India Macro Daily(Beta Mode)
RBI Supports Rupee as Equities Rise
Market Snapshot
| Asset | Level | Change |
|---|---|---|
| Nifty 50 | 24,334.30 | +1.09% |
| Sensex | 78,151.45 | +1.25% |
| USD/INR | 96.28 | -0.38% |
| EUR/INR | 109.96 | -0.20% |
| Reliance | 1,327.20 | +2.36% |
| HDFC Bank | 819.60 | +1.40% |
| Brent Crude | 88.85 | +0.85% |
| Gold | 4,021.20 | +0.21% |
| Bitcoin | 65,311.11 | +0.96% |
| India Short-term Rate | 5.50% | +0.00% |
| India Long-term Rate | - | - |
Prior Economic Events
| Data | Prior | Cons | Actual |
|---|---|---|---|
| No events available | |||
India Short-term Policy Rate | Type: macro_line | %: 5.5 (2026-05-01) | Range: 4.25–6.75 | Trend(5pt): 4.25,6.15,6.75,6.5,5.5
Today's Economic Events
| Data | Prior | Cons | Time |
|---|---|---|---|
| Friday (2026-07-24) | |||
| HSBC Composite PMI Flash | - | - | 21:00 |
| HSBC Manufacturing PMI Flash | - | - | 21:00 |
| HSBC Services PMI Flash | - | - | 21:00 |
- Nifty and Sensex rose over 1% as RBI intervention lifted the rupee 0.38% against the dollar.
- Brent crude climbed to $88.85, pressuring bond yields lower while gold edged up 0.21%.
- HSBC flash PMI releases due 23 July will test services and manufacturing momentum.
Yesterday's Recap
Indian equities posted solid gains, with the Nifty 50 advancing 1.09% to 24,334.30 and the Sensex climbing 1.25% to 78,151.45. The rupee strengthened to 96.28 per dollar after the RBI stepped in to counter selling pressure near record lows. Brent crude rose 0.85% to $88.85 on supply concerns, pushing the 10-year bond yield lower.
Reliance Industries led the rally with a 2.36% gain, while HDFC Bank added 1.40%. FCNR(B) deposits reached $17.4 billion, providing some external-sector support yet falling short of earlier expectations. India VIX remained contained, reflecting reduced near-term volatility despite persistent FII outflows.
No major data prints were released. RBI Governor Malhotra noted the economy’s resilience amid West Asia tensions and monsoon shortfalls, while services exports and remittances offered external stability.
The Day Ahead
Markets will monitor the 23 July HSBC flash PMI prints for manufacturing, services and composite readings that will shape growth expectations. The releases arrive amid concerns over weak monsoon progress and elevated oil prices. RBI liquidity operations and any further rupee support measures remain in focus after recent interventions.
Foreign portfolio flows and USD/INR positioning will dictate intraday moves in both equities and the currency. Broader sentiment hinges on global risk appetite and any fresh signals from the central bank on inflation tolerance. Infrastructure awards and kharif sowing trends will also influence sector rotation, particularly in rural-facing stocks.
Other Economic Notes
Reports flag stagflation risks as growth moderates while price pressures persist, with May CPI at 3.94% offering limited comfort. Foreign investment inflows are projected to rebound in FY27, supported by manufacturing and fintech sectors. Services exports continued to expand, though rupee appreciation capped margins for IT firms.
Infrastructure awards accelerated, yet kharif sowing data will be watched closely for food-price implications. RBI Governor Malhotra highlighted West Asia tensions and monsoon shortfalls as primary downside risks to the outlook. June FDI reached notable levels in manufacturing, reinforcing medium-term capital formation prospects.
