Issue: 1358
· Brazilian stock market
plunges nearly 17% after Luiz Inacio Lula da Silva win.
· Central Bank of India resumed
RTGS transactions and clarified that no customer account was impacted by a
technical issue that occurred in the RTGS server.
· SBI has set up a
cybersecurity centre of excellence (CyRIS) to strengthen its ability to
anticipate emerging threats and stay ahead of the evolving cyber landscape.
· Microfinance Institutions
Network (MFIN) will issue guidelines in the next 10-15 days for lenders to move
towards using PAN CKYC) records to identify borrowers.
· Foreign assets disclosure
scheme gets 1,100 declarations as deadline nears.
· Stock markets rebound after
4-day slump; Sensex jumps 483 points.
· IIT-Kharagpur to set up
India's first dedicated school of Physical AI.
Nifty50 among the
worst-performing benchmarks in 2026 as FPI outflows weigh: India’s benchmark index, Nifty50, has
underperformed most major global benchmarks in 2026, even as its valuations
have corrected sharply since December. The Nifty50 has declined 13.1 per cent
year-to-date as of October 26, placing it among the weakest-performing
benchmark indices. Meanwhile, the rupee has depreciated 5.6 per cent against
the US dollar, adding to the pressure on dollar-based investors. Even as
falling price-to-earnings multiples have made Indian equities less expensive
than at the beginning of the year, the market remains relatively pricey
compared with most international peers. The divergence between Indian equities and global
markets is quite pronounced. Taiwan’s TWSE has gained 59 per cent year-to-date,
followed by South Korea’s KOSPI at 29.8 per cent and Brazil’s Ibovespa at 27.3
per cent. Japan’s Nikkei has risen 23.5 per cent, while the US S&P 500 has
advanced 11.4 per cent. Only Indonesia’s JCI, down 38 per cent, has performed
worse than the Nifty.
(Business Line)
Benchmark bond yield nears
7.5% on rising crude oil prices, US cues: Government bond yields rose on
Monday as persistent selling pressure, elevated crude oil prices and firm US
Treasury yields weighed on the market. Yield on the benchmark 10-year
government bond rose to 7.48 per cent, its highest level since October 2022,
from 7.47 per cent on Friday. “We might soon touch 7.5 per cent and the yield
will then move towards 7.75 per cent,” a dealer at a primary dealership said. Brent
crude futures were trading at $114.93 per barrel, down around 1.8 per cent from
Friday’s settlement of $116.72, after touching $117.41 earlier in the session.
The pullback followed a rally of more than 6 per cent last week amid concerns
over disruptions to West Asia oil supplies.
(Business Standard)
India's credit-to-GDP ratio
to rise as credit access expands: Economists: India’s credit-to-GDP ratio is
expected to rise as economic growth and formalisation increase access to
finance, economists said on Monday at the fifth edition of the Business
Standard BFSI Insight Summit 2026 in Mumbai. They said the expansion of credit
would need to support productive investment, while access to non-bank financing
and patient capital would also be important for India’s growthndia’s bank
credit-to-GDP ratio had doubled from 25 per cent to 50 per cent between 2004
and 2010. It then remained between 50 per cent and 55 per cent for more than a
decade before crossing 60 per cent, marking as a second phase of improvement.
(Business Standard)
Indian Overseas Bank Q2 net
surges 56% on strong interest income growth: Public sector lender Indian
Overseas Bank reported a 56 per cent YoY growth in net profit at Rs.1,912 crore
for the quarter ended September 2026 (Q2FY27) on the back of strong net
interest income growth, and partially aided by lower tax outgo in the quarter compared
to the year-ago period. Net interest income for the quarter increased by 26 per
cent YoY to Rs.3,867 crore, and Operating profit also increased by 26 per cent
YoY to Rs.3,016 crore. The bank’s net interest margin (domestic) increased by
14 bps YoY to 3.49 per cent. Total business of the bank
grew robustly in Q2FY27 with a 24.35 per cent growth in advances at Rs.3,45,650
crore. At Rs.4,07,428 crore, deposits grew 20 per cent YoY.
(Business Line)
SBI working on launching
exclusive ‘YONO Bharat’ mobile banking app for Jan Dhan customers: State Bank of India is working
on a variant of its mobile banking app YONO, called YONO Bharat, which we will
focus on financial inclusion customers. The app may be launched in 6-12 months.
YONO Bharat will cater to the mobile banking requirements of customers with
feature phones and certain categories of devices where the security features
are not adequate, Chairman CS Setty said at the BFSI Summit hosted by Business
Standard.
(Business Line)
Bank of Maharashtra reports
41% jump in Q2FY27 net profit at Rs.2,310 crore: Bank of Maharashtra (BoM)
reported a 41 per cent year-on-year (yoy) jump in second quarter net profit at Rs.2,310
crore, its highest in eight quarters, on the back of robust growth in net
interest income and other income. Net interest margin (NIM) improved to 3.97
per cent in the reporting quarter (3.85 per cent). Total deposits grew 21.5 per
cent yoy to stand at Rs.3,76,407 crore as at September-end 2026. Advances
rose by a healthy 30 per cent yoy to stand at Rs.3,29,359 crore as at
September-end 2026. Gross NPA position improved to
1.25 per cent of gross advances as at September-end 2026 against 1.72 per cent
as at September-end 2025. Net NPAs position too improved to 0.12 per cent of
net advances against 0.18 per cent.
(Business Line)
FCNR(B) rush squeezes margins; private banks feel more heat than
PSU peers: The
aggressive mobilisation of Foreign Currency Non-Resident Bank [FCNR(B)]
deposits increasingly weighed on bank margins during the September quarter,
with private lenders bearing a disproportionate impact owing to their larger
participation in the RBI’s FCNR(B) drive. Among private banks, Kotak
Mahindra Bank reported the steepest decline, with NIM falling 44 basis points
year-on-year to 4.1 per cent. Axis Bank’s NIM declined 37 basis points to 3.36
per cent, while ICICI Bank’s margin slipped 12 basis points to 4.18 per cent.
HDFC Bank, the largest private lender, reported a 14 basis point decline in NIM
to 3.16 per cent.
(Business Line)
IFC lends $150 million to
SBI to support 8.6 lakh rural women borrowers: The International Finance
Corporation (IFC) has extended a $150 million social loan to State Bank of
India, its first-ever credit line to a public-sector bank, in a move that is
expected to support nearly 8,64,000 rural women engaged in agriculture and allied
activities across India. The transaction highlights a shift in IFC’s India
strategy and comes alongside a separate local-currency financing agreement
aimed at expanding long-term rupee funding for private-sector investments.
(Business Line)
Insurance commission: NBFCs
seek 5-year transition period to reduce selling fee: The industry body of NBFCs has
told the Insurance Regulatory and Development Authority of India (IRDAI) that
the proposed commission caps of 2% for credit life and 5% for credit health insurance
would make credit-linked insurance distribution unviable, given distribution
costs are about 32% of the premium. Finance companies have sought
a five-year transition period to reduce insurance commissions and permission to
pay premiums directly to insurers on behalf of borrowers.
(Economic Times)
Anthropic warns advanced AI
could pose ‘catastrophic or existential risks’ in IPO filing: Anthropic has warned that increasingly capable
artificial intelligence (AI) systems could pose serious risks to humanity,
while disclosing in its IPO filing that four of its AI models gained
unauthorised access to real third-party systems during cybersecurity
evaluations. In one incident, a model used a discovered password
to gain administrator access, collected additional credentials, changed system
settings and accessed an individual's personal information. However, Anthropic
said it found no evidence that the models pursued goals beyond their assigned
tasks or attempted to evade oversight. The company warned that advanced AI
systems "could pose catastrophic or existential risks to society if not
developed and deployed responsibly."
(Moneycontrol)
Govt amends motor vehicle
rules to allow flex-fuel vehicles to run on E100 ethanol: The Ministry of Road Transport and Highways
(MoRTH) has notified changes to the Central Motor Vehicles Rules, allowing
flex-fuel vehicles designed and certified to run on ethanol blends of up to
E100, which is nearly pure ethanol. The changes are aimed at enabling vehicles built
for higher ethanol blends while ensuring that conventional petrol vehicles do
not use fuels they are not designed to handle. A senior road transport ministry
official said fuels with ethanol blends above E20 (20% ethanol-blended petrol)
and up to E100 are intended only for vehicles specifically designed and
certified to use them. Vehicles designed to run on E20 or regular petrol cannot
use E85 or E100 fuel.
(Moneycontrol)
L&T Technology
Services, Nokia sign deal to support engineering in India: L&T Technology Services on
Monday announced a five-year contract with Nokia to support engineering and
research and development activities in India. The contract brings together
LTTS' engineering capabilities with Nokia's telecommunications technology work,
according to a release. The release did not divulge the size or financial
details of the contract. Under the agreement, LTTS will support Nokia R&D
programs across areas, including product engineering, software development,
system integration, and product support.
(Business Standard)
Centre may take call on
LTCG tax restructuring on equities in coming weeks: A decision to restructure long-term capital
gains (LTCG) tax on equities, held by both foreign and domestic investors, may
be taken in the coming weeks and before the Budget, sources privy to the
matter, including a government official, told Moneycontrol. The LTCG tax on sale of
equities by foreign and domestic investors is 12.5 percent without indexation
benefits. The tax is applicable on gains exceeding Rs 1.25 lakh per financial
year on listed shares. No such limit is applicable on sale of unlisted shares. "A
decision on restructuring is expected soon," an official said on condition
of anonymity. "The government is examining the LTCG rate with what is
applicable in major economies."
(Moneycontrol)
CBDT nudges taxpayers with
undeclared properties in UAE to disclose assets under new scheme: The Income Tax Department has begun nudging
select taxpayers suspected of holding undeclared overseas properties to take
advantage of a one-time disclosure window under the government’s Foreign Assets
of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS), as authorities step up
efforts to bring undisclosed foreign assets and income into the tax net. Sources told Business
Today that the department has recently reached out to select taxpayers who have
invested in residential and commercial properties in a country in the UAE. The
move follows a high-level meeting held on October 23, 2026, at which it was
decided that information available with the department could be shared with
relevant taxpayers, wherever possible, to help them avail of the scheme.
(Business Today)
Govt extends RELIEF scheme
for exporters till March 2027 amid West Asia crisis: The Commerce Ministry has said the extension
of the Resilience & Logistics Intervention for Export Facilitation (RELIEF)
scheme by six months, until March 31, 2027, underscores the government’s
commitment to strengthening export resilience amid continuing geopolitical
tensions and maritime logistics uncertainties. Launched on March 19, RELIEF
aims to cushion exporters against sharp increases in freight costs and
insurance premia, as well as war-related export risks arising from disruptions
in the Gulf and the wider West Asian maritime corridor, according to a Commerce
Department statement issued on Monday. The latest extension follows an earlier
extension of the scheme’s timeline until September 30.
(Business Line)
FROTH
·
Froth refers to a market
condition where an asset's price begins to increase beyond its intrinsic value.
·
Froth refers to market
conditions preceding an actual market bubble, where asset prices become
detached from their underlying intrinsic values as demand for those assets
drives their prices to unsustainable levels.
·
A frothy market is
characterized by overconfident investors that ignore market fundamentals and
bid up an asset's price beyond the asset's quantitative worth.
·
Two examples of burst bubbles
include the dot-com bust of 2001 and the housing crash of 2007-08.
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 : 95.1549
INR
/ 1 GBP : 127.2269
INR
/ 1 EUR : 106.7241
INR
/100 JPY: 60.5700
EQUITY INDEX
Sensex:
73606.75 (+482.92)
NIFTY:
22753.20 (+153.20)
Bnk NIFTY: 54366.70 (+79.35)
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