Retail exits NSE stocks, buybacks hit ₹25k cr, Sensex down 1k

Individual direct ownership of NSE‑listed companies fell to 9.1% in FY26, the lowest since FY21, amid market volatility and war‑inflated crude prices. Mutual fund stakes rose to 11.4%, lifting total individual holdings to 18.7%, surpassing foreign portfolio investors’ 15.8% share.

Twenty‑two Indian companies have announced share buybacks worth ₹25,000 crore so far in 2026, the strongest level since 2023. Analysts cite favourable tax changes and robust balance sheets as drivers, with Wipro leading at ₹15,000 crore and Bajaj Auto at ₹5,633 crore.

On May 29 the Sensex fell 1,092 points (1.44%) to 74,775, and the Nifty 50 slipped 359 points (1.5%) amid profit‑taking and heightened uncertainty. A downgraded monsoon forecast, a pending US‑Iran ceasefire deal and MSCI index revisions were cited as key triggers.

Bank of America’s India research head says Nifty‑50 earnings growth has fallen from 14% to 8.5% after the West Asia conflict raised commodity costs, inflation and rates. With the equity premium over EM peers still high, market returns are expected to be confined to 8‑9% range.

The Indian rupee rallied 0.7% to close at 95 per dollar, its strongest one‑day gain since April 2. The surge was sparked by Reserve Bank of India dollar‑selling intervention and a drop in crude oil prices after a US‑Iran truce plan. Markets now await the RBI’s June 5 policy decision.

Amazon Now is scaling rapidly in India, processing 450‑500 k orders a day and growing 25% month‑on‑month after a ₹2,800 cr investment. By pairing Prime subscriptions with aggressive dark‑store placement, Amazon aims to close the gap with market leaders Blinkit and Zepto in the fast‑growing quick‑commerce sector.

IndiGo’s parent InterGlobe Aviation reported a Q4 net loss of ₹2,537 cr, reversing a ₹3,067 cr profit a year earlier, while revenue rose modestly 1% to ₹22,438 cr. Higher fuel expenses, softer yields and Middle East disruptions dented margins, though capacity grew 3.4%. The board approved up to $450 m for aircraft and engine purchases.

US Ambassador Sergio Gor told an event at IIT Delhi that the US‑India trade agreement is expected to be finalized within weeks, after recent delegations and high‑value sector growth boosted bilateral trade from $20 bn to $220 bn. He highlighted cooperation on critical minerals and innovation‑driven sectors.

Airtel has launched Priority Postpaid, a 5G‑sliced service that guarantees smoother speeds for postpaid customers while relegating prepaid users, who make up 95% of India’s mobile base, to slower connections. Critics argue this creates a two‑tier internet that breaches net‑neutrality, prompting industry backlash as the model could reshape revenue competition.

India is granting huge subsidies to let Google build a 600‑acre AI data‑centre complex in Visakhapatnam. While the project promises billions in investment, locals warn that the water‑intensive facility could exacerbate the city’s extreme water stress, cutting taps to an hour a day for residents. The clash highlights policy trade‑offs between AI growth and basic resource security.

The Reserve Bank of India will broaden its digital rupee pilots to include new direct‑benefit‑transfer schemes, domestic retail use, and cross‑border transactions. It has signed an MoU with Singapore’s monetary authority and is in talks with the UAE central bank to trial bilateral CBDC payments, while also joining BIS multilateral projects.

India's foreign exchange reserves slipped to $681.38 bn in the week to May 22, a $7.51 bn decline chiefly from falling foreign‑currency assets and a $4.53 bn drop in gold holdings. The RBI said it is monitoring the market and will intervene to curb excessive rupee volatility.

The India‑Oman Comprehensive Economic Partnership Agreement, effective 1 June 2026, grants India 100% duty‑free access to 98% of Oman's tariff lines, unlocking new markets for engineering, pharmaceuticals, agriculture and more. It also strengthens energy security by diversifying supplies and deepening bilateral trade, expected to lift bilateral commerce beyond $10 billion.

Moody's upgraded Reliance Industries to Baa1, placing it two notches above India's sovereign rating. The rating reflects Reliance's diversified, counter‑cyclical businesses, strong international exposure, limited reliance on government revenue, robust cash reserves and a net‑debt‑zero stance, supporting stable earnings.

In April, both public and private banks cut fresh deposit rates by about 30 basis points, bringing the weighted average deposit rate to 5.77%. Meanwhile, fresh loan rates rose modestly, widening the net interest margin gap as banks aim to restore profitability after RBI rate cuts.

The RBI posted a record ₹1.69 lakh crore foreign exchange gain in FY26, a 52% YoY increase, after selling a historic $53.13 billion from its reserves to cushion a 9.5% rupee depreciation. Total foreign‑source income rose 27% to ₹3.28 lakh crore, boosting overall earnings and enabling a record surplus transfer to the government.

India's bank credit rose to Rs 211 lakh crore, outpacing deposits that hit Rs 256 lakh crore. While loans to industrial units fell amid global tensions, gold‑backed personal loans expanded sharply to Rs 4.9 lakh crore, keeping credit growth ahead of deposits.

Crisil projects the average return on assets for Indian banks to fall to 1.15‑1.2% this fiscal, down from 1.3% last year. The dip is driven by a 5‑10 bp drop in treasury income and a similar rise in pre‑emptive provisioning ahead of the new ECL framework, while net interest margins stay around 2.9%.

Brent slid to about $92, a 19% drop in May, the steepest monthly decline since 2020, while WTI hovered near $87. The dip followed a tentative US‑Iran ceasefire extension, prompting hopes for smoother oil flows but leaving markets cautious, with analysts warning further downside if a formal deal stalls.