Economy

Forex reserves post record $18.34 billion weekly fall as RBI supports rupee

• Reserves fell $18.34 billion to $747.56 billion, the biggest weekly decline on record
• Moneycontrol reports reserves at $757.46 billion; other reports give $747.56 billion
• Rupee pressure and reserve drawdown matter for banks, importers and oil companies

Inflation eats away at wages, posing risk to consumer spending

UPI volume rises 27% to touch 145 billion in first half of FY27

• UPI volume rose 27% to 145 billion in the first half of FY27
• Volume was 114 billion in April-September of the previous financial year
• Rising digital payments activity puts Indian fintech and payment companies in focus

India’s housing construction pipeline nearly doubles to $430 billion in 2025

• Housing construction value rose from $235 billion in 2019 to $430 billion in 2025
• The report attributes the increase to strong post-pandemic demand
• A larger housing pipeline supports demand for Indian cement, building materials and real-estate companies

Datanomics: Services cushion shrinks as trade deficit pushes CAD deeper

• Q1FY27 current account deficit reversed the surplus seen in Q4FY26
• A deeper CAD can pressure the rupee and raise risks for import-dependent Indian companies

Don't blame El Niño alone

• This year's southwest monsoon ended with a 13% deficit over the long-period average
• A weaker monsoon raises risks for Indian agriculture and rural-demand-linked companies

RBI Rate Hike Ahead? SBI Research Flags Inflation, Rupee Risks For October MPC

• SBI Research expects the RBI to begin raising rates in October
• It cites inflation, rupee weakness, global risks and tighter liquidity
• Higher-rate expectations may weigh on Indian borrowers and rate-sensitive stocks

Weakest monsoon since 2015 prompts ICRA to cut FY27 farm growth forecast

• The 2026 southwest monsoon delivered 87% of the long-period average, the lowest rainfall since 2015
• Weaker farm growth may weigh on Indian agricultural input and rural-consumption companies

SBI economists expect RBI to raise repo rate 25 bps to 5.50%

• The MPC meets October 5-7 to decide on interest rates
• Economists cite rising inflation and global concerns behind the expected hike
• A rate hike would lift borrowing costs for Indian banks, autos and other rate-sensitive sectors

US adds 29,000 jobs in September as unemployment rises to 4.2%

• Hiring fell from a revised 133,000 in August to 29,000 in September
• Unemployment rose to 4.2% from 4.1% in August
• US demand signals matter to Indian IT services companies reliant on American clients

Falling wages, soaring energy prices and inflation: It’s beginning to look a lot like the 1970s

• The article compares current falling wages, rising energy prices and inflation with the 1970s
• It asks whether investors should return to the financial playbook used during that decade

India Forex Reserves Log Record Weekly Drop on Rupee Defense