This week, the Indian rupee and government bonds are set to respond to various factors. These include the U.S. Federal Reserve s policy decision and the August 1 tariff deadline. Traders are likely to be cautious. Investors will closely monitor Fed Chair Powell s comments. Data on the U.S. labor market and inflation will also be key.

Indian markets closed negatively for the second straight day, with the BSE Sensex dropping over 700 points and the Nifty50 falling below 24900. Healthcare saw buying interest, while oil & gas, power, utilities, and capital goods experienced selling pressure. Analysts suggest holding Torrent Pharma, considering buying SBI Life on dips, and avoiding eClerx due to potential reversal signals.

Umiya Mobile, a Rajkot-based electronics retailer, is launching its Rs 24.88 crore IPO on Monday, offering 37.7 lakh shares at Rs 66 each. The company intends to use the funds to reduce debt and for general corporate purposes. With significant revenue and profit growth in FY25, Umiya Mobile plans to list on the BSE SME platform on August 4.

ETIG analysis reveals seven BSE 500 companies paid more dividends than their FY25 profits. These firms include Castrol India, Page Industries and Tech Mahindra. Hindustan Zinc, Hindustan Unilever, Aster DM Healthcare and Godrej Consumer Products are also in the list. Aster DM declared a special dividend after its Gulf business separation.

Indian markets closed lower for the fourth consecutive week amid mixed signals. Several companies like IndusInd Bank and Adani Green remained in focus due to Q1 results. IDFC First Bank, Kotak Mahindra Bank, and SBI Cards reported profit declines. Tata Chemicals saw a significant profit increase. Alembic Pharma received US FDA approval.

Tata Trusts is convening a strategic meeting to address Tata Sons listing status as the RBI deadline approaches, potentially considering board additions like Uday Kotak and Bahram Vakil. With Ralf Speth and Ajay Piramal nearing retirement, board-level changes are anticipated.

Stock-index futures increased following a US-EU trade agreement, imposing 15% tariffs on most EU exports, which averted a potential trade war. S&P 500 contracts and European stocks rose, while the euro strengthened. Investors are anticipating a busy week with key data releases, including Federal Reserve and Bank of Japan meetings, and earnings reports from major companies.

Economists are divided on whether the Reserve Bank of India (RBI) should cut interest rates in August. Some point to low inflation, while others advocate caution, citing uncertainty in trade policy and the need to assess future inflation trends. The RBI will consider GDP projections and retail inflation figures when the Monetary Policy Committee meets in August.

Payment banks are urging the RBI to reduce the statutory liquidity ratio (SLR) by at least 10% to invest in higher-yielding instruments and boost margins. They re also seeking permission to disburse loans and accept deposits up to ₹5 lakh. With previous requests unanswered, they ve requested a meeting with the RBI governor to discuss these issues.