Issue: 1160
RBI spends about $12
billion to defend rupee amid West Asia war volatility: India's central bank has
mounted an ?aggressive defence of the rupee this week, deploying an estimated
$12 ?billion to contain the fallout from an escalating West Asia ?war that has pummelled markets
and pushed the Asian currency to an all-time low, according to seven bankers. The
figure is the median of estimates bankers shared ?with Reuters, with the
projections ranging from $9 billion to more than $15 billion. The
conflict has ?widened across the Gulf,
pushing oil prices up about 16% this week, leading to $2 billion of foreign
outflows from Indian equities and spurring importers to increase hedges of
near-term payment ?obligations. The RBI’s heavy intervention comes ?against the
backdrop of India’s foreign-exchange reserves, which at over $723 billion, are
among the largest in the world.
(Business Line)
US gives India 30-day
Russian oil waiver to curb price shocks as West Asia tensions mount: The US has announced a 30-day
easing of restrictions on Indian purchases of Russian crude to avert a global
price shock amid escalating tensions in West Asia. Experts view the move as a
strategic one by the Trump administration to check spiralling energy costs with
an eye on the mid-term elections. However, they maintain that for New Delhi and
Moscow, these energy ties must remain a matter of national sovereignty, firmly
beyond American jurisdiction. “To enable oil to keep flowing
into the global market, the Treasury Department is issuing a temporary 30-day
waiver to allow Indian refiners to purchase Russian oil... it only authorises
transactions involving oil already stranded at sea,” US Treasury Secretary
Scott Bessent said on Thursday.
(Business Line)
Red alert for US economy:
Unemployment climbs to 4.4% while 92,000 jobs vanish: The US economy lost 92,000
jobs in February but the unemployment rate edged up to 4.4% from 4.3% in
January, according to new data released by the US Bureau of Labor Statistics.
The figures point to a labour market that is gradually losing momentum after
several years of strong job growth. Although the increase in the unemployment
rate is minimal, the data shows that the labour market has been weakening for
months. Slower hiring, job losses in some sectors, and a rise in the number of
people staying unemployed for longer periods have all contributed to the slight
uptick in unemployment.
(Business Line)
SBI strongest
Indian bank; HDFC Bank leads in brand value: Brand Finance: State
Bank of India (SBI) has been ranked the 16th strongest bank globally and the
only Indian name with AAA+ rating, the highest accolade for brand strength,
according to the 2026 Banking 500 journal released by brand valuation
consultancy Brand Finance on Thursday. The report also names HDFC Bank as the
most valuable Indian banking brand, although it dropped seven places to 31 from
its 2025 ranking in the global rankings. SBI’s brand value rose by 2% y-o-y to
reach $8.1 billion as the bank claimed the 56th spot (down from 49 last year)
among the most valuable global brands. HDFC Bank’s brand value saw a decline of
7% to reach $12.4 billion this year, but it climbed four places from 2025 to
reach the 28th rank for brand strength globally.
(Financial Express)
RBI caps claims for
small-value digital frauds at Rs 50,000; banks to prove customer liability: The Reserve Bank of India
(RBI) has capped the eligible claim amount for small-value fraudulent
electronic banking transactions at Rs 50,000. Under draft regulations issued by
the central bank, customers will be reimbursed 85 per cent of the net loss or Rs
25,000, whichever is lower, and the benefit can be availed once during their
lifetime. Compensation will be provided
if the loss is established as genuine under the bank’s internal policy and the
victim reports the incident both to the bank and the National Cyber Crime
Helpline (1930) within five days of the fraud.
(Economic Times)
Global banks find access to
India's $4 trillion economy comes at a price: Global banks seeking a share
of India’s nearly $4 trillion economy are facing strict regulations, limited
control and long timelines for returns as they try to expand in the country’s
financial sector. Foreign investors encounter voting caps, complex approval
processes and restrictions on management control, forcing many to adopt
unconventional deal structures. While India offers one of the
most compelling growth opportunities in the coming decades, overseas bidders in
the financial sector face tight voting caps, onerous processes and long payback
timelines as they seek to get a foothold.
(Economic Times)
Yes Bank launches exclusive
salary account for women: Yes Bank has
launched a new salary account for working women. The 'YES Essence Women's
Salary Account' offers financial protection, healthcare, and lifestyle
benefits. Features include a free locker, health cover, and cashback on a debit
card. This initiative supports women's financial and lifestyle needs. The bank
also recently detected unauthorized transactions on its forex cards.
(Economic Times)
India plans ?3 lakh crore
investment to boost shipbuilding under Maritime Vision 2030: Defence Minister Rajnath Singh on Friday said
that under the Maritime India Vision 2030 and Maritime Amrit Kaal Vision 2047,
investments worth approximately ?3 lakh crore have been planned to develop world-class
shipbuilding clusters. Reiterating self-reliance as the only solution to remain
relevant in today’s abnormality, which has become the new normal, Rajnath Singh
stated that the disturbance in West Asia following the US-Israel-Iran war will
directly impact the supply of oil and gas owing to disruptions in the global
supply chain.
(Business Line)
Hurun’s global rich list:
Mukesh Ambani retains top spot, Cyrus Poonawalla emerges as biggest wealth
creator:
The Indian
wealth landscape is no longer just about survival; it’s about high-octane
growth and global footprints. According to the recently updated and published
Hurun Global Rich List 2026, India has solidified its position as the third
biggest destination for billionaires in the world. A growing global wealth
powerhouse, India is now home to 308 billionaires. While the cumulative wealth
of the nation’s wealthiest has risen by 10% to reach INR 112.6 Lakh Crore, the
hierarchy at the very top reveals a fascinating story of legacy family
businesses, start-up resilience, massive gains, and a few notable stumbles.
(Financial Express)
Sensex slumps 1,100 pts;
Nifty logs worst week in 1-yr: Indian equity markets extended their losses on
Friday, with the benchmarks recording their worst weekly run in over a year, as
rising geopolitical tensions continued to weigh on investor sentiment. The
Nifty50 index fell as much as 1.41 per cent, or 350 points, to 24,415.7, while
the 30-stock Sensex index slumped 1.4 per cent or 1,141 points, to 78,864.6 on
Friday. The Nifty and Sensex fell over 2.8 per cent so far this week, their
worst run since the week ending February 27 last year. The volatility gauge, India VIX, has risen 45
per cent this week, the highest since April last year, taking the yearly surge
to nearly 110 per cent.
(Business Standard)
Sebi unveils 'debit freeze'
for MF folios: The Securities and Exchange Board of India
(Sebi) has introduced a voluntary “debit freeze” or lock-in facility for mutual
fund (MF) folios, allowing investors to block any redemption or transfer of
units unless the folio is explicitly unlocked.
The facility is aimed at enhancing the digital security of investors’
units, the regulator said in a circular. The move comes amid rising instances of
digital fraud and unauthorised transactions in financial accounts.
(Business Line)
PSBs, insurers seek higher
sum assured for social security schemes: Stakeholders, including public
sector banks and insurance companies, have urged the finance ministry to
increase the sum assured under key social security insurance schemes, such as
the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Pradhan Mantri
Suraksha Bima Yojana (PMSBY), amid inflationary pressure and increasing
household vulnerabilities. The meeting convened by the Department of Financial
Services (DFS) last month was also attended by the Insurance Regulatory and
Development Authority of India (Irdai) and ministries including the Ministry of
Rural Development (MoRD) as part of the government’s push to achieve the goal of
“Insurance for All by 2047”.
(Business Standard)
OPTION-ADJUSTED SPREAD (OAS)
§
The option-adjusted spread (OAS) measures the spread
between a bond's rate and the risk-free rate, while adjusting for any embedded
options like callables or mortgage-backed securities.
§
Utilizing OAS helps investors determine the value
and potential risks of investing by evaluating a bond’s yield against economic
factors and market volatility.
§ By analyzing securities
separately as a bond and an embedded option, OAS provides a more accurate
valuation than simply using yield to maturity.
RBI KEY RATES
Repo
Rate: 5.25%
SDF:
5.00%
MSF
/Bank Rate: 5.50%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 91.6829
INR
/ 1 GBP : 122.4932
INR
/ 1 EUR : 106.4139
INR
/100 JPY: 58.0800
EQUITY INDEX
Sensex: 78918.90 (-1097.00)
NIFTY: 24450.45 (-315.45)
Bnk NIFTY: 57783.25 (-1272.60)
Jan Aushadhi Diwas: March 7th is
primarily celebrated as Jan Aushadhi Diwas in India to promote awareness about
affordable generic medicines. The day marks the culmination of the Janaushadhi
Week (March 1st–7th) and highlights the benefits of the Pradhan Mantri Bhartiya
Janaushadhi Pariyojana.
Historical events: March 7th marks
significant historical milestones, including the 1876 patenting of the
telephone by Alexander Graham Bell, and Sheikh Mujibur Rahman’s historic 1971
speech leading to Bangladesh's independence. In India, it commemorates the 1930
start of Gandhi’s Salt March preparations, the 1967 first successful heart
transplant in India, and the 2006 Varanasi bombings.
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