ECONOMIC INTELLIGENCE BRIEF
25 October 2026 | Economic, Financial, Banking and Global Developments
1. Foreign Investors Withdraw ₹48,056 Crore from Indian Equities in October
A report published by Financial Express on 25 October said cumulative foreign portfolio investor outflows from Indian equities had reached ₹48,056 crore for October, taking net withdrawals for 2026 to ₹3.08 lakh crore. Selling eased during the week ending 23 October, when foreign investors were net buyers on two trading days. Elevated crude prices, geopolitical tensions and earnings concerns remain key factors.
Why it matters: Sustained outflows can weigh on equity valuations and the rupee. Domestic institutional investments and systematic investment plans have helped absorb some of the selling pressure.
2. SEBI Outlines Priorities for Deeper and More Secure Securities Markets
On 24 October, SEBI Chairman Tuhin Kanta Pandey outlined proposals and priorities including graded compliance requirements for brokers based on their size, client exposure and technology dependence. SEBI is also reviewing short-selling and securities-lending rules, considering safeguards against misuse of trading terminals, and developing guidance on responsible AI use.
Why it matters: Proportionate compliance can improve regulatory effectiveness, while stronger cybersecurity and market infrastructure safeguards can support investor confidence. These are proposed or ongoing initiatives, not all finalised regulations.
3. India Reimposes Anti-Dumping Duties on Specified Chinese Titanium Dioxide Imports
A notification issued on 24 October reinstated duties of US$460 to US$681 per tonne on specified titanium dioxide imports from China for five years, unless revoked or amended earlier. The measure followed a fresh investigation by the Directorate General of Trade Remedies, which found that dumped imports had caused material injury to domestic producers. Titanium dioxide is widely used in paints, coatings and plastics.
Why it matters: The duties may support domestic manufacturers but could increase input costs for downstream industries, depending on alternative sourcing and manufacturers' pricing decisions.
4. RBI's New Data Centre and Cybersecurity Training Institute Are Scheduled for Inauguration
On 25 October, Prime Minister Narendra Modi is scheduled to inaugurate the RBI Data Centre and Cybersecurity Training Institute at Jatni, near Bhubaneswar. The approximately ₹169 crore facility is designed to strengthen the resilience of critical financial infrastructure, including payment and settlement systems. The associated institute will support cybersecurity training and research into emerging technologies.
Why it matters: A resilient backup data centre can strengthen business continuity, while specialised training can improve cybersecurity capabilities across the financial sector. The inauguration is scheduled for this afternoon and should not be treated as completed until confirmed.
5. Gulf Equity Markets Fall as the Yemen Conflict Intensifies
On 25 October, Reuters reported that Saudi Arabia's benchmark stock index fell 2.6% and Egypt's blue-chip index declined 2.5% as investors reacted to escalating fighting involving Yemen's Houthis and Saudi Arabia. The developments raised concerns about a wider regional conflict and potential risks to energy infrastructure and shipping.
Why it matters: Geopolitical escalation can increase oil-price volatility, disrupt trade routes and intensify inflationary pressures for energy-importing economies such as India. The reported index changes were intraday movements.
6. Australia Calls for Stronger International Supply-Chain Cooperation
In an interview published on 25 October, Australian Treasurer Jim Chalmers urged middle-power economies to cooperate on supply-chain resilience and economic security amid geopolitical instability. He highlighted critical minerals and diversified sources of essential supplies as strategic priorities.
Why it matters: Greater supply-chain diversification can reduce exposure to geopolitical disruptions and concentrated sourcing, particularly in energy and critical minerals. The comments represent a policy position rather than a newly announced binding agreement.
Overall Takeaway
Foreign investment outflows and geopolitical tensions remain important risks for Indian markets. SEBI's regulatory priorities highlight the need to balance market development with investor protection and cybersecurity. Anti-dumping duties may support domestic industrial producers, while the RBI's planned data centre inauguration underscores the importance of resilient digital financial infrastructure.
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