Economy and regulatory updates
- The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) voted unanimously to keep the repo rate unchanged at 5.25%.
- Accordingly, the standing deposit facility rate stays pat at 5.00%, while the marginal standing facility rate and the bank rate are unchanged at 5.50%. The MPC decided to maintain a neutral stance as, while headline inflation remains contained below the RBI target, risks have increased due to energy prices and weather-related uncertainties.
- The RBI projected India’s real gross domestic product (GDP) growth for this fiscal at 6.9%, with 6.8%, 6.7%, 7.0% and 7.2% for quarters one, two, three and four, respectively.
- Growth continues to be supported by strong domestic demand, resilient services, rising capacity utilisation, healthy financial-sector balance sheets and supportive policy measures. Elevated energy prices and supply-chain disruptions from the West Asia conflict remain key downside risks.
- The RBI revised its inflation projection for this fiscal to 4.6%, with quarterly Consumer Price Index (CPI) inflation projected at 4.0% for the first quarter, 4.4% for second, 5.2% for third and 4.7% for fourth.
- Core inflation is forecast at 4.4%, while underlying inflation pressures remain contained, especially excluding precious metals (2.1% in recent months).
- The RBI noted that inflation risks are tilted to the upside due to elevated global energy prices and the possibility of El Niño impacting food prices.
- The Cabinet Committee on Economic Affairs (CCEA) approved an investment of Rs 40,000 crore to set up two hydropower plants in Arunachal Pradesh.
- The Union Cabinet approved a 10-21% increase in per-kilogram subsidy rates for non-urea fertilisers in kharif 2026 under the Nutrient-based Subsidy (NBS) regime as compared with kharif 2025, with fertiliser prices rising sharply due to the West Asia crisis.
- The RBI will remove the Non-Performing Asset provisioning condition for including quarterly profits in capital calculations.
- The central bank will dispense with IFR requirements for commercial banks and streamline norms for others.
- The RBI will rationalise and simplify the list of items required to be placed before bank Boards.
- The RBI will remove the due diligence requirement for Micro, Small, and Medium Enterprises (MSMEs) to simplify onboarding on Trade Receivables Discounting System (TReDS) platforms
Indian debt market update
- The interbank call money rate ended lower at 4.75% in the week ended April 10, compared with 5.00% in the week ended April 2.
- Government bond prices rose marginally in the week ended April 10 and the yield on the 10-year benchmark 6.48% Government Security (GS) 2035 paper closed at 6.92% on April 10, compared with 7.10% on April 2.
- Bond prices rose following a framework for ending the five-week conflict in West Asia. They rose further as a pause in the conflict cooled oil prices and a neutral central bank policy aided sentiment.
- In the weekly debt sale held on April 10, the RBI auctioned 6.48% GS 2035 for a total notified amount of Rs 34,000 crore.
Source: Crisil Fixed Income Database, RBI *Weighted Average Yield ^Data as of 3rd Apr 2026 vs 27th Marc 2026 vs 27th Feb 2026 respectively
Souce: Crisil Fixed Income Database; *Weighted Average Yield
Indian equity market updates
- Indian equity ended higher for the week, supported by easing geopolitical uncertainties and softer crude oil prices. However, renewed uncertainty in West Asia caused a brief mid-week setback. The BSE Sensex and Nifty rose 5.77% and 5.89%, respectively.
- All the sectors ended higher with realty, auto and consumer durables (CD) gaining the most. BSE Realty, BSE Auto and BSE CD rose 12.86%, 10.30% and 9.16%, respectively.
- The domestic market bought around Rs 410 crore worth of equities on April 10 compared with buying of Rs 7,208 crore worth of equities on April 2.
- Foreign institutional investors sold equities worth Rs 1,711 crore on April 9 compared with selling of Rs 9,931 crore on April 2, 2026.
- Domestic mutual funds were net buyers, buying equities worth Rs 20,198 crore on a month-to-date basis on April 7, 2026.
Source: BSE, NSE
Source: SEBI, NSE
Global Equity market summary
- US stocks ended higher this week, supported by reduced geopolitical uncertainties in West Asia. The Nasdaq benefited from strong performance in technology shares.
- However, some losses were seen due to a decline in industrial stocks. Investor concerns over oil supply disruptions and inflation eased, helping drive markets higher overall.
- Britain's FTSE index ended the week higher, but was volatile driven by shifting West Asia developments.
- Shares slipped as investors assessed escalating geopolitical uncertainties in West Asia linked to the Strait of Hormuz, then rebounded on a pause in the conflict and falling oil prices, and eased again amid renewed geopolitical uncertainties.
- Asian equities closed higher this week. Japan's Nikkei index ended higher, as a pause in the West Asia conflict eased economic slowdown fears and strong corporate earnings boosted optimism.
- Despite mixed sentiments and renewed concerns over escalation of the West Asia conflict, losses were limited on hopes of de-escalation.
- Hong Kong's Hang Seng Index ended higher this week, driven by gains in artificial intelligence (AI)-linked stocks, a pause in the West Asia conflict and lower crude oil prices.
- It was also boosted by China’s inflation data showing an end to industrial deflation, despite some losses due to renewed West Asia uncertainties.
- China's Shanghai Composite Index closed higher due to increased risk appetite after a pause in the West Asia conflict. However, it had previously seen losses due to the West Asia conflict and high oil prices.
- The index also hit a three-week high, after the inflation rose for the first time in more than three years in March.
Source: Websites of respective stock exchanges; *Data as on apr 9
Global Yield
- US Treasury prices rose during the week as softer macroeconomic signals and renewed safe-haven demand outweighed earlier inflation concerns.
- Gains in Treasury prices were driven by emerging signs of labour market moderation, with initial jobless claims rising to 220,000–225,000 in early April 2026, indicating some cooling from previously tight conditions. Additionally, ISM services PMI for March 2026 showed a slight slowdown, pointing to easing momentum in economic activity.
- On the inflation front, while price pressures remain elevated, market expectations ahead of the March 2026 CPI release suggested a gradual moderation, which supported bond prices and pulled yields lower. Further, safe-haven demand increased amid the conflict in West Asia during early April 2026, leading to incremental buying in US Treasuries.
- However, the decline in yield was partially capped by an intermittent spike in crude oil prices and persistent concerns around US fiscal deficits and Treasury supply.
- The yield on the 10-year benchmark Treasury bond ended at 4.29% on April 9, compared with 4.35% on April 03.
Source: Financial Websites * Data as on Apr 9
Commodities and Currency
- Crude oil prices rose during the week on the NYMEX to $ 97.87 per barrel on the NYMEX on week on 9, April 2026 from $ 111.54 on 2, April, 2026 after an easing of the conflict in West Asia sparked hopes of a reopened Strait of Hormuz, alleviating supply concerns.
- Gold prices rose this week Rs 1,50,327 per 10 grams in week on 10, April 2026 from Rs 1,46,608 per 10 grams in week on 2, April 2026 supported by softer crude oil prices and easing geopolitical concerns.
- Silver prices rose to Rs 2,39,934 per kg on week on 10, April 2026 from Rs 2,27,813 per kg on week on 2, April 2026, buoyed by a pickup in industrial demand and safe-haven buying.
- The rupee closed higher at Rs 92.65 against the US dollar this week, as the RBI’s tighter controls curbed speculative pressure, oil prices softened and concerns over the West Asia conflict eased
*Data as on Apr 9, 2026 Source: Respective commodity exchanges, ibjarates.com
Source: Financial websites
Global Economic
- US ISM Services PMI fell to 54 in March 2026 compared to 56.1 in February 2026.
- The US economy expanded at an annualized rate of 0.5% in Q4 2025, compared to 4.4% in Q3 2025.
- US PCE price index rose 2.8% year-over-year in February 2026, the same pace as in the previous month.
- Eurozone S&P Global Services PMI eased to 50.2 in March 2026 compared to 51.9 in February 2026 while the S&P Global Composite PMI edged up to 50.7 from 51.9.
- China’s annual inflation eased to 1.0% in March 2026 from February 2026 over three-year high of 1.3%.
- China’s producer prices rose 0.5% year-on-year in March 2026, reversing a 0.9% decline in February 2026.
- Japan S&P Global Composite PMI edged down to 53.0 in March 2026 compared to 53.9 in February 2026 while the S&P Global Services PMI eased to 53.4 from 53.8.
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