Indian stock markets are poised for a volatile week, with US inflation data, the Federal Reserve’s interest rate decision, and crude oil price movements as key influencers. Investors are keenly watching the US-Iran deal’s progress, which could impact global oil prices and market sentiment. Foreign investor outflows also remain a significant concern.
Indian equities surged last week, with the top 10 most-valued companies collectively gaining Rs 1.90 lakh crore. ICICI Bank led the rally, adding over Rs 56,000 crore to its market cap. This upturn, driven by global sentiment and RBI measures, saw most major firms post gains, with Reliance Industries retaining its top spot.
BRICS nations have adopted the “Indore Declaration,” pledging enhanced cooperation in agriculture and launching new initiatives like a global forum on farmers’ seed rights and a digital agriculture network. These decisions, made under India’s presidency, aim to strengthen food security, support small farmers, and promote sustainable farming practices across member countries.
India assures ample energy supplies, with over 60 days of crude oil and natural gas reserves. Domestic LPG production has significantly reduced import reliance, ensuring 75-80 days of stock. Despite global price hikes due to the Iran conflict, India has kept domestic fuel prices stable, even seeing a slight decrease due to excise duty cuts.
Union Agriculture Minister Shivraj Singh Chouhan assured farmers that urea and DAP will remain affordable, with the government absorbing price increases. He stated India has sufficient fertilizer stocks for the current kharif season and is ensuring supplies for the upcoming rabi cycle. The minister also addressed El Nino concerns, highlighting adequate government preparations and international
Prime Minister Narendra Modi and US President Donald Trump will discuss trade at the G7 summit. A final trade agreement is not anticipated during the meeting. US Trade Representative Jamieson Greer will visit India the following week. Negotiations are ongoing as both nations aim to strengthen economic ties. A beneficial deal is considered possible.
South Korea’s AI-driven semiconductor boom is not yet translating into broad economic gains, according to Nomura. Despite strong chip exports and equity markets, domestic demand shows limited improvement, with luxury spending and business investment being key drivers. Concerns over the won and financial stability may prompt a Bank of Korea rate hike.
China has opposed the US for adding BYD, Alibaba, and Baidu to a Pentagon list of firms allegedly linked to the Chinese military. Beijing argues this move undermines agreements made during President Trump and Xi Jinping’s recent summit, harming bilateral economic and trade relations.
