India's foreign exchange reserves saw a significant drop of USD 8.094 billion, settling at USD 688.894 billion for the week ending May 15, as the Reserve Bank of India intervened in the forex market and global events like the Middle East conflict impacted the rupee.
Top leaders from the US, Iran, and Pakistan, along with other nations, have gathered in Switzerland for high-level talks aimed at restoring peace in West Asia. These negotiations follow a recently signed Memorandum of Understanding between the US and Iran, initiating a 60-day window for a deal. Discussions focus on Iran's nuclear programme and the fragile interim peace deal, amidst renewed tensions and the fluctuating status of the Strait of Hormuz.
India has expressed firm opposition to attacks on merchant shipping amidst the ongoing Iran conflict, revealing that several Indian nationals have died or are missing due to these incidents. The nation also called for restraint, de-escalation, and prioritising civilian safety in the region.
India's manufacturing sector experienced a mild recovery in April, with the HSBC India Manufacturing Purchasing Managers' Index (PMI) rising to 54.7 from 53.9 in March. However, inflationary pressures intensified, with input costs increasing at the fastest pace since August 2022, largely attributed to the Middle East conflict.
US Secretary of State Marco Rubio met with Pakistan's Foreign Minister Ishaq Dar amid American demand that countries mediating the peace talks with Iran join the Abraham Accords and establish diplomatic and economic ties with Israel.
Donald Trump expressed optimism about securing an agreement with Tehran to prolong a truce and restore transit through a strategic maritime chokepoint within the next week, even as he criticised political opponents and the media for what he described as their tendency to distort outcomes, even in a hypothetical scenario of complete Iranian military surrender.
Dozens of US planes carrying ammunition landed in Tel Aviv, raising concerns about potential strikes on Iran. Negotiations between the US and Iran remain deadlocked over key issues, with both sides issuing fresh demands and warnings.
'It will take a long time to recover from the impact of this war.'
A recently finalised peace deal between the US and Iran, set to be signed on June 19, is expected to significantly benefit India's economy by boosting exports to West Asia, stabilising the rupee, and easing inflationary pressures, according to exporters and experts.
US President Donald Trump on Sunday said that the Israeli strikes on Lebanon's capital of Beirut "should not have happened", warning that such escalation could jeopardise the peace agreement with Iran to achieve a complete solution to the West Asia conflict, which, according to him, is within reach.
Much will depend on how the protagonists use the current interlude to work proactively for the beginning of a durable settlement or, on the contrary, prepare for a new round of escalation, points out Ambassador M K Bhadrakumar.
Indian benchmark indices Sensex and Nifty closed flat, paring early gains due to renewed hostilities between the US and Iran, which unsettled investor sentiment and led to profit booking in metal, oil & gas, and telecom shares.
India's trade with West Asia saw a significant decline of over 28% in April, marking the second consecutive month of contraction. This downturn is attributed to severe shipping disruptions stemming from the ongoing conflict involving the US, Israel, and Iran, particularly impacting the crucial Strait of Hormuz waterway.
'Actual implementation of the 14-point agreement is proving hard to achieve let alone striking and sustaining a long-term treaty or deal.'
The Enforcement Directorate has launched a foreign exchange violation investigation against Vedanta Group, conducting searches at its premises in multiple locations.
The Reserve Bank of India (RBI) is anticipated to make its highest-ever dividend payment to the government this year, providing a significant fiscal boost to address challenges, including those stemming from the ongoing Middle East crisis.
Reliance Industries' digital arm, Jio Platforms, may see its initial public offering (IPO) delayed to the second half of fiscal 2027, according to CreditSights. The delay is primarily attributed to ongoing geopolitical tensions in the Middle East, which could impact market conditions and investor sentiment.
Amritpal Singh Mehron, the main suspect in the murder of social media influencer Kanchan Kumari, has been arrested after being deported to India from the Middle East.
The Narcotics Control Bureau has busted an international drug syndicate involved in trafficking Captagon, seizing approximately 227.7 kg of the 'jihadi drug' worth Rs 182 crore.
The Middle East-India route is hotting up in December as several airlines are busy raising the number of flights.
India has expressed strong concerns over attacks on commercial ships in the Strait of Hormuz, citing its importance to India's energy and economic security. Ambassador Yojna Patel highlighted the need to respect international law and ensure the safety of seafarers, while also addressing broader Middle East issues including the situation in Gaza and Lebanon.
Pakistan Prime Minister Shehbaz Sharif clarified that the recent Memorandum of Understanding (MoU) signed between the US and Iran does not include provisions regarding Tehran's ballistic missile programme. This statement followed talks with Iranian President Masoud Pezeshkian, with Sharif emphasising Iran's right to its defence capabilities and Pakistan's role as a mediator in the US-Iran peace process.
S&P Global Ratings has increased India's GDP growth forecast for the next fiscal year to 7.1 per cent, citing private consumption, investment, and exports as key drivers. However, the agency also cautioned that the conflict in the Middle East could strain India's fiscal position due to higher energy prices.
A new report suggests that prolonged conflict in the Middle East could significantly impact India's GDP growth and inflation.
From the Sensex basket, Tata Motors, State Bank of India, Tata Steel, Power Grid, NTPC, Bajaj Finserv, Bajaj Finance and Asian Paints were the major laggards.
Yash's Toxic: A Fairy Tale For Grown-Ups has been postponed to June 4, due to the escalating Middle East conflict.
The United States military has intercepted and destroyed two Iranian attack drones that posed an immediate hazard to commercial shipping lanes in the Strait of Hormuz, according to an official statement by the US Central Command late Saturday.
India's services sector growth reached a five-month high in April, with the HSBC India Services PMI Business Activity Index rising to 58.8, primarily driven by robust domestic demand and a shift from international to local suppliers amidst the West Asia crisis.
Director Rahul Dholakia's film, which is based on the troubles in the Kashmir valley, will not be screened in Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates.
The US Senate passed a resolution directing then-President Donald Trump to withdraw American forces from the conflict with Iran. This bipartisan vote, though largely symbolic as a concurrent resolution, highlighted congressional concerns over potential escalation and a desire to limit presidential military authority without legislative approval.
India's manufacturing sector growth slowed to a four-year low in March, impacted by cost pressures, competition, market uncertainty, and the Middle East conflict, according to the HSBC India Manufacturing PMI.
US Secretary of State Marco Rubio said that discussions aimed at halting the conflict with Iran have shown "some slight progress," while simultaneously echoing Washington's dissatisfaction with its NATO allies.
The India-Oman free trade agreement, operationalised on June 1, is set to create significant export opportunities for India's labour-intensive and value-added sectors, including textiles, gems and jewellery, and marine products, while also strengthening energy security.
US President Donald Trump claimed on Tuesday that Tehran has consented to long-term, comprehensive monitoring of its nuclear infrastructure. Concurrently, Washington will ease shipping constraints in the Strait of Hormuz and release bound financial concessions, subject to stringent American oversight.
The United States has announced new sanctions targeting Iran's 'shadow oil economy,' accusing Tehran of using illicit oil revenues to fund the Islamic Revolutionary Guard Corps (IRGC) and its regional activities.
Indian benchmark indices Sensex and Nifty rebounded in early trade, tracking a recovery in global equity markets and an easing of hostilities between Israel and Iran, after a sharp fall in the previous session.
An IndiGo flight from Delhi to Manchester was forced to return to its origin due to last-minute airspace restrictions related to the ongoing situation in West Asia. The flight was using a leased Boeing 787 aircraft.
'We may be able to wind back some of the schedule reductions we'd taken in recent months.'
