_Markets open today — RBI MPC decision due 10 AM Friday_
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📊 *ECONOMY & POLICY*
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⚡ *Cabinet Creates ₹10,000 Cr ATF Stabilisation Fund*
The Union Cabinet approved a ₹10,000 crore fund to shield airlines from volatile jet fuel prices after Brent crude surged near $97/bbl.
Air India, Air India Express and IndiGo had already cut 250 daily domestic flights in June — this fund aims to prevent further capacity cuts and airfare spikes.
📎 _Read: The Hindu Business_
📉 *Rupee Hits 95.67 — Worst Close in Weeks*
The rupee fell 31 paise to 95.67 against the dollar on June 3, hammered by USTR’s proposed 12.5% tariff on India and renewed Iran-US hostilities.
FPI outflows crossed ₹24,109 crore in just the first two sessions of June, pushing the 2026 total FII selling to a record $26.8 billion.
📎 _Read: The Hindu Business_
🏦 *RBI MPC Tomorrow — Rate Hold at 5.25% Expected*
Governor Sanjay Malhotra announces the June MPC outcome at 10 AM Friday after three days of deliberations (June 3–5).
A third consecutive pause at 5.25% is the strong consensus — but with crude at $97, the rupee at 95.67, and monsoon below normal, the inflation commentary could turn hawkish and move rate-sensitive stocks sharply.
📎 _Read: Business Standard_
🤝 *India-US Trade Deal 99% Done — Final Mile in New Delhi*
US Ambassador Sergio Gor says the Bilateral Trade Agreement is 99% finalised, with USTR’s Brendan Lynch team wrapping up talks in New Delhi this week ahead of the July 24 tariff deadline.
India is simultaneously pushing to resolve the freshly proposed USTR 12.5% Section 301 forced-labour tariff within BTA negotiations rather than face a separate punitive duty.
📎 _Read: Business Standard_
⚡ *Petroleum Minister Pushes E85 — ₹195 Cr Forex Saved Per 1% Switch*
Minister Hardeep Puri said shifting just 1% of annual petrol vehicle sales to E85 ethanol fuel would save India ₹195 crore in forex annually, with E85 priced “substantially cheaper” than petrol.
The push gains urgency as crude above $96 keeps India’s import bill elevated — and Maruti is set to launch India’s first E100 vehicle on June 5.
📎 _Read: The Hindu Business_
⚡ *IEX: Peak Power Demand Hits All-Time High 270.82 GW in May*
India’s power exchange reported 18.6% growth in electricity traded volumes in May, with the Day-Ahead Market topping 4,400 million units as the summer heatwave pushed peak demand to a record 270.82 GW.
Strong structural tailwind for IEX and the broader power sector as India’s electrification and cooling demand accelerates.
📎 _Read: NDTV Profit_
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🌍 *GLOBAL & WORLD*
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🤝 *USTR Proposes 12.5% Extra Tariff on India — Section 301*
The US Trade Representative has formally proposed 12.5% additional duties on India and 53 nations, alleging failure to prohibit imports made with forced labour in third countries.
India has pushed back and wants it resolved within ongoing BTA talks before July 24 — but public hearings are set for July 7, meaning the tariff cloud will hang over negotiations for weeks.
📎 _Read: Business Standard_
💻 *Nvidia CEO: Marvell Could Be a Trillion-Dollar Company*
Jensen Huang publicly projected Marvell Technology as a potential trillion-dollar firm, driven by AI networking, custom silicon and optical connectivity — sending its shares up 26%.
For India, this signals where global AI infrastructure capex is flowing, and which Indian IT firms with strong AI and networking practices stand to benefit from large deal wins.
📎 _Read: Economic Times_
🚀 *SpaceX Eyes Nasdaq IPO at $135/Share — $1.75 Trillion Value*
SpaceX is reportedly targeting a Nasdaq listing around June 12 at $135 per share, which would make it the world’s largest IPO at a $1.75 trillion valuation.
A listing of this magnitude would redirect a significant slug of global risk capital into US markets, adding fresh headwinds to FII flows into Indian equities in the near term.
📎 _Read: Business Standard_
💡 *FII Outflows Hit Record $26.8 Bn — North Asian AI Boom the Culprit*
Foreign portfolio investors have pulled a record $26.8 billion from Indian equities in 2026, driven not by India-specific weakness but by explosive AI-driven earnings in Korean and Taiwanese chipmakers pulling capital away.
Morgan Stanley argues India’s fundamentals — 15% EPS growth, strong PMIs — remain intact, but the outflow pressure will persist until crude stabilises and the global AI capex cycle moderates.
📎 _Read: NDTV Profit_
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_Compiled by Daily Business Briefs · 04 Jun 2026_