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Rupee falling towards 75 a dollar, markets crash further while RBI keeps interest rate unchanged

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Rupee falling towards 75 a dollar, markets crash further while RBI keeps interest rate unchanged

The falling rupee touched a new low, breaching the 74-mark against US dollar on Friday, the Sensex plunged by 484.11 points or 1.38 per cent while the Reserve Bank of India (RBI) kept the repo rate (key lending rate) unchanged at 6.5 per cent.

The hit came as global oil prices continued to rise. Investors remained concerned over sustained foreign capital outflows and fears of widening current account deficit in the wake of soaring crude oil prices, said media reports.

At the Interbank Foreign Exchange (Forex) market, the local currency opened higher at 73.56 a dollar against its previous record low closing of 73.58. But, it failed to sustain the initial strength and fell back to breach the 74-mark, said reports.

The 30-share Sensex traded at 34,685.05, down 484.11 points or 1.38 per cent and the Nifty50 was at 10,410.80, with a loss of 188.45 points or 1.78 per cent on Friday afternoon. This came on the back of Thursday’s fall of 584.53 points, or 1.66 per cent, to 34,584.63 in late afternoon trade.

Oil-marketing companies led the fall in the Nifty pack after they were asked to absorb Re 1 per litre in petrol and diesel price cut out of a total of Rs. 2.5 a litre announced by the government on Thursday. Hindustan Petroleum, Bharat Petroleum and Indian Oil Corporation plunged between 14.59 and 23.61 per cent on the Nifty50 index.

The RBI kept the repo rate (key lending rate) unchanged at 6.5 per cent. Meanwhile, rupee breached the 74-mark against US dollar for the first time, hitting a new low of 74.15 against the dollar soon after the RBI announced its monetary policy.

RBI Governor Urjit Patel said that the rupee fall is moderate in comparison to emerging markets peers.

Experts had largely expected the central bank to hike the repo rate by 25 basis points or 0.25 per cent. Five of the six panel members voted to leave the rate unchanged. The reverse repo rate or the rate at which RBI borrows from commercial banks also remained unchanged at 6.25 per cent.

Anticipation of a rate hike had increased in the past month as oil prices climbed, the rupee’s slide accelerated and concerns on liquidity emerged. The RBI had last raised interest rates in two successive policy reviews in August and June this year.

The RBI retained GDP growth estimate at 7.4 per cent for fiscal year ending in March 2019.

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Nitish Kumar’s son Nishant among 32 inducted in Bihar cabinet expansion

Nishant Kumar entered the Bihar cabinet for the first time as 32 ministers from NDA allies took oath in a major expansion of the state government.

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Bihar government cabinet

A major cabinet expansion took place in Bihar on Thursday, with 32 leaders from the ruling NDA alliance inducted into the state government. Among the prominent names was Nishant Kumar, son of former Bihar chief minister Nitish Kumar, who entered the cabinet for the first time.

The expansion included representatives from all major NDA allies in the state. According to reports, the BJP secured 15 ministerial berths, while JD(U) got 13 positions. Two ministers were inducted from Lok Janshakti Party (Ram Vilas), while Hindustani Awam Morcha and Rashtriya Lok Morcha received one berth each.

The oath-taking ceremony was held in Patna in the presence of senior NDA leaders, including Prime Minister Narendra Modi, Union Home Minister Amit Shah and Defence Minister Rajnath Singh.

Nishant Kumar’s induction comes weeks after he formally entered active politics. His entry into the Bihar cabinet is being viewed as a significant development for JD(U), which had long projected an anti-dynasty image under Nitish Kumar’s leadership.

The cabinet reshuffle follows Nitish Kumar’s move to the Rajya Sabha earlier this year and the formation of the government led by Chief Minister Samrat Choudhary.

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PM Modi marks Operation Sindoor anniversary, calls it India’s firm stand against terrorism

PM Modi said Operation Sindoor showcased India’s firm response against terrorism while paying tribute to the armed forces on the operation’s first anniversary.

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PM Modi

Prime Minister Narendra Modi on Thursday said Operation Sindoor demonstrated India’s firm response against terrorism and highlighted the country’s commitment to national security.

Marking one year of the operation, the Prime Minister praised the courage, precision and professionalism of the Indian armed forces. He said the military action was carried out in response to the Pahalgam terror attack that had claimed the lives of 26 civilians in 2025.

Operation Sindoor was launched on May 7, 2025, as a calibrated tri-services operation targeting terror infrastructure linked to cross-border terrorism. Reports said the operation showcased coordinated action by the armed forces and was seen as a major counter-terror response by India.

On the anniversary of the operation, PM Modi also changed the display pictures across his social media platforms, including X, Facebook, Instagram and WhatsApp. The image carried the text “Operation Sindoor” along with the Indian tricolour design.

The Indian Air Force also shared visuals and messages recalling the operation and highlighting India’s military response. A video released by the force described the operation as a strong message against terrorism and referred to the precision strikes carried out during the mission.

Operation Sindoor was launched following the Pahalgam terror attack, after which India carried out strikes on terror camps in Pakistan and Pakistan-occupied Kashmir, according to official statements and reports published at the time.

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Vijay meets Tamil Nadu Governor again as TVK pushes to prove majority

TVK chief Vijay held another meeting with Tamil Nadu Governor Rajendra Vishwanath Arlekar as the party intensified efforts to secure majority support after emerging as the single-largest party in the Assembly elections.

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Actor vijay

Actor-turned-politician Vijay met Tamil Nadu Governor Rajendra Vishwanath Arlekar again on Thursday as his party, Tamilaga Vettri Kazhagam (TVK), continued efforts to prove it has enough support to form the next government in the state.

TVK emerged as the single-largest party in the 234-member Tamil Nadu Assembly after winning 108 seats, but it remains short of the majority mark of 118.

The Congress has extended support to TVK, adding five MLAs to Vijay’s side. However, the alliance still needs additional backing from other parties or independents to comfortably cross the halfway mark.

According to reports, the Governor has not yet been fully convinced that TVK currently has the required numbers to form a stable government. This has delayed clarity over the swearing-in ceremony and the formal invitation to form the government.

Political activity intensified after reports emerged that some AIADMK legislators were moved to a resort in Puducherry amid speculation over possible support to TVK. AIADMK leaders, however, publicly denied any internal crisis.

TVK sources have expressed confidence that the party will be able to demonstrate majority support during discussions with the Governor.

The Tamil Nadu election results marked a major political shift in the state, with TVK breaking the long-standing dominance of the DMK and AIADMK in its first Assembly election contest.

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