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Wholesale Price Index to replace Producer Price Index

In a major overhaul of India’s inflation measurement system, the government will begin rolling out a new Producer Price Index (PPI) framework from June 15, gradually replacing the Wholesale Price Index (WPI) over the next five years. The move is aimed at modernising the country’s pricing data system and aligning it with global best practices.

The Department for Promotion of Industry and Internal Trade (DPIIT) will release a revised WPI series with a new base year of 2022-23, replacing the current 2011-12 series. Alongside it, the government will introduce new Producer Price Indices, including the Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI) and Service Producer Price Index (Service PPI).

Unlike the WPI, which primarily tracks the prices of goods at the wholesale level, the PPI will provide a more comprehensive view of producer-level inflation by covering output prices, input costs and selected services. Initially, the services index will cover sectors such as banking, insurance, securities transactions, pension fund management, railways, air passenger transport and telecommunications.

To ensure a smooth transition, both WPI and PPI will be published simultaneously for five years. The WPI will then be phased out, giving businesses and institutions adequate time to shift to the new system. The government noted that WPI remains widely used in contracts and price-escalation clauses, making a gradual transition necessary.

The revised WPI series will also feature an expanded basket of items, increasing coverage from 697 to 957 products. The update includes emerging sectors and newer economic activities, making the index more representative of the current economy.

Officials believe the new framework will help policymakers, businesses and economists better understand inflation trends across different stages of production. By tracking changes in production costs earlier in the supply chain, the PPI is expected to offer a more accurate picture of price pressures in the economy.

Also Read: HUL launches Unilever Fragrance Hub in Mumbai

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US sanctions Iran’s largest Crypto exchange Nobitex

The United States has imposed sanctions on Nobitex, Iran’s largest cryptocurrency exchange, accusing it of helping the Iranian government and affiliated groups evade international sanctions through digital asset transactions.

The US Treasury Department said Nobitex played a key role in facilitating financial activities linked to Iran’s military and security institutions, including the Islamic Revolutionary Guard Corps (IRGC). According to US officials, the platform was allegedly used to move funds and provide access to the global financial system despite restrictions imposed on Tehran.

Along with Nobitex, sanctions were also imposed on several associated entities and individuals accused of supporting the exchange’s operations. The measures freeze any US-based assets linked to the sanctioned parties and prohibit American individuals and companies from conducting business with them.

US authorities claim that Nobitex has become a major gateway for cryptocurrency transactions in Iran and has processed billions of dollars in digital asset trades. Officials argue that such platforms can be used to bypass traditional banking restrictions and help sanctioned organisations move money across borders.

Iran has not immediately responded to the latest sanctions. However, Tehran has repeatedly criticised US sanctions policies, arguing that they unfairly target the country’s economy and financial system.

The action is part of Washington’s broader effort to curb what it describes as Iran’s use of alternative financial networks to support activities that threaten regional stability. US officials have increasingly focused on cryptocurrency platforms, warning that digital assets can be exploited for sanctions evasion, money laundering and illicit financing.

The sanctions come amid continuing tensions between the United States and Iran over regional security issues, nuclear concerns and economic restrictions. Analysts say the move could further complicate Iran’s access to international financial markets and increase scrutiny of cryptocurrency transactions connected to the country.

For the global crypto industry, the development highlights growing regulatory attention on digital asset exchanges and their compliance obligations. It also underscores how cryptocurrencies have become an important arena in geopolitical and economic disputes, particularly in countries facing international sanctions.

The latest measures signal that the US intends to maintain pressure on financial networks it believes help sanctioned entities operate outside the traditional banking system.

Also Read: Godrej enters wealth management business

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Rupee falls 28 paise to 95.64 against US dollar

The Indian rupee weakened by 28 paise to 95.64 against the US dollar in early trade on Wednesday, pressured by a strengthening greenback, rising crude oil prices and heightened geopolitical tensions in the Middle East.

Forex traders said growing concerns over global risk sentiment prompted investors to move towards safe-haven assets, boosting demand for the US dollar. The rupee came under additional pressure as crude oil prices remained elevated, raising concerns over India’s import bill and inflation outlook.

The domestic currency opened lower and extended its losses during the morning session as broader financial markets remained cautious. A sharp decline in Indian equity markets further weighed on sentiment, with foreign investors turning risk-averse amid global uncertainty.

Market participants are closely tracking developments in the Middle East, where escalating tensions have pushed oil prices higher. As India imports a significant portion of its crude oil requirements, any sustained rise in energy prices is seen as negative for the rupee and the country’s trade balance.

Despite the decline, forex experts believe the Reserve Bank of India will continue to monitor currency movements closely to ensure orderly market conditions. They noted that the rupee’s trajectory in the coming sessions will depend on crude oil prices, foreign fund flows and developments in global markets.

With geopolitical risks remaining elevated and volatility persisting across asset classes, traders expect the rupee to remain under pressure in the near term. Investors will also watch upcoming economic data and central bank signals for further direction in the currency market.

Also Read: Sensex tumbles over 1000 points, Nifty slips to 23,250

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Gold slides to ₹1,59,730, Silver at ₹2,68,170

old prices witnessed a marginal decline on Wednesday, June 3, as investors booked profits following the recent surge in bullion prices. Gold was quoted at ₹1,59,730, while silver stood at ₹2,68,170 in the domestic bullion market, reflecting a slight pullback after touching elevated levels in recent sessions.

The correction comes after precious metals rallied sharply on the back of heightened geopolitical tensions, uncertainty surrounding the global economic outlook and strong safe-haven buying. Traders said the latest dip was largely driven by profit booking, with investors locking in gains after gold and silver approached record highs.

Despite the decline, market sentiment towards bullion remains positive. Analysts noted that gold continues to attract strong investor interest as a hedge against inflation, currency volatility and economic uncertainty. Expectations of monetary easing by major central banks and ongoing geopolitical risks have further strengthened the appeal of the yellow metal.

Silver, which was trading at ₹2,68,170, also witnessed some pressure but remained supported by robust industrial demand. The metal continues to benefit from its widespread use in sectors such as electronics, solar energy, electric vehicles and manufacturing, helping sustain its long-term growth prospects.

Globally, investors remained focused on inflation data, interest-rate expectations and geopolitical developments, all of which continue to influence precious metal prices. Movements in the US dollar and bond yields also remained key factors shaping sentiment in the bullion market.

Jewellers reported steady consumer demand despite elevated prices, particularly from wedding and festive buyers. Industry participants said physical demand has remained resilient, indicating that consumers continue to view gold as a preferred store of value even at higher price levels.

Also Read: Sensex tumbles over 1000 points, Nifty slips to 23,250

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Centre launches NHPC OFS to sell up to 6% stake

The Centre has launched an Offer for Sale (OFS) in state-run hydropower major NHPC, aiming to divest up to a 6% stake in the company as part of its disinvestment and resource mobilisation programme. The sale opened for non-retail investors on June 2, while retail investors will be able to bid on June 3.

Under the OFS, the government is initially offering a 3% stake, equivalent to around 30.12 crore shares. It also retains a greenshoe option to sell an additional 3% stake, taking the total offer size to 6% if investor demand remains strong. The floor price for the issue has been fixed at ₹71 per share, representing a discount to the prevailing market price.

At the floor price, the government could raise more than ₹4,200 crore if the entire 6% stake is sold. The proceeds will contribute to the Centre’s broader disinvestment targets for the current financial year.

The OFS structure provides an opportunity for institutional and retail investors to acquire shares directly from the government. Retail investors are expected to receive a discount on the floor price, in line with the government’s practice in previous OFS transactions.

The government currently holds a majority stake in the company. Following the OFS, its shareholding will decline, though it will continue to retain management control. The stake sale is aimed at improving public shareholding while unlocking value from government-owned enterprises.

NHPC is India’s largest hydropower development company and operates several hydroelectric projects across the country. The company has also expanded into solar and other renewable energy segments as part of its diversification strategy. With a substantial portfolio of power generation assets, NHPC remains a key player in India’s clean energy transition.

Also Read: SoftBank emerges as Japan’s most valuable company

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Coinbase launches direct INR trading services in India

Cryptocurrency exchange Coinbase has rolled out direct Indian rupee (INR) trading services in India, enabling customers to buy and sell digital assets without relying on peer-to-peer transactions or external payment channels. The move is expected to make crypto trading more convenient for Indian users and strengthen Coinbase’s footprint in the country’s growing digital asset market.

Under the new system, customers can deposit and withdraw funds in rupees using the Immediate Payment Service (IMPS). The integration of local payment infrastructure is aimed at providing a smoother and more accessible trading experience for users across India.

The development represents another milestone in Coinbase’s return to the Indian market. The company had paused operations in the country in 2023 due to regulatory and payment-related hurdles. After securing registration with India’s Financial Intelligence Unit (FIU), Coinbase gradually resumed services and has now expanded its offerings with direct INR support.

Indian users will be able to access spot trading in a variety of cryptocurrencies, along with perpetual futures linked to major digital assets. Coinbase has also launched dedicated rupee-based order books, allowing traders to transact directly in INR while benefiting from the exchange’s global liquidity network.

The company views India as a strategically important market, citing the country’s strong technology ecosystem, growing blockchain community and rising interest in digital assets. Coinbase executives have repeatedly highlighted India’s potential to play a significant role in the future development of the global crypto industry.

The expansion comes even as India’s crypto sector operates under a stringent tax framework. Profits from virtual digital assets are subject to a 30% tax, and exchanges must comply with anti-money laundering requirements. Despite these regulations, interest in cryptocurrencies continues to grow, although a comprehensive legal framework for the sector is still awaited.

Also Read: Manufacturing growth sees 3-month high in India

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Manufacturing growth sees 3-month high in India

India’s manufacturing sector expanded at its fastest pace in three months in May, driven by strong domestic demand, increased infrastructure activity and a steady rise in new business orders, according to the latest HSBC India Manufacturing Purchasing Managers’ Index (PMI) survey compiled by S&P Global. The PMI rose to 55.0 in May from 54.7 in April, signalling a stronger improvement in business conditions across the sector. A PMI reading above 50 indicates expansion.

The survey showed that manufacturers recorded faster growth in output and new orders during the month, supported largely by robust demand from the domestic market. Companies reported healthy sales across several industries, particularly in intermediate and capital goods segments, aided by ongoing infrastructure projects and new business opportunities.

Production levels increased at the quickest pace since February, encouraging firms to raise purchasing activity and build inventories. Businesses also increased stockpiling of raw materials and intermediate goods as a precaution against potential supply disruptions linked to geopolitical tensions in the Middle East. Pre-production inventories rose to a three-month high, while finished goods inventories climbed significantly.

Despite the strong growth, manufacturers faced rising input costs. Survey participants reported sharp increases in expenses related to energy, fuel, transportation and raw materials. Cost pressures were among the strongest seen in nearly four years, largely due to higher commodity prices and global supply concerns. However, many firms chose to absorb part of these costs rather than fully pass them on to customers, helping to keep output price inflation relatively moderate.

The report also noted that employment continued to grow, although at a slower pace compared with previous months. Meanwhile, business confidence remained positive but eased to its lowest level since February as companies expressed caution over global uncertainties and rising costs.

Also Read: ED searches Vedanta premises in FEMA case

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ED searches Vedanta premises in FEMA case

The Enforcement Directorate (ED) has conducted searches at multiple premises linked to the Vedanta Group as part of an investigation under the Foreign Exchange Management Act (FEMA), officials said on Tuesday. The action marks the latest regulatory scrutiny of one of India’s largest mining and natural resources conglomerates.

According to officials, the searches were carried out at locations in Delhi, Mumbai and Rajasthan after the agency initiated a probe into suspected foreign exchange violations. The investigation is being conducted under FEMA’s civil provisions, although authorities have not disclosed the full details of the alleged irregularities.

Reports indicate that the probe is linked to royalty payments made by Vedanta to its parent company, Vedanta Resources. Investigators are examining whether the transactions complied with foreign exchange regulations and whether any FEMA provisions were violated. However, the ED has not officially confirmed the exact nature of the allegations.

The searches reportedly began on Monday and continued at multiple locations connected to the Anil Agarwal-led group. During the operation, officials are understood to have examined financial records, digital data and documents related to overseas transactions and fund flows.

Responding to the development, Vedanta said it was extending full cooperation to investigators. In a statement, the company said it is providing all information sought by the authorities and remains committed to complying with all applicable laws and regulations. The company declined to comment further, citing the ongoing regulatory process.

The investigation comes at a significant time for Vedanta, which is in the process of implementing a major corporate restructuring plan aimed at splitting its businesses into separate verticals. Market sentiment was affected by the news, with Vedanta shares trading lower during the day following reports of the searches.

Also Read: Rupee recovers to 95.03 against US dollar

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Rupee recovers to 95.03 against US dollar

The Indian rupee appreciated by 16 paise to 95.03 against the US dollar in early trade on Tuesday, aided by a decline in the US dollar index and improved sentiment across emerging markets.

Forex traders said the weakening of the dollar against major international currencies helped boost demand for the rupee. The domestic unit opened higher and maintained its upward momentum during the early hours of trading, recovering some ground after facing pressure in recent sessions.

The dollar has come under pressure globally amid expectations that the US Federal Reserve may move towards lower interest rates if economic growth moderates and inflation continues to ease. A softer dollar often encourages investors to allocate funds to higher-yielding emerging-market assets, providing support to currencies such as the rupee.

However, traders cautioned that the currency’s gains could be limited by elevated crude oil prices. Oil remains a critical factor for India’s external sector because the country imports a large share of its energy needs. Rising crude prices can widen the trade deficit, increase inflationary pressures and create additional demand for dollars.

Geopolitical tensions in West Asia are another factor being closely watched by currency markets. Any escalation in regional conflicts could disrupt energy supplies and trigger volatility across global financial markets.

Investors are also monitoring foreign institutional investor flows, which play a significant role in determining short-term currency movements. Strong inflows into Indian equities and debt markets can support the rupee, while persistent outflows may exert downward pressure.

The focus this week will remain on the Reserve Bank of India’s monetary policy meeting, along with key economic data from the United States and other major economies. Analysts expect the rupee to trade with a positive bias in the near term, though global developments, oil prices and foreign fund movements will continue to influence market direction.

The rupee’s appreciation reflects improving sentiment, but traders expect volatility to remain a feature of currency markets in the days ahead.

Also Read: Gold rises to ₹1,59,440, silver down at ₹2,66,850

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Gold rises to ₹1,59,440, silver down at ₹2,66,850

Gold prices moved higher in domestic markets on Tuesday, supported by safe-haven buying amid ongoing global economic and geopolitical uncertainties. In contrast, silver prices witnessed a marginal decline due to profit-booking after recent gains.

According to market data, the price of 24-carat gold rose to ₹1,59,440 per 10 grams, while 22-carat gold also traded higher across major cities. Silver prices, however, slipped and were quoted at ₹2,66,850 per kilogram in the retail market.

In Delhi, Mumbai, Kolkata, Chennai, Bengaluru and other key cities, gold prices remained firm with minor variations depending on local taxes and making charges. Retail rates of 24-carat gold continued to trade above ₹1.59 lakh per 10 grams, while 22-carat gold was available at comparatively lower levels. Silver prices remained elevated despite the latest decline.

Globally, gold prices remained supported by concerns over economic growth, geopolitical tensions and expectations that major central banks could consider interest rate cuts later this year. These factors have boosted demand for gold as a safe-haven asset during periods of uncertainty.

Silver prices, meanwhile, witnessed some profit-taking after a strong rally in recent sessions. Despite the correction, demand for silver continues to be supported by its extensive industrial use in sectors such as solar energy, electronics and electric vehicles, along with investment demand.

Jewellers and market experts said domestic demand for precious metals remains steady, aided by wedding-related purchases and investment buying. They expect gold and silver prices to remain volatile in the near term as global investors react to economic data releases, central bank policy signals and geopolitical developments.

Market participants will continue to track international trends, currency movements and global economic indicators for further direction in gold and silver prices.

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