Foreign investors have offloaded a record $20.6 billion in Indian stocks this year, exceeding 2025’s highest-ever annual outflow. The recent West Asian conflict triggered a significant sell-off, with nearly $18.2 billion exiting since the war began. Factors like rising crude oil prices, a weakening rupee, and concerns over company growth and valuations are driving this
RBI Governor Sanjay Malhotra urged Indian banks to become global market-makers, aiming to bring rupee price discovery onshore. This move seeks to counter offshore non-deliverable forward markets’ influence on the rupee and reduce arbitrage. Malhotra also highlighted the need for improved liquidity in government securities and expanded access to the FX retail platform for fair
India’s passenger vehicle market kicked off the new fiscal year with a robust 27% sales surge in April, reaching approximately 4.5 lakh units. Strong performances from Maruti Suzuki, Tata Motors, and Mahindra & Mahindra, fueled by demand for utility vehicles and SUVs, propelled this growth. Despite rising input costs, the industry is experiencing a significant
Air India is exploring unbundling meals and lounge access on domestic and short international flights to combat rising costs. Passengers could see ticket prices reduced by opting out of these services. This move aims to address the financial strain from increasing fuel prices and a depreciating rupee, while acknowledging India’s price-sensitive market.
Commercial LPG cylinder prices have surged by nearly 50%, marking the highest single-day hike by state-owned oil firms. Domestic LPG, petrol, and diesel prices remain unchanged despite global energy cost increases. This move impacts industrial consumers and migrant populations relying on smaller commercial cylinders, while airlines face rising ATF costs.
The Finance Ministry has declared the West Asia conflict a “war,” enabling government entities to invoke ‘force majeure’ for public contracts impacted by disruptions. This allows for penalty-free extensions of two to four months for affected companies, offering significant relief to sectors like defence and drone manufacturing facing supply chain issues.
While the data is at a record high, the biggest factor driving the surge has been the growth in import-led revenues which outpaced domestic transactions. To put it simply, the GST collections from imports were higher than those from domestic transactions.
