Top 10 Financial News Updates in India February 18, 2025
Top 10 Financial News Updates in India – February 18, 2025
The financial landscape in India is evolving rapidly, with key developments impacting the stock market, taxation policies, banking sector, and foreign investments. In this article, we will explore the top 10 financial news updates of the day, helping you stay informed about the latest trends in the Indian economy.
1. Indian Banks Face Rising Costs in Infrastructure Bond Funding
Indian banks are experiencing increased expenses in raising funds through infrastructure bonds, with investors demanding higher returns due to a surge in debt supply.
- Banks have raised a record ₹892 billion this fiscal year.
- Due to weak demand from long-term investors, bond spreads have widened significantly.
- State-run banks like Punjab National Bank and Bank of Maharashtra are now offering higher yields.
With state governments planning to borrow ₹2.25 trillion, the bond market may continue facing pressure in the coming months.
2. Indian Stock Market Enters Bearish Trend
The BSE Sensex has declined by 7.5% since mid-December, signaling bearish trends in the Indian stock market.
- Small-cap and mid-cap stocks have plunged 21% and 19%, respectively.
- Foreign investors are withdrawing funds and shifting towards China.
- Domestic retail investors, who drove the market rally, are facing their first major downturn.
Despite the decline, IndiGo Airlines is expanding international routes, capitalizing on growing outbound tourism trends.
3. Maruti Suzuki’s Market Performance Amid Volatility
Despite market fluctuations, Maruti Suzuki India Ltd. (MSIL) saw a 0.22% increase in stock price, closing at ₹12,786.30.
- MSIL is currently 6.5% below its 52-week high of ₹13,675.
- The stock performed better than Ashok Leyland and Eicher Motors, which declined by 0.59% and 0.49%, respectively.
4. Bajaj Finance Stock Rises Amid Market Weakness
Bajaj Finance Ltd. recorded a 0.42% increase, closing at ₹8,461.20, outperforming the broader market.
- The stock remains 2.24% below its 52-week high of ₹8,655.20.
- Competitor Mahindra & Mahindra Financial Services declined by 1.46%.
The rising demand for retail and personal loans is keeping Bajaj Finance in focus among investors.
5. Indian Government Plans ₹7.5 Trillion Market Borrowing
To finance its economic development, the Indian government will borrow ₹7.5 trillion in the first half of FY 2024-25.
- This is 53% of the total ₹14.13 trillion gross borrowing planned for the year.
- The move aims to boost private investment by ensuring liquidity in the financial system.
- The government is prioritizing infrastructure spending to fuel economic growth.
6. Surge in Foreign Portfolio Investment (FPI) in Debt Market
Foreign investors are pouring money into India’s debt market, with over ₹18,500 crore invested in February 2025.
- January 2025 saw ₹19,836 crore in FPI inflows, the highest in 6 years.
- In contrast, foreign investors withdrew ₹424 crore from equities.
- The anticipated inclusion of Indian government bonds in JP Morgan’s Emerging Market Index is fueling this trend.
This could result in an inflow of USD 20-40 billion in the next 18-24 months, strengthening the rupee.
7. Key Highlights of Union Budget 2025-26
The Indian government announced a pro-growth budget, focusing on tax relief and fiscal consolidation.
- Income tax rebate up to ₹12.75 lakh.
- Debt-to-GDP ratio at 56.1%.
- Fiscal deficit target at 4.4% of GDP.
This budget aims to reduce government borrowing while ensuring continued infrastructure spending.
8. Jio Financial Services Faces Stock Price Decline
Shares of Jio Financial Services dropped 1.12%, closing at ₹238.65 on February 3, 2025.
- The stock is currently 15% below its 52-week high.
- Investors are cautious amid regulatory uncertainties in the digital payments sector.
9. SEBI Cracks Down on High-Risk Trading
The Securities and Exchange Board of India (SEBI) has introduced new regulations to curb speculative trading in derivatives:
- Minimum contract size for derivatives trading increased.
- Weekly options contracts restricted.
- Retail investors' leverage reduced to lower financial risks.
These measures have led to a 70% drop in daily index options trading, impacting brokerage revenues.
10. RBI Takes Over New India Co-operative Bank
The Reserve Bank of India (RBI) has superseded the board of New India Co-operative Bank due to fund mismanagement.
- Depositors cannot withdraw funds until further notice.
- Shreekant, a former SBI executive, has been appointed as administrator.
- Deposits worth ₹24.36 billion are now at risk.
The RBI’s intervention aims to restore financial stability and protect depositors.
Final Thoughts
These top financial updates from India highlight crucial developments in the economy, stock market, taxation, and banking. With growing foreign investments and evolving regulations, staying updated is essential for investors and businesses.
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