Inflation

The dollar index, which measures the greenback against a basket of currencies, rose 0.21% to 99.12 and was on pace for its biggest daily gain since August 6, with the euro down 0.16% at $1.1655.

Disaggregated figures for the top five categories showed month-on-month volatility.

Fuel and power inflation slowed sharply in July, offsetting higher inflation in primary articles and manufactured products, while core WPI rose to 8.2 per cent

WPI Food Index inflation rose to 6.65% in July from 6.14% in June, while fuel and power inflation eased to 20.05% from 27.41%

India's retail inflation rose for a second straight month above the RBI's 4% target in July, but remained within the central bank's 2-6% tolerance band.

While several firms have responded with calibrated price increases to protect margins, many signalled that further price escalations could follow

China's ​leaders, confronting a two-speed ​economy of strong factory output and exports but weak ​domestic demand, have pledged to bolster growth by accelerating fiscal spending

From a broader perspective, we continue to see value in areas like software where valuations remain reasonable relative to long-term growth potential, says Rajat Chandak.

Strong growth, above-target inflation projections and near-zero real interest rates suggest the RBI's dovish stance may not last, raising the prospect of higher rates ahead

RBI Governor Sanjay Malhotra said policy will remain guided by headline inflation and evolving growth dynamics, while reaffirming the central bank's data-dependent approach

The RBI's decision to hold rates reflects easing inflation risks for now, but rising price pressures could warrant policy tightening in the coming months

The RBI is more likely to use temporary liquidity absorption tools than tighten its policy stance or rates ahead, while system liquidity should improve as government spending accelerates.

Any further policy tightening is likely to remain contingent on a sustained rise in energy prices or evidence of broader, demand-driven inflationary pressures.

The balance of risk improved as downside risk to growth declined along with upside risk to inflation, according to Gaura Sengupta, chief economist at IDFC First Bank

Despite markets continuing to price in policy rate hikes over the next 6-12 months, the softer-than-expected tone of the policy has supported bond markets, said Deepak Agrawal, Kotak Mahindra AMC.

The increase in wholesale price inflation in June to 9.87 per cent was largely driven by price pressures in items that are more sensitive to global commodity and energy costs, Parliament was informed on Monday. Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha that the government has been actively undertaking a series of measures to control inflation and mitigate its impact on consumers. These measures include augmenting buffer stocks for essential food items, strategically selling procured grains in the open market, and calibrating trade policies. As a result of the government's measures, the retail or Consumer Price Index (CPI)-based inflation rate has been below the 4 per cent target over the last two quarters -- 3.1 per cent (January-March of FY26) and 3.9 per cent (April-June FY'27). On a year-on-year basis, wholesale price index (WPI) based inflation increased from 9.68 per cent in May to 9.87 per cent in June. "The rise in WPI inflation is largely driven

Most economists expect stance to remain 'neutral'

The liquor maker said premium demand remains healthy despite inflationary pressures and AI-driven employment uncertainty affecting sentiment in some consumer segments

The World Bank warned that a prolonged US-Iran conflict could slow global growth to 1.3% in 2026, while fuelling inflation, higher interest rates and debt pressures

Inflation is back above the RBI's target. The monsoon remains uneven. China's economy is slowing, while India's AI-driven data centre ecosystem is expanding rapidly. An Abakkus Mutual Fund.