_Markets open today_
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📊 *ECONOMY & POLICY*
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⚡ *Govt Waives Excise Duty on Higher Ethanol Blends*
The government has exempted excise duties on E22–E30 ethanol-blended petrol variants meeting BIS specifications, directly improving economics for OMCs and advancing India’s 30% ethanol blending target.
With Brent near $94, this move cushions OMC margins and is a structural positive for sugar mills, distilleries, and IOCL’s ethanol procurement pipeline.
📎 _Read: NDTV Profit_
📈 *PLI Textiles Round-III: 96 Firms, ₹12,822 Cr Committed*
The government has cleared 96 companies — including 22 new entrants — under the third round of the textile PLI scheme, locking in ₹12,822 crore of investment and an expected ₹15,561 crore turnover with 36,217 jobs across MMF and Technical Textiles.
Textile stocks and downstream contract manufacturers are in direct focus; the scheme further cements India’s positioning as a global MMF manufacturing hub.
📎 _Read: Business Standard_
🛣️ *CPSE + Railways + NHAI Capex at 17%+ of FY27 Target in Just 2 Months*
Government-owned entities collectively deployed over 17% of their full-year FY27 capex target in April–May alone, with GAIL leading among 63 CPSEs, even as private capex intentions fell 16.5% in the same period.
The government is once again the dominant investment engine this cycle — a direct tailwind for EPC order books, infrastructure materials (steel, cement), and capital goods companies.
📎 _Read: BusinessLine_
🏦 *PSU Financiers Eye $5 Bn ECBs via RBI’s New Hedge Window*
Following RBI’s new special hedging facility for external commercial borrowings, top PSU financial institutions — including HUDCO targeting ~$1 billion by month-end — are racing to raise over $5 billion in cheaper foreign currency debt.
Lower borrowing costs for state financiers translate directly into cheaper lending for infrastructure projects, making this a meaningful positive for NBFCs with large infra books.
📎 _Read: Mint_
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🏢 *COMPANIES*
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🏦 *President Approves REC–PFC Merger*
The President of India has given the green light to merge REC Ltd into Power Finance Corporation, per a Ministry of Power letter dated June 10 — the highest sovereign approval required, though share exchange ratio, detailed scheme, and legal formalities remain pending.
Analysts flag a key structural risk: government ownership in the combined entity may dip below the 51% threshold, making the final merger scheme design a critical watch point for investors in both stocks.
📎 _Read: Goodreturns_
💻 *Deloitte India–SAP Open AI Delivery Centre in Bengaluru*
Deloitte India and SAP have jointly launched an AI-led enterprise delivery centre in Bengaluru, targeting cloud adoption and AI-powered transformation for their shared customer base, with 300–500 AI professionals to be added.
The hub is part of a broader wave of global tech partnerships anchoring R&D and delivery capacity in India — positive for Bengaluru’s tech real estate corridor and domestic IT services talent demand.
📎 _Read: BusinessLine_
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🌍 *GLOBAL & WORLD*
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💡 *ECB to Hike; Dollar Softens on Iran Fears + Soft US CPI*
The European Central Bank is set to raise rates to combat re-accelerating European inflation, while the US dollar weakened as Middle East uncertainty combined with a softer-than-expected US core CPI print (0.2% m/m vs 0.3% consensus).
A weaker dollar is a near-term tailwind for the rupee and EM flows into India, though persistent Fed hike expectations cap how far that relief can extend.
📎 _Read: Economic Times_
📉 *Gold Hits 6-Month Low as Oil-Driven Inflation Lifts Rate-Hike Fears*
Gold slid to a six-month low — falling over 3% — as Iran-driven oil price gains rekindled inflation fears and reinforced higher-for-longer rate expectations, reducing the appeal of the non-yielding metal.
For Indian investors, lower gold prices ease jewellery import costs but the signal is unambiguous: risk-off conditions are tightening, and consumption of discretionary gold may soften in coming months.
📎 _Read: Economic Times_
🔥 *PIMCO: “Credit Loss Cycle Has Begun” — Favours Quality Bonds*
PIMCO has warned that a global credit loss cycle is underway, driven by AI-related leverage, maturity extensions, and payment-in-kind structures that have been masking actual credit stress — with defaults and elevated losses expected in leveraged and private direct lending.
For Indian markets, tighter global liquidity and wider USD credit spreads are a watch point for frequent international debt issuers including Adani group entities, RIL, and other corporates with large ECB programmes.
📎 _Read: Economic Times_
📈 *Bond Markets Hold Fed Hike Bet for 2026 Despite Soft CPI*
Despite a below-consensus US core CPI reading, bond traders have maintained their expectation of a Federal Reserve rate hike by year-end 2026 — with Iran-driven inflation fears dominating the rate-cut narrative.
A first Fed hike in several years would have direct implications for EM capital flows, USD/INR direction, and Indian bond yields — making this one of the most consequential global macro variables to watch over the next two quarters.
📎 _Read: Economic Times_
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_Compiled by Daily Business Briefs · 12 Jun 2026_