The change in repo rate is the most reliable predictor among key banking metrics like advances, deposits, and Net Interest Income (NII) that affect lending activities, a report said on Wednesday, adding that banks need enhanced assessment of the interest rate impact.

However, it takes 12 to 24 months for the full effects of rate changes to materialise in banking performance as transmission is neither immediate nor uniform, showed a Boston Consulting Group (BCG) study.

"Such policy rates are often increased to cool down an overheated economy, to rein in inflation," said Deep Narayan Mukherjee, Partner and Director, BCG.

"While rates act as enablers, the actual expansion of credit hinges on borrower sentiment and lenders’ risk appetite," Mukherjee added.

ISRO on Wednesday said it has successfully conducted two hot tests of the Gaganyaan Service Module Propulsion System (SMPS), a key advancement for the Gaganyaan human spaceflight mission.

The hot tests were carried out on July 3 at the ISRO Propulsion Complex (IPRC) in Mahendragiri in Tamil Nadu’s Tirunelveli District.

“Two short-duration hot tests were conducted for the 30s and 100s to validate the test article configuration. The overall performance of the propulsion system during these hot tests was normal as per pre-test predictions,” ISRO said.

"During the 100s test, simultaneous operation of all RCS thrusters in different modes (steady state; pulsed) along with all LAM engines was also successfully demonstrated," the agency added.

While market volatility has made some investors cautious, we’re also witnessing a healthy shift towards hybrid and arbitrage funds -- a trend that shows maturing investor behaviour and a preference for balanced risk strategies in uncertain times, Venkat N Chalasani, CEO of the Association of Mutual Funds in India (AMFI), said on Wednesday.

India’s economic fundamentals remain strong, and we continue to encourage investors to stay committed to their financial goals, he said while presenting the June data for the mutual fund industry.

The mutual fund industry’s assets under management (AUM) crossed Rs 74 lakh crore last month, setting a new milestone. This growth continues to be powered by strong retail participation and the steady rise in SIP inflows, which stood at Rs 27,269 crore for the month.

Mutual fund systemic investment plan (SIP) inflows reached a record high of Rs 27,269 crore in the month of June, rising 2 per cent from Rs 26,688 crore in May, the Association of Mutual Funds in India (AMFI) data showed on Wednesday.

This marks the first time SIP inflows have surpassed the Rs 27,000 crore mark.

The overall net assets under management (AUM) of the mutual fund industry rose to an all-time high of Rs 74.41 lakh crore as against Rs 72.20 lakh crore in May and Rs 69.99 lakh crore in April, according to the AMFI data.

For non-banking finance companies (NBFCs) in India, education loans have been the fastest-growing asset class, clocking over 50 per cent growth in the assets under management (AUM) over the past few years, a report said on Wednesday. This fiscal (FY26), growth is seen moderating to 25 per cent with AUM reaching Rs 80,000 crore.

The pace is likely to halve this fiscal as disbursements for pursuing educational courses in the US decelerate following a raft of policy changes in that country, according to the report by Crisil Rating.

To mitigate the impact, NBFCs are diversifying into new geographies and product adjacencies. While non-performing assets (NPAs) have remained stable so far, asset quality will be monitorable given the global uncertainties and a large proportion of AUM (85) remaining under contractual principal moratorium, the report mentioned.

The education loan AUM of NBFCs grew a rapid 48 per cent to Rs 64,000 crore last fiscal. That followed an even faster 77 per cent growth in fiscal 2024.

The Indian benchmark indices opened lower on Wednesday amid mixed global cues as selling was seen in the IT, PSU bank and financial service sectors.

At around 9.34 am, Sensex was trading 181.63 points or 0.22 per cent down at 83,530.88 while the Nifty declined 44.25 points or 0.17 per cent at 25,478.25.

"After a flat to negative opening, Nifty can find support at 25,500 followed by 25,400 and 25,300. On the higher side, 25,600 can be an immediate resistance, followed by 25,700 and 25,800,” said Hardik Matalia from Choice Broking.

According to analysts, a significant takeaway from the recent global market trends is that the markets are largely ignoring the noise from the tariff front and are waiting for clarity to emerge.

The cost of home-cooked vegetarian and non-vegetarian thalis declined 8 per cent and 6 per cent (year-on-year), respectively, in June, a report showed on Tuesday.

The decline in vegetarian thali cost on-year was due to a sharp drop in prices of vegetables on a high base, according to the Crisil Intelligence report.

“The cost of both vegetarian and non-vegetarian thalis declined on-year in June, driven by softening vegetable prices. Tomato prices, in particular, saw a sharp on-year decline,” said Pushan Sharma, Director, Crisil Intelligence.

In coming months, however, “we expect thali costs to inch up sequentially as seasonal changes push up vegetable prices. Onion prices are expected to rise moderately due to the absence of fresh arrivals and controlled release of stored rabi stock,” Sharma mentioned.

The domestic benchmark indices were trading marginally up on Tuesday in the early trade, after the US President Donald Trump announced that “we are close to a deal with India”.

At around 9.30 am, Sensex was trading 91.57 points or 0.11 per cent up at 83,534.07 while the Nifty added 22.25 points or 0.09 per cent at 25,483.55.

Buying was seen in the IT, PSU bank and financial service sectors. According to analysts, the announcement of unilateral tariffs on 14 countries and the exclusion of India from the list indicate that a trade deal between India and US will be announced soon.

"This has already been largely discounted by the market; the unknown areas are the details of possible sectoral tariffs on segments like pharmaceuticals. Market reaction will depend on these details," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Securitisation volume rose nearly 9 per cent to around Rs 49,000 crore in the first quarter (April-June) of 2025-26, compared with Rs 45,000 crore in the same quarter of the previous financial year, according to a Crisil Rating report released on Monday.

Issuances by non-banking financial companies (NBFCs), led by large players, posted a strong year-on-year growth of about 24 per cent. This helped offset the lower origination volume by banks, supporting the overall securitisation market volume, the report states.

Securitisation in banking is a process where illiquid assets like loans are pooled together, repackaged, and sold as securities to investors. This allows banks to free up capital, transfer risk, and provide investors with access to diversified investments.

India’s foreign exchange reserves once again crossed the $700 billion mark, reaching $702.78 billion for the week ending June 27, according to data released by the Reserve Bank of India (RBI) on Friday.

This marks a significant rise of $4.8 billion from the previous week, when reserves stood at $697.93 billion.

This is the first time in nine months that India’s forex reserves have gone above the $700 billion level. The reserves had last touched an all-time high of $704.88 billion in end-September 2024.

After witnessing a highly volatile session, the Indian stock market ended in green on Friday amid value buying in IT and banking stocks as talks progressed on the interim India-US trade deal.

Touching an intra-day low at 83,015, the Sensex bounced back to end at 83,432.89, up 193.42 points or 0.23 per cent against the last session's closing of 83,239.47. Similarly, Nifty closed 0.22 per cent or 55.70 points higher at 25,461.

"The Indian market is experiencing a pause as investors adopt a wait-and-watch strategy ahead of the impending US tariff deadline with mixed global cues," said Vinod Nair, Head of Research, Geojit Investments Limited.

The Reserve Bank of India (RBI) on Thursday withdrew Rs 1,00,010 crore from the banking system through a seven-day variable rate reverse repo (VRRR) auction.

The move is aimed at reducing the excess liquidity currently present in the banking system. According to a statement by the RBI, it received bids worth Rs 1,70,880 crore during the auction.

“Out of this, the central bank accepted Rs 1,00,010 crore at a cut-off rate of 5.47 percent,” the Central Bank said in its statement.

This step is expected to reduce the surplus liquidity and could lead to a rise in short-term overnight rates.

As per the RBI’s latest data, the banking system had a liquidity surplus of around Rs 4.04 lakh crore as of July 3.

Defence stocks were trading in positive territory on Friday, a day after the union government approved the purchase of defence equipment worth Rs 1.05 lakh crore.

Shares of all major public sector defence companies, including BEL, BEML, Hindustan Aeronautics, and Mazagaon Dock Shipbuilder, rose by up to 4.5 per cent during intraday trading.

Mazagaon Dock Shipbuilders shares were up 1.46 per cent at Rs 3,337.80 on NSE. The shipbuilding company's shares opened at Rs 3,320.0 and rose to hit an intra-day high of Rs 3,369.0 during the trading hours.

Shares of Nuvama Wealth management plummeted over 10 per cent on Friday after the Securities and Exchange Board of India (SEBI) barred Jane Street, a US-based trading entity, from accessing the domestic equity market, asking them to deposit alleged illegal gains of Rs 4,843.5 crore in an account in favour of the market's regulator.

Nuvama Wealth Management is Jane Street's trading partner for Indian stock markets.

Around 12:45 p.m., Nuvama Wealth shares were trading at Rs 7,408.50, down 9.45 per cent on the National Stock Exchange (NSE) compared to the previous day's closing price.

The scrip started trading in negative territory at Rs 7,940.0, falling Rs 235 against the last session's closing price of 8,175.50 on the exchange.

In one of the biggest market manipulation cases India has witnessed in recent years, US-based trading firm Jane Street is under the scanner for allegedly using sophisticated strategies to rig Indian stock indices and pocket over Rs 43,000 crore in options profits.

According to the Securities and Exchange Board of India (SEBI), Jane Street and its related entities devised an elaborate intra-day trading strategy to artificially inflate and deflate the Bank Nifty index -- mainly on expiry days -- to gain from massive options positions.

The regulator found that between January 1, 2023, and March 31, 2025, Jane Street entities booked staggering profits of Rs 43,289 crore, largely from Bank Nifty options.

This was allegedly achieved by manipulating prices in the cash and futures market -- with precision, scale, and timing that pointed to deliberate intent.

The Securities and Exchange Board of India (SEBI) has barred US trading entity Jane Street and three of its related entities from accessing the market, directing them to deposit illegal gains of Rs 4,843.5 crore in an account in favour of the markets regulator.

In its order, the regulator has also directed a debit freeze on the bank accounts of these entities, which include JSI2 Investments Private Ltd, Jane Street Singapore Pte. Ltd and Jane Street Asia Trading Ltd.

According to the SEBI order, Jane Street earned Rs 43,289.33 crore in profits through trading in index options on Indian exchanges between January 1, 2023, and March 31, 2025.

As per the order, Jane Street on 14 expiry days used to heavily buy Bank Nifty futures in huge amounts as well in the cash segment and sell Bank Nifty options in big numbers -- all in the morning.

The domestic benchmark indices opened marginally higher on Friday amid mixed global cues, as buying was seen in the IT, PSU bank and financial service sectors in the early trade.

At around 9.34 am, Sensex was trading 32.52 points or 0.04 per cent up at 83,271.99 while the Nifty added 3.45 points or 0.01 per cent at 25,408.75.

According to analysts, Nifty 50 opened on a positive note but failed to sustain momentum, breaching its intraday support at 25,450 and forming a bearish candlestick pattern on the daily chart.

"This development may signal a potential trend reversal; however, further confirmation is awaited. A sustained move above 25,600 could pave the way for a rally toward 25,750," said Hardik Matalia, Derivative Analyst of Choice Broking.

The Indian stock markets ended lower on Thursday after a day of cautious trading, as late selling pressure erased earlier gains. Investors remained watchful amid hopes of a possible trade agreement between the US and India.

The Sensex touched an intra-day high of 83,850 in early trade but eventually closed 170.22 points or 0.2 per cent lower at 83,239.7. Similarly, the Nifty also slipped by 48.1 points or 0.19 per cent, settling at 25,405.3 by the end of the session.

Markets traded volatile on the weekly expiry day and ended marginally lower, continuing the ongoing consolidation phase, said Ajit Mishra of Religare Broking Limited.

After an initial uptick, the Nifty oscillated sharply in both directions while remaining within Wednesday’s trading range, ultimately closing at 25,405.30.

“However, the overall trend remains bullish and is expected to stay intact unless the index decisively breaks below the 25,200-mark. On the upside, the 25,650–25,750 zone is likely to act as an immediate hurdle,” Mishra mentioned.

India's real GDP growth is projected to grow in a range of 6.4-6.7 per cent in FY26, reinforcing the country’s position as the fastest-growing major economy in the world, the Confederation of Indian Industry (CII) said on Thursday.

CII President Rajiv Memani said that at a time when global economic and political volatility is at its highest in over two decades, India stands out as a bright spot in an increasingly fractured global economy.

Speaking at a CII event in the national capital, Memani said competitiveness is India’s passport to prosperity.

"But it must be earned through reform, through innovation, and through trust. CII remains committed to working alongside the government, industry, and citizens to accelerate India’s rise as a confident, competitive, and globally connected economy," he said, adding that India’s internal momentum is strong enough to withstand external shocks.

India Inc has shown remarkable financial strength over the last five years, with corporate profits growing nearly three times faster than the country's GDP between FY20 and FY25, a new report said on Thursday.

The profit-to-GDP ratio has risen significantly to 6.9 per cent -- reflecting strong earnings performance despite economic challenges, according to the data compiled by Ionic Wealth (Angel One).

The report, titled ‘India Inc. FY25: Decoding Earnings Trends & Path Ahead’, highlights that FY25 was a resilient year for Indian companies.

Revenue of Nifty 500 firms grew by 6.8 per cent year-on-year (YoY), while EBITDA rose by 10.4 per cent and profit after tax (PAT) increased by 5.6 per cent.

Notably, mid-cap and small-cap companies outshined large-cap firms in terms of profit growth, recording 22 per cent and 17 per cent PAT growth respectively, compared to just 3 per cent for large caps.

The Indian stock market saw strong performance across all segments in June, with the Nifty Smallcap 250 index leading the way with a sharp gain of 5.73 per cent, a new report said on Thursday.

The Nifty Midcap 150 followed with a 4.09 per cent rise during the month, according to the data compiled by Motilal Oswal Asset Management Company (AMC).

Not only did small and mid-cap stocks deliver robust returns in June, but their performance over the past three months has also been impressive.

The Nifty Smallcap 250 jumped 17.83 per cent in the Q1 FY26, while the Nifty Midcap 150 climbed 15 per cent during the same period.

Large-cap indices, too, joined the rally. The benchmark Nifty grew by 3.1 per cent, and the Nifty Next 50 was up 3.35 per cent in June.

The growth in India's services sector activity surged to a 10-month high in June, driven by robust demand in both the domestic and export markets, according to an HSBC survey released on Thursday.

The seasonally adjusted HSBC India Services PMI Business Activity Index, compiled by S&P Global, rose from 58.8 in May to 60.4 in June. The PMI threshold of 50.0 is neutral mark that separates growth from contraction on the index.

New orders expanded at the quickest rate since August 2024. Services companies benefited most from the continued strength of the domestic market, alongside a marked increase in new export business. Overseas demand particularly improved from the Asian, Middle Eastern and US markets, according to panel members, the survey states.

The Indian benchmark indices opened higher on Thursday amid positive global cues, as buying was seen in the IT, pharma and auto sectors in the early trade.

At around 9.25 am, Sensex was trading 68.28 points or 0.08 per cent up at 83,477.97 while the Nifty added 19.30 points or 0.08 per cent at 25,472.70.

Analysts said they are only consolidating the bullish rectangle breakout and as long as the 25,200-25,270 area is protected, bulls are merely taking a breather.

“Under 25,200, we risk 25,000. On the upside, the recent swing high at 25,670 is where the bullish trigger lies," said Akshay Chinchalkar, Head of Research, Axis Securities.

With the deadline for the US tariff pause expiring next week, it will be interesting to see if the current optimism globally holds up.

The stock markets ended lower on Wednesday, as investor sentiment remained cautious due to US President Donald Trump's firm stand on the upcoming tariff deadline.

The nervousness led to a risk-off mood among investors, pulling the benchmark indices lower.

After rising to an intra-day high of 83,935.29, the Sensex lost momentum and closed at 83,409.69, down 287.6 points or 0.34 per cent.

The Nifty also declined by 88.45 points or 0.35 per cent to end the day at 25,453.4.

As the monsoon continues its journey across the country, the Indian Meteorological Department (IMD) on Wednesday predicted light to heavy rainfall in Delhi and several other regions over the next week.

IMD scientist Akhil Shrivastava, said the national capital can expect sporadic rainfall in the coming days.

"Monsoon officially arrived in Delhi on June 29, accompanied by light showers. Our forecast suggests that during the next seven days, Delhi may experience light to heavy rainfall. There will also be periods of partly cloudy skies, with chances of thunderstorms and lightning," he said.

Shrivastava emphasised that while rain will occur, it is likely to remain on the lighter side in Delhi for most of the week.

Moving beyond the capital, the IMD has issued significant warnings for several states expecting intense rainfall.

India's manufacturing activity accelerated to a 14-month high in June, triggered by a surge in international sales that boosted production and led to record-breaking hiring, according to a latest survey.

The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, rose to 58.4 in June from May's 57.6. The headline figure was above its long-run average of 54.1 and pointed to a substantial improvement in the health of the sector.

“Companies also welcomed one of the fastest increases in external orders in over 20 years of survey history. Goods producers lifted input buying to the greatest extent in 14 months, which supported a further expansion in stocks of purchases," the survey stated.

India’s GDP growth is projected at 6.3 per cent in current fiscal (FY26) despite external headwinds, an HSBC report said on Wednesday, adding that with 70 per cent of the indicators growing positively, the Q2 growth (April-June) is trending at 6.8-7 per cent, with the informal sector taking the lead.

HSBC Global Investment Research has updated its 100 indicators framework, which maps high frequency indicators to various sectors, and gives a thorough and sequential read on growth.

“After an amazing April came a measured May with 67 per cent of the indicators growing positively (compared to 72 per cent in April). Still, from a quarterly perspective, Q2 is doing better than Q1 2025 (70 per cent vs 67 per cent),” the findings showed.

The mutual fund exposure in the non-banking financial companies (NBFCs) grow 32.5 per cent to reach Rs 2.77 lakh crore in May, according to a new report.

This year-on-year growth was driven by commercial papers (CPs) and corporate debt, which remained over Rs 2 lakh crore for 14 consecutive months, according to a CareEdge Ratings report.

The previous records were Rs 2.69 lakh crore in April this year and Rs 2.64 lakh crore in July 2018.

However, the share of NBFC credit in total bank credit decreased from 9.3 per cent in May 2024 to 8.5 per cent in May this year, the data showed.

The State Bank of India (SBI) has decided to report the loan account of Reliance Communications as “fraud” in a case that dates back to August 2016.

Reliance Communications said in an exchange filing that this disclosure is being made pursuant to the rules of the Securities and Exchange Board of India (SEBI).

“This is to inform you that Company has received letter dated June 23, 2025 (received on June 30, 2025) from SBI (marked to he Company and its erstwhile director - Shri Anil Dhirajlal Ambani), inter alia, stating that SBI has decided to report the loan account of the Company as “fraud” and to report the name of Shri Anil Dhirajlal Ambani (erstwhile director of the Company) to the RBI, as per the extant RBI guidelines,” the company said in the BSE filing.

The Indian benchmark indices opened higher on Wednesday amid positive global cues, as buying was seen in the IT and auto sectors in the early trade.

At around 9.23 am, Sensex was trading 225.5 points or 0.27 per cent up at 83,922.79 while the Nifty added 58.75 points or 0.23 per cent at 25,600.55.

According to analysts, after breaking the 24,500-25,000 range, Nifty has moved to the new range of 25,200-25,800.

Positive news about a possible trade deal between India and US can help break the upper limit of the range but it would be difficult to sustain the Nifty at higher levels for long, they added.

The Goods and Services Tax (GST) has been one of the most significant reforms undertaken in India over the past decade, Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings, said on Tuesday.

According to him, GST has not only expanded the country’s taxpayer base but also made doing business considerably easier compared to earlier times.

Sharma said, "Over the last ten years, India has witnessed several important structural changes, and GST stands out among them."

The Indian stock markets ended on a flat note with a slight positive bias on Tuesday, as investors remained cautious ahead of the US reciprocal tariff deadline on July 8.

The focus remained on trade negotiations between India and the United States, amid the possibility of a trade deal likely this week.

After touching an intra-day high of 83,874.29, the Sensex finally closed at 83,697.29, gaining 90.83 points or 0.11 per cent.

Similarly, the Nifty added 24.75 points or 0.1 per cent to settle at 25,541.8.

Among the 30-share index, the top gainer was BEL, which closed the intraday trading session 2.51 per cent higher.

The remittances sent back home by Indians working abroad have registered a 14 per cent rise in the financial year 2024-25 to a record $135.46 billion, according to data compiled by the RBI.

The RBI said the inflows, classified under “private transfers”, accounted for more than 10 per cent of India’s gross current account flows of $1 trillion in FY25.

Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to $33.9 billion in the January-March quarter of 2024-25 from $31.3 billion in the same quarter of the previous year, RBI data shows.

Indians working abroad sent home a record $129.4 billion in 2024, with the highest ever inflows of $36 billion in the October-December quarter.

Delhi's decision to enforce a strict fuel ban on 'end-of-life' (EoL) vehicles -- petrol vehicles older than 15 years and diesel vehicles older than 10 years -- has drawn mixed reactions from residents of the national Capital.

While many have welcomed the move as a necessary step to curb pollution, others have questioned its logic and uniformity.

Authorities have already seized two motorcycles flagged under the new policy and sent them for scrapping as part of the enforcement process.

The crackdown follows alarming data from the Centre for Science and Environment (CSE), which, in a November 2024 analysis, revealed that vehicular emissions contribute to 51 per cent of Delhi's local pollution -- the highest share among all sources.

The State Bank of India (SBI), the nation’s largest financial institution, is celebrating its 70th year of operations with a balance sheet that has soared to Rs 66 lakh crore and the number of its customers surging past a staggering 52 crore.

Since its inception in 1955, SBI has evolved from supporting India’s early development goals into a driving force of its digital and green economy.

In order to play a lead role in India’s renewable energy transition, SBI’s Solar Rooftop Programme aims to solarise four million homes by FY2027, advancing India’s Net Zero 2070 goals, according to an SBI statement.