India’s industrial activity is expected to accelerate in the second half of the current financial year on the back of recovering consumption demand and higher export growth while inflation is likely to ease, according to a CRISIL report released on Friday.

“So far, high food inflation, elevated interest rates and slowing credit growth have impacted consumption recovery. However, with food inflation showing signs of easing, the space for discretionary consumption is expected to increase,” the report states.

Moreover, the rural economy will likely improve following healthy agricultural production this year, it adds.

However, the urban economy is facing waning support from credit growth amid elevated interest rates. A lower fiscal impulse from the government is further expected to have a moderating impact on GDP growth. While the government capex is expected to revive in the second half of this fiscal, growth is likely to moderate relative to the previous fiscal. A revival in private investment is critical to sustain the investment momentum, the report points out.

Indian benchmark indices Sensex and Nifty fell more than 1 per cent on Friday. At around 10.51 a.m., the Sensex fell 1,017.03 points or 1.25 per cent to 80,272.93, while the Nifty fell 306.80 points or 1.25 per cent to 24,241.90.

The market trend remained negative. On the National Stock Exchange (NSE), 340 stocks were trading in green, while 2,047 stocks were in red.

The market remained in turmoil due to heavy selling by Foreign Institutional Investors, the rising US bond yields and ongoing conflicts in the Middle East. On the other hand, the decision to be taken by the Federal Reserve on interest rates on December 18 has increased concern in the market.

Foreign institutional investors (FIIs) sold shares worth Rs 3,560.01 crore in the Indian market on December 12, while domestic institutional investors bought shares worth Rs 2,646.65 crore on the same day.

Following a string of online bomb threats in the country, the Reserve Bank of India (RBI) has received a bomb threat via email, second such incident in a month for the Central Bank.

Apparently written in the Russian language, the email was sent to the official website of the Central Bank on Thursday afternoon, threatening to blow up the building with explosives.

The police have registered a case against the unknown sender at Mata Ramabai Marg (MRA Marg) police station in Mumbai.

The authorities were actively investigating the matter and working to track down those responsible for the email threat.

On November 16, a similar bomb threat was received on the RBI's customer care number and the caller claimed to be the "CEO of Lashkar-e-Taiba".

The Indian stock market opened in red on Friday as selling was seen in Nifty's all sectors in early trade.

At around 9:29 am, Sensex was trading at 80,840.9 after declining 449.02 points or 0.55 per cent, while Nifty was trading at 24,421.15 after dropping 127.55 points or 0.52 per cent.

The market trend remained negative. On the National Stock Exchange (NSE), 559 stocks were trading in green, while 1,657 stocks were in red.

According to market experts, “November CPI inflation at 5.48 per cent has come within the RBI’s tolerance limit. If this trend continues it can pave the way for a rate cut by the monetary policy committee (MPC) in February.”

Total FDI inflows into India over the last decade (April 2014 to September 2024) amounted to $709.84 billion, accounting for 68.69 per cent of the overall FDI inflow in the past 24 years which crossed the $1 trillion mark, according to the Commerce and Industry Ministry’s year-end review released on Thursday.

“This landmark achievement was bolstered by a nearly 26 per cent rise in FDI to $42.1 billion during the first half of the current fiscal year,” the review stated.

Such growth reflects India’s increasing appeal as a global investment destination, driven by a proactive policy framework, a dynamic business environment, and increasing international competitiveness, the statement said.

FDI has played a transformative role in India’s development by providing substantial non-debt financial resources, fostering technology transfers, and creating employment opportunities.

India’s retail price inflation based on the Consumer Price Index (CPI) declined to 5.48 per cent in November as the increase in prices of food items eased during the month bringing relief to household budgets, said the Ministry of Statistics on Thursday.

The slowing inflation marks a reversal of the increasing trend in the previous two months when the inflation rate touched 6.21 per cent in October.

“During the month of November, a significant decline in inflation is observed in vegetables, pulses, sugar and confectionery, fruits, eggs, milk and products, spices, transport and communication and personal care and effects subgroups,” according to the official statement.

The top five items showing the highest year on year Inflation at the all-India level in November are garlic (85.14), potato (66.65), cauliflower (47.70), cabbage (43.58) and coconut oil (42.13), according to the official figures.

The Indian stock market closed lower on Thursday ahead of the CPI data as selling was seen in the media and FMCG sectors.

At closing, Sensex settled at 81,289.96 down by 236.18 points, or 0.29 per cent and Nifty ended at 24,548.70 down by 93.10 points, or 0.38 per cent.

According to experts, "the market continued to remain range bound ahead of domestic CPI data and weakening rupee. Though inflation is anticipated to drop, investors are maintaining a close vigil on the vegetable prices, which will determine the future rate trajectory."

"Nifty IT index reached a new high after US inflation data met expectations, boosting hopes for a Fed rate cut next week," they added.

Share of the top 50 stocks in the total market capitalisation has hit an all-time low, according to a report on Thursday.

The December edition of the DSP Netra report said, "Large-cap stocks are now at their smallest share of total market capitalisation. The share of the top 50 or top 10 stocks relative to the total market has hit an all-time low, presenting a rare opportunity for investors."

"While large caps remain relatively attractive on a comparative basis, the current market environment underscores the need for caution amidst volatility. This backdrop makes a conservative approach to large-cap investing essential, offering a strategic advantage for long-term investors amidst uncertain and unpredictable conditions," the report stated.

As per the report, "India's long-term market outperformance is often attributed to factors like domestic flows or robust GDP growth, but the real driver is its superior returns on equity (ROE). About one-third of Indian companies have consistently achieved an ROE of over 20 per cent, second only to the US in this regard."

The Indian stock market opened marginally up on Thursday ahead of the consumer price index (CPI) data. In the early trade, selling was seen in Nifty's auto and PSU bank sectors.

At around 9:30 am, Sensex was trading at 81,633.07 after gaining 106.93 points or 0.13 per cent, while the Nifty was trading at 24,658.25 after rising 16.45 points or 0.07 per cent.

The market trend remained positive. On the National Stock Exchange (NSE), 1,124 stocks were trading in green, while 1,065 stocks were in red.

According to market experts, "The range-bound consolidation construct of the market is set to continue. The bull run in the US is continuing unabated with Nasdaq setting a new record and closing above 20,000 yesterday."

India’s total non-fossil fuel installed capacity reached 213.70 GW in November, marking an impressive 14.2 per cent growth from 187.05 GW in the same month last year, the government said on Wednesday.

Ministry of New and Renewable Energy (MNRE) reported significant progress in India’s renewable energy sector from November 2023 to November 2024, underscoring the country’s commitment to achieving its clean energy targets in line with the goals set by Prime Minister Narendra Modi.

Meanwhile, the total non-fossil fuel capacity, which includes both installed and pipeline projects, surged to 472.90 GW, a substantial 28.5 per cent increase from the previous year’s 368.15 GW.

During FY24-25, a total of 14.94 GW of new RE capacity was added till November 2024, nearly doubling the 7.54 GW added during the same period in FY23-24, according to the Ministry of New and Renewable Energy.