_Markets open today — RBI MPC decision at 10 AM IST_
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📊 *ECONOMY & POLICY*
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🏦 *RBI MPC D-Day: Repo Rate Decision at 10 AM*
The RBI’s June MPC meeting concludes today with Governor Sanjay Malhotra announcing the rate decision at 10 AM IST — repo rate at 5.25% with a hold widely expected, though Standard Chartered and BofA flag a non-trivial hike risk given crude near $96 and WPI at 8.3%.
With the rupee near ₹95/USD and the Iran conflict still live, this is one of the most closely watched MPC announcements in recent years — any hawkish surprise would hit rate-sensitive sectors hard.
📎 _Read: Business Standard_
🏦 *Cabinet Clears Capital Gains Tax Waiver on G-Secs for FPIs*
The Union Cabinet approved an ordinance exempting foreign portfolio investors from the 12.5% long-term capital gains tax on government bonds; removal of the 20% withholding tax on bond interest is also on the table.
The move — awaiting Presidential assent — is aimed at reversing ~₹2.5 lakh crore in FPI equity outflows YTD, supporting the rupee and deepening India’s debt market appeal to global funds.
📎 _Read: Business Standard_
🤝 *India Revamps BITs to Unlock Long-Term Foreign Capital*
India is overhauling its bilateral investment treaties to simplify arbitration timelines for foreign investors while retaining sovereign policy safeguards — a direct response to weakening FPI equity flows and the global economic realignment.
The reform signals India’s intent to move up the investment attractiveness ladder for patient, long-term capital at a time when equity inflows have dried up.
📎 _Read: Economic Times_
📉 *FPI Selling Slows in Financials; Metals Attract 60% of Foreign Inflows*
FPIs sold ₹5,181 crore in Indian financial stocks in the second half of May — sharply lower than the first half — suggesting the worst of the exodus may be moderating.
Metals absorbed nearly 60% of all FPI inflows as supply chain disruptions from the Iran conflict drive global commodity demand, offering a sectoral bright spot for Indian materials stocks.
📎 _Read: Economic Times_
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🏢 *COMPANIES*
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⚡ *Maruti Launches India’s First Flex-Fuel Car — Wagon R E100*
Maruti Suzuki launched the Wagon R Flex Fuel on June 4 — India’s first production passenger car capable of running on E20 to E100 ethanol — alongside Hero MotoCorp’s flex-fuel Splendor+ and HF Deluxe bikes.
Near-term volumes will be limited by sparse fuelling infrastructure (~50–100 E85/E100 stations), but the launch marks a strategic milestone in India’s drive to cut crude dependence and is positive for ethanol-chain plays.
📎 _Read: The Hindu Business_
📉 *SEBI Probes Rajesh Exports for Alleged Fraud and Fund Siphoning*
SEBI is investigating Rajesh Exports — India’s fourth-largest company by revenue — for accounting irregularities and suspected siphoning of funds through overseas operations, with promoter Rajesh Mehta at the centre.
Management has distanced itself from the overseas entities and auditors are also under scrutiny — a serious governance red flag for investors holding the stock.
📎 _Read: Economic Times_
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🌍 *GLOBAL & WORLD*
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🔥 *Putin: India Resisting US Pressure on Russia Ties; $100 Bn Trade Target*
President Putin confirmed Washington has been pressuring New Delhi over its strategic and economic ties with Moscow, but India is holding its position — and he expects bilateral trade to reach $100 billion.
India’s Russian crude imports rose to 1.92 mn barrels/day in May, underlining the energy dependency at the heart of this geopolitically sensitive relationship that Washington wants India to walk back.
📎 _Read: NDTV Profit_
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_Compiled by Daily Business Briefs · 05 Jun 2026_