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India’s January retail inflation at 2.75%

India’s retail inflation for January 2026 rose to 2.75% year-on-year, according to the first reading from the updated Consumer Price Index (CPI) series with base year 2024. This marks the debut of a new methodology aimed at better reflecting modern household spending patterns. The previous CPI series, based on 2012 data, is now replaced to include more goods and services and updated weights for different items.

The new CPI also reduces the weight of food and beverages, which historically caused high volatility in overall inflation. Experts say this makes the new series a more accurate measure of current consumer price trends, helping policymakers and analysts better track inflation dynamics.

Food prices, which had seen declines for the past seven months, returned to positive territory in January, rising 2.13%. While food inflation has moderated, prices of housing and services saw slight increases, contributing to the overall CPI. Despite these shifts, the 2.75% figure remains comfortably within the Reserve Bank of India’s 2–6% target range, signalling that price pressures are moderate and unlikely to spur immediate policy changes.

Economists note that comparisons with historical CPI figures should be made cautiously due to the base-year revision. However, the updated methodology is expected to provide a realistic picture of how households spend today, capturing a broader range of goods, services, and lifestyle-related expenses.

The government’s move to revise the CPI reflects an effort to modernize statistical reporting and improve the reliability of economic indicators. This change will help in more informed decision-making for monetary policy, wage adjustments, and planning of social welfare programs.

Also Read: Citigroup CEO Jane Fraser’s $42 mn pay sparks debate

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AI jitters trigger global stock market selloff

In the United States, major indices closed lower. The S&P 500 dropped around 1.6%, while the tech-heavy Nasdaq 100 fell nearly 2%. Investors became worried that heavy spending on AI may not quickly translate into strong profits for companies, especially large technology firms.

The weakness in the US affected Asian markets the next day. The MSCI Asia Pacific Index slipped about 0.7%, with shares in Japan and South Korea among the biggest losers. Technology stocks were hit the hardest, as global investors reduced exposure to riskier assets.

Back in India, markets also reacted to global cues. The Sensex and the Nifty 50 saw notable declines, mainly due to selling in IT and tech-related stocks. Broader market sentiment remained weak as traders tracked international developments.

Apart from AI concerns, investors are also watching US economic signals closely. A strong jobs report has reduced expectations that the Federal Reserve will cut interest rates aggressively this year. Higher interest rates generally make investors more cautious, especially toward growth stocks.

Also Read: Rolls-Royce bets bigger on India after PM Modi meet

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Gold ₹1,54,800, silver ₹2,41,800, prices bounce back

Gold and silver prices in India recovered on Friday after a recent slump, driven by bargain hunting from investors. On the Multi Commodity Exchange (MCX), gold for April delivery rose about 1.3% to ₹1,54,800 per 10 grams, while silver for March delivery climbed around 2.2% to ₹2,41,800 per kilogram. Traders said the rebound reflects buying at lower levels after the sharp sell-offs earlier this week.

Despite the recovery, silver remains roughly 42% below its peak, highlighting the continuing volatility in the market. Analysts say the recent upswing is short-term, largely fueled by investors looking to seize value after prices dipped.

Global markets mirrored this trend. Spot gold rebounded nearly 1% to around $4,966 per ounce, while spot silver gained over 2%, recovering from earlier losses. However, strong US economic data, particularly employment figures, tempered hopes of imminent interest rate cuts, keeping precious metals under some pressure.

Market experts note that while prices are volatile, the long-term outlook for both gold and silver remains positive. Central bank buying and safe-haven demand continue to provide support. Additionally, inflows into gold and silver exchange-traded funds (ETFs) indicate steady investor interest.

For buyers, the current situation presents both opportunity and caution. Bargain hunting has fueled recent gains, yet overall prices are still far below previous highs, emphasizing the need for careful, measured investing in these metals.

Also Read: Sensex drops 750+ points, Nifty slips below 25,600

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RBI targets bank mis-selling

The Reserve Bank of India (RBI) has proposed new draft rules to stop banks from mis-selling financial products to customers. The central bank wants to end incentive structures that push employees and agents to aggressively sell insurance, mutual funds and other third-party products.

Under the proposed guidelines, banks will not be allowed to design reward systems, sales competitions or performance targets that encourage staff to prioritise sales over customer needs. The RBI has made it clear that employees and direct sales agents must not receive direct or indirect incentives from third-party companies for promoting their products.

The move comes after concerns that customers are often pressured into buying products that may not suit their financial goals, income level or risk capacity. In some cases, products are bundled with loans or other banking services without giving customers a clear choice.

The draft rules define mis-selling as selling products that are unsuitable, failing to disclose important details, or using misleading tactics to influence customer decisions. If mis-selling is proven, banks will be required to fully refund customers and compensate them for any financial loss.

The RBI has also targeted unfair digital practices. The draft prohibits the use of “dark patterns”, design features in apps or websites that mislead or pressure customers into making purchases. Banks will need to review their systems and remove such tactics.

Another important proposal is that banks can contact customers for marketing only with explicit consent and during specified hours. This is aimed at reducing harassment through repeated calls and messages.

The central bank has invited public comments on the draft guidelines until early March 2026. If finalised, the new rules are expected to come into effect from July 1, 2026.

Also Read: RBI clears 9.95% stake IDFC first, then Federal Bank

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Gold near ₹2 lakh, Silver above ₹4 lakh

Gold and silver prices witnessed volatility in recent sessions after scaling record highs in the domestic market. Gold futures on the Multi Commodity Exchange (MCX) recently approached ₹2 lakh per 10 grams, while silver surged past ₹4 lakh per kilogram before witnessing profit-booking.

The pullback comes amid a firmer US dollar and shifting expectations around the US Federal Reserve’s rate trajectory. Stronger economic data from the US reduced immediate hopes of aggressive rate cuts, leading to some pressure on bullion prices. Market participants also trimmed positions after the sharp rally seen over the past few weeks.

Despite near-term fluctuations, analysts maintain a constructive outlook on precious metals. According to market experts, gold and silver could be entering a 3–5 year structural bull cycle supported by macroeconomic and sectoral fundamentals.

Central bank buying remains a key pillar for gold. Several global central banks continue to add to their gold reserves as part of diversification strategies, reinforcing long-term demand. Additionally, persistent geopolitical tensions and inflationary risks are sustaining gold’s appeal as a safe-haven asset.

Silver is benefiting from a dual demand dynamic. Alongside its role as a store of value, silver demand is being driven by industrial applications, particularly in renewable energy, electric vehicles, and electronics manufacturing. The expansion of clean energy infrastructure is expected to support medium- to long-term consumption trends.

Investment advisors recommend a disciplined approach. Rather than chasing elevated levels, investors are advised to accumulate on corrections. A strategic allocation of 5–10% of portfolio assets in precious metals is broadly considered prudent for diversification. Portfolios with disproportionately high exposure may warrant rebalancing.

Also Read: Sensex falls 400+ points, Nifty below 25,850

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US edits India trade deal factsheet

The White House has revised its factsheet on the proposed India-US interim trade deal, making key changes to language on agricultural imports, investment commitments and digital taxation following concerns flagged by New Delhi.

In the earlier version of the document, the US had stated that India would cut or eliminate tariffs on a list of American agricultural products, including tree nuts, fruits, soybean oil, wine, spirits and “certain pulses.” The mention of pulses,  a politically sensitive crop in India,  drew attention because India is the world’s largest producer and consumer of lentils, chickpeas and other pulses, and domestic farmers depend heavily on tariff protection.

In the updated factsheet, the specific reference to “certain pulses” has been removed. Instead, the language now broadly mentions improved access for a “wide range of US agricultural products,” without naming individual commodities.

Another notable revision relates to India’s proposed purchases of American goods. The original text said India was “committed” to buying more than $500 billion worth of US products over the next five years, including energy, coal and technology equipment. The revised version softens this to say India “intends” to purchase such goods, signalling that the figure is indicative rather than a binding obligation. Mentions of agricultural goods within this purchase commitment have also been omitted.

Changes were also made to the section on digital trade. The earlier draft suggested India would remove or roll back its digital services tax. The revised document now says both countries will work toward negotiating digital trade rules, bringing the language in line with prior joint statements.

Sources indicated that the corrections were made to accurately reflect what had been mutually agreed upon.

Also Read: Rupee declines 6 paise to ₹90.62 in early trade

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Rupee declines 6 paise to ₹90.62 in early trade

The Indian rupee edged lower in morning trade on Wednesday, falling 6 paise to ₹90.62 against the US dollar, as continued demand for the greenback and cautious global cues weighed on sentiment. The currency opened at ₹90.56 in the interbank foreign exchange market but slipped further during early deals.

Currency dealers attributed the decline mainly to sustained dollar buying by importers, particularly oil companies, which require large volumes of dollars to settle overseas payments. This demand for the US currency has kept the rupee under pressure in recent sessions.

The rupee had ended the previous session 10 paise higher at ₹90.56, recovering marginally after earlier weakness. However, the rebound was short-lived as fresh demand for dollars and cautious investor sentiment weighed on the domestic unit in early trade.

Global developments have also contributed to the rupee’s weakness. A firm US dollar in international markets, coupled with geopolitical concerns and uncertainty around trade-related matters, has affected emerging market currencies, including the rupee. Market participants remain watchful of developments related to India-US trade discussions, as well as global economic signals that could influence currency movements.

A weaker rupee has mixed consequences for the economy. On the positive side, it can make Indian exports more competitive in global markets, as goods priced in rupees become cheaper for foreign buyers. On the downside, it increases the cost of imports, especially crude oil and other essential commodities, which can add to inflationary pressures.

Also Read: Gold at ₹1,58,790, Silver slips to ₹2,89,900

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Gold at ₹1,58,790, Silver slips to ₹2,89,900

Gold prices in India witnessed a marginal rise on Wednesday, while silver prices edged lower. The price of 24-carat gold increased by ₹10, taking the rate of 10 grams to ₹1,58,790 in key markets such as Mumbai and Kolkata. In Delhi, gold was priced slightly higher at ₹1,58,940, while Chennai recorded ₹1,59,050 for the same quantity.

Similarly, 22-carat gold prices also moved up by ₹10. Ten grams of 22-carat gold were priced at ₹1,45,560 in cities including Mumbai, Kolkata, Bengaluru and Hyderabad. In Delhi, the rate stood at ₹1,45,710, while Chennai saw a slightly higher price of ₹1,45,790.

In contrast, silver prices softened during the session. The price of one kilogram of silver fell by ₹100 to ₹2,89,900 in Delhi, Mumbai and Kolkata. In Chennai, silver continued to trade at a premium, priced at ₹2,99,900 per kilogram.

Market participants attributed the mixed trend to cautious investor sentiment and global economic cues. Gold continues to attract steady demand as a traditional safe-haven asset, especially during periods of uncertainty. However, the gains remain limited due to fluctuating global factors and profit booking at higher levels.

Silver, which has both investment and industrial demand components, tends to experience sharper price movements. The slight dip reflects subdued buying interest in the domestic market.

Also Read: Sensex up 50 points, Nifty holds above 25,950

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Gold ETFs attract ₹24,040 cr in January

Indian investors significantly boosted their holdings in gold exchange-traded funds (ETFs) in January 2026, pouring in ₹24,040 crore — more than double the inflows recorded in December 2025. This marks the strongest monthly inflow in five months and brings gold ETF investments nearly on par with net inflows into equity mutual funds during the same period.

Data from the Association of Mutual Funds in India (AMFI) shows that the broader category of precious metal ETFs, which includes silver products, drew a combined ₹33,503 crore in January. Silver ETFs also saw robust growth, attracting ₹3,962 crore compared with December’s lower levels. In contrast, equity funds experienced a slowdown, with net inflows of around ₹24,029 crore — down 14 % from December. Large-cap equity schemes gained slightly, while mid- and small-cap funds reported weaker flows, and some tax-saving ELSS schemes even saw net outflows.

Experts attribute the strong appetite for gold ETFs to a combination of global and domestic factors. Rising inflation, currency volatility, and ongoing geopolitical tensions have encouraged investors to seek safety in gold. Its appeal is further reinforced by liquidity, transparency, and cost efficiency, making ETFs a convenient vehicle for both retail and institutional investors.

“Investors are increasingly treating gold not just as a hedge, but as a core component of their diversified portfolios,” said a market analyst. The trend reflects a shift in investment priorities, with individuals seeking stability alongside potential returns, particularly during periods of market uncertainty.

The January data highlights a broader behavioural change in India’s mutual fund landscape. While equities continue to attract attention, gold and other precious metal ETFs are emerging as key instruments for managing risk and preserving wealth. As the market navigates economic fluctuations and global pressures, investors appear to be increasingly leaning toward assets that combine safety with growth potential.

Also Read: China urges banks to cut US treasury holdings

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US soybean prices drop as Brazil boosts supply

US soybean prices fell on Monday, stepping back from a recent rise that pushed them to multi-month highs. The main reasons were profit-taking by traders and an increasing supply from Brazil’s soybean harvest, which is putting downward pressure on global prices.

On the Chicago Board of Trade, the March soybean contract dropped from last week’s high of around $11.37 per bushel. Prices had jumped earlier after hints that China might buy more U.S. soybeans, which are a major export for American farmers.

However, China has not yet made large purchases. Brazilian soybeans are cheaper and more available, especially during their harvest season. This is making Chinese buyers prefer Brazilian soybeans over US supplies.

Brazil is expecting a record soybean crop this year, with strong exports already underway. These large supplies are reducing the need for China to buy more from the US, even with recent diplomatic talks encouraging sales.

US soybeans are still more expensive than Brazilian ones, which makes them less attractive for Chinese buyers, even though some small purchases have been made.

Other crops like corn and wheat also saw slight price drops, as there were no new factors to push prices higher.

Also Read: Trump’s chip tariffs may spare big tech, pressure TSMC