Economy and regulatory updates
- India’s retail inflation rose to 3.48% in April from 3.40% in March.
- India’s wholesale inflation jumped to 8.30% in April from 3.88% in March, due to soaring fuel, power and crude oil prices.
- Crisil projected India's real gross domestic product (GDP) growth to slow to 6.6% in fiscal 2027 from 7.6% in fiscal 2026, due to rising crude oil and commodity prices, weaker global growth amid the West Asia conflict, and an expectation of below-normal monsoon.
- The Ministry of Statistics and Programme Implementation revised the release schedule for provisional GDP estimates and fourth-quarter GDP data to June 7 of each year, or the previous working day in case of a holiday, from the last working day of May.
- The government raised the customs duty on imports of gold and silver from 6% to 15% and on platinum from 6.4% to 15.4%.
- The Union Cabinet approved a Rs 37,500 crore incentive scheme to promote coal gasification projects.
- The government raised the minimum support price (MSP) for paddy by Rs 72 to Rs 2,441 per quintal for the 2026-27 kharif marketing season.
- The Reserve Bank of India (RBI) amended the guidelines for including quarterly profits in Common Equity Tier 1 (CET1) capital for capital to risk-weighted assets ratio (CRAR) computation.
- The RBI and the European Central Bank (ECB) signed a memorandum of understanding (MoU) on cooperation in the field of central banking.
- The Securities and Exchange Board of India (SEBI) proposed an overhaul of the share buyback framework.
- SEBI proposed allowing depositories to use up to 5% of their income from the Investor Protection Fund (IPF) to cover administrative and staff expenses, aligning their rules with those of stock exchanges.
- SEBI revised its rules governing the sharing and use of stock market price data for educational purposes, replacing earlier restrictions with a uniform 30-day delay requirement.
- SEBI proposed a new green-channel mechanism, GARUDA, for alternative investment funds (AIFs) to launch schemes within 10 working days of filing their placement memorandums from the current 30 days, in a bid to speed up capital deployment by them.
Source: MOSPI, RBI
Indian debt market update
- The interbank call money rate ended higher at 5.23% in the week ended May 15, compared with 5.20% in the week ended on May 8.
- The yield on the 10-year benchmark 6.48% Government Security (GS) 2035 paper closed higher at 7.06% on May 15, compared with 6.98% on May 8, as elevated oil prices and United States (US) Treasury yields compounded the weakness induced by the local currency's plunge to record lows.
- Bond prices came under pressure earlier in the week as stalled peace talks in West Asia pushed oil prices higher, raising concerns over imported inflation and fiscal stability.
- However, sentiment improved later in the week amid optimism over potential measures by the government to attract foreign inflows. Overall, movements in crude oil prices, US Treasury yields and global risk sentiment remained the key drivers for the domestic bond market.
Source: Crisil Fixed Income Database, RBI *Weighted Average Yield ^ Data as of 8th May 2026 vs 1st May 2026 vs 3rd April 2026 respectively
Source: Crisil Fixed Income Database; *Weighted Average Yield
Indian equity market updates
- Indian equity benchmarks ended lower for the week, weighed down by rising crude oil prices, a weakening rupee and persistent foreign fund outflows. Mid-week support from higher government tariffs on precious metals and expectations of measures to mitigate rupee weakness was short-lived, as profit-taking and a resurgence in oil prices ultimately dragged the markets down. The BSE Sensex and Nifty declined 2.70% and 2.20%, respectively.
- Most of the sectors ended lower, with realty, information technology (IT) and auto losing the most. BSE Realty, BSE IT and BSE Auto fell 7.82%, 5.67% and 4.23%, respectively.
- Weekly flows: Domestic Institutional Investors (DIIs) recorded net inflows of Rs 25,272.64 crore, while Foreign Institutional Investors (FIIs) saw net outflows of Rs 17,694.07 crore.
- MTD trend: DIIs reported net inflows of Rs 39,917.36 crore, whereas FIIs registered net outflows of Rs -24,655.82 crore.
- YTD positioning: DIIs remained net buyers at Rs 3,34,536.92 crore,while FIIs stand as net sellers at Rs 2,58,421.21 crore.
Source: BSE, NSE
Source: SEBI, NSE
Global Equity market summary
- US stocks ended lower this week pressured by rising geopolitical tensions after comments from the US President and Iran’s foreign minister dampened hopes of renewed peace talks. The fading prospects of a diplomatic resolution heightened risk aversion and weighed on investor sentiment. However, a few gains were witnessed by ongoing optimism about artificial intelligence (AI) and tech sector gains.
- 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 lower due to profit-booking in high-priced tech and semiconductor stocks. Inflation concerns and the West Asia conflict weighed on sentiment. However, strong corporate earnings and demand for AI and tech stocks provided some support.
- Hong Kong's Hang Seng Index ended lower owing to profit-booking and concerns over China’s slowing economy and broader global uncertainty. However, losses were partly offset by a strong technology rally, supported by AI optimism and robust export data.
- China's Shanghai Composite Index closed lower due to profit-booking. However, losses were partly cushioned by bargain buying in technology shares, stronger export sentiment and renewed optimism around AI-driven growth.
Source: Websites of respective stock exchanges;
Global Yield
- US 10-year Treasury yields rose during the week, reflecting increased investor concerns over persistent inflationary pressures and expectations of higher-for-longer interest rates.
- The rise in yields was driven by an unexpected spike in US inflation readings for April month, which reduced expectations of near-term Federal Reserve rate cuts. Additionally, rising crude oil prices amid ongoing geopolitical uncertainties in the Middle East added to inflation concerns, prompting investors to demand higher yields on long-term government bonds.
- Better-than-expected US retail sales data signalled continued resilience in consumer spending despite inflationary pressures, reinforcing the view that the US economy remains strong.
- The yield on the 10-year benchmark US treasury bond ended at 4.59% on May 15, compared with 4.38% on May 8.
Source: Financial Websites
Commodities and Currency
- Crude oil prices rose during the week on the NYMEX, reaching $105.42 per barrel on May 15, 2026, up from $101.29 on May 8, 2026 amid persistent geopolitical uncertainties and supply-side concerns
- Gold prices rose this week to Rs 1,58,210 per 10 grams in week on 15, May 2026 from Rs 1,51,078 per 10 grams in week on 8, May 2026 after the Indian government sharply increased import duty from 6% to 15%.
- Silver prices edged up to Rs 2,68,500 per kg on week on 15, May 2026 from Rs 2,55,600 per kg on week on 8, May 2026, mirroring the trend in gold prices, as the import duty hike from 6% to 15% increased domestic prices, further supported by strong industrial demand.
- The rupee closed lower at Rs 95.93 on 15, May 2026 against the US dollar this week, pressured by rising crude oil prices, persistent foreign fund outflows and a stronger US dollar. Rupee closed the week at an all time low and remained under pressure amid global uncertainties and hawkish US policy signals.
Source: Respective commodity exchanges, ibjarates.com
Source: Financial websites
Global Economic
- The US unemployment rate remained steady at 4.3% in April 2026.
- US annual inflation rate increased to 3.8% in April 2026, reaching its highest level since May 2023, compared to 3.3% in March 2026.
- US producer price inflation accelerated to 6.0% year-over-year in April 2026, up from an upwardly revised 4.3% in March 2026 while core producer price inflation accelerated to 5.2% year-over-year in April 2026, up from an upwardly revised 4.0% in March 2026.
- The UK economy grew 1.1% first quarter of 2026, compared to 1.0% in the last quarter of 2025.
- China annual inflation rate accelerated to 1.2% in April 2026 compared to 1.0% in March 2026.
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