Daily Market News Update — 10th-11th June 2026

Midnight News Update: 10-11 Jun 2026

In a boost for the partnership between Reliance Industries and Meta Platforms, the latter will lease 168 MW AI-enabled data centre in India from Reliance. The data centre will be delivered to Meta Platforms in 2 years, with an option to scale up. In addition, Meta is already allying with two clean energy companies in India for 1GW renewable energy. The facility will be located in Jamnagar. The partnership between Reliance and Meta goes back to 2020, when Meta had invested $5.7 billion in Jio Platforms. Global Hyperscalers will bring $400 billion into India data centre business.

Equity mutual fund flows into India faltered by over 40.4% in May 2026 to just ₹22,908 crore. The inflows were, once again led by flexi-cap funds, small cap funds, and mid-cap funds in that order. Debt funds saw heavy selling of ₹(96,949) crore across the short and long end of the yield curve. Flows into hybrid funds were modest at over ₹10,560 crore; led by arbitrage funds and multi-asset allocation funds. The big disappointment was passive funds; with index ETFs and gold funds seeing net outflows in May 2026. Overall, mutual funds saw net redemptions of ₹64,021 crore.

In FY27, the government may be called upon to prepare itself for a spike in the subsidy bill. The fertilizer subsidy bill alone is likely to spike to ₹3.4 trillion, plus another ₹1.23 trillion as fuel subsidy. The government has held on to its fiscal deficit of 4.3% of GDP, but that looks increasingly tough to achieve. While the government has earned ₹2.87 trillion from RBI dividends, it will look to boost non-tax revenues from disinvestments and asset monetization. Most likely, the spending priorities are likely to be reviewed, with greater focus on capex, than on revenue spending.

In an interesting move, HDFC Bank rolled out the red carpet for NRIs, by raising the FCNR(B) deposit rates by 235 basis points to 6.0% for tenures between 3-5 years. The big advantage is that the RBI forex scheme will take care of the hedging costs, so the entire 6% is earned by the NRIs, which should make these Indian deposit rates very attractive to NRIs. That is substantially higher than the US yield of 4.5%, with hedging costs taken care. Unlike NRE deposits, which are rupee deposits, the FNCR(B) deposits are held in hard currencies and are attractive to global investors.

US consumer inflation for May 2026 touched a 3-year high of 4.2%. Now, US inflation is a good 220 basis points higher than the Fed target of 2.0%. For the month, the energy costs spiked by 23.5%, largely due to the ongoing Iran conflict. Gasoline prices soared by 40.5% in May, leading to a huge inflation pressure on the American people. It remains to be seen how the new Fed chief, Kevin Warsh, handles the sharp spike in Inflation, and whether he opts for a rate hike to contain the price inflation. Food inflation and core inflation continued to be sober in the US inflation basket.

SpaceX IPO seems to be seeing growing demand, with substantial interest coming from the wealth funds based out of Saudi Arabia and Kuwait. Against the issue size of $75 billion, the IPO of SpaceX has already attracted buying interest of $250 billion. SpaceX is part of the Elon Musk business empire and includes the satellite launch, rocket launching and artificial intelligence business. For its artificial intelligence capabilities, SpaceX has pegged the potential size of the opportunity at closer to $23 trillion. SpaceX will set the tone for other AI-IPOs like Anthropic and OpenAI.

With respect to lending to REITs (real estate investment trusts), the RBI has restricted the banks to lending only to SEBI-registered REITs with around 80% or more of cash positive assets. This will apply to REITs and to INVITs too. Such REITs must also be listed on recognized stock exchanges. To check concentration risk, RBI has also stipulated that a bank’s lending to REITs cannot exceed 49% of the value of the REIT assets. In addition, all such loans by banks must be full secured. RBI has tried to draw a fine balance between the need for credit and the need for prudence.

For FY26, Nestle India has paid a license fee of ₹1,024.50 crore to its Swiss parent. It additionally paid withholding tax of ₹102.47 crore on the general license fees. Paying royalty to the parent is standard practice for using their networks, technology, best practices, and brands. Nestle pays a royalty of 4.5% of net sales to the parent. Last year, shareholders of Nestle India had rejected a proposal to raise the royalty to the parent by 0.15% each year to take it to 5.25% in 5 years and sustain at that level. Revenue and sales of Nestle India were up 14.2% in FY26.