Investors withdrew a massive $43.19 billion from U.S. equity funds, the largest outflow since December 2024, driven by concerns over high market valuations after a significant rally and a Federal Reserve rate cut. Large-cap and technology funds experienced substantial outflows, while bond funds continued to attract inflows for the 22nd consecutive week.

Stephen Miran, the new US Federal Reserve Governor, addressed concerns about his independence. This followed his dissent on rate cut decisions. Miran advocated for steeper rate cuts. He argued for a near-neutral interest rate. He cited no inflation risk and lower housing costs. These views contrast with the Fed s consensus. Other policymakers favor gradual cuts.

Foreign Institutional Investors (FIIs) have aggressively invested Rs 4,500 crore in Indian auto stocks following the GST rationalization announcement, anticipating a consumption-led rally. The GST Council s decision to slash tax rates across auto segments, coupled with seasonal tailwinds, has fueled this surge. While autos, metals, capital goods, and financials saw inflows, consumer services, IT, and real estate experienced outflows.

The Nifty has reached 25,400 this week. Experts predict the rally may continue next week. Rajesh Palviya suggests Nifty could reach 25,750 if it surpasses 25,500. Banking stocks are currently supporting the market. Palviya sees potential in PSU banks, NBFCs, power, and chemical sectors. Suzlon Energy and Bharat Forge are his stock picks.

Grey market premiums (GMPs) suggest that some of these listings could deliver strong gains — with one even eyeing up to 90% upside on debut.

Amid market uncertainty, SBI Mutual Fund s Nidhi Chawla suggests a dynamic asset allocation strategy. The SBI Dynamic Asset Allocation Active FoF shifts between 35% and 100% equity based on valuations, earnings, and sentiment. Currently, a balanced 60:40 equity-to-debt allocation is recommended. The fund favors short-duration, high-grade bonds and selective credits, with flexible duration management.

Japanese bond yields are surging, causing global concern. Political instability in Japan adds to economic uncertainty. Abhishekn Bisen of Kotak Mutual Fund notes the yen carry trade unwinding. US tariffs impact Indian bond yields and the rupee. Despite global uncertainty, India s strong macro fundamentals support bond inflows. Experts suggest investors consider longer-duration bonds.

RBI Governor Sanjay Malhotra urged CCIL to broaden its product offerings, aligning with the goal of rupee internationalization. He emphasized leveraging technology for automation and expanding product reach to corporates and non-resident investors to boost market liquidity. Furthermore, he highlighted the need to improve accessibility to the FX-Retail platform for individuals and MSMEs.

To standardize healthcare delivery and control rising medical inflation, ICMR, NHA, and WHO have developed 157 Standard Treatment Workflows across 28 specialties. This move aims to bring transparency in hospital billing, prevent overcharging, and ensure consistent, evidence-based treatment for all patients, potentially leading to more affordable health insurance premiums.

Adani Group shares surged following Sebi s clearance of the conglomerate and its founder from Hindenburg Research s accusations of stock manipulation and accounting fraud. The regulator found no evidence of fraudulent transactions, boosting investor confidence and adding ₹66,000 crore to the group s market capitalization.