Gold Prices and silver rally after weak US jobs data, RBI introduces strict NBFC lending rules, Iran-US tensions keep crude oil volatile, and major companies like SBI, Titan, Suzlon and L&T announce key developments.

Gold Shines, RBI Tightens Lending Rules, and Global Risks Return to Centre Stage

Global financial markets witnessed heightened volatility as disappointing US employment data, fresh RBI regulations for Non-Banking Financial Companies (NBFCs), and escalating geopolitical tensions in the Middle East influenced investor sentiment.

While precious metals rallied sharply on expectations of a softer US monetary policy, Indian financial stocks faced pressure after the Reserve Bank of India announced significant changes to lending practices. At the same time, strong corporate earnings from several leading Indian companies continued to support broader market confidence.

Gold Prices and Silver Rally After Weak US Jobs Data

Gold prices jumped nearly 2%, while silver surged close to 4% after the latest US employment report surprised markets.

Instead of the expected addition of around 80,000 jobs, the US economy reportedly lost approximately 23,000 jobs, raising concerns about slowing economic growth.

The weaker labour market has strengthened expectations that the US Federal Reserve may avoid further aggressive interest rate hikes. Lower interest rate expectations generally increase the attractiveness of non-yielding assets such as gold.

Despite recent geopolitical uncertainty and hawkish comments from Federal Reserve officials, gold has remained resilient, reinforcing its position as a preferred safe-haven asset.

RBI’s New Rules Deliver a Major Blow to NBFCs

One of the biggest domestic developments came from the Reserve Bank of India, which introduced stricter regulations affecting flexi-loan products offered by Non-Banking Financial Companies (NBFCs).

Under the revised framework:

• Revolving credit facilities linked to flexi-loans will no longer be permitted for NBFCs without credit card licences.
• Borrowers must complete repayment of the existing loan before becoming eligible for a fresh loan.
• The continuous drawdown-and-repayment model will no longer function in its previous form.

Market participants believe these changes could significantly affect lenders with high exposure to flexi-loan products.

Among them, Bajaj Finance is expected to face the biggest impact, as nearly 25% of its Assets Under Management (AUM) is estimated to come from flexi-loan products.

RBI Strengthens Borrower Protection

The RBI has also introduced stricter recovery guidelines to improve customer protection.

Key provisions include:

• Recovery agents can contact borrowers only between 8:00 AM and 7:00 PM.
• Harassment, abusive language, intimidation and privacy violations are strictly prohibited.
• Lenders will face greater accountability during the recovery process.

These measures aim to balance financial discipline with responsible lending practices.

Government Clarifies UPI Charges

Finance Minister Nirmala Sitharaman clarified that UPI users will continue to enjoy free transactions.

The proposed Merchant Discount Rate (MDR), if implemented, would apply only to larger merchants rather than individual consumers.

According to the clarification, any revenue generated would help banks and fintech companies strengthen payment infrastructure, cybersecurity and digital innovation without burdening ordinary users.

Iran-US Tensions Keep Oil Markets on Edge

Geopolitical risks remain elevated in the Middle East.

Iran is reportedly reviewing a proposal regarding access through the Strait of Hormuz, one of the world’s most critical oil shipping routes.

Reports suggest that US and Israeli-linked vessels could face restrictions or significant transit penalties if negotiations fail.

Since a large share of global crude oil exports passes through the Strait of Hormuz, any disruption could push energy prices higher and increase inflationary pressure worldwide.

Investors are closely monitoring diplomatic developments ahead of the next trading week.

Strong Corporate Earnings Continue

Several Indian companies delivered encouraging quarterly performance.

SBI Reports Stable Performance

State Bank of India reported around 10% year-on-year profit growth while maintaining healthy asset quality.

However, analysts continue monitoring the gap between stronger loan growth and relatively slower deposit growth, which could influence future profitability.

Titan Impresses Investors

Titan delivered one of the strongest earnings reports of the season.

The company posted approximately 63% profit growth, supported by substantial margin expansion from nearly 11% to 13.5%, reflecting operational efficiency and healthy consumer demand.

Suzlon Gets Positive Regulatory Development

Renewable energy company Suzlon received encouraging news after a US court lifted restrictions on reviewing wind project applications.

Although final project approvals remain pending, the decision improves the long-term outlook for the sector.

L&T Wins Major Infrastructure Contract

Larsen & Toubro secured a significant ONGC project valued between ₹5,000 crore and ₹10,000 crore, strengthening its already impressive infrastructure order book.

India Successfully Tests Agni-4 Missile

India achieved another strategic defence milestone by successfully conducting the test launch of the Agni-4 ballistic missile from Odisha.

With an operational range of approximately 4,000 kilometres, the successful test reinforces India’s indigenous defence capabilities and strategic preparedness.

Long-Term Investors Continue to Build Positions

Another encouraging indicator came from the National Stock Exchange.

The Delivery-to-Traded Ratio reportedly climbed to a record 30.2%, suggesting that investors are increasingly taking delivery of shares instead of engaging solely in intraday trading.

This trend generally reflects stronger long-term investment confidence.

Market Outlook-Gold Prices

Markets enter the new week balancing several powerful themes:

• Gold Prices and silver remain supported by weaker US economic data.
• RBI’s regulatory changes may create short-term pressure for NBFC stocks.
• Iran-US developments will remain crucial for crude oil prices.
• Strong corporate earnings continue to support Indian equities.
• Long-term investor participation remains healthy despite global uncertainty.

If geopolitical tensions ease and global markets remain stable, Indian equities could continue attracting investor interest. However, crude oil movements and further central bank commentary will remain the key drivers to watch.

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