Economy

Indian Stock Markets Close Flat After Volatile Session Marked by Profit BookingIndian equity benchmarks ended virtually unchanged after a highly volatile trading session, as gains in select heavyweight stocks were offset by profit booking in banking and technology counters. Investors navigated mixed global cues, fluctuating crude oil prices and cautious institutional flows. While intraday swings reflected fragile sentiment, the broader market displayed resilience supported by domestic macroeconomic stability and selective buying in defensives.

The Indian rupee weakened to 90.96 against the US dollar, reflecting mounting global currency pressures, sustained dollar strength and cautious investor sentiment. The decline comes amid fluctuating capital flows, elevated crude oil prices and broader macroeconomic uncertainties affecting emerging markets. Currency traders cited external headwinds, including resilient US economic data and firm Treasury yields, as key drivers of the rupee’s depreciation.

India’s apparel exports recorded a modest 1.6 percent growth during April–January 2025-26, reflecting resilience in the face of persistent global headwinds and supply chain disruptions. According to industry leadership, shipments to key international markets such as Italy, the United Kingdom, the United Arab Emirates, Saudi Arabia, Germany, and Spain posted encouraging gains. Emerging demand from Japan, Iceland, and Australia further supported export momentum.

India’s capital markets must shift from replication to original innovation, a senior official of Securities and Exchange Board of India said, cautioning that copying global models without contextual adaptation can weaken long-term market resilience. Addressing industry participants, the SEBI executive director emphasized that sustainable growth will come from solutions designed for India’s unique investor base, regulatory framework, and risk profile. The remarks come as financial markets rapidly evolve through technology, fintech platforms, and product innovation.

India’s push to build a domestic semiconductor ecosystem gathered momentum as Prime Minister Narendra Modi reiterated the strategic importance of made-in-India chips. Positioning semiconductors as the foundation of modern economic and technological power, the government has framed self-reliance in chip manufacturing as vital to growth, security, and supply-chain resilience. The renewed focus reflects lessons from global shortages and rising geopolitical competition over critical technologies.

Hiring activity for fresh graduates is projected to rise in the first half of 2026, according to a recent industry assessment. The anticipated rebound reflects improving business sentiment, digital transformation initiatives and sustained demand for entry-level talent in technology, banking and manufacturing sectors. Companies are recalibrating workforce strategies after a cautious 2025 marked by macroeconomic uncertainty. The report suggests structured campus recruitment programs and skill-based hiring will drive momentum, signaling renewed optimism in India’s employment landscape.

India’s oilmeal exports declined sharply by 42% in January compared to the same period last year, reflecting subdued global demand and intensified competition from key producing nations. The contraction underscores ongoing volatility in agricultural commodity markets, driven by fluctuating feed demand, currency movements and shifting trade policies. Exporters face margin pressure as international buyers recalibrate procurement strategies.

India’s real estate sector is entering a decisive growth phase, with projections indicating that the market could expand threefold by 2030. Driven by rapid urbanization, rising disposable incomes, infrastructure investments and increased institutional participation, the industry is transitioning from cyclical recovery to structural expansion. Residential demand remains robust, commercial leasing is rebounding, and emerging asset classes such as logistics and data centers are attracting substantial capital inflows.

India’s unemployment rate rose to 5% in January, reflecting emerging stress in segments of the labor market despite steady economic growth. The uptick was largely attributed to softer hiring trends in urban centers and a temporary slowdown in select service sectors. While rural employment conditions remained relatively stable, workforce participation levels showed mixed patterns. Economists caution that the data underscores the uneven nature of India’s post-pandemic labor recovery, where formal sector gains coexist with informal sector vulnerabilities.

Indian equity markets witnessed a sharp and widespread selloff, wiping out approximately Rs 7.02 lakh crore in investor wealth in a single trading session. The decline reflected mounting global uncertainties, profit-booking at elevated valuations and risk aversion among institutional participants. Benchmark indices retreated significantly, with heavyweights across banking, information technology and capital goods sectors contributing to the erosion. The market capitalization contraction underscores the fragile sentiment currently shaping capital flows.