Weekly Recap & Detailed Insights: July 14–20, 2025

Last Updated: July 20, 2025  |  Source: cmaknowledge.in

1. Introduction

This week encompassed a series of pivotal developments across India’s financial markets, regulatory landscape, and macroeconomic environment. From RBI’s policy signals to SEBI’s investor protection measures, and from GST compliance clarifications to Income Tax circulars, stakeholders were inundated with information. This article unpacks each facet in detail, providing a deep dive for professionals, investors, and students alike.

2. Equity Market Deep Dive

2.1 Market Performance & Key Movers

The benchmark indices saw mixed movements, reflecting global headwinds and domestic earnings. The S&P BSE Sensex opened at 81,200 on July 14, rallied mid-week to touch 82,150, but closed at 81,000 on July 18—down by 0.25% from Monday’s levels. The NSE Nifty50 mirrored this trend, ending at 24,650, a 0.3% decline week-on-week.

Among sectors, IT underperformed due to tepid US macro data, while banking stocks surged on healthy Q1 pre-announcements. Notably, HDFC Bank (+2.1%) and ICICI Bank (+1.8%) led gains. Conversely, Tata Consultancy Services (-2.3%) and Infosys (-1.9%) weighed down IT indices.

2.2 Volatility & Derivative Activity

India VIX spiked to 17.5 mid-week before retreating to 16.0 on July 18, signaling cautious sentiment. Options data showed the highest open interest at 24,500 strike for Nifty calls and 24,000 strike for puts, suggesting a trading range of 24,000–25,000. FII participation remained net-buy at ₹3,250 crore, while DIIs sold ₹2,100 crore.

2.3 Foreign Flows & Currency Movements

Net FII inflows for the week amounted to ₹3,250 crore, primarily into equity. On the currency front, INR depreciated slightly, ending at ₹83.95/USD, pressured by a stronger US dollar after Fed minutes. Brent crude averaged $83.20/bbl, impacting inflation expectations.

3. Macro-Economic Indicators & Outlook

3.1 Retail and Wholesale Inflation Trends

The Consumer Price Index (CPI) for June 2025 was released at 4.82% YoY, marginally above RBI’s comfort band, driven by food inflation (vegetable and cereal price spikes). Meanwhile, Wholesale Price Index (WPI) eased to 2.65% YoY, aided by base effects and stable manufacturing costs.

3.2 Industrial Production & PMI Data

The Index of Industrial Production (IIP) grew by 6.1% YoY in May, led by capital goods (+8.5%) and intermediate goods (+7.2%). The S&P Global India Manufacturing PMI for June stood at 55.2, indicating robust expansion, though input cost pressures remained.

3.3 Trade Balance & Forex Reserves

In June, exports climbed 9% YoY to $38.2 billion, driven by engineering goods and pharmaceuticals; imports rose 11% to $59.7 billion on higher crude oil prices. Consequently, the trade deficit widened to $21.5 billion. Forex reserves dipped by $3 billion to $657.8 billion, primarily on valuation losses.

4. RBI & Monetary Policy Developments

4.1 Monetary Policy Committee Highlights

At the June MPC meeting, RBI held the replica rate at 6.50% by a 5–1 vote, citing elevated core inflation (5.9%) but moderate growth prospects. The following week, minutes revealed concerns over global financial market volatility and upcoming US policy decisions.

4.2 Digital Currency & Payment Innovations

RBI expanded its retail CBDC (e₹) pilot to five new cities, adding offline wallet functions and cross-border remittance trials with Bhutan. UPI Lite+ was rolled out to Tier-3 and Tier-4 towns, targeting ₹10 lakh transactions per month per user.

4.3 NBFC & Banking Sector Regulations

The central bank issued draft guidelines on NBFC risk management, mandating stress testing on asset-liability mismatches and minimum 180-day maturity buckets for securitized assets. Banks were instructed to complete tokenization of card data by September 2025.

5. SEBI & Capital Market Reforms

5.1 ESG & Sustainability Reporting

From April FY26, top 200 listed entities must adopt Business Responsibility and Sustainability Report (BRSR) Core, disclosing environmental and social metrics. SEBI will enforce penalties for non-disclosure under LODR Regulations.

5.2 Investor Protection & Disclosures

SEBI launched a graded penalty framework for IPO table violations, streamlining redressal and reducing litigation timelines. Mutual funds must publish monthly stress-test results for debt schemes starting Q2 FY26.

5.3 SME & Startup Financing

New norms for SME IPOs include minimum public float of 25% and graded lock-in for anchor investors. The regulator also eased reporting for SEBI-registered VCFs raising up to ₹250 crore.

6. GST Council & Indirect Tax Updates

6.1 E-Way Bill 2.0 Implementation

Panel approved mandatory E-Way Bill 2.0 with AI-powered QR code validation and vendor identification across states. Discrepancy alerts will auto-generate where GSTIN mismatches arise.

6.2 GST Returns Simplification

GSTR-3BQ simplified return pilot extended to Maharashtra and Tamil Nadu. Composition dealers with turnover under ₹2 crore exempted from annual GSTR-9 for FY25.

6.3 Refund & ITC Clarifications

CBIC issued circular clarifying refund eligibility for inverted duty structures in the textile sector. ITC blocked for canteen services beyond ₹75/day per employee.

7. Income Tax & Direct Tax Measures

7.1 ITR Filing & Data Reconciliation

Taxpayers must use new AIS utility for 26AS mismatch resolutions before filing. Over 4.5 crore returns submitted by July 19, with average processing time of 8 days under the faceless assessment scheme.

7.2 TDS & Compliance Circulars

CBDT issued Circular on TDS Section 194R clarifying exclusions for employee medical benefits up to ₹30,000. New Form 26QB auto-deduction feature added for property transactions.

7.3 Appeal & Dispute Resolution

Under the faceless appeal framework, 72,000 appeals resolved in FY25 Q1, reducing pendency by 18%. A new appellate tribunal e-court pilot is under development.

8. MCA & Corporate Law Updates

8.1 Extension for AGMs & Filings

MCA granted a 60-day extension for AGMs for listed companies, with a caveat of board resolution explaining delays. XBRL tagging of cost audit reports mandated for entities above ₹10 crore turnover.

8.2 Ease of Doing Business Initiatives

Integration of MCA21 with DPIIT’s startup portal allows automatic recognition and ESG score tracking. LLP e-Form 11 was simplified, reducing attachment requirements.

9. ICMAI & Professional Education

9.1 CMA Exam & Curriculum

June 2025 CMA Inter and Final results to be declared by July 25. New curriculum draft includes modules on sustainability accounting, cost management in digital firms, and AI-driven budgeting.

9.2 Internship & Skill Development

MoU signed between ICMAI and NITI Aayog for skill-building programs in public sector undertakings. CMA internship placements have increased by 22% YoY.

10. Expert Insights & Practitioner Tips

• Investors: Hedge against inflation by diversifying into real assets like REITs and Infrastructure Investment Trusts.
• Businesses: Leverage the updated GSTR-3BQ pilot to streamline quarterly compliance and reduce return filing errors.
• Tax Professionals: Encourage clients to reconcile AIS early and pre-validate bank accounts to avoid refund delays.
• Students: Focus on sustainability reporting and digital finance modules for CMA/CA exams.

11. Key Dates & Upcoming Events

12. Conclusion

This detailed weekly recap serves as your one-stop resource for staying ahead in India’s dynamic financial and regulatory sphere. Bookmark this page and subscribe to our newsletter for crisp, actionable insights every week.