The benchmark 10-year bond yield fell below 6.5% for the first time in over three years due to easing liquidity, the Indian government's borrowing strategy, and a stable rupee. Expectations of an RBI interest rate cut further supported the rally in government bond prices.
Related news
The RBI will continue its currency market intervention strategy to manage excessive volatility and maintain macro-economic stability. The rupee hit a new low of 86.63 against the dollar amid speculation about a more flexible approach. Active interventions have used significant foreign exchange reserves since September to defend the Indian currency.
Sebi exempts the Indian government from making an open offer to Vodafone Idea shareholders, as the government plans to acquire over 34% stake by converting spectrum dues into equity. This move, aimed at protecting public interest, will help VIL maintain its customer base and enhance telecom penetration in India without changing company control.
The Income Tax Department is reaching out to taxpayers and non-filers via SMS and email regarding discrepancies found between their reported transactions in the Annual Information Statement (AIS) and their disclosed income in Income Tax Returns (ITRs) for FY2023-24 and FY2021-22.
RBI Governor Shaktikanta Das, in his final press conference, emphasized the crucial coordination between the RBI and the government in managing inflation. He defended the RBI's stance on maintaining stable rates despite slowing growth, highlighting the impact of multiple factors.
Automobile retail sales in India dropped by 7% as overall demand declined in February, according to FADA. Passenger vehicle sales fell by 10% to 3 lakh units, while two-wheeler sales dropped by 6% to 13.5 lakh units. Dealers expressed concerns about excessive inventory and weak market sentiment affecting sales and overall dealer viability.
RBI's new governor, Sanjay Malhotra, faces the tough task of balancing India's economic growth, inflation, and exchange rate amid US election fallout and government pressure for lower interest rates. He must also tackle regulatory reforms, digital fraud, and mis-selling of financial products, impacting bank lending and consumer protection.
US stocks witnessed a sharp decline. The Federal Reserve cut interest rates for the third time this year. The Fed hinted at fewer rate cuts in 2025 than previously expected. Investors reacted negatively to this news. Bond yields increased, adding pressure on stocks. Smaller companies were hit particularly hard. Global markets showed mixed reactions to the Fed's decision.
Economic Survey highlights the positive impact of linking financially less privileged rural women to self help groups, welfare schemes, and direct benefit transfers. These initiatives have reduced inequality, increased consumption spending, and improved quality of life for rural households, as revealed by a survey conducted in Bihar, Jharkhand, Madhya Pradesh, and Uttar Pradesh.
Rajeev Chandrasekhar highlights India's leap in electronics manufacturing, with global and domestic brands now designed and manufactured locally. This shift is attributed to the government's move from import substitution to an export-led framework. Key trends include smarter, AI-connected products, India's expanding global value chain presence post-Covid, and the rise of highly intelligent digital products.
India will not immediately restrict laptop imports, expecting local production to grow through initiatives like the Rs 17,000 crore PLI scheme by companies such as HP and Dell. Additionally, the government is finalizing an enhanced financial incentive plan to attract new semiconductor investments.