Market Movements and Key Economic Updates: A Comprehensive Overview

Market Summary

The benchmark Nifty index rose by 0.76% to close at 24800.8 on 18-Jul. The Nifty Midcap150 index fell by 0.94% to close at 21255.6. The Nifty Smallcap250 index fell by 1.11% to close at 17577.7. The 10yr yield fell by 1 bps to close at 7.0%. The rupee lost 0.09% to close at 83.63 against the US Dollar.

Key News

* The RBI has revised its estimates of the neutral rate of interest for Q3-2022-22 from 0.8-1.0% to 1.1-1.3%, reflecting GDP data revisions, reports ET
* The RBI may shift its monetary stance from withdrawal of accommodation to neutral before reaching its inflation target, despite persistent food inflation, reports
ET
* Overseas Indians deposited close to $3 billion in NRI deposit schemes in April-May
FY25, i.e. is over 4 times higher than the amount deposited in these schemes in the same period last year: RBI data, reports BS
* Foreign banks have emerged as the largest investors, with their investments exceeding the value of net inflows into JP Morgan index-eligible bonds, as per RBI report, reports BS
* With the surplus monsoon rains in July erasing the deficiency in rainfall in June, water levels in the country’s 50 major reservoirs improved for the third week in a row, reports FE
* The government has set a target of 0.36 million hectare for kharif onion this year, which is 27% more than 0.28 MH reported in 2023, reports FE
* Labour productivity shrank in 9 industries during FY23: RBI’s KLEMS data, reports
BS
* NHAI doubles toll for non-FASTag vehicles, causing delays in toll lanes. SOPs mandate capturing Vehicle Registration Numbers via CCTV, reports ET