Economy and regulatory updates
- India's infrastructure output remained steady in October 2025, unchanged from year-ago period, following a revised 3.3% increase in September 2025.
- India’s unemployment rate stood at 5.2% in October, unchanged from September.
- India’s merchandise trade deficit widened to a record-high $41.68 billion in October, compared with $32.15 billion in September, driven by an increase in gold and silver imports.
- Prime Minister Narendra Modi released the 21st instalment of the PM-KISAN scheme, which provides Rs 6,000 every year to eligible farmer families.
- External Affairs Minister S. Jaishankar inaugurated two new Indian consulates in Russia, and said their establishment will boost trade, tourism, economic, scientific, technological, academic and cultural ties between the two countries.
- The government has notified the Capital Gains Accounts (Second Amendment) Scheme, 2025, amending the 1988 framework.
- The Ministry of Steel announced a series of measures to simplify steel import procedures, including scrapping the No Objection Certificate (NOC) requirement for non-QCO grades, extending exemption deadlines for select steel products to March 31, 2026, and launching a new simplified registration facility under the Steel Import Monitoring System (SIMS).
- The Reserve Bank of India (RBI) announced a host of relief measures for exporters, which included easing the burden on debt repayments for some impacted sectors and relaxation in the repayment of export credit amid trade tensions with the United States (US) that has imposed 50% tariffs on Indian exports.
- The RBI is stepping up to assist exporters with a key moratorium on loan repayments, designed to give businesses the flexibility they need to adapt to the shifting tides of global commerce and pursue fresh avenues for growth.
- The Securities and Exchange Board of India (SEBI) extended the deadline by a week to November 24 to submit the public comments on a proposal to overhaul mutual fund regulations, introducing better definition of total expense ratio (TER) and revising limits on brokerage charges.
Domestic macroeconomic indicators
Indian debt market update
- The interbank call money rate ended flat at 5.45% on November 21.
- Government bond prices ended lower in the week ended November 21, and the yield on the 10-year benchmark 6.33% 2035 paper closed at 6.57% on November 21, compared with 6.53% on November 14.
- Bond prices fell due to weak demand-supply dynamics and fading rate-cut hopes amid slowing RBI purchases. Bond prices rose further the spot rupee hit a fresh record low.
- However, a further decline was halted due to hopes of inclusion in the Bloomberg Global Aggregate Index.
- In the weekly debt sale held on November 21, the RBI auctioned 6.01% Government Security (GS) 2030 and 7.09% GS 2074 for a total notified amount of Rs 30,000 crore.
Indian debt market indicators
India yield curve shift (%) (W-o-W)*
Indian equity market updates
- Indian equities ended higher this week, supported by improving second-quarter earnings expectations, steady foreign fund inflows, and optimism over additional RBI support for exporters. However, caution was seen due to a global selloff after weak US jobs data. BSE Sensex and Nifty 50 rose 0.79% and 0.61%, respectively.
- Almost all the major sectors ended higher, with information technology (IT), auto and Bankex gaining the most. BSE IT, BSE Auto and BSE Bankex rose 1.30%, 0.91% and 0.75%, respectively.
- The domestic market bought Rs 1,758 crores worth of equities on November 21, 2025, compared with buying of Rs 8,159 crores worth of equities on November 14, 2025.
- Foreign institutional investors bought equities worth Rs 706 crore on November 20, 2025, compared with selling of Rs 4,882 crores on November 14, 2025.
Indian equity Indices
Global Equity market summary
- US stocks declined during the week due to concerns over a December interest rate cut and lofty equity valuations.
- Additionally, US jobs data muddied the labour market outlook, leading to further loses.
- However, some gains were witnessed due to gains in technology stocks and Nvidia's earnings report.
- Britain's FTSE index declined during the week led by a fall in defence and financial stocks amid fading hopes of a Federal Reserve interest rate cut.
- However, some gains were witnessed as concerns about tech valuations eased after US artificial intelligence (AI)-major Nvidia reported better-than-expected earnings.
- Asian equities ended the week negative. Japan's Nikkei index ended lower due to broad selling caused by the escalating tensions between Tokyo and Beijing.
- Moreover, a decline in technology-related stocks, as fresh valuation concerns drove US stocks lower overnight, led to further losses.
- Hong Kong's Hang Seng Index ended lower during the week due to uncertainty over a rate cut by the Federal Reserve and concerns over inflated valuations of AI stocks.
- Additionally, lacklustre US jobs data led to further losses.
- However, some gains were witnessed due to Nvidia's strong results and reports that the government may announce new measures to support the property market.
- China's Shanghai Composite Index closed lower during the week due to profit booking and a fall in technology stocks amid concerns over inflated valuations of AI stocks.
Global equity benchmark indices’ returns
Global Yield
- US treasury prices rose during the week as investors remained cautious in anticipation of release of delayed economic data.
- Bond prices moved higher after the release of the September labour market report, which showed more jobs created than expected, but also a higher unemployment rate. The release of delayed economic data is providing investors with a clearer picture of the US economy, which can lead to more informed investment decisions and higher bond prices.
- The possibility of a rate cut in December, although not guaranteed, could lead to lower treasury yields and higher bond prices if it occurs.
- The divided opinion of Federal Reserve policymakers suggests that they are taking a cautious approach, which could lead to more stable interest rates and higher bond prices.
- The yield on the 10-year benchmark Treasury bond ended at 4.10% on November 20, compared with 4.14% on November 14.
Major global bond yields
Commodities and Currency
- Crude oil prices declined during the week as US pushes for a Russia-Ukraine peace deal and after Russia’s export hub resumed loadings following a two-day suspension.
- Gold prices ended lower this week due to a strong dollar index following the end of the US government shutdown.
- The rupee closed higher against the US dollar this week, supported by softer crude oil prices, modest foreign fund inflows and likely RBI intervention. However, some losses were seen due to global risk-off sentiment and concerns over potential US Federal Reserve rate cuts.
Commodity prices
Other currencies vs the rupee
Global Economic
- As per Federal Reserve’s latest policy minutes policymakers expressed support in late October for further interest rate cuts, though not all committed to making the reduction at their next meeting in December.
- US nonfarm payrolls rose by 119,000 in September 2025, rebounding from a revised 4,000 decline in August.
- US unemployment rate increased to 4.4% in September 2025 from 4.3% in August 2025.
- Eurozone annual inflation rate eased to 2.1% in October 2025, compared to 2.2% in September 2025 while the annual core inflation rate unchanged at 2.4% for the second consecutive month.
- UK annual inflation rate eased to 3.6% in October 2025, compared to 3.8% recorded in each of the previous three months while the annual core inflation rate eased to 3.4% in from 3.5%.
- People’s Bank of China (PBoC) kept key lending rates at record lows for a sixth consecutive month in November with the one-year and five-year LPRs maintained at 3.00% and 3.50%, respectively.
- Japan’s annual inflation rate edged up to 3.0% in October 2025 from 2.9% in September.
- The Japanese economy contracted 1.8% on an annualized basis in Q3 2025, compared to an upwardly revised 2.3% growth in Q2.
Macro indicators
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