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.

The Indian benchmark indices opened sharply lower on Friday as tensions escalated between Israel and Iran. Heaving selling was seen in the auto, IT, Financial service and PSU Bank sectors in the early trade.

At around 9.33 am, Sensex was trading 896.5 points or 1.10 per cent down at 80,795.44 while the Nifty declined 278.5 point or 1.12 per cent at 24,609.70

Nifty Bank was down 633.80 points or 1.13 per cent at 55,448.75 The Nifty Midcap 100 index was trading at 57,836.95 after dropping 603.90 points or 1.03 per cent. Nifty Smallcap 100 index was at 18,272.30 after declining 192.75 points or 1.04 per cent.

Analysts said that the economic consequences of this Israeli strike can be profound if the attack and counterattack by Iran lingers long. Israel has declared that the operation will last several days.

The softening of CPI inflation would provide a substantial boost to households and businesses, industry chamber PHDCCI said on Thursday.

The retail inflation for May has softened to 2.82 per cent, marking a notable reduction of 34 basis points compared to April (3.16 per cent).

“This is the lowest year-on-year inflation recorded since February 2019 and gives further boost to consumer and industry sentiments,” said Hemant Jain, President of PHDCCI.

The year-on-year inflation rate, based on the All-India Consumer Food Price Index (CFPI), for the month of May compared to May 2024 is 0.99 per cent (provisional), which is the lowest since October 2021.

India's inflation rate based on the Consumer Price Index (CPI) declined to 2.82 per cent in May this year compared to the same month of the previous year. This is the lowest level of retail inflation since February 2019, according to a statement issued by the Ministry of Statistics on Thursday.

Food Inflation declined to 0.99 per cent during May, which is the lowest since October 2021. This is the seventh month in a row that food inflation has registered a decline as the agricultural output has been on the rise.

The significant decline in inflation during the month is mainly attributed to the decline in inflation of pulses, vegetables, fruits, cereals, household goods & services, sugar, and eggs, according to the official statement.

At least 169 Indians and 53 British nationals were travelling in Air India’s flight AI171 from Ahmedabad to London Gatwick which crashed soon after take-off, an airline official said on Thursday.

The flight, which departed from Ahmedabad at 1.38 p.m. carrying 242 passengers and crew members, also had seven Portuguese nationals and a Canadian national on board.

The plane had 10 cabin crew, and two pilots - Capt. Sumeet Sabharwal, a long-time Air India pilot with over 8,200 flying hours, and First Officer Clive Kundar, who had logged 1,100 hours.

The Indian stock markets witnessed a sharp fall on Thursday after a volatile trading session, as weak global cues and rising tensions between the US and Iran weighed on investor sentiment.

The Sensex dropped by 823.16 points, or 1 per cent, to close at 81,691.98 after slipping to an intra-day low of 81,523.16.

The Nifty fell below the psychological 25,000 mark and ended at 24,888.20, down by 253.20 points or 1.01 per cent.

Among the 30 Sensex stocks, Tata Motors, Titan, Power Grid, Tata Steel, L&T and Mahindra & Mahindra were the top losers, each falling over 2 per cent.

There has been a surge in private investments in the last 11 years, with Indian startups and emerging entities attracting significant private funding to the tune of over $150 billion in the past decade, Commerce and Industry Minister Piyush Goyal said on Thursday.

More than Rs 22,900 crore have been invested in over 1,270 startups via the government's Fund of Funds for Startups scheme.

"India is embracing technology like no other! This digital transformation is the outcome of the forward-looking vision and timely policy interventions under the leadership of Prime Minister Narendra Modi. Every section of society and every aspect of life has been positively impacted by 11 years of Digital India," Goyal said in a post on social media platform X.

IP filings by the domestic startups surged from 2017 to 2024, with over 355 per cent growth in patents and more than 543 per cent growth in trademarks.

There has been more than 90 times rise in direct benefit transfer (DBT) in just a decade under the Prime Minister Narendra Modi-led government, Finance Minister Nirmala Sitharaman said on Thursday.

Moreover, India leads the world in real-time payments, with more than Rs 260 lakh crore worth of transactions processed in 2024-25, the Finance Minister informed on the X social media platform.

“From Rs 7,368 crore in 2013-14 to Rs 6.83 lakh crore in 2024-25, there has been a 90X+ rise in DBT transfer in just a decade under Prime Minister Modi’s leadership, ensuring that every rupee reaches to every citizen,” said FM Sitharaman.

The Indian benchmark indices opened flat on Thursday ahead of key retail inflation data, as selling was seen in the auto, IT and PSU Bank sectors in the early trade.

At around 9.28 am, Sensex was trading 69.22 points or 0.08 per cent up at 82,584.36 while the Nifty added 23.65 point or 0.09 per cent at 25,165.05.

Nifty Bank was up 98.65 points or 0.17 per cent at 56,558.40 The Nifty Midcap 100 index was trading at 59,267.75 after dropping 120.40 points or 0.20 per cent. Nifty Smallcap 100 index was at 18,772.35 after declining 26.40 points or 0.14 per cent.

According to analysts, Nifty ended higher yesterday but slipped off its intra-day peak. Technically, yesterday's candle was a doji with a slightly longer upper shadow immediately following the 'upside-gap two crows' pattern so the onus is on bulls to protect 25,029 in the near-term.

"If bears are able to drag the index below the 24,987-25,029 zone, a test of the 24,800-24,863 area will become a high probability event," said Akshay Chinchalkar, Head of Research of Axis Securities.