FINANCEOUTLOOKINDIAJULY, 20268REPORTAXIS BANK EYES BIGGER BET ON AXIS MAX LIFE AS RBI RULES CHANGEINDIA'S FOREX RESERVES RISE $964 MILLION TO $675.16 BILLION THIS WEEKWHY IS THE INDIAN RUPEE FALLING AGAINST THE US DOLLAR DESPITE GAINSEMERGENT BECOMES INDIA'S FASTEST STARTUP UNICORN AT $1.5 BNRUPEE MOVEMENT AND BUDGET PLANS KEEP MARKETS ALERTAxis Bank is evaluating whether to increase its stake in Axis Max Life Insurance to as much as 30%, taking advantage of the Reserve Bank of India's revised ownership framework that now allows banks to hold higher equity in insurance companies with regulatory approval.The private sector lender said it is internally assessing the strategic and regulatory implications of increasing its shareholding beyond the current 19.99% before approaching the Reserve Bank of India (RBI) for approval. Speaking during the bank's post-earnings analyst call, Executive Director Subrat Mohanty said the lender would evaluate the proposal internally before seeking the regulator's views. India's forex reserves increased $964 million to $675.16 billion in the week ended July 10, driven mainly by a rise in foreign currency assets, according to the Reserve Bank of India's (RBI) weekly data released on July 17. Foreign currency assets (FCA), the biggest component of India's forex reserves, rose by $930 million to $546.51 billion during the week. In rupee terms, FCA increased by Rs 14,078 crore. FCA includes the value of foreign currencies held by the RBI and is affected by changes in the value of major global currencies such as the euro, pound, and yen against the US dollar. India's gold reserves also The rupee fell against the US dollar in early trade on Monday despite India's forex reserves climbing to a fresh high, as soaring crude oil prices, foreign fund outflows, and escalating tensions in West Asia weighed heavily on investor sentiment.The Indian rupee weakened 12 paise to 96.42 against the US dollar during early trading after opening at 96.53, compared to its previous close of 96.30 in the interbank foreign exchange market. Market participants attributed the decline to a sharp rise in global crude oil prices, persistent demand for the US dollar as a safe-haven asset, and continued foreign portfolio outflows from Indian equities. The biggest trigger for the rupee's weakness was the sharp jump in international crude oil prices. India's financial markets begin the week with investors closely tracking the rupee, government borrowing plans, and the upcoming corporate earnings season. Rising global crude oil prices and geopolitical tensions in West Asia remain key concerns, as they continue to put pressure on Emergent, AI software creation platform, has raised $130 million in a Series C round led by Creaegis with participation from Claypond, Sentinel Global, Khosla Ventures, Lightspeed and Y Combinator participating. The fresh round makes the company's valuation stand at $1.5 billion, which is a fivefold increase in the valuation in just four months. The new investment brings Emergent to be one of the fastest startups to become unicorns on the market, adding only a year to its public debut.The funds raised will be allocated to scaling its AI software development platform, building a more standalone AI solution, and supporting its worldwide customer base. Mukund and Madhav Jha founded Emergent, a company that helps founders, entrepreneurs, and small businesses to create production-ready apps for the web and mobile without coding any of them. the Indian currency and inflation outlook.The Indian rupee has weakened significantly against the US dollar in recent sessions, prompting market participants to watch for possible intervention by the Reserve Bank of India (RBI). Currency traders believe the RBI could step in to prevent excessive volatility if the rupee continues to approach record lows. Higher crude oil prices increase India's import bill, making foreign exchange management a critical priority. increased during the week, rising by $24 million to $105.23 billion, while their value in rupee terms went up by Rs 1,235 crore. The country's holdings of Special Drawing Rights (SDRs) with the IMF increased by $3 million to $18.63 billion, up Rs 09 crore in rupee terms.
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