Issue: 1224
· India’s HSBC Flash PMI data
showed continued strength in services and manufacturing activity during May
2026 despite global uncertainties.
· JSW Motors secured an Rs.8,000
crore ($826 million) funding line from India’s largest bank for its automotive
expansion plans.
· The Reserve Bank of India
reportedly resumed aggressive dollar-selling intervention to prevent further
sharp depreciation in the rupee after it neared record lows against the U.S.
dollar.
· India’s central bank is
expected to transfer a record Rs.2.9–Rs.3.2 lakh crore dividend to the
government.
· Analysts warned that India’s
fiscal deficit target may come under pressure despite the large RBI dividend due
to high oil prices and rupee weakness.
RBI board may approve Rs.2.8-3.3
trillion surplus transfer on Friday: The central board of the
Reserve Bank of India (RBI) is scheduled to meet on Friday to decide on the
surplus transfer to the government for FY26, with economists expecting the
payout to exceed last year’s record dividend of Rs.2.7 trillion. Economists
expect the dividend transfer to be in the range of Rs.2.8 trillion to Rs.3.3
trillion, supported by higher interest income and the possibility of lower
provisioning towards contingency reserves.
(Business Standard)
India's outbound FDI
commitments decline 10.8% to $5.6 billion in April: India’s outward foreign direct
investment (FDI) dropped 10.8 per cent to $5.6 billion in April 2026 from $6.33
billion in the same month last year. Sequentially, it rose from $5.08 billion
in March 2026, according to data from the Reserve Bank of India (RBI). Outbound
FDI, expressed as a financial commitment, has three components: Equity, loans,
and guarantees. Outbound equity FDI commitment surged to $3.37 billion in April
from $1.97 billion a year ago. It was also higher than $1.61 billion in March
2026. At the same time, debt (loans) dropped to $517.75 million in April 2026
from $1.12 billion in the same month of 2025.
(Business Standard)
PM Modi's foreign tour to
result in $40 billion fresh investments: MEA: Prime Minister Narendra Modi
met over 50 chief executive officers (CEOs) of large global companies during
his five-nation foreign tour from May 15 to 20, and fresh commitments by their
respective companies to invest in India, including their business expansion
plans in India, total nearly $40 billion, the Ministry of External Affairs
(MEA) said on Thursday. Of the over 50 CEOs whom the PM met during his visits
to the United Arab Emirates, the Netherlands, Sweden, Norway and Italy, a large
number already have significant investments in India and their cumulative
investment and business exposure to India stand at around $180 billion, MEA
spokesperson Randhir Jaiswal said.
(Business Standard)
Euro zone growth set to
slow in 2026 as Middle East conflict fuels inflation: The euro zone economy will
slow in 2026 after war in the Middle ?East triggered the second energy shock in
less than five years with the severity of the hit determined by how long the
conflict drags on, the European Commission said on Thursday.The surge in oil
prices to above $100 a barrel will push up inflation and depress sentiment
among firms and households, it added. The European Commission now
forecasts euro zone gross ?domestic product growth will
slow to 0.9% in 2026 from 1.3% in 2025, with a rise of 1.2% in 2027. In its
last set of forecasts ?in November, the expectations were respectively 1.2% and
1.4%.
(Reuters)
Private banks' return on
equity moderates in FY26 amid NIM pressure, treasury losses: The return on equity of
several private sector banks moderated in 2025-26 as pressure on net interest
margins and a fall in treasury income weighed on profitability, according to an
analysis of investor presentations by banks. Among major private lenders, HDFC
Bank's RoE declined marginally to 14.3 per cent in FY26 from 14.6 per cent in
FY25 and 16.1 per cent in FY24, according to the PTI's analysis of investor
presentations of banks. In the case of the
third-largest private sector lender Axis Bank, the RoE declined to 13.15 per
cent in FY26 from 16.52 per cent in FY25.
(Business Line)
Life Insurance Corporation
of India Q4 profit rises 23%, premium income jumps; dividend announced: Life Insurance Corporation of
India (LIC) reported a 23% YoY profit growth in the March quarter, helped by
strong group business growth and continued momentum from last year’s tax cuts. The
state-owned company posted a net profit of Rs
23,467 crore for the three months ended March 31, up from ?Rs 19,038
crore in Q4 FY25. LIC’s net premium income grew
11.5% YoY to Rs 1,65,067 crore. Its one-time premiums rose 21.5% YoY while
first year premiums from new policies rose ?around 17%. LiIC’s annualized
premium equivalent sales — a key measure of new business — rose nearly 22% YoY.
(Financial Express)
Currency in circulation
rises 11%, nears record Rs.43 trillion by mid-May: Currency in circulation (CiC)
continued to rise at a sharp pace, increasing 11.5 per cent year-on-year to a
record high of Rs 42.86 trillion as on May 15, according to the latest data
released by the Reserve Bank of India. In absolute terms, CiC expanded by Rs
1.15 trillion during the first one and a half months of FY27, indicating
sustained demand for cash despite continued growth in digital payments. CiC was
Rs 41.47 trillion as on March 31, 2026, compared to Rs 32.24 trillion a year
ago — a growth of 11.9 per cent.
(Business Standard)
Fino Payments Bank CEO
Rishi Gupta to step down: Fino Payments Bank said on
Thursday Managing Director and CEO Rishi Gupta has sought voluntary early
retirement, months after he was arrested under the country's goods
and services tax law. Gupta said he wants to explore
new avenues outside the lender, without disclosing further details. The
lender, however, said the board was of the view that Gupta was "fit and
proper" to continue as MD and CEO after reviewing documents, including
legal opinions and reports it received.
(Moneycontrol)
HDFC Bank, IndusInd, Yes
Bank warm up to hybrid mode after PM's WFH call: Major lenders such as HDFC
Bank, IndusInd Bank and Yes Bank have adopted hybrid working arrangements
following Prime Minister Narendra Modi’s call for austerity measures, while
others such as Axis Bank, Citibank, and foreign banks have continued with
hybrid models introduced during the Covid-19 pandemic. Some banks are yet to
take a call but are expected to review policies and may consider hybrid working
for some time.
(Business Standard)
Commerce Dept maps import
substitution, export push amid West Asia concerns: Amid the escalating crisis in West Asia, a
weakening rupee and concerns over a widening current account deficit (CAD), the
Commerce Department is carrying out a trade analysis to identify ways to curb
imports, boost domestic manufacturing in sectors with large trade deficits and
step up exports where India enjoys a trade surplus. The department has reached
out to export promotion councils and industry bodies with product-wise lists
under four categories: High trade deficit, high import-negligible export, high
trade surplus and high export-negligible import.
(Business Line)
Adani Ports to acquire
Jaypee Fertilizers for Rs.1,500 crore through insolvency: Adani Ports and Special Economic Zone on
Thursday said it will acquire a 100 per cent stake in Jaypee Fertilizers
& Industries from Jaiprakash Associates for Rs.1,500 crore, as part of
the NCLT-approved resolution plan for JAL. Adani Ports and Special Economic
Zone Ltd (APSEZ), in a regulatory filing, said the acquisition will further
consolidate the company's inland logistics presence and service capabilities in
North India. The acquisition aligns with the company’s ambition to expand its
MMLP (Multi-Modal Logistics Park) network from 12 to 16 and warehousing
capacity by 4X by 2031, it added.
(Business Line)
India raises concerns over
UK's steel measures in WTO: India has flagged concerns in a key meeting of
the World Trade Organisation in Geneva over the UK's recent steel safeguard
measures, an official said. From July 1, 2026, the UK will limit tariff-free
steel imports, reducing the overall quota available under the existing
safeguard measures by 60 per cent. Any imports above these levels will then
face a 50 per cent tariff. The measure will apply to imports of steel products
that can also be made in the UK. India, Brazil, Turkiye, Switzerland and
Australia have expressed their concerns about the UK's proposed action, a
Geneva-based official said. Japan and Korea, which initiated discussions, have
also flagged concerns over the issue.
(Business Standard)
SEBI proposes new rules for
setting opening prices of re-listed stocks to make price discovery more fair: SEBI has proposed key changes
in the way opening prices are decided for re-listed stocks, in a move aimed at
improving price discovery and reducing extreme volatility after listing. In
a consultation paper issued on Thursday, SEBI said the current pre-open call
auction mechanism is leading to situations where genuine investor orders are
getting rejected, resulting in artificially low opening prices in some stocks.
The regulator added that this often causes heavy buying pressure after listing,
with shares repeatedly hitting upper circuits in the normal trading session. SEBI
has proposed a new system for deciding the base price of re-listed stocks. If
the suspension revocation happens within six months, exchanges will first use
the latest traded closing price on the same exchange. If that is unavailable,
they may use the latest traded price from another exchange.
(Moneycontrol)
SEBI, NISM and
IICA sign MoU to Advance Corporate Governance, ESG and Capital Markets: The National Institute of Securities
Markets (NISM), established by the Securities and Exchange Board of India
(SEBI), and Indian Institute of Corporate Affairs (IICA), under Ministry of
Corporate Affairs, have signed an MoU to
advance Corporate Governance, ESG and Capital Markets in the country. The two institutions
will jointly design and deliver capacity building programmes, certification
courses, executive education modules, and training programmes including for
SEBI officers and officials of other regulatory and financial sector
institutions.
(PiB)
FOREIGN TRADE
ZONE
·
A Foreign Trade Zone (FTZ),
also known as a free trade zone, is a designated area within a country where
goods can be imported, stored, processed, or manufactured, and then
re-exported, without being subject to customs duties or other regulations until
they enter the country's domestic market.
·
FTZs are geographically
defined areas within a country that are treated as if they are outside the
country's customs territory for the purpose of trade.
·
The primary goal of FTZs is to
encourage international trade and investment by providing businesses with a
duty-free environment for certain activities.
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 : 96.3172
INR
/ 1 GBP : 129.3900
INR
/ 1 EUR : 111.9386
INR
/100 JPY: 60.5600
EQUITY INDEX
Sensex:
75183.36 (-135.03)
NIFTY:
23654.70 (-4.30)
Bnk NIFTY: 53439.40 (-122.80)
International Day
for Biological Diversity: May 22 is
globally celebrated as the International Day for Biological Diversity (often
referred to as World Biodiversity Day). The United
Nations sanctioned this day to increase understanding and awareness of
biodiversity issues. The day commemorates the adoption of the Convention on
Biological Diversity.
Historical
events: May 22 marks
several major global milestones, ranging from groundbreaking scientific and
cultural achievements to devastating natural disasters. For India, this date
features the introduction of the modern Rupee by Sher Shah Suri and the
country's first glider flight in 1963.
****Have a nice Day****
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