Economy and regulatory updates
- India’s HSBC Manufacturing Purchasing Managers’ Index (PMI) edged up to 54.7 in April 2026 from 53.9 in March 2026. India HSBC Services PMI increased to 58.8 in 2026 vs 57.5 in March, while the HSBC Composite PMI rose to 58.2 from 57.0.
- Goods and services tax collection hit a record high of Rs 2.42 lakh crore in April, up 8.7% from March 2026.
- S&P Global Market Intelligence has downgraded India’s growth forecast for fiscal 2027 to 6.6% from 7.1%, citing increased geopolitical uncertainty that is constraining the fiscal space and capital expenditure, while long-term prospects are supported by the services sector, manufacturing diversification and artificial intelligence.
- According to official data, India's net direct tax collections increased 5.12% to ~Rs 23.40 lakh crore, as of March 31.
- According to Reserve Bank of India (RBI) Deputy Governor Poonam Gupta, India might think about lowering its inflation target and narrowing the acceptable range, if growth sustains and inflation remains stable over the next five years.
- The Indian government launched NPS Sanchay on May 6 to provide simple retirement savings options for informal workers, with a default investment structure to reduce complexity.
- The Securities and Exchange Board of India (SEBI) has proposed changes to Securitised Debt Instrument (SDI) norms, including permitting single-asset securitisation by RBI-regulated entities, winding up transactions, and easing structural restrictions to promote market growth.
- SEBI has introduced a fast-track mechanism allowing Alternative Investment Funds (AIFs), excluding large value funds for accredited investors, to launch schemes and circulate private placement memoranda (PPMs) 30 days after filing their application, to enable quicker capital deployment.
- SEBI introduced a new framework that designates indices as 'significant' if mutual funds track them with an average daily AUM exceeding Rs 20,000 crore for six consecutive months, requiring index providers offering these indices to register with Sebi to enhance transparency and accountability in index governance.
Source: MOSPI, RBI
Indian debt market update
- The interbank call money rate ended flat at 5.20% in the week ended May 8 unchanged from the previous week.
- The yield on the 10-year benchmark 6.48% 2035 paper ended at 6.98% on May 8 compared with 7.02% on April 30, amid improving domestic liquidity conditions and continued demand from market participants.
- The decline in yields was supported by expectations of prolonged accommodative liquidity measures by the RBI, following the recent liquidity infusions and easing overnight money market rates.
- Additionally, softer global crude oil prices, stable inflation expectations and a relatively soft movement in US Treasury yields contributed to the fall in domestic yields during the week.
- In the weekly debt sale held on May 8, the RBI auctioned the new government security (GS) 2036 for a total notified amount of Rs 34,000 crore.
Source: Crisil Fixed Income Database, RBI *Weighted Average Yield ^ Data as of 1st May 2026 vs 24th Apr 2026 vs 27th Mar 2026 respectively
Source: Crisil Fixed Income Database; *Weighted Average Yield
Indian equity market updates
- Indian equities ended marginally higher for the week owing to a favourable state election outcome, strong earnings for the fourth quarter of fiscal 2026 and optimism over a potential ceasefire in West Asia which helped ease crude oil prices mid-week. However, gains were partly offset by profit booking after recent rallies and foreign fund outflows. The BSE Sensex and Nifty rose 0.54% and 0.74%, respectively
- Most sectors ended higher with auto, realty and healthcare, gaining the most. The BSE Auto, BSE Realty and BSE Healthcare indices rose 4.88%, 4.61% and 4.30%, respectively.
- Weekly flows: Domestic Institutional Investors (DIIs) recorded net inflows of Rs 24,879.95 crore, while Foreign Institutional Investors (FIIs) saw net outflows of Rs 15.009.61 crore.
- MTD trend: DIIs reported net inflows of Rs 21392.85 crore, whereas FIIs registered net outflows of Rs 6,961.75 crore.
- YTD positioning: DIIs remain net buyers at Rs 3,16,012.41 crore, while FIIs stand as net sellers at Rs 2,40,727.14 crore.
Source: BSE, NSE
Source: SEBI, NSE
Global Equity market summary
- US stocks ended higher this week driven by strong corporate earnings and a robust rally in shares of artificial intelligence (AI) and technology companies, particularly chipmakers. The markets also gained due to optimism surrounding semiconductor companies.
- Britain's FTSE index declined during the week due to losses in energy and defence stocks. The market also fell due to selloffs in healthcare stocks following a regulatory setback for a cancer drug. Weakness in the financial sector from disappointing banking results and domestic election uncertainty added to the volatility, though temporary optimism over likely peace negotiations to end the conflict in West Asia provided some relief.
- Japan's Nikkei index ended higher because of optimism over strong tech earnings and hopes of a potential deal to end the conflict in West Asia. However, gains were capped by a decline in SoftBank Group shares.
- Hong Kong's Hang Seng Index ended higher because of a global rally fuelled by declining crude oil prices and growing interest in artificial intelligence. The index was also boosted by gains in tech shares and signs of China's economic resilience.
- China's Shanghai Composite closed higher fuelled by strong demand for technology shares amid persistent global AI optimism and domestic economic resilience, backed by updated services PMI data for the month of April.
Source: Websites of respective stock exchanges;
Global Yield
- US Treasury yields edged marginally lower in the week ended May 08, 2026, amid cautious investor sentiment and increased demand for safe-haven assets due to persistent geopolitical uncertainties.
- During the week, the University of Michigan’s preliminary consumer sentiment index declined to 48.2 in May from 49.8 in April, lower than market expectations of 49.5, reflecting concerns over rising fuel prices and weakening consumer confidence. The softer sentiment data reinforced expectations of a cautious approach by the US Federal Reserve, thereby supporting bond prices and weighing on yields.
- Additionally, investors remained focused on upcoming inflation and labour market data to be released in the next week for further cues on the Fed’s interest rate trajectory.
- The yield on the 10-year benchmark Treasury paper ended at 4.38% on May 8 compared with 4.39% on May 1.
Source: Financial Websites
Commodities and Currency
- Crude oil prices fell during the week on the NYMEX to $ 95.42 per barrel on the NYMEX on week on 8, May 2026 from $ 101.94 on 1, May 2026 because of optimism over a potential peace agreement for the West Asia conflict, easing concerns about disruption in supply from the region.
- Gold prices rose this week Rs 1,51,078 per 10 grams in week on 8, May 2026 from Rs 1,50,263 per 10 grams in week on 30, April 2026 supported by increased haven demand, amid global economic uncertainties.
- Silver prices declined to Rs 2,55,600 per kg on week on 8, May 2026 from Rs 2,40,331 per kg on week on 30, April 2026, mirroring the same trend in gold, gaining on industrial demand and inflation concerns.
- The rupee closed higher at Rs 94.44 on 8, May 2026 against the US dollar this week, after witnessing volatility. The initial weakness from geopolitical uncertainty reversed mid-week as crude oil prices declined on ceasefire optimism. Gains in the domestic equity market also contributed to the upside.
Source: Respective commodity exchanges, ibjarates.com
Source: Financial websites
Global Economic
- The US economy expanded at an annualized rate of 2.0% in Q1 2026, compared to 0.5% rise in the previous quarter.
- The Eurozone GDP expanded by 0.8% compared to 1.2% expansion in the last quarter.
- The European Central Bank maintained interest rates at 2.15% for the main refinancing rate and 2.0% for the deposit facility during its April meeting, adopting a cautious approach amid ongoing assessments of the Iran war's impact on inflation and growth, with officials noting increased upside risks to inflation and downside risks to growth.
- Eurozone annual inflation climbed to 3% in April 2026, compared to 2.6% in March 2026 while the annual core inflation rate edged down to 2.2% from 2.3%.
- The Bank of England's April 2026 vote was 8–1 to hold the Bank Rate at 3.75%, with one member favoring a rise to 4% and several policymakers signaling potential future increases amid global energy price uncertainties caused by the Middle East conflict.
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