Daily Market News Update — 01-02 July 2026

Midnight News Update: 01-02 Jul 2026

The Indian rupee fell sharply to ₹95.23/$ on Tuesday, losing nearly 67 paisa in a single trading session. The weakness in the rupee was largely triggered by strength in the dollar index (DXY). In addition, broad weakness in Asian currency markets and persistent capital outflows also had a negative impact on the rupee. FPI inflows into government bonds has offered some relief but the much-touted deluge of FCNR(B) flows is yet to materialize. Once that happens, the Indian rupee could see more signs of strength. Till then, the pressure on the rupee is likely to continue.

June GST collections were up 13.9% at ₹1.95 trillion, amid strong import growth. The states of Maharashtra and Karnataka led the way in GST collections. Out of the total GST collections of ₹1.95 trillion in June 2026, domestic transactions accounted for ₹1.35 trillion while import revenue related GST collections were up 34.6% at ₹60,038 crore. The net GST flows for the month stood at ₹1.62 trillion after adjusting refunds of ₹32,436 crore. Overall, CGST flows stood at ₹37,376 crore, SGST at ₹45,116 crore, and IGST flows at ₹1,12,320 crore for the month of June 2026.

The month of June 2026 saw India importing a record 4.93 million barrels per day (bpd) of crude oil, even as Russia remained the top supplier accounting for close to 52.7% of Indian crude imports. According to KPLER data, Russia alone accounted for 2.60 million bpd of oil imports into India in June 2026. This is a sharp increase over May 2026, when India had imported 2.13 million bpd from Russia, accounting for 36.5% of the crude import basket. India sharply pivoted back to Russian crude in recent months after the constraints in traffic through Straits of Hormuz.

According to Tata Motors, Indian EV market has crossed the inflection point of 7.5% penetration, after which the growth in EVs really takes off. Going ahead, the demand is expected to outstrip supply and so the onus will be on the auto manufacturers to expand supply in tandem with rising demand. Between FY25 and FY27, the monthly EV volumes had almost tripled from 10,000 to 28,000 units. The EV penetration had also improved from 2.5% to 7.5% in this period. While the industry-wide penetration of EVs is 7.5%; in the case of Tata Motors, it is closer to 20%.

Start-up funding in India in the first half of calendar 2026 has risen by 9% yoy to $7.39 billion. There was a perceptible shift towards larger late-stage investments, while there was a greater degree of caution on early-stage funding. However, funding rounds plunged by 41% in this period. The 701 funding rounds in H1-2026 were sharply lower than the 1,189 funding rounds seen in the first half of 2025. After start-up funding crossed $1.10 billion in January and February, it surged to $2.05 billion in the month of March 2026. June was another good month at $1.72 billion.

Auto numbers, as reported by wholesale despatches were robust in June 2026, with Maruti, M&M, and Tata Motors reporting robust growth. However, Hyundai Motors reported 15% decline in sales. While Maruti saw sales grow by 19.3% to 2,00,390 units; M&M grew sales by 37% to 1,06,207 units. The other outperformer was Tata Motors, wherein the PV sales were up 69% yoy at 63,083 units. Apart from wholesale despatches, the sales numbers have also been robust in recent months, based on retail sales as measured by Vahan registrations. EVs also picked up steam.

Mumbai rains may be erratic, but there is no shortage of speculators willing to bet on rain agony. India’s first exchange traded Weather Futures saw volumes of nearly 20,000 contracts on launch. Launched by NCDEX, the weather futures saw heavy bets that were speculative as well as a hedge against delayed rainfall in India. As of end of June, the rainfall deficit was close to 38%, with the distribution highly skewed. The idea of the Weather Futures is to provide a forward-looking picture of monsoons. Investors with exposure can actually protect their weather risk.

The signals were already there in the core sector numbers, but now it is official that Coal India output fell by 7.5% in Q1FY27 to 169.60 million tonnes. Ironically, this comes at a time when India is gearing up for higher power demand in the coming months. Coal India accounts for 80% of the total coal output in India, with the balance being accounted for by Singareni Collieries and captive coal mines. Even June output was lower yoy. Its 2 principal subsidiaries (BCCL and Mahanadi Coal Fields) reported negative growth. CIL said it had smoothly handled peak power demand.