Daily Market News Update — (11th-12th June 2026)

Midnight News Update: 11-12 Jun 2026

In an interesting move, the European Central Bank (ECB) raised its benchmark rate by 25 bps to 2.25% to combat rising inflation. The Gulf war had fuelled prices of crude oil and that had led to a surge in oil inflation. Economists see the ECB raising rates by another 25 bps in its next meeting in September 2026. While bond yields were not impacted, the Euro also remained steady versus the dollar. ECB has taken the lead in raising rates, even as the Fed is still pondering on the right way forward. It reflects the fear that even after the war, oil will stay elevated for some time.

India is betting heavily on the latest zero-cost hedging swap window to boost NRI deposit flows. Under the new FCNR(B) amendments for a period till September 2026, the hedging cost will be borne by the RBI so the bank can go ahead and offer the best rates to NRIs on FNCR deposits without worrying about hedging costs. HDFC recently took the lead, announcing 6.0% on its FCNR (B) deposits, a full 2.4% higher than its existing rate. Bond markets are of the view that at 6% currency risk-free returns, NRIs can leverage and deposit the money in FCNR deposits.

According to a note by Citigroup, India’s allocation among global emerging markets has fallen to a 5-year low. India’s weight in the GEM fund selection has fallen from 20% in mid-2024 to just 11% today. A big chunk of the allocation shift has moved to countries like Taiwan, South Korea and China. Not only are these markets more reasonably valued, but they also bring the added edge of having several AI candidates in their offering. However, Citigroup still remains positive on Indian equities, although it has lowered its price target for Nifty 1-year levels to 26,000.

The 4 companies that are being demerged from Vedanta Ltd, as part of the restructuring plan, will list on the bourses on 15-June. Vedanta expects that the sum of parts valuation will be greater than the whole, adding value to shareholders. While the parent company still remains a listed entity, the new listings will be Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium, and Vedanta Iron & Steel. Shareholders will get 1 share of each of the demerged entities, for every 1 share held by them. The company had reported stellar results for FY26, amid robust commodity prices.

In the month of June 2026, Gold and Silver ETFs have fallen by more than 12%, amid inflation concerns and reduced demand for gold globally. Higher inflation raises the opportunity cost of holding gold and silver, and makes them less attractive. Spot gold has dropped 22% since the war started and is down 28% from its peak. Silver is nearly 40% down from peak levels. Both the metals have fallen below their 200-DMA, triggering additional selling. However, commodity experts are of the view that this correction is more about leveraged positions than about precious metals.

Retail bodies have flagged illicit trades by ecommerce players and have called for an immediate halt to the same. Apparently, ecommerce players have been guilty of counterfeit products and unfair pricing; apart from mind-games played by ecommerce platforms to boost their sales. Not only do ecommerce players use predatory pricing tactics, but also use surge pricing tactics to recover these costs. In the process, small retailers appear to be the biggest losers. However, there is little regulators can do in this case, as it is more a case of creative destruction of markets.

OPEC has once again lowered its oil demand forecast for year 2026 to just about 9,70,000 barrels per day (bpd). However, OPEC does expect oil demand to bounce back in 2027. The blockade of the Straits of Hormuz has already created a major supply crunch of oil and gas across Asia. The war has also created a lot of demand destruction and so oil demand will be lower this year. Across the Middle East, it is not just about the Straits of Hormuz being blocked, but rocket and drone attacks by Iran have forced most of the oil plants in the region to go slow due to safety concerns.

Even as auto demand gained substantially from GST cuts, the auto ancillary space has continued to grow at a robust rate of 11% CAGR between 2016 and 2026. It was fuelled by higher exports and increased vehicle content due to expansion. Between FY26 and FY28, the auto ancillary companies are likely to grow PAT at a CAGR of 21%. Auto component companies have also seen their exports more than triple in the last 10 years. The net debt to EBITDA improved from 0.49 in 2022 to 0.18 in current fiscal year. Lower leverage and better working capital management also helped.