News & Impact on India

1. US Housing & Fed Outlook US home price growth slowed to 1.3% YoY, well below inflation, strengthening expectations of Fed rate cuts. Impact: Improved global liquidity is supportive for Indian equities and debt flows. A softer USD may aid INR stability and ease imported inflation. Positive for rate-sensitive sectors like banks, NBFCs, real estate, and autos. 2. China’s $9 bn Consumption Stimulus China announced ~$9 bn in subsidies via ultra-long bonds to revive domestic demand. Impact: Could support global commodity demand, but direct benefits for Indian exporters remain limited. Risk of pricing pressure if Chinese firms push excess supply globally. 3. China Cuts VAT on Home Resales (Jan 2026) VAT on homes sold within two years cut from 5% to 3% to boost property transactions. Impact: May stabilise China’s property sector and improve global risk sentiment. Indirectly supportive for metals, though impact on Indian stocks is likely gradual. 4. India’s Russian Oil Imports Hit 3-Year Low Imports fell 38% MoM to 1.14 mbpd due to tighter sanctions. Impact: Lower availability of discounted crude may raise import costs, pressure trade deficit and inflation, and affect near-term refining margins. 5. Safeguard Duty on Steel Imports India imposed a 12% safeguard duty, tapering over three years, on select steel products. Impact: Positive for domestic steel producers’ margins; mild cost pressure for autos, capital goods, and infrastructure players. 6. PSB Hiring Picks Up After 5 Years PSB employee count rose 0.22% YoY in FY25. Impact: Indicates capacity rebuilding, supporting credit growth, with manageable cost impact amid improving asset quality.