Category: Beyond

Categories
Beyond

RBI offers 1.5% FX swaps to boost dollar inflows

The Reserve Bank of India (RBI) has introduced a discounted foreign exchange (FX) swap facility at a rate of 1.5%, a move aimed at attracting overseas capital inflows and strengthening the country’s external financial position.

Under the new framework, the RBI will absorb the foreign exchange risk for participating investors, making it cheaper and more attractive for global funds to bring money into India. The initiative is designed to encourage inflows into government securities and other financial assets at a time when global markets remain volatile and capital flows are increasingly sensitive to interest rate expectations.

Market participants estimate the measure could potentially attract up to $50 billion in additional foreign inflows over time. By reducing hedging costs, the RBI is effectively lowering one of the key barriers faced by overseas investors when investing in Indian assets.

Foreign investors typically hedge currency exposure to protect themselves from exchange-rate fluctuations. However, hedging costs can significantly reduce investment returns. The RBI’s discounted swap arrangement addresses this concern by providing a lower-cost mechanism for managing currency risk.

The announcement comes amid a relatively favourable macroeconomic environment marked by moderating inflation, resilient economic growth and expectations of continued policy support from the central bank. Lower crude oil prices have also improved India’s external outlook by easing pressure on the country’s import bill.

Financial markets responded positively to the development. Bond yields eased as investors anticipated stronger foreign participation in debt markets, while sentiment towards the rupee improved on expectations of increased dollar inflows.

Analysts said the move reflects the central bank’s efforts to strengthen India’s foreign exchange reserves, support the rupee and improve liquidity in domestic financial markets. The measure also complements recent policy steps aimed at enhancing India’s attractiveness as an investment destination.

Also Read: Sensex up 350 points, Nifty tops 23,100 on bank rally

Categories
Beyond

US labels BYD, Alibaba, Baidu as Chinese military firms

The United States has added several major Chinese companies, including BYD, Alibaba Group and Baidu, to its list of firms allegedly linked to China’s military, marking a fresh escalation in the ongoing strategic and technology rivalry between the world’s two largest economies.

The designation was made by the US Department of Defense, which maintains a list of companies it believes have connections to the Chinese military. Inclusion on the list does not automatically trigger sanctions or immediate restrictions, but it can discourage US investment and increase regulatory scrutiny of the affected companies.

US officials said the move reflects concerns about the relationship between China’s military establishment and large private-sector companies operating in strategically important industries such as artificial intelligence, advanced technology, data services, electric vehicles and communications.

The latest additions include some of China’s most prominent corporations. BYD is one of the world’s leading electric vehicle manufacturers, while Alibaba and Baidu are major players in e-commerce, cloud computing, artificial intelligence and digital services.

The companies have denied any military links and rejected the Pentagon’s characterisation. They argued that they are commercial enterprises operating independently and in compliance with applicable laws and regulations. Some firms indicated they would review legal options and engage with US authorities regarding the designation.

China strongly criticised the decision, accusing Washington of politicising trade and technology issues and attempting to suppress Chinese companies under the guise of national security concerns. Beijing said such actions undermine fair competition and disrupt global business operations.

The development comes amid continuing tensions between the United States and China over technology leadership, trade policies, semiconductor restrictions and national security concerns. In recent years, Washington has imposed a range of measures targeting Chinese technology firms, while Beijing has responded with its own regulatory and economic actions.

Categories
Beyond

Gold down at ₹1.52 lakh, Silver slips to ₹2.60 lakh

Gold and silver prices edged lower in the domestic market on Tuesday as weakness in international bullion prices weighed on sentiment. According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold declined by ₹10 to ₹1,51,680 per 10 grams, while silver fell by ₹100 to ₹2,59,900 per kilogram.

The decline comes after precious metals witnessed a strong rally in recent sessions amid geopolitical uncertainties and expectations surrounding interest rate moves by major central banks. However, easing safe-haven demand and a firmer US dollar prompted some profit-booking in global markets, leading to a mild correction in prices.

In major Indian cities, retail gold rates remained largely stable despite the marginal fall in benchmark prices. In Delhi, 24-carat gold was quoted at around ₹99,100 per 10 grams, while 22-carat gold traded near ₹90,850. Similar price levels were seen in Mumbai, Kolkata, Chennai and Bengaluru, with minor variations due to local taxes and transportation costs.

Silver prices also remained under pressure across key markets. Analysts said industrial demand expectations continue to support the metal in the long term, but short-term movements are likely to be influenced by global economic indicators and currency fluctuations.

Market participants are closely watching upcoming US inflation and employment data for clues on the future path of interest rates. Any indication of delayed rate cuts by the US Federal Reserve could strengthen the dollar and limit gains in precious metals. Conversely, signs of economic weakness could revive demand for safe-haven assets such as gold and silver.

Despite the day’s decline, analysts remain constructive on gold’s medium-term outlook, citing continued central bank purchases, geopolitical risks and uncertainty over global economic growth. Demand from the domestic jewellery sector is also expected to remain supportive ahead of the upcoming festive and wedding seasons.

Also Read: Sensex trades flat, Nifty tops 23,100

Categories
Beyond

CBI raids officials in ₹661 cr bank fraud case

The Central Bureau of Investigation (CBI) has intensified its investigation into an alleged ₹661-crore fraud involving the diversion of government funds through IDFC First Bank and AU Small Finance Bank. As part of the probe, the agency conducted searches at six locations across Chandigarh, Panchkula and the Delhi-NCR region. The raids targeted premises linked to senior Haryana cadre officers, including IAS and IFS officials, as well as a Noida-based consultancy firm and its director.

According to investigators, funds belonging to various departments of the Haryana government and the Chandigarh Administration were allegedly diverted through a network involving bank officials, public servants and private entities. The CBI suspects that some officials received undue benefits for facilitating transactions and overlooking irregularities that enabled the movement of public money. The agency is examining whether there was a larger nexus between government officers and banking personnel.

During the searches, investigators reportedly recovered documents, digital records and financial information that could help trace the flow of funds. The CBI is also looking into a suspected benami property worth nearly ₹20 crore that is believed to be linked to a senior public servant under scrutiny in the case.

The fraud case has already led to multiple arrests and legal action. Earlier investigations resulted in charges being filed against bank officials, government employees and private individuals. The Enforcement Directorate (ED) is conducting a parallel money-laundering probe and has arrested businessman Vikram Wadhwa in connection with the case.

The alleged scam first came to light after authorities detected irregular transactions involving government deposits maintained with the banks. Subsequent investigations suggested that funds were moved through unauthorized channels and allegedly misappropriated over a period of time.

Also Read: Crude oil climbs 4%, extending weekly gains

Categories
Beyond

Crude oil climbs 4%, extending weekly gains

Global oil prices jumped sharply after escalating tensions in the Middle East raised concerns about potential disruptions to crude supplies from one of the world’s most important energy-producing regions.

Brent crude, the international benchmark, rose more than 4 per cent during trading, while US West Texas Intermediate (WTI) crude also posted strong gains. The surge followed reports of Israeli military strikes targeting sites in Iran and Lebanon, heightening fears of a broader regional conflict.

Market participants reacted swiftly to the developments, with traders worried that any escalation could affect oil production, transportation routes or exports from the region. The Middle East accounts for a significant share of global crude oil supply, making geopolitical tensions a key factor influencing energy markets.

Analysts said investors rushed to factor in a potential “risk premium” on oil prices as uncertainty increased. Even though there has been no immediate disruption to oil shipments, concerns about future supply constraints were enough to push prices higher.

The latest rise comes after weeks of volatility in global energy markets, driven by a combination of geopolitical risks, production decisions by major oil-producing countries and concerns about global economic growth. Market observers noted that any prolonged conflict could have a wider impact on energy costs worldwide.

Higher crude oil prices often translate into increased fuel and transportation costs, which can affect businesses and consumers alike. Countries that rely heavily on imported crude, including India, closely monitor such developments because sustained price increases can influence inflation and trade balances.

Energy experts said markets will remain focused on developments in the Middle East in the coming days. Any signs of further escalation could lead to additional price fluctuations, while diplomatic efforts to ease tensions may help stabilise markets.

For now, traders are assessing the potential impact of the conflict on global oil flows. With uncertainty continuing to dominate market sentiment, oil prices are expected to remain sensitive to geopolitical developments and supply-related concerns in the region.

Also Read: Rajesh Exports under regulatory lens after Sebi order

Categories
Beyond

Newspaper packaging poses health risk, warns FSSAI

The Food Safety and Standards Authority of India (FSSAI) has directed food business operators across the country to stop using newspapers for packaging, wrapping and serving food, citing potential health hazards linked to newspaper ink and printing chemicals.

The advisory targets a long-standing practice commonly seen at street food stalls, eateries and small food outlets, where items such as samosas, pakoras, vadas and snacks are often wrapped in newspaper sheets. According to FSSAI, newspapers are not food-grade materials and may contain harmful substances that can contaminate food.

The regulator warned that printing inks used in newspapers contain chemicals, pigments and solvents that may transfer to food, particularly when it is hot, oily or moist. Such contamination can expose consumers to substances that may have adverse health effects over time.

FSSAI officials said recycled paper used in newspaper production may also contain residues of chemicals, dyes, adhesives and other contaminants. These substances can migrate into food and compromise food safety standards. The authority emphasised that consumers are often unaware of the risks associated with direct contact between food and printed paper.

The food safety regulator has instructed food business operators, including restaurants, street vendors, caterers and food delivery services, to discontinue the use of newspapers and similar printed materials for food packaging and serving purposes. Businesses have been advised to use food-grade packaging materials that comply with safety regulations.

FSSAI stated that ensuring safe packaging is an important part of maintaining food hygiene and protecting public health. The authority also urged state food safety departments to create awareness among food vendors and encourage compliance with food safety norms.

Food safety experts have welcomed the advisory, noting that the practice of using newspapers for food packaging remains widespread despite repeated warnings over the years. They said the move could help reduce the risk of chemical contamination and improve overall food safety standards.

Also Read: Domestic LPG prices up by ₹29 per cylinder

Categories
Beyond

Domestic LPG prices up by ₹29 per cylinder

The Centre has increased the price of domestic LPG cylinders by ₹29, making cooking gas costlier for consumers across the country. The latest revision comes amid rising international LPG prices and growing financial pressure on state-run oil marketing companies (OMCs).

With the increase, the cost of a domestic LPG cylinder has moved closer to the ₹1,000 mark in several cities. The government said the revision was necessary to address losses incurred by fuel retailers, which have been absorbing a significant portion of the rising cost of supplying cooking gas.

According to official estimates, OMCs are currently facing an under-recovery of nearly ₹700 on every domestic LPG cylinder sold. Despite periodic price revisions, companies have continued to bear losses due to fluctuations in global energy markets and higher import costs.

Government officials said international benchmark LPG prices have risen sharply in recent months, increasing the burden on fuel retailers. They argued that the latest increase is aimed at ensuring the continued availability and distribution of cooking gas while reducing the financial strain on oil companies.

The Centre also noted that domestic LPG prices in India remain relatively lower than those in several other countries. Officials said the government continues to monitor global market trends and will take appropriate decisions based on prevailing economic conditions.

The price hike, however, has drawn criticism from opposition parties and consumer groups. They argue that higher LPG prices add to inflationary pressures and increase the cost of living for households. Consumer advocates have called for measures to protect vulnerable families from the impact of rising fuel prices.

Industry experts say LPG prices are closely linked to global energy markets, making them susceptible to international developments. Any further rise in crude oil and LPG benchmark prices could influence future revisions.

With global energy prices remaining volatile, market observers expect cooking gas prices to remain under scrutiny in the coming months. Consumers and industry stakeholders alike will be watching closely for any further policy measures or pricing changes.

Also Read: Gold at ₹1,52,720, Silver at ₹2,74,900 

Categories
Beyond

Gold at ₹1,52,720, Silver at ₹2,74,900

Gold and silver prices witnessed a slight decline across major Indian markets on Sunday, offering some relief to buyers after recent sharp gains. According to bullion market data, gold prices slipped marginally, while silver also recorded a modest fall amid subdued trading activity.

The price of 24-carat gold fell by ₹10 per 10 grams to around ₹1,52,720, while 22-carat gold also edged lower across several cities. Silver prices declined by ₹100 per kilogram and were quoted at approximately ₹2,74,900 per kg in the domestic market. Retail rates varied slightly between cities due to local taxes and transportation costs.

In major markets such as Delhi, Mumbai, Kolkata and Chennai, jewellers reported steady demand despite the minor correction in prices. Market experts said the decline was largely influenced by developments in international markets, where gold prices remained under pressure due to expectations that the US Federal Reserve could maintain higher interest rates for a longer period. Rising bond yields and a stronger dollar have reduced the appeal of non-interest-bearing assets such as gold.

Analysts noted that investors are closely monitoring global economic indicators, inflation trends and geopolitical developments, all of which continue to influence precious metal prices. Although gold is traditionally considered a safe-haven investment during uncertain times, expectations of tighter monetary policy have tempered buying interest in recent sessions.

Silver prices have also mirrored global trends, with industrial demand and broader commodity market movements playing an important role in determining price direction. Traders expect volatility to continue during the week as markets react to fresh economic data and international developments.

Also Read: Sensex slumps over 500 points, Nifty ends below 23,250

Categories
Beyond

India plans to bring E85 fuel to cut oil imports

India has introduced E85 fuel, a new blend containing 85% ethanol and 15% petrol, as part of its efforts to reduce crude oil imports and promote cleaner transport. The fuel will be priced around ₹20 per litre cheaper than regular petrol.

The move is part of the government’s broader ethanol blending programme aimed at improving energy security and reducing dependence on fossil fuels. Officials say greater use of ethanol can help lower India’s fuel import bill while supporting farmers and the domestic biofuel industry.

E85 can only be used in flex-fuel vehicles, which are designed to run on higher ethanol blends. Several automobile manufacturers are preparing to launch flex-fuel models in India as the government pushes for alternative fuel options.

The government believes E85 will help reduce vehicle emissions because ethanol is a renewable fuel produced from agricultural feedstock such as sugarcane. Higher ethanol use is expected to lower the transport sector’s carbon footprint compared to conventional petrol.

India has made significant progress in ethanol blending in recent years and has achieved key targets ahead of schedule. The launch of E85 is seen as the next step in expanding the country’s biofuel ecosystem.

The introduction of E85 aligns with India’s wider strategy to diversify energy sources through biofuels, electric vehicles and other cleaner alternatives. The government hopes the new fuel will contribute to lower emissions, reduced fuel costs and greater energy independence in the years ahead.

Experts say the success of E85 will depend on the availability of flex-fuel vehicles and the expansion of fuel distribution infrastructure. Consumer awareness and access to refuelling stations will also play an important role in driving adoption.

Also Read: HDFC, ICICI Prudential impose curbs on large gold ETF investments

Categories
Beyond

Oil India finds gas in the Andaman offshore area

State-run Oil India Limited (OIL) has reported a fresh natural gas discovery in the Andaman offshore region, marking another step forward in India’s efforts to strengthen its domestic energy resources. The discovery was made at the Vijayapuram-3 exploratory well located in the Andaman shallow offshore block under the Open Acreage Licensing Policy (OALP).

This is the second confirmed hydrocarbon discovery in the block, further raising expectations that the Andaman basin could hold sizeable oil and gas reserves. Initial tests have confirmed the presence of natural gas, with encouraging signs observed during drilling and testing operations. The company is now carrying out detailed studies to assess the quality of the gas, its energy value and whether the discovery can be developed commercially.

The Vijayapuram-3 well lies about 15 kilometres off the eastern coast of the Andaman Islands in waters around 355 metres deep. The latest discovery follows earlier successful exploration efforts in the region, adding to evidence that the offshore basin may have significant untapped hydrocarbon resources.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri welcomed the development, saying it highlights the vast opportunities that exist in India’s offshore energy sector. The government has been actively encouraging exploration in frontier areas such as the Andaman Sea to improve the country’s energy security and reduce reliance on imported fuel.

Energy experts consider the Andaman basin one of India’s most promising yet underexplored regions for oil and gas. While the recent discoveries are encouraging, they note that further drilling, resource evaluation and infrastructure development will be necessary before commercial production can begin.

The discovery comes as India seeks to increase domestic oil and gas output to meet rising energy demand and support economic growth. Greater local production could help reduce import dependence and strengthen the country’s long-term energy security.

Also Read: Vietnam’s Green SM launches EV taxi service in Delhi-NCR