Rupee support measures: RBI holds repo rate steady and offers tax, swap, and hedging incentives for foreign inflows.
The Reserve Bank of India kept the policy repo rate unchanged at 5.25 per cent and maintained a neutral stance while announcing measures to attract foreign capital and support the rupee. The package removed tax on interest income and capital gains for eligible foreign investors in government securities, broadened access to sovereign bonds under the foreign investment route, and provided concessional foreign-currency swap and hedging support for specified overseas borrowing and non-resident deposit arrangements.

Foreign exchange reserves remain a strong buffer, with policy support aimed at orderly market conditions and balance of payments stability.
Foreign exchange reserves were described as healthy at USD 682.3 billion, with import cover of about 11 months and external debt coverage of 89.1 per cent. The reserves were presented as a strong buffer against external shocks, alongside the Reserve Bank's readiness to use regulatory and market-based instruments to preserve orderly market conditions if required. Policy support for the balance of payments was linked to measures such as trading partner agreements, full foreign direct investment in insurance, energy transition initiatives, easing of foreign direct investment restrictions, and liberalisation of the external commercial borrowing framework.

Neutral monetary stance and capital-inflow measures support the rupee amid inflation and growth risks
Monetary policy remained unchanged as the Monetary Policy Committee kept the benchmark repo rate at 5.25 per cent and continued with a neutral stance, while adopting a data-dependent approach in view of elevated global risks. The Reserve Bank lowered its growth projection for the year and revised inflation expectations upward, while cautioning that energy shocks and supply pressures could feed into wages and inflation expectations. Measures were also announced to attract foreign capital and support the rupee, including tax relief for eligible foreign investors in government securities, concessional foreign-exchange swaps, and subsidised hedging costs for fresh FCNR(B) deposits.

Inflation outlook rises as higher energy prices and input costs increase pressure on consumer price inflation.
Reserve Bank projected retail inflation for 2026-27 at 5.1 per cent, revising the earlier estimate upward because higher global energy prices are being passed through to petrol, diesel and other input costs. The statement said higher fuel prices are having a direct effect on headline inflation, with second-round effects likely to add further upward pressure on CPI inflation in the coming months.

FII taxation on Government Securities is proposed to shift toward exemption for interest and capital gains.
Under the Income-tax Act, 2025, FIIs are taxed on income from securities and capital gains under a separate framework, with securities income taxable at 20%, short-term capital gains taxable at 30% or 20% depending on coverage under concessional provisions, and long-term capital gains taxable at 12.5%. The proposed ordinance seeks to exempt interest income from Government Securities and capital gains arising on their transfer or redemption, while explaining the role of listed and unlisted securities, the absence of Securities Transaction Tax, and the holding-period rules for classification as short-term or long-term capital assets.

Government securities income exemption limits BIS tax relief to specified interest and capital gains from investment pool.
Income of the Bank for International Settlements from specified investments in Government Securities is proposed to be exempted under the ordinance. The exemption is confined to interest income earned from Government Securities and capital gains arising on transfer or redemption of Government Securities through the specified INR-denominated investment pool for central banks and official monetary authorities. It does not extend to all income earned by BIS in India or to other BIS operations.

Tax exemptions on government securities and expanded market access aim to boost foreign participation and capital inflows.
Tax exemptions were introduced on interest income and capital gains arising from the sale, exchange or transfer of government securities, extended to foreign institutional investors and the Bank for International Settlements, subject to prescribed information-reporting requirements. The amendment to the Income Tax Act was stated to take effect from 1 April through an ordinance under the President's ordinance-making power. The Reserve Bank of India also widened foreign participation in government and equity markets through additional access and relaxation measures.

Rupee appreciation after RBI policy as investment norms eased, repo rate stayed unchanged, and sentiment improved.
Rupee appreciation followed the RBI's monetary policy announcement after the central bank liberalised norms for FPI investment in government securities and raised the investment limit for Non-Resident Indians and Overseas Citizens of India in equity instruments. The Monetary Policy Committee kept the repo rate unchanged at 5.25 per cent with a neutral stance, while the RBI stated that its exchange-rate policy remains unchanged and that it does not target any specific rate or band for the rupee.

GDP growth forecast revision reflects energy price pressures, supply disruptions, and geopolitical risks to economic activity.
The Reserve Bank revised down its real GDP growth projection for FY 2026-27 to 6.6 per cent, citing elevated energy and commodity prices, continued supply disruptions from the West Asia conflict, and broader risks from global supply-chain disruption, financial market volatility, and weather-related shocks. Domestic activity was described as broadly resilient, with manufacturing, services, consumption, investment, and exports holding up despite cost pressures, while the global outlook remains clouded by geopolitical tensions and foreign exchange volatility.

Government securities tax exemption for foreign investors aims to attract long-term capital into sovereign debt markets.
Government foreign investment policy for government securities has been adjusted to attract long-term dollar inflows by exempting foreign institutional investors from long-term capital gains tax on investments in government securities through an Ordinance amending the Income Tax Act. The change is intended to make sovereign debt more attractive to patient foreign capital, particularly at a time of heavy foreign fund outflows from equities and pressure on the rupee.

Rupee appreciation and RBI policy outlook drive market focus as India-US trade talks support sentiment.
The rupee appreciated in early trade against the US dollar as market participants awaited the Reserve Bank of India's monetary policy decision, with inflation, growth and currency stability under focus. Traders viewed 96.00 as a key resistance level for USD/INR and expected a cautious policy stance to support debt inflows and a possible move toward the 95.00-95.20 range. Encouraging India-US trade talks also supported sentiment and future capital inflows.

RBI monetary policy decision lifts market sentiment as Indian equities trade higher amid mixed global cues and foreign selling.
Indian equity markets traded higher in early session ahead of the Reserve Bank of India's monetary policy decision. Market sentiment was shaped by expectations around the policy statement and the RBI Governor's message, alongside mixed global cues and continued foreign institutional investor selling.

Land compensation fraud and money laundering allegations linked to highway acquisition triggered enforcement action under PMLA.
Money laundering investigation arose from alleged irregularities in compensation disbursement for land acquired for the Raipur-Visakhapatnam Economic Corridor under the Bharatmala project. The allegations state that land within the notified highway alignment was acquired and then fragmented into smaller plots to claim enhanced compensation from the National Highways Authority of India. The accused, along with family members and certain public servants, is alleged to have received compensation far in excess of the amount legitimately payable, generating alleged proceeds of crime that were later layered through shares, mutual funds and other financial instruments.

Steel import restrictions delay India-UK trade deal implementation amid concerns over domestic industry protection and tariff commitments.
Steel import restrictions are being used as a protective trade measure against global overcapacity and the risk to domestic steel-making capability. The measures are linked to delays in implementing the India-UK Comprehensive Economic and Trade Agreement, while the treaty framework also includes whisky tariff liberalisation and continuing bilateral discussions on trade cooperation.

Emergency national security authority is being used to support coal plants, exports and fossil-fuel power reliability.
Use of emergency national security authority is proposed to fund coal-fired power support, coal exports and related infrastructure, including support for existing coal plants, recommissioning of a plant, construction of new coal plants in Alaska and West Virginia, and development of a coal export terminal in California. The announced package is described as part of a broader federal effort to sustain coal capacity and extend the operation of fossil-fuel power plants past retirement dates in response to power-demand concerns.

Trade agreement negotiations continue as India and the United States reaffirm commitment to strengthen bilateral trade and economic ties.
India and the United States reaffirmed their commitment to conclude a mutually beneficial trade agreement aimed at strengthening bilateral trade and economic ties. Chief negotiators completed four days of talks marked by cooperation and pragmatism, with discussions covering trade in goods, non-tariff measures, customs and trade facilitation, economic security alignment, and other areas of mutual interest.

Flex-fuel vehicles and higher ethanol blends are reshaping India's fuel policy toward cleaner mobility and energy security.
Flex-fuel passenger vehicles have been introduced with technology that can run on ethanol-petrol blends ranging from E20 to E100 through an adaptive engine control system. The shift reflects India's broader move toward higher ethanol blending to reduce crude oil import dependence, strengthen energy security, lower carbon emissions, and support rural and biofuel-based economic activity. Proposed amendments to vehicle emission rules and the Central Motor Vehicles Rules, 1989, aim to widen the use of E85, E100, biodiesel, and hydrogen-CNG combinations.

Psychological and religious coercion allegations drive chargesheet in TCS Nashik harassment and conversion case
Sexual harassment and alleged forcible conversion allegations at TCS's Nashik unit are reflected in the chargesheet filed in a case registered at Deolali Camp police station on a complaint by a 23-year-old employee. The document records statements that the accused used psychological and religious persuasion under the guise of reducing mental stress, including pressure to watch Islamic preaching videos, recite prayers, stop listening to Hindu devotional songs, visit temples less, and accept Islam. The victim further stated that one accused exploited her on the pretext of marriage and had obtained details of her bank accounts and UPI PIN.

Foreign exchange market volatility lifts the rupee slightly as crude eases and policy expectations build.
The rupee appreciated modestly against the US dollar as easing global crude oil prices supported the currency, while heightened geopolitical tensions in West Asia limited sharper gains through safe-haven demand. Traders linked the exchange-rate movement to energy volatility, external risk sentiment and expectations around the upcoming monetary policy decision, with inflation, growth and the rupee under watch.

Gold prices rebound on easing crude oil, while West Asia uncertainty and policy signals keep precious metals volatile.
Gold prices resumed their volatile movement and rose above the Rs 1.6 lakh per 10 grams mark as easing crude oil rates provided support. Silver extended losses for a second straight session, while market participants tracked West Asia uncertainty, tighter US monetary policy expectations, unresolved US-Iran negotiations, and the Reserve Bank of India's policy decision for further direction.