Aviation turbine fuel prices rose by 10% as a government-backed price stabilization scheme locks in rates for airlines at Rs 115 per litre for up to three years. This voluntary scheme aims to shield carriers from global oil price volatility, with the government providing interest-free advances to oil companies if benchmark prices exceed Rs 86.32
Indian markets saw a positive trend as US stocks rallied, driven by a strong comeback in AI-linked technology shares. Lower oil prices provided further relief, boosting airline stocks and easing bond market pressure. Investors are now keenly awaiting crucial US inflation data, with expectations of a potential Federal Reserve rate hike later this year.
A five-day BRICS meeting commenced in Indore, focusing on food security, climate-resilient agriculture, and farmer welfare. Officials are deliberating on enhancing cooperation and jointly addressing challenges like climate change’s impact and agricultural financing. The discussions aim to boost trade and technology exchange among member nations.
India’s economic outlook is darkening due to rising oil prices, fertilizer costs, and supply disruptions from the Iran conflict. Economists warn of escalating inflation, slower growth, and strained government finances. The nation, heavily reliant on oil imports, faces significant economic challenges as global energy prices surge, impacting its balance of payments and fiscal health.
Despite global economic headwinds from the Middle East crisis, India’s government remains optimistic about growth, citing strong domestic consumption and intact GDP momentum. Officials confirm no immediate need for extra borrowing, with fiscal targets holding firm. Disinvestment plans are progressing, and further FDI measures are anticipated.
China’s exports surged 19.4% in May, exceeding forecasts, driven by robust demand for semiconductors and electric vehicles. Shipments to the US saw a significant rebound, growing over 35%. This strong trade performance is expected to support China’s economic growth targets for the year.
The government has notified rules for setting up coal exchanges to improve price discovery and transparency in the coal market. These exchanges will facilitate market-driven trading, offering commercial and captive miners wider buyer access. This initiative aims to modernize the coal supply chain and enhance energy security.
“Oil prices will be lower if Hormuz reopens earlier. Uncertainty remains high regarding the timing of Hormuz reopening, and oil prices will remain volatile as a result,” Fitch says.
Fitch Ratings has lowered India’s FY27 GDP forecast to 6.4% due to rising costs from Middle East conflict impacting consumer spending. While domestic demand remains a driver, higher prices are expected to reduce purchasing power, with the most visible impact in Q2 and Q3 of FY27.
The tunnel, a key strategic project that will ensure year-round connectivity between Kashmir and Ladakh, is set to reach a major milestone on Tuesday with the scheduled “breakthrough” blast.
