Daily Market News Update — 20th-21st September 2026

Midnight News Update: 20-21 Sep 2026

As the Tata Trusts have rejected the resolutions of Tata Sons, and both parties are readying their battery of lawyers; there is another calculation that is emerging. The Sir Ratan Tata Trust (SRTT) vote freeze has made the votes of smaller Tata Trusts more decisive. In the absence of SRTT, the Sir Dorabji Tata Trust (SDTT) will command 36.6% vote share, while the 6 smaller Tata Trusts will take the vote share to 55.37%. The AGM of Tata Sons has to be held before 31-December. The other interesting part is that if SRTT is out, SP group vote share is up to 24.07%.

FPIs were net sellers in equities to the tune of ₹20,974 crore in the first 18 days of September. The months of July and August had seen net buying by FPIs in Indian equities. In addition, the FPIs have also been net sellers in debt to the tune of ₹15,501 crore due to the rate hike by the Fed, which makes Indian debt less attractive amidst narrowing bond yield spreads. FPI selling was triggered by RBI rate hike expectations, geopolitical risk, and higher crude prices. In the first fortnight. FPIs were decisive sellers in BFSI, Auto, and FMCG; while being a buyer in the Healthcare space.

According to a report by SBI Research, the FCNR(B) scheme could yield ₹5,50,000 crore of notional gains for Indian banks. The report underlines that the substantial rupee liquidity could support higher bank credit and boost interest income. These notional profits would be over a period of 5 years. Assuming a multiple of 2.5X, the cash inflows from dollar swaps could create additional credit of ₹25 trillion. At a conservative yield of 7.5%, it can generate ₹1.80 trillion annually. Even if you adjust the interest outgo on FCNR deposits, the net annual surplus is ₹1.10 trillion.

India’s defence production touched a new high of ₹1,78,000 crore in FY26, of which exports accounted for ₹38,424 crore; or nearly 21.6% of defence output. The defence output in FY26 is 15.6% higher compared to FY25. Since the year 2014, the defence production is up nearly 4 times. In FY26, the PSU defence companies accounted for about 76% of total defence output, with the private sector accounting for the balance 24%. Exports were up 63% yoy, and in the aftermath of Operation Sindoor, there has been a surge of enquiries for Indian defence equipment.

The National Land Monetization Corporation (NLMC) has recommended proposals to monetize land parcels and buildings worth ₹5,000 crore. The idea is to unlock cash of public sector undertakings that are locked up in idle real estate assets. Many of the CPSEs have been historically sitting on vast tracks of land, which can either be sold or monetized in some other form. NLMC is a wholly government owned company under the control of the Department of Public Enterprises. This will not only reduce their dependence for funds, but also improve their ROI.

Housing finance companies (HFCs) are seeking a much wider pool of long-term funding sources. They want greater participation from long-term investors like insurance companies, and pension funds. Bank funding remains short to medium-term in nature, so the risk of maturity mismatch is always there. While HFCs can access the bond market, only high-rated companies are able to raise funds at low cost. In the last few years, the shift to the new tax regime (NTR) has resulted in loss of tax incentives on housing loans, which has hit the retail demand for home loans.

NMDC is targeting iron ore production of 60 million tonnes in FY27 and will gradually scale it up to 100 million tonnes by fiscal 2031. Iron ore is a key input for steel companies, and this will help to meet the growing demands of Indian steel manufacturers. In fact, NMDC has already invited bids from third parties to develop the infrastructure in mines; like belt conveying systems, crushers, breakers etc. NMDC alone catered to nearly 20% of the iron ore needs of Indian steel industry. In FY26, NMDC had reported a 33% growth in revenues to a level of ₹31,554 crore.

Bank credit growth for the firs quarter of FY27 grew at its fastest pace of 16.5%, even as deposit growth faltered to 11.3% in the quarter. This leaves a huge gap of 520 bps between the growth in loans and deposits. This has compelled many banks to rely more on short-term CD financing to meet funding gaps. Ironically, the June quarter is considered to be a tepid quarter for loan growth, but that has not been the case this time around. While industry credit, trade credit, and personal loans were robust; there was a slowdown in the infrastructure credit offtake in Q1FY27.