India’s FX Reserves Climb Toward Record on Foreign Inflows

India’s FX Reserves Climb Toward Record on Foreign Inflows Good morning... I’m Savio Shetty in Mumbai, with your pre-market briefing to start a new week. Global markets are offering mixed cues for Indian equities. While Asian stocks have advanced, oil prices, too, have climbed as Iran rejected talks with the US and a deal to reopen the vital Strait of Hormuz remained elusive. Against that uncertain backdrop, India’s foreign exchange reserves are rebuilding toward record levels, bolstering the RBI’s buffer against external shocks and currency volatility. As for local stocks, the benchmark Nifty 50 capped a second straight week of gains on Friday, and the derivatives market is pointing to further optimism as we write below. Traders will be watching how smoothly the new auction mechanism operates in the coming days after the volatility it fueled last week. One pocket that could remain under pressure is shadow lenders, after the Reserve Bank of India tightened rules for the sector. In today’s newsletter, we cover: