India's Economic Progress and Global Stature Highlighted by PM Modi
Prime Minister Narendra Modi, speaking at the NDTV World Summit, underscored India's significant economic transformation, stating that the nation has moved from being among the "fragile five" to one of the world's top five economies. He attributed this success to comprehensive reforms over the past decade, highlighting a growth rate exceeding 7% and inflation maintained below 2%. Modi also noted substantial global investments, including Google's recent pledge of $15 billion in India's artificial intelligence sector, and a 60% increase in trade with G7 nations. Furthermore, he stated that government policies have lifted 25 crore people out of poverty.
Piyush Goyal on India's Strong Trade Position and Future Outlook
Commerce and Industry Minister Piyush Goyal emphasized India's enhanced position in international trade negotiations, asserting that the country now engages from a position of strength. Addressing the annual conference of Assocham, Goyal mentioned India's robust foreign exchange reserves, consistently around $700 billion, as a reflection of strong economic fundamentals. He also cited the International Monetary Fund's (IMF) upward revision of India's GDP growth forecast for 2025 from 6.4% to 6.6%. Looking ahead, Goyal articulated India's ambition to become the world's third-largest economy, aiming for a $30-35 trillion economy by 2047.
Stock Market Dynamics and Corporate Earnings
Indian equity markets witnessed a pre-Diwali rally, with the Sensex closing up 485 points and the Nifty at 25,710 on Friday, marking a third consecutive session of gains. Banking and FMCG stocks were key drivers, pushing indices to new highs, supported by positive foreign fund inflows. However, the Nifty50 and BSE Sensex had opened slightly in the red on Friday after days of strong rallying. Corporate earnings presented a mixed bag: Jio Financial Services reported a 41.5% surge in revenue, and Vikram Solar's profit soared by 1,646% year-on-year. Conversely, Zee Entertainment saw a 63% decline in Q2 net profit. Major IT stocks like Infosys and Wipro also saw some shifts, with Infosys beating expectations but Wipro's revenue slightly below projections.
Rupee Under Pressure, Forex Reserves Dip, and Infrastructure Push
Despite a broadly weakening US Dollar, the Indian Rupee (INR) remained under pressure, hitting a new all-time low in 2025. This is primarily attributed to new US tariffs on Indian exports and FPI outflows. India's foreign exchange reserves saw a slight decrease of $2.18 billion, settling at $697.78 billion as of October 10. In infrastructure development, the Union government is planning a "Golden Quadrilateral 2.0," a new expressway grid aimed at enhancing connectivity, easing congestion, and reducing logistics costs, aligning with the Vision 2047 initiative.
Surge in Gold and Silver Prices Ahead of Festive Season
The festive season has seen a significant surge in the precious metals market. Gold prices have soared past Rs 1.3 lakh for 10 grams of 24K gold, representing a 65.17% year-on-year increase. Silver prices also reached a new high of Rs 1,70,415 per kilogram on MCX, marking a 19.8% gain for October. This upward trend is fueled by strong festive demand, industrial restocking, and expectations of US interest rate cuts.
Bank and Stock Market Holidays
Banks in Assam observed a holiday on October 18, 2025, for Kati Bihu. Indian stock markets (BSE and NSE) were closed on October 18, 2025, as it coincided with a Saturday, and further closures are anticipated for the Diwali festival.