Foreign portfolio investors (FPIs) brought in Rs 3,346.94 crore into the Indian stock markets this week, as investor confidence received a strong boost following the Reserve Bank of India's (RBI) rate cut.

According to data from the National Securities Depository Limited (NSDL), FPIs were active buyers in the Indian equity market during the first three trading sessions of the week -- from June 9 to June 13.

The positive mood in the market was largely driven by the RBI’s decision to reduce the repo rate by 50 basis points to 5.5 percent, a move that many saw as a clear signal to support economic growth and improve market liquidity.

Market experts believe that this surprise rate cut has played a big role in attracting foreign investments, as it reflects a pro-growth approach from the central bank.

US-based Axiom Space is now set to take Indian astronaut Shubhanshu Shukla to International Space Station (ISS) on June 19, said Indian Space Research Organisation (ISRO) on Saturday.

Shukla’s flight earlier scheduled to launch on June 11, after being deferred multiple time, was postponed due to technical observations related to the Zvezda module of the ISS.

The leak was detected in the propulsion bay during a pre-launch test.

ISRO noted that Axiom Space has informed that they are working closely with NASA to assess the pressure anomaly in the Zvezda Service Module onboard the International Space Station.

The Indian equity markets witnessed heightened volatility this week, ultimately closing in the red, analysts said on Saturday, adding that early optimism, driven by progress in US–China trade negotiations, was overshadowed by escalating geopolitical tensions after Israel launched a strike on Iran’s nuclear facilities.

This development sparked a global risk-off sentiment, leading to a rally in safe-haven assets such as gold and U.S. bonds. Oil prices surged past $76/barrel after months of consolidation, as fears of supply disruptions resurfaced.

“On the domestic front, CPI inflation eased to a 75-month low, offering some relief. However, the recent spike in crude prices could reverse this trend if the Middle East conflict intensifies. Sectorally, rate-sensitive segments like auto, realty, and banking saw profit booking, while export-oriented sectors such as IT and pharma gained amid a weaker rupee,” said Vinod Nair, Head of Research, Geojit Investments Ltd.

The Indian stock market has delivered stellar performance over the last five years, generating 18 per cent annualised returns in US dollar terms -- the highest among global markets, a new report said on Friday.

India’s long-term outperformance stands out as it surpasses the 12 per cent returns delivered by world and developed markets and is more than four times higher than those of other emerging markets, according to data compiled by the Bandhan Mutual Fund.

In sharp contrast, China’s markets declined 2 per cent in May 2025, making it one of the few major economies to end the month in the red.

Small-cap stocks have played a leading role in India’s growth story, outperforming across the board -- whether over the last three months, five years, or since the pandemic lows of March 2020.

Indian stock markets witnessed a sharp fall on Friday as escalating tensions between Israel and Iran, along with a sudden jump in crude oil prices, spooked investor sentiment across global markets.

Tracking weakness in Asian peers, the benchmark Sensex slipped as much as 1,339 points in early trade, hitting an intra-day low of 80,354.59.

However, it managed to recover partially and closed at 81,118.60, down 573.6 points or 0.7 per cent.

The Nifty index also dropped sharply and ended the day at 24,718.6, down 169.6 points or 0.68 per cent.

"Nifty continued to show weakness on Friday amidst geopolitical tension between Israel & Iran and rising International Crude Oil prices," said Nagaraj Shetti of HDFC Securities.

"The overall chart pattern indicates a formation of a short-term top reversal pattern at 25222 as per the daily timeframe chart. The short-term trend of Nifty is negative, but the medium-term trend remains positive," he added.

Indian banks have shown significant improvement in asset quality during FY25, driven by low net additions to non-performing assets (NPAs), a new report said on Friday.

This trend has helped banks strengthen their balance sheets, while credit costs have continued to decline, boosting overall profitability, according to data compiled by CareEdge Ratings.

The report noted that the Gross NPA (GNPA) ratio for scheduled commercial banks (SCBs) touched 2.3 per cent by the end of FY25 -- one of the lowest levels in recent years.

This improvement has been supported by steady recoveries, high write-offs, and reduced slippages.

Over the past decade, banks have shifted focus from large corporate loans to retail lending, which now accounts for 34 per cent of total advances, compared to just 19 per cent in 2015.

Gold prices on the Multi Commodity Exchange (MCX) opened with a sharp jump on Friday, crossing the Rs 1 lakh mark per 10 grams.

The rally came as rising geopolitical tensions in the Middle East boosted safe-haven demand for the yellow metal. Silver prices also gained in early trade.

MCX gold opened higher by Rs 1,108 or 1.12 per cent at Rs 99,500 per 10 grams, compared to the previous close of Rs 98,392.

Soon after, the price surged to Rs 1,00,403, breaching the Rs 1 lakh level for the first time. At 12:44 p.m., gold was trading at Rs 99,673.00, up 1.30 per cent.

Additionally, retail gold prices in India also reflected the rise. According to data from the India Bullion and Jewellers Association (IBJA), around 12:50 p.m., 22-carat gold was priced at Rs 9,679 per gram, while 24-carat fine gold stood at Rs 9,917 per gram.

India inflation is likely to average around 2.5 per cent for the next six months, lower than the RBI's forecast of 3.5 per cent, an HSBC report said on Friday.

The June inflation print is trending a tad lower than May levels.

“We think that the low inflation print can be attributed to the high base of last year. Vegetable prices in the first 10 days of June have risen in the range of 0-13 per cent,” according to HSBC Global Research.

The monsoon season started early, but the rains have slowed since. That said, sowing of the summer crop is progressing well, particularly for rice and pulses.

This, along with a strong cereal production from last year means that granaries are full and the government can choose to slow release stocks to control cereal inflation over a 2-year horizon, the report noted.

India and China have agreed to expedite steps to resume direct air services between the two countries and also hold talks to resolve trade issues.

The decision was taken at a high-level meeting between Indian Foreign Secretary Vikram Misri and Chinese Vice Foreign Minister Sun Weidong, who is on a two-day visit to New Delhi from June 12 -13.

“The Foreign Secretary hoped for the early conclusion of an updated Air Services Agreement. The two sides further agreed to take practical steps for visa facilitation and exchanges between media and think-tanks,” according to a statement issued by the Ministry of External Affairs on Friday.

Given the current inflation trajectory, headline inflation is projected to average 4 per cent this fiscal (FY26), from 4.6 per cent last fiscal, a Crisil report said on Friday.

Lower inflation keeps the window open for one more repo rate cut by the Reserve Bank of India (RBI), apart from the 100 basis points cut announced so far, the report forecast.

The Consumer Price Index (CPI)-based inflation dropped to 2.8 per cent in May, the lowest reading since February 2019, from 3.2 per cent in April as food inflation continued to decline.

Fuel and core inflation also softened. Food inflation fell to 1 per cent, the lowest since October 2021, from 1.8 per cent in April. Fuel inflation reversed trend and eased marginally to 2.8 per cent from 2.9 per cent.