Daily Market News Update — 30-01 July 2026

Midnight News Update: 30-01 Jul 2026

The Controller General of Accounts (CGA) published May update for fiscal deficit, which tapered to 9.6% of full year target, compared to 21.4% in April. However, the May improvement in fiscal deficit was helped by the ₹2,86,588 crore inflow from the RBI dividend, which was accounted for in May fiscal deficit numbers. As a result, the revenue deficit and the primary deficit dipped into the negative zone. However, the pressure on government finances continued. Total expenditure this year is already 16.5% of full-year target, while receipts are lower than last year.

When Indian PM Modi meets his Japanese counterpart, Takaichi, one of the key items on the agenda will be to modify the underlying for bilateral trade to Yen-Rupee. It is one more effort to move away from the US dollar. PM Modi will host his Japanese counterpart in New Delhi from July 01 to July 03. Currency cooperation will be formally included into the joint statement by the two leaders. Japanese entities will be allowed to open accounts with Indian banks so that cross border payments can be settled in Yen and Rupees. This will cut exchange conversion costs.

The news is not great on the monsoon front with the year being the fifth driest on record in the last 125 years. June rainfall was 39.8% below normal; and that has slowed sowing of rice, corn, cotton, and Soybean. The delay was caused by the late advance of the Southwest Monsoon winds. India got 99.5 mm of rainfall in June against the long-period normal of 165.3 mm. In India, the southwest monsoons feeds the Kharif sowing and is key to the foodgrain output as well as to food inflation in the year. Nearly 70% of crucial water resources depend on rains to replenish.

In the aftermath of the West Asia shock, India is cutting reliance on Middle East oil flows. Instead, India plans to tap the oil spot market more aggressively. Buying oil from the spot market opens up purchases from markets as wide and dispersed as Brazil and Guyana. India continues to rely on imports for nearly 85-90% of its crude requirement. The oil refiners will now prefer to buy more from spot traders than relying on long-term contracts with the Gulf region. Currently, refiners source 50% of their crude via long-term contracts, which will largely shift to spot markets.

The Semiconductor Mission 2.0 has provided a ₹1,25,000 crore boost to India’s chip dreams. India will now concentrate on establishing itself as a global chip-making hub; focusing on equipment, materials, indigenous designs, and resilient supply chains. This allocation is sharply higher than ISM 1.0, which had earmarked ₹76,000 crore for this mission. Only the final cabinet approval is pending. The Semiconductor Mission 2.0 will prioritize indigenous chip design, productization, and attracting ecosystem partners. Investing in talent will be another immediate priority.

As Amazon doubles down aggressively on the quick commerce opportunity in India, the impact is visible in the stock prices of Eternal and Swiggy. From its peak in September-October last year, Swiggy has plunged 47%, while Eternal is down 28%, resulting in market cap erosion to the tune of nearly $15 billion. However, Indian investors continue to be bullish on Eternal, calling it more of a short-term blip in demand. Amazon is looking to expand its quick commerce franchise to over 300 Indian cities and towns as it pledges $13 billion to AI and cloud to support quick commerce.

Oyo will use nearly 75% of the proceeds of its ₹6,650 crore IPO to repay loans. The company will repay borrowings to the tune of ₹4,988 crore out of the IPO proceeds, with the balance funds earmarked for general corporate purposes. For the first 9 months of FY26, Oyo had reported net profits of ₹748 crore, although analysts are not too sure if that would be sustainable. Having filed its DRHP confidentially and got approval from SEBI, Oyo has now gone ahead and filed the UDRHP or the Updated DRHP with SEBI. There could be a pre-IPO placement of ₹1,330 crore.

India Hotels will invest ₹7,500 crore as capex over the next 5 years, as several structural drivers combine to boost the hospitality sector. This was disclosed by N Chandrasekaran at the 125th AGM of IHCL. Of this capital outlay, nearly ₹2,000 crore outlay is reserved for Taj Bandstand. The capex will be largely funded by internal accruals. Hospitality in India is benefiting from rising disposable income levels, sustained investments in infrastructure, aspiring consumers, and investments in infrastructure. The stock of IHCL has been an outperformer in the last few years.