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Market Wrap: Fed Rate Cut Buzz, RBI’s Gold Move, and Corporate Earnings Pulse

🏦 FOMC Decision Looms: Rate Cut Expected, Magnitude Uncertain

 

All eyes are on the US Federal Open Market Committee (FOMC), which will announce its policy decision later today. The market widely expects a rate cut, though it remains unclear whether Chair Jerome Powell will go for 25 bps or 50 bps.

 

Following the 25-bps cut in September, the current federal funds rate stands between 4.00% and 4.25%. According to the CME FedWatch tool, markets anticipate two more rate cuts in 2025. However, the ongoing US government shutdown has disrupted the flow of economic data, making it challenging for the Fed to assess inflation and growth accurately. Notably, even the September CPI data was released 14 days late.

 

🏗️ Larsen & Toubro Reports Strong Q2FY26, Record Order Book

 

Engineering giant Larsen & Toubro (L&T) posted a 16% YoY rise in net profit for Q2FY26 at ₹3,926 crore, slightly below market expectations.

 

  1. Revenue: ₹67,984 crore (↑10% YoY)

  2. New Orders: ₹1,15,784 crore (↑45% YoY)

 

The strong order flow was driven largely by Middle East hydrocarbon projects, with the company now sitting on a record order book. L&T continues to benefit from robust infrastructure demand and overseas diversification.

 

📊 SEBI’s Next MF Reform: Cost Rationalization Ahead

 

The Securities and Exchange Board of India (SEBI) is gearing up for another wave of mutual fund reforms, focusing on reducing investor costs.

 

  1. MFs will now be allowed to charge 0.02% on equity trades and 0.01% on F&O trades.

  2. The additional 5 bps linked to exit loads will be eliminated.

  3. Overall, TERs (Total Expense Ratios) could fall 15–20 bps.

 

While this move will benefit unitholders, it could squeeze brokerage income and reduce margins for Asset Management Companies (AMCs).

 

🪙 RBI Repatriates Gold Reserves Back to India

 

In a move to secure foreign reserves, the RBI has increased the share of gold held domestically to 66% of total holdings.

 

  1. In H1FY26, the RBI brought back 64 tons of gold.

  2. Total gold reserves: 880 tons, with 576 tons now stored in India.

  3. In Sept 2022, only 38% was held domestically.

 

The shift comes after global concerns over asset freezes (notably after the US froze Russian reserves), prompting India to repatriate 280 tons of gold over the last four years.

 

📈 FPI Flows Turn Positive: Highest Buying Since June

 

Foreign Portfolio Investors (FPIs) made a strong comeback, net buying ₹10,440 crore worth of Indian equities on 28 October — the highest single-day inflow since June 2025.

 

Key drivers include:

  1. Expected Fed rate cut and weaker dollar, making Asian markets attractive.

  2. Rupee strength, boosting investor confidence in Indian assets.

 

While the data signals optimism, analysts caution against over-interpreting a single-day surge.

 

⚒️ Coal India Profits Fall 32% as Costs Rise

 

Coal India Ltd (CIL) reported a 32% drop in Q2FY26 net profit to ₹4,263 crore, weighed down by lower sales and rising expenses.

 

  1. Revenue: ₹26,909 crore (↓1.3% YoY)

  2. Expenses: ₹26,422 crore (↑7% YoY)

  3. Production: 48.97 MT (↓3.9%)

 

Erratic monsoons disrupted mining activity, but CIL expects to recover production in the upcoming quarters.

 

🍸 Varun Beverages Enters Alcoholic Drinks Market

 

In a bold strategic move, Varun Beverages, the largest bottler for PepsiCo in India, plans to enter the alcoholic beverages (Alco-Bev) segment.

 

The company will launch ready-to-drink (RTD) products across beer, wine, gin, rum, and vodka, tapping into the premiumisation trend among Indian consumers. This marks a major diversification from its current portfolio of soft drinks, bottled water, and juices.

 

🤖 Layoff Wave Hits Global Companies Amid AI Transition

 

Global corporations are aggressively restructuring to adapt to the AI-driven business landscape.
In 2025, around 218 companies have laid off 112,732 employees across sectors.
Major job cuts include:

 

  1. UPS: 48,000

  2. Amazon: 30,000

  3. Intel: 24,000

  4. Nestle: 16,000

  5. Novo Nordisk: 9,000

  6. Accenture: 11,000

 

The layoffs underscore a shift in corporate strategy — from headcount-heavy models to AI-optimized operations.

 

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