Nifty 50

Securitization Remains Key Alternative for India's Nonbank Finance Companies, S&P Says

Securitization will still play a key role as an alternative for Indian nonbank finance companies in fiscal 2027, S&P Global Ratings said in a Monday release.Total securitization issuance rose by about 8.5% year on year to 2.55 trillion rupees in fiscal 2026, supported by a large expansion in originations by nonbank finance companies, S&P said.Nonbank finance companies will continue to avail of alternative funding sources such as securitization for funding diversification and borrowing cost reduction, S&P credit analyst Vidhya Venkatachalam said.Vehicle finance-backed securitization was high at about 40% of total issuance, supported by retained originations from large vehicle financiers, S&P said.S&P saw largely steady originations and asset performance, although a protracted Middle East war and impacts on fuel prices and supply chain could weaken the performance of some asset classes, Venkatachalam said.Sectors such as small-ticket and nonprime unsecured consumer finance, micro loans against property, microfinance, and commercial vehicles would be the first to feel the impacts of the Middle East conflict, the rating agency said.The effects could spill over gradually into secured products such as vehicle loans and affordable housing, but controlled underwriting practices should ease some credit risk in securitization transactions, according to S&P.

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International97d ago

Asia Week Ahead: Inflation Prints; GDP Estimates; and Trade Balance

For the week ahead in Asia, inflation, trade and growth data will be in focus as investors assess the region's economic momentum.The week opens with Japan's revised first-quarter GDP figures, followed by trade data from China and Taiwan on Tuesday.Mid-week, China's consumer and producer inflation reports will dominate headlines, while Japan will release producer price data.Thursday will be led by unemployment figures from South Korea and Malaysia, before Friday brings India's inflation report.Here's what to watch in the week ahead.MONDAY, June 8The week was off to a relatively light, but notable start with Japan's first-quarter GDP growth rate.Japan's economy expanded at an annualized rate of 1.8% in the first quarter, according to final data released by the Cabinet Office. The reading was revised down from the preliminary estimate of 2.1% growth, but exceeded the market consensus forecast for a 1.3% increase, according to Trading Economics.The data comes as attention turns to the Bank of Japan's June 15-16 policy meeting, where policymakers are expected to consider another interest-rate increase. The growth figures are unlikely to derail expectations for further policy tightening.TUESDAY, June 9Data readouts will pick up Tuesday, starting with China's trade figures for May.Economists at ING said they expect China's exports to rise 19.5% year-on year and imports to gain 36.4% for a trade surplus of $86.5 billion. The surplus would be an increase from the $84.8 billion recorded in April, thanks in part to higher tech prices, which are boosting both export and import prices, ING said.Taiwan will similarly report trade figures, with ING expecting the island nation's trade surplus to rise to $15.5 billion from $14.4 billion in April. "Strong export orders from previous months suggest external demand remains robust amid the AI boom," ING said in a preview.Markets will be watching for any revisions to South Korea's first-quarter GDP growth rate when the Bank of Korea releases its final estimate on Tuesday.The central bank's advance estimate indicated that South Korea's real GDP increased 3.6% annually and 1.7% on a quarterly basis.In Australia, a pair of reports will capture business and consumer sentiment, while in the Philippines, unemployment stats will be due.Other key data scheduled for the day include Japan's machine tool orders.WEDNESDAY, June 10China's consumer and producer price inflation will dominate headlines Wednesday.Consumer prices are expected to show an uptick of 1.3% year on year in May from 1.2% a month prior, reflecting higher manufacturers' input and output prices due to the Middle East conflict, the Wall Street Journal reported.Japan will similarly report its May producer prices, with analysts expecting the PPI to accelerate to 5.5% year on year from 4.9% in April, according to a Trading Economics consensus.Indonesia will release its May consumer confidence report on the same day.THURSDAY, June 11Unemployment data from South Korea and Malaysia will be the highlight of the day.According to Trading Economics, South Korea's unemployment rate could remain unchanged at 2.80% in May. The platform similarly forecasted that Malaysia's unemployment would remain steady at 2.90%, a level it has held since November 2025.A forward-looking report on consumer inflation expectations will be due in Australia. According to Trading Economics, consumer inflation expectations could rise to 6.5% for June from the 5.6% estimated in May.Meanwhile, Indonesia will report its retail sales stats for April.FRIDAY, June 12India's May inflation data will be in the news Friday.Economists at ING said they expect consumer prices to pick up to 3.9% year on year from the 3.48% recorded in the month prior due to a rise in gasoline prices. Still, the figure would be below the Reserve Bank of India's 4% target."The key risk to the outlook lies in potential second-round effects on food inflation. Fertiliser shortages, alongside the rising probability of an El Niño event, could exert upward pressure on food prices in the coming months and warrant close monitoring," ING said in a preview.Friday will also feature industrial production reports from Japan, Malaysia, and Hong Kong, with Malaysia additionally reporting its retail sales stats for April.In Thailand, the consumer confidence report for May will be due.On the activity front, the Business NZ manufacturing purchasing managers' index report will be due in New Zealand. CommBank said it expects manufacturing activity in May to stabilize, or even lift somewhat, given a decline in fuel prices over late April and May.The Business NZ PMI previously dropped to 50.5 in April from 52.8 in March.

^BSENifty 50Shanghai Composite^SZSESHA:601615

UK Defends Bilateral Talks With China in Three-Day Asia Trip

U.K. Foreign Secretary Yvette Cooper defended their meeting with China, which is part of a three-day trip in Asia that included a visit to India."China is the second largest economy and like the U.K. is a permanent member of the UN Security Council. We must engage for the U.K.'s security and prosperity in line with British values," Cooper said in social media platform X.Cooper met with Foreign Minister Wang Yi to discuss issues such as the reopening of the Strait of Hormuz and the war in Ukraine, as well as the Ebola virus.Prime Minister Keir Starmer's government started to seek rekindling bilateral ties with Beijing with a visit to China in January, but tensions still remain, according to Nikkei Asia on Monday.The U.K. barred wind turbine manufacturer Ming Yang Smart Energy (SHA:601615) from constructing a factory in Scotland in March. Later in April, the government seized the ownership of British Steel from Chinese steelmaker Jingye Group, the report said.Sibylline's chief analyst, Sam Olsen, said the U.K. government is making a "pragmatic engagement" with Beijing but both sides are not defining the relationship in the same way. Meanwhile, China Strategic Risks Institute's Sam Goodman said the U.K. and China should have a relationship "built on reciprocity", which will require China to rebalance trade and open its market, as well as cease overcapacity, according to the media outlet.Meanwhile, Cooper met with Indian Prime Minister Narendra Modi to deepen relations under the India-U.K. Vision 2035 framework, which includes technology, defense, education and climate in its scope, Nikkei Asia said.

Blackstone, CPPIB-Backed AirTrunk to Invest INR3 Trillion in India's AI and Cloud Markets by 2030

Blackstone and Canada Pension Plan Investment Board-backed data center operator AirTrunk plans to invest 3 trillion Indian rupees, or $30 billion, by 2030 in India to boost the country's digital infrastructure capacity, AirTrunk said in a Friday release.The proposed data center pipeline across several Indian states and union territories aims to support the South Asian country's goal to become a global hub for AI and cloud infrastructure while leading economic growth, employment, and technological development, the release said.

^BSENifty 50BOM:500104BOM:500547BOM:530965NSE:BPCLNSE:HINDPETRONSE:IOC

India Defends INR29 Increase in LPG Prices

The Ministry of Petroleum & Natural Gas has defended a recent 29-Indian-rupee increase in domestic liquefied petroleum gas (LPG) prices, saying Indian households still pay among the lowest cooking gas rates globally.The defense came after opposition parties criticized the price hike, which went into effect Sunday.The cost of a standard 14.2-kg LPG cylinder in Delhi has risen to 942 rupees from 913 rupees following the latest price hike.This marks the second major hike since the Middle East conflict began in February, following a 60-rupee increase on March 7.LPG cylinders are mainly sold by oil marketing companies, including Indian Oil Corporation (NSE:IOC, BOM:530965), Hindustan Petroleum Corporation (NSE:HINDPETRO, BOM:500104), and Bharat Petroleum Corporation (NSE:BPCL, BOM:500547).

International97d ago

Indian Households Expect Inflation to Rise Further, RBI Survey Shows

Amid heightening geopolitical tensions and global economic turmoil, Indian households expect domestic inflation to rise further, according to a survey released by the Reserve Bank of India on Friday.The bi-monthly data of the Reserve Bank of India's Inflation Expectations Survey of Households for May showed that the current median inflation perception of households rose by 60 basis points to 7.8% from 7.2% in March.The survey was conducted from May 2 to May 11 in 19 major Indian cities.Expectations for inflation over the next three months jumped 80 basis points, while the one-year outlook climbed 50 basis points, reaching 9.3% for both horizons, the survey showed.Separate surveys conducted by the central bank also showed a decline in confidence among both urban and rural consumers.Urban consumer confidence, measured by the Current Situation Index (CSI), dropped to 90.7 in May from 95.7 in March. The Future Expectations Index (FEI), while remaining above the neutral 100 mark, declined to 118.7, the lowest level since September 2023.Meanwhile, the rural CSI slipped to 95.2 from 98.0 in March, while the rural FEI fell to 119.3 from 125.1.

India Scraps Capital Gains Tax on FII Government Bond Investments

The Indian government on Friday removed the capital gains tax, both long-term and short-term, on investment by foreign institutional investors (FIIs) in government bonds as well as the withholding tax they must pay on the interest income from these debt instruments.India has exempted FIIs and the Bank for International Settlements from CGTs on receipts arising from interest or sale of government securities.The exemption will take effect retrospectively from April 1, according to a statement by the Ministry of Finance.At present, FIIs pay 12.5% tax on long-term capital gains, 30% on short-term capital gains, and around 20% withholding tax on interest income.The move is seen as an attempt to rein in the fall in the value of the Indian rupee and attract more foreign investment.

India's Forex Reserves Rise to $682.32 Billion

India's foreign exchange reserves rose by $938 million to $682.32 billion for the week ended May 29, according to the Reserve Bank of India's Weekly Statistical Supplement released Friday.This compares with a $7.5 billion decrease recorded in the previous week.Foreign currency assets, the largest component of the reserves, rose by $3.12 billion to $546.15 billion, while gold reserves decreased by $2.19 billion to $112.6 billion.

India's FY25-26 GDP Rises 7.7%

India's GDP grew 7.7% for the full fiscal year ended March 31, 2026, the National Statistical Office said in a Friday release.The growth was higher than the 7.1% expansion recorded in fiscal year 2024-2025.

India's Q4 GDP Rises 7.8%

India's GDP grew 7.8% year-over-year in the fourth quarter ended March 31, the National Statistical Office said in a Friday release.The growth was the same as the 7.8% expansion in the previous quarter.The consensus forecast was for a 7.2% increase, according to Investing.com.

^BSENifty 50BOM:500103BOM:532296NSE:BHELNSE:GLENMARK

Asia100d ago

Indian Equities Slip on Friday After RBI Flags Higher Inflation, Lower Growth Outlook

Indian benchmark indices ended modestly lower on Friday, giving up early gains as investors assessed the Reserve Bank of India's latest economic projections and booked profits following the monetary policy announcement.The BSE Sensex fell 116.67 points, or 0.2%, to close at 74,243.34, while the NSE Nifty 50 declined 49.85 points, or 0.2%, to settle at 23,366.70.Markets traded in a volatile range after the RBI left the repo rate unchanged at 5.25%, in line with expectations. However, the central bank highlighted risks stemming from the prolonged West Asia conflict, elevated energy prices and global supply-chain disruptions.Investor sentiment was weighed down by the RBI's revised forecasts, which raised its inflation estimate for 2026-27 to 5.1% from 4.6% and lowered its GDP growth projection to 6.6% from 6.9%. The central bank cited the impact of higher global energy prices on domestic fuel costs and broader economic activity.In corporate developments, Bharat Heavy Electricals (NSE:BHEL, BOM:500103) secured an engineering, procurement and construction contract worth 210 billion rupees from Meja Urja Nigam for the 3x800 MW Meja Supercritical Thermal Power Project Stage-II in Uttar Pradesh.Glenmark Pharmaceuticals (NSE:GLENMARK, BOM:532296) said its U.S. subsidiary launched Lacosamide Injection USP, a generic version of Vimpat Injection, for the treatment of certain seizure disorders.

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.

Asia100d 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.

Asia100d 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%.