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India shares and rupee drop on Modi's austerity call, while crude prices spike
Indian shares and the rupee fell on Monday after Prime Minister Narendra Modi called for a series of measures including fuel conservation, less imports, and gold purchases as surging energy prices put pressure on foreign exchange reserves. India, the world's largest oil importer and consumer and third-largest oil importer, said late last month that there was no plan to increase the pump prices of diesel and gasoline. It is one of the few countries who have not raised prices despite global price increases. The Nifty 50 dropped 1.49%, to?23.815.85. Meanwhile, the BSE Sensex fell 1.7%, to 76.015.28. The rupee recorded a record-breaking closing?low at 95.31 to the dollar, falling about 0.9% for the day. This is its steepest drop in a single-day since March 27. Brent crude rose more than 2.6%, to around $104 per barrel, after U.S. president Donald Trump dismissed the Iranian response on Sunday to Washington's peace proposal as "unacceptable." Arun Kejriwal of?Kejriwal Research and Investment Services called the market's slide on Monday a "knee jerk reaction" after the Prime Minister's remarks. He said that the oil prices, which refuse to drop and remain below $100 despite efforts by Iran and the U.S. for peace, will continue to weigh on sentiment. 13 of 16 major sectors posted losses. Small-caps and midcaps both fell by about 1.5%. Oil marketing companies - Indian Oil, BPCL, and HPCL all fell between 2.3% and 3%. Reliance Industries, the index heavyweight, lost 3.3%. Stocks of travel-related companies such as Indian Hotels, Lemon Tree, Chalet Hotels, Thomas Cook, and Yatra Online have fallen between 1% to 4.5%. Airline ?operator IndiGo lost 4.9%. Jewellers' shares also fell. Shares of Senco Gold, Kalyan Jewellers and Titan all fell between 6.7% to 9.3%. State Bank of India dropped 4.5% and extended losses after missing the quarterly profit forecast, pulling?PSU Banks 2.5% lower. Hyundai Motor India ?rose 2.8% on a smaller-than-expected fall in quarterly profit, and agro chemicals firm UPL gained 3.6% on quarterly profit rise.
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Zelenskiy: 20 countries interested to deal with Ukraine on drones
Volodymyr Zelenskiy, Ukrainian President said that nearly 20 countries are interested in drone agreements with Ukraine. Four agreements have already been signed. Zelenskiy, who has been visiting the Middle East and Europe since the Iran War began in late February 2011, has leveraged Ukraine's drone warfare expertise into a number of successful diplomatic agreements. Zelenskiy stated?on X that "nearly 20 countries have been involved in a variety of stages. Four agreements have already signed and the first contracts based on these?agreements is now being prepared." After signing long-term security agreements with Saudi Arabia and Qatar in late March, Ukraine signed deals on drones and defence in Germany, Norway, and the Netherlands in April. Ukraine and Azerbaijani president Ilham Aliyev signed agreements on defence, energy and other issues last month. Zelenskiy said in his blog that Ukraine will launch security cooperation with another country within the framework of drone deals, but did not specify which. Zelenskiy, without elaborating, said that Ukraine has already begun to receive the necessary amount of fuel, thanks to these agreements. Zelenskiy is hoping that his drone diplomacy can help Ukraine secure energy supply deals with Middle Eastern countries as well as market for its agricultural products. (Reporting and editing by Gareth Jones; Anna Pruchnicka)
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Europe invested 200 billion euros so far to boost EV sector, New Automotive data shows
New Automotive data released on Monday showed that countries in the European Economic Area and Switzerland invested almost 200 billion euros ($235 billion) into their electric vehicle eco-system. The continent has invested a total of?60 billion euro in the battery supply chain to date, as it tries its best to compete with China's monopoly. The International Energy Agency reported earlier this year that China will produce more than 80% all batteries in 2025. This includes those used for applications outside of the EV industry. New Automotive reported that "Europe produces batteries for about one-third of the?EVs sold in the United States, and capacity announced could meet future demands if fully utilized." The research group whose stated goal is to accelerate the transition to electric vehicles said that 60?billion euro was also invested in EV production, centered on the conversion and?selective? new EV-only facility. The public rollout of charging infrastructure in Europe has cost between 23 billion and 48 billion euros. Over 1 million public charging stations have been installed across Europe. Over 3.5 billion euro were invested into the manufacturing of this infrastructure. In a separate press release, Chris Heron (secretary general of the campaign group E-Mobility Europe) said that these investments supported more than 150 000 jobs. If all projects announced are fully realized, a further 300.000 jobs will be created. New Automotive's report, however, revealed a disparity at the national level. Germany, a major auto manufacturer, accounted for almost a quarter (25%) of investments in the region. New Automotive reported that "the country anchors both domestic production as well as wider European value chains. Leading OEMs are?transitioning on a large scale along with?major battery manufacturers," New Automotive stated. After pressure from the region’s auto industry, the European Commission announced a plan to lift the European Union’s effective ban on new combustion-engine vehicles from 2035. This is the biggest retreat in recent years from the green policies of the bloc. Heron stated that Germany, Italy, and 'Central and Eastern Europe' have officially opposed the EU 2035 framework for cars and vans, while more than half of tracked investments are concentrated within these regions. He added that "France, and Spain are the other two major beneficiaries of these investments".
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Stocks of Indian jewellers fall after Modi calls for a pause in gold purchases to protect the rupee
Shares of Indian jewellery retailers fell on Monday after Prime Minister Narendra modi asked people to refrain from purchasing gold for one year in order to protect their foreign exchange reserves. This sparked fears of tariff increases to curb the imports of metal. Oil prices have soared since the Iran War, which has put pressure on India's balance-of-payments and the rupee. India is the third largest oil consumer and importer in the world, importing more than 90% its crude 'oil and half its natural gas needs. Modi's comments about gold on Sunday were made in tandem with other measures that were urged. These included fuel conservation, a greater number of people working at home, and limitations on travel and imports. India is in high demand for gold, especially at weddings. Gold jewellery is seen as an important?part of the bride's outfit and a popular gift given by family and friends. India is the second largest gold consumer in the world, but imports are used to satisfy nearly all its needs. On Monday, shares of jewellery manufacturers such as Titan Gold, Senco Gold, and Kalyan Jewellers dropped between 6% to 8%. Surendra Mehta is the national secretary of the India Bullion and Jewellers Association. He said that there are fears the government may increase import duties on gold by a large amount for one year to discourage imports. "Duties may be increased even higher than in previous years." New Delhi raised tariffs on imports of gold in?2012-2013 to stabilize a rapidly depreciating rupee. Jewellers are now concerned that the duty reductions made to reduce smuggling in 2024 from 15% to 6% could be reversed. However, a government source stated on Monday that India does not plan to raise import duties on gold and silver. India's balance-of-payments is projected to decline sharply in this fiscal year, with a deficit ranging from $66 billion to $70 billion. This compares to an estimated $26 billion to $28 billion between 2025 and 26. The central bank has been prompted to limit the size and number of positions banks can hold in order to reduce the pressure on the rupee. The central bank has also tightened up on arbitrage trading.
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Sources say that Saudi crude exports from China to China reached a record low in June due to high prices.
Trade sources said that Saudi Arabian crude oil exports to China are set to drop further in June as buyers reduce nominations due to high 'prices' linked to the U.S./Iran conflict. They said that Saudi Aramco, the state oil giant, will be shipping about 10 million barrels (333,333 barrels) of oil per day to its Chinese customers next month. This would be a "record low" according to Kpler & Co., and compares with the?average of 1.39 million bpd shipped by the Kingdom to China between?2025 and?2025. According to sources who weren't authorized to speak to the media, major Chinese refiners such as Sinopec and Sinochem, have reduced their lifting in June. Saudi?Aramco, and the other companies, did not respond immediately to a comment request. Saudi Arabia set its official selling price for June Arab Light crude to Asia last week at $15.50 per barrel. This is down from the previous month's record of $19.50. Sources said that the reduction was less than what some Chinese buyers wanted, and kept Saudi crude at a high price. Chinese?state owned oil majors lowered their operation rates by a further 5% in?April compared to the previous month, as the?oil supply from the Strait of?Hormuz remained largely closed. Since the war broke out in February, Saudi Arabia's crude exports have plummeted. It has since rerouted its oil exports via the East-West Pipeline to the Red Sea Port of Yanbu. (Reporting and editing by Bernadettebaum in Singapore, Siyi Liu)
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Iron ore prices rise for the sixth consecutive day, thanks to positive Chinese data
Iron ore futures rose for the?sixth session on Monday, thanks to a number of?upbeat data coming from China, the world's largest steel consumer. Lower steel exports are expected to help balance?steel?prices and steel -mill margins, while lower inventories and iron ore shipments year-on-year have helped support prices. The September contract for iron ore on China's Dalian Commodity Exchange was 0.73% higher, at 822.5 Yuan ($121.04) per metric ton. As of 0725 GMT, the benchmark June iron ore traded on Singapore Exchange was $111.4 per ton?an increase of 0.88%. Customs data released on Saturday showed that China's exports of steel fell by 9% from the same period last year. Shipments that had prompted complaints from trading partners also recorded their lowest level since 2023. China exported 9.5 million tons of steel in April, up by 4% compared to March but still down on the record pace set last year. Steel prices and steel mill margins are pushed up by lower steel exports. Imports of iron ore in April were down 0.8% compared to the previous month, as steel margins shrank. This slowed the demand for this key ingredient. Last month, the world's biggest iron ore consumer imported 103.9 million tonnes. This is down from 104.74 millions tons in March and 103.14 in 2025. According to data from consultancy Mysteel, in April the average daily hot-metal output, which is a measure of iron ore demand, increased by 4.6%. Portside inventory Steelhome's data showed that iron ore inventories in major Chinese ports fell by 0.79% week-on-week, according to Friday's data. According to Steelhome's data on Friday, the iron ore stock at major Chinese port?decreased by 0.79% from week-to-week. Coking coal and coke are now included in the DCE. The Shanghai Futures Exchange steel benchmarks mostly rose. Rebar rose 0.34%; hot-rolled coils hardened 0.34%; and wire rod increased 1.56%. Stainless steel, meanwhile, fell by 0.56%.
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Ambani’s Reliance Jio : Businesses and investors of IPO-bound company
Reliance Jio Platforms, owned by Indian billionaire Mukesh Ambani, is preparing to apply for regulatory approvals to list in Mumbai. This is expected to be the largest-ever stock offering in India. Jio Platforms is the second largest telecom company in the world by number of users, after China Mobile. TELECOM BUSINESS Reliance Jio Platforms is part of Ambani’s oil-to retail conglomerate,?Reliance Industries. Reliance Jio Infocomm is its most well-known business. It has more than 500,000,000 subscribers and is the largest telecom company in the country. In 2016, when Jio was launched, it offered free voice and data to rivals like Bharti Airtel, Vodafone Idea, and others. Ambani’s usual strategy of offering ultra low prices to attract consumers was followed by this move. It increased its customer base, and many Indians were able to access platforms like YouTube and Facebook for their first time. Jio claims to have a 60% share in India's data traffic. Reliance Jio Platforms, a telecom company, has expanded beyond telecom to include AI, cloud, enterprise network services and app development. Nvidia and Reliance announced a partnership in 2023 to develop cloud infrastructure, language models, and AI. THE LEADERSHIP Mukesh Ambani is chairman of Jio Platforms, the largest platform in Asia. Akash, Anant, and Isha Ambani are his three children who serve on the board. Akash Ambani is his older son and chairman of Reliance Jio Infocomm, the company's flagship unit. Reliance Industries owns?66.43% of Jio Platforms. Kiran Thomas is the CEO of Jio Platforms. KEY FINANCIALS AND VALUATION Reliance Jio Platforms operating revenues in the last financial period ending March 2025 were $13,65 billion. 90% of the revenue came from the telecom sector, which has grown by 13% annually since 2020-21. Reliance Jio Platforms reported a profit of $2.8 billion after taxes for the year. Jefferies, an investment bank, estimated Reliance Jio’s valuation at $180 billion in November. In January, sources said that the IPO's value could be as high as $4 billion. However, final numbers won't be determined until later. MARQUEE INVESTORS Jio Platforms will raise more than $20 billion in 2020 from 13 investors around the world, for an equity stake of approximately 33%, with a valuation ranging between $57 billion and $65 billion. Ambani wanted to turn Jio Platforms into a centerpiece of his technology ambitions. Global names like Meta Platforms Alphabet, and KKR all invested in the company. General Atlantic, Silver Lake, and Abu Dhabi Investment Authority are also investors. Meta holds a 9.9% stake, while Google owns a 7.7% stake. The?IPO Journey Investors have lost interest in new listings after the conflict broke out in West Asia. The filing was originally scheduled for March. The IPO was originally expected to be a simple offer-for sale where 'foreign investors' would sell some of their holdings. However, it is now planned as a fundraiser, aiming 'to issue shares worth 2,5% of the size of the company. The IPO of the company has been delayed for a long time. Ambani had said that Jio would be "moving towards" an IPO within five years in 2019. However, the plans were later delayed to 2025. The company has appointed 17 banks to manage their offering.
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Diplomats say that India and Peru are likely to have talks in June on a free trade agreement.
A senior Peruvian diplomat said that India and Peru would likely 'hold the next round' of talks on a proposed free-trade pact in the coming month. He added that the deal could be signed before the end of this year. Javier Paulinich said that the Peruvian ambassador to India will resume negotiations in principle on June 1. Paulinich stated that Peru, as the third largest copper producer in the world, is also negotiating with India a chapter about critical minerals. India's Ministry of Commerce and Industry has not responded to an email request for comment. Paulinich stated that India's Hindalco Industries also wanted to purchase copper from Peru. He said, "I believe they are trying to bargain." Hindalco did ?not immediately respond ?to a email seeking comments. Peru will produce about 2.7 millions metric tons copper by 2024, and the sector is expected to attract $4.96 billion of foreign investment. India, the fastest-growing major economic power in the world, has "urged" its mining companies, to invest abroad to secure copper supply chain and manage any disruptions. Official estimates suggest that India, which is the world's second largest?importer?of refined copper by 2047, will have to import 91%-97% of its copper concentrat requirements?from abroad. India's copper exports increased 4% in the fiscal year ending March 2025 to 1.2 millions metric tons. The government said that demand is expected to rise to between?3 and 3.3 million tonnes by 2030, and between 8.9 and 9.8 million tones by 2047. Reporting by Neha Anantharaman; Editing Muralikumar Aantharaman
Dollar strengthens as US-Iran negotiations reach a deadlock
The dollar strengthened as investors fretted about the deadlock in the talks between Iran and the United States, leaving the Strait of Hormuz, a vital waterway, virtually closed. This prompted oil prices to rise.
Donald Trump rejected Iran's response on Sunday to the U.S. proposal of?peace?talks for ending the war. He said Tehran's requests were "totally inacceptable".
Brent crude futures - which are about 45% higher now than before U.S. and Israel started strikes against Iran on February 28 - jumped up to 4.6% over night and ended the day at $103 per barrel, a 2% increase.
The MSCI All-World Index was relatively flat for the day. In Europe, STOXX 600, and U.S. Stock Futures were also stable.
In the last two week, the correlation between oil prices and stock markets has become 'positive,' meaning that they are more likely to move together than in opposite directions. This was the dominant dynamic during most of the war.
Investors can look past energy prices at the moment, due to the strong enthusiasm for tech and macro data. This includes last week's U.S. Solid Payrolls Report, which showed that the global economic situation is stable.
"Markets are good at learning how to deal with situations that we once thought impossible. This is where crude oil is at the moment. If it rises another 50% then we will have to 'navigate another test,' said Chris?Beauchamp, chief market strategist at IG.
If you look at the earnings figures, they are really good. We would be firing on all cylinders if it weren't for the Iran issue. "But people are happy to believe there must be some sort of deal with Iran no matter how ugly," said he.
Iranian media reported that an Iranian plan sent to Washington stressed the need to end the war on all sides and lift sanctions against Tehran. It also called for reparations and recognition of Iran's control over the Strait.
Bruce Kasman said that the conflict in the Middle East has now entered its 11th weeks. "Energy costs have risen, but they remain at levels which are more of a headwind than an expansion-ending obstacle."
Our commodities team expects operational stress to increase in June.
Since the start of the war in late February, Iran has effectively closed the Strait. This essentially shuts down a corridor which normally handles a fifth or more of oil and gas shipments around the world.
The dollar gained modestly 0.2% on the Japanese yen. Meanwhile, the euro dropped 0.1% to $1.1777 and sterling fell by 0.16% to $0.3613. Pressure is mounting on British Prime Minister Keir starmer after the Labour Party suffered heavy losses in the local elections last week.
Overnight, optimism over AI drove Chinese stocks to new highs. South Korea's KOSPI index, which is heavily dominated by chipmakers, rose 4.3%.
On Monday, data showed that?China’s producer prices rose to a near four-year high. Meanwhile, consumer inflation also accelerated due to the increased global energy costs.
Trump will visit China on Wednesday and meet Chinese President Xi Jinping for their first face to face talks in over six months.
Gold fell 1.3% on commodity markets to $4,654 per ounce, despite the fact that it was not widely regarded as a safe-haven or a hedge against inflation. (Editing by Shri Navaratnam Stephen Coates, and Gareth Jones).
(source: Reuters)