The finance ministry is set to direct banks to cap lending rates at 2% above MCLR for microfinance companies under a new credit guarantee scheme. This initiative aims to boost lending to smaller MFIs struggling with funding due to asset quality stress, with the NCGTC providing the guarantee cover.
Wild oil price swings, triggered by the Iran war, have pushed institutional investors towards exotic hybrid options to navigate cross-market gyrations. Traditional safe havens like bonds and gold have failed to provide protection amid stagflation fears, leading to increased trading in dual binary and contingent options as relationships between assets break down.
New rupee loan spreads widened year-on-year to 3.01% in January as banks maintained firm borrowing costs to protect margins despite central bank rate cuts. Outstanding loan spreads narrowed due to faster asset-side adjustments and a shift towards lower-yielding segments. Transmission of rate cuts remains uneven, impacting bank margins.
Markets experienced a sharp decline, with the Nifty losing 1,299.35 points (-5.31%) as selling pressure intensified. The index breached its 100-week moving average, signaling a technically vulnerable phase and a downside bias. Elevated volatility and geopolitical tensions are expected to keep markets cautious.
Amidst market volatility, investors can leverage tax harvesting to mitigate losses and reduce tax liabilities. Tax loss harvesting involves selling losing stocks to offset future gains, while tax gain harvesting allows for partial selling to stay within tax exemption limits. These strategies offer opportunities to manage capital gains tax effectively.
Oil prices have surged past $100 per barrel amid escalating Iran–Israel tensions and fears of a prolonged closure of the Strait of Hormuz, a key global energy chokepoint. Analysts warn crude could climb to $150 if disruptions persist, raising inflation risks and pressuring Indian equities, which have already seen sharp declines amid foreign outflows, rupee weakness and energy supply concerns.
Analyst forecasts reveal significant upside potential for select Nifty500 stocks, with eight identified for their consistent quarterly growth in revenue and profit. These companies, backed by multiple analyst ratings, are projected to deliver substantial returns of 65% to nearly 75% over the next year, presenting compelling investment opportunities.
The prospect of a prolonged Iran war and surging oil prices is forcing investors to reassess risks across sectors from airlines and shipping to chipmakers and clothing suppliers. Global stocks have fallen 5.5% since the conflict began, while fears of supply disruptions, rising inflation and delayed US rate cuts are reshaping market bets.
The combined market valuation of the top-10 domestic firms eroded sharply by Rs 4.48 lakh crore last week, in tandem with a steep decline in equities, with banking majors State Bank of India and HDFC Bank taking the biggest hit.
US Federal Reserve policymakers are expected to leave interest rates unchanged at their meeting next week, as the US-Israel war on Iran sends shock waves through markets and recent economic data has begun to show weakness. And recent data ahead of the Fed meeting is not encouraging, with US GDP growth revised sharply lower in the final months of 2025.
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