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India eases royalty rules for oil and gas firms

Shares of ONGC and Oil India surged up to 9% after the Indian government reduced royalty rates on crude oil and natural gas production to encourage higher domestic output.

The policy aims to support upstream oil and gas companies by lowering their operational costs and improving profitability. Officials said the revised structure is designed to boost exploration, attract investment, and increase India’s energy production.

Under the new framework, royalty rates have been rationalised across onshore, offshore, and deepwater fields. Offshore and gas production rates have been reduced, while some categories now offer lower or phased royalty charges.

Market analysts say the move could significantly benefit state-run producers like ONGC and Oil India, improving cash flows and encouraging fresh investment in difficult exploration areas.

Following the announcement, both companies saw strong buying interest on the stock market, reflecting investor optimism about higher earnings potential.

The government’s decision is part of a broader push to reduce India’s dependence on imported crude oil and strengthen domestic energy security through increased local production.

Also Read: Toyota to build SUV plant in Maharashtra by 2029

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Toyota to build SUV plant in Maharashtra by 2029

Toyota Kirloskar Motor has announced plans to set up a new manufacturing plant in Maharashtra, expanding its operations in India’s growing auto market.

The facility will be located in the Bidkin Industrial Area and is expected to begin production in the first half of 2029. Once operational, it will have an annual capacity of around 1 lakh vehicles.

The plant will focus mainly on producing a new SUV model, along with full vehicle manufacturing processes such as welding, painting, and final assembly. It is expected to generate about 2,800 jobs.

Toyota said the new unit is part of its long-term plan to strengthen its presence in India and meet rising demand, especially for SUVs, which remain one of the fastest-growing segments in the country.

With production set for 2029, the Maharashtra plant is expected to play a key role in Toyota’s future SUV lineup for both domestic and export markets.

The company also plans to use the facility to support exports to nearby international markets, making it part of a wider global supply strategy.

While investment details have not been disclosed, the project is seen as a major step in Toyota’s expansion in India, where it already operates manufacturing plants in Karnataka.

Also Read: PVR INOX returns to profit with ₹187 cr Q4 gain

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Sensex tumbles 1,300 points, Nifty down 23,600 mark

Indian equity markets witnessed a sharp sell-off on Tuesday, with the Sensex falling over 1,300 points in intraday trade and the Nifty slipping below the 23,600 mark. The downturn extended losses for the fourth straight session, wiping out nearly ₹11 lakh crore in investor wealth over the period.

The market weakness was driven by a mix of global and domestic pressures, including rising crude oil prices, a weakening rupee, geopolitical tensions, and sustained foreign institutional investor (FII) selling. Higher oil prices have raised concerns over inflation and increased costs for companies, while currency depreciation added further pressure on sentiment.

Heavyweight stocks led the decline. Major losers included Infosys, TCS, HDFC Bank, ICICI Bank, and Tata Motors, all of which saw strong selling pressure. Banking, IT, auto, and financial stocks were among the worst-hit sectors, reflecting broad-based risk aversion among investors.

In contrast, defensive stocks provided limited support to the market. Shares of Sun Pharma, ITC, and Hindustan Unilever saw some buying interest, helping cushion the fall slightly, though not enough to reverse the overall negative trend.

Market analysts said the correction is largely driven by external factors rather than company-specific earnings weakness. Rising crude oil prices, triggered by global supply concerns and geopolitical tensions, have heightened fears of inflation and margin pressure for Indian companies.

Foreign investor outflows have also intensified the sell-off, as global funds continue to reduce exposure to emerging markets amid uncertainty and stronger safe-haven demand.

Also Read: Satya Nadella criticises OpenAI board in Musk trial

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US pumps 53 mn barrels from oil reserves

The United States has released about 53 million barrels of crude oil from its strategic petroleum reserves in a move coordinated with International Energy Agency (IEA) member countries to support global energy stability.

The decision comes as fuel prices remain under pressure due to global supply uncertainty and geopolitical tensions affecting oil trade routes. The additional supply is intended to help prevent sharp spikes in petrol and diesel prices.

Officials said the release is part of an emergency response mechanism under the IEA framework, which allows member nations to tap into strategic stockpiles during supply disruptions or market stress. The US plays a key role in such coordinated interventions due to its large reserve capacity.

The oil is being released from the Strategic Petroleum Reserve (SPR), the world’s largest emergency crude stockpile. It is designed to be used only in extraordinary situations when global supply is tight or disrupted.

Authorities said the immediate goal is to increase availability in the market and provide short-term relief to consumers facing higher fuel costs. Energy markets have remained volatile in recent weeks amid concerns over supply stability.

While such releases can help cool prices temporarily, they do not resolve underlying global supply-demand imbalances. Oil prices are expected to continue reacting to geopolitical developments and production decisions by major exporting nations.

Also Read: BofA pays ₹58.5 lakh to close SEBI case

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BofA pays ₹58.5 lakh to close SEBI case

Bank of America’s (BofA) securities arm in India has settled an insider trading-related case with the Securities and Exchange Board of India (SEBI) by paying a settlement amount of ₹58.5 lakh.

The case was linked to alleged lapses in complying with insider trading regulations, particularly the failure to properly maintain a Structured Digital Database (SDD), which is required to track access to unpublished price-sensitive information.

SEBI had issued a show-cause notice to the firm last year, alleging violations of insider trading and merchant banking rules. The regulator said the database is a key compliance tool designed to prevent misuse of confidential market information.

During the proceedings, the company filed a settlement application without admitting or denying the allegations. The matter was reviewed by SEBI’s internal committees and later approved for settlement.

The regulator confirmed that after payment of the ₹58.5 lakh fee, the case has been disposed of.

The settlement brings closure to the proceedings, though SEBI retains the right to take action in future if any misrepresentation or non-compliance is found.

Also Read: Afcons wins ₹7,544 cr Croatia rail project

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Rupee crashes to 95.50 mark against dollar

The Indian rupee fell to a record low of 95.55 against the US dollar on Tuesday as rising crude oil prices and global tensions continued to pressure financial markets.

The sharp fall came amid uncertainty over the fragile US-Iran ceasefire and fears of supply disruptions in global oil markets. Since India imports a major portion of its crude oil needs, higher oil prices usually increase pressure on the rupee and the overall economy.

Currency traders said strong demand for the US dollar and continued foreign investor selling in Indian markets also weakened the rupee. Foreign institutional investors have been pulling money out of equities due to global risk concerns, adding further pressure on the domestic currency.

The weakening rupee has raised concerns about higher import costs, especially for fuel and essential goods. Analysts warned that if crude oil prices continue to rise, inflationary pressure could increase in the coming months.

The Reserve Bank of India is believed to have intervened in the forex market to prevent a sharper fall in the currency. However, market experts expect the rupee to remain volatile as long as global tensions and oil prices stay elevated.

The falling rupee also affected stock markets, with benchmark indices trading lower during the session. Investors remained cautious amid fears of rising inflation and slowing global growth.

Also Read:  PM Modi calls for work-from-home, online classes

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PM Modi calls for work-from-home, online classes

Prime Minister Narendra Modi has called on companies, schools and colleges to adopt work-from-home and online learning models to help reduce fuel consumption as rising global crude oil prices increase pressure on the Indian economy.

The appeal comes amid growing concerns over the impact of tensions in West Asia on global energy markets. With crude oil prices remaining elevated, the government is focusing on fuel conservation measures to reduce import dependence and contain inflationary risks.

Modi urged businesses to encourage remote work, virtual meetings and hybrid office models wherever possible to cut daily commuting and fuel usage. Educational institutions were also advised to consider online classes and digital learning systems to reduce transportation demand.

The Prime Minister said fuel-saving efforts are necessary at a time when higher oil prices could affect transportation costs, inflation and overall economic stability. India imports a significant portion of its crude oil requirements, making the economy vulnerable to fluctuations in global energy prices.

The government clarified that there is no fuel shortage in the country and said the advisory is a precautionary step aimed at reducing unnecessary fuel consumption and easing pressure on foreign exchange reserves.

Experts believe widespread adoption of remote work could help businesses lower operational expenses linked to employee transportation and office infrastructure. However, sectors dependent on physical operations and manufacturing may face challenges in implementing such measures fully.

PM Modi also encouraged citizens to use public transport, metro services and carpooling to reduce petrol and diesel consumption. Analysts say the government’s focus on fuel conservation reflects increasing concern over the broader economic impact of rising oil prices, including pressure on inflation, logistics and consumer spending.

Experts say the move could accelerate the return of hybrid work models seen during the Covid-19 pandemic. Several companies, especially in the IT and services sectors, are expected to evaluate flexible work policies if fuel prices remain high for an extended period.

Also Read: Gold slips to ₹1.52 lakh, silver falls to ₹2.74 lakh

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Gold slips to ₹1.52 lakh, silver falls to ₹2.74 lakh

Gold prices saw a marginal decline on Tuesday, with the price of gold falling ₹10 to ₹1,52,120 per 10 grams in the domestic market. Silver prices also slipped by ₹100 to ₹2,74,900 per kilogram as investors tracked global market trends and geopolitical developments.

Despite the small fall, gold continued to trade near all-time high levels across major Indian cities. In Delhi, 24-carat gold was priced around ₹1.53 lakh per 10 grams, while rates in Mumbai and Kolkata remained at similar levels. Prices of 22-carat gold also stayed elevated, reflecting steady demand for the precious metal.

Market experts said uncertainty in global markets and rising tensions in the Middle East continued to support safe-haven buying in gold. Investors are increasingly turning to bullion as concerns over inflation, crude oil prices and global economic slowdown remain strong.

Silver prices, meanwhile, witnessed mild profit booking after recent gains. Analysts said silver continues to remain sensitive to both industrial demand and global commodity price movements, leading to fluctuations in domestic rates.

Jewellers said demand in the retail market remained stable due to the ongoing wedding season, although many buyers have become cautious because of the sharp rise in prices over the past few weeks. Some customers are choosing lighter jewellery or delaying purchases in anticipation of a price correction.

In the international market, gold prices remained firm as investors awaited signals from major central banks on future interest rate decisions. A weaker dollar and uncertainty in global financial markets also supported bullion prices.

Traders believe gold and silver prices may continue to remain volatile in the coming days due to changing global conditions and fluctuations in crude oil prices. Analysts advised investors and buyers to closely monitor market movements before making fresh investments or large purchases.

Even with minor declines, precious metals continue to attract strong investor interest as a safe investment option during uncertain economic conditions.

Also Read: Sensex falls over 450 points, Nifty slips below 23,700

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NTPC eyes huge nuclear power project in Bihar

NTPC is planning a large nuclear power project in Bihar as India looks to expand its clean energy capacity and reduce dependence on fossil fuels.

The proposed project is expected to come up in Bihar’s Banka district and could generate up to 2.8 gigawatts (GW) of electricity once fully developed. The first phase is likely to include two nuclear reactors of 700 MW each, with room for future expansion.

Officials said NTPC’s nuclear subsidiary is currently carrying out a feasibility study to examine land availability, water supply and technical requirements for the project. The findings will later be submitted to the Department of Atomic Energy for further approvals.

The project is being viewed as an important step in NTPC’s efforts to diversify beyond coal-based power generation. While the company remains India’s largest thermal power producer, it has been increasing investments in renewable and nuclear energy as part of the country’s broader clean energy goals.

India aims to significantly increase its nuclear power capacity by 2047 to meet rising electricity demand while cutting carbon emissions. Nuclear energy is becoming increasingly important because it can provide stable power generation unlike solar and wind energy, which depend on weather conditions.

Officials said the Bihar government has shown support for the proposal, including assistance related to water allocation for the plant. Reliable water access is considered critical for nuclear power operations.

Apart from Bihar, NTPC is also exploring nuclear projects in several other states as it plans to build a stronger presence in the sector over the coming decades.

Energy analysts believe the project could bring major investment and infrastructure development to Bihar if approved. The plant is also expected to create employment opportunities during both construction and operational phases.

Also Read: Nintendo hikes switch 2 prices despite strong sales

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Oil surges after Trump rejects Iran terms

Global crude oil prices jumped sharply on Monday after US President Donald Trump dismissed Iran’s latest ceasefire proposal, deepening concerns over a prolonged conflict in West Asia and possible disruptions to global oil supplies.

Brent crude crossed the $105-per-barrel mark, while US crude prices moved closer to $100 as traders reacted to rising geopolitical uncertainty. Market fears intensified over the continued disruption in the Strait of Hormuz, a critical shipping route through which a major portion of the world’s oil supply passes.

Iran’s response to the US-backed peace proposal included demands for sanctions relief, compensation for damages caused during the conflict, and broader guarantees regarding regional security. Trump reportedly rejected the terms, calling them unacceptable and indicating that negotiations remained far from a breakthrough.

The developments have reduced hopes of an immediate ceasefire and triggered fresh worries about stability in the Gulf region. Reports of continued drone attacks and military activity across parts of West Asia further added to market anxiety.

Energy markets responded quickly to the uncertainty. Analysts said fears of reduced oil movement through the Strait of Hormuz could tighten global supplies and push fuel prices even higher in the coming weeks. Countries heavily dependent on oil imports, including India, are expected to feel the pressure more sharply if prices continue rising.

The surge in crude prices has also renewed inflation concerns globally. Higher fuel costs could increase transportation and manufacturing expenses, potentially affecting consumer prices and slowing economic growth.

Financial markets across the world remained cautious following the developments. Investors moved towards safer assets such as gold and the US dollar, while equity markets witnessed volatility amid concerns over rising energy costs.

Also Read: Gold at ₹1.52 lakh, silver at ₹2.74 lakh