Weekly Market Impact — for the Business Week ending 16th October 2026

Weekly Capsule (Oct 12 – Oct 16) and Impact Analysis

Supreme Court upholds HC decision to strike down Yes Bank AT-1 write-off

• This virtually reverses the ₹8,415 crore of AT-1 bonds of Yes Bank that the administrator had repudiated in 2020
• The Supreme Court opined that the administrator was not authorized to write-off the bonds as mis-selling was involved.

Jio Platforms fixes its IPO price in the band of ₹1,065 to ₹1,119 per share

• The total IPO size will be ₹30,213 crore and the IPO will value Jio Platforms at an indicative valuation of ₹10,30,000 crore
• The IPO is entirely a fresh issue and nearly ₹27,500 crore of the IPO proceeds will be used to repay company debt

Nifty rebounded 2.78% for the week as a strong rupee helped a surge in indices

• For the week Nifty bounced by 2.78% to 23,146.15 levels, after falling well below 22,000 in the previous week.
• BSE Sensex also staged a 3.11% recovery for the week, closing smartly at 74,729.27, after dipping below 72,000 levels

The Indian Rupee recovered by 1.66% during the week to close at ₹95.172/$

• The series of measures by the RBI to curb speculation in the rupee helped the Indian rupee to recover during the week
• The RBI also put limits on quantum of hedging as well as the activities in the NDF market; including through the IFSC route

FPIs net sold equities worth $(830.41) million for latest week to 16-October

• Despite the rupee strength, FPI flows continued to be wary due to concerns over earnings and valuations of stocks
• The $200 billion of dollar shorts and the narrowing yield gap between India and the US are also disincentives for the FPIs

Merchandise trade deficit for Sep-2026 thins to $30.2 billion as exports surge

• While goods imports were up 8% for the month, the exports of goods during the month surged 23% to $44.40 billion
• However, the overall deficit (including services) for Sep-2026 widened sharply from $6.79 billion to $10.51 billion MOM

Fairfax of Canada to buy 60.72% stake in IDBI Bank for a sum of ₹52,878 crore

• That is a 10% discount to the market price, but still much better than the initial offer and will boost divestment flows
• The government will retain 34% (along with LIC), which will give them enough clout to block any special resolution

Fairfax may look at ways to integrate its multiple financial interests in India

• Fairfax already has key stakes in IIFL Finance, CSB Bank, and Go Digit Insurance, which will not be permitted by the RBI
• Fairfax plans to make IDBI Bank its primary exposure to Indian financial sector and integrate other holdings as part of that

FCNR(B) flows of $133 billion, boosts bank deposits beyond $3 trillion level

• The massive surge in the deposit base of Indian banks came after the FCNR(B) dollar inflows were swapped into rupees
• FY27 alone has seen deposit accretion of ₹21.67 trillion in 6 months, of which ₹11 trillion came through FCNR(B) swaps

US Consumer Inflation comes in sharply elevated at 3.7% for September 2026

• The US inflation surge was led by food and fuels, even as core inflation stayed subdued at a level of 2.6% for September
• The spike in consumer inflation makes a strong case for the Fed to hike rates by another 25 bps when it meets in October

India WPI inflation spikes to 11.39% for the month of September 2026

• This is sharply higher than the 9.92% in August and marks the eleventh consecutive month of higher WPI Inflation in India
• With WPI inflation spiking from 0.25% to 11.39% in the last 11 months, the pressure on input costs continues to increase

India grows exports to China by 40.7% in H1FY27, but trade deficit still widens

• Out of the total Indo-China goods trade of $144.45 billion; Indian exports were $19.26 billion and imports $125.19 billion
• India exports ore, refined fuels, and farm products to China & imports electronics, industrial inputs, heavy machinery etc

India CPI inflation for September 2026 come in sharply higher at 5.54%

• There was an all-round increase across food inflation, fuel inflation as well as core inflation due to supply constraints
• With CPI and WPI inflation at high levels, another rate hike of 25 bps by the RBI looks inevitable in the December policy

Spot Gold tapered to $4,184/oz; Spot silver also trended lower to $57.68/oz

• Gold and silver have been on a consistent downtrend since the Fed has hinted at the likelihood of more rate hikes
• Most brokers are lowering their short-term price outlook for gold and silver, although they remain bullish in the long run

Indo Mauritius tax treaty will have to go through Principal Purpose Test (PPT)

• The idea of the PPT is to ensure that tax claims are limited to genuine transactions, and not to deliberate tax arbitrage
• This can have larger implications for structuring of mergers as well as for PE funds and VC funds investing money in India

Finance Minister hints that the Centre will take a relook at STT and LTCG tax

• There have been demands to remove the double taxation impact of STT and LTCG on Indian capital market transactions
• While STT looks set to stay due to its revenue potential, it is very likely that LTCG tax may be rationalized in the Budget

Government puts off implementation of UPI MDR to after Diwali festival

• This will ensure that the festive sales of Indian consumer goods is not impacted by the negative effect of UPI MDR
• Considering the popularity of UPI in the last 10 years, the centre may well decide to keep it outside the ambit of MDR

Venu Srinivasan family feud in the limelight amid his Tata machinations

• Venu Srinivasan’s son and daughter are engaged in a family feud over the division of family assets in an equitable manner
• The highly lucrative TVS Motors was entirely handed over to son, Sudarshan, which is now the bone of contention at TVS

Equity funds see robust monthly flows, boosted by record gross SIP flows

• Net inflows into equity funds were robust at ₹38,306 crore in Sep-2026; led by gross SIP flows at a record ͅ₹32,490 crore
• The party-spoiler for September was outflows from debt funds as corporates used treasury gains to fund advance tax payouts

India reports Balance of Payment (BOP) surplus of $45.4 billion in August 2026

• This BOP surplus has been largely triggered by the massive influx of FCNR(B) deposits, which closed on 31-August 2026
• Net FDI flows and net FPI flows were positive in the month of August 2026, which also helped the BOP surplus

Reliance Consumer enters ready-to-drink dairy market with flavoured milk

• This will help Reliance Consumer to take on the established players in the dairy business like Amul and Mothers Dairy
• It has been launched in ₹20 tetra-packs in strawberry and vanilla variants; and comes just after its ice-cream launch