Indian bond market strengthens as inflation eases and anticipated RBI rate cuts: Jefferies
Jefferies reports a positive outlook for Indian bonds due to falling inflation and anticipated RBI rate cuts. India's 10-year government bond has significantly outperformed US Treasuries. Global investors are increasingly drawn to Indian bonds, seeking higher yields and stability amidst a shift away from G7 debt, signaling confidence in the Indian market.from Latest Business News Today: Stock Markets, Financial News, India Business & World Business News https://ift.tt/lXvgMCm
IndiGo will launch direct daily flights connecting Mumbai and Adampur in Jalandhar. The service starts on July 2, 2025. Adampur becomes IndiGo’s 92nd domestic destination. This new route aims to boost connectivity for business and leisure travelers. It will also strengthen trade between Punjab and Mumbai. The airline focuses on affordable and hassle-free travel.
Spanish inflation dipped below the European Central Bank's two percent target in May, preliminary data showed Friday, boosting the case for more interest rate cuts in the eurozone. With inflation close to the two-percent target, the ECB shifted last year to cutting interest rates to boost the eurozone's sluggish economy. mig/ds/lth
Adani Airport Holdings Ltd seeks government approval to treat Mumbai and Navi Mumbai airports as a single unit for tariff calculations, aiming for uniform charges and increased traffic at the new Navi Mumbai facility. The move addresses concerns about higher fees potentially deterring airlines from using Navi Mumbai, where AAHL has invested significantly.
Security printing costs surged by 25% to Rs 6,372.8 crore in 2024-25, driven by increased banknote printing. While Rs 500 notes dominated circulation, the share of Rs 500 notes declined marginally in value terms. The majority of withdrawn Rs 2000 notes returned to banks, and e-rupee circulation saw a significant rise.
European companies are reducing expenses in China. They are also halting investment plans. A new survey reveals this trend. China's economic slowdown is impacting profits. Local competition is also a factor. The property sector crisis affects consumer spending. Europe and the United States are resisting Chinese exports. Concerns rise about Chinese imports affecting domestic manufacturing.
Adani Ports is poised to re-enter the local bond market after a 17-month gap, planning a record-breaking rupee-denominated debt issue targeting 50 billion rupees through 15-year bonds. This marks their largest and longest-tenured bond offering to date, with an expected coupon rate of around 7.75%, despite ongoing Sebi investigations related to Hindenburg Research's allegations.
Bengaluru has cemented its position as a global tech powerhouse, boasting a workforce exceeding 1 million and leading in AI talent development. The city ranks among the top 12 global tech hubs, attracting significant venture capital and benefiting from strong institutional support. Other Indian cities like Delhi-NCR and Mumbai are also experiencing substantial growth in the tech sector.
Peter Schiff questions why central banks favor gold over Bitcoin as they prepare for a post-dollar era, highlighting record gold purchases amid rising distrust in the US dollar. This trend reflects gold's enduring role as a reliable reserve asset, contrasting with Bitcoin's volatility and limited institutional acceptance. Analysts suggest geopolitical tensions and economic uncertainty further bolster gold's appeal.
The Global Trade Research Initiative (GTRI) has lauded the reinstatement of the RoDTEP scheme, emphasizing the need for a consistent five-year implementation to boost India's export competitiveness. GTRI voiced concerns over inconsistent policy handling, despite the scheme's WTO compliance.
JSW Paints, under Sajjan Jindal, is nearing the acquisition of Akzo Nobel India, valuing Akzo Nobel NV’s stake at approximately Rs 9,000 crore. This deal could position JSW Paints as a major player in both decorative and industrial paints. The acquisition, expected to be finalized soon, will trigger an open offer and is financed through promoter equity and bank loans.
India's semiconductor design GCCs faced a nearly 15% drop in job openings during FY25 due to geopolitical uncertainties and supply chain issues. While overall hiring slowed, demand for specialized skills like VLSI and embedded systems remained stable, particularly in mid-sized GCCs. Despite short-term fluctuations, a positive long-term outlook is anticipated due to increased global focus and government initiatives.
Dalal Street is gearing up for a busy week with four main-board IPOs, including Schloss Bangalore and Aegis Vopak Terminals, aiming to raise over Rs 6,600 crore. These new offerings occur amidst a slowdown in fresh listings compared to the previous year. Despite this, a significant pipeline of IPOs is building up, with many companies awaiting regulatory clearance.
A World Bank study reveals Pakistan's General Sales Tax exacerbates poverty by disproportionately burdening low-income families. Education spending, particularly at primary levels, also contributes to inequality. Conversely, the Benazir Income Support Programme effectively reduces inequality by providing financial aid to the poorest households, highlighting the need for tax reforms and improved social protection.
National Securities Depository Ltd (NSDL) reported a rise in net profit for both the quarter and full fiscal year 2025, alongside announcing a dividend. Ahead of its IPO, NSDL has reduced the issue size to 5.01 crore shares via offer-for-sale. Sebi has extended the listing deadline to July 31, 2025.
Blue Water Logistics has set the IPO price band at Rs 132–135 per share, aiming to raise Rs 40.5 crore through a fresh issue of shares. Opening on May 27 and closing on May 29, the IPO plans to list on NSE Emerge. The company will allocate funds towards capital expenditure, working capital, and general corporate purposes.
India's domestic aviation sector experienced a 10.2% year-on-year increase in passenger traffic in April 2025, reaching 145.5 lakh passengers. The full financial year 2024-25 saw a 7.6% rise in domestic passengers and a significant rebound in international travel. ICRA maintains a stable outlook, projecting continued growth and stable yields for the industry in FY26.
Foreign portfolio investors reversed May's inflows, withdrawing Rs 4,84.32 crore this week, driven by global bond market turmoil. Despite initial positive inflows, a significant sell-off occurred mid-week, contributing to a net outflow of Rs 98,516 crore from Indian equities in 2025. Experts attribute this to external factors and options market dynamics, rather than fundamental weaknesses in the Indian economy.
Despite India's concerns over Pakistan's support for terrorism, the IMF has disbursed a $1 billion bailout package, stating Pakistan met all required targets under the Extended Fund Facility. The decision followed a review where the IMF board determined Pakistan had made progress on reforms.
India's private sector experienced a significant acceleration in May, achieving its fastest expansion in over a year, according to HSBC Flash PMI data. The surge was primarily driven by the services sector, which saw a 14-month high in output. While manufacturing showed mixed signals, overall private sector activity reached a 13-month peak, fueled by strong demand and renewed business confidence.
Morgan Stanley anticipates the Reserve Bank of India to implement steeper interest rate reductions, potentially totaling 100 bps, to bolster slower economic growth while maintaining controlled inflation. Further rate cuts are expected, potentially bringing the repo rate down to 5.5%.
Morgan Stanley has revised India's economic growth forecast upwards to 6.2% for FY26 and 6.5% for FY27, citing easing US-China trade tensions and strong domestic demand. The firm anticipates continued policy support, with easier monetary policy and prioritized capital expenditure, fueling growth. Consumption recovery is expected to broaden, alongside robust public and household capital expenditure.
Indian banks are anticipated to receive unique national calling numbers, equipped with incoming call capabilities to enhance customer verification and trust. Discussions are underway with the government and RBI to implement this system, aiming to replace the current '1600xx' series, which lacks inbound call support.
India is poised for the world's fastest satellite-based communication rollout, driven by government's satcom policy advancements. Following TRAI's spectrum allocation recommendations, multiple firms have applied for licenses, potentially boosting the sector from $2.3 billion to $20 billion by 2028. Satellite internet access will soon be available nationwide, bridging the digital divide in underserved regions.
Indian ports are set to benefit from the global China+1 strategy as companies diversify manufacturing beyond China, according to Moody's Ratings. This shift could significantly boost port activity in India.
Air India is aggressively expanding its international connectivity through codeshare partnerships, aiming for over 10 new agreements this financial year. This strategy, crucial for competing with established global airlines, focuses on North America, Europe, and Africa.
A new S&P Global India Research study indicates that India is poised to attract more global manufacturing investment due to evolving trade dynamics. The shift towards local sourcing and regional integration could boost India's manufacturing sector, fostering technological advancement and job creation. Despite a projected GDP slowdown, India's resilience and policy initiatives position it for growth in global manufacturing.
Adani Defence & Aerospace collaborates with Sparton to produce advanced anti-submarine warfare systems, including sonobuoys, in India. This partnership marks Adani Defence as the first private Indian company to offer indigenous sonobuoy solutions, aligning with the 'Aatmanirbhar Bharat' initiative.
Recent US-China trade talks in Geneva offer a glimmer of hope for China's struggling manufacturing sector, yet the job market remains strained. While a potential crisis of widespread job losses has been averted, tariffs still linger around 30%, posing a continued burden on economic development.
A B&K Securities analysis indicates that disruptions in European chemical operations offer Indian manufacturers a chance to expand, despite challenges. High EU operational costs contrast with India's strong trade relationship, being the fifth-largest exporter to the bloc. However, Chinese competition and weak European demand, compounded by high energy costs, pose significant hurdles to sustained growth for Indian chemical exports.
Federal Reserve Chair Jerome Powell announced a planned 10% workforce reduction over the next few years, impacting roughly 2,400 positions nationwide. This initiative aligns with a broader federal effort to scale back government staffing, with leadership directed to consolidate functions and modernize practices. A voluntary deferred resignation program will be offered to eligible staff.
Defence Minister Rajnath Singh on Friday urged the IMF to reconsider its loan to Pakistan, fearing funds will be used for terror infrastructure. India abstained from the vote, citing Pakistan's history of misusing funds and supporting cross-border terrorism. India also highlighted the military's significant control over Pakistan's economy, hindering structural reforms.
Following BluSmart's operational halt due to funding issues and misconduct allegations, lenders are reclaiming and offloading 1500-2000 EVs. Evera has already acquired 300 cars and seeks more, while Everest Fleet considers deals. Lenders aim to sell or lease EVs, with smaller operators also approached. Evera focuses on redeploying assets, particularly for airport services.
Gold surged in FY25, gaining 41% in USD and 33% in rupee terms, driven by its safe-haven status and central bank buying. Despite this, Indian equities outperformed gold over longer periods.
The India-UK FTA is poised to significantly boost India's textile exports by eliminating the 8-12% UK import duty. This levels the playing field with competitors and is expected to improve margins and drive scale for Indian exporters by FY27. The agreement, coupled with other supportive factors, enhances India's reputation and supports long-term growth in the textile industry.
India's wholesale price inflation hit a 13-month low of 0.85% in April 2025, driven by lower prices for food, fuel, and manufactured goods. Experts anticipate a further decline in the coming months. Retail inflation also eased, potentially paving the way for another rate cut by the RBI in June to bolster economic growth amid global challenges.
Jaguar Land Rover is experiencing a sales slowdown in India due to uncertainty surrounding the India-UK FTA, despite recent impressive growth. While some buyers are hesitant, anticipating potential price reductions, locally assembled Land Rover models may not be significantly affected. The Defender and Range Rover SUVs have been key drivers of JLR India's success.
India plans to impose tariffs on US goods. This action responds to US tariffs on steel and aluminium. The US tariffs impact Indian exports significantly. India's move could affect ongoing trade talks between the two nations. India had previously retaliated against similar US actions. The country reserves the right to modify its tariff plans based on future developments. The WTO has been notified of India's intentions.
India is strategically planning to become a global shipbuilding hub by identifying coastal land in Tamil Nadu, Gujarat, and Andhra Pradesh for mega facilities. A potential Rs 10,000 crore shipyard in Thoothukudi, Tamil Nadu, may be established through a joint venture between Cochin Shipyard Limited and South Korea's HD Hyundai. The initiative is supported by government policies and aims to significantly increase India's share in the global shipbuilding market.
India's Department of Telecommunications is finalizing rules for satellite spectrum allocation under the Telecommunications Act, expected to be shared on a first-come-first-served basis. Eutelsat OneWeb, Jio-SES, and Starlink await final clearance to begin or test commercial services. The new authorization regime follows TRAI recommendations, including a 4% AGR spectrum usage fee for five years.
Global markets surged following news of "substantial progress" in US-China trade talks, with both nations agreeing to reduce retaliatory tariffs significantly for 90 days. Hong Kong's Hang Seng index led gains in Asia, jumping 3%, while European indices also reacted positively. The US will reduce tariffs to 30%, and China to 10%, boosting hopes for an end to trade tensions.
LTIMindtree has secured a significant seven-year deal worth $450 million with a global agribusiness company, marking its largest contract to date. The IT firm will implement an AI-driven operating model, providing application management, infrastructure support, and cybersecurity services. This agreement is expected to bolster LTIMindtree's position in delivering digital transformation services amid a challenging macroeconomic environment for the IT sector.
Tata Electronics is significantly boosting its iPhone enclosure production at its Hosur facility, aligning with Apple's plan to make India a primary iPhone manufacturing hub for the US. The expansion aims to double the existing capacity.
India and the European Union are set to begin the 11th round of FTA negotiations, aiming to finalize the first phase soon and the second by 2025. Discussions will cover market access, investment, and government procurement. Both sides seek enhanced trade opportunities, with the EU focusing on duty reductions and India on improved access for key exports.
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