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India Central Bank Denies Sale of $12 Billion Gold Reserves

The Reserve Bank of India denied news reports that it sold gold reserves worth roughly $12 billion in the two weeks through May 22, saying physical stock of gold remains unchanged at 880.52 tons."The Reserve Bank of India (RBI) has come across reports in certain sections of the media about RBI's sale of gold. The RBI emphasized that these reports are not correct," the central bank said Wednesday.A recent Bloomberg News report said RBI likely sold gold reserves worth roughly $12 billion in the two weeks through May 22, while buying $7.5 billion of foreign-currency assets.The story was later retracted by Bloomberg.

Asia10d ago

Market Chatter: India Reviews Spending Cuts as Higher Oil Prices Raise Subsidy Burden

India's government is reviewing possible spending cuts in parts of the federal budget as rising oil prices increase subsidy costs and threaten Indian government's fiscal consolidation roadmap, Bloomberg reported, citing officials familiar with the matter.The options have been discussed in recent meetings with Finance Minister Nirmala Sitharaman over the past month, though no final decision has been taken, the officials told Bloomberg.Capital expenditure and defense spending are unlikely to be reduced, the report noted. Officials are rather examining areas such as water resources and state loans for potential trimming, it added.The Finance Ministry did not respond to Bloomberg's request for comment, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

India Keeps Repo Rate at 5.25%, Lifts Inflation Outlook

India's central bank left its benchmark repo rate unchanged and retained its neutral policy stance, while lowering its growth forecast and raising its inflation outlook as policymakers assessed the economic impact of the prolonged conflict in the Middle East.The Reserve Bank of India kept the repo rate at 5.25%, in line with forecasts, according to a Friday press release.The central bank lowered its real gross domestic product growth forecast for fiscal 2027 to 6.6% and raised its inflation projection to 5.1%."The adverse implications of the extended disruption in supply chains and elevated energy prices are reflected in the moderation of growth and increase in inflation projections from the April policy," the Monetary Policy Committee said.The RBI projected GDP growth of 6.6% in the first quarter, 6.3% in the second quarter, 6.5% in the third quarter, and 6.8% in the fourth quarter of fiscal 2027.While domestic demand has remained resilient, the central bank said the economic impact of the conflict is becoming increasingly visible."While the economy has withstood the conflict spillovers with limited impact so far, the strains are increasingly becoming visible," Governor Sanjay Malhotra said in his speech.The RBI said fuel prices have risen 7.4% for petrol and 8.4% for diesel since May, adding direct inflationary pressure and increasing the risk of broader pass-through from higher energy and commodity costs.For fiscal 2027, the central bank projected inflation at 4.2% in the first quarter, 5.1% in the second, 5.9% in the third, and 5.4% in the fourth.The central bank warned that the inflation outlook remains vulnerable to supply-chain disruptions, higher commodity prices, and a below-normal southwest monsoon forecast.The committee chose to leave rates unchanged despite rising inflation risks, citing uncertainty over the duration and economic impact of the conflict in the Middle East, the statement said."Although risks of higher inflation have amplified, the MPC felt it would be prudent to wait for greater clarity to emerge. Accordingly, the MPC voted to keep the policy rate unchanged," Malhotra said.He added that policymakers would remain vigilant to signs of supply-side pressures feeding into broader prices and inflation expectations.Economists said the Reserve Bank of India may still need to tighten policy later this year if higher fuel and commodity costs feed through more broadly into consumer prices."We expect 50 basis points of rate hike beginning in October," Upasna Bhardwaj, a senior economist at Kotak Mahindra Bank, was quoted as saying by Bloomberg News."However, the extent of pass-through of supply side pressures would not rule out August policy also being live," she added.

Asia10d ago

Market Chatter: India Eyes Stronger Oil Ties With Venezuela Amid Supply Diversification Push

India is exploring deeper energy ties with Venezuela, including crude imports and potential investments in the country's oil sector, Bloomberg reported Friday, citing comments from Rudrendra Tandon, secretary east in India's Ministry of External Affairs, following talks between Prime Minister Narendra Modi and Venezuelan Acting President Delcy Rodríguez.The discussions come as India seeks to diversify crude supplies after disruptions to shipments through the Strait of Hormuz. Venezuela has emerged as a growing source of oil for India after sanctions relief earlier this year, according to the report."In our spot purchases, Venezuela has already emerged as the third-largest supplier this month," Bloomberg quoted Tandon as saying.Both sides also discussed potential cooperation in pharmaceuticals, mining and critical minerals, Tandon reportedly told reporters. Any investment proposals would be pursued separately through commercial negotiations, he added.Oil Minister Hardeep Singh Puri said technical teams from Indian energy companies will visit Venezuela to explore opportunities for expanding cooperation in the sector, Bloomberg noted.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

India's Central Bank Maintains CRR at 3%

India's central bank on Friday maintained the country's cash reserve ratio at 3%.The Reserve Bank of India has held the rate steady since December 2025, and analysts did not expect a change to the ratio during its recent meeting, according to a consensus from Investing.com.

India's Central Bank Keeps Repo Rate Unchanged at 5.25%, Retains Neutral Stance

The Monetary Policy Committee of the Reserve Bank of India (RBI) on Friday kept the repo rate unchanged at 5.25% and maintained a neutral policy stance.The decision was taken at the Committee's meeting held from June 3 to June 5.The committee also kept the standing deposit facility rate unchanged at 5.00%, and the marginal standing facility rate and the bank rate at 5.50%.

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Asia11d ago

Indian Equities End Marginally Higher on Thursday Ahead of Central Bank's Policy Decision

Indian benchmark indices finished marginally higher on Thursday after another range-bound session, as investors remained cautious ahead of the central bank's monetary policy announcement.The BSE Sensex rose 13.84 points, or 0.02%, to close at 74,360.01, while the NSE Nifty 50 gained 10.95 points, or 0.1%, to settle at 23,416.55.Trading remained subdued as market participants avoided aggressive positions ahead of the Reserve Bank of India's policy outcome. Weak global cues and elevated crude oil prices also kept sentiment in check.In corporate developments, HFCL (NSE:HFCL, BOM:500183) approved a series of transactions to consolidate its defense and aerospace operations under HFCL Advance Systems. The company plans to invest 892.5 million rupees in the newly formed unit as part of a broader 1.75 billion-rupee funding round and will retain a majority stake upon completion.AstraZeneca Pharma India (NSE:ASTRAZEN, BOM:506820) said its board approved the surrender of its factory license for cancellation, following previously announced plans to exit its manufacturing facility and relinquish its manufacturing license.

Asia11d ago

Market Chatter: Dubai-based Apparel Group Considers India IPO

Dubai-headquartered fashion and lifestyle firm Apparel Group is eyeing an initial public offering (IPO) for its Indian unit Apparel Group in Mumbai, Bloomberg News reported Thursday, citing people familiar with the matter.The valuation and the size of the IPO are yet to be announced, but banker appointments are being anticipated soon, the people told the news agency. The IPO could take place later in 2026 or in early 2027, the report said.The company's India unit operates over 300 stores across more than 50 cities and manages over 20 brands in the country. Its portfolio includes brands such as Charles & Keith, Dolce & Gabbana Beauty, Levi's Kids, Victoria's Secret, Aldo, Crocs, Tim Hortons, Inglot, Call It Spring, Nike Littles, and Jordan Kids, according to the report.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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International11d ago

India 'Remains Engaged' With U.S. Over Additional US Tariffs

The Indian government "remains engaged" with Washington after the Office of U.S. Trade Representative proposed additional taxes on imports from 60 economies, including India, over forced-labor trade practices.India's commerce ministry said Wednesday that it remains in talks with the U.S. over the matter as part of Section 301 proceedings, and is simultaneously holding discussions on finalizing a broader trade agreement announced in February.The USTR has proposed a 10% additional tariff for economies that have partially enforced bans on the importation of certain forced labor goods, and a 12.5% tariff for all others, according to the recently announced proposal.

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Asia12d ago

Indian Equities Slip Wednesday as IT Stocks Tumble, Oil Prices Rise

Indian equities fell on Wednesday, as IT stocks lost steam, heightened tensions in the Middle East led to rising oil prices, and foreign institutional investor outflows weighed on sentiment.The BSE Sensex slipped 0.4%, or 303.67 points, to finish Wednesday's session at 74,346.17. Likewise, the NSE Nifty 50 tumbled 0.3%, or 77.95 points, to 23,405.60.Investor sentiment dampened as ongoing tensions between the U.S. and Iran led to an increase in oil prices, fueling energy-related pressures, according to a report by The Times of India.Additionally, many IT heavyweights, which had led Tuesday's rally, posted sharp declines.Among the top losers were Tata Consultancy Services (NSE:TCS, BOM:532540), Tech Mahindra (NSE:TECHM, BOM:532755), and HCL Technologies (NSE:HCLTECH, BOM:532281), which plunged over 8%, 6%, and 5%, respectively.Apollo Hospitals Enterprise (NSE:APOLLOHOSP, BOM:508869) led gainers for the day, posting a rise of nearly 3%. Tata Motors Passenger Vehicles (NSE:TMPV, BOM:500570) and InterGlobe Aviation (NSE:INDIGO, BOM:539448) were down around 2% each at the day's close.In corporate news, Bajel Projects (NSE:BAJEL, BOM:544042) bagged a mega engineering, procurement, and construction order for a GIS substation from a data center client in Mumbai. Shares closed 3% higher.Elsewhere, IndiGo, operated by InterGlobe Aviation, said it will discontinue flight operations to and from Manchester effective Aug. 31 amid prolonged airspace restrictions, longer flight times, and higher operating costs.

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Asia12d ago

Several Asian Countries Face Additional US Tariffs Over Forced-Labor Trade Practices

Several Asian countries could soon face additional duties on some of their exports to the U.S. following Washington's probe into imports produced using forced labor, the Office of U.S. Trade Representative (USTR) said Tuesday.The USTR said Bangladesh, Cambodia, China, Hong Kong, India, Japan, Malaysia, the Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand, Indonesia, Pakistan, and Vietnam are among the 54 economies that have failed to impose and effectively enforce a forced-labor import ban.The USTR proposed a 10% additional tariff for economies that have partially enforced bans on the importation of certain forced-labor goods and a 12.5% tariff for the rest.

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Asia12d ago

Market Chatter: OYO Operator PRISM Receives SEBI Approval for Planned IPO

Hospitality technology company PRISM has received Securities and Exchange Board of India's approval for its proposed initial public offering, Mint reported Tuesday, citing people familiar with the matter.The OYO operator confidentially filed its draft red herring prospectus with SEBI in December 2025 after shareholders approved a plan to raise up to 66.5 billion rupees through a fresh issue of shares, the report said, citing the sources.PRISM is seeking a valuation of about $7 billion to $8 billion for the proposed offering, Mint noted.The company is expected to publicly file an updated draft prospectus by early July, after which the document will be open for public comments, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

US Markets12d ago

India's Services Growth Hits Six-Month High in May, Final PMI Shows

India's services sector expanded at its fastest pace in six months in May, supported by stronger demand and a quicker increase in new business, according to survey data released Wednesday.The HSBC India Services PMI Business Activity Index rose to 59.8 in May from 58.8 in April, marking the strongest rate of expansion since November 2025, beating the consensus forecast of 58.9.The increase was driven by healthy demand conditions, new client wins, and continued growth in new business. New orders rose at the fastest pace in six months, moving further away from the slowdown recorded in March.New export orders also increased, with firms reporting gains from Australia, Canada, France, Germany, Hong Kong, Malaysia, the UAE, and the UK."India's services PMI signaled an expansion in business activity in May, supported by a continued rise in new business," Pranjul Bhandari, chief India economist at HSBC, said."External demand for India-provided services also grew at a faster pace, rebounding after a sharp decline in April. Input cost inflation eased, which in turn reduced pressure on selling prices."Input costs continued to rise during the month, driven by higher prices for food, fuel, gas, labor, and materials. However, cost inflation eased to a four-month low, while charge inflation softened to its weakest level since January.Despite the strong demand environment, business confidence among service providers slipped to a three-month low and remained below the historical average.The broader private sector also strengthened. The HSBC India Composite PMI Output Index rose to 59.3 in May from 58.2 in April, while new business across the private sector increased at the fastest pace in six months.The survey comes as India faces growing pressure from higher energy costs linked to the conflict in Iran, which has pushed up fuel import bills and weighed on the rupee.To cushion the economic impact, authorities have raised fuel prices, curbed gold imports, and tightened foreign-exchange regulations.Bloomberg reported that the Reserve Bank of India is considering a range of measures to stabilize the currency, including a potential interest-rate increase, additional currency swaps, and efforts to attract more dollar inflows from overseas investors, after the rupee recently fell to a record low against the U.S. dollar.Markets are now awaiting the Reserve Bank of India's next monetary policy decision on June 5.Prime Minister Narendra Modi also urged citizens earlier in May to reduce fuel consumption and limit non-essential travel to help conserve foreign-exchange reserves.The outlook is also clouded by weather risks after India lowered its monsoon forecast to 90% of the long-term average, citing the likely emergence of El Niño.Reduced rainfall could hurt agricultural output, raising the risk of higher food inflation and stronger demand for fuel and power.

India's Private Sector Activity Improves in May, Final PMI Shows

India's private sector activity improved in May, helped by a faster jump in services activity, according to data from S&P Global and HSBC on Wednesday.The seasonally adjusted HSBC India Composite PMI Output Index rose to 59.3 in May from 58.2 in April, and was higher than the flash estimate of 58.1.Meanwhile, the HSBC India Services PMI rose to 59.8 in May, compared with 58.8 in April. It marked the strongest rate of growth since November 2025, beating the consensus forecast of 58.9.On the manufacturing side, the PMI stood at 55 in May, a rise from the previous month's figure of 54.7, and the consensus estimate of 54.3.

India to Launch Producer Price Indices to Replace Wholesale Price Index

India is poised to launch Producer Price Indices (PPI) that will cover output, input, and services, aimed at providing a more accurate picture of inflation from June 15, according to a release by the Ministry of Commerce & Industry on Tuesday.The government aims to replace the Wholesale Price Index, which is currently used to measure producer-level inflation, with the PPI over the next five years. Till then, both WPI and PPI data will be released simultaneously, after which WPI will be discontinued.The base year for WPI has also been revised to 2022-23 from 2011-12, starting from the upcoming data release on June 15.The PPI data will not be released on a consolidated basis but through three indices - Input PPI, Output PPI, and Services PPI. The Services PPI will be released quarterly, while the other two will be published every month."The transition from WPI to PPI is in alignment with the global best practices adopted by advanced economies and the recommendations of the International Monetary Fund (IMF)," the commerce ministry's statement said.

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US Markets12d ago

Asian Banking Sector Surges Past Automobiles to Lead May Activity Growth, S&P Global Survey Finds

Most Asian business sectors expanded in May, with banking overtaking the automobile industry, according to the S&P Global Asia Sector PMI released on Wednesday.Leading the upturn for the first time in seven months, the banking sector expanded at its second-steepest rate in over five and a half years. The growth follows a previous S&P Global forecast warning that credit losses in the Asia-Pacific banking sector could surge by approximately $180 billion due to the ongoing conflict in the Middle East.The automobile sector, last month's top performer, slipped to second place, though its pace of growth remained historically high.Of the 18 sectors monitored, only forestry and paper products, alongside construction materials, recorded a contraction in new orders; however, these declines were softer than in the previous month. In contrast, the transportation sector posted the strongest surge in new orders, despite looming concerns over U.S.-Iran negotiations.Volatility persists in the energy and oil industries due to the precarious state of U.S.-Iran talks aimed at ending the Middle East conflict."Oil prices received a boost yesterday as talks between the US and Iran appeared to break down -- again. This has become a common pattern in recent months, and there are still plenty of mixed messages," ING'S Warren Patterson and Ewa Manthey said in a Tuesday note. "As a result, oil prices continue to be whipsawed by quickly changing headlines."Operating expenses increased across all 18 sectors. S&P Global highlighted that real estate recorded a renewed rise in input prices, while the chemicals sector posted the sharpest cost inflation rate.All sectors increased their selling prices except for the consumer services sector.

Market Chatter: India Likely to Push for Better Trade Deals with US, UK in Upcoming Negotiations

India is poised to push for better deals from the U.S. and UK in separate trade negotiations with the two countries this week, according to a Bloomberg report on Tuesday.India is hosting a U.S. trade delegation led by chief negotiator Brendan Lynch and will have a separate meeting with UK Business and Trade Secretary Peter Kyle.As per the news report, India has warned that it may withdraw some concessions offered to the UK under the free trade agreement signed last year unless its steel exports are exempted from safeguard duties that will be imposed from next month.Also, Indian negotiators are pushing for exemptions from any tariffs that may arise from ongoing US trade investigations.Successful trade negotiations with the U.S. and UK could help to ease the pressure on the Indian economy and the falling rupee by attracting more foreign investment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)