Sensex, Nifty slip to near six-month lows as Rupee tests 96 against dollarthehindubusinessline.com
Indian benchmark indices Sensex and Nifty closed near six-month lows on Tuesday, extending their longest weekly losing run since 2020 amid persistent foreign fund outflows and rising bond yields. The Sensex fell 242.65 points to close at 72,529.07, while the Nifty 50 dropped 64 points to settle at 22,716.20. During the session, the rupee briefly breached the 96 mark against the US dollar before recovering due to intervention by the Reserve Bank of India and a pullback in crude oil prices. Broader markets underperformed, with consumer durables, chemicals, and realty stocks leading the sectoral decline.
Nifty 50 falls 6.3% in September, worst monthly series in 25 years; what triggered the sell-off?livemint.com
The Nifty 50 tumbled 6.3% in September, marking its worst monthly performance in twenty-five years since a 13.53% drop in 2001. The sharp sell-off was driven by surging crude oil prices stemming from the Middle East conflict, elevated global bond yields, and persistent selling by foreign institutional investors. The index also recorded a seven-week losing streak, its longest sustained decline since 2020. Market analysts note that the index tested its 200-week moving average around 22,600, a crucial support level that could dictate future market direction.
US 30-year Treasury yield tops 5.6%, reaching highest level since 2002economictimes.indiatimes.com
Yields on the 30-year US Treasury bond climbed above 5.61% on Tuesday, hitting their highest level since 2002 amid an ongoing sell-off in the global debt market. The rise reflects growing inflationary pressures from elevated energy prices and heavy corporate debt issuance, including a massive financing package for Paramount's acquisition of Warner Bros. Discovery. Government bonds worldwide have faced continued downward pressure as Middle East conflicts drive up oil prices and fuel expectations of further monetary tightening by central banks.
India’s fertiliser subsidy may exceed ₹3 lakh crore in the current fiscalthehindubusinessline.com
India's fertilizer subsidy bill for the current fiscal year may exceed three lakh crore rupees due to surging global prices and raw material shortages following the conflict involving Iran and Qatar. Fertilizer Secretary Rajat Kumar Mishra noted that the per-bag subsidy burden has surged significantly, with urea subsidies jumping over 100% and DAP subsidies rising 61%. Despite domestic production challenges and soaring costs for key inputs like sulfur and phosphoric acid, the government maintains that national stock levels remain sufficient to meet estimated rabi season demands.
Panel proposes raising RBI's ways and means advances corpus by 11.2% to Rs 67,839 croreeconomictimes.indiatimes.com
A panel reviewing the Reserve Bank of India's liquidity support to state governments has recommended raising the Ways and Means Advances corpus by 11.2% to 67,839 crore rupees. Headed by former Karnataka additional chief secretary ISN Prasad, the committee also proposed capping future annual upward revisions at 4% based on the last three accounts years. Additionally, the panel suggested reducing continuous overdraft days from 14 to 10 to discourage states from over-relying on emergency central bank financing.
FM Sitharaman meets AIIB President, suggests expansion of financing beyond physical infraeconomictimes.indiatimes.com
Union Finance Minister Nirmala Sitharaman met Asian Infrastructure Investment Bank President Zou Jiayi in Doha to discuss project pipelines and institutional priorities. Sitharaman suggested that the multilateral bank expand its financing beyond traditional physical infrastructure to include emerging areas centered on artificial intelligence, micro, small, and medium enterprises, and skill training. She reiterated India's support for the bank's 2027 budget plans while emphasizing that regional centrality must remain a core mandate of the institution.