Issue: 1251
·
US authorises Iranian oil sales for 60 days after Switzerland
talks with Tehran.
·
UK PM Keir Starmer steps down.
·
Meta appoints Cred’s Kunal Shah new WhatsApp lead, invests
$900mn in his startup.
·
RBI net sold $8.944 billion in spot market in April, says
bulletin.
·
'Nursery of entrepreneurship, key to Viksit Bharat': RBI Guv
bats for MSME.
·
World Bank approves $1.5 bn loan to support India's reforms,
job creation.
Weak monsoon could hit
economy despite strong fundamentals: RBI bulletin: An adverse south-west monsoon
could weigh on India's growth and inflation outlook even as the country's
economy remains resilient amid a fragile global environment, according to an
article on the State of the Economy published in the Reserve Bank Bulletin for
June. The article said geopolitical
tensions and trade disruptions continued despite the recent interim peace deal
in West Asia, while warning that global risks remain elevated. "The global
economic landscape remains fragile despite some respite gained through the
interim US-Iran peace agreement," the article said.
(Moneycontrol)
Core sector growth slows to
seven-month low of 0.5% in May: India’s core sector growth
slowed sharply to a seven-month low of 0.5 percent in May, down from 1.8
percent in April, as weakness across energy-related sectors offset resilience
in steel, cement and electricity output. The slowdown was driven
primarily by broad-based contraction in fuel and mining segments. Coal output
fell 9.3 percent in May, worsening from an 8.8 percent decline in April. Crude
oil production contracted 4.6 percent, while natural gas output fell 4.9 percent. Petroleum
refinery products saw the sharpest deterioration, slipping 8.7 percent in May
compared with a marginal 0.5 percent decline in April, indicating significant
stress in downstream energy production.
(Moneycontrol)
India's private investment
gains overtakes government share post-COVID: Report: The composition of investment
has shifted in favour of private players post-pandemic, with their share rising
to 71.3% of project announcements between 2022-23 and 2025-26 from a
government-dominated 54.2% in the four years preceding COVID-19, according to a
research report by Bank of Baroda citing CMIE data.
(Economic Times)
RBI sweetens FCNR (B) route
for banks: The
Reserve Bank of India (RBI), through a series of measures, is making the
FCNR(B) deposit route more attractive for both depositors and lenders, bankers
said. The measures include allowing unlimited leverage against deposits and
permitting Indian banks to lend to NRI clients through their overseas branches.
Bankers have been seeking clarity from the central bank on these measures since
they were announced on June 5. Earlier, there were concerns over whether the
RBI would impose limits on the extent of leverage available against FCNR(B)
deposits.
(Financial Express)
RBI Governor asks banks to
treat MSMEs as growth partners: RBI Governor Sanjay Malhotra
urged banks to embrace digital transformation and view MSMEs as vital partners,
not just compliance. Speaking at International MSME Day, he stressed investing
in technology, R&D, and innovation for entrepreneurs. Malhotra highlighted
the need for financial institutions to leverage digital infrastructure like
Account Aggregator and ULI for efficient, data-driven credit.
(Economic Times)
Inflationary pressures,
reduction in discretionary cash flows may impact collection of MFIs: Microfinance borrowers'
repayment behavior may face challenges from inflation and reduced household
cash, though the West Asia conflict hasn't directly impacted the sector. El
Nino's effect on rural incomes also warrants attention. While Karnataka saw
collection dips after new regulations, Tamil Nadu and Bihar adapted
effectively. Stricter lending guardrails have significantly improved
securitised loan pool performance, reducing overdue build-up by limiting
exposure to over-leveraged borrowers.
(Economic Times)
Rupee snaps 6-day winning
streak on US dollar demand from importers: The rupee snapped a
six-session gaining streak on Monday, weighed down by dollar demand from
importers and outflows linked to ICICI Asset Management Company, dealers said. Market
participants said dollar demand linked to outflows following the expiry of the
lock-in period for ICICI Asset Management Company’s initial public offering
(IPO) weighed on the domestic currency during the day. The domestic currency
fell to an intraday low of 94.75 per dollar before settling at 94.68 per
dollar, against the previous close of 94.33 per dollar.
(Business Standard)
'Indian financial firms to
tap $1.5 billion overseas bonds this week': Indian lenders are on course
to lock in pricing for $1.5 billion of bond issues this week, as a cheaper
hedging facility spurs a rush in foreign-currency issuance, three bankers said
on Monday. State-run financier Power Finance Corp aims to sell about $500
million of bonds, and has given an initial price guidance of a yield spread of
130 basis points over US Treasuries, the bankers said, making it the first
non-bank lender to tap dollar bonds after India earlier this month opened a
forex swap facility as part of wider measures to help the rupee. "We
expect the pricing for the PFC bond issue to ease to around 100 bps over
Treasury," one of the bankers said..
(Business Standard)
The smartphone is becoming
India’s most important financial advisor: India's financial landscape is rapidly digitizing,
with smartphones becoming central to everyday money management. Once separate,
banking and investment activities now converge on single platforms, making
financial planning more accessible. This shift, driven by convenience and
proximity, empowers millions entering formal finance to make informed
decisions, transforming income into resilience and savings into wealth. The
smartphone is emerging as a key guide in this evolution.
(Economic Times)
India Becomes World’s Top
Ship Recycling Nation in 2025, Achieves Vision 2030 Target Five Years Ahead of
Schedule:
India
emerged as the global leader in ship recycling in 2025, growing its market
share to 35.4% from 30.1% in 2024, according to a United Nations Conference on
Trade and Development (UNCTAD) report cited by the shipping ministry. The
country processed 2.99 million gross tons (GT) during the year, marking a
nearly 60% increase from 1.86 million GT in 2024. With this, the ministry said,
India has achieved its Maritime India Vision (MIV) 2030 goal of becoming the
top global ship recycling nation well ahead of schedule. The achievement
reflects the impact of maritime policy reforms and the government’s
ease-of-doing-business initiatives, it added.
(Mint)
Govt imposes
anti-dumping duty on chemical imported from China, EU, US: India has imposed an anti-dumping duty
for five years on a chemical, used in the rubber and tyre industries, imported
from China, the European Union and the US. According to a notification of the
finance ministry, the duty was imposed following a recommendation for the same
by the commerce ministry's arm, the Directorate General of Trade Remedies
(DGTR). The duty ranges between USD 75 per tonne and USD 1748 per tonne. "The
anti-dumping duty imposed under this notification shall be levied for a period
of five years (unless revoked, superseded or amended earlier)," the
notification, dated June 19, said.
(Business Standard)
Sebi mulls consolidating
tech, cybersecurity norms across mkt institutions: Markets regulator Sebi on
Monday proposed a comprehensive overhaul and consolidation of information
technology-related regulations applicable to market infrastructure institutions
aimed at simplifying compliance requirements, removing redundancies and
ensuring regulatory consistency across. In its consultation paper, the
regulator proposed merging provisions of the Master Circulars for stock
exchanges and clearing corporations with the Master Circular for commodity
derivatives,while also creating a consolidated circular covering common
IT-related areas such as cyber security, cyber resilience, annual system
audits, business continuity planning and disaster recovery (BCPDR), capacity
planning and technology advisories.
(Business Standard)
India's rooftop solar
additions soar 125% to record 2.7 GW in March quarter: India added a record 2.7 GW of
rooftop solar capacity in the January-March quarter, marking the sector's
strongest-ever quarterly performance as installations surged 125 per cent YoY,
according to a report by Mercom India Research. India's cumulative rooftop
solar installations reached 23.5 GW at the end of March 2026, Mercom India
stated in its Q1 2026 India Rooftop Solar Market Report. The surge in rooftop
solar installations was largely driven by robust residential demand under the
PM Surya Ghar scheme and rapid adoption across large states, including Uttar
Pradesh. Maharashtra, Uttar Pradesh and
Gujarat led rooftop solar installations during the March quarter, accounting
for more than 17 per cent, 16 per cent and 15 per cent of installations,
respectively.
(Business Standard)
SEBI proposes
opening up Direct Market Access for retail, in a major technology rule overhaul: Market regulator Securities and Exchange
Board of India (SEBI) has proposed expanding Direct Market Access (DMA) beyond
institutional investors to all categories of market participants, including
retail, as part of a sweeping overhaul of technology regulations governing
stock exchanges and other market infrastructure institutions (MIIs). DMA is a
facility that allows investors to place buy and sell orders directly into a
stock exchange's trading system through a broker's infrastructure, without
manual intervention by the broker's dealer.
(Moneycontrol)
NORDIC MODEL
§ The
"Nordic model" refers to the economic and social systems of the
Nordic countries (Sweden, Norway, Denmark, Finland, and Iceland). It is a
system that combines free-market capitalism with a robust, tax-funded welfare
state. The model aims to achieve high living standards, gender equality, and
low-income disparity.
§ Core
pillars of this model includes; Extensive Social Welfare, High, Progressive
Taxation, Strong Labor Unions, and Free-Market Capitalism.
§ The
model consistently results in high social mobility, high workplace
participation, strong civic trust, and an excellent quality of life
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 : 94.4938
INR
/ 1 GBP : 124.8528
INR
/ 1 EUR : 108.2543
INR
/100 JPY: 58.4600
EQUITY INDEX
Sensex:
77094.07 (+291.17)
NIFTY:
24102.90 (+89.80)
Bnk NIFTY: 57935.60 (+249.85)
United Nations Public
Service Day: United Nations
Public Service Day is observed annually on June 23 to celebrate the value and
virtue of public service to the community. It recognizes the critical
contributions of public servants, highlights the role of the public sector in
development, and encourages youth to pursue careers in public administration.
Historical
events: June 23 marks
pivotal milestones, notably the Battle of Plassey in 1757, which established
British rule in India. Globally, it commemorates the founding of the
International Olympic Committee in 1894. In modern Indian history, it is
remembered for the tragic 1980 death of political leader Sanjay Gandhi in a
plane crash.
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