Market Pulse: Nifty Gains, FDI Surge, and Inflation Concerns Shape India’s Economic Outlook

Market Summary

The benchmark Nifty index rose by 0.13% to close at 24572.7 on 19-Aug. The Nifty Midcap150 index rose by 0.25% to close at 21351.4. The Nifty Smallcap250 index rose by 1.53% to close at 17637.2. The 10yr yield remained unchanged at 6.91%.
The rupee gained 0.07% to close at 83.88 against the US Dollar.

Key News

* Net foreign direct investment (FDI) during the April-June period of the current financial year was $6.9 billion, compared to $4.7 billion in the year-ago period, reports BS
* Private capex could increase to Rs 2.45 trillion in FY25, up from Rs 1.59 trillion in
FY24: RBI study, reports BS
* Mid-sized global cafes and restaurant brands enter the Indian market or negotiate with local partners, despite declining sales for larger chains, reports ET
* MoSPI has established new Household and Enterprise Survey Divisions, along with State and International Cooperation units, reports ET
* Britain’s university funding model is in turmoil as many institutions report deficits.
The crisis intensified after a drop in international students, prompted by stricter visa rules, reports ET
* Analysis by ixigo revealed an increase in airfare by 10-25% on major routes for Diwali and Onam. Delhi-Chennai flights saw a 25% rise, while Mumbai-Hyderabad fares increased by 21%, reports ET
* RBI paper calls for cautious monetary approach as food inflation bites, reports
Moneycontrol
* India’s service sector’s performance has been in line with the global standards, according to a paper published by RBI researchers in the August Monthly Bulletin, reports Moneycontrol