Issue: 1347
· Reliance Consumer launches Rs.20
Joyland flavoured milk in Tamil Nadu, plans India rollout.
· EPFO steps up drive for
retrospective regularisation of exempt status of PF trusts.
· Citi signs $328 million
financing deal with IndiGo for eight Airbus aircraft.
· Prime Minister Shri Narendra
Modi addresses the Bloomberg New Economy Forum.
· Former financial services
secretary Nagaraju Maddirala appointed IL&FS CMD for two years.
· ICICI Life Insurance's profit
up 25% at Rs.374 cr.
RBI determined to do what
is necessary to ensure orderly rupee movement: RBI Governor Sanjay Malhotra: Reserve Bank of India Governor Sanjay Malhotra told
Moneycontrol that the central bank would consider further measures to curb
speculative trading in the foreign exchange market if required. “The RBI is determined to
do whatever is necessary to ensure orderly movement in the foreign exchange
market,” Malhotra said speaking exclusively to Moneycontrol, adding that the
recent measures should not be interpreted as restrictions on capital flows. He
said the measures aimed to ensure forex markets serve genuine hedging needs
rather than speculative bets. The central bank had seen around one-third of
forex derivative trades being cancelled on the same day.
(Moneycontrol)
Sitharaman’s LTCG, STT
remarks lift market sentiment; rupee gains for third straight session: Finance Minister Nirmala
Sitharaman’s expressed “keenness” to hear debate on Long Term Capital Gains
(LTCG) Tax and Securities Transaction Tax (STT) lifted investor sentiment on
Tuesday. The FM also assured that the Reserve Bank of India (RBI) will continue
taking measures to curb rupee volatility. This statement, combined with measures
announced by the central bank on Saturday, helped the rupee strengthen for the
third straight session on Tuesday, appreciating 40 paise to close at 95.38
(provisional) against the US dollar. Although the Finance Minister
stopped short of signalling any change in the tax regime ahead of the Union
Budget, her remarks on LTCG and STT boosted market sentiment, with both the
Sensex and Nifty closing up around 1.6 per cent.
(Business Line)
IMF raises India’s FY27
growth forecast to 7% on strong domestic demand: The International Monetary
Fund (IMF) has raised India’s growth forecast by 60 basis points to 7 per cent
for the current fiscal year, 2026-27 (FY27). Earlier this month, the
Reserve Bank of India raised its real GDP growth projection for FY27 to 7.1 per
cent from 6.7 per cent. At the same time, the World Bank on Tuesday raised
India’s growth forecast for the current fiscal year by 50 basis points to 7.1
per cent. The Paris-based Organisation
for Economic Cooperation and Development (OECD) raised its GDP growth forecast
by 80 basis points to 7.1 per cent for FY27.
(Business Line)
Amazon Pay bets on credit,
turns to small towns: More than two-thirds of Amazon
Pay’s transactions across UPI, wallet and credit now happen outside the Amazon
ecosystem, and over 75% of its users come from Tier 2 and Tier 3 cities, CEO
Vikas Bansal said. The company now wants to recasts itself as a broad financial
platform and place its next bet on credit with a focus on small towns, he
added. The shift is not recent, he said, but the perception that Amazon Pay is
mainly a way to check out on Amazon has stuck, and the company now wants to
educate consumers otherwise. Amazon Pay is live with more than 10,000 online
and offline merchants. “We’re playing more in the large merchant space today.
We haven’t yet focused on going to smaller merchants,” he added.
(Financial Express)
New-to-credit borrower
share in 2W loans falls sharply: Report: The share of new-to-credit
borrowers in two-wheeler (2W) loan originations has sharply declined to 39% in
the first half of 2026, from around 60% in 2019, as more consumers enter the
formal credit system through smaller-ticket loans before seeking vehicle
financing, according to a TransUnion CIBIL report. The report shows that
borrowers with more than two years of credit history accounted for 43% of
two-wheeler loan originations, an increase of six percentage points from 2019.
Another 18% had less than two years of credit history.
(Financial Express)
Jyotiraditya Scindia
outlines banking expansion plans for Northeast India at Bankers' Conclave 2.0
in Agartala: Jyotiraditya
M. Scindia discussed significant banking developments at the North East
Bankers’ Conclave 2.0 in Agartala. He outlined future targets including opening
new bank branches and increasing ATM installations in unbanked areas.
Collaborative efforts between banks and government were emphasized to enhance
development in the Northeast region. The Chief Minister of Mizoram, Lalduhoma,
highlighted the importance of banks in creating economic opportunities for
citizens.
(Economic Times)
IHC, First Abu Dhabi eye
stake in Bandhan Bank promoter: IHC, the investment company of
Abu Dhabi’s national security adviser and deputy ruler Sheikh Tahnoon bin Zayed
al-Nahyan, is among those in early-stage discussions to buy into the promoter
of Bandhan Bank, Bandhan Financial Services (BFSL). Early investors GIC & IFC
jointly hold 30% in Bandhan Financial Services (BFSL), keen to exit. PE funds
tapped too to gauge strategic interest. BFSL, led by Bandhan founder Chandra
Shekhar Ghosh, has been working with advisers Jefferies to find strategic
investors for 25-32%.
(Economic Times)
September agricultural
insurance corp premiums drop 52%: India’s general insurance industry growth slowed in
September. The reason was weak crop-related premium collection by Agricultural
Insurance Company (AIC), according to JM Financial, and not because overall
general insurance growth has slowed.
Recently, IRDAI has proposed capping commission paid across a swath of
insurance products as ?well as curbs on overall expense limits for insurers to
reduce mis-selling and lower policy costs. The general insurance industry recorded a 6%
year-on-year (YoY) growth in premiums to Rs 33,000 crore in September, slowing
from 10% in August.
(Financial Express)
India Post and IndiGo take
postcards to the skies with Digital Detox Campaign: In an effort to rekindle the joy of
handwritten communication in an increasingly digital world, the Department of
Posts, Ministry of Communications in collaboration with IndiGo, organised a
unique Digital Detox Campaign on 12th October, celebrated as Philately Day
during the ongoing National Postal Week celebrations (9th – 15th October). The
initiative encouraged travelers to take a break from their digital devices, put
their thoughts on paper and reconnect with their loved ones through letter
writing. As part of the campaign, passengers travelling on
selected IndiGo flights were presented with specially designed Digital Detox
kits containing postcards during their journey.
(PiB)
Record FPI outflows top
Rs.3 trillion in CY26, nearly double 2025 tally: Foreign portfolio investors (FPIs) have pulled
a record Rs.3.08 trillion ($32.73 billion) out of Indian equities in just nine
months of calendar year 2026 (CY26) –
nearly double the Rs.1.66 trillion withdrawn in CY25. In CY24, their net
investment totaled Rs.427 crore, data shows. According to National Securities Depository Ltd
(NSDL) data, foreign investors have been net sellers in the secondary market,
withdrawing Rs.3.64 trillion ($38.69 billion) through October 12. The primary
market, however, attracted net inflows of Rs.56,485 crore ($5.97 billion) from
them during the period, reflecting continued participation in new share
issuances even as they reduced exposure to listed stocks.
(Business Standard)
Centre examining proposals
to review LTCG tax on equities, says senior government official: The central government has received proposals
seeking a review of the long-term capital gains (LTCG) tax on equities and is
examining them, a senior government official said on October 13. The remarks
came on the same day Finance Minister Nirmala Sitharaman said the government
was open to hearing stakeholders’ views on the issue. Speaking at the Bloomberg
New Economy Forum in New Delhi, Sitharaman said investors in India and abroad
had raised questions about LTCG taxation, the securities transaction tax (STT)
and the treatment of different asset classes. “We are very close to the budget and the
preparation for the budget has started, and it may not be the best time for me
to say what I will or what I will not consider,” the Finance Minister said,
indicating that it was too early to comment on specific tax changes.
(Moneycontrol)
SEBI proposes tightening of
proceeds from all issues, freezing promoters’ demat accounts for
non-cooperation:
Market
regulator Securities and Exchange Board of India (SEBI) has proposed stricter
action against listed companies that fail to cooperate with monitoring agencies
tracking the utilisation of funds raised through public issues, including
freezing promoters’ demat accounts if the non-compliance persists. Under the proposals
outlined in a consultation paper, stock exchanges would levy a fine of Rs
50,000 for each instance of non-cooperation reported by a monitoring agency
during a reporting quarter or half-year, as applicable. If a company fails to
rectify the non-compliance or pay the fine despite subsequent notices,
exchanges would inform depositories to initiate the freezing of promoters’
demat accounts under the prescribed framework.
(Moneycontrol)
UPI MDR deferred until
after Diwali, new date to be notified: NPCI: NPCI has deferred the levy of merchant
discount rate (MDR) on select Unified
Payments Interface (UPI) transactions until after Diwali, just two days before
it was due to take effect, and said the new date would be notified separately. The deferment offers
merchants a breather during the ongoing festival season. The levy was
originally scheduled to take effect on October 15. “UPI and Services Steering
Committee today decided that, keeping in mind the festive season, Merchant
Discount Rate (MDR) on select Person-to-Merchant (P2M) UPI transactions, shall
be implemented immediately post Diwali at a date to be notified separately,”
NPCI said in a statement.
(Business Standard)
WRONG-WAY RISK (WWR)
§ Wrong-Way
Risk refers to a situation where the probability of a counterparty default
increases simultaneously with the bank's exposure to that counterparty. For
example, if a bank lends to an oil company while oil prices are collapsing, the
company's creditworthiness deteriorates precisely when the bank's exposure
becomes riskier..
§ This
risk amplifies potential losses and poses significant challenges in credit risk
management, derivatives trading, and collateral valuation. Banks use stress
testing, diversification, and robust risk measurement models to mitigate
Wrong-Way Risk under Basel guidelines.
RBI KEY RATES
Repo
Rate: 5.50%
SDF:
5.25%
MSF
/Bank Rate: 5.75%
CRR:
3.00%
SLR:
18.00%
FOREX RATES (RBI REF. RATE)
INR
/ 1 USD : 95.2477
INR
/ 1 GBP : 125.9222
INR
/ 1 EUR : 106.4345
INR
/100 JPY: 60.1700
EQUITY INDEX
Sensex:
73033.78 (+1109.10)
NIFTY:
22721.95 (+358.60)
Bnk NIFTY: 55481.05 (+563.05)
****WISHING A NICE DAY****
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