Core Viewpoint - The Reserve Bank of India (RBI) expects deposit rates to moderate in line with bank lending rates following a cumulative 125 basis points cut in the policy repo rate since February 2025, which has resulted in a decline in the weighted average domestic term deposit rate (WADTDR) [5][4]. Group 1: Deposit Rates and Monetary Policy - RBI Governor Sanjay Malhotra indicated that deposit rates should reflect real interest rates, which remain high despite nominal rates appearing low due to low inflation [5][4]. - The WADTDR on fresh rupee term deposits decreased to 5.57% in October 2025 from 5.61% in September 2025, marking a 105 basis point decline [5][4]. - The decline in deposit rates has been broad-based, with the WADTDR on fresh deposits down by 105 basis points and outstanding deposits softening by 32 basis points over the same period [4][5]. Group 2: Bankers' Perspectives - Bankers have noted that deposit rates have already moderated, suggesting limited scope for further reductions [5]. - Ashwini Kumar Tewari, managing director at State Bank of India, emphasized the importance of considering depositor interests while indicating that the asset-liability committee will decide on any further rate changes [5].

Company Insights - Oracle expects its Cloud Infrastructure business to exceed $500 billion in booked revenue, with shares trading at nearly 50 times estimated 12-month forward earnings, the highest since the dotcom crash [1] - Oracle's share price surged by 43%, raising discussions about the AI bubble and positioning the company close to a $1 trillion market cap [2] Market Performance - The S&P 500 and Nasdaq reached new highs but later gave back gains, while the Dow and Russell 2000 fell [3] - Oracle's stock jumped 43%, and Klarnan saw a 30% increase in its NYSE debut, while Apple shares declined by 3.2% [3] Economic Indicators - U.S. producer price inflation figures were surprisingly soft, leading to speculation about a potential half-percentage point cut in U.S. interest rates, which contributed to Wall Street's new highs and lower bond yields [5] - The dollar index ended flat, with the Brazilian real climbing significantly while the Polish zloty faced declines [3]