The variable rate reverse repo auction saw strong demand. Banks chose to deposit funds with the Reserve Bank of India. This happened amidst a decrease in overnight money market rates. The central bank intervened to maintain rates around the policy repo rate. Lower auction size and liquidity expectations drove higher participation. The weighted average call rate also experienced a decline.
Indian equity indices experienced a nearly 1% decline on Friday, marking the fourth consecutive week of losses, influenced by disappointing earnings from major companies and cautious sentiment in Asian markets. The NSE Nifty concluded at 24,837.00, while the BSE Sensex closed at 81,463.09. Investors are also showing concern about the potential impact of the India-US trade deal.
India and the UK have formalized a trade agreement, offering immediate duty-free access to a quarter of UK exports while safeguarding sensitive sectors like dairy and strategic industries. Concessions for other products will be phased in over several years, with specific rules of origin to prevent transshipment.
Indian electronics companies are now eager to collaborate with Chinese firms. This follows the government's approval of Dixon Technologies' joint venture. Epack Durable and others are considering similar partnerships. The move signals a potential easing of restrictions on Chinese investment. This is crucial for India's electronics component manufacturing scheme.
Commonwealth Edison Co. has proposed modifications to tariffs that include higher deposits for data centers, according to Chief Executive Officer Gil Quiniones. He also wants data centers to post collateral in case loads and revenues do not materialize as planned.
