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Kochi Mayor claims effective pre-monsoon works spared city of major waterlogging

Despite the incessant rain, there has been no flooding, unlike in the past when it disrupted traffic, says V.K. Minimol

India takes big moves to attract foreign investments in bonds: How will this impact stock market?

As India sees incessant FII selloff so far this year, the government and RBI announced a slew of measures to ease foreign investments in government securities, with analysts suggesting that these may provide some short-term support for Dalal Street.India scrapped the long-term capital gains tax on investments by foreign institutional investors (FIIs) in government securities through an ordinance issued on Friday. The government has now exempted FIIs from tax on any interest income from government securities, as well as capital gains arising from their sale, exchange or transfer, according to an official gazette. Separately, while announcing the outcome of the MPC meeting, RBI Governor Sanjay Malhotra also unveiled a series of measures to boost FPI investments, including expanding the Fully Accessible Route (FAR) to cover new issuances of 15-, 30- and 40-year government bonds.Limits on investments by NRIs and OCIs in equity instruments without Sebi registration are being raised, allowing them to invest larger amounts without regulatory registration. The facility is also proposed to be extended to all Persons Resident Outside India (PROIs), bringing them on par with NRIs and OCIs. This came as the RBI kept the repo rate unchanged at 5.25%What does this mean for Indian stock market?The proposal to increase investment limits for NRIs and OCIs in listed equity instruments without Sebi registration, and to extend the same facility to all individual Persons Resident Outside India (PROIs), is a significant step toward broadening participation in Indian capital markets, which is expected to improve market depth, liquidity and long-term capital inflows, said Arun Poddar, CEO of Choice International.He highlighted that equally important is the removal of capital gains tax on government securities investments for foreign investors. “This move strengthens the attractiveness of India's bond market and could encourage greater foreign participation in government debt. At a time of heightened global volatility, these measures reinforce investor confidence, support capital inflows, and reaffirm India's commitment to building deeper, more globally integrated financial markets, with the policy rate expected to remain low for an extended period,” he said.The government's move to exempt Foreign Institutional Investors (FIIs) from capital gains tax on any interest earned from government securities is “highly positive” for the capital markets, said Sumit Singhania, Head of Research at Bajaj Broking. “This fiscal cushion arrives at a crucial time, offering a strong shield to domestic markets as the RBI chief warned of volatile forex markets driven by shifting global sentiments,” he added.The policy is distinctly positive for bond markets and well-capitalized Banks and NBFCs, which benefit from targeted hedging subsidies and systemic stability, according to Archit Doshi, Senior Vice President at PL (Prabhudas Lilladher) AMC. “Conversely, one should be underweight rate-sensitive sectors, which remain highly vulnerable to margin compression, higher inflation expectations, and the threat of the RBI reaching its tightening tipping point,” he said.Rajeev Radhakrishnan, CFA, CIO of Fixed Income at SBI Mutual Fund, also said that the announcements aimed at enabling more dollar inflows are more significant in the near term, even though the overall policy stance has been broadly in line with expectations. “The concessional swap facility should help stabilise short end market rates and the foreign exchange market in the near term,” he said.For equities and debt markets, the measures to attract FII inflows are supportive of liquidity and inflows, while for the rupee, they signal a clear intent to anchor expectations and reduce volatility amid global oil shocks and sustained foreign selling pressure, said Ajit Mishra, Senior VP of Research at Religare Broking.Sachin Bajaj, Chief Investment Officer at Axis Max Life Insurance, also said that the initiatives are expected to support capital inflows, deepen domestic bond markets, and provide support to the Indian rupee over the short to medium term.RBI’s hawkish tone and the Indian stock marketWhile the measures taken to attract FII inflows in the debt market will likely provide short-term support for Dalal Street, analysts advised caution over the RBI’s hawkish policy stance. While the RBI maintained its policy repo rate as per expectations, the tone was much more cautious than in previous meetings.Sachin Bajaj highlighted that the policy emphasised preserving macroeconomic stability amid the prevailing global macroeconomic environment. “We believe there are significant risks to inflation in the coming months due to the pass-through of higher commodity prices to consumers and elevated food prices resulting from a below-normal monsoon. Going forward, there is a risk of an upward revision in inflation projections, and given the evolving global backdrop, we believe the RBI is likely to maintain a prudent, data-dependent approach. Future policy actions will be contingent on evolving growth-inflation dynamics and global developments,” he added.Also read: Explained: Sebi's Rs 15.15 lakh crore revenue inflation allegations against Rajesh ExportsWhile hawkish rhetoric without an accompanying rate hike provides a temporary respite for equity markets, it does not constitute an unequivocal endorsement of investment, particularly in highly rate-sensitive sectors such as real estate, automotive, and consumer discretionary goods, said Vipul Bhowar, Senior Director, Head of Equities at Waterfield Advisors.“Should inflation necessitate a rate increase later this year, these sectors are likely to experience pressure on both margins and demand. For investors, the current strategy emphasises capital preservation by focusing on high-quality equities with strong pricing power. This cautious approach is designed to navigate the prevailing geopolitical uncertainties until conditions stabilise,” the analyst added.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

BJP chief Nitin Nabin accepts Annamalai’s resignation from party’s membership

The developments comes three days after Mr. Annamalai held meetings with Union Home Minister Amit Shah, Mr. Nabin, and national general secretary of the party B.L. Santhosh and submitted his resignation letter to the party leadership on June 2

Annamalai to disclose his future course in a social media interaction on Friday

Annamalai has been camping in Delhi since Monday, where he met Union home minister Amit Shah, BJP national president Nitin Nabin and national organizational general secretary B L Santhosh to convey his decision to quit the party. Sources said he has extended his stay in the national capital to meet Prime Minister Narendra Modi.

Belagavi family counselled to take back old woman it abandoned

Laxmi Hebbalkar seeks strict legal action against a NWKRTC employee from Salolli village Santosh Katti for abandoning his mother

Hard work pays in Civils preparation: Santhi Kumari

‘27k vehicles in Kullu’: Tourist surge triggers traffic congestion in Manali

Manali is experiencing a significant surge in tourists seeking refuge from scorching summer heat in the plains. Visitors from Rajasthan and Punjab are flocking to the hill station, leading to high hotel occupancy and bustling local markets. Despite some traffic, the pleasant weather and natural beauty are drawing crowds, promising a robust tourism season ahead for local businesses.

CID Reaches Abhishek Banerjee's Residence, Issues Summons In MLA Signature Forgery Case

A four-member CID team visited Banerjee's residence, 'Santiniketan', on Harish Mukherjee Road in Kolkata to serve the notice.

Santanu Sen resigns as TMC national spokesperson, slams party over R.G. Kar row

Mr. Sen, himself a former student and doctor associated with R.G. Kar, had emerged as one of the few TMC leaders to publicly raise questions over alleged irregularities at the institution following the incident.

Santanu Sen resigns as TMC national spokesperson

TMC Faces Second Resignation In 2 Days As Santanu Sen Quits Spokesperson Role

TMC leader and former Rajya Sabha MP Santanu Sen resigns as national spokesperson amid post election turmoil, a day after TMC MP Kakoli Ghosh Dastidar quit organisational posts.

Another jolt to Mamata as TMC's Santanu Sen quits party post day after Kakoli Ghosh Dastidar

Santanu Sen resignation, addressed to Mamata Banerjee, stated that his mind no longer agrees to support TMC as a national spokesperson on “immoral acts”.

Fruit vendor found dead in Tirupattur

On Wednesday, a few residents noticed Santhammal in a pool of blood inside a godown

Shimla Orchard Owner To Get Over Rs 1 Crore Compensation For Landslide Damage

During the incessant rains that lashed the region in May 2025, Rathore's orchard was severely damaged.

Day-long Vasanta Gaana Lahari in Dharwad on May 30

Apple faces Indian engineer’s bias lawsuit

Apple Inc. lost an early round in a discrimination lawsuit brought in the U.S. by a female engineer from India who says her two managers -- one from her country, the other from Pakistan -- treated her as they would in their own countries: as a subservient.The woman’s case in California state court is the latest to allege workplace bias in Silicon Valley that focuses on cultural prejudices of some tech workers from South Asia. Cisco Systems Inc. is fighting a suit brought by California’s civil rights agency alleging bias against a member of India’s so-called lower castes, known as Dalits.Anita Nariani Schulze is part of the Sindhi minority -- she is Hindu, with ancestry in the Sindh region of what is now Pakistan. Her complaint alleges that her senior and direct managers, both male, consistently excluded her from meetings while inviting her male counterparts, criticized her, micromanaged her work, and deprived her of bonuses, despite positive performance evaluations and significant team contributions.Schulze claims the managers’ animus reflects sexism, racism, religious bias and discrimination on the basis of national origin. The Sindhi Hindu nationality is “known for its technical acumen” and its gender equality, she says, which “exacerbated the managers’ discriminatory treatment.”In a tentative ruling on Wednesday, Santa Clara County Superior Court Judge Sunil R. Kulkarni rejected Apple’s request to toss out the suit. While not ruling on the merits of the case, Kulkarni said Schulze had adequately supported her legal claims. Apple had argued her claims weren’t specific enough and were based on stereotypes.But the judge rejected Schulze’s request to represent a class of female Apple employees who suffered job discrimination over the last four years. He agreed with Apple that she didn’t show a pattern of discrimination that could be applied to a broader group.It wasn’t clear from the court’s docket whether the judge will hold a hearing Thursday before issuing a final ruling.Apple didn’t immediately reply to a request for comment.In the Cisco case, the California Department of Fair Employment and Housing alleged that two Indian employees at the San Jose-based company discriminated against a Dalit co-worker on the basis of caste.Cisco has denied the claims, insisting it has “zero tolerance for discrimination.” It also said the lawsuit should be tossed out because caste isn’t a protected category under U.S. civil rights law.