News & Impact on India
1. U.S. Fed Chair Transition Hint
Trump signalling Kevin Hassett as a possible successor to Powell creates uncertainty around the U.S. policy path. A potentially softer Fed could weaken the USD and support EM inflows, including India, though near-term volatility in global equities and bonds may rise.
2. Switzerland Signals Adjustment to U.S. Tariffs
Despite tariff parity with the EU, U.S. protectionism remains sticky. This keeps global trade sentiment cautious and may weigh on India’s export-linked sectors such as IT, textiles and specialty chemicals.
3. India Retains FDI Cap in PSBs
No move to raise FDI in PSBs from 20% to 49%. This maintains stability in ownership but limits fresh foreign capital that could help long-term competitiveness. Near-term neutral; long-term could delay valuation rerating in PSBs.
4. Push for State Feedback on Deregulation
Centre’s request for states to flag pending issues signals a faster reform cycle. Likely to support ease of doing business, spur private investment and benefit manufacturing, logistics, construction and infra.
5. Palm Oil Imports Rise 4.6%
Refiners shifted to cheaper palm oil, easing edible oil inflation. Positive for FMCG margins and reduces pressure on the food CPI basket.
6. Sharp Drop in Russian Crude Imports
India’s Russian crude intake has fallen significantly due to U.S. sanctions. Could temporarily raise import costs and inflation, affecting OMCs and trade balance. Impact may normalise if crude prices stabilise.
7. OECD Maintains India Growth Outlook
FY26 at 6.7% and FY27 at 6.2%. Reflects confidence in India’s macro strength; easing cycle and GST gains seen as supportive. Oil prices remain the key risk.
8. SASCI Scheme Disbursal Update
₹56,826 crore released for over 4,000 projects. Strong state-led capex, especially in UP, Maharashtra and Odisha. Boosts infra, cement, capital goods and employment.
HUL,