More Rupee Depreciation, 8th Pay Commission, US Oil Sanctions: The Week That Was

The Indian rupee crossing the Rs 86-mark against the greenback amid US sanctions on Russia's oil producers, key inflation data from India and the US, and the formation of the 8th pay commission were among major events that took place in the third week of 2025.

Along with this, the quarterly result announcements from index heavyweights moved the markets, while seven companies got listed on the exchanges.

NDTV Profit, in its weekly news wrap every Friday, brings you the major events shaping businesses, industries and global markets. We also bring you noteworthy stories that are our editors' picks.

The Indian rupee continued to depreciate this week, with it staying above the 86-mark against the US dollar, throughout the week. The fall was led by Indian banks persistently purchasing the greenback on fears that the Indian unit will decline further. Last month, NDTV Profit had reported that a few analysts are expecting the rupee to fall to 87.00 a dollar this year.

On Tuesday, NDTV Profit, citing sources, reported that the Reserve Bank of India is open to a flexible movement in the Indian rupee and is not looking to control any levels of the domestic currency. The central bank has adequate reserves to control any excessive volatility, persons privy to the development said.

The rise in the rupee can also be attributed to rising crude oil prices, which crossed the $81 mark as the US imposed sanctions on Russian oil producers.

The recently imposed sanctions on Russia's oil refineries drove brent crude futures to a four-month high above the $81-mark. On Jan. 10, the US government issued new sanctions intended to reduce revenues from the Russian oil sector amid its Ukraine invasion.

The IEA oil market report for January said that oil prices also got a boost as traders considered multiple supply risks. "Near-term, weather-related shut-ins in North America could have a significant impact, with Cushing crude inventories at decade lows," it said.

The Indian government approved the formation of the 8th Pay Commission for the revision of salaries of central government employees and pensions of retirees, Union Minister Ashwini Vaishnaw announced on Thursday.

"Prime Minister Narendra Modi has approved the formation of the 8th Central Pay Commission for the benefit of all central government employees and pensioners," Vaishnaw said, while briefing the press following the meeting of the Union Cabinet.

An NDTV Profit report, citing sources, said that this move is expected to benefit around 50 lakh central government employees, including defence personnel, along with more than 65 lakh pensioners.

Domestic consumer price index-based inflation cooled in December to below consensus expectations. It came in at 5.22%, its four-month low from 5.48% in November, on the back of cooling vegetable prices. The number is still higher than the Reserve Bank of India’s target of 4%.

Meanwhile, US CPI rose 0.2% in December, slightly surpassing November’s 0.3% rise, according to the Bureau of Labor Statistics. This was less than forecast, reinvigorating bets the Fed will slash rates sooner than previously thought.

The week ending Jan. 17 was packed with earnings announcements, with some of the biggest companies having announced their Q3 results. Reliance Industries Ltd. announced its results on Thursday and recorded a 4% sequential climb in its revenue from operations to Rs 2.39 lakh crore for the quarter ended Dec. 31, 2024. The net profit of the oil-to-telecom conglomerate rose 12% sequentially to Rs 21,804 crore during the third quarter, on the back of a strong overall performance.

Axis Bank also announced its Q3 results on Thursday; the higher net interest income helped the bank's net profit to rise 4% year-on-year in the third quarter of the current financial year to Rs 6,304 crore, which is in line with what the consensus estimated.

Nifty IT lost the most among sectoral indices this week, with Infosys Ltd., Tata Consultancy Services Ltd., HCLTechnologies Ltd. and Wipro Ltd. releasing their December quarter financials.

While Standard Glass Lining Technology Ltd. and Quadrant Future Tek Ltd. made their debuts on the mainboard, SME listings in the week gone by included those of Indobell Insulation, Delta Autocorp, BR Goyal Infra, Avax Apparels and Ornaments, and Sat Kartar Shopping.

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