Daily Market News Update — 02nd-03rd July 2026

Midnight News Update: 02-03 Jul 2026

For the month of June 2026, FPIs continued to be net sellers in equities worth $(5.16) billion. However, thanks to the expansion of FAR list and the tax exemption for FPIs, government bonds saw a buying surge in June. In fact, FPIs bought bonds worth $5.69 billion, resulting in net overall FPI inflows of $0.53 billion for the month of June 2026. Equity selling has been relatively subdued in the last two weeks of the month. In the first 6 months of 2026, FPIs pulled out ₹2.70 trillion from Indian equities, compared to ₹1.66 trillion selling in the entire calendar year 2025.

SBI Funds is readying to launch its IPO worth $1.2 billion (₹11,400 crore) in the second or third week of July. The valuation of the AMC has been toned down from $15 billion to around $12.1 billion as SBI and Amundi will look to jointly offload 10% stake in SBI Funds through an OFS. There will be no fresh issue component in the SBI Funds IPO. Currently, SBI Funds has the highest AUM among Indian fund houses. However, ICICI Prudential gets a valuation of $17.7 billion, while HDFC MF gets a market valuation of $12.4 billion. SBI will offload 6.3% and Amundi 3.7%.

The US unemployment rate dropped from 4.3% to 4.2% for June 2026. Non-farm payroll additions remained subdued at 57,000. This may not be a robust signal, but does hint at macro resilience but also rules out any immediate need for rate hikes by the US Fed. Also, payroll additions are sharply lower than the 1,29,000 in May and 1,48,000 in April 2026. Number of unemployed persons was static at 7.1 million. Lower immigration has reduced growth in labour force and the US economy only needs to add 50,000 jobs a month to keep unemployment stable at current levels.

The board of Zee Entertainment has approved a ₹3,144 crore preferential warrant issue at a price of ₹126 per share. The potential equity dilution resulted in the stock correcting by 3% during the day. The warrants will be issued to promoter group entity, Sunbright Mauritius Investments. Zee will issue a total of 24.95 crore fully convertible warrants to the promoter group entity in the ratio of 1:1. Sunbright will pay 25% of the price or ₹31.50 per warrant at the time of warrant allotment, with the balance payable on conversion. Conversion can happen in 18 months.

The state of Maharashtra is planning a ₹20,000 crore mega greenfield shipbuilding cluster in Raigad district. It will create a complete shipbuilding supply chain with ancillary industries covering engine manufacturing, steel, and component fabrication. Mazagon Dock Shipbuilders was approached to serve as the anchor shipyard. The site will be located south of Dighi port, which is operated by the Adani group. Mumbai Port Authority and government of Maharashtra have formed an equal SPV for infrastructure building. The allocation is for supporting the infrastructure development.

According to S&P, the RBI concessional swap facility for overseas borrowing will give a boost to financial institutions in attracting foreign capital. This will lower funding costs for many of the borrowing institutions as they will be able to hedge currency risk at a concessional rate. S&P expects the swap facility to boost offshore activity by offering financial flexibility, access to cheaper funding, and a mechanism for asset quality support. A surge of foreign flows will also help to stabilize the rupee. Key candidates include IRFC, REC, IREDA, NHB, EXIM, NABARD etc.

Parle Products of the Ramesh Chauhan group is readying for a $1 billion IPO, at an indicative valuation of over $10 billion. Parle makes marquee products like Parle-G, KrackJack, Monaco, and Hide & Seek. It also makes confectionary products like Melody and Mango Bite. The ₹9,530 crore IPO is likely next year. Parle Products has picked Kotak Mahindra Capital and HSBC as advisors to the issue. Under the umbrella of Parle Agro, another group company also makes popular brands like Frooti and Appy Fizz. Parle competes with Britannia, ITC, Mondelez, Perfetti etc.

Adani Enterprises announced a JV with Abu Dhabi based International Resource Holding (IRH) to develop an $11.5 billion integrated aluminium plant in Odisha. The MOU with Odisha government has been signed. Demand for aluminium is linked to industrialization and digitization in India. This will be the largest metal FDI into India. Nearly 70% of the project cost will be funded by debt and balance via equity. The facility will comprise of 4 MMTPA alumina refinery, 2 MMTPA aluminium smelter, 4,000 MW captive power plant, and a 1MMTPA downstream manufacturing park.