperation across various sectors of mutual interest, reaffirming their commitment to regional peace and stability.
Delhi must now purge the delusional hopes of being a 'counterweight' to China in the US calculus, argues Ambassador M K Bhadrakumar.
Inflation data, trading activity of foreign investors and global trends would dictate sentiment in the stock market this week, according to analysts.
The contraction in total reserves was driven by a fall in gold reserves, which dropped $13.49 billion to $117.19 billion during the reported week.
The Enforcement Directorate has accused West Bengal Chief Minister Mamata Banerjee of obstructing its investigation into a Rs 2,700-crore coal smuggling case, alleging she used state machinery to halt a search of an I-PAC office in Kolkata.
The Reserve Bank of India (RBI) is exploring ways for Russian trade counterparts to use accumulated Indian rupees (INR) for imports or capital investments in India, aiming to boost INR-Rouble transactions and reduce reliance on the US dollar.
Pakistan is playing a key role in facilitating talks between the US and Iran, but the future of these negotiations remains uncertain. Despite ongoing diplomatic efforts, no dates have been set for a second round of discussions.
Indian benchmark indices, Sensex and Nifty, saw a significant rebound in early trade, driven by a decline in crude oil prices. This drop followed US President Donald Trump's announcement of progress in negotiations with Iran towards an agreement to end the war, leading to a temporary pause in 'Project Freedom' to escort ships through the Strait of Hormuz. Track Nifty 50 and BSE Sensex performance and key global triggers.
Rupee slumped 69 paise to an all-time low of 92.18 against the US dollar in early trade on Wednesday, as a sharp spike in crude oil prices amid geopolitical tensions following the escalation of the US-Iran conflict weighed on investor sentiment.
The Reserve Bank of India on Friday proposed to allow banks to lend to Real Estate Investment Trusts (REITs) with certain prudential safeguards to deepen the financing pool for the real estate sector.
Indian benchmark indices Sensex and Nifty experienced declines due to a sharp rally in crude oil prices, continuous foreign fund outflows, and geopolitical uncertainties. Regulatory developments in the banking sector, particularly the implementation of the Expected Credit Loss (ECL) framework, also contributed to the selling pressure.
The United States Central Command (CENTCOM) has announced that American forces are maintaining a strict maritime restrictive operation in the region, continuing to enforce a blockade against Iranian ports.
Researchers at CSIR-NCL have developed a technology for producing dimethyl ether (DME) as an alternative to liquefied petroleum gas (LPG), potentially reducing India's reliance on imports and enhancing energy security.
Indian companies are increasingly turning to share buybacks as a preferred payout strategy, driven by recent tax framework changes that make them more tax-efficient for non-promoter shareholders and a fall in stock prices.
Indian stock markets experienced a second consecutive day of losses, with the Sensex tumbling 852 points, as crude oil prices surpassed USD 100 per barrel due to stalled US-Iran negotiations and escalating geopolitical tensions in West Asia.
Prime Minister Narendra Modi will visit the UAE, the Netherlands, Sweden, Norway and Italy to deepen India's bilateral ties amid geopolitical changes.
Vietnam is an emerging regional power and a closer relationship with Hanoi is closely aligned with Prime Minister Narendra Modi's Act East Policy, points out Dr Rajaram Panda.
Iranian Foreign Minister Abbas Araghchi visited Pakistan for the second time in three days amid uncertainty surrounding potential peace talks with the US. The visit follows discussions in Oman regarding regional security and efforts to resolve the Iran-US conflict.
The Indian rupee rebounded against the US dollar after the Reserve Bank of India (RBI) restricted banks' net open positions in dollars. This move prompted banks to sell dollars, providing temporary support for the rupee amidst ongoing geopolitical tensions and rising oil prices.
Indian equity benchmarks Sensex and Nifty surged nearly 1 per cent, driven by strong earnings reports from FMCG and auto sectors, alongside a rally in Asian markets and signs of de-escalation in geopolitical tensions.
Indian markets on Dalal Street rallied sharply as easing tensions in the US-Iran conflict and stable oil prices boosted sentiment. Track Nifty50 and BSE Sensex performance and key global triggers.
Athletics bodies of India and Russia are exploring a long-term cooperation in organising training camps, grassroots development works and mutual participation of their players in their respective competitions.
Indian benchmark equity indices, Sensex and Nifty, experienced a decline in early trade, ending a three-day rally, primarily due to heavy selling in IT stocks and concerns over prolonged instability in West Asia.
Indian equity benchmark indices Sensex and Nifty tumbled over 1 per cent for the third consecutive day, driven by a sharp rally in crude oil prices, massive selling in IT stocks, and unabated foreign fund outflows amid ongoing geopolitical tensions in the Middle East.
Himanta Biswa Sarma's return as Assam's Chief Minister underscores the BJP's increasing dominance in the northeast, marked by both development and divisive policies.
Iran has submitted a fresh proposal to regional intermediaries offering to cease its military operations in the Strait of Hormuz, contingent upon a complete cessation of hostilities and the removal of the US blockade on Iranian maritime hubs.
Russian Foreign Minister Sergei Lavrov will visit Beijing to discuss the West Asia conflict, the Strait of Hormuz blockade, and bilateral relations with Chinese leaders.
A Pakistani delegation, led by Army Chief Field Marshal Asim Munir, has arrived in Tehran to mediate the ongoing conflict between the US and Iran, following initial talks in Islamabad.
