Published 2026-06-03
Summary: The Markets Daily India notes a rebound in IT shares, explores why the RBI may be accumulating gold, and highlights Axis Bank’s bullish outlook on power utilities amid broader Indian market dynamics.
What We Know
- RBI’s gold reserves increased to 879.98 metric tonnes by late June 2025, up from 840.76 metric tonnes a year earlier, with 39.22 metric tonnes added over the past year.
- There is a narrative in 2025 that India is preferring gold as a reserve asset over U.S. Treasuries.
- Markets Daily India reports a strong rebound in IT shares, suggesting a positive momentum in the technology sector.
- Axis Bank has a bullish take on power utilities, indicating a positive outlook for that sector within Indian markets.
- The discussion combines domestic policy signals (RBI asset allocation) with sector-specific sentiments (IT sector rebound and utilities) to outline a cautiously optimistic market view.
What’s Still Unclear
- Whether RBI is actively reducing all U.S. Treasury holdings or making selective adjustments beyond gold purchases is not uniformly detailed.
- Exact year-over-year numbers for IT rebound and the underlying drivers are not specified in the available information.
- Specific dates of key policy moves or market events driving the IT rebound and Axis’ bullish stance are not confirmed in the provided sources.
Context
Contextual background centers on India’s reserve management and its impact on market sentiment: the RBI’s growing gold reserves and the broader debate about reserve diversification, alongside domestic equity movements in IT and utilities sectors. This comes amid a global discourse on reserve asset allocation and Indian market dynamics affecting equities and sector leadership.
Why It Matters
Understanding RBI’s reserve choices can influence perceptions of macro risk and currency stability, while rebounds in IT and utilities sectors affect investor sentiment, capital flows, and the near-term performance of Indian markets.
What to Watch Next
- Follow updates on RBI’s asset allocation strategy and any official commentary on gold versus U.S. Treasuries in 2025–2026.
- Monitor IT sector performance for continued momentum and any policy or regulatory catalysts.
- Look for further developments in Axis Bank’s sector outlook on utilities and any related funding or policy signals affecting utilities.
FAQ
Q: What is the current trend of RBI gold reserves according to the report?
A: The report notes reserves increased to 879.98 metric tonnes by late June 2025, with 39.22 tonnes added over the past year.
Q: What sectors are highlighted for a bullish or rebound view?
A: IT shares are described as rebounding, and Axis Bank is bullish on power utilities.
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Source Transparency
- This article is based on a short preliminary brief and may not reflect the full details available in ongoing reporting.
- Source links are provided in the Sources section where available.
- A limited open-web check was used to clarify key details when possible; unclear items remain clearly marked.
Original brief: In today’s Markets Daily India, we look at the strong rebound in IT shares, reasons the RBI may be selling gold, and Axis’ bullish take on power utilities….
Sources
- 880 tonnes and counting: Why RBI keeps buying gold despite India having …
- Explained: Why the Reserve Bank of India is preferring gold over U.S …
- Gold reserves vs dollar assets: Why is RBI buying gold & reducing …
- India bets on gold: RBI cutbacks in US treasury bills signal …
- Gold's record 2025 rally boosts RBI reserves but weakens demand …