Daily Market News Update — 14th-15th July 2026

Midnight News Update: 14-15 Jul 2026

Donald Trump has launched a full-fledged naval blockade of Iran and asked for more Gulf investments in the US, in lieu of the Hormuz reimbursement fees. Iran has, meanwhile, targeted 2 UAE tankers in the Straits of Hormuz and has also launched attacks on American facilities in the region. Trump also wanted ships to pay 20% of the value of the cargo to the US for protection, but that proposal has been put in the backburner for the time being. Oil is up to $83/bbl and clearly none of the oil producers are complaining as they are getting better realization per barrel.

A day after India reported higher CPI inflation at 4.38%, even the WPI inflation has come in sharply higher at 9.87%. This is a clear indication of pressure on producer prices and could lead to one more round of price hikes by manufacturers. WPI food inflation touched 6.14%, while other primary articles like oil and minerals also rallied. The headline WPI inflation of 9.87% is the highest level in 27 months. While fuel inflation tapered to 27.4% for June, it is still way above the median of last one year. Manufacturing WPI inflation stayed elevated at 7.48% for June 2026.

Net direct tax collections for first 100 days of FY27 is up 16.4% yoy at ₹6.51 trillion. The spike was driven by a 22% spike in corporate tax collections, while individual tax collections grew by 12%. Gross direct tax collections stood at ₹7.73 trillion, but bulk of the refunds for FY25 and FY26 are yet to be paid out. That could substantially impact the net tax collections of the government. In the first 100 days of FY27, the securities transaction tax (STT) was robust at ₹26,429 crore. For the full year FY27, government has budgeted direct tax flows at ₹26.97 trillion, up 15% yoy.

The US CPI inflation for June 2026 came in lower at 3.5%, compared to 4.2% in May 2026. The energy index growth sobered to 15.7%, substantially lower than the past few months as oil prices corrected sharply in June on expectations of peace returning to the Middle East. Core inflation for the month of June stayed flat, which means the pressure of supply chain disruptions is still on. In a recent interaction, Fed chief Kevin Warsh had stated that the Fed had zero tolerance for higher inflation. This lower inflation reading, puts off any discussion about rate hikes by the Fed.

Foreign flows appearing to be making way into India in a big way. The FCNR(B) deposit scheme appears to have already collected about $11 billion since its launch and with most of the bells and whistles in place, it could collect up to $70 billion by end of September. RBI had undertaken to bear the currency risk, allowing banks to offer returns of up to 7.2% on FCNR(B) deposits. Meanwhile, foreign borrowings have also risen with the May foreign borrowings coming in 25.8% higher at $4.74 billion. RBI will also be partially bearing the currency risk in ECB borrowings.

In the last 10 days since Trump managed to reignite the Middle East conflict, India has seen its crude basket jump by $8/bbl. For now, any cuts in petrol and diesel prices appear to be off the table as the traffic through the Straits of Hormuz has been once again impacted. The crude basket now stands at $76.28/bbl. This is also likely to build pressure of under-recoveries on oil marketing companies, as the government is unlikely to allow hikes in petrol and diesel prices due to its inflationary potential. For India, every increase of $10/bbl in the price of crude, increases its subsidy bill by up to $15 billion. That is likely to negatively impact the current account.

Hero Motocorp will invest close to ₹1,000 crore in Ather Energy, through a preferential allotment of shares. Ather Energy designs, manufactures, and markets electric two-wheelers and has seen its stock price appreciate sharply post listing. Hero group already has a substantial holding of 29.48% in Ather Energy. The stake increase will be done through a combination of compulsorily convertible preference shares and warrants. The transaction will be made entirely in cash. The entire deal will be implemented in the next 15 days, subject to the receipt of additional approvals.

Aditya Birla group has acquired the renewable energy platform of Shell India, SPRNG Energy, for nearly $1.8 billion or ₹17,200 crore. This is one of the largest acquisition deals in the alternate energy space. Aditya Birla Renewables will be able to add a contracted portfolio of 5 GWp, which comprises of 3.3 GWp of operational capacity and 1.7 GWp of capacity under construction. The company will see its overall RE portfolio expand to 9.3 GWp. The acquisition will be funded through a mix of debt and equity infusion from Grasim Industries. Its eventual target is over 20 GWp.