Issue: 1269
· SBI Funds Management raises
Rs 2,663 crore via anchor book, Rs 9,813-crore IPO to open on July 14.
· Indian kharif sowing deficit
narrows, as 48% of normal area complete; paddy acreage dips 9%.
· ATM cash-loading staff call
strike in some states demanding wage revision.
· India's trade deficit widens
to five-month high of $30.43 billion in June.
· Retail inflation breaches RBI
target hitting 4.38% in June.
· Nifty Midcap 50, Nifty
Smallcap 50 indices hit lifetime highs.
Half of Indian states
record inflation above RBI target as Telangana tops the chart: Half of India's states and
Union Territories recorded retail inflation above the Reserve Bank of India's 4
percent target in June, highlighting wide regional disparities even as headline
inflation accelerated to a six-month high. Consumer price inflation rose
to 4.38 percent in June from 3.93 percent in May, driven by food prices,
transport costs and precious metals. On a sequential basis, consumer prices
increased 1.03 percent, the sharpest monthly rise since February last year,
indicating broad-based price pressures. Telangana reported the highest
inflation at 6.36 percent, followed by Andhra Pradesh and Puducherry at 5.39
percent each. Tamil Nadu (5.24 percent), Odisha (5.15 percent), Madhya Pradesh
(5.09 percent) and Andaman and Nicobar Islands (5.08 percent) also recorded
inflation above 5 percent.
(Moneycontrol)
India's trade deficit
widens to $30.43 bn in June on higher crude, fertiliser import bills: India's merchandise trade
deficit widened to $30.43 billion in June 2026 from $28.21 billion in May, as
imports rose at a faster pace than exports. Merchandise imports stood at
$70.84 billion in June, compared with $73.41 billion in May, while goods
exports fell to $40.41 billion from $45.20 billion. However, on a year-on-year
basis, goods exports rose 15.5 percent, while imports surged nearly 31 percent.
In June 2025, the trade deficit in goods was sharply lower too at $19.1
billion. A higher petroleum and
fertiliser import bill contributed to the widening of India's merchandise trade
deficit in June, with crude and petroleum product imports rising 40.01 percent
and fertiliser imports jumping 201.3 percent YoY.
(Moneycontrol)
CPI climbs to 4.4% in June, but experts predict August policy
status quo: Driven
by a surge in precious metals and ticking food prices, retail inflation based
on Consumer Price Index (CPI) rose to 4.4 per cent in June as against 3.9 per
cent of May, government reported on Monday. This is the first time since
January 2025 when headline numbers have crossed 4 per cent mark. The June print
stands as the highest reading under the new 2024-base CPI series, which was
introduced in January this year. June numbers underline three key developments
– firstly, the full impact of crude prices pass-through after petrol and diesel
prices were hiked from mid-May; secondly, continued upward trajectory of food
prices due to rain shortfall; and thirdly, households mixed discretionary
spending.
(Business Line)
HDFC Bank saw 80% rise in
whistleblower complaints in FY26: India’s largest private sector
lender HDFC Bank saw an 80 percent rise in whistleblower complaints in FY26, a
year that also saw the resignation of chairman Atanu Chakraborty, data
compiled by Moneycontrol shows. In FY26, the lender saw 177
complaints compared to 97 complaints in FY25. Disciplinary actions initiated
against employees based on the whistleblower complaints also saw an 80
percent rise, data shows. In FY26, the lender initiated action against 77 of
its employees compared to 41 in FY25.
(Moneycontrol)
Banks set for Q1 credit
boost, but margin pressure may spoil the party: India’s earnings season is
well underway, and this week will see several top-tier private lenders,
including HDFC Bank, ICICI Bank, Axis Bank and Kotak, along with a few
mid-sized peers, announce their quarterly results. Even as the shadow of the
West Asia conflict looms over corporate India, banks are expected to report
strong revenue growth in the April-June quarter, aided by robust credit growth
that continues to outpace deposit growth. However, net interest margins (NIMs)
may remain flat or turn negative as elevated funding costs weigh, analysts
said. Deposit growth continues to
trail loan growth, resulting in greater reliance on wholesale deposits. With
competition for deposits still intense, banks continue to face challenges in
mobilising low-cost deposits.
(Business Today)
FM asks banks to step up
NRI outreach as FCNR mobilisation gathers pace: Finance Minister Nirmala
Sitharaman on Monday urged public sector banks (PSBs) to step up outreach to NRIs
to sustain the momentum in foreign currency inflows, even as lenders said
fundraising through External Commercial Borrowings (ECBs) is expected to gather
pace in the October-December quarter. Sitharaman chaired a meeting
of Managing Directors and Chief Executive Officers of PSBs and public financial
institutions (PFIs) to review progress under the Foreign Currency Non-Resident
(Bank) [FCNR(B)] deposit, ECB and Overseas Foreign Currency Borrowing (OFCB)
swap schemes. While the government has not announced an official mobilisation
target, the measures are expected to attract up to $50 billion.
(Business Line)
FCNR inflows may reduce
banks' reliance on CD market in Q2 FY27: Report: Foreign currency deposits may
reduce bank reliance on certificate of deposit issuances. Strong credit growth
will continue to support certificate of deposit issuances in the near term.
However, FCNR (B) deposit inflows will determine certificate of deposit volumes
in the second quarter. Commercial paper issuances are expected to remain strong
for NBFCs and corporates. Elevated refinancing needs will sustain primary
market activity for commercial papers.
(Economic Times)
Centre holds back-to-back
top-level meetings on IDBI Bank sale, signals push to close deal: The government held a series
of high-level meetings on July 13 to review the stalled sale of IDBI Bank, in
what appears to be a concerted push to move forward with the strategic sale of
the bank, government sources said. Two separate meetings of the
Core Group of Secretaries on Disinvestment (CGD) took place through the day on
matters related to the stake sale, a government source told Moneycontrol. "Two
meetings of the Core Group of Secretaries on Disinvestment (CGD) met on July 13
to discuss matters related to the government's IDBI Bank disinvestment,"
the source said.
(Moneycontrol)
Oxford Vaccine Group
launches world’s first Phase I Bundibugyo ebolavirus vaccine trial: India’s Serum Institute will provide doses for the
world’s first Phase I clinical trial for a vaccine against the Bundibugyo
ebolavirus (BDBV) – being undertaken by the Oxford University’s Oxford Vaccine
Group. The BDBV strain is responsible for the ongoing ebola outbreak in the
Democratic Republic of the Congo (DRC), and Uganda. Over 600 deaths from ebola
have been reported in DRC, according to latest reports. The trial will be
conducted in Oxford and will assess the safety and immune response of the
ChAdOx1 BDBV vaccine in 50 healthy adults between 18–55 years, they said in a
joint statement.
(Business Line)
Merchant banker
registrations at highest level since FY2000, shows data: Registered merchant banker numbers are rising
amid record activity in the primary or initial public offering (IPO) market in
recent years. There are now a total of 244 merchant bankers registered with the
Securities and Exchange Board of India (Sebi). This is the highest since
1999-2000 (FY2000). There were four more additions in the first two months of
the ongoing year, according to a Business Standard analysis of collated
regulatory data.
(Business Standard)
Strong funding
demand lifts bank, commercial paper borrowings in Q1: Companies, including NBFCs, tapped both
banks and the commercial paper (CP) market in the first quarter of FY27,
reflecting sustained demand for funding across the economy. CP issuances
totalled Rs.5.37 trillion during the April-June 2026 period - the highest in 18
quarters, while incremental bank credit more than doubled year-on-year to Rs.5.6
trillion. In June alone, CP issuances climbed to a 55-month high of Rs.2.55
trillion, largely driven by refinancing of maturing papers. The parallel
strength in bank lending and CP issuances, according to market experts,
suggests that companies are using multiple funding channels to meet expanding
credit requirements rather than substituting one source for another. This, they
said, points to resilient economic activity.
(Business Standard)
SC upholds SEBI action
against Kotak AMC over Essel debt in FMPs, says regulatory violations cannot be
justified by investor gains: The Supreme Court upheld
penalties imposed by SEBI on Kotak Mahindra Asset Management Company (AMC),
Kotak Mahindra Trustee Company Ltd. and several senior executives over
violations of mutual fund regulations in relation to six fixed maturity plans
(FMPs) that had invested in Essel Group debt securities. The
case was concerning Kotak Mutual Fund's investment of Rs 266 crore in zero-coupon
non-convertible debentures issued by Konti Infrapower & Multiventures Pvt.
Ltd and Edison Utility Works Pvt Ltd, both part of the Essel Group. The
investments were secured by pledged shares of Zee Entertainment Enterprises
Ltd. After the value of the pledged shares declined in early 2019, Kotak AMC
decided to restructure the redemption of the debentures instead of enforcing
the security. Consequently, when the six close-ended FMP schemes matured
between April and May 2019, a portion of the redemption proceeds due to
investors was withheld.
(Moneycontrol)
Identify recurring
complaints:?RBI DG Swaminathan to internal ombudsmen: RBI Deputy Governor Swaminathan J on Monday
urged internal ombudsmen (IOs) of regulated entities to identify recurring
issues, undertake root-cause analysis and implement remedial measures during
the annual conference of Internal Ombudsmen. At the conference, Swaminathan J
asked IOs to deliver "meaningful, fair and effective" resolution of
customer complaints while identifying recurring issues, undertaking root-cause
analysis and helping implement remedial measures. He also said that "an
effective IO mechanism should reduce external escalation" and urged boards
and senior management to empower the IO mechanism and use its insights to
strengthen customer service and grievance redress.
(Business Standard)
Sebi tightens staff conduct
norms, sharpens conflict-of-interest rules: The Securities and Exchange Board of India
(Sebi) has notified a slew of changes to its employee service regulations,
sharpening conflict-of-interest norms, tightening investment curbs, and widening
disclosure requirements. Under the Sebi (Employees’ Service) (Amendment) Regulations,
2026, the definition of ‘family’ and ‘dependent’ has been expanded to include
adopted and stepchildren, as well as individuals substantially dependent on
employees. This broadens the scope of compliance obligations, especially in
areas such as investments and disclosures. In another major change, Sebi has
imposed a two-year cooling-off period during which former employees cannot
represent clients before the regulator in proceedings or settlements.
Additionally, employees must disclose any job negotiations within a month of
such engagement.
(Business Standard)
TRIFFIN DILEMMA
§ The
Triffin dilemma highlights the conflict of interest between domestic policy and
international currency responsibilities.
§ A
reserve currency can lead to a trade deficit by elevating the exchange rate and
hurting exports.
§ Issuing
a reserve currency can pressure a country to prioritize global stability over
its own economic needs.
§ If
another currency replaces the dollar, U.S. borrowing costs could rise,
impacting debt repayment.
§ Solutions,
like a new international monetary system, aim to alleviate the burden of
maintaining reserve currency status.
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 : 95.8336
INR
/ 1 GBP : 128.2953
INR
/ 1 EUR : 109.3030
INR
/100 JPY: 59.0700
EQUITY INDEX
Sensex:
77616.40 (+47.01)
NIFTY:
24211.00 (+4.10)
Bnk NIFTY: 58131.45 (+85.55)
Bastille Day (French National Day): July 14 is
globally celebrated as Bastille Day (French National Day), which commemorates
the storming of the Bastille in 1789 and the dawn of the French Revolution.
Historical events: July 14 in Indian
history is marked by two monumental milestones: the adoption of the historic
"Quit India" resolution in 1942 and the successful launch of the
Chandrayaan-3 lunar mission in 2023.
****Have a nice
Day****
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