Indian stocks are set for a muted start to the week following Russia’s recent turmoil. Indian shares experienced their first weekly loss in over a month last week, and crude prices have risen due to concerns over the supply chain of oil. There was a brief mutiny by mercenaries in Russia that caused initial concern, but the challenge was eventually averted. Concerns also arose about political stability in Russia. Brent crude prices rose for Asian trade, which is a negative for countries such as India, where crude oil makes up a significant share of the country’s import bill, and higher prices could impact the country’s current account deficit.
In the latest news from India, the regulatory authority has granted approval for the transfer of HDFC Life Insurance Company’s shares from HDFC Ltd to HDFC Bank. Meanwhile, US FDA inspections have revealed eight observations at the Pithampur formulations manufacturing facility, which is owned by Indian company, Ipca Laboratories.
India’s central bank has imposed a monetary penalty on the Bank of Maharashtra, Axis Bank and Jammu and Kashmir Bank for non-compliance with some directions. Additionally, the boards of ICICI Bank and ICICI Securities are set to consider delisting ICICI Securities shares on 29 June.
Finally, NDTV has reported that tax evasion up to the sum of $2.80 billion has been found at multiple locations of Shree Cement in Rajasthan. The company has denied the allegations, but income tax officials are conducting surveys to investigate the situation.
Foreign investors are selling their Indian equity holdings, which will further increase the pressure on the Indian markets. Domestic investors are also selling their shares, with a total worth of 6.84 billion rupees sold last week. The Nifty 50 index consolidated just short of record levels last week, while the S&P BSE Sensex eased after hitting an all-time high. The Indian stock futures listed on the Singapore Exchange were up 0.02% as of 07:48 a.m. IST.
