Business

Indian Stock Market Evaluates Two Major Policy Initiatives to Stimulate Economic Growth

Published

1 year ago

February 9, 2025

This week, the stock market experienced two significant policy announcements that could shape India’s economic future — the Union Budget 2025, which introduced tax reductions to stimulate consumption and investment, and the RBI’s decision to cut interest rates by 25 basis points, indicating a pivot towards monetary easing, experts noted on Saturday.

These initiatives are designed to bolster economic growth while upholding fiscal discipline. On the market front, the Nifty 50 rose by 1%, the Nifty Midcap increased by 0.9%, and the Smallcap index gained 0.7%.

The Indian stock market closed on a low note on Friday, as investors continued to evaluate the RBI’s Monetary Policy Committee (MPC) decision to reduce the repo rate by 25 basis points. However, the central bank retained a neutral policy stance, lowering the repo rate from 6.5% to 6.25%.

The Sensex ended the day at 77,860, down by 198 points, while the Nifty index fluctuated between 23,694 and 23,443, ultimately closing at 23,560, reflecting a decline of 43 points.

Krishna Appala from Capitalmind Research stated that the Budget presented essential tax relief, resulting in greater disposable income for consumers. Those earning over Rs 24 lakh annually will now save an additional Rs 1.1 lakh per year, and individuals earning up to Rs 12 lakh per year will effectively pay no income tax.

“With an estimated Rs 1 lakh crore expected to flow back into the economy from these tax cuts, this move is set to promote higher discretionary spending and savings,” Appala added.

Despite these tax reductions, the government remains committed to fiscal consolidation, setting the FY26 fiscal deficit target at 5.3% of GDP, down from 5.8% in FY25.

In conjunction with the fiscal stimulus, the RBI’s decision to lower the repo rate to 6.25% signals the start of a potential rate-cut cycle after maintaining unchanged policy rates for over two years. This follows a 50 basis points cut in the Cash Reserve Ratio (CRR) in December 2024 and a Rs 60,000 crore bond purchase program aimed at enhancing liquidity in the banking system.

Hrishikesh Yedve from Asit C Mehta Investment Intermediates Ltd (a Pantomath Group company) observed that the index formed a green candle on the weekly chart, confirming last week’s bullish engulfing pattern.

“On the downside, immediate support for the Bank Nifty is around 49,650, while the resistance level is set at 50,600. Traders should monitor these levels closely for potential opportunities. Given the weekly formation, adopting a buy-on-dips strategy in Bank Nifty would be advisable,” he remarked.

Business

Chicken and Egg Prices Rise Shocked Non-Veg Lovers

Published

4 days ago

July 15, 2026

Namma Kudla

Business: Non-vegetarian food lovers are facing a big shock as chicken and egg prices have increased sharply over the past week.

The price of chicken has gone up significantly, making it expensive for many families. Fresh fish is also unavailable in coastal areas because fishing activities have been suspended.

The main reason for the price hike is the slow growth of chickens, which has reduced supply. At the same time, more chicken is being supplied to other states, resulting in lower availability in the local market.

Egg prices have also increased. An egg that cost Rs.7 to Rs.7.50 three days ago is now priced at ₹9.

Similarly, the price of chicken has risen from Rs.300 per kg to Rs.360 per kg.

Traders say prices may come down once the supply improves. Until then, the increase is expected to put an extra burden on consumers.

Business

India’s First LPG Efficiency Policy amid Iran War

Published

5 days ago

July 14, 2026

Namma Kudla

Business: As the Iran conflict continues to affect global energy markets, Pune Gas has urged the Central Government to introduce India’s first LPG Efficiency Policy.

The company submitted its proposal to the Ministry of Petroleum and Natural Gas, stressing the need for better and more efficient use of LPG across the country.

Global supply disruptions have pushed commercial LPG cylinder prices to around Rs.3,100 from nearly Rs.1,884 earlier this year.

The price rise has increased costs for restaurants, hotels, hospitals, food processing units, MSMEs and other industries that depend on LPG.

Pune Gas said India has maintained a stable LPG supply, but improving fuel efficiency is now equally important.

The proposal recommends promoting the use of 47.5-kg LOT cylinders wherever suitable to reduce wastage, improve safety and prevent pilferage.

It also seeks awareness campaigns, standard practices and policy support to encourage efficient LPG systems.

Pune Gas CEO Jesal Sampat said India should focus not only on increasing LPG supply but also on using the available fuel more efficiently.

The company also showcased its indigenous LPG management system, LPGenius, to improve safety, efficiency and cost savings.

Pune Gas has offered to support the government and oil marketing companies with field data, pilot projects and implementation assistance.

Business

US-Iran Conflict Pushes Global Crude Oil Prices Up by Over 4%

Published

6 days ago

July 13, 2026

Namma Kudla

London: Global crude oil prices surged by more than 4% after the United States and Iran intensified missile and air strikes against each other.

The rise in oil prices is mainly due to growing concerns over the security of the Strait of Hormuz. It is one of the world’s most important routes for global oil shipments.

During Monday morning trading, Brent crude oil rose by 4.28% to $79.26 per barrel. West Texas Intermediate (WTI) crude oil increased by 4.37% to $74.53 per barrel.

Iran expanded its military attacks over the weekend to include Qatar and the United Arab Emirates (UAE). In response, the United States launched another round of air strikes on Iranian military bases.

Iran also announced the closure of the Strait of Hormuz after an attack on a commercial vessel that it claimed had violated regulations. According to ship-tracking data from Kpler, only six ships passed through the strait on Sunday. This is the lowest number recorded in the past five weeks.

Last month, the United States and Iran had reached a temporary agreement to keep the Strait of Hormuz open. However, the latest attacks have ended those efforts and increased tensions in the region.

Iran’s Foreign Ministry strongly condemned the US strikes. It said the attacks were a clear violation of international law and the United Nations Charter.

Iran also warned that any country allowing the United States to use its land or military bases for operations against Iran would be treated as a hostile nation. It said such countries could face military action.