June 05, 2026

 

TOP NEWS

 

RBI Monetary Policy expectation: We believe that the RBI is likely to keep the repo rate unchanged while maintaining a neutral stance that shall allow it to have flexible approach in dealing with dynamic domestic and global macro environment. Retail inflation remains below the RBI's 4% target; however, challenges emerge from concerns over rupee depreciation, recent fuel price hikes, potential food inflation from weather-related risks, and global commodity volatility. The central bank is expected to closely monitor the rupee and liquidity conditions rather than use interest rates aggressively to defend the currency. Inflation projections could be revised marginally upward while alterations to growth estimates would be monitorable, the emphasis is likely to remain on balancing growth support with price stability. Overall, the policy is expected to be status quo on rates, vigilant on inflation, and supportive of financial stability and growth.

 

Lupin: United States Food and Drug Administration (US FDA) has approved its ranibizumab, RanluspecTM (ranibizumab-hkdz), as an interchangeable biosimilar referencing Lucentis® (Genentech).

 

Tata Motors Passenger Vehicles: Chairman N Chandrasekaran said the company should target a market share of over 20% by 2030 if India’s passenger vehicle market reaches 6 million units. Speaking at the company’s dealer business planning meet in Goa, he reaffirmed Tata Motors’ ₹35,000 crore investment commitment through 2030 and said the plan could be recalibrated as needed, while highlighting the company’s rise from calls to exit the passenger vehicle business in 2017 to becoming one of the country’s top two automakers.

 

IndiGo has announced a temporary suspension of flights to six international destinations and confirmed the discontinuation of its Manchester service, citing weak seasonal demand, rising operating costs and continuing airspace restrictions. IndiGo said it will temporarily suspend operations to Langkawi, Krabi, Ho Chi Minh City, Hong Kong and Shanghai from July 1, 2026, and to Siem Reap from July 3, 2026. The suspension will remain in place until September 30, with bookings set to resume from October 1.

 

ICICI Bank: The bank said that it has received a warning letter from SEBI in its capacity as a custodian after permitting a foreign portfolio investor (FPI) to repatriate funds before the completion of the mandatory lock-in period prescribed under the Voluntary Retention Route (VRR)

 

CG Power and Industrial Solutions: The company has commissioned its new extra-high-voltage (EHV) switchgear manufacturing facility in Nashik, Maharashtra. The new unit expands the company’s capabilities beyond its existing Ambad facility, which manufactures EHV circuit breakers ranging from 33kV to 800kV.

 

HDFC Asset Management Company: HDFC Mutual Fund has temporarily restricted lump-sum subscriptions in its Gold ETF and Gold ETF Fund of Fund (FoF), citing prevailing economic and market conditions.

 

Aurobindo Pharma: the company received a final approval from the US Food & Drug Administration (USFDA) to manufacture a drug for arthritis. The drugmaker, in a regulatory filing, said it got the nod to manufacture and market Tofacitinib Tablets, 5 mg and 10 mg, which are bioequivalent and therapeutically equivalent to the reference listed drug (RLD), Xeljanz Tablets, 5 mg and 10 mg, from PF Prism C.V.

 

 

MACRO WRAP

 

·       Trump is reportedly reluctant to escalate into a full-scale conflict with Iran, maintaining the truce unless US troops are directly targeted. However, US–Iran negotiations have made little progress and are effectively stalled, largely due to spillovers from the Israel–Lebanon conflict. A US-mediated ceasefire between Israel and Hezbollah collapsed after the group rejected terms, demanding a full Israeli withdrawal, even as Israeli strikes in south Lebanon continued. Despite claims of outreach to Washington, no agreement has been reached. The breakdown in Lebanon has further weighed on broader diplomacy, with Iran’s foreign minister confirming talks have stalled.

·       The DJIA and the S&P500 rose 1.7% and 0.4% respectively, while the Nasdaq Composite Index fell 0.1%. The Eurostoxx 50 gained 0.8%. The Dollar Index slipped 0.1% to 99.42. EUR-USD rose 10 pips to around 1.1610. The US 2Y yield fell 4bp to 4.04% and the 10Y yield fell 2bp to 4.47. The German 10Y Bund yield was little changed at 3.02%. The UK 10Y Gilt yield fell 3bp to 4.90%. Brent crude oil prices fell 2.8% to USD95.03, its sharpest single session decline in several weeks. Gold rose 0.9% to USD 4,475.

·       Data watch: we get the May non-farm payrolls (NFP) and the market consensus is for an increase of 88k vs 115k in April. The unemployment rate is expected to hold steady at 4.3%. We also get the average hourly earnings.