New Delhi, Oct 15: The Indian rupee is likely to remain in an appreciating territory even as global markets remain engulfed in turbulence, while the government and the Reserve Bank of India (RBI) may need to consider further policy steps to shore up resilience, a report said on Thursday.

The report from SBI Research forecasted inflation to peak at around 6.8 per cent in November 2026. It predicted that India’s 10-year yield will likely touch 7.6 per cent which will aid in price discovery in the future as well.

“The USD/INR forward implied yield opened at 4.60 per cent, around 42 bps higher than yesterday’s close,” the report noted.

Higher hedging costs make dollar funding more expensive and could encourage corporates to shift towards INR-denominated borrowing, supporting demand for the rupee, it added.

“The RBI has done a stupendous job and now the government must step up in reducing structural frictions on the taxation front, European Central Bank policy, ODI and AI policy,” the report noted.

The RBI could adopt a calibrated tightening approach through an asymmetric corridor adjustment, raising the MSF rate by 50 bps from 5.75 per cent to 6.25 per cent in the interim.

This could be followed by a 25 bps repo rate hike in December, taking the repo rate to 5.75 per cent and the MSF rate to 6.50 per cent, it forecasted.

Global financial markets are likely to remain volatile amid persistent geopolitical uncertainties, elevated US yields and evolving inflation dynamics.

The RBI has taken salutary steps to stabilise market conditions and can act up to a point, but further measures by the government on the taxation front, particularly concerning G-secs and ECBs clarity on AI policy, could help deepen domestic borrowing avenues and support capital flows.

New Delhi, Oct 15: The Ministry of Defence on Thursday said it has signed contracts worth Rs 4,106 crore for the acquisition of a dedicated communication satellite capability for the Indian Air Force, and Varunastra heavy-weight torpedoes for the Indian Navy.

Both contracts mark a significant step towards advancing the development of domestic defence manufacturing capabilities while promoting self-reliance in critical technologies in line with the government’s ‘Aatmanirbhar Bharat’ and ‘Make-in-India’ vision.

The contract for the GSAT-7C satellite, valued at Rs 2,563 crore, was signed with New Space India Limited, Bengaluru.

According to an official statement, this indigenously designed, developed and manufactured satellite will enhance the secure, resilient and seamless communication capabilities for the assets of the Indian Air Force, thereby strengthening operational effectiveness.

Meanwhile, the contract for Varunastra, worth Rs 1,543 crore, was signed with Bharat Dynamics Limited, Hyderabad.

Varunastra is an indigenous ship-launched anti-submarine torpedo developed by the Naval Science and Technological Laboratory.

“Equipped with advanced manoeuvring capabilities, it is capable of engaging enemy submarines at long ranges, thereby enhancing the anti-submarine warfare capability of the Indian Navy,” said the statement.

Earlier this month, the Ministry of Defence signed a Rs 661.50 crore deal with BrahMos Aerospace Private Limited for the procurement of BrahMos fire control system and launchers for Indian Navy ships under the Buy (Indian-IDDM) category.

With a minimum of 68 per cent indigenous content, the project encourages active participation of various Indian industries, including MSMEs (micro, small and medium enterprises) in the supply chain. The project will generate employment over a period of three years.

It also bolsters India’s maritime security architecture and defence capabilities and marks a critical milestone in the ongoing efforts to indigenise advanced military technology, according to the Defence Ministry statement.

The BrahMos System fitted on board various frontline warships is the Indian Navy’s primary Surface-to-Surface Missile (SSM) system for maritime strike operations. The weapon system is capable of targeting land and sea targets from extended ranges with pinpoint accuracy at supersonic speed.

Mumbai, Oct 15: Domestic equity benchmarks opened higher on Thursday, defying fragile sentiment amid weakness in technology stocks across the US and Asian markets.

Sensex opened at 72,965.80, up 183.91 points or 0.25 per cent, while Nifty started at 22,671.30, up 48.60 points or 0.21 per cent.

In early trade, sectoral performance was mixed. Nifty IT, Nifty FMCG, Nifty Auto and Nifty Private Bank were top gainers and increased up to almost 2 per cent.

On the other hand, Nifty Metal was the top laggard which declined 1 per cent. Similarly, PSU bank, consumer durables, pharmaceuticals and healthcare indices were traded lower.

Market experts said hotter-than-expected US inflation — which spiked to 3.7 per cent in September from 3.4 per cent in August — has increased the possibility of another rate hike by the US Federal Reserve in October.

The concern triggered big selling in US markets, with tech-heavy Nasdaq correcting 1.88 per cent, they added.

“The fear has spread to South Korea and Japan. Nikkei is down above 4 per cent and Kospi down more than 7 per cent. From the Indian market perspective, the correction in AI stocks is a positive,” according to the experts.

FIIs who have been selling Indian stocks and buying AI stocks will halt this trend.

Technically, Nifty formed a bearish-leaning candle, while RSI stood at 41.66, above its average of 32.01, indicating some recovery in momentum, according to analysts.

On Wednesday, FIIs remained net sellers and offloaded equities worth approximately Rs 1,857 crore, while DIIs provided strong support with net purchases of around Rs 2,670 crore.

Additionally, Wall Street ended lower on Wednesday as US inflation fueled rate-hike concerns, weighing on the Nasdaq and AI. Asian markets were also trading in red zone.

In addition, crude oil prices declined nearly 2 per cent as investors weighed Strait of Hormuz supply risks against US moves to ease shipping costs.