India is likely to see a GDP growth of 6.5 per cent in current fiscal (FY26) due to robust domestic demand, a normal monsoon and monetary easing, a report by S&P Global Ratings said on Tuesday.

Domestic demand resilience is particularly relevant in limiting the economic slowdown in economies less exposed to goods exports such as India.

“We see India's GDP growth holding up at 6.5 per cent in fiscal 2026 (year ending March 31, 2026). That forecast assumes a normal monsoon, lower crude oil prices, income-tax concessions and monetary easing,” said the report covering Asia-Pacific economies.

In India, falling food inflation also helps contain headline inflation.

The country’s annual rate of inflation based on the Wholesale Price Index (WPI) eased further to a 14-month low of 0.39 per cent in May from 0.85 per cent in April and 2.05 per cent in March.

The Indian benchmark indices opened in green on Tuesday amid positive global cues, as geopolitical tensions eased after Iran–Israel ceasefire announced by US President Donald Trump.

Buying was seen in the auto, IT, PSU bank and financial service sectors in the early trade.

At around 9.31 am, Sensex was trading 756.5 points or 0.92 per cent up at 82,653.33 while the Nifty added 229 point or 0.92 per cent at 25,200.90

According to analysts, the dramatic developments in West Asia culminating in President Trump’s announcement of ceasefire indicate that the worst of the conflict is over.

"The sharp reactions in the crude oil and stock markets suggest the geopolitical situation limping back to normalcy," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

The Indian stock markets started the week on a weak note as tensions escalated in the Middle East, after the United States bombed three nuclear facilities in Iran, showing clear support for Israel in the ongoing conflict.

The development made investors cautious, leading to a fall in benchmark indices on Monday. The Sensex dropped 511.38 points, or 0.62 per cent, to close at 81,896.79. During the intra-day, it moved between a high of 82,169.67 and a low of 81,476.76.

Similarly, the Nifty also ended in the red. It fell 140.50 points, or 0.56 per cent, to settle at 24,971.90. The index had touched an intra-high of 25,057 and a low of 24,824.85 during the session.

Interestingly, broader markets performed better than the frontline indices. The Nifty Midcap100 closed with a gain of 0.36 per cent, while the Smallcap100 rose 0.70 per cent.

While geopolitical tensions in the Middle East, including the ongoing Iran-Israel conflict, pose certain challenges to global trade dynamics, India’s export sector remains resilient and adaptive, the Federation of Indian Export Organisations (FIEO) said on Monday.

The country’s trade with both Iran and Israel, while important, constitutes a small share of the overall export-import basket.

"The government and industry are jointly monitoring developments to ensure minimal disruption," FIEO President S.C. Ralhan said.

"We do anticipate some short-term impact on demand and logistics, particularly in the Gulf region, which serves as a crucial hub for Indian exports. Increased shipping costs, longer transit times, and rising marine insurance premiums may add pressure, especially in price-sensitive sectors," he said in a statement.

Global capital can no longer overlook India's structural economic advantages, as the nation is poised to significantly outpace G7 economies in growth, according to a report released on Monday by wealth management firm Equirus.

The report identifies strong macro fundamentals, policy-led capital expenditure, a resurgence in rural consumption, and structural manufacturing shifts as key long-term drivers of India's growth in an uncertain global environment.

“India is no longer the world’s fastest-growing economy just on paper -- it is structurally better positioned than most G7 nations. That’s a seismic shift,” said Mitesh Shah, CEO, Equirus Credence Family Office.

"The global macro regime is shifting. US growth has been revised down sharply, and while India is projected to contribute over 15 per cent to global GDP growth (2025-2030), traditional 60/40 portfolios are breaking down. In this new regime, strategic asset allocation across geographies and growth cycles isn’t optional -- it’s the alpha generator," he added.

Indian economic activity has surged to a 14-month high in June as companies scaled up output in response to faster increases in total new business intakes and a record upturn in export orders, according to the HSBC flash PMI data released on Monday.

The HSBC Flash India Composite Output Index – a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors, climbed to a 14-month high of 61.0 in June.

Rising from 59.3 in May, the latest reading was consistent with a sharp rate of expansion that was well above the long-run series average.

Manufacturers led the upturn in business activity, though growth also picked up pace in the service economy. Rates of increase were at two and ten-month highs, respectively.

With pending workloads continuing to accumulate, firms remained in hiring mode.

Private equity and venture capital (PE-VC) investments in India stood at $2.4 billion across 97 deals in May, according to a report released on Monday.

The EY-IVCA report said that startup investments were the highest deal type last month, followed by growth investments at $0.7 billion.

From a sector point of view, financial services was the top sector in May, recording $758 million in investments, followed by real estate ($380 million).

“PE/VC activity continues to remain subdued, as reflected in the limited deal flow and reduction in large deals (deals above $100 million). Heightened geopolitical tensions, US tariff policy and other external headwinds have dampened investor sentiment, resulting in a cautious and wait-and-watch approach,” said Vivek Soni, Partner and National Leader, Private Equity Services, EY.

In terms of the number of deals, pure-play investments declined by 16 per cent, whereas the real estate and infrastructure asset classes declined by 64 per cent year-on-year.

PE/VC exits stood at $1 billion across 18 deals in May. Open market exits accounted for 77 per cent of the total exit value in May 2025 ($797 million).

Oil prices rose to their highest level since January this year on Monday after the US strikes on nuclear facilities in Iran, with the country threatening to shut Strait of Hormuz, through which around 20 per cent of global crude supply flows.

Brent crude futures was up $1.92 or 2.49 per cent at $78.93 a barrel early on Monday. US West Texas Intermediate crude increased $1.89 or 2.56 per cent to $75.73.

Brent crude prices surged as much as 5 per cent. However, prices could not sustain at those levels and pared the early advance almost immediately.

Crude oil prices extended gains for a third straight week amid rising geopolitical tensions and a sharper-than-expected drawdown in US inventories.

The Indian benchmark indices opened in the red on Monday amid weak global cues due to rising Middle East tensions, as selling was seen in the IT and auto sectors in the early trade.

At around 9.30 am, Sensex was trading 677.10 points or 0.82 per cent down at 81,731.07 while the Nifty declined 204.6 point or 0.81 per cent at 24,907.75

Nifty Bank was down 387.75 points or 0.69 per cent at 55,865.10 The Nifty Midcap 100 index was trading at 57,776.05 after dropping 219.45 points or 0.38 per cent. Nifty Smallcap 100 index was at 18,148.95 after declining 45.25 points or 0.25 per cent.

According to analysts, even though the US bombing of Iran’s three nuclear facilities has worsened the crisis, the impact on the market is likely to be limited. The uncertain factor now is the timing and nature of the Iranian response.

Celebrating the International Yoga Day, Isha Foundation conducted free Yoga sessions for over 10,000 defence personnel across the country.

In total, more than 2,500 free sessions were held nationwide, witnessing enthusiastic participation from defence personnel, corporate professionals, students, and civilians alike, Isha Foundation said in an official statement on Saturday.

This large-scale initiative was made possible through the training of over 11,000 Yoga Veeras, who led sessions in both online and offline formats across a wide range of locations, including defence facilities, schools, colleges, office premises, gyms, and prisons. Additionally, more than 2,000 youth ambassadors actively promoted the importance of mental well-being while introducing Miracle of Mind, a simple yet powerful 7-minute guided meditation designed by Sadhguru to help users take charge of their mental health, the Isha Foundation stated.