Economy and regulatory updates
- The World Bank has projected India’s gross domestic product (GDP) growth at 6.6% in fiscal 2027, down from an estimated 7.7% in fiscal 2026. The moderation reflects a slowdown in private demand growth as higher crude oil, natural gas and fertiliser prices feed into broader input costs.
- India’s retail inflation rose to 3.93% in May 2026 compared to 3.48% in April 2026, driven by higher food and fuel prices, though remaining within RBI’s target range.
- The Union Cabinet cleared the Rs 2,169 crore Ahmedabad Metro Phase 2A extension to the international airport, aiming to enhance urban connectivity and support metro rail infrastructure growth.
- The Centre has exempted petrol blended with higher proportions of ethanol from central excise duty.
- The Centre announced an interim allocation of Rs 95,692 crore under the newly introduced Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) scheme for a seamless transition
- The Reserve Bank of India (RBI) expanded the universe of fully accessible route securities by including all new issuances of 15-, 30- and 40-year government securities, and removed limits on short-term investment, concentration and individual securities under the general route.
- The RBI opened a special window to enhance returns on non-resident Indian dollar deposits, making foreign currency non-resident deposits more attractive and supporting foreign currency inflows into the country.
- The Securities and Exchange Board of India (SEBI) proposed consolidated disclosure norms for executive pay at asset management companies, enhancing transparency and governance in the mutual fund industry.
- SEBI proposed a new mechanism to harmonise price bands and pre-open auction prices for stocks listed on multiple exchanges, aiming to address price divergences that arise when a stock remains untraded on one exchange but continues to trade on another.
Source: MOSPI, RBI
Indian debt market update
- The interbank call money rate ended lower at 5.20% in the week ended June 12 compared with 5.35% in the week ended June 5.
- The yield on the 10-year benchmark 6.48% GS 2035 paper closed lower at 6.89% on June 12 compared with 6.98% on June 5.
- Yield declined sharply earlier in the week as the RBI unveiled a series of measures to attract foreign investment.
- Later in the week, the yield declined further following a drop in global crude oil prices on revived hopes of de-escalation in the conflict in West Asia.
- Next week, debt investors will focus on India’s Wholesale Price Index-based inflation data for May, alongside crude oil prices and global bond yield trends, for signals on inflationary pressures and the domestic bond market outlook.
Source: CRISIL Fixed Income Database, RBI ^ Data as of 5th Jun 2026 vs 29th May 2026 vs 1st May 2026 respectively
Source: CRISIL Fixed Income Database
Indian equity market updates
- Indian equities ended higher on a weekly basis, supported by Friday’s sharp gains owing to easing geopolitical uncertainties, lower crude oil prices and improved global risk sentiment. However, there were losses due to persistent foreign fund outflows and profit booking in information technology (IT) stocks. The BSE Sensex and Nifty 50 rose 1.73% and 1.10%, respectively.
- Most of the sectors ended higher this week. IT, metal and power stocks declined the most, dragged down by profit booking and artificial intelligence-led disruptions. BSE IT, BSE Metal and BSE Power fell 3.73%, 2.80% and 2.64%, respectively.
- Bankex, fast moving consumer goods (FMCG) and healthcare stocks gained during the week owing to supportive global cues. BSE Bankex, BSE FMCG and BSE Healthcare gained 4.08%, 1.19% and 1.02%, respectively.
- Meanwhile, Oil and gas stocks will remain in focus amid geopolitical uncertainties and volatile crude prices, while IT will be guided by artificial intelligence-led trends and key US macro data, while financials are likely to track global rate expectations and foreign fund flows.
- Weekly flows: Domestic Institutional Investors (DIIs) recorded net inflows of Rs 33,148.04 crore, while Foreign Institutional Investors (FIIs) saw net outflows of Rs 24,092.20 crore.
- MTD trend: DIIs reported net inflows of Rs 57,947.52 crore, whereas FIIs registered net outflows of Rs 46,430.42 crore.
- YTD positioning: DIIs remained net buyers at Rs 4,34,732.13 crore, while FIIs stand as net sellers at Rs 3,35,689.91 crore.
Source: BSE, NSE
Source: SEBI, NSE, NSDL
Global Equity market summary
- US stocks ended higher this week supported by optimism over a potential US–Iran peace deal.
- Britain’s FTSE 100 ended higher this week as optimism over a potential US–Iran peace deal boosted risk sentiment, while lower crude oil prices eased inflation concerns.
- Meanwhile, UK’s GDP grew 1.2% year-on-year in April 2026, unchanged from the 1.2% growth recorded in March 2026.
- Japan's Nikkei index ended lower, weighed down by a decline in exporter stocks amid a stronger yen. However, losses were limited after de-escalation in the conflict in West Asia, which offset a sell-off in chip stocks.
- China’s Shanghai Composite closed the week higher, boosted by stock-specific gains and optimism over the developments in West Asia.
- Hong Kong’s Hang Seng Index ended lower during the week, weighed down by a decline in technology stocks. However, losses were tempered after the developments in West Asia.
Source: Websites of respective stock exchanges;
Global Yield
- US 10-year Treasury yields declined during the week as easing concerns over energy-driven inflation reduced upward pressure on long-term interest rates
- Geopolitical developments in West Asia eased fears of significant disruption to global oil supplies, helping stabilise crude oil prices. This reduced the inflation risk premium embedded in long-term treasury yields.
- The benchmark US 10-year Treasury yield declined to 4.48% on June 12 from 4.55% on June 5.
Source: Financial Websites
Commodities and Currency
- Crude oil prices fell during the week on the NYMEX to $84.88 per barrel in the week ended 12, June 2026 compared with $90.54 per barrel in the week ended 5, June 2026, as easing fears of further escalation in the US–Iran conflict reduced concerns over potential supply disruptions.
- Gold prices ended lower at Rs 1,47,800 per 10 grams in the week ended June 12 compared with Rs 1,54,238 per 10 grams in week ended June 5, weighed down by a stronger dollar index that dampened demand.
- Silver prices edged down to Rs 2,42,582 per kg in the week ended June 12 compared with Rs 2,56,908 per kg in the week ended June 5, tracking gold’s decline amid a stronger dollar and weaker industrial demand.
- The rupee ended the week slightly stronger at Rs 95.38 against the US dollar, supported by RBI intervention measures and easing crude oil prices amid optimism over a potential de-escalation of the West Asia conflict.
Source: Respective commodity exchanges, ibjarates.com
Source: RBI Reference Rate
Global Economic
- US annual inflation rose to 4.2% in May 2026, up from 3.8% in April, while core inflation increased to 2.9% from 2.8%.
- The Eurozone economy expanded by 0.3% in Q1 2026, slowing significantly from 1.2% growth in Q4 2025.
- The European Central Bank raised its key interest rates by 25 basis points in June 2026, bringing the main refinancing rate to 2.40%, the deposit facility rate to 2.25%, and the marginal lending facility rate to 2.65%, to reinforce its commitment to stabilizing inflation at its 2% medium-term target.
- China’s annual inflation remained steady at 1.2% in May 2026, unchanged from April.
- The Japanese economy expanded at an annualized rate of 1.8% in Q1 2026, compared to a downwardly revised 0.7% in Q4 2025.
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