The Ministry of Commerce and Industry is set to release an updated Index of Core Industries (ICI) on July 20. This revised series will feature a new base year of 2022-23, replacing the existing 2011-12 base year, and will include recalibrated industries and weightages. The weights for the ICI (2022-23) series have been derived from the weights of the Index of Industrial Production (IIP) 2022-23 series, as per established methodology. The release will also include provisional ICI data for June 2026 and back series data from April 2023 to May 2026.
- The Index of Core Industries (ICI) is being updated with a new base year.
- The new base year for the ICI will be 2022-23, replacing the 2011-12 series.
- The update includes recalibrated industries and their respective weightages.
SEBI has issued a warning to regulated entities and listed firms about a new fraud known as the 'Boss Scam'. In this scam, fraudsters impersonate chief executives or senior officials, using communication platforms like email, WhatsApp, or Microsoft Teams. They direct subordinates or counterparts in finance teams to transfer funds to the fraudsters. SEBI's caution aims to prevent financial losses and protect the integrity of financial operations within these entities. The advisory underscores the importance of verifying instructions, especially those involving fund transfers, to avoid falling victim to such sophisticated social engineering attacks.
- SEBI has issued a warning about the 'Boss Scam' targeting regulated entities and listed firms.
- Fraudsters impersonate senior officials to trick finance teams into transferring funds.
- Communication platforms like email, WhatsApp, and Microsoft Teams are used in the scam.
The Indian rupee has been sharply depreciating against the U.S. dollar, crossing 96 in May this year. This decline is primarily attributed to India's persistent merchandise trade deficit, significant Foreign Portfolio Investment (FPI) outflows driven by global geopolitical tensions and higher U.S. interest rates. A falling rupee increases import costs, particularly for oil, and impacts the overall economy. The Reserve Bank of India (RBI) intervenes by selling dollars from its forex reserves to stabilize the rupee, but ongoing global uncertainties pose severe challenges. The article emphasizes the need to regulate speculative capital outflows and reduce dependence on oil imports to strengthen the rupee.
- The Indian rupee has significantly depreciated against the U.S. dollar, primarily due to persistent merchandise trade deficits and FPI outflows.
- FPI outflows are driven by global geopolitical tensions and higher interest rates in the U.S., leading to a reduced demand for the rupee.
- A falling rupee increases the cost of imports, especially oil, negatively impacting the Indian economy.
The Indian rupee depreciated by 16 paise to close at a fresh lifetime low of 96.86 against the U.S. dollar. This fall was primarily driven by elevated global crude prices and inflation worries stemming from the West Asia crisis. The rupee opened at 96.89, touched a record low of 96.95, and settled at 96.86. The previous session saw a 50 paise tumble. Factors contributing to the rupee's weakness include a strong dollar and surging U.S. treasury yields, with 30-year yields rising to a two-decade high and 10-year yields to a 16-month high, leading to global market sell-offs.
- The Indian rupee hit a fresh lifetime low of 96.86 against the U.S. dollar.
- Elevated global crude prices and the West Asia crisis are stoking inflation worries, contributing to the depreciation.
- A strong U.S. dollar and surging U.S. treasury yields are also major factors.
Foreign Portfolio Investors (FPIs) have significantly reduced their stake in Indian equities, reaching a nearly 14-year low of 14.7% (down from 19.9% a decade ago). This decline is attributed to sustained foreign selling, with FPIs being net sellers in four of the five trading sessions during the week ended May 8, resulting in total equity outflows of ₹14,207.20 crore. In contrast, Domestic Institutional Investors (DIIs) have increased their holdings to 18.9%, surpassing FPIs for the first time since December 2024. Analysts suggest India's underperformance in attracting foreign flows is partly structural, indicating FIIs do not find India as attractive from an allocation perspective compared to other emerging markets.
- FPIs' ownership in Indian equities has fallen to a 14-year low of 14.7%.
- Domestic Institutional Investors (DIIs) now hold 18.9% of Indian equities, surpassing FPIs.
- FPIs were net sellers for most of the week, leading to significant equity outflows.
Budget 2026 introduces shifts to deepen India's corporate bond market, aiming to reduce the burden on commercial banks for long-term infrastructure financing. Currently, Indian banks carry 60-65% of all non-financial corporate debt, creating a maturity mismatch as they use short-term deposits to fund long-term projects. The budget proposes market-making frameworks, total-return swaps, and an Infrastructure Risk Guarantee Fund. By expanding the bond market, the government hopes to distribute long-term credit risk across institutional investors, making the financial system more resilient to shocks and freeing up bank credit for small and medium enterprises.
- India's corporate bond market is less than 15% of GDP, significantly lower than the US (80%) or China (30%).
- Banks face 'maturity transformation' risks by funding 15-20 year infrastructure projects with short-term deposits.
- The government has injected over ₹3.2 lakh crore into public sector banks since 2017 to manage bad loans and stabilize the system.
The government’s updated ‘Urban Challenge Fund’ aims to make Urban Local Bodies (ULBs) more self-reliant by encouraging market-linked infrastructure development. The Centre will cover 25% of project costs if cities raise 50% through bonds, loans, or Public-Private Partnerships (PPPs). However, many Indian cities lack the administrative capacity and credible accounting systems to borrow effectively. There are concerns that shifting focus to monetizable assets might sideline essential services for weaker sections. The article emphasizes that fixing the political economy of local taxes and ensuring minimum service guarantees are prerequisites for successful fiscal devolution and sustainable urban growth.
- The Urban Challenge Fund promotes 'market-linked, reform-driven, and outcome-oriented' urban infrastructure development.
- ULBs struggle with chronic underutilization of funds in schemes like AMRUT, Swachh Bharat, and Smart Cities Mission.
- Fiscal powers have not been properly devolved to ULBs, making them heavily dependent on State-level transfers and grants.
ICICI Bank has significantly increased the minimum average monthly balance requirement for new savings accounts to ₹50,000, a fivefold jump from the previous ₹10,000. This change applies to new accounts opened from August 1. The move aims to attract high-value customers and potentially reduce operational costs associated with smaller accounts. While it might deter some potential customers, it aligns with the bank's strategy to optimize its customer base and improve profitability.
- ICICI Bank hiked the minimum average monthly balance for new savings accounts to ₹50,000.
- This is a fivefold increase from the previous ₹10,000.
- The change applies to new accounts opened from August 1.