Daily Market News Update — 08th-09th June 2026 (Apologies for the Late Report Today)

Midnight News Update: 08-09 Jun 2026

Like in previous years, India recorded a current account surplus in Q4FY26, as per data put out by RBI, restricting the full year current account deficit (CAD) to just 0.6% of GDP. A combination of strong services exports and strong remittances by NRIs led to a $7.4 billion current account surplus in Q4. This is despite the fact that on a yoy basis, the goods deficit widened sharply from $59 billion to $83 billion in Q4FY26. The big story was the jump in remittances from $33.9 billion in Q4FY25 to a whopping $43.5 billion in Q4FY26. Full year CAD stood at a manageable $25.2 billion.

Even as FPIs have been on a selling spree in Indian equities, domestic institutional investors (DIIs) have been aggressively buying. In first 5 months of calendar 2026, DIIs infused over ₹4 trillion into Indian equities. This is on top of ₹7.25 trillion and ₹5.23 trillion infused by DIIs into Indian equities in calendar years 2025 and 2024 respectively. In fact, DII buying has more than matched FPI selling as they infused a record ₹1.43 trillion in March, when FPIs were aggressive sellers. DIIs infused another ₹82,669 crore in April 2026. FPIs were net sellers of $27.13 billion in 2026 so far.

It looks like the season of big-ticket AI IPOs in the US. After SpaceX announced its $75 billion IPO, other big AI names like Anthropic and OpenAI also announced their IPO plans by late this year. Both are planning IPOs at a valuation of over $1 trillion. In addition, Perplexity is also planning an IPO next year, so it is going to be a glut of big-ticket AI IPOs. After Anthropic, even OpenAI has done a confidential filing for its IPO, which could happen around September this year. OpenAI is the famed creator of ChatGPT, while Anthropic is giving sleepless nights to Indian IT companies.

In a bid to boost capital inflows into India, the RBI has exempted swaps on FCNR (B) deposits and External Commercial Borrowings (ECBs) from forex position limits. Both these hedging facilities were announced as part of the Monetary Policy. The current net open position limit is $100 million. Under these schemes; if NRIs deposit money under the FCNR-B scheme or if companies borrow via the ECB route, then the hedging costs will be borne by the government. The exemption will only apply to FCNR(B) deposits mobilized with a maturity period of between 3 and 5 years.

Passenger vehicle retail sales, as reported by FADA, showed a surge of 23.25% in May 2026. The FADA sales report is based on RTO registrations and is more credible than the wholesale despatch numbers reported at the start of the month by SIAM. This surge in demand comes despite a surge in fuel prices. A big trigger was rural sales, which grew by 30%, as well as a huge order backlog that got serviced in May 2026. The rural growth was sharply higher than the 18.8% growth in urban areas. Overall EV penetration across vehicles crossed 11% for the first time ever.

Amid rising costs, FMCG distributors are demanding higher margins from FMCG companies. Most retailers have been facing higher costs due to spike in fuel, warehousing, manpower, and compliance costs. FMCG distributors are finding the model getting increasing unviable for them. This statement was made by the AICPDF, which represents over 4.5 lakh distributors across 25 Indian states. The AICPDF has asked the FMCG companies to change the margin structure by July 2026. FMCG distributor margins in India are as low as 3.5% of the cost of the product.

Hindustan Zinc Ltd, which is majority owned by Vedanta group, is planning a massive ₹50,000 crore capex pipeline over the next 5 years. The purpose of this massive capex is to double its refined metal capacity and also double its ore production. The company has already approved new projects worth ₹17,000 crore. This capex will allow HZL to boost production of minerals and metals and to secure its long-term mining operations. The government of India still holds over 25% of HZL and the company also continues to be one of the highest dividend yield companies in India.

The last year has been a period of muted returns on the market and one of the big beneficiaries has been that bank deposits are seeing a resurgence. As per RBI data, bank deposits grew by 12.2% in May, compared to the recent growth of 10.0%. This is a clear sign of people shifting money back from equities and mutual funds into bank deposits, which offer a higher degree of safety and security. The surge is being led by time deposits (FDs), which account for over 85% of the total deposits base. However, for banks it means lower CASA, and higher cost of funds.