_Markets open Monday — MPC decision delivered Jun 5_
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📊 *ECONOMY & POLICY*
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🏦 *RBI Holds Repo at 5.25%; Trims Growth Forecast*
The MPC voted unanimously to keep the repo rate unchanged at 5.25% with a neutral stance, flagging West Asia tensions, elevated crude and monsoon uncertainty as rising inflation risks.
FY27 GDP growth projection was cut to 6.6% from 6.9% and inflation guidance raised to 5.1% — rate cuts are firmly off the table; a cautiously hawkish hold.
📎 _Read: Business Standard_
🏦 *India GDP at 7.8% for Q4 FY26; Full Year 7.7%*
MoSPI confirmed Q4 FY26 growth at 7.8% and the full fiscal year at 7.7%, beating most street estimates, though the print includes only one month of Hormuz Strait disruption impact.
The real test comes in Q1 FY27, which will absorb the full energy shock — the growth peak of FY26 is likely behind us.
📎 _Read: Business Standard_
🏦 *Govt Scraps Capital Gains Tax on G-Secs for FPIs*
The Centre promulgated an ordinance — Cabinet and Presidential assent secured — fully exempting foreign portfolio investors from tax on G-Sec interest and capital gains, effective April 1, 2026.
The RBI simultaneously expanded the FAR route to all new long-dated bonds and removed FPI concentration limits; analysts estimate FPI post-tax returns on Indian sovereign debt improve by 15–20%, with global bond index inclusion now a nearer prospect.
📎 _Read: Business Standard_
💡 *India Eases BIT Rules to Court Long-Term Foreign Capital*
India is revamping bilateral investment treaty frameworks to shorten arbitration timelines for foreign entities, while retaining sovereign policy safeguards against treaty exploitation.
The move targets hesitant greenfield investors wary of legal risk — a constructive signal for FDI in manufacturing and infrastructure as the China-plus-one realignment accelerates.
📎 _Read: Economic Times_
🔋 *India–UK Launch Critical Minerals Supply Chain Observatory*
India and the UK formally activated the Critical Minerals Global Supply Chain Observatory, first announced in October 2025, to coordinate on mineral coverage, tracking technology and supply security.
With the global EV and clean energy transition driving demand for lithium, cobalt and rare earths, the bilateral framework gives both countries an intelligence edge on mineral flows at a strategically critical moment.
📎 _Read: BusinessLine_
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🏢 *COMPANIES*
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📈 *Maruti Unveils India’s First Flex-Fuel Car*
Maruti Suzuki launched the WagonR Flex Fuel — India’s first production-spec E85-compatible passenger vehicle — at a Delhi event attended by ministers Gadkari and Puri, with Mahindra, Tata and Toyota all developing their own FFV models.
Near-term volumes will be limited, but the launch marks a structural milestone for India’s ethanol blending programme and is a positive demand signal for domestic sugar and ethanol producers.
📎 _Read: BusinessLine_
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🌍 *GLOBAL & WORLD*
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📉 *Fed’s Schmid: Rate Hikes Back on the Table*
Kansas City Fed President Jeffrey Schmid said the Fed may need to consider rate increases as US inflation hovers near 3.5% — well above target — driven by tariff pass-through and elevated energy costs.
A Fed tightening cycle would tighten global liquidity, pressure the rupee and partially offset India’s newly attractive G-Sec tax concession for foreign investors.
📎 _Read: Economic Times_
📉 *Oracle Cuts 30,000 Jobs — 18% of Global Workforce*
Oracle is finalising the exit of approximately 30,000 employees as it restructures around AI-driven product lines, marking one of the largest enterprise tech layoffs of 2026.
For Indian IT services firms, this is a dual watch: Oracle is both a channel partner and a platform for several mid-tier players, and broad enterprise tech cost-cutting typically precedes a slowdown in discretionary IT spend.
📎 _Read: Pulse by Zerodha_
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_Compiled by Daily Business Briefs · 06 Jun 2026_