Economy and regulatory updates
- India’s gross domestic product (GDP) expanded at a six-quarter high 8.2% in the second quarter of fiscal 2026, compared with 7.8% growth in the first quarter, driven by stronger rural demand, higher government spending and early export shipments.
- India fiscal deficit for April to October, or the first seven months of this fiscal year, was at Rs 8.25 lakh crore, equivalent to 52.6% of annual estimates, widening from the previous year's 46.5%.
- Chief Economic Advisor V Anantha Nageswaran said India needs to build debt capital markets that are as strong and reliable as its banking system if it wants to finance the next phase of growth.
- The HSBC Flash India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, eased to 57.4 in November from 59.2 in October while the flash services PMI rose to 59.5 from 58.9 and the flash composite PMI edged down to 59.9 from 60.4.
- S&P Global retained its growth forecasts for India at 6.5% for fiscal 2026 and 6.7% for fiscal 2027, noting that lower goods and services tax (GST) rates, income tax cuts and interest rate reductions are likely to shift the growth momentum towards consumption rather than investment in the current and next financial year.
- According to Crisil Ratings, non-banking financial companies are facing a tightening funding environment despite broadly healthy balance sheets and a robust credit demand outlook.
- The Ministry of External Affairs announced the initiation of new air freight corridors connecting Kabul with Delhi and Amritsar.
- Prime Minister Narendra Modi asserted that the four new labour codes provide a strong foundation for universal social security and will protect workers’ rights.
- The World Bank approved funding for two new projects in India, which will use digital technology to enhance education quality in Punjab and increase incomes for farmers in Maharashtra.
- The Union Cabinet approved a Rs 7,280-crore incentive scheme to build domestic capacity for rare earth magnets and cut India’s reliance on China.
- The Reserve Bank of India (RBI) and the European Central Bank have agreed to collaborate on linking domestic payments systems.
Indian debt market update
- The interbank call money rate ended higher at 5.50% on November 28 compared with 5.45% on November 21.
- Government bond prices ended higher in the week ended November 28 and the yield on the 10-year benchmark 6.33% 2035 paper closed at 6.54% compared with 6.57% on November 21.
- Bond prices rose owing to dovish RBI commentary, which boosted expectations of a policy rate cut.
- However, gains were capped as profit booking set in and stronger-than-expected GDP data tempered hopes of immediate policy easing.
- In the weekly debt sale held on November 28, 2025, the Reserve Bank of India auctioned 5.91% GS (Government Security) 2028, 6.28% GS 2032, 7.24% GS 2055 and 6.98% GOI SGrB 2054 for a total notified amount of Rs 32,000 crore
Indian debt market indicators
India yield curve shift (%) (W-o-W)*
Indian equity market updates
- Indian equities ended higher this week, supported by growing expectations of interest rate cuts by both the US Federal Reserve and the RBI. However, losses were seen owing to profit booking and caution ahead of the release of key domestic data. The BSE Sensex and Nifty 50 rose 0.56% and 0.52%, respectively.
- Almost all major sectors ended higher with Metal, Bankex and Information Technology (IT) gaining the most. BSE Metal, BSE Bankex and BSE IT rose 1.49%, 1.21% and 1.20%, respectively.
- The domestic market bought Rs 3,994 crores worth of equities on November 28, 2025, compared with buying of Rs 1,758 crores worth of equities on November 21, 2025.
- Foreign institutional investors sold equities worth Rs 1,996 crore on November 27, 2025, compared with selling of Rs 1,262 crores on November 21, 2025.
Indian equity Indices
Global Equity market summary
- US stocks rose during the week, driven by increased odds of a Fed rate cut in December. Dovish comments from Fed officials renewed optimism about the interest rate outlook.
- However, these gains were capped owing to concerns about inflated tech valuations coupled with labour market weakness and stubbornly elevated inflation.
- Britain’s FTSE index rose during the week, led by gains in financials and mining stocks after Finance Minister Rachel Reeves unveiled a large tax-raising budget.
- Rising expectations of a Fed rate cut also supported the market. However, selling in mining and energy stocks capped the gains.
- Asian equities ended higher this week. Japan’s Nikkei index ended higher owing to gains in technology and artificial intelligence-related stocks amid Fed rate cut hopes.
- Investors remained caution ahead of major central bank decisions next month.
- Hong Kong’s Hang Seng Index ended higher during the week on optimism over a possible rate cut by the Fed next month.
- However, few losses were seen owing to concerns about an artificial-intelligence bubble.
- China’s Shanghai Composite Index closed higher this week because of a rally in chip-related stocks following reports that the US was considering letting Nvidia sell H200 chips to China.
- Rising hopes of easing geopolitical uncertainties also elevated the market.
Global equity benchmark indices’ returns
Global Yield
- US treasury prices were up during the week due to dismal economic data.
- US bond prices rose after the latest economic data showed signs of a weaker labor market, with private companies shedding 13,500 jobs per week on average in the last four weeks, more than the 2,500 weekly jobs lost in the prior update.
- It also fell after Consumer confidence fell to 88.7 in November, reaching the lowest level since April, and missed the Dow Jones forecast for 93.2.
- A data center issue at the Chicago Mercantile Exchange (CME) disrupted trading, also caused uncertainty in the market
- The yield on the 10-year benchmark Treasury bond ended at 4.00% on November 26 compared to 4.06% from November 21.
Major global bond yields
Commodities and Currency
- Crude oil prices rose during the week amid easing oversupply woes due to doubts over the success of the ongoing peace talks in Europe.
- Gold prices ended higher this week owing to safe-haven demand amid hopes of a rate cut by the US Federal Reserve (Fed) next month and weakness in the US labour market.
- The rupee closed lower against the US dollar this week, weighed down by foreign fund outflows, higher importer demand and elevated crude oil prices, despite support from RBI intervention.
Commodity prices
Global Economic
- US S&P Global Flash Manufacturing PMI fell to 51.9 in November 2025 compared to 52.5 in October 2025 while the S&P Global Flash Composite PMI rose to 54.8 from 54.6 and the S&P Global Flash Services PMI inched higher to 55 from 54.8.
- US Producer Prices increased 2.7% in September 2025, unchanged from the August 2025.
- US retail sales rose to 4.3% year-over-year in September 2025 compared to 5.0% in October 2025.
- Eurozone HCOB Flash Manufacturing PMI slipped to 49.7 in November 2025, compared to 50 in October 2025, while the HCOB Flash Services PMI rose to 53.1 from 53 and the HCOB Flash Composite PMI fell to 52.4 from 52.5.
- Eurozone Industrial Sentiment indicator fell to -9.3 in November 2025 compared to a revised -8.5 in October 2025 while the services Sentiment rose to 5.7 from 4.2.
- UK S&P Global Flash Manufacturing PMI rose to 50.2 in November 2025, compared to 49.7 in October 2025 while the S&P Global Flash Services PMI fell to 50.5 from 52.3 and the S&P Global Flash- Composite PMI edged down to 50.5 from 52.2.
- UK Retail Sales volumes rose 0.2% year-on-year in October 2025, compared to a 1% gain in September 2025.
- Japan’s industrial production rose 1.5% on year in October 2025 easing from a 3.8% gain in the previous month.
- Japan’s retail sales increased 1.7% year-on-year in October 2025, accelerating from a downwardly revised 0.2% rise in the previous month.
Macro indicators
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