Indian markets experienced a significant downturn in April, with BSE-listed companies losing Rs 11.30 lakh crore due to escalating US-China trade tensions and subsequent tariff announcements. Although the US temporarily suspended tariffs, uncertainty persists, impacting investor sentiment. Experts anticipate a potential market rebound in the second half of FY26, contingent on improved corporate earnings and stabilised global conditions.
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The Indian rupee fell to a record low against the US dollar, crossing the 85 mark for the first time. This drop was influenced by the US Federal Reserve's indication of fewer-than-expected future rate cuts. While the decline makes imports costlier and benefits NRI remittances, its impact on export competitiveness is debated.
Foreign investors have withdrawn Rs 22,194 crore from Indian equities in January amid expectations of a weak earnings season, rising US dollar, and concerns over a potential tariff war. Additionally, factors such as slowing GDP growth, high inflation, and the record low level of the Indian rupee have contributed to this exodus.
Companies in India are expected to see an average salary increment of 8.8% in 2025, slightly down from 9.0% in 2024. While 75% of companies aim to maintain or reduce pay hikes due to muted revenue growth, top performers may receive 1.7 times higher increments than average employees, with a focus on optimizing costs and talent differentiation.
Sebi has proposed monthly systematic investment plans (SIPs) for a low ticket size of Rs 250. This aims to promote financial inclusion by subsidising costs for intermediaries. Investors can invest through up to three Rs 250 SIPs across different fund houses. Sebi plans to offer incentives to distributors and execution platforms for driving subscriptions to these small-ticket SIPs.
Six leading firms among the top-10 most valued companies collectively gained Rs 86,847.88 crore in market value last week, with HDFC Bank and Reliance Industries leading the gains. The BSE and Nifty both saw modest increases. Meanwhile, four companies, including TCS and Infosys, faced declines in their market valuations.
FDI inflows into India are rising rapidly, driven by interest from investors in the Middle East, Japan, the EU, and the US. This surge is attributed to India's strong market, skilled workforce, and favorable regulations, leading to robust economic growth and job creation.
Bank depositors are covered by the DICGC's insurance scheme up to Rs 5 lakh per account. Strategically distributing deposits across various banks can enhance coverage, as personal accounts, business accounts, and different joint arrangements are treated separately.
India risks facing a shortfall of over a million skilled AI professionals by 2027, jeopardizing its potential to become a global AI talent hub. The increasing demand for AI expertise necessitates urgent reskilling and upskilling efforts to bridge the significant skills gap.
The European Central Bank has cut interest rates by 25 basis points to 2.5% to boost economic activity in the eurozone. Amid low inflation and stagnant growth, the ECB aims to ease borrowing costs for consumers and businesses. Increased defence spending and potential US trade tariffs add uncertainty to future economic outlook.
Budget 2025 expectations: Address the issue of subdued private capital expenditure with a new strategy rather than relying solely on rate cuts as a panacea. The 2023-24 Economic Survey rightly emphasised that underwhelming private capex in key infrastructure sectors cannot be resolved by central government policies alone.