India Markets Fall But Bonds See Big Foreign Inflows | Govindraj Ethiraj | The Core Report

India Markets Fall But Bonds See Big Foreign Inflows | Govindraj Ethiraj | The Core Report On Episode 914 of The Core Report, Govindraj Ethiraj talks to Rahul Matthan of Trilegal. We also feature bites from Weekend Edition with Rajani Sinha of CareEdge Ratings, Somashekhar Vemuri of Crisil Ratings and Manas Majumdar of PwC. SHOW NOTES: (00:00) Stories of the Day (00:50) Stocks Fall Again Because Of Monsoon Concerns Even As Rains Pick Up. (03:13) Electricity Consumption Spike Drives Up Industrial Output. (10:43) Most NRI Deposits Into New Schemes Expected From The Gulf Region. (14:02) Residential Sales Dropped 6% In Q2 2026 As Uncertainty Rules. (14:58) Why India Needs A Single Destination For Its Multiple Laws And Rules. Markets, Gold, Industrial Output and the Monsoon: Indian markets fell on Monday after their longest weekly winning streak of 2026, as monsoon concerns weighed on stocks even as foreign inflows into Indian bonds strengthened. The Nifty fell 109 points to 23,946 and the Sensex dropped 372 points to 76,728. Economists told The Core Report that monsoon is now a key risk for the Indian economy, especially rural demand, agriculture income and consumer spending. Crude oil prices have eased and the US-Iran conflict appears less severe than first feared, but investors are watching rainfall closely. The bigger action was in bonds. Foreign holdings of Indian index-eligible debt rose sharply in June, helped by tax changes and more securities eligible for global index inclusion. Goldman Sachs has recommended buying India’s 30-year government bonds as inflation expectations ease and oil prices reduce fiscal risks. Gold prices remained weak. India’s industrial output rose 5.1% in May, helped by electricity demand and steady consumption. Manufacturing grew 5.5%, supported by autos, electronics, durables and FMCG. Crisil Ratings said the West Asia conflict may have a more contained impact on corporate India’s margins. NRI Deposits into New Schemes: Banks are expected to use foreign currency deposits from NRIs to replace expensive deposits before lending to companies. Axis Bank CEO Amitabh Choudhury said these funds could move into infrastructure, data centres, commercial real estate and capex plans. Most NRI deposits are expected from the Gulf region, followed by Southeast Asia. Climate Risks to Data Centres and Europe: AI and data centres are facing a climate risk test. A First Street study found that 79% of global data centre capacity faces risks from floods, extreme winds and wildfires, which can disrupt operations and raise costs. Europe is also facing an intense heatwave, with red warnings across several countries and new temperature highs in Germany. IATA on Air Cargo Demand and ANAROCK on Real Estate: Air cargo demand rose 6% year-on-year in May, supported by trade and manufacturing growth. IATA said airlines are adapting to shifting demand and supply chain needs. In India, residential sales in the top seven cities fell 6% in Q2 2026 as uncertainty weighed on demand, while new launches rose 7%. “A Canonical List Of Legal Compliance”: There is no single source of truth for citizens and enterprises in India when it comes to laws, rules, regulations and compliance obligations. Rahul Matthan argues that India needs one searchable destination for legal compliance. Today, laws, rules, circulars and guidelines are scattered across ministries, departments, gazettes and websites. This makes it difficult for citizens, businesses and lawyers to know what applies to them. India markets fell as Nifty and Sensex slipped on monsoon concerns, but big foreign inflows into Indian bonds point to a larger story on investor confidence, interest rates, crude oil, industrial output and the India economy. Watch Govindraj Ethiraj on The Core Report for sharp business news, markets and policy insight. #IndiaMarkets #NiftySensex #IndianBonds #BusinessNews #StockMarketNews #TheCoreReport #TheCore Join The Core Insider to get access to perks:    / @thecore_in   Listeners! We await your feedback: https://tinyurl.com/TCR-Listener-Survey The Core & The Core Report is ad supported & FREE for all readers & listeners. Write in to [email protected] for sponsorships & brand studio requirements. For more of our coverage check out thecore.in (https://www.thecore.in/) Support the Core Report (https://tinyurl.com/Support-the-Core-...) Join & Interact anonymously on our WhatsApp channel (https://tinyurl.com/The-Core-WhatsApp...) Subscribe to our Newsletter (https://www.thecore.in/newsletters/th...) Follow Us on Social Media for More Updates: Twitter (  / the_core_in  ) Instagram (  / the.core.in  ) Facebook (  / thecore.biz  ) Linkedin (  / thecore-in  ) Youtube (   / @thecore_in  )