Daily Market News Update — 22nd-23rd July 2026

Midnight News Update: 22-23 Jul 2026

There are some encouraging trends in the FCNR(B) and other foreign inflows. As of date, nearly $20.7 billion has flowed in since the monetary policy was announced by the RBI last week. Out of this total inflow, FCNR(B) deposits were $17.4 billion, OFCBs were $2.0 billion, while ECBs were at $1.3 billion. That takes the total inflows through the RBI special window to $20.7 billion since the scheme was announced. While RBI will absorb full currency risk in case of FCNR(B) deposits, it will be partially covered in ECBs and OFCBs. The pace has picked up in recent weeks.

Indian government is weighing allowing airport operators to also own airlines to reduce duopoly effect in aviation; dominated by Indigo and Tatas. This will allow Adani group and GMR group to foray into airlines. While Akasa and SpiceJet are functional, they are unable to pose serious competition to the duopoly. Current regulations bars airport operators from owning more than 10% in an airline. The Ministry of Civil Aviation will need legal clearance for this change from the Ministry of Law. This raises a conflict-of-interest issue in allocation of slots to airlines.

Trump is unwilling to let Indian exporters breathe in peace. He has now proposed 100% tariffs on generic drugs exported to the US after 2 years, which will eventually be raised to 200%. The good news is that there will be a 2-year moratorium, during which period there will be zero tariff on these generic drugs. The idea is to encourage drug-makers to set up manufacturing facilities in the US, rather than just exporting to the US. For Indian pharma companies, this 2-year window gives enough time to fully reassess supply chains as well as future investment plans.

Brent Crude prices spiked to a 6-week high of $95/bbl, a sharp rise from $71/bbl at the start of July. Clearly, the worsening geopolitical situation; with the US and Iran launching all-out attacks on each other, has led to a spike in risk premium for oil. The bigger concern is; Iran may now depend on the Houthis and Hezbollah to also block the Bab Al Mandeb, the crucial route connecting the Red Sea with the Mediterranean Sea. While the US has been targeting the Iranian military sites, Iran has been striking on the US sites across the Middle East and West Asia.

While the debate over the merits of old tax regime (OTR) versus new tax regime (NTR) continue, nearly 90% of Indian tax filers have quietly shifted to the NTR. Despite losing out on exemptions and rebates, the NTR helps through sharply lower tax rates. The new tax regime has become popular after government permitted higher standard deduction and benefits of employer contribution to provident fund under NTR. It is estimated that fiscal 2025-26 could see anywhere between 90% and 95% of tax filers opting for the NTR. It is becoming the default choice.

TVS group is looking to hive off its financial services business into a separate entity for better capital allocation and greater value unlocking. However, the management has not committed to any time line for the same. The financial services portfolio of TVS group includes TVS Credit Services and Home Credit India. Both these NBFCs offer a range of lending solutions to customers; ranging from two-wheelers loans to car loans to CV loans. TVS group also recently acquired a 9% stake in Jana Small Finance Bank. It has also entered asset management through purchase of PGIM.

According to a recent report by Equirus, India’s green hydrogen market could grow 14 times from the current levels, with a 56% drop in costs by year 2030. Cost of producing green hydrogen is likely to fall from ₹410/KG in 2023 to ₹180/KG in 2030. That price drop alone is likely to take the green hydrogen business size in India to $2.8 billion. The fall in costs is likely to be driven by competitive RE tariffs and high solar irradiation. Favourable regulatory policy support will also help. Centre also has plans to incentivize the manufacture of electrolyzers and fuel cells to cut imports.

The outlay of ₹1.27 trillion to Semicon 2.0 will come as a blessing in disguise for EMS companies. This will directly benefit companies like Dixon Technologies, Cyient DLM, and Syrma SGS. Semicon 2.0 combined with the MPMS is likely to position India as a hub for electronic manufacture. With a solid ecosystem in place, it will lead to a rush of orders for these electronic manufacturing service companies. This will also help India reduce the gap with China and Taiwan on this front. Semicon 2.0 is more broad-based and includes chip materials, specialty gases, modules, and PCBs.