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Indian real estate attracts record institutional investments in January-June period at $4.1 billion: Vestian
As automation spreads, India's FMCG companies rethink the size of their workforce
Apparel exports drag India's textile and clothing exports despite growth in textile shipments: CITI
Indian government bonds plummeted early on Tuesday, as fresh strikes in the Gulf obstructed shipping through the Strait of Hormuz, yanking oil higher and triggering a global debt selloff. U.S.-Iran fighting stretched into a third night after a fragile ceasefire collapsed, with both sides reinstating rival blockades of the strait once again. Brent crude climbed 9.6% overnight, its biggest jump in more than six years, and added 1.9% in Asian trade to be at $84.84 per barrel.
Indian investors are increasingly exploring foreign asset classes such as US stocks and exchange-traded funds (ETFs) through Gujarat International Finance Tec-City (GIFT City). According to data from India International Exchange’s (India INX) Global Access Provider (GAP) platform, the total traded value in the June quarter (till June 26) surged more than 80 % quarter-on-quarter (QoQ) to around $1.74 billion. In the March quarter, traded value had risen 34 %. Traded value refers to the total monetary value of all executed transactions.
Sixteen of India’s 129 unicorns have slipped below the $1-billion valuation mark, underscoring the shakeout that followed the funding boom of 2021 and raising a new question for investors: which startups are facing a temporary valuation reset and which risk becoming India’s own zombie unicorns? The debate has gathered pace globally after Stanford University data showed a growing number of US startups once valued at more than $1 billion have either raised capital below their peak valuations or are no longer unicorns.
Investor participation through systematic investment plans (SIPs) strengthened in June, with the mutual fund industry recording the highest net monthly increase in contributing SIP accounts since February 2026. The industry registered 5.55 million new SIPs during the month against 5.06 million discontinuations, resulting in a net addition of 487,000 contributing SIP accounts. The SIP stoppage ratio — the proportion of discontinued SIPs to new registrations — declined to 91.23% from 95.46% in May, the lowest level in four months.
Over the past two years, India’s central bank built one of the world’s largest bearish dollar bets to support a persistently weak rupee. It now faces the challenge of unwinding that position without destabilising the currency market. With a spate of recent measures expected to attract foreign capital, the Reserve Bank of India has started trimming its massive short dollar forward position, a stock of commitments to sell the greenback at a future date. The book had ballooned to a record $106.7 billion in May, as per Bloomberg calculations based on RBI data.
For most of the past two years, a comforting story has taken hold in India's stock market. Foreign portfolio investors (FPIs) have sold relentlessly, yet share prices have held up. Domestic mutual funds (DMFs), fuelled by a torrent of money into systematic investment plans (SIPs), have stepped in as buyers of last resort. The implication is clear: India no longer depends on fickle foreign capital. Retail investors have arrived, absorbed the shock, and stabilised the market. The numbers appear to support the claim. Since September 2024, FPIs have been heavy sellers, culminating in record net outflows of $19.6 billion in 2025-26 (FY26). Domestic institutional investors, meanwhile, bought nearly $96 billion worth of equities.
Foreign investors seem to be turning bullish on Indian equities again with more than $1 billion invested in the last week. Goldman Sachs Group Inc. has projected that these overseas inflows could strengthen further as a stable rupee and improving earnings expectations are encouraging global funds to increase their exposure to Indian equities. The renewed interest from foreign investors could help extend the recovery in the benchmark NSE Nifty 50 index, which has climbed about 8% since touching a one-year low in April. Softer oil prices and the rupee's stability have improved expectations for corporate earnings.
Foreign investors pulled a net $46.1 billion from emerging market equities in June, led by heavy selling in technology-focused markets such as South Korea and Taiwan, according to the latest data from the Institute of International Finance (IIF), highlighting growing caution toward risk assets despite continued appetite for emerging market debt. According to a Reuters report citing the IIF's monthly portfolio flows data, overall portfolio flows to emerging markets turned negative for a second consecutive month, with net outflows of $17.8 billion in June.
Japan aims to raise the ratio of unlisted shares, real estate and other alternative investments in the portfolio of the Government Pension Investment Fund, the world's largest pension fund, the Nikkei said on Sunday. Finance Minister Satsuki Katayama, who has been trying to boost the weak yen, sparked a jump in the currency and government bond prices on Friday by saying the government aimed to steer the $1.8 trillion GPIF and other state pension funds to "substantially" increase investments in domestic assets.
A decade ago, it was not too difficult to spot a person who had achieved financial success. That success was easily identifiable: a luxury vehicle in the driveway or an expensive watch on the wrist. Or simply a very extravagant lifestyle which was impossible for others to ignore. However, today, with growing frequency, the subject of “wealth” seems to be shifting. While luxury goods will always hold some degree of aspirational value, many young professionals are beginning to value something far less visible — but arguably far more powerful. Instead of asking “What can I afford to buy?”, the question is increasingly becoming, “What kind of choices can my money give me?” While this may not mean you are looking to quit your job or get rich sooner, it represents a larger paradigm shift in how we view our financial security. This paradigm shift emphasizes flexibility, resilience, and the ability to make decisions with confidence when navigating uncertainty. Experts believe this way of thinking could fundamentally alter what financial success means over the coming years.
Investor participation through systematic investment plans (SIPs) strengthened in June, with the mutual fund industry recording the highest net monthly increase in contributing SIP accounts since February 2026. The industry registered 5.55 million new SIPs during the month against 5.06 million discontinuations, resulting in a net addition of 487,000 contributing SIP accounts. The SIP stoppage ratio — the proportion of discontinued SIPs to new registrations — declined to 91.23% from 95.46% in May, the lowest level in four months. Monthly SIP contributions rose to Rs 31,781 crore, the second-highest on record after the all-time high of Rs 32,087 crore in March. Supported by stronger inflows and improved market performance, the mutual fund industry’s assets under management (AUM) increased to a record Rs 82.22 lakh crore in June from Rs 81.58 lakh crore in May. The improvement in SIP activity coincided with a rebound in equity mutual fund inflows, which rose more than 26% after nearly 40% decline in May. Mid-cap and small-cap funds attracted the highest net inflows of Rs 6,090 crore and Rs 5,602 crore, respectively. While inflows into mid-cap schemes surged around 40 per cent month-on-month, those into small-cap funds rose about 13 per cent. The categories also benefited from gains of 1.4% and 5.3%, respectively, in their benchmark indices during the month.
The government on Friday exempted units operating in the International Financial Services Centre (IFSC) at GIFT City from obtaining a licence under Section 11 of the Coastal Shipping Act, 2025 for chartering foreign vessels for export-import (EXIM) and international trade operations, in a move aimed at strengthening India's maritime leasing and financing ecosystem. The exemption, notified by the Ministry of Ports, Shipping and Waterways under the Coastal Shipping Act, 2025, removes the requirement for eligible IFSC units to obtain a licence from the Director General of Shipping for chartering foreign vessels for operations covered under Section 11. According to the government, the reform is expected to strengthen GIFT City as a globally competitive maritime leasing and financing hub, facilitate maritime investments and support India's emergence as a leading maritime services centre. The government said the move would simplify the regulatory framework governing the chartering of foreign vessels for international shipping operations and is expected to encourage maritime leasing, ship financing and ship-owning activities through GIFT City while fostering a globally competitive business environment for maritime enterprises.
Morgan Stanley’s Lisa Shalett has urged investors to remain cautious on semiconductor stocks, arguing that signs are emerging that chipmakers’ pricing power is weakening despite the AI-driven rally. “We are seeing the AI data center tech stack, if you will, being re-engineered to include lower cost proprietary chips that many of the hyperscalers are now designing themselves,” Shalett, chief investment officer at Morgan Stanley Wealth Management, said, according to a Bloomberg report. Her comments come as South Korean chipmaker SK Hynix began trading on the Nasdaq after raising $26.5 billion in the largest-ever US initial share sale by a foreign company. The stock has been volatile in its home market, falling 26% from last month’s peak. “There is ample capital still available broadly to this trade,” Shalett said. However, she noted that the semiconductor industry is witnessing a familiar trend: “Where supply chains get bottlenecked and folks are extracting excess rents as some of the memory chip guys are, the engineers get to work” to develop lower-cost alternatives.
A sharp retreat from tech-heavy equities in South Korea and Taiwan fuelled net emerging market stock outflows of $46.1 billion from foreign investor portfolios in June, banking trade group data showed, contributing to a second straight month of overall portfolio losses for developing economies. The monthly report from the Institute of International Finance said on Friday foreign investors pulled $30.5 billion from South Korean stocks - the biggest outflows in more than 25 years - while Taiwan equities bled $18.3 billion. However, the report showed a sharp split between equity and debt flows, with bonds pulling in $28.3 billion last month even as overall portfolio flows swung to a net loss of $17.8 billion. "Investors are still willing to lend to EM," IIF chief economist Jonathan Fortun wrote in the report. "They are less willing to add broad equity risk."
Global equity funds attracted their largest weekly inflow in three weeks in the week to July 8, as strong demand for AI-linked technology products and cooling expectations for Federal Reserve rate hikes boosted risk appetite. Global equity funds drew a net $49.23 billion in inflows during the week, marking their largest weekly inflow since June 17, LSEG Lipper data showed. Upbeat June manufacturing activity reports last week pointed to strong demand for AI-related products, including chips and computers. Expectations for robust AI-sector earnings also supported sentiment. The technology sector is forecast to post 54.2% year-on-year growth in second-quarter net income, according to LSEG data based on the mean of analysts' estimates.
Amid concerns over the impact of the West Asia conflict on corporate earnings, Chirag Setalvad, head–equities at HDFC AMC, says the setback is likely to be short-lived and India remains well placed to deliver healthy earnings growth over the medium to long term. He tells Kushan Shah that while stock selection remains a challenge, there are opportunities in both large and small caps. Excerpts: How do you assess the current state of the equity markets? Large-cap stocks are reasonably valued, while mid- and small-caps continue to trade at a premium to their long-term averages
Over the past two years, India’s central bank built one of the world’s largest bearish dollar bets to support a persistently weak rupee. It now faces the challenge of unwinding that position without destabilizing the currency market. With a spate of recent measures expected to attract foreign capital, the Reserve Bank of India has started trimming its massive short dollar forward position, a stock of commitments to sell the greenback at a future date. The book had ballooned to a record $106.7 billion in May, as per Bloomberg calculations based on RBI data. The balancing act lies in the pace and extent of the unwind.
India's private credit industry has the potential to expand to USD 100 billion by 2050 from the current USD 25-30 billion, National Pension System (NPS) Trust Chairperson Dinesh Kumar Khara said on Thursday. This growth will be driven by the growing maturity of the ecosystem and expanding domestic capital pools, the former SBI chairman said at an event by IVCA here. "Perhaps it can become a USD 100 billion industry at least by the year 2050. That is what my expectation is," Khara said at the IVCA Private Credit Summit 2026.
Shifting geopolitical alliances are pushing sovereign wealth funds to place greater emphasis on strategic national priorities — from resilient infrastructure to key domestic industries — alongside investment returns, a study released on Friday showed. The study by Spain-based IE University found sovereign wealth funds managing more than $15 trillion are playing a growing role in funding artificial intelligence as governments increasingly treat AI and semiconductors as strategic assets. This fragmented world has had an impact," said Javier Capapé, editor of the report and director of sovereign wealth research at IE University. "Sovereign wealth funds are more and more used by governments to deploy national strategies, develop stronger positions in the global value chains.
Bloomberg has introduced a new electronic trading system that allows global investors to buy and sell Indian govt bonds more easily, marking an important step in opening up India's bond market to the world. The company said it has completed its first fully-electronic trade in Indian govt bonds using this system. The new workflow enables foreign portfolio investors to access bond market liquidity directly through the Bloomberg Terminal, a platform widely used by financial institutions globally.
While domestic inflows through mutual funds are seen to have contributed significantly in providing stability to the Indian markets in the last two years, their total assets now have surpassed the holdings of foreign investors for the first time. According to monthly data shared by NSDL, assets under custody (AUC) of domestic mutual funds in Indian markets of Rs 76.41 lakh crore surpassed the holdings of FPIs, Rs 76.22 lakh crore, as of June 2026. The cumulative AUC includes holdings in equity, debt and hybrid securities, mutual funds, AIFs, gold and silver ETFs and ETCDs (Exchange Traded Currency Derivatives). Debt and Passive Inflows While the FPI holding in direct equity continues to be higher, comparatively higher assets held by domestic mutual funds in debt mutual funds, passive mutual funds and gold and silver ETFs enabled them to surpass total FPI holdings.
Indian government bonds were hemmed in to a narrow range on Thursday, after a sharp selloff in the previous session, when surging oil prices and higher U.S. Treasury yields pressured local debt on signs that a U.S.-Iran interim peace deal is unraveling. The U.S. military said on Wednesday it launched fresh strikes on Iran to keep the Strait of Hormuz open to shipping, prompting Iranian attacks on Kuwait and Bahrain, both of which host U.S. bases, denting hopes of a quick end to the war. Benchmark Brent crude surged more than 5% on Wednesday and added 1.15% in Asian trade to $78.92 a barrel. The 10-year U.S. Treasury yield rose about 4 bps in the previous session, pushing higher to 4.5792% in Asian trade.
Non-resident Indians (NRIs) and Overseas Citizens of India (OCIs) have the option of investing in Foreign Currency Non-Resident- FCNR(B)- and Non-Resident External Account (NRE) products such as fixed deposits (FDs) to generate a stable income from India. Both FCNR(B) and NRE FDs come with varied interest rates for different tenures, are tax-exempt and can be fully repatriated without any limits are tax-exempt and can be fully repatriated without any limits set by the Reserve Bank of India (RBI). However, they do have key differences.
Indian microfinance lenders are coming under renewed pressure as weak monsoon prospects and rising prices threaten rural incomes, increasing default risks across the sector's $35 billion loan portfolio, reported Bloomberg. “A weak monsoon could slow loan growth as lenders tighten underwriting standards and borrowers’ repayment capacity deteriorates,” Geeta Chugh, sector lead for financial institutions at S&P Global Ratings, said in an interview. About 20% of microfinance borrowers have loans from more than two lenders, she estimated, adding that this segment has begun posting much higher delinquency rates than borrowers with few lending relationships.
Japanese government bond (JGB) yields surged on Wednesday, with long-term borrowing costs climbing to their highest levels in nearly three decades, as investors grew increasingly concerned about persistent inflation and the government's expansive spending plans, according to Reuters. The benchmark 20-year JGB yield rose 4 basis points to 3.85%, its highest level since July 1996, while the 30-year yield gained 3 basis points to 3.97%.
Indian government bonds slip in early trades on Wednesday, after a flare-up in Middle East tensions pushed oil prices and Treasury yields above key near-term psychological levels. The benchmark 6.94% 2036 bond yield was at 6.7246% as of 10:00 a.m. IST, after closing at 6.6958% in the previous session. Bond yields move inversely to prices.
Foreign Portfolio Investors or FPIs are back on Dalal Street! FPIs turned buyers of financial stocks in the second half of June, purchasing shares worth Rs 14,634 crore after selling Rs 11,263 crore during the first half of the month. The reversal was driven by inflows related to the rebalancing of global equity indices as well as value buying. It marked the largest fortnightly investment by foreign investors in the Financial sector in 2026 and their first net buying in the segment since the second half of February.
GENEVA: The AI boom has helped drive investments in intangible assets such as software, data and research to a record high in 2025, the United Nations' patent and innovation agency said Wednesday. These investments, which encompass research and development, software and data, brands, design and organisational know-how, represent a large and growing share of the global economy, the World Intellectual Property Organization said.
Gulf sovereign funds invested $1.7 billion in India in the first half of 2026, defying heightened geopolitical tensions due to the Iran war and fears the conflict would curb their appetite for overseas deals. It was the most for half a year after 2024. The region’s share in overall investment in the country by sovereign wealth funds (SWFs) and public pension funds (PPFs) during the period nearly doubled since then, underscoring their growing role as a long-term capital.
India’s Unified Payments Interface (UPI) will be integrated with Indonesia’s payment system, Prime Minister Narendra Modi announced, saying the move will make doing business and travelling between the two countries easier. "We are delighted that India’s UPI is set to be integrated with Indonesia’s payment system. This will boost both the ease of doing business and the ease of travel," addressing a joint press meet with Indonesian President Prabowo Subianto, the Prime Minister said.
Indian government bonds traded range-bound early Tuesday, pausing a three-session rally, as traders awaited a large state-debt auction. The benchmark 6.94% 2036 bond yield was at 6.6816% as of 10:45 a.m. IST, near a four-month low and barely changed from Monday's close. The 10-year yield fell 7 basis points in the last three sessions. Yields move inversely to prices.
Indian government bonds rose on Monday, tracking firmer U.S. Treasuries, while improved monsoon conditions and strong foreign demand underpinned sentiment. The U.S. benchmark 10-year yield snapped a four-day rise in Asian trade, ahead of the Federal Reserve's policy meeting minutes, due Wednesday, with traders looking for further cues on the interest-rate path. It was last at 4.4733%.
Overseas funds are lately buying big into Indian debt. They, however, don't seem to share the same enthusiasm for local equities - at least, not yet. Foreign portfolio investors (FPI) invested a record ₹41,773 crore in June in securities that are included in the fully accessible route (FAR), CCIL data showed. On the other hand, they withdrew ₹49,340 crore from Indian equities, NSDL data showed. This year, on a net basis, FPI inflows into debt stood at ₹51,178 crore, while equities showed an aggregate outflow of ₹2.73 lakh crore until last week.
Abu Dhabi's Mubadala Investment Co. is opening up one of its largest investment Dusinesses to outside investors for the first time, betting on its ability to attract nstitutional capital as demand for alternative lending rises. The wealth fund is transferring a $25 billion credit portfolio to its alternative asset manager Mubadala Capital under a long-term management agreement that will allow the platform to raise third-party capital for the first time. Mubadala will commit an additional $4.65 billion to support expansion.
On paper, 2025 was a spectacular year to be alive, personal wealth around the world climbed at its fastest clip since 2017, due to roaring stock markets and soaring asset prices. But peel back the headline number, there is an interesting story. According to UBS’s latest Global Wealth Report, most of that windfall never reached ordinary households at all. It piled up at the very top. The bank’s figures put global personal wealth growth at 10.8% in dollar terms last year, more than double the pace of 2024, and the third consecutive year of expansion.
India's bond market today looks vastly different from what it did a decade ago. Once dominated by institutional investors and traditional debt issuances, the market has steadily evolved into a broader ecosystem supported by regulatory reforms, digital platforms, innovative products and a growing pool of investors. The transformation is visible across participation, market depth and product innovation. While the market has become significantly larger and more accessible, experts believe there is still work to be done to improve liquidity, attract greater foreign participation and create a more vibrant market for lower-rated corporate debt.
People spend years carefully building wealth through fixed deposits, mutual funds, insurance policies and shares. But life has a way of getting in the way. Investors move cities, change banks, forget old investments or simply lose track of paperwork. Sometimes, the original investor passes away without telling family members about every financial asset they owned. Over time, these forgotten investments can become "unclaimed". Many people assume that once money is transferred to government-managed funds, it is gone forever. Fortunately, that is not the case.
India's foreign exchange reserves declined by $5.65 billion to $666.93 billion in the week ended June 26, 2026, according to data released by the Reserve Bank of India (RBI) on Friday. The drop in the reserves came after it rose by $963 million to $671.63 billion in the earlier week ended June 19, 2026. Foreign currency assets (FCAs) — the largest component of the reserves — declined by $150 million to $5541.07 billion during the week.
Top officials of Reserve Bank of India (RBI), in a submission to a parliamentary panel, backed a containment strategy leaning towards prohibition, recommending that banks and other regulated financial institutions remain completely insulated from crypto assets and privately issued stablecoins. RBI deputy governor Rohit Jain and executive director P Vasudevan gave submissions on behalf of the central bank to the Parliamentary Standing Committee on Finance headed by BJP MP Bhartruhari Mahtab.
The Reserve Bank of India on Thursday told a parliamentary panel that virtual digital assets like cryptocurrency are a threat to an emerging economy like India and such assets should not be legalised in the country. The RBI also told the Parliamentary Standing Committee on Finance, headed by BJP member Bhartruhari Mahtab, that China and Qatar are among the countries that have banned such financial activities, while Europe has allowed virtual digital assets in a very stringent, regulated manner. The committee held the meeting with the representatives of the RBI on 'A Study on Virtual Digital Assets (VDAs) and Way Forward'.
Foreign investors continued to exit Indian equities for yet another month, with June witnessing withdrawals of Rs 49,340 crore $5.16 billion), as global and domestic factors continued to weigh on investment sentiment. The latest sell-off has pushed cumulative Foreign Portfolio Investor (FPI) outflows from Dalal Street to Rs 2.7 lakh crore in 2026 so far, according to data from the Central Depository Services (India) Ltd. The amount has already crossed the Rs 1.66 lakh crore withdrawn during the entire 2025 calendar year.
The Reserve Bank of India (RBI) has restored the definition of “indirect receipt of public funds” in its master directions for classifying upper-layer NBFCs. In a footnote added on Wednesday, effective July 1, 2026, the RBI reintroduced the definition of indirect receipt of public funds as “funds received not directly but through associates and group entities which have access to public funds”. The omission of this clause first mentioned in an April 29 circular had been taken interpreted by some observers as a partial relief to Tata Sons which has been opposing listing. But the reprieve has proved to be short-lived.
South Korea’s currency, the Won, is falling close to its weakest level since the 2008-09 global financial crisis. Normally, a country that is selling more goods to the world would see its currency become stronger. But South Korea is seeing the opposite. As reported by Bloomberg, the Won weakened to around 1,555 against the US dollar and briefly touched 1,559.10 on Wednesday. Last month, it had slipped to 1,562.20, its weakest level since March 2009. Foreign investors sold a net 1.46 trillion won (about $938 million) worth of stocks on Wednesday. This marked the eighth straight day of selling, adding to pressure on the country’s currency.
South Korean stocks extended their steep decline on Thursday, with the benchmark index tumbling as much as 8.2% (687 points), marking a second straight day of losses and taking the cumulative drop over the two sessions to 10%. The selloff gathered pace after Meta Platforms Inc.'s plans to sell computing power raised concerns about excess AI capacity, triggering a sharp fall in semiconductor stocks. Weakness in U.S. technology shares overnight further weighed on sentiment across Asian markets. In the U.S., chipmakers Micron Technology Inc. and Sandisk Corp. had both ended the previous session down more than 10%.
Bloomberg's index committee is expected to meet mid-July to review whether Indian government bonds should be included in its Global Aggregate Index, with market participants anticipating a positive decision from the panel. Tax exemptions on interest income and capital gains have been a key factor in Bloomberg's consideration of including Indian bonds in its index and expectations of Indian debt's inclusion in the gauge have driven the recent rally in the bond market.
Average daily UPI volumes rose to 75.7 crore in June from 74.8 crore in May, up 1.2% month-on-month, while average daily value held steady at Rs 96,405 crore against Rs 96,465 crore, down 0.1%. According to National Payments Corporation of India, this stability in daily run rates came even as headline monthly numbers softened after a strong May.
Private equity and venture capital (PE-VC) investments fell 5% year-on-year during the Jan-June period of CY2026 to $17.5 billion, compared with $18.4 billion in the corresponding period of CY2025. PE-VC investments, excluding those in the real estate sector, remained flat at $1.9 billion in June 2026, according to data released by research firm Venture Intelligence on Wednesday.
China is intensifying its scrutiny of investments overseas with broad "national security" regulations taking effect from Wednesday, at a time of rising tech competition with Washington. The new rules, originally announced on June 1, provide authorities with a sweeping legal framework to influence flows of capital and personnel across China's borders. Beijing sees fields such as artificial intelligence, computer chips and green technology as economically and strategically vital and has vowed to promote their domestic development.
Fintech lenders continued to tighten their grip on India's small-ticket personal loan market, accounting for more than half of all loans below Rs 50,000 by March 2026, even as rising delinquencies signalled growing stress in the segment. According to the Reserve Bank of India's latest data from the Financial Stability Report, fintech firms held a 56.8% market share in personal loans below Rs 50,000 as of March 2026, up on the back of a 41.6% year-on-year expansion in credit—more than double the overall segment growth of 20.1%.
Net investment by foreign portfolio investors (FPIs) in the domestic debt market surpassed their equity selloff in June, driven by strong demand for government securities following a series of measures announced by the Reserve Bank of India and the central government to attract foreign capital. FPIs infused a net ₹55,518 crore into the debt market in June as of Monday, while remaining net sellers in equities -- with outflows of ₹49,340 crore -- according to data from National Securities Depository Ltd (NSDL). Debt inflows were led by investments under the general limit, which recorded a net inflow of ₹30,620 crore during the month, followed by ₹21,652 crore through the fully accessible route (FAR). Investments under the voluntary retention route (VRR) stood at ₹3,246 crore.
After sustained intervention by the Reserve Bank of India's (RBI) to support the rupee during a period of heightened volatility triggered by the Middle East conflict, the central bank's net short forward position in the foreign exchange market widened to a record $106.6 billion in May, up from $95 billion in April, ET reported. The rupee had slipped to a record low of 96.96 against the US dollar on May 20. According to market participants, repeated RBI intervention prevented the currency from breaching the psychologically important 97-per-dollar mark.
Indian bonds swung higher for a fifth straight session on Monday, supported by a pause in U.S.-Iran hostilities after renewed strikes over the weekend, though a widening monsoon deficit capped gains. India's benchmark 10-year yield settled nearly 2 basis points lower at 6.7515%, falling for a fifth straight session and hovering at its lowest since March 20. Bond yields move inversely to prices.
Indian government bonds rose on Tuesday, with the benchmark 10-year yield on track for its biggest monthly decline in nearly seven years, supported by lower oil prices and a pickup in foreign buying. The yield on the benchmark 6.94% 2036 bond was at 6.7223% by 11:45 a.m. IST, its lowest since March 18. It has declined 28 basis points in June, its steepest monthly fall since July 2019. Indian debt has gained momentum this month after the Reserve Bank of India introduced measures to attract dollar inflows and support the rupee, while the government removed taxes on foreign investment in government bonds.
Global financial firms are pivoting expansion plans towards South Korea while taking a more measured approach to China and India, according to an industry survey. Firms are also scaling existing businesses and widening product lines in a narrower set of markets, the survey conducted by Asia Securities Industry & Financial Markets Association (ASIFMA) and consultancy firm KPMG showed. Of 34 firms, about two-thirds plan to expand their Asia-Pacific business over the next three years, the survey found. Singapore, Hong Kong, South Korea, China, Japan, India and Taiwan are attracting roughly half of firms' expansion interest.
The Japanese yen has weakened to its lowest level against the US dollar since 1986, a move that is likely to heighten concerns among policymakers and keep market participants alert for the possibility of official intervention to support the currency. During overnight trading in New York, the yen slipped past the 161.95-per-dollar level, falling below the low recorded in July 2024 when Japanese authorities had previously stepped in to stabilize the exchange rate. The currency continued to weaken in Tokyo on Tuesday, touching 162.40 against the dollar despite verbal intervention from Chief Cabinet Secretary Minoru Kihara. Remarks later made by Finance Minister Satsuki Katayama had little immediate effect on the market.
China's central bank launched overnight reverse repo operations on Monday, a move markets interpreted as deepening its control over liquidity conditions and aligning its policy framework more closely with global peers. The People's Bank of China (PBOC) said it conducted overnight reverse repos in open market operations for the first time, offering 300 billion yuan ($44.10 billion) to financial institutions, according to an online statement. The PBOC did not announce the borrowing cost for the overnight reverse repos. The PBOC also said it injected 157.5 billion yuan through seven-day reverse repos, with the rate unchanged at 1.4%, according to the statement.
Private equity (PE) investments in Indian real estate sector fell 23% year-on-year to $1.13 billion in the first half of 2026 against $1.47 billion in H1 of 2025 as the investors are engaging in more selective capital deployment due to elevated global interest rate, tighter financial conditions and heightened geopolitical uncertainty. Despite this decline, the office segment remains the preferred asset class for investment with 89% of PE investments in H1 of 2026, while residential sector received the remaining, said the Knight Frank’s Trends in Private Equity Investment in India: H1 2026 report on Friday.
Indian government bonds advanced early Monday as surging foreign inflows and stable oil prices blunted geopolitical worries re-ignited by a fresh burst of U.S.-Iran strikes over the long weekend. Iran attacked U.S. bases in Kuwait and Bahrain Sunday shortly after President Donald Trump threatened that the Islamic Republic would cease to exist if it did not honor the interim agreement. Diplomacy prevailed later in the day, with both sides agreeing to halt hostilities and resume peace talks.
International mutual funds have offered Indian investors an opportunity to diversify beyond domestic markets and gain exposure to global businesses, sectors, and economic trends. However, in 2026, the conversation around international investing has evolved considerably. Unlike a few years ago, when investors primarily focused on US technology stocks via international funds, today’s landscape is shaped by regulatory limits on overseas investments, changing global market leadership, currency movements, and valuations.
Indian banks are likely to use fresh foreign-currency deposits mobilised from the Indian diaspora to replace expensive funding on their balance sheets before deploying the money into new lending, Axis Bank Chief Executive Officer Amitabh Chaudhry said, as lenders prepare to benefit from a recent Reserve Bank of India (RBI) policy move. "The first thing banks will do is reduce or pause growth in other very expensive deposits for some time," Chaudhry told Bloomberg in an interview. Indian lenders are leveraging the RBI's decision earlier this month to absorb the hedging costs incurred by banks raising dollars overseas, the report noted.
Overseas investors slowed selling of Indian equities in June, with monthly outflows on track to be the lowest in this year's selling months as easing crude oil prices and receding geopolitical tensions helped improve sentiment. February was the only month in 2026 when foreign investors were net buyers. Foreign portfolio investors sold shares worth ₹31,823 crore so far in June, the lowest monthly outflow since ₹31,381 crore in December 2025, according to StockEdge. In February, they bought ₹12,950 crore of equities. " Since the US and Iran reached an initial agreement to reopen the Strait of Hormuz on June 15, foreigners have been buyers in seven out of the eight trading sessions.
The portfolio management services (PMS) industry has witnessed a steady decline in its investor base for three consecutive months amid heightened market volatility and some profit booking, according to data from the Association of Portfolio Managers in India (APMI). The industry saw a monthly decline of 310 clients in May, marking the third consecutive fall after losing 1,038 and 3,738 clients in March and April, respectively. Overall, the total client base has declined from around 217,000 to 212,000. The decline was largely driven by the discretionary segment, where fund managers have complete autonomy over investment decisions. However, assets under management in discretionary PMS saw a marginal increase, rising from Rs 35.45 lakh crore to Rs 36.06 lakh crore.
India’s foreign exchange reserves increased by $963 million to $671.63 billion in the week ended June 19, 2026, according to data released by the Reserve Bank of India (RBI) on Friday. Foreign currency assets (FCAs), the largest component of the reserves, saw a significant dip of $3.07 billion, taking them down to $541.21 billion during the week. However, the decrease in FCAs was more than offset by a sharp increase in gold reserves, which were by $4.1 billion to $107.93 billion.
A drop in oil prices after a fragile U.S.-Iran truce has helped ease immediate inflationary pressure in many emerging markets, but cheaper oil alone will not defuse the threat of civil unrest as the damage to household finances has already been done, analysts say. Countries from Kenya to Indonesia and Bolivia have seen protests in recent weeks linked to energy price hikes and the rising cost of living. Global civil unrest hit a six-year high in the second quarter of 2026, UK-based global risk consultancy Verisk Maplecroft told Reuters. It produces a quarterly index tracking recorded protest events globally over a rolling 12-month period, measuring their frequency, scale and severity.
South Korea’s benchmark index Kospi’s sharp fall on Friday triggered a 20-minute trading halt — the second such instance during the week. However, market experts do not expect any significant spillover impact on Indian markets. “Indian markets are most likely to remain rangebound. The Nifty is likely to move between 23,800 and 24,600,” said Arun Kejriwal, founder of Kejriwal Research. On IT stocks, he said the sector has already witnessed a significant correction. While there could be some further downside, the fall is likely to remain limited.
The Reserve Bank of India (RBI) on Thursday proposed expanding the term money market to include non-bank entities such as NBFCs and corporates, in a move aimed at improving liquidity. Under the proposed guidelines, the RBI has allowed all Indian financial institutions and non-banking financing companies, including housing finance companies, to participate in the term money market both as borrowers and lenders. Meanwhile, the RBI has allowed companies to participate in the term money market just as lenders. These participants are not allowed in the call and notice money market. Stakeholders can submit their feedback by July 17, the RBI said. Currently, banks and standalone primary dealers can only participate in the term money market, with certain prudential limits. In the term money market, participants can borrow for periods longer than 14 days, up to one year.
In 2025–2026, Indians sent more money overseas for investments than in 2024–2025. Indians sent nearly $2.6 billion in FY2025-26, almost 56% higher than $1.69 billion sent in FY2024-25. The RBI’s June 2026 Bulletin reveals a broad pullback across Liberalised Remittance Scheme (LRS) categories. Despite this, the interest in investing abroad seems to be on the rise. The category ‘investment in equity and debt’ has been seeing higher outflows since January this year. February 2026 saw $265.99 million, and March 2026 recorded $440.22 million before April moderated. Still, on a year-to-year basis, April 2026 continued that momentum, with monthly outflows rising 17.30 per cent to $238.63 million from $203.44 million in April 2025.
The Union Health Ministry on Friday proposed easing residual shelf-life norms for imported drugs, requiring them to have a minimum remaining shelf life of 12 months at the time of import instead of the current threshold of more than 60% of total shelf life. The proposal, published as a draft notification for public consultation on June 22, aims to promote ease of doing business while ensuring patients continue to receive quality medicines with adequate usable shelf life. However, the existing requirement of a minimum residual shelf life of more than 60% will continue to apply to biological products and radiopharmaceuticals owing to their specialised nature and public health considerations.
RBI’s recent announcements aimed at attracting NRI dollar deposits have yet to demonstrate their effectiveness. The full impact of these measures will only be visible from RBI’s June 2026 data onwards. The timing of the RBI’s program allowing banks to offer higher rates on FCNR(B) deposits is crucial. According to RBI year-end data, FCNR(B) outstanding balances edged up from $32,809 million at end-FY2024-25 to $33,756 million at end-FY2025-26, a rise of $947 million or 2.89 per cent. Although year-end FCNR(B) balances increased slightly from $32.8 billion to $33.7 billion, the April 2026 data is a matter of concern. The April 2026 FCNR(B) inflows decreased by 39% to $166 million from $272 million in April 2025.
Domestic gold-loan lenders are well ring-fenced from price correction risks despite the recent increase in the regulatory loan-to-value (LTV) cap to 85%, according to a report by Crisil Ratings. These lenders have adopted conservative guards while lending, including keeping the LTV ratio in the range of 65-75% and sticking to prudent risk management practices, it said. “The sector’s resilience, riding on robust processes, such as regular mark-to-market (MTM) valuation of gold, adequate LTV buffers and streamlined auction processes, is reflected in negligible credit cost borne by lenders in this segment over the past decade,” the report stated.
A report shared by Pricewaterhouse Coopers (PwC) said that more than 40% of the new SIPs in India now originate from tier 2,3 and 4 cities, calling the monthly SIP flows of $3 billion a price insensitive equity flow in the Indian markets. Further, it added that India’s high net-worth population is projected to grow faster than any other APAC market through 2030, primarily due to intergenerational wealth transfer of over $1.5 trillion over the next decade.
apan's super-long-dated bonds briefly changed course on Friday to trade lower after an auction of 20-year bonds drew weak demand due to fiscal concerns. Here are a few details: The 20-year bond yield reversed course to rise as high as 3.565%. The yield was last down 3 bps at 3.535%. Yields move inversely to bond prices. At the auction, a measure of demand called the bid-to-cover ratio, which gauges total bids against the amount of securities on offer, fell to 2.97, the lowest since May 2025, from 4.01 at the previous sale in May.
India is facing a double blow in foreign portfolio investment, with new registrations slowing to the weakest pace in at least a decade, even as offshore Funds continue to sell Indian equities aggressively. According to data analysed by Moneycontrol, India had 12,195 registered foreign portfolio investors as of June 25, compared with 12,143 at the end of the calendar year 2025. That means the country has added just 52 FPIs on a net basis In 2026 so far, translating to about eight investors a month. The pace marks a sharp slowdown from 2025, when India added 382 FPIs, or about 32 investors a month. In 2024, 618 FPIs registered in India, at an average monthly pace of around 52 investors.
The RBI has introduced a special window that allows banks to offer significantly higher rates on fresh FCNR (B) deposits. As a result, several banks are offering around 6% interest on US dollar deposits, while some smaller banks are offering more than 7%. If you are an NRI looking for fixed-income opportunities, this is one of the most attractive dollar deposit options in years. A Foreign Currency Non-Resident (FCNR) deposit allows NRIs to keep money in foreign currency with an Indian bank. Unlike NRE fixed deposits, the money is not converted into rupees. Both the principal and interest remain in the original currency, helping investors avoid exchange-rate fluctuations during the deposit tenure. Both FCNR and NRE deposits offer tax-free interest in India and full repatriation of funds. The key difference is currency risk. NRE deposits are held in rupees, exposing investors to rupee depreciation. FCNR deposits eliminate this risk because the deposit and maturity proceeds remain in the original foreign currency throughout the tenure.
The Reserve Bank of India (RBI) was a net seller of $8.944 billion in the spot foreign exchange market in April, marking the second consecutive month of intervention to support the rupee amid persistent currency pressures. According to the RBI's monthly bulletin released on Monday, the central bank purchased $16.225 billion and sold $25.169 billion in the spot market during April, resulting in a net sale of $8.944 billion, PTI reported. The intervention follows net sales of $9.758 billion in March.
Two of Asia's biggest stock markets are now hostage to a single bet: that the AI chip boom doesn't stumble. Three companies — TSMC, Samsung Electronics, and SK Hynix — have absorbed approximately 28% of the entire MSCI Emerging Markets index between them, more than 2.6 times India's total 10.87% country weight in the same benchmark. For emerging market (EM) investors, it is a concentration level with no historical precedent, parked in two countries, where an entire regional allocation now lives and dies by one order book, one export curb, one US trade policy pivot.
Global investing is now easier than ever for Indians. From buying international stocks directly through a broker or investing through GIFT City (Gujarat International Finance Tec-City), there are multiple ways to access markets abroad. But which route suits your specific needs and financial profile best? While both options provide global exposure, they differ significantly in terms of accessibility, taxation, investment flexibility, and costs. Here’s how the two routes compare and which route suits which type of investor.
As India continues its journey towards becoming one of the world's largest economies, tax reforms that improve predictability and reduce complexity will play a vital role in attracting global capital and fostering entrepreneurship, a senior financial industry expert said here on Tuesday. "It is also important to have a deep understanding of the growing economic partnership between India and Singapore and the importance of continuous dialogue on regulatory developments that impact cross-border investments," said Sanjay Gattani, chairperson of the Singapore Chapter of the Institute of Chartered Accountants of India (ICAI).
Shares of U.S. technology megacaps tumbled on Monday as SpaceX fell for the third straight session and hyperscalers Alphabet and Amazon looked set to lose billions of dollars in market value, driven by AI spending concerns. SpaceX slid over 10% after last week's blistering post-IPO rally. The Elon Musk-led firm said it is launching a notes offering on Monday. Alphabet dropped 6%, set for its biggest one-day fall since May 2025 and on pace to erase more than $256 billion in market capitalization. Google DeepMind's senior research scientist and Nobel laureate John Jumper said he was leaving for AI startup Anthropic, the lab's latest high-profile exit. "This is more of a broader sector pullback on ongoing anxiety over tech companies' massive capital spend on the AI infrastructure," said David Wagner, head of equity and portfolio manager at Aptus Capital Advisors.
Foreign investors' derivatives bets continue to signal caution on Indian equities despite a slowdown in their cash-market selling, as uncertainty around the fragile US-Iran peace deal, a weak rupee and more attractive opportunities in other Asian markets keep sentiment subdued. The Nifty gained 1.65% last week. However, the long-short ratio of foreign portfolio investors' positions in Nifty futures-a measure of bullish bets relative to bearish ones-stood at 12.95% on Friday. While the increase in the ratio from 8.1% two weeks earlier shows some reduction in short positions, the reading remains far too high to conclude that foreigners have turned bullish. IIFL Securities
Inactivity fees on dormant PhonePe wallets do not affect users' linked bank accounts or UPI transactions, according to clarifications issued by the company after notifications sent to some customers triggered confusion over how digital wallets operate. The notifications apply only to the PhonePe Wallet, a prepaid payment instrument (PPI), and not to payments made through the Unified Payments Interface (UPI), where funds are debited directly from a user's bank account. The issue has highlighted a common misconception among consumers that their PhonePe account, UPI account and PhonePe Wallet are the same product. In reality, they operate independently and are subject to different rules.
India's asset-backed securities market has surged to a record as global banks ramp up purchases to gain exposure to one of the world's fastest-growing major economies. Foreign banks' share in total issuance grew to about 35% in the year ended March, from 28% to 30% in each of the preceding two fiscal years, according to Krishnan Sitaraman, chief ratings officer at Crisil Ratings. Based on the total asset-backed debt sales of 1.53 trillion rupees ($16 billion) in the year ended March, that translates into roughly $5.6 billion of purchases by overseas lenders. Barclays Plc, Citigroup Inc., JPMorgan Chase & Co. and Standard Chartered Plc are among foreign lenders to have stepped up investments in such debt, according to people familiar with the matter, who asked not to be identified discussing private information.
The much-awaited Jio IPO DRHP has been filed. It’s expected to be the biggest IPO ever, and the company has said it will issue up to 27 crore fresh equity shares. The Mukesh Ambani-led telecom major aims to raise proceeds towards the re-payment of its outstanding debt and deploy capital towards general corporate purposes. Here are the top five highlights from Jio Platform’s DRHP. #1 Jio Platform IPO: Issue Size and BRLM The Mukesh Ambani-led Jio Platforms IPO is entirely a fresh issue, as the company will issue up to 27 crore shares, each having a face value of Rs 10.
Recordent, a credit risk and collections platform, has rolled out a credit registry for Section 8 Microfinance Institutions (MFIs) to improve credit visibility and strengthen risk assessment. The MFI Credit Registry will enable participating institutions to share and access borrower loan data through a common platform, helping lenders improve underwriting, monitor borrower indebtedness and make more informed credit decisions. The initiative comes amid efforts to strengthen credit information sharing and risk assessment across the microfinance ecosystem.
India’s foreign exchange reserves fell by $9.99 billion to $671.63 billion in the week ended June 12, 2026, according to data released by the Reserve Bank of India (RBI) on Friday. Foreign currency assets (FCAs), the largest component of the reserves, rose by $846 million to $544.29 billion during the week. However, the increase in FCAs was more than offset by a sharp decline in gold reserves, which fell by $10.75 billion to $103.82 billion.
India's benchmark 10-year bond yield snapped a six-session decline on Friday, as a halt in U.S.-Iran peace talks slowed oil's retreat and curbed risk appetite, while some investors locked in gains after a recent rally in prices. Brent crude inched higher in Asian trade, briefly rising past $80 a barrel, after a Swiss foreign ministry statement said U.S. talks with Iranian negotiators were scrapped, as Vice President JD Vance dropped plans to travel there, fuelling uncertainty over a lasting truce.
Investors poured the most capital in roughly 19 months into global equity funds in the week to June 17, buoyed by optimism over an interim deal to end the U.S.-Iran war and expectations that reopening the Strait of Hormuz could help ease inflationary pressures. They bought a net $55.22 billion of global equity funds during the week in their largest weekly purchase since November 13, 2024, data from LSEG Lipper showed. The U.S. and Iran signed an agreement on Wednesday that extends a ceasefire announced in April by another 60 days to allow the two sides to negotiate a truce.
A blazing rally in India’s short-end bonds, driven by plans to attract foreign capital, may fizzle out because the central bank is expected to drain excess cash from the financial system, according to analysts.BofA Securities and Bandhan AMC Ltd. expect the Reserve Bank of India to step up short-term cash withdrawal operations in coming months as surplus banking liquidity is seen climbing to pandemic-era levels of about 8 trillion rupees ($85 billion). DBS Bank Ltd. expects the central bank to deploy a stronger tool in August by requiring banks to keep a larger proportion of deposits with the RBI.
Indian government bonds edged slightly lower in early trade on Thursday after the U.S. Federal Reserve struck a more hawkish tone than expected, with most policymakers now projecting the start of a rate-hiking cycle before year-end. The yield on the benchmark 6.94% 2036 bond rose to 6.8639% by 10:20 a.m. IST from its previous close of 6.8626%. Yields move inversely to prices. "Bulls will take a backseat for now, as the current levels are bound to react more to negatives, with all positives priced in," trader with a primary dealership said.
About $26 billion worth of shares across 71 recently listed companies will become eligible for sale between June 17 and September-end as IPO lock-ins expire, according to Nuvama Alternative & Quantitative Research. The lifting of these lock-ins could create a potential supply overhang for several stocks, said analysts. Of this, shares worth about $15.96 billion across 31 companies that mostly made their stock market debuts in the last six months are slated to become eligible for sale over the next month, said Nuvama Alternative's head Abhilash Pagaria. The list includes ICICI Prudential AMC, Vishal Mega Mart, Inventurus Knowledge Solutions, Sai Life Sciences, Nephrocare Health Services and Oswal Pumps.
Uncertainty isn't a passing phase anymore, it's the new normal for investors. That was the core message from wealth management leaders at the ET Alpha Wealth Summit, where a panel of top industry voices including Rajesh Saluja, Co-Founder, CEO & MD, ASK Private Wealth, Nilesh Shah, Group President & Managing Director and Kotak Mahindra Asset Management Company (KMAMC) broke down how India's affluent investors are repositioning their portfolios for a world of constant geopolitical and economic flux. The topic of discussion was 'Global or Local? The New Allocation Reality'. "Resilient, not return-maximizing" portfolios are the new goal Rajesh Saluja, Co-Founder, CEO & MD of ASK Private Wealth, told the audience that decades of market shocks, from the Asian crisis to the pandemic, have taught wealthy investors one lesson: chasing the highest possible returns is a losing game. Instead, the focus has shifted to building portfolios that can absorb shocks without falling apart.
The green economy—the business lines of global listed companies that generate revenue from climate solutions — now boasts a record high market value of $10 trillion. The increase occurred as revenue tied to environmental products and services climbed to $5.5 trillion last year, expanding at its fastest pace since 2022, according to a report published Wednesday by London Stock Exchange Group. Investors have rewarded that growth: Companies deriving over 20% of their income from green activities have been outperforming the broader equity market, LSEG said. The S&P Global Clean Energy Transition Index has surged more than 80% since the end of 2024, more than double the return of the S&P 500.
The Indian rupee is set to open weaker on Thursday after a hawkish surprise from the U.S. Federal Reserve boosted bets of an interest rate hike later this year. The rupee is expected to open in the 94.70–94.75 range on Thursday, traders said, after settling at 94.5250 in the previous session. Fed policymakers struck a more hawkish tone than expected late Wednesday, with nine of 18 projecting at least one rate hike in 2026. Economists had anticipated far fewer, with Goldman Sachs saying it expected around three members to signal a hike. Goldman Sachs further flagged the Fed’s inflation outlook, noting the median projection for 2027 core PCE inflation (Q4/Q4) was set at 2.5%, above its 2.3% estimate. The meeting raises the risk of interest rate hikes later this year, the bank said in a note. However, their base case for now remains that the Fed will leave the policy rate unchanged this year.
The Reserve Bank of India’s (RBI) decision to allow banks to lend directly to Real Estate Investment Trusts (REITs) is expected to improve access to long-term capital, lower borrowing costs and reduce the sector’s dependence on the corporate bond market, according to the Indian REITs Association (IRA). The RBI on Wednesday issued a framework permitting banks to lend directly to REITs and Infrastructure Investment Trusts (InvITs). Under the norms, banks can lend only to Sebi-registered REITs with at least 80% of their underlying assets generating positive cash flows for at least one year. The aggregate exposure of all banks to a REIT, along with its underlying special purpose vehicles (SPVs) and holding companies, has been capped at 49% of the trust’s asset value. The norms will come into effect from October 1, or earlier if adopted by banks.
Foreign institutional investors have not walked away from Indian equities, they've simply rotated their bets, Samir Arora, Founder and Group CIO of Helios Capital Management, said at the ET Alpha Wealth Summit, delivering one of the sharpest macro reads on India's market narrative in recent months. The $200 billion rotation nobody is talking about Citing data from an ICICI report, Arora revealed a striking structural shift in foreign portfolio behaviour. Four years ago, heavyweight names, HDFC, Reliance, Infosys, TCS, Kotak, Bajaj Finance, and Hindustan Unilever, collectively made up around 40% of the total foreign institutional investor (FII) portfolio in India. Today, that share has nearly halved to roughly 20%.
The Reserve Bank of India allowed all foreign individual investors to buy shares in domestically listed firms directly, implementing a budget proposal and expanding access beyond non-resident Indians (NRIs) and overseas citizens of India (OCIs). This comes at a time when foreign portfolio investors (FPIs) have been pulling money out of Indian equities, adding to pressure on the rupee. The RBI said Monday evening that overseas individuals can invest in equity instruments of listed firms on recognised stock exchanges with enhanced limits, marking a further liberalisation of India's foreign investment regime. KYC Checks This potentially widens the investor base for domestic equities. Such individuals currently bet on Indian markets mainly through pooled investment vehicles managed by foreign institutions, alternative investment funds, mainly Category III, or via limited NRI channels.
Foreign portfolio investors (FPIs) stepped up purchases of Indian government securities after the government and the Reserve Bank of India (RBI) announced measures to attract foreign capital inflows. FPIs bought ₹11,087 crore worth of government securities through the fully accessible route (FAR) over the past week following the June 5 announcements. So far in June, FPIs have made net purchases of ₹15,895 crore in government bonds — the highest in 15 months. This follows moderate inflows of ₹5,693 crore in May and ₹5,081 crore in April. In contrast, March witnessed a record outflow of ₹17,688 crore amid heightened global uncertainty following the onset of the war.
Market intermediaries are likely to face a liquidity squeeze in the near term after the Reserve Bank of India’s (RBI) tighter lending norms come into effect from July 1. Industry estimates suggest the measures could impact market liquidity by ₹50,000-₹60,000 crore and significantly raise the impact cost for foreign portfolio investors (FPIs) and mutual funds. Consequently, leverage among market intermediaries will get curtailed and make liquidity provision more capital intensive. According to Ketan Marwadi, member of the Commodity & Capital Market Participants Association of India (CPAI), around ₹50,000 crore of liquidity could be affected once the new norms are implemented. He said clearing corporations have around ₹11 lakh crore in collateral, including nearly ₹1.2 lakh crore through bank guarantees and around ₹1 lakh crore through intra-day facilities.
The government may consider additional measures to attract foreign capital, Finance Minister Nirmala Sitharaman indicated on June 15, saying recent tax relief announced for sovereign debt was "not the end of the story". "We believe the bond market can be a good way to absorb the capital coming in. As of now we have done it only for government securities," she said. "Certainly, that is not the end of story. We recognise we need more foreign capital coming in," Sitharaman added at the Mindmine Summit 2026 in New Delhi. The Finance Minister said India sees the bond market as an important channel to absorb overseas capital but noted that reforms so far have been limited to government securities. "Between RBI, government we have analysed and taken steps towards capital gains tax, withholding tax," Sitharaman said at the Mindmine Summit 2026.
Foreign investors remained sellers in Indian equities, dumping more than Rs 62,853 crore of shares in the first fortnight of June amid heightened geopolitical tensions, concerns over global economic growth and persistent weakness in the rupee. With the latest outflows, total withdrawals by Foreign Portfolio Investors (FPIs) from Indian equities have surged to Rs 2.87 lakh crore so far in 2026, surpassing the Rs 1.66 lakh crore pulled out during the entire calendar year 2025, according to data from the National Securities Depository Ltd (NSDL). Factors Driving FPI Outflows Pabitro Mukherjee, Deputy Vice President-Research at Bajaj Broking, said FPI flows in the coming week will depend on developments in the US-Iran peace talks, the US Federal Open Market Committee's policy decision, the Bank of Japan's rate decision and commentary from major central banks.
After seven quarters of contraction, the microfinance sector’s gross loan portfolio (GLP) posted a sequential growth of 3% to ₹3.25 lakh crore in Q4FY26, aided by a sharp recovery in disbursements and improving asset quality. On a year-on-year basis, however, the sector’s GLP remained 13% lower than ₹3.75 lakh crore reported in March 2025, according to the 57th edition of Micrometer for Q4FY26 released by Microfinance Industry Network (MFIN), a self-regulatory body for the sector. Microfinance loan disbursements rose 28% quarter-on-quarter to a seven-quarter high of ₹77,524 crore in Q4FY26. The industry had last witnessed higher quarterly disbursements in Q4FY24, when it reported a record ₹1.07 lakh crore. “We can now say that despite the tough 2 years, Industry is turning the corner as evidenced by uptick in portfolio and continued improvement in Portfolio at Risk – PAR 31-180 declining to 2.0% as of March 2026 compared to 6.3% a year ago,” Alok Misra, CEO & Director of MFIN said in a statement. He added that a significant policy development which will further strengthen this recovery is the CGSMFI 2.0 scheme of Government of India. Recent extension of the scheme till August 2026 will allow sufficient time for utilisation.
Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey on Friday said the regulator is working on developing longer-term futures and options (F&O) contracts in the equity derivatives market as part of its broader effort to strengthen the derivatives ecosystem. Speaking at the ET Now Market Summit in Mumbai, Pandey said deepening the cash market remains a priority for Sebi. The regulator is reviewing the lending, borrowing and short-selling framework to improve inter-linkages between the cash and derivatives markets and enhance liquidity. Pandey also highlighted other areas under review, including the delisting framework, with the aim of ensuring a fair entry and exit mechanism for investors in the capital markets. On market volatility, the Sebi chief said fluctuations cannot be wished away during challenging periods and must instead be managed. He said the true test of markets lies in their ability to absorb shocks while protecting investors.
Indian investors looking to diversity seyond domestic markets can now ccess global stocks, mutual funds, woods and other International westment products through the GIFT ty (Gujarat International Finance ec City It's India's first smart city and International Financial Services Centm (IFSC) acting as a global hub in finance and tertionlogy offering special business zones and tax benefits to attract international companies. However, there are Investment limits, costs and regulatory requirements that levestors should understand before getting started What investment options are available through GIFT City? GIFT Chy has several outhound retail mutual funds that invest in global markets. For example, DSP Global Equity Fund launched in Sept 2025, Edelweiss Greater China Fund in March 2026 and PPFAS launched S&P 500 and Nasdaq 500 Fund of Funds from GIFT Cry in May 2026" says Ankur Choudhary,en founder and CEO Belong
Elon Musk is once again at the centre of global financial attention as his net worth surges to unprecedented levels, putting him on the brink of becoming the world’s first trillionaire. According to the latest Bloomberg Billionaires Index, his wealth has climbed to around $1.1 trillion, driven largely by a sharp rise in the valuation of SpaceX and continued strength in Tesla.I The jump has widened the gap between Musk and other global tech billionaires, reinforcing his dominance at the top of the global rich list. Musk Leads Global Rich List by a Massive Margin Recent rankings highlight just how far ahead Elon Musk has pulled from the rest of the world’s wealthiest individuals. Elon Musk: $1,331 billion Larry Page: $304 billion Sergey Brin: $283 billion Jeff Bezos: $262 billion Larry Ellison: $237 billion Michael Dell: $211 billion Mark Zuckerberg: $202 billion Jensen Huang: $170 billion Bernard Arnault: $165 billion Jim Walton: $147 billion
India's forex reserves dropped $711 million to $681.610 billion during the week ending June 5 due to a sharp decline in foreign currency reserves, according to the latest data released by Reserve Bank of India (RBI). The decline follows an increase of $938 million in the previous reporting week, when the forex reserves had risen to $682.321 billion. For the week ended June 5, foreign currency assets, that form a major component of the reserves, was down $2.704 billion to $543.444 billion, according to RBI. However, the value of gold reserves increased $1.975 billion to $114.575 billion during the week. The special drawing rights (SDRs) were up $18 million to $18.765 billion, the RBI said.
On Friday, Elon Musk’s image loomed large over Times Square from the giant TV screen of the Nasdaq stock exchange, as tourists outside snapped selfies, SpaceX investors in T‑shirts grinned at their newfound fortunes and news cameras jostled for position. “If people had told me this was going to happen, I was like, ‘man you must be smoking some really good crack,’” Musk said in a video address celebrating SpaceX going public. "I gave SpaceX less than a 10% chance of succeeding at all." Global reaction to SpaceX’s public listing - which values the company at more than $2 trillion and has made Musk the world’s first trillionaire - has spanned investor euphoria to admiration among fans and sharp criticism from politicians and members of the public who see him as a symbol of rising global inequality. At Starbase, where SpaceX launches its Starship rockets on the Texas border with Mexico, cheering fans traveled from far and wide in the hope of catching a glimpse of Musk. Lesley Varin, from Washington state, surrounded her car with stuffed toys holding handwritten signs celebrating SpaceX. One read: “Congrats Elon, Big 1st!”
India's measures to improve the attractiveness of its debt are welcome, though concerns over oil prices and their impact on the rupee remain big hurdles in drawing foreign investors to government bonds, a top official at BlackRock said. Seeking to shore up the rupee and interest in bonds, India last week announced tax cuts for overseas bond investors and a host of measures aimed at boosting inflows and improving market access. Foreign inflows into Indian debt have accelerated in the wake of steps, with some managers viewing the steps positively, particularly for India's case for inclusion in the Bloomberg Global Aggregate Index. BlackRock, however, has largely stayed out of the Indian market this year, and is not "meaningfully changing strategic exposure yet," Navin Saigal, BlackRock's head of global fixed income for Asia Pacific, said.
Elon Musk’s SpaceX has pulled off the biggest initial public offering (IPO) in US history, raising a staggering $75 billion and instantly becoming one of the most valuable companies in the world. The rocket maker priced its shares at $135 each on Thursday, selling 555.56 million shares and reaching a valuation of $1.77 trillion. The blockbuster debut puts SpaceX among the largest publicly traded companies in America, ahead of corporate giants such as JPMorgan Chase, Berkshire Hathaway, Eli Lilly, Meta Platforms and even Musk’s own Tesla. When trading begins on Nasdaq on Friday, SpaceX is expected to rank as the seventh-largest listed company in the United States. The only six US-listed giants ranking ahead of it by market capitalisation will be NVIDIA, Alphabet, Apple, Microsoft, Amazon, and Broadcom.
The rapid expansion of artificial intelligence is reshaping global credit markets as technology companies seek new ways to fund massive investments in data centers, chips and computing infrastructure. Morgan Stanley expects AI-related global debt issuance to more than double and reach nearly $570 billion in 2026, reported Reuters. The investment bank estimates that AI-related debt issuance had already reached nearly $236 billion by May 31, 2026, reported Reuters. That figure is about four times higher than the amount recorded during the same period a year earlier. Major technology companies have traditionally relied on strong cash flows to fund growth. However, the scale of investment required for artificial intelligence is pushing many firms to seek additional funding through debt markets.
The mutual fund SIP stoppage ratio has dropped to 95% in May against a stoppage ratio of over 100% for two consecutive months. In April, the SIP stoppage ratio was 101.14% whereas in March was 101.06%. The latest reading indicates that more mutual fund SIPs were registered than those stopped or whose tenures ended. The number of SIPs discontinued/ tenure completed in May were recorded at 51.70 lakh whereas the number of new SIPs registered in the same period stood at 54.16 lakh. In April, 51.29 lakh SIPs were discontinued or completed their tenure, and 50.71 lakh new SIPs were registered.
Foreign investors pulled nearly $27 billion net from emerging market portfolios in May, partially reversing a rebound in April as equity selling in Asia overwhelmed debt inflows, data from a banking trade group showed on Wednesday. Non-resident investors withdrew a net $26.6 billion from emerging bonds and stocks in May, according to the Institute of International Finance, compared with inflows of $70.6 billion in April. The reversal was driven almost entirely by equities - foreign investors pulled $37.0 billion from EM stocks during the month. Debt markets attracted a net $10.4 billion. “The month-to-month swing was large, at $97.2 bln, and shows that April's reopening did not become a straight-line normalization in capital flows,” said Jonathan Fortun, senior economist at the IIF.
As global investors gravitate towards markets, such as South Korea and Taiwan, Indian equities have slipped down the pecking order. The gloom around India is more about relative growth than absolute growth, says Ridham Desai, managing director and chief equity strategist India, Morgan Stanley. In an interview with Samie Modak and Sundar Sethuraman/Business Standard in Mumbai ahead of the Morgan Stanley India Investment Forum 2026, Desai argues that investor positioning has turned excessively bearish.
A barrage of shares is heading toward investors in India, signalling a pickup in dealmaking at the end of a subdued first half of 2026. About a dozen companies are expected to collectively raise more than 600 billion rupees ($6.3 billion) across initial public offerings, institutional placements and government stake sales in two months, creating one of the busiest periods for equity offerings this year. In another sign of the increase in activity, rapid-commerce company Zepto Ltd. has filed updated paperwork for an IPO that could raise $1 billion. National Stock Exchange of India Ltd. may be close behind with a $2.5 billion filing.
The share of early stage delinquency in microfinance loans rose in April while the sector's overall credit risk eased, data from CRIF high Mark showed. The portfolio at risk (PAR) for the 1-30 day bucket inched up to 0.8% in April from 0.6% a month prior while the ratio for 1-180 days was recorded at 2.5% as compared with 2.6% over the same period. Head of microfinance lenders said that there is no additional stress while the marginal rise in April reflects the usual slack business trend early in the fiscal. "The first quarter is always a difficult quarter for business and the rise in early delinquency is only a reflection of this," Satin Creditcare Network chairman HP Singh told ET. "Till now there is not much uncertainty around macroeconomic conditions and resultant impact on microfinance," he said.
Foreign investors have purchased nearly 10,000 crore of Indian bonds over the past four trading sessions following the government’s decision to fully exempt taxes on gains from eligible debt investments and the central bank decision to expand the investable universe, data published by CCIL showed. Bond yields have cooled in tandem. This marks a significant reversal from the stance taken by foreign investors that had been pulling out from India’s debt and equity markets in the recent months. Since the start of the US-Israel war on Iran, FPIs have net sold over 10,119 crore of debt.
India's decision to exempt foreigners from taxes on government bonds and broaden access to the debt market is expected to make the country more attractive to overseas investors, catalyse fresh inflows and strengthen its case for inclusion in global indexes. On Friday, policymakers unveiled a wide-ranging set of measures to draw in overseas capital while shoring up the currency and external balances, which have been strained by higher oil prices. They scrapped withholding and capital gains taxes on foreign investments in government bonds, broadened the pool of securities that are available without investment limits and introduced incentives to encourage banks to raise foreign currency deposits from non-resident Indians and for companies to tap overseas borrowings. The slew of measures, rolled out in response to the oil shock that has hit Indian assets, is beginning to lure foreign investors back into an overlooked market against a backdrop of rising global rate volatility.
Net inflows into equity mutual funds dropped sharply by 40.4% month-on-month in May 2026, reflecting a more cautious investor mood amid heightened market volatility, geopolitical tensions, inflation worries, and pressure on the rupee, according to the latest AMFI monthly data of May 2026. According to AMFI data, net equity fund inflows fell to Rs 22,907.77 crore in May, the lowest level in 12 months, from Rs 38,440.20 crore in April, a decline of Rs 15,532 crore in just one month. The sharp plunge has come after months of strong retail participation and suggests that investors turned more selective amid uncertainty in domestic and global markets. During May, investors had to contend with concerns around rising geopolitical tensions in West Asia, volatility in crude oil prices, inflation risks, fluctuations in the rupee, and sharp swings in equity markets.
The Indian Rupee posted sharp declines, sliding further into the 95 to the dollar levels, weighed by renewed geopolitical tensions, which led to a surge in oil prices. The currency ended Monday’s trade at 95.70 per dollar, down 0.8% from its previous close, marking one of its biggest single-day falls in nearly four weeks. Despite the spate of measures announced by the RBI on Friday to attract foreign capital, the currency opened on a weak note at 95.32 per dollar, and traders reported that the central bank stepped in to help curb its fall. “RBI was not in the market to protect the rupee until it fell to 95.70,” said Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors LLP.
The big story of the day is the big block deal across Adani Group companies. GQG Partners Emerging Markets Equity Fund offloaded shares in Adani Enterprises and Adani Energy Solutions’ equity shares via block deals. These shares were bought entirely by SBI Mutual Fund. On June 05, GQG Partners sold 1.64 crore shares, 1.26% of Adani Enterprises’ total market capitalisation, at an average price of Rs 2,913.40, totalling the stake sale at Rs 4,789.62 crore. Another block deal was of Adani Energy Solutions, where GQG Partners sold 63.65 lakh shares at an average price of Rs 1,504.80. SBI Mutual Funds bought these shares for the same price. Taking the total deal price at Rs 957.93 crore. About GQG Partners GQG Partners is a global investment firm that is a prominent shareholder in the Adani Group. The firm is led by Chief Investment Officer Rajiv Jain. GQG famously took a contrarian stance by purchasing massive stakes in various Adani companies when their stock prices plunged in early 2023 after US-based short seller Hindenburg Research struck the Adani Group.
The FII outflows from Indian equity markets continue. Foreign portfolio investors net sold Rs 42,927 crore worth of equities in the first week of June alone. Experts believe a convergence of global capital rotation toward artificial intelligence opportunities and a sharply weaker rupee continued to erode the investment case for India. The week’s outflows take total FPI selling in 2026 to Rs 2.67 lakh crore exceeding the full-year figure of Rs 1.66 lakh crore recorded in 2025, according to National Securities Depository Ltd (NSDL) data. The scale of the exit is significant: India is no longer just facing a pullback, it is absorbing a structural reallocation of global money.
The Centre’s and the Reserve Bank of India’s recent measures to attract foreign capital inflows are expected to ease pressure on the rupee and arrest its one-way slide, but a sharp appreciation remains unlikely amid persistent geopolitical uncertainty, market participants said. Most analysts expect the rupee to trade in a range of 94-96 against the dollar in the near term, with further movement dependent on geopolitical developments and the scale of inflows generated by the measures. A FE poll of nine respondents found that 66% do not expect the rupee to strengthen beyond the 94-per-dollar mark in the near future.
India plans to make a renewed pitch for inclusion of its sovereign debt in major global bond gauges, including the Bloomberg Global Aggregate Index, after exempting foreign investors from capital gains and withholding taxes and vastly widening the investable pool of long-dated securities, officials said. Reserve Bank of India (RBI) and finance ministry officials may also reach out to the Basel-based Bank for International Settlements (BIS) for talks, they said. BIS has been given a special tax-exempt status in the latest rejig. BIS invests significantly in government securities (G-secs) and enjoys tax-free status everywhere.
India is making an attempt to woo foreign portfolio investments (FPIs) to the government securities (G-Secs) market at a time when the market has been seeing weakness. On Friday, the government announced the exemption of 12.5% long-term capital gains tax on investments in G-Secs by foreign portfolio investors (FPIs). This is widely expected to bring Indian taxation rule at par with other emerging markets. If FPI participation improves, it will augment the country’s foreign exchange reserves, giving more room for the country’s apex bank to defend the rupee amid stress, debt market experts said. The move could also open the door for Indian G-Secs’ inclusion in the Bloomberg Global Bond Index, which may in-turn bring inflows of around $20-25 billion over the next year.
The Reserve Bank of India (RBI) will release the list of upper-layer non-banking financial companies (NBFCs) soon, Governor Sanjay Malhotra said at the post-policy press conference. "The list is there already. So, it continues till the time we have a new list. We will do it (update) shortly," Malhotra said without elaborating. Tata Sons, the holding company of the Tata group, has sought to de-register as an upper-layer NBFC, which would exempt it from the mandatory listing requirement, the deadline for which was September 2025. The regulator has not officially commented on this request. Responding to a specific question on Tata Sons' application to surrender its upper-layer NBFC classification in an interview with ET in March, Malhotra said the matter is under examination and that the process for finalising a revised list is underway.
Mutual fund (MF) houses are restricting large inflows into gold exchange traded funds (ETFs) and fund of funds (FoFs) feeding into such schemes in order to align with govt's recent policy of discouraging people from buying gold. Three large fund houses--HDFC MF, ICICI Prudential MF and Nippon India MF--have restricted large inflows into gold funds. The decisions will come into effect between June 5 and June 8. "In light of the broader economic and market conditions, it has been decided to temporarily restrict lumpsum subscriptions in HDFC Gold ETF and HDFC Gold ETF Fund of Fund until further notice," a communication from the fund house said.
Artificial intelligence has become the defining investment story of the past two years, lifting stock markets, creating trillion-dollar companies and driving unprecedented demand for advanced chips. However, billionaire investor Ray Dalio believes the excitement surrounding AI is also showing familiar signs of a market bubble. The founder of Bridgewater Associates said while speaking to Bloomberg Television on Wednesday that investors should be careful not to confuse belief in the technology with belief in the stocks tied to it. His warning comes at a time when AI-related companies are among the biggest winners on Wall Street, with investors pouring billions of dollars into chipmakers, data-centre operators and AI infrastructure firms. Every great technology creates a bubble, says Dalio Dalio claimed that history shows major technological breakthroughs often trigger periods of excessive optimism and speculation. “All great technology changes produce bubbles,” Dalio told Bloomberg TV. “Nobody can get it exactly right.”
India should stop “selling itself short” over near-term economic challenges as its long-term growth trajectory remains firmly intact, said Jane Fraser, Chair and Chief Executive Officer of Citi, on Thursday. “India’s got to stop selling itself short. There are some short-term headwinds, but the long-term India story is very much intact,” Fraser said at the Citi India Conference. Despite geopolitical tensions and trade-related uncertainties, she said India’s structural growth drivers remain strong. Fraser noted that Prime Minister Narendra Modi appeared committed to addressing bottlenecks and improving the ease of doing business, which would be critical for attracting greater foreign investment.
Japan's Nikkei share average retreated on Friday for a second consecutive session after closing at a record high earlier this week, as momentum slowed in the red-hot technology sector. The benchmark Nikkei 225 Index sank 1.3% to close at 66,588.12, eking out a 0.3% gain for the week. The broader Topix slid 0.07% to 3,949.09. The Nikkei closed at an all-time peak of 68,402.13 on Wednesday and has gained 34% so far this year. The tech-heavy Nasdaq closed lower in the U.S. overnight after chipmaker Broadcom missed revenue expectations, dampening euphoria over AI investment.
Banking and financial services companies foresee AI-assisted decision-making and real-time fraud prevention becoming common in the near future, as early adopters move beyond experimentation to operational deployment, according to the ET-Cisco AI Readiness & Adoption survey for the BFSI sector. Meanwhile, the broader BFSI industry’s enterprise readiness is under the spotlight, even as companies plan to scale up AI deployment. Before large-scale adoption, companies need to address key challenges around AI governance, infrastructure and data security. “The biggest barrier to moving from experimentation to production is not technology readiness, but enterprise readiness,” said Ashish Mittal, Chief Technology Officer at Tata AIG General Insurance. Implementation is often slowed by fragmented data, weak governance frameworks, integration challenges with legacy infrastructure. and difficulties in scaling pilots sustainably, Mittal said.
HDFC Mutual Fund has imposed temporary restrictions on investments in its gold exchange-traded fund (ETF) schemes amid heightened interest in gold-backed assets. The fund house said it will stop accepting subscription transactions from large investors directly into HDFC Gold ETF from June 8, 2026. The restriction will apply to investors making direct investments of at least Rs 25 crore with the mutual fund. In addition, lumpsum purchases and switch-ins into HDFC Gold ETF Fund of Fund (FOF) will be processed only up to Rs 10 lakh per PAN per calendar month at the first-holder level. The cap will apply to transactions received after the cut-off time of 3 pm on June 5. HDFC Mutual Fund said the measures are being introduced in light of prevailing economic and market conditions and will remain in force until further notice.
The Reserve Bank of India's move to increase the limits for investment in India's equity markets by non-resident Indians (NRIs), individual Persons Resident Outside India (PROIs) and overseas citizens of India (OCIs) with SEBI registration is not likely to move the needle on foreign flows. The limit for individual residents under OPI or overseas portfolio investment in listed securities was 10 percent, but this has been hiked to 24 percent. The Street is unanimous in its outlook: while the policy direction is largely positive, the measures will take time to significantly move the needle on foreign flows. Participation in the segment is likely to see a gradual increase, not a sudden jump.
IIFL Finance has raised $500 million by selling international dollar bonds to investors across the world in an issue which was priced on Wednesday. The 3.25 year issue was priced at 7.6% after building an order book of close to $2 billion from large institutional investors. This is the first dollar bond issued out of India since January, when ReNew Energy raised $600 million by issuing a five-year bond. Since then, geopolitical tensions, particularly stemming from the US-Israel attack on Iran, have led to high overseas yields which are beyond the expectations of Indian companies looking to raise funds from abroad. Nirmal Jain, founder and managing director at IIFL Finance, told ET the successful issue comes at a time of heightened volatilities, pressure on the rupee and capital outflows from India.
India's red-hot initial public offering market may look irresistible as foreign firms line up for listings, but the rush is not about raising funds to expand in a fast-growing market; it's about sending billions of dollars back to headquarters. Just one of six foreign-based companies that listed their Indian units in Mumbai since 2024 raised new funds, with all others structured purely as secondary offerings - or offer for sale (OFS), where existing shareholders sell their holdings to the public without raising any new funds, according to data from Prime Database, an Indian market research firm.
The RBI rejected all bids for 182-day and 364-day treasury bills while accepting only 91-day bills at auction on Wednesday, signalling its discomfort with rising short-term yields ahead of the monetary policy decision due Friday. The RBI sold 91-day treasury bills at a yield of 5.56%. The central bank typically rejects bids when it finds yields too high, and the move is seen as a signal that it wants interest rates to soften. The decision comes as the MPC began its meeting to decide on interest rates, with the outcome scheduled for Friday and expectations that rates will be held. Yields on govt bonds fell after the auction. This is the second instance in under three months where the RBI has cancelled treasury bill sales. Yields on one-year paper have risen by 40 basis points this fiscal due to the rupee coming under pressure.
Just as the microfinance sector appears to be emerging from a prolonged asset-quality stress cycle, a weaker monsoon forecast threatens to create fresh challenges. With the India Meteorological Department (IMD) downgrading its southwest monsoon forecast to “below normal” — potentially the weakest in 11 years — concerns are resurfacing for India’s over ₹3-lakh-crore microfinance industry. The IMD has revised its June-September southwest monsoon forecast to 90% of the long-period average, down from 92% projected earlier. It has also indicated that El Niño conditions are likely to develop during the season. A weaker-than-expected monsoon could hurt agricultural output, strain rural incomes and stoke inflation, prompting microfinance lenders to take a more cautious approach to fresh loan disbursements. “A weak monsoon could trigger a major supply shock and lift inflation. The MFI sector is likely to withstand the first level of shock as the current guardrails have already reduced its risk exposure.
The Indian central bank likely intervened in the foreign exchange market on Wednesday to limit the rupee's fall, four traders told Reuters, as a rise in crude prices on renewed U.S.-Iran hostilities pressured the South Asian currency. The rupee was at 95.47 per dollar, down 0.2% on the day. State-run banks were spotted offering dollars near the 95.50 mark, a trader at a Mumbai-based bank said. Renewed hostilities in the Middle East sparked the third consecutive daily rise in oil prices, with Brent crude rising about 1% to nearly $97 per barrel.
The Reserve Bank of India (RBI) on Tuesday announced a Rs 50,000 crore two-day Variable Rate Repo (VRR) auction, a move aimed at managing short-term liquidity conditions ahead of the central bank's monetary policy review. The auction will be conducted on June 3 between 9:30 am and 10 am, while the reversal of funds will take place on June 5. "On a review of current and evolving liquidity conditions, it has been decided to conduct a Variable Rate Repo (VRR) auction on Wednesday, June 03, 2026," the RBI said in a release. The announcement comes as surplus liquidity in the banking system has moderated in recent days. System liquidity stood at a surplus of about Rs 85,411.44 crore as of June 1, compared with a surplus of Rs 1.40 lakh crore on May 31.
UPI transactions hit a record high in May 2026, with the National Payments Corporation of India (NPCI) reporting 23.2 billion transactions worth Rs 29.90 lakh crore, up 24 % and 19 % respectively on an annual basis, because of summer travel, IPL 2026, and seasonal consumer spending, as per PTI. The April figures stood at 22.35 billion transactions valued at Rs 29.03 lakh crore. Looking at the bigger picture, India processed over 200 billion UPI transactions in 2025-26. UPI handled 24.16 billion transactions during the year, up 30% from 18.59 billion the year before. The value of those transactions rose 20.6% to Rs 314.2 lakh crore. UPI now accounts for nearly 86% of all retail payment transactions in the country, according to the latest RBI report For context: three years ago, that share was closer to 80%. The big picture on digital payments Total cashless transactions across all payment systems grew 26.8% in volume during 2025-26. In value terms, all digital payments combined, from large corporate settlements via RTGS to small peer-to-peer UPI transfers, reached Rs 3,251 lakh crore during the year.
South Korea’s equity market has overtaken India’s as the world’s sixth largest, driven by a relentless surge in chip heavyweights powering the global artificial intelligence buildout. The total market capitalization of Korea-listed companies has soared 86% this year to $5 trillion, while India’s has declined to $4.8 trillion, data compiled by Bloomberg show. Samsung Electronics Co. and SK Hynix Inc., newly minted members of the $1 trillion valuation club, have powered Korea’s equity surge, lifting the Kospi’s 2026 gains to more than 100% through their dominance in AI memory chips. Korea has vaulted past Canada, Germany, the UK, and France this year. “Closing in on India is a remarkable milestone for a market that, not long ago, was setting Kospi 5,000 as an ambitious target,” said Ross McGarry, senior investment analyst at Asset Value Investors. “This year’s rally, though, has been heavily carried by the memory cycle — Samsung and SK Hynix have done the heavy lifting. The real test is whether Korea can sustain this re-rating through genuine corporate governance reform.”
Indian government bonds slid on Monday after oil prices jumped as fresh U.S.-Iran strikes threatened a fragile ceasefire and stoked rate-hike worries ahead of a crucial policy meeting. The Reserve Bank of India will announce its rate decision on Friday, with markets largely pricing in a pause even as Standard Chartered, Capital Economics, ANZ, MUFG and OCBC call for a 25-basis-point hike. "While the case for a tighter monetary policy is strengthening, the timing of the move is a matter of debate," Radhika Rao, senior economist and executive director at DBS Bank said in a note. "In our view, the monetary policy committee is likely to prioritise the key mandate, i.e. inflation, to decide on the path ahead, while relying on other instruments to stabilise the currency and bond markets." India's inflation pressure is building. The rise in wholesale prices accelerated to a three and a half-year high in April. State-run fuel retailers have raised fuel prices four times in May. A forecast for a weak monsoon also poses further inflation risks.
South Korea has overtaken India to become the world's sixth-largest equity market, according to data compiled by Bloomberg, as a rally in chipmakers tied to the global artificial intelligence buildout lifts Asian The combined value of South Korea-listed companies has climbed about 86 percent in 2026 to $5 trillion, led by Samsung Electronics and SK Hynix, while India's has fallen to $4.8 trillion, Bloomberg data showed. The gains are concentrated in chip stocks. Samsung and SK Hynix together account for nearly half of South Korea's market value and TSMC for almost 40 percent of Taiwan's, while Nvidia alone is now worth more than all listed Indian companies combined, Business Standard reported, citing Bloomberg data. TSMC's share of the global foundry market rose to almost 70 percent in 2025, up from 64.4 percent a year earlier, on booming Al demand, research firm TrendForce said, as reported by the Taipei Times.
At first glance, the numbers appear contradictory. More investors are stopping their mutual fund SIPs than starting new ones, yet monthly SIP inflows are touching record highs. In March 2026, the SIP stoppage ratio crossed 100%, meaning the number of SIP accounts discontinued or completed exceeded fresh registrations, for the first time in recent memory. But in the same month, SIP inflows hit an all-time high of Rs 32,087 crore. The trend continued in April. Inflows remained above Rs 31,000 crore even as the stoppage ratio stayed above 100%. The data raises an obvious question: if more SIPs are being closed than opened, who is driving these record numbers? The answer lies in the changing nature of India’s retail investing landscape and in some important nuances that headline figures tend to obscure.
The first signs of foreign portfolio investors (FPI) returning to Indian markets may already be emerging. On May 18, 2026, FPIs were net buyers of Rs 2,813.69 crore in the equity cash market after US President Donald Trump paused fresh strikes on Iran and crude prices eased sharply. While one session does not make a trend, it highlights how quickly market sentiment can shift when key global triggers reverse. But as the saying goes, we cannot miss the forest for the trees. Foreign portfolio investors have pulled out over Rs 2.1 lakh crore from Indian equities in barely four months, a scale of selling described as the worst since foreign portfolio investing in India was permitted in 1993. And with May barely half done, the exodus shows no signs of stopping. To put it in context: this is not a bad year for FPI flows. This is historically bad. The total outflows in 2026 have already surpassed the Rs 1.66 lakh crore pulled out during the entirety of 2025, according to data with NSDL.
India's foreign exchange reserves fell by $7.5 billion to $681.3 billion in the week ended May 22, as the RBI intervened to protect the rupee from depreciating past the 97 per dollar mark. The rupee fell to a record low of 96.96 on May 20. The fall in reserves also comes amid revaluation in gold reserves. Gold reserves fell by $4.5 billion to $114.7 billion, while foreign currency assets decreased by $2.8 billion to $543 billion in the week. The Special Drawing Rights (SDRs) were down by $77 million to $18.748 billion, the apex bank said.
The finance ministry on Friday launched a single unified online platform for citizens to search and trace unclaimed bank deposits, insurance claims, shares and mutual funds across the financial ecosystem. The initiative is expected to enhance public awareness, improve ease of access to information and contribute to the vision of Viksit Bharat 2047 through greater financial empowerment, inclusion and trust in the financial system, the finance ministry said in a statement. The portal has been launched in collaboration with PSB Alliance to facilitate easier access to information relating to unclaimed financial assets.
The value of retail central bank digital currency (CBDC) in circulation declined by 24.08 per cent in 2025-26, despite the continuous pilot use cases for the currency by the Reserve Bank of India (RBI). According to the RBI's annual report, the value of bank notes in circulation in digital form through 'e₹-Retail (e₹-R)' stood at Rs 771.66 crore at the end of March 2026, compared with Rs 1,016.46 crore as on March 31, 2025. Meanwhile, the value of bank notes in circulation in digital form through 'e₹-Wholesale (e₹-W)' stood at nil as on March 31, 2026, unchanged from a year ago.
The Iran war rocked global bond markets again in May, sending yields to multi-decade highs as traders priced in central bank rate hikes - only for signs of progress in peace talks and weak economic data to bring them sharply lower again. Although a clear end to the conflict would bring immediate relief and lower government borrowing costs around the world, May's moves underscore how investors are twitchy about inflation and growing public debts. TREASURY TANTRUM The 30-year U.S. Treasury yield soared to around 5.2% on May 20, its highest since 2007, as the Iran war roiled the $28 trillion U.S. government bond market.
