Key Market Insights - Altifi Weekly Bulletin | 26 June 2026

Economy and regulatory updates

• India’s core infrastructure output growth slowed to 0.5% in May 2026 from an upwardly revised 1.8% (from 1.7%) in April, indicating a moderation in core sector activity.
• India HSBC Flash Manufacturing Purchasing Managers' Index (PMI) eased to 54.5 in June from 55.0 in May, while Services PMI moderated to 57.3 from 58.9 and Composite PMI to 57.4 from 59.3.
• S&P estimates India’s gross domestic product (GDP) growth could slow to 6.6% in fiscal 2027 due to energy stress and a weak monsoon, indicating potential macro headwinds.
• The World Bank has approved a $1.5 billion loan for India, aimed at boosting job creation and supporting economic reforms.
• The Reserve Bank of India (RBI) has enhanced credit access for micro, small and medium enterprises (MSMEs) by allowing financiers on TReDS (Trade Receivables Discounting System) platforms to obtain guarantee cover for financed receivables.
• The central bank has mandated uniform prudential treatment for all credit facilities, including those disbursed via Unified Payments Interface (UPI), closing a regulatory loophole that previously allowed lighter treatment for UPI-linked credit.
• The RBI has proposed a framework to manage artificial intelligence (AI)/machine learning (ML)-related risks for regulated entities.
• The RBI has revised the net open position framework, simplifying forex exposure calculations and improving treasury risk management.
• The Securities and Exchange Board of India (SEBI) has introduced a set of reforms to enhance market efficiency and investor protection. This includes reviving exchange-based buybacks, easing mutual fund borrowing, expediting alternative investment fund approvals, aligning securitised debt norms with RBI rules, simplifying municipal bond fundraising and streamlining inheritance of securities.
• SEBI has approved the reintroduction of the open market window for buybacks, enhancing flexibility in capital management.

Source: MOSPI, RBI

Indian debt market update

• The interbank call money rate ended higher at 5.40% in the holiday-shortened week ended June 25, compared with 5.30% in the week ended June 19.
• The yield on the 10-year benchmark 6.48% GS 2035 paper closed lower at 6.79% on June 25, compared with 6.88% on June 19.
• The decline in yields was initially due to value buying in government securities despite tight banking system liquidity, which lifted bond prices. Later in the week, lower crude oil prices and easing geopolitical uncertainties improved sentiment by reducing imported inflation risks. Expectations that the RBI would refrain from further policy tightening also kept yield under pressure.
• Although inflationary and currency-related concerns limited gains at times, the sharp fall in crude oil prices during the latter part of the week further strengthened bond prices.

Source: CRISIL Fixed Income Database, RBI^ Data as of 19 th Jun 2026 vs 12th Jun 2026 vs 15th May 2026 respectively

Source: CRISIL Fixed Income Database

Indian equity market updates

• Indian equities ended the week marginally higher, driven by improving global risk sentiment and easing crude oil prices. Positive developments on the geopolitical front and expectations of steady interest rates also aided sentiment. However, gains were capped due to weak flash PMI data for June and concerns surrounding monsoon. The BSE Sensex and Nifty rose 0.39% and 0.18%, respectively.
• Sectoral performance was mixed during the week. Realty, auto and healthcare stocks gained on the back of improving demand prospects and a supportive interest-rate environment. The BSE Realty, BSE Auto, and BSE Healthcare indices rose 1.73%, 1.70% and 1.50%, respectively.
• The metal sector declined the most due to profit-booking, weak global demand cues and continued volatility in commodity prices. The BSE Metal index fell 4.72% on a weekly basis.
• In the near term, markets are likely to remain range-bound, tracking global cues, crude oil price movements and geopolitical developments.
• Weekly flows: Domestic Institutional Investors (DIIs) recorded net inflows of Rs 5,747.70 crore, while Foreign Institutional Investors (FIIs) saw net outflows of Rs -1,843.40 crore.
• MTD trend: DIIs reported net inflows of Rs 76,156.3 crore, whereas FIIs registered net outflows of Rs 45,121.78 crore.
• YTD positioning: DIIs remained net buyers at Rs 4,52,940.91 crore, while FIIs stand as net sellers at Rs 3,34,381.27 crore.

Source: BSE, NSE

Source: SEBI, NSE, NSDL

Global Equity market summary

• US equities ended mixed with technology and growth stocks weakening on valuation concerns. Shares of companies in the healthcare and industrial sectors helped support the broader sentiment, while lower oil prices aided airlines and travel stocks.
• Britain's FTSE index ended the week higher, owing to strength in banking stocks, as well as renewed interest in property and travel stocks. Corporate activity and selective buying lifted domestic sentiment.
• Asian equities ended lower. Japan's Nikkei ended lower this week, as profit-taking and stock-specific weakness offset periodic strength in AI and semiconductor shares. Early gains from upbeat earnings faded as investors weighed rising funding costs for AI capital spending and potential rate hikes by the US Federal Reserve, keeping sentiment cautious and risk appetite selective.
• Hong Kong's Hang Seng Index ended lower during the week as persistent selling in technology stocks and concerns over China’s economic outlook weighed on sentiment. Brief short-covering provided limited relief, but renewed pressure on major technology company, structural imbalances and weak regional momentum kept investors defensive.
• China’s Shanghai Composite Index ended lower, weighed down by rising US rate hike expectations, regional weakness and geopolitical uncertainty. However, technology stocks swung sharply, briefly lifted by AI and chip optimism, after strong results by semiconductor companies, before renewed selling hurt sentiment.

Source: Websites of respective stock exchanges;

Global Yield

• US 10-year Treasury yields declined marginally during the week as investors shifted towards safe-haven government bonds amid heightened market volatility and reassessed the outlook for the Fed’s monetary policy.
• Early in the week, yields rose on expectations that the Fed would keep interest rates elevated for longer after policymakers reiterated concerns over persistent inflation and signalled the possibility of further rate hikes.
• However, sentiment reversed later in the week as softer-than-expected Personal Consumption Expenditures Price Index data for May indicated that price pressures may be easing. Additionally, a sharp decline in crude oil prices lowered inflation expectations, further putting pressure on yields.
• The 10-year benchmark US Treasury yield declined to 4.38% on June 26 from 4.46% on June 18.

Source: Financial Websites,

Commodities and Currency

• Crude oil prices fell during the week on the NYMEX to $69.23 per barrel in the week ended 26, June 2026 compared with $76.60 per barrel in the week ended 19, June 2026, as progress in West Asia peace talks reduced supply risks and steady crude flows through the Strait of Hormuz helped calm market concerns.
• Gold prices declined to Rs 1,39,873 per 10 gram on June 25 from Rs 1,44,970 per 10 gram on June 19, due to a strong dollar index.
• Silver prices edged lower to Rs 2,16,541 per kg on June 25 from Rs 2,31,973 per kg on June 19, tracking the decline in gold prices and remaining under pressure amid relatively weak industrial demand.
• The rupee ended the week marginally lower at Rs 94.48 against the US dollar, due to a stronger dollar and renewed US rate-hike expectations. However, losses were limited by the central bank’s intervention, lower crude oil prices and intermittent foreign fund inflows.

Source: Respective commodity exchanges, ibjarates.com, *Data as of Jun 25

Source: RBI Reference Rate

Global Economic

• The US economy expanded at an annualised rate of 2.1% in the first quarter of 2026, accelerating from 0.5% in the previous quarter
• US PCE price index increased 4.1% year over year in May 2026, following a 3.8% increase in the previous month.
• Eurozone flash consumer confidence stood at -17.7 in June 2026, compared with -19.0 in May 2026.
• UK S&P Global Flash Manufacturing PMI eased to 53.1 in June 2026, compared with 53.9 in May 2026 while the S&P Global Flash Services PMI fell to 48.7 from 49.3 and the S&P Global Flash Composite PMI eased to 49.4 from 49.7 in May.
• The People’s Bank of China kept its key lending rates unchanged at record lows for the 13th straight month in June 2026, holding the one- year LPR at 3.0% and the five-year LPR at 3.5%, amid caution over Middle East tensions and slowing economic momentum.
• Japan S&P Global Flash Manufacturing PMI increased to 54.9 in June 2026 compared to 54.5 in May 2026 while the S&P Global Flash Services PMI rose to 51.8 from 50.0 and the S&P Global Flash Composite PMI rose to 52.5 from 51.1.

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