Inflation is a major concern for FY26, driven by higher raw material costs and domestic pressure. The depreciation of the Chinese Yuan and geopolitical tensions are also contributing factors. The Indian Rupee is expected to weaken further, with the Reserve Bank of India likely balancing growth and inflationary pressures while defending the Rupee.
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Budget 2025 expectations: FICCI advises Finance Minister Nirmala Sitharaman to maintain emphasis on investments and implement next-gen reforms in Union Budget 2025. Key recommendations include boosting capex by 15% and establishing inter-state platforms for reforms in land, labor, and power sectors.
Gold prices soared to a record Rs 91,250 per 10 grams in Delhi, driven by strong buying from stockists and retailers, and heightened international market trends. Growing fears of a US recession and geopolitical tensions have boosted gold's appeal as a safe-haven asset. Meanwhile, silver held steady at Rs 1,02,500 per kg, reaching historic highs.
Stock market today: The BSE Sensex experienced volatile trading, falling 241.30 points or 0.31 per cent to close at 77,378.91. The index fluctuated 820.15 points during the day, reaching a high of 77,919.70 and a low of 77,099.55.
The Centre estimates Rs 47,000 crore from disinvestment and asset monetisation in the 2025-26 Budget. A new plan aims to plough back Rs 10 lakh crore into new projects. The first phase of monetisation had limited success, focusing on brownfield assets across various sectors.
Air India is establishing a massive flying training organization (FTO) in Amravati, Maharashtra, by mid-2025. The airline has ordered 34 trainer aircraft from US and Austrian manufacturers to facilitate the training of 180 pilots annually. This ambitious project aims to address India's growing pilot demand and bolster the nation's aviation infrastructure, aligning with the 'atmanirbhar Bharat' vision.
India maintains fiscal discipline despite challenges, with 2024-25 fiscal deficit target at 4.8% of GDP and a plan to reduce it to below 4.5% by 2025-26. The government aims to achieve a debt-to-GDP ratio of 50% by 2031 with focus on balancing development with fiscal prudence, resilient policies, and necessary fiscal buffers.
Hong Kong-based private equity fund PAG has acquired an 80% controlling stake in Pravesha Industries for $200 million. This follows their November 2024 purchase of a majority stake in Manjushree Technopak for $1 billion. Pravesha’s promoters, Bomma Sivaprasad Reddy and RPR Sons Advisors, sold their shares for Rs 1,387 crore.
Despite global market downturns, India's investor participation surged, reaching 11.2 crore by February 2025, with 11.3 lakh new investors joining that month alone. The National Stock Exchange data reveals a significant rise in retail engagement over the past year. North and East India lead in growth, reflecting a shifting regional landscape in investor demographics, showcasing rising public interest in equities.
President Droupadi Murmu urged the RBI to enhance vigilance against financial fraud and cyber threats as technology advances. She praised the RBI's role in maintaining trust and stability over the past 90 years and emphasized its importance in driving financial innovation and ensuring a secure digital payment system.
The Indian stock market closed higher, led by gains in financial and energy stocks following the RBI's $21 billion liquidity infusion and lower crude prices. The BSE Sensex and Nifty 50 both rose significantly. Positive global cues, particularly from a temporary tariff reprieve in the US, also bolstered investor sentiment.