Economy News — GDP, Inflation, Policy

India bonds hang tight before supply as oil stalls

On Friday morning, Indian government bonds found stability as oil prices leveled off. The market reacted to hawkish minutes from the central bank and a sudden spike in crude prices. Later today, a major debt sale will gauge investor interest in bonds. As retail inflation surpassed the Reserve Bank of India's target, rising oil prices and global yields will influence the upcoming market direction.

India set to approve $1.2 billion incentive plan to make building equipment, sources say

India is set to approve a $1.2-billion incentive scheme to boost domestic production of high-value construction equipment, including tunnel boring machines, and reduce import dependence on China. The programme is expected to attract $1.8 billion in investment over seven years.

PSU banks offer highest alpha potential; IT faces uncertainty: Omniscience Capital

India’s domestic economy remains resilient, with healthy revenue and earnings growth despite geopolitical uncertainties, according to OmniScience Capital. The firm sees potential for 7%+ GDP growth this fiscal year and believes India could sustain a high-growth trajectory even if the West Asia conflict persists.

Can Marvell stock sustain its rally ahead of Q2 earnings?

Marvell Technology shares have gained momentum after its Google AI chip deal, putting the semiconductor stock in focus ahead of its August 27 fiscal Q2 earnings.

Global Market: China stocks hold steady as investors await fiscal support

China’s stock markets were largely subdued on Friday as investors weighed prospects of additional fiscal support against weak domestic demand and a global bond selloff. Sentiment was supported by comments from Vice Finance Minister Liao Min that the government would roll out additional fiscal measures in response to economic developments.

Global Market: Japan core inflation accelerates in July, strengthening case for BOJ rate hike

Japan’s core inflation rose to 1.8% in July from 1.6% in June, in line with market expectations, strengthening bets that the Bank of Japan could raise interest rates at its September meeting. However, inflation remained below the BOJ’s 2% target for a seventh straight month, partly due to government fuel subsidies.

Bessent’s bond market push struggles to bring down US borrowing costs

US Treasury Secretary Scott Bessent’s bond-buyback push has offered only limited relief, with long-term Treasury yields rising again. Investors remain focused on the wider pressures driving borrowing costs higher, including the growing fiscal deficit, heavy government debt issuance, persistent inflation and uncertainty over Federal Reserve policy.

India's August private sector growth recovers slightly from over four-year low, PMI shows

August marked a subtle rise in India's private sector activity, propelled by a rebound in services growth that countered the slowest factory expansion in five years. New orders showed a quicker pace but continued to be underwhelming against historical averages. The services sector's vigorous hiring led to a boost in employment, while business confidence for the future grew, albeit slightly.

From sugar exports to imports: What’s behind India’s policy U-turn?

The policy shift raises questions over whether 2025-26 production and stock estimates were too optimistic.

US debt tops $40 trillion: Chris Wood flags the 5% trigger that could rattle stock market

US public debt has crossed $40 trillion as its fiscal position worsens and Treasury yields move closer to levels that could threaten equities. Jefferies strategist Christopher Wood flagged a rise above 5% in the 10-year US Treasury yield as a key risk trigger, with the yield recently at 4.69%.

Global Market: Nikkei slips as rising oil prices, bond yields weigh on Japanese stocks

Japan’s Nikkei fell on Friday and was headed for its steepest weekly decline in more than a month as rising oil prices, higher bond yields and uncertainty over the Middle East conflict weighed on investor sentiment. The Nikkei was set for a 4% weekly loss, while the Topix was headed for a 3.4% decline, with energy prices adding to inflation concerns.

Global Market: KOSPI gains on chip boost; foreigners turn net buyers

South Korean shares rose on Friday, led by gains in Samsung Electronics and SK Hynix after U.S. semiconductor stocks advanced, though the KOSPI remained on track for a weekly decline. Foreign investor inflows and a stronger won supported sentiment, while broader market weakness and rising bond yields kept investors cautious amid focus on monetary policy and financial-market risks.

Tata Motors Price Hike Alert: Cars, SUVs And EVs To Get Costlier From September 1 Check Details

Tata Motors said the extent of the increase will vary depending on the model and variant. The automaker attributed the price hike to rising input costs and sustained inflationary pressures.

Oman-India ties to move from buyer-seller model to strategic partnerships; opportunities across sectors: Envoy

Oman and India are strengthening economic ties, moving towards strategic business partnerships. A new Comprehensive Economic Partnership Agreement enhances trade access for Indian exports. Bilateral trade saw a significant increase during the recent fiscal year. Exports to Oman rose substantially after the agreement's implementation. Oman now serves as a key gateway for Indian businesses expanding internationally.

Piyush Goyal pitches Singapore as springboard for India’s agri-food exports

Indian ministers promoted agricultural exports in Singapore through a special roadshow event. This initiative aims to expand Indian farmers' and food manufacturers' market presence. The event focused on diverse products including organic items and millets. This effort supports strengthening bilateral trade and economic cooperation between India and Singapore. Discussions also covered enhancing digitalization and sustainability partnerships.

Treasury heads in buying mode as 5-year yield jumps

With government bond yields now at attractive levels, treasury heads are actively thinking about making purchases. After the RBI's FCNR(B) scheme ended, the five-year bond yield closed at 6.52%. Although there's speculation about a delay in renewed buying due to upcoming policy minutes, the banking sector's liquidity remains robust, with funds ready to be invested shortly.

ISMR: Ministers push for advanced manufacturing, strategic tech ties with Singapore

The fourth India-Singapore Ministerial Roundtable convened in Singapore to explore new partnerships. Discussions focused on advanced manufacturing and strategic technologies like semiconductors. Ministers reviewed progress and identified opportunities for their comprehensive strategic partnership. They also discussed digitalization, sustainability, and connectivity between the two nations. Both countries aim to deepen ties across various economic and technological domains.

Govt halves bulk sugar stock limit to 15 days as prices surge

Government halves bulk sugar stock limit to 15 days as prices surge 20% ahead of festive demand. It has also ordered mills to report detailed sales, buyer and price data for August 17-19 to monitor hoarding and market activity. Authorities are assessing whether sugar imports are needed to ease the supply squeeze.

US Treasury's Bessent says upsized bond buybacks could increase further

US Treasury Secretary Scott Bessent has outlined a strategy to ramp up bond buybacks, aiming to enhance market liquidity and instill confidence in economic fundamentals. Simultaneously, a fiscal consolidation initiative is underway, targeting savings in the hundreds of billions. This year's deficit has been exacerbated by refunds of illegal tariffs, while newly imposed tariffs and changes in tax laws are expected to significantly influence future revenue streams.

St. Louis Fed's Musalem says on CNBC he won't prejudge rate call view for September FOMC

St. Louis Fed President Alberto Musalem has stated that maintaining higher interest rates is still appropriate due to ongoing inflationary pressures, which remain above the central bank's target of two percent. He prefers a steady approach to rate hikes rather than sudden changes, emphasizing the need for a careful evaluation ahead of the September meeting of the Federal Open Market Committee.

US Treasury to double long-term bond buybacks; Bessent signals fiscal push as each could top $4 billion

US Treasury Secretary Scott Bessent said Treasury bond buybacks could exceed $4 billion per issue, after the department announced plans to at least double purchases of longer-dated debt. He also signalled a stronger fiscal consolidation push to curb the deficit and reduce borrowing costs.

US Treasury to double long-term bond buybacks as Bessent signals fiscal consolidation and focus on debt

US Treasury Secretary Scott Bessent said Treasury bond buybacks could exceed $4 billion per issue, after the department announced plans to at least double purchases of longer-dated debt. He also signalled a stronger fiscal consolidation push to curb the deficit and reduce borrowing costs.

Govt reappoints Anand Mahindra to RBI board, names former Isro chief S Somanath as non-official director

Anand Mahindra has been reappointed to the Reserve Bank of India's central board. Former ISRO Chairman S Somanath also joins the board for a four-year term. Their appointments are effective from August 20, 2026, according to the RBI. Mahindra's reappointment ensures continuity and brings diverse business experience. Somanath's technological expertise will aid the central bank's digital focus.

India allows duty-free sugar imports as prices climb ahead of festive season

Centre has allowed duty-free imports of 1 million metric tonnes of sugar as prices surge nearly 40% in two months amid tightening supplies. The move comes alongside stricter stockholding limits for bulk consumers, with festive demand expected to rise through November and weather conditions adding pressure to sugarcane availability.

How income plus arbitrage FoFs are more tax-efficient than debt funds: The impact on investor returns

Income Plus Arbitrage FoFs combine debt and arbitrage strategies, but their tax treatment can differ from that of debt funds. For investors in higher tax brackets, this difference could affect the returns they ultimately take home. Find out why.

India enters 'long-term arrangement' with Mauritius to supply petrol, diesel and aviation fuel

India has signed a long-term supply arrangement with Mauritius for petrol, diesel and aviation fuel, strengthening energy cooperation between the two countries. The agreements, signed during Oil Minister Hardeep Puri’s visit, include a government-to-government MoU on oil and gas cooperation and a sales agreement with Indian Oil. Mauritius disclosed no volumes.

Investors dump India bonds after hawkish RBI minutes

Domestic bonds experienced mounting pressure after the Reserve Bank of India's recent policy minutes conveyed a hawkish tone. The escalation in oil prices further compounded this decline in bond values. Policymakers expressed a willingness to raise interest rates if inflation concerns arise, triggering fears of increased borrowing costs within the economy. Meanwhile, global bond markets grapple with a challenging inflation and interest rate forecast.

India-EU trade pact clears legal scrub, signing likely this year

India and the European Union have finished legal scrubbing of their trade pact. This significant agreement is expected to be signed sometime this year. Ninety-three percent of Indian shipments will gain duty-free access to the EU bloc. Luxury cars and wines imported from the EU will also become less expensive. Together, India and the EU represent a quarter of global GDP.

India’s infrastructure output grows 5.4% in July, down from revised 6% in June

India's infrastructure output grew 5.4% year-on-year in July 2026. This growth moderated from the revised 6% expansion recorded in June. The July figure shows a 0.6 percentage-point slowdown from the previous month. Data covers nine key infrastructure sectors under the revamped Index of Core Industries. The new series uses 2022-23 as its base year.

Delhi Master Plan 2047: Key highlights of blueprint for housing, metro & Yamuna

Delhi's Master Plan 2047 targets 40 lakh new homes and a 695-km metro network by 2047. It includes redevelopment for unauthorized colonies and housing for slum dwellers. The plan aims to revive the Yamuna river by treating 22 drains and restoring floodplains. Green buffers and afforestation will address noise pollution and enhance the environment. This plan shifts urban planning towards development, investment, and improved liveability for residents.

Manohar Lal Khattar unveils Delhi's 2047 blueprint: 40 lakh homes, 695-km metro & jobs on agenda

Delhi's Master Plan 2047 proposes forty lakh new homes for its growing population. The city's metro network will expand to six hundred ninety-five kilometers by the year 2047. This plan aims to balance urban development with environmental preservation efforts. Affordable housing will be supported through transit-oriented development policies. The plan seeks to make Delhi a world-class, inclusive, and economically vibrant city.

Global Market: Treasury bond buybacks complicate Fed’s path to price stability

The U.S. Treasury has doubled its planned buybacks of longer-dated government debt to at least $4 billion per operation, easing pressure on long-term bond yields but raising questions over its growing influence on financial conditions and the Federal Reserve’s monetary policy strategy.

Quote of the day by Stanley Druckenmiller: "It’s liquidity that moves markets"

Stanley Druckenmiller’s famous liquidity insight highlights how money and credit availability can drive asset prices. Abundant liquidity can boost risk appetite and valuations, while tightening financial conditions can pressure markets. Investors should track liquidity alongside earnings, inflation and rates.

Global Market: Eurozone bond yields ease as US Treasury moves to support long-dated debt

Eurozone government bond yields edged lower as markets took cues from the US Treasury’s decision to expand liquidity operations for longer-dated debt. German bond yields also declined, while investors continued to price elevated expectations for an ECB rate hike amid persistent inflation concerns.

Global Market: European blue-chip earnings outlook improves as recovery broadens

European blue-chip earnings expectations improved for a ninth consecutive week, with profit growth forecasts for STOXX 600 companies rising to 24.1%. While energy remains the biggest contributor, stronger results from industrial and materials companies suggest the recovery is broadening. However, higher bond yields, inflation and geopolitical risks continue to weigh on markets.

Global Market: Japanese government bonds rally as US Treasury action calms global debt markets

Japanese government bonds rallied on Thursday as a US Treasury move to boost liquidity support for longer-dated debt eased pressure across global bond markets. Long-term JGB yields fell, while strong demand at a 20-year bond auction offered further support. Investors, however, remained cautious over inflation, oil prices and debt levels.

‘Attention is paid to flood & bridge design’: Vaishnaw on Bihar-Nepal highway infrastructure plan

India may lose $270 bn manufacturing GDP by 2035, $1 tn by 2047 without frontier tech: Report

India could miss a USD 5.1 trillion manufacturing GDP by 2047. Advanced manufacturing and frontier technologies are key to unlocking this potential. AI, automation, and digitisation will drive significant growth. India lags behind the US and China in deep-tech and semiconductor leadership. Adopting new technologies can add USD 1.1 trillion to manufacturing GDP.

The 20 reforms that could take India to a $20 trillion economy by 2036: Report

India could reach a $20 trillion economy by 2036 with broad reforms. A 20-point agenda covers infrastructure, capital markets, and human capital development. Services sector growth is crucial, aiming for over 65% of the economy. Productivity and innovation require increased research and development spending. Sustained execution across multiple areas will drive this ambitious economic expansion.

Retail inflation may cross 6 per cent in Oct-Nov before easing in Q4 FY27: Report

Retail inflation in India may briefly surpass 6 percent in late 2024. This rise is expected before easing to approximately 5 percent by early 2026. Improving food supply conditions and monsoon recovery will help contain inflation. The Reserve Bank of India awaits more inflation data before adjusting policy rates. Global market implications arise from US Federal Reserve actions on treasury yields.

US Stock Market: Treasury steps in to curb rising long-duration bond yields

The US Treasury has doubled planned buybacks of longer-dated bonds to at least $4 billion per operation, seeking to ease liquidity pressures after the 30-year Treasury yield hit its highest level since 2007. The move comes amid rising fiscal concerns, elevated borrowing costs and heightened geopolitical tensions.

HDFC Bank Shares Rise As LIC Gets RBI Nod To Raise Stake To 9.99%

Financially, HDFC Bank Ltd.'s net profit rose 5% year-on-year (YoY) to Rs 19,059 crore in Q1 FY27, broadly in line with estimates of Rs 19,720 crore, according to an exchange filing.

Jefferies Initiates Bajaj Housing Finance With 'Hold', Sees Premium Valuations Capping Upside

Jefferies sees spreads moderating and bottoming out in fiscal year 2027, while operating leverage and lower credit costs may cushion earnings.

India tightens sugar stock limits to tame record prices

India has ordered dealers to hold sugar inventories for only fifteen days. This new rule takes effect from September first until November thirtieth. The government aims to bolster sugar supplies and rein in soaring prices. Festival demand and patchy rains have contributed to the current price surge. These measures are intended to stabilize the market through the busy festival season.

LIC gets RBI approval to increase HDFC Bank stake to 10% from 4%. Details here

LIC held a 4.11% stake in HDFC Bank’s total share capital as of the latest available beneficial position on August 14, 2026.

LIC gets RBI approval to raise stake in HDFC Bank from 4% to 10%. Details here

LIC held a 4.11% stake in HDFC Bank’s total share capital as of the latest available beneficial position on August 14, 2026.

LIC Receives RBI Nod To Raise HDFC Bank Stake To 9.99%; Details Inside

In a letter dated August 19, 2026, the RBI granted the approval to LIC, subject to compliance with applicable banking, foreign exchange, securities market and other regulatory provisions.

Kharif sowing recovers after July rains

India's kharif planting has rebounded impressively following beneficial rainfall in July. Farmers are keen to recover from the setbacks of a parched June, showcasing an optimistic shift. The sowing of crucial crops like pulses and oilseeds is on track across the nation. Nevertheless, some crops still have acreage that is less than last year's. This revitalization raises expectations for alleviating food price concerns, provided the good rains continue.

US stocks: US market rises as yields ease, Moderna lifts healthcare stocks

US stock markets enjoyed a boost as easing bond yields and a spike in Moderna shares contributed to a favorable trading environment. Despite the Federal Reserve's minutes highlighting inflation concerns and discussions on rate hikes, investors remained optimistic. The Treasury's announcement of liquidity support revitalized riskier assets, particularly in tech stocks, while the success of Moderna's cancer therapy trial uplifted the healthcare sector.

CCI relaxes commitment norms, extends filing window to 60 days

The Commission has eased the timeline for preliminary considerations of applications by it to 15 working days from the current seven. Also, the deadline to wrap up the entire commitment proceeding has been raised to 180 working days, with a provision for extension in complex cases, from the current 130 working days. The move comes at a time when the regulator is considering two key commitment applications by IndiGo parent InterGlobe Aviation, and Google. The CCI has sought stakeholder comments o