Corporate performance in India in the fourth quarter of FY25 was, on the whole, satisfactory and there is scope for an upward movement once consumption picks up in FY26, according to a report released on Monday.

The aggregate net sales of a sample of 1,893 companies were recorded at 5.4 per cent in Q4, while net profits rose by 7.6 per cent, according to the Bank of Baroda (BoB) report.

“There are sectors which are witnessing green shoots of recovery. Infrastructure linked sectors continue to witness steady growth notwithstanding a negative base effect. For consumer linked sectors, such as FMCG and consumer durables, strong rural demand and seasonal demand continues to aid a steady recovery,” said economist Aditi Gupta.

Commerce and Industry Minister Piyush Goyal has indicated that India is likely to sign a free trade agreement (FTA) with Oman soon, as the talks between the two countries are making headway.

"I think you will see some good news very soon on the Oman FTA," the minister told journalists here.

The minister is on an official trip to France with the aim of boosting trade and investments and will also attend a ministerial meeting of the World Trade Organisation (WTO) on Tuesday.

India’s top public sector companies in the financial, power and energy sectors have recorded a robust growth in profit during the January-March quarter of 2024-25, which is expected to further strengthen the government’s fiscal position.

The country’s largest lender, State Bank of India (SBI), and insurance giant Life Insurance Corporation of India (LIC) led the charge with a net profit of Rs 18,643 crore and Rs 19,013 crore, respectively. SBI’s net profit for the financial year 2024-25 has now soared to Rs 70,901 crore, while LIC has recorded an impressive net profit of Rs 48,151 crore for the year.

In the energy sector, Coal India earned a net profit of Rs 9,604 crore during the fourth quarter, while Indian Oil Corporation (IOC) registered a net profit of Rs 7,265 crore, with upstream oil exploration giant ONGC registering a net profit of Rs 6,448 crore during the quarter.

Foreign investors pumped in more than Rs 30,000 crore in the Indian stock and debt market in May, amid the possibility of a bilateral trade deal with the US soon, a weak US dollar and better-than-expected domestic corporate earnings.

According to NSDL data, foreign portfolio investors (FPIs) invested a total of Rs 30,950 crore in the Indian equity market and debt market last month.

Out of this, FPIs invested Rs 19,860 crore in the equity market. Earlier in April, foreign investors had pumped in Rs 4,223 crore. Due to the sell-off from January to March, net foreign investment remains negative with Rs 92,491 crore in 2025.

Between January and March 2025, FPIs sold equity worth Rs 1.16 lakh crore in the stock market.

The SBI report on Monday projected a mega 50-basis point rate cut in June’s RBI MPC policy, and a large rate cut could reinvigorate a credit cycle and act as a counterbalance to uncertainty.

The cumulative rate cut over the cycle could be 100 basis points, said Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI.

“Domestic liquidity and financial stability concerns have receded. Inflation is expected to stay within the tolerance band. Keeping the domestic growth momentum intact should be the main policy focus and provide the justification for a jumbo rate cut,” he mentioned.

With liquidity in an extended surplus mode, liabilities are getting repriced faster in the current rate-easing cycle. Banks have already reduced interest rates on savings accounts to the floor rate of 2.70 per cent.

As the RBI’s Monetary Policy Committee (MPC) is set to meet later this week, analysts on Monday expected the Central Bank to go for a third consecutive rate cut of 25 basis points as inflation continues to remain below the median target of 4 per cent.

The Central Bank is projected to cut the repo rate by another 50 basis points (bps) this fiscal (FY26), after the 50 bps cut until April this year.

Bank lending rates have begun easing, which should support domestic demand, according to a latest Crisil note.

“Improving domestic consumption is likely to support industrial activity. We expect domestic consumption demand to improve, driven by healthy agricultural growth, easing inflation supporting discretionary spend and income tax relief this fiscal,” it noted.

According to Madan Sabnavis, Chief Economist at Bank of Baroda, “we do believe that given the rather benign inflation conditions and the liquidity situation which has been made very comfortable through various measures of the RBI, the MPC would go in for a 25 bps cut in the repo rate on June 6”.

The Indian stock market opened in the red on Monday following negative cues from the global markets.

At around 9:18 am, Sensex was down 676.86 points or 0.83 per cent at 80,774.15 and Nifty was down 181.15 points or 0.74 per cent at 24,568.25.

Selling was seen in the midcap and smallcap stocks. Nifty midcap 100 index was down 104 points or 0.18 per cent at 57,315 and Nifty smallcap 100 index was trading 69 points or 0.39 per cent lower at 17,813.

In the Sensex pack, HUL, Adani Ports, IndusInd Bank, Nestle, SBI, Eternal (Zomato), Asian Paints and Power Grid were the top gainers. HDFC Bank, HCL Tech, Reliance Industries, Bajaj Finance, Infosys, Tata Steel and Tech Mahindra were the top losers.

According to analysts, the market structure favours continuation of the ongoing consolidation phase.

The Federation of Indian Export Organisations (FIEO) has expressed concern over the recent announcement by US President Donald Trump to double import tariffs on steel and aluminium from 25 per cent to 50 per cent, citing potential disruption to India’s steel and aluminium exports, particularly in value-added and finished steel products and auto- components.

Reacting to the development, FIEO president S.C. Ralhan stated that the proposed increase in US steel and aluminium import tariffs will have a significant bearing on India’s steel exports, especially in semi-finished and finished categories like stainless steel pipes, structural steel components, and automotive steel parts.

The Securities and Exchange Board of India (SEBI) has confirmed the suspension of LS Industries, its promoter Profound Finance, and four other individuals from participating in the securities markets.

The action comes as part of an ongoing investigation into allegations of fraudulent activities and manipulation of the company’s share price.

The individuals barred include Jahangir Panikkaveettil Perumbarambathu, the promoter of Profound Finance, as well as Suresh Goyal, Alka Sahni, and Shashi Kant Sahni HUF, a Dubai-based NRI shareholder of LS Industries.

SEBI has extended the deadline for completing the investigation until November 15 and has directed all involved parties to cooperate fully with the inquiry.

Indian stock markets ended the week on a cautious note, marking the second consecutive week of consolidation. This subdued performance came amid ongoing global trade tensions and anticipation surrounding domestic policy developments, analysts said on Saturday.

The benchmark indices, Sensex and Nifty, witnessed notable volatility through the week, eventually closing lower as investors reacted to uncertainties over U.S. tariff developments and awaited the Reserve Bank of India’s (RBI) upcoming monetary policy decision. By the end of the week, the Nifty settled at 24,750.70, while the Sensex closed at 81,451.01.

“Despite encouraging domestic cues, mixed signals from global markets kept investor sentiment on edge. Initially, optimism prevailed following the RBI’s record dividend payout and positive updates regarding the monsoon,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.