RBI to infuse liquidity via $5 billion dollar rupee swap auction on May 26

The RBI will conduct a $5 billion USD/INR buy-sell swap auction on May 26 to inject long-term liquidity into the banking system and strengthen forex reserves. The move aims to stabilise rupee volatility amid global pressures and recent currency depreciation linked to geopolitical tensions and oil price shocks.

FIIs won’t return in a hurry; need 3 triggers: Amar K Ambani

Foreign institutional investors (FIIs) are unlikely to return to Indian equities soon due to structural and cyclical forces, including modest dollar returns and the AI revolution favoring other markets. FIIs may only re-enter if valuations hit rock bottom, IPO activity surges, or global markets become overheated, making India an attractive diversification option.

Households invest record Rs 5.43 lakh crore in mutual funds

Indian households demonstrated a structural shift in FY25. They pulled Rs 54,786 cr from secondary equities but doubled primary investments. A record Rs 5.43 lakh crore went into mutual funds, nearly doubling total securities market savings to Rs 6.91 lakh crore, favoring financial assets.

NCDEX launches India’s first weather derivatives contract based on Mumbai rainfall

NCDEX has announced India’s first SEBI-approved exchange-traded weather derivatives contract, “RAINMUMBAI”, aimed at helping market participants hedge risks arising from monsoon rainfall fluctuations. The contract, based on IMD rainfall data and developed with IIT Bombay, seeks to create a regulated framework for managing climate-linked financial risks across sectors.

Global funds ready for further Rupee weakness with 100 in sight

Global investors anticipate further depreciation of the Indian rupee, with some projecting a fall to 100 per dollar. This outlook is driven by rising oil import costs due to the US-Iran conflict and investor preference for the greenback. The rupee’s decline has already eroded local gains for foreign funds, prompting concerns about potential central bank […]