Category: Beyond

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REITs, InvITs may attract ₹11.6 lakh crore by 2030

India’s market for REITs and InvITs is poised for significant growth over the next few years, with investments expected to reach ₹11.6 lakh crore by 2030, according to a report by Avendus Capital. The projection highlights the growing importance of these investment vehicles in India’s evolving financial and infrastructure landscape.

The report estimates that the combined market value of REITs and InvITs could expand significantly over the next few years, supported by a strong pipeline of commercial real estate assets and infrastructure projects. Increasing investor awareness, favourable regulations and the search for stable, long-term returns are expected to fuel demand.

REITs have emerged as a popular option for investors seeking exposure to income-generating commercial properties such as office parks, shopping centres and warehouses. Similarly, InvITs provide access to infrastructure assets including roads, power transmission networks, renewable energy projects and telecom towers.

According to the report, institutional investors, pension funds, insurance companies and retail investors are likely to play a larger role in the sector’s growth. Global investors are also showing increasing interest in India’s infrastructure and real estate sectors due to the country’s strong economic growth prospects and expanding urbanisation.

Also Read: Nirmala Sitharaman highlights push for higher foreign inflows

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India’s exports hit six-month high in May

India’s trade deficit widened in May even as exports recorded their strongest performance in six months, reflecting the growing impact of higher imports on the country’s external trade balance.

Merchandise exports increased 18% from a year earlier to about $43.4 billion, supported by healthy demand for engineering products, electronics, chemicals and pharmaceuticals. The rise marked the highest monthly export figure in six months and signalled improved momentum in overseas shipments.

Despite the strong export performance, imports rose even more sharply to nearly $70 billion. Increased purchases of crude oil, gold, electronic goods and industrial raw materials pushed import bills higher and expanded the trade deficit to approximately $26.4 billion.

For policymakers, the figures present a mixed picture. On one hand, stronger exports point to resilience among Indian manufacturers and exporters. On the other, the widening trade gap highlights India’s dependence on imported commodities and consumer goods.

The export sector has benefited from improved global demand and efforts to diversify markets. Exporters have also expanded shipments in sectors where India enjoys a competitive advantage, helping offset uncertainties in parts of the global economy.

Economists noted that a higher trade deficit does not necessarily signal weakness if it is accompanied by strong economic growth. However, sustained increases in imports could influence the country’s current account position and currency dynamics.

Also Read: India raises export taxes on diesel, jet fuel

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India raises export taxes on diesel, jet fuel

The Centre has increased windfall taxes on diesel and aviation turbine fuel (ATF) exports while keeping the duty on petrol exports unchanged, reflecting changing trends in global crude oil and fuel markets.

According to a government notification, the tax on diesel exports has been raised, while the levy on jet fuel exports has also been increased. However, the export duty on petrol remains unchanged. The revised rates came into effect immediately.

India reviews windfall taxes on fuel exports and domestic crude oil production every fortnight, adjusting the levies based on international energy prices and refining margins. The mechanism was introduced in 2022 to ensure that a portion of extraordinary profits earned during periods of high global energy prices is shared with the government.

Officials said the latest revision was driven by movements in global fuel margins and crude oil prices. Refiners have benefited from stronger export economics in recent weeks, particularly in diesel and aviation fuel markets, prompting the government to recalibrate the tax structure.

For oil companies and refiners, changes in export duties can influence profitability and export decisions. Higher taxes generally reduce the gains from overseas sales, while lower levies can improve margins and encourage exports.

For consumers, the immediate impact is expected to be limited, as the taxes primarily apply to exports rather than domestic fuel sales. However, analysts note that government policy on energy taxation plays an important role in balancing domestic supply needs, inflation concerns and revenue generation.

The decision comes amid continued volatility in global energy markets. Crude oil prices have remained sensitive to geopolitical developments, supply concerns and shifts in demand from major economies. Market participants are also closely watching developments in the Middle East and production decisions by key oil-producing nations.

India is one of the world’s largest fuel exporters, with private and state-run refiners shipping significant quantities of diesel, petrol and jet fuel to international markets. Changes in export duties are therefore closely monitored by the energy industry.

Also Read: New Fed chief Kevin Warsh signals policy shift

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ISRO, DAE join hands to build 200-day Moon lander

India’s space programme is taking another ambitious step forward, with the Indian Space Research Organisation (ISRO) working on a new lunar lander designed to survive on the Moon for up to 200 days.

ISRO Chairman V. Narayanan said the space agency is collaborating with the Department of Atomic Energy (DAE) to develop technologies that will allow future spacecraft to function through the Moon’s harsh and prolonged nights.

Unlike Earth, a lunar night lasts about 14 Earth days and temperatures can plunge to nearly minus 180 degrees Celsius. These extreme conditions have posed a major challenge for space missions, as most landers and rovers are designed to operate only during the lunar daytime when solar power is available.

According to ISRO, the proposed lander will incorporate advanced power and thermal management systems to remain operational even when sunlight is unavailable. Scientists are exploring the use of nuclear-based energy solutions and other technologies that can keep critical systems functioning during extended periods of darkness and freezing temperatures.

The project builds on the success of India’s Chandrayaan missions, particularly Chandrayaan-3, which achieved a historic soft landing near the Moon’s south pole in 2023. While the Vikram lander and Pragyan rover exceeded their planned mission life, they were not designed to survive the extreme lunar night.

The mission is expected to help India gather valuable scientific data over a much longer period than previous lunar missions. A lander that can survive multiple lunar day-night cycles would allow scientists to study the Moon’s environment in greater detail and support future plans for sustained exploration.

The development is also aligned with India’s broader space ambitions, including plans for advanced lunar exploration, human spaceflight and participation in future international missions.

Also Read: Gold rises to ₹1,51,540, silver up to ₹2,65,100

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Gold rises to ₹1,51,540, silver up to ₹2,65,100

Gold prices rose on Tuesday, with the yellow metal climbing to ₹1,51,540 per 10 grams in the national capital. Silver prices also advanced by ₹100 to ₹2,65,100 per kilogram, supported by strong investor interest and industrial demand.

According to the latest retail rates, 24-carat gold was quoted between ₹1.50 lakh and ₹1.51 lakh per 10 grams in major markets, while 22-carat gold traded in the range of ₹1.37 lakh to ₹1.38 lakh per 10 grams. Silver prices remained above ₹2.60 lakh per kilogram across key cities, reflecting continued strength in the precious metals market.

On Monday, gold prices had fallen to ₹1,49,070 per 10 grams, while silver was trading at ₹2,59,900 per kilogram. The rebound in both precious metals on Tuesday indicates renewed buying interest amid firm global cues and safe-haven demand.

Bullion prices have remained elevated amid ongoing geopolitical tensions, uncertainty over the global economic outlook and expectations regarding future interest rate decisions by major central banks. Investors have increasingly turned to gold as a safe-haven asset during periods of market volatility.

Market participants are closely watching signals from the US Federal Reserve and other central banks for clues on the future direction of monetary policy. Lower interest rates generally support gold prices by reducing the opportunity cost of holding non-yielding assets.

International gold prices also remained firm, supported by a softer US dollar and continued demand from investors seeking protection against economic and geopolitical risks.

Silver, meanwhile, has benefited from both investment demand and strong industrial consumption. The metal is widely used in solar panels, electronics and electric vehicles, helping maintain its appeal even as prices remain near record highs.

Bullion dealers said domestic prices are influenced by international market trends, currency movements, import costs and local demand from jewellers and investors. Despite elevated levels, demand for precious metals has remained resilient.

Analysts expect gold and silver prices to remain sensitive to developments in global financial markets, geopolitical events and central bank policy announcements. With both metals trading close to historic highs, the precious metals market remains in focus for investors, traders and consumers alike.

Also Read: Sensex rises over 350 points, Nifty climbs above 23,900

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Rupee surges 58 paise to 94.60 against U.S. dollar

Rupee strengthened sharply by 58 paise to 94.60 against the US dollar in early trade on Monday, supported by a breakthrough peace agreement between the United States and Iran and a decline in global crude oil prices.

The domestic currency opened significantly stronger compared to its previous close of 95.18, as investors welcomed the easing of tensions in West Asia. Market participants said the peace deal reduced concerns over disruptions in global oil supplies, leading to a sharp fall in crude prices and improving sentiment toward emerging market currencies, including the rupee.

The agreement between the US and Iran includes the reopening of the Strait of Hormuz, a key route for global oil shipments. Following the announcement, Brent crude prices fell more than 4%, reaching their lowest levels in nearly three months. Lower oil prices are positive for India, which imports the majority of its crude oil requirements.

Currency traders said the rupee also benefited from a weaker US dollar and improved risk appetite among global investors. The dollar index slipped to a 10-day low as investors shifted towards riskier assets following the diplomatic breakthrough.

Analysts believe sustained lower oil prices could ease pressure on India’s current account deficit and inflation outlook, while also encouraging foreign capital inflows. Recent measures announced by the Reserve Bank of India to attract overseas funds have further supported sentiment in the currency market.

The positive developments also lifted Indian financial markets. Equity benchmarks Sensex and Nifty rallied strongly, while government bond yields declined as investors anticipated improved macroeconomic conditions.

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Gold price falls to ₹1,49,070, silver trades at ₹2,59,900

Gold prices eased slightly in the domestic bullion market on Monday, while silver also witnessed a marginal decline as investors remained cautious amid mixed global cues.

According to market data, gold prices fell by ₹10 to ₹1,49,070, while silver declined by ₹100 to trade at ₹2,59,900. The movement in prices was largely attributed to profit-booking after recent gains and subdued demand at elevated levels.

Bullion traders said gold prices remained near record highs despite the minor correction. Retail demand has been steady, but high prices have prompted many buyers to limit purchases to immediate requirements rather than making large investments.

Silver also continued to face selling pressure after a strong rally in recent weeks. Market participants noted that investors were booking profits, leading to a slight decline in prices. However, demand from industrial sectors continues to provide support to the white metal.

Across major cities, gold and silver prices remained largely stable with only marginal variations. Traders said the market is currently in a consolidation phase as investors await fresh triggers from global economic developments.

Internationally, precious metal prices are being influenced by movements in the US dollar, expectations regarding interest rate decisions by major central banks and ongoing geopolitical developments. A stronger dollar tends to make gold more expensive for overseas buyers, often limiting demand and putting pressure on prices.

Analysts said investors are closely monitoring inflation trends and global economic indicators for clues on future monetary policy. Any indication of interest rate cuts by major central banks could provide support to gold and silver prices in the coming months.

Despite the day’s decline, market experts remain positive on the long-term outlook for precious metals. Continued geopolitical uncertainties, central bank buying and the appeal of gold as a safe-haven asset are expected to support prices over the medium to long term.

Also Read: Sensex surges 1,100 points, Nifty reclaims 24,000

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Retail inflation edges up to 3.93% in May

India’s retail inflation accelerated to 3.93 per cent in May from 3.16 per cent in April, driven largely by an increase in food prices, according to official data released on Thursday.

The rise marks the first increase in consumer inflation in several months, although the figure remains below the Reserve Bank of India’s medium-term target of 4 per cent. The latest reading was also lower than market expectations of a sharper increase, offering some relief to policymakers and investors.

Food prices were the main contributor to the uptick, with inflation in key categories such as vegetables and other essential commodities showing signs of firming up after recent moderation. Economists said the trend reflects lingering supply-side pressures and seasonal factors affecting food costs.

Despite the increase, inflation remains well within the RBI’s comfort zone, supporting the central bank’s focus on boosting economic growth. Earlier this month, the RBI lowered interest rates and adopted a more growth-oriented policy stance amid easing inflationary pressures.

However, economists cautioned that risks remain. Rising global crude oil prices, weather-related disruptions and fluctuations in food supplies could exert upward pressure on prices in the coming months. The progress of the monsoon season will be closely watched, given its impact on agricultural output and food inflation.

For businesses and consumers, the data signals a relatively stable inflation environment, though concerns over input costs and commodity prices persist. Analysts said a sustained rise in food inflation could influence consumption patterns and affect household spending.

The latest inflation figures are unlikely to trigger an immediate shift in monetary policy, but they reinforce the need for continued monitoring of price trends. Markets will now look to upcoming economic data for clues on whether inflation remains contained or begins to move higher in the second half of the year.

Also Read: Rocket Lab, CoreWeave join Nasdaq-100 Index

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Avataar introduces indigenous AI video platform

Indian AI startup Avataar has launched Varya, which it describes as India’s first indigenous distilled AI video generation model, marking a significant step in the country’s efforts to build advanced artificial intelligence technologies locally.

The launch comes under the government-backed IndiaAI Mission, which aims to strengthen India’s AI ecosystem and reduce dependence on foreign-developed models.

Varya is designed to generate high-quality videos from text and image prompts while requiring significantly lower computing resources than conventional AI video models. Avataar says the model uses a “distillation” process, allowing it to deliver strong performance with greater efficiency and lower infrastructure costs.

According to the company, the technology can create realistic visual content for applications ranging from e-commerce and digital marketing to education and entertainment. The startup believes the model can help businesses produce video content more quickly and affordably while maintaining quality.

The launch is being seen as an important milestone for India’s AI ambitions, particularly at a time when countries and companies worldwide are racing to develop their own generative AI systems. Most leading AI video-generation models currently originate from the United States or China, making Varya a notable domestic alternative.

Avataar said the model has been developed using Indian research and engineering talent and aligns with the broader goal of building sovereign AI capabilities. The company also emphasised that efficient AI models are becoming increasingly important as organisations seek to balance performance with the high costs of computing infrastructure.

The IndiaAI Mission has been encouraging startups, researchers and technology firms to build foundational AI technologies within the country. Varya’s launch is one of the first major products to emerge from that ecosystem.

As demand for AI-generated content continues to grow, Avataar hopes its new model will enable Indian businesses and creators to access advanced video-generation technology while contributing to the development of a stronger domestic AI industry.

Also Read: Vedanta’s demerged businesses set for market debut

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Rocket Lab, CoreWeave join Nasdaq-100 Index

Two of Wall Street’s fastest-rising companies, Rocket Lab and CoreWeave, are set to join the Nasdaq-100 Index as part of its latest annual reconstitution, marking a significant milestone for both firms.

The Nasdaq-100 tracks the largest non-financial companies listed on the Nasdaq exchange and is widely followed by investors worldwide. Inclusion in the index often boosts a company’s visibility and can lead to increased demand for its shares from funds that track the benchmark.

Rocket Lab, known for its satellite launches and space technology services, has seen strong investor interest as the commercial space industry continues to expand. CoreWeave, meanwhile, has emerged as one of the biggest beneficiaries of the artificial intelligence boom, providing cloud-computing infrastructure used to train and run AI models.

The two companies will be joined by three other firms entering the index during the reshuffle. The changes reflect shifting investor priorities, with technology, AI and next-generation infrastructure companies gaining greater prominence in public markets.

The annual rebalancing also means several companies will exit the index to make room for the new entrants. Such adjustments are designed to ensure that the benchmark continues to reflect the evolving makeup of the technology-heavy Nasdaq market.

The inclusion in the Nasdaq-100 is a recognition of the rapid growth achieved by these companies over recent years. For CoreWeave, the move underscores the growing importance of AI-related businesses, while Rocket Lab’s addition highlights increasing investor confidence in the commercial space sector.

Shares of companies selected for inclusion often receive a boost ahead of the changes taking effect, as exchange-traded funds and institutional investors adjust their portfolios to match the index.

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