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Quick Summary RBI kept its key rate unchanged at 5.25% , matching market expectations US slashed tariffs on Indian goods to 18% from 50% , lifting growth outlook Rupee rebounded strongly , becoming Asia’s top performer this month Inflation remains well below target , giving RBI policy flexibility What Happened The  Reserve Bank of India  held its  repo rate at 5.25% , with the six-member Monetary Policy Committee voting  unanimously  to keep policy unchanged and maintain a  neutral stance . The decision comes as India’s macro outlook improves, helped by  higher government spending  and a surprise  US–India trade boost . Why the Outlook Improved US President  Donald Trump  announced  tariff cuts on Indian goods to 18% from 50% Economists now expect  upward revisions to India’s growth forecasts The Indian government increased  budgetary spending , supporting domestic demand Key impact:  The  rupee bounced back...

Simple Summary Rupee posts its biggest gain in over three years Indian stocks jump the most since 2021 US slashes tariffs on Indian goods to 18% Deal removes a major overhang on Indian markets What Happened Indian markets roared higher after US President  Donald Trump  announced a sharp  tariff cut on Indian goods to 18% , down from 25%, while also  scrapping an additional 25% levy  tied to India’s purchases of Russian crude. Market Reaction Nifty 50 Index:   +5% intraday  (biggest jump since 2021) Indian rupee:   +1.2% to 90.46/USD , its strongest move in more than three years The deal delivered  much-needed relief  to the rupee, which had been  Asia’s worst-performing currency in January . Why It Matters India sends a  large share of exports to the US Tariffs had weighed on  equities, currency and foreign inflows The agreement  lifts a key source of uncertainty  for investors “The deal finally provides some rel...

India’s headline inflation eased to near  record lows in September  and could fall  below 1% in October , according to Citi analysts  Samiran Chakraborty  and  Baqar M Zaidi . Despite ample room for policy easing, the  Reserve Bank of India (RBI)  is expected to  stay on hold , with policymakers debating  whether there’s a need to cut rates, not just room to do so. Core CPI, however,  rose to a two-year high , suggesting sticky price pressures in some segments. Citi cut its  FY inflation forecast to 2.3% from 2.9% , noting the RBI will likely  monitor GDP and trade data ahead of its December meeting  before considering any policy shift.

Amid a turbulent week in the markets due to Middle East tensions , Indian investors set a new record, purchasing $1.53 billion in shares during Thursday's selloff, the largest since August. This marked the third time in 2024 that domestic buyers poured over $1 billion into the market in a single day , helping to absorb most of the $1.8 billion in stocks offloaded by foreign investors. The Nifty index is on track for its biggest weekly decline in over two years , yet domestic institutions continue to capitalize on market dips, demonstrating their resilience and influence during times of global volatility. In other sectors, BSE and brokerage Angel One outperformed Thursday's selloff, despite concerns over the impact of SEBI's options trading curbs . While premium turnover has stagnated, some analysts expect trading volumes from discontinued NSE contracts to shift to BSE , providing a potential upside. Meanwhile, the recovery in consumer staples stocks has been called i...