NEW DELHI, TUESDAY, OCTOBER 13, 2026 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE VOL LII NO. 194, 26 PAGES, `12 (PATNA & RAIPUR `12, SRINAGAR `15) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E WWW.FINANCIALEXPRESS.COM READ TO LEAD SENSEX: 71,924.68 ▼ 547.65 NIFTY: 22,363.35 ▼ 157.10 NIKKEI 225: 69,030.92 ▼ 11.19 HANG SENG: 24,271.20 ▲ 59.85 `/$: 95.78 ▲ 0.96 `/€: 107.09 ▲ 1.42 BRENT: $106.78 ▲ $2.06 GOLD: `147,681 ▼ `1,228 RUPEEJUMPS96PAISEAGAINSTDOLLARASMEASURESTAKEEFFECT Banks seek RBI relief, more time on strict forex curbs CHRISTINATITUS & AGENCIES Mumbai, October 12 COURSE CORRECTION BANKS AND FOREIGN exchange market participants have approached the Reserve Bank of India (RBI), seeking relaxationofitsstringentforex trading restrictions, an extension of the implementation deadline and clarity on operational issues, even as the central bank’s measures helped the rupee stage a sharp recovery on Monday. The domestic currency surged 96 paise,or nearly 1%, to close at 95.78 against the dollar, marking its secondlargest single-day gain since April 2,as the RBI’s aggressive measures to arrest its slide took effect. The Foreign Exchange Dealers’ Association of India (FEDAI), which represents major domestic and foreign banks, wrote to the RBI on Sunday seeking relaxation of certain provisions, additional time for compliance and clarification on implementation, according to people familiar with the developments. The association held a virtual meeting earlier that day. (Inverted scale) IN THE NEWS MARKETS PAGE 6 FPIs SELLTHE MARKET, CHASE NEW LISTINGS FOREIGN PORTFOLIO INVESTORS (FPIs) may be heading for the exit in India's secondary markets, but they are participating in new listings. FPI inflows into the primary market rose 35% YoY to $4.75 billion in H1FY27, reports Kushan Shah. COMPANIES PAGE 4 LUXURY LIGHTS UP HOUSINGAS BUYERSTRADE UP FESTIVE PULSE-III REAL ESTATE PROPERTY SALES MAY have been lukewarm for much of 2026, but healthy bookings during Ganesh Chaturthi and Onam have raised developers’ hopes for a strong NavaratriDiwali season, reports Raghavendra Kamath. (intra-day, Oct 12, 2026) 95.78 Close 0.99% % change on October 12 Indian Rupee 0.99 South Korean Won Philippine Peso 0.81 0.10 Malaysian Ringgit 7.32 7.28 7.3 7.30 Open 96.74 Close Previous close -0.18 Thai Baht Pre Previous close -0.11 Japanese Yen 9 bps -0.01 Indonesian Rupiah 39 9 7.39 7.36 0.00 Chinese Renminbi Offshore Chinese Renminbi Taiwanese Dollar 7.40 0.00 Singapore Dollar 10-yr govt bond yield (%) 0.02 Hong Kong Dollar « Continued on Page 10 Rupee vs dollar Asian currencies performance -0.23 -0.01 -0.08 Source: Bloomberg ` defence set to raise hedging costs CHRISTINATITUS Mumbai, October 12 THE RESERVE BANK of India’s (RBI's)latestmeasurestodefend the rupee could make currency hedging significantly more expensive for importers, with economistsestimatingthatthe additional cost could range from1to1.5percentagepoints. Thehighercostcouldforcecompaniestorethinktheircurrency risk-management strategies, leaving them with an uncomfortable choice: pay more to hedge or take greater exposure to avolatile rupee. A treasury official at a large corporate said annual hedging costs had climbed from around 2.5% about 18 months ago to over 4.5% now.The RBI’s measures could add another 1.5–2 percentage points, taking the total overall cost close to 6%. “That is a significant burden that effectively penalises gen- Mehliweighs HC move overTrusts URVI MALVANIA Mumbai, October 12 FORMER TATA TRUSTS trustee Mehli Mistry is considering approaching the Bombay High Court over delays in hearings related to his complaints alleging governance lapses and trustee misconduct at three Tata trusts, according to people familiar with the matter. Mistry,who resigned from all Tata trusts last year except the Tata Education and Development Trust (TEDT), where he remains a lifetime trustee, had filed multiple complaints with the Maharashtra Charity Commissioner alleging governance lapses and trustee misconduct at the Sir Dorabji Tata Trust (SDTT), Sir Ratan Tata Trust (SRTT) and the smaller Bai Hirabai Jamsetji Tata Navsari Charitable Institution (BHJTNCI). Hearings in all three matters have been adjourned repeatedly, either at the request of the trusts or for administrative reasons. People close to Mistry said that if the hearings are SDTTgetsone moreweekto fileresponses THE SIR DORABJI Tata Trust (SDTT) has been granted another week to submit responses to the complaints filed by trustees Venu Srinivasan and Vijay Singh, people familiar with the matter said. On October 5, the Charity Commissioner of Maharashtra emailed the trust, informing it of the complaints filed by the two vice-chairmen, and given it seven days,that is until October 12, to respond to the concerns raised. Continued on Page 10 adjourned again on October 15,he is likely to file an objection before the Charity Commissioner, questioning the repeated extensions granted to the trusts. Continued on Page 10 uine businesses.Without hedging,howdoweprotectourselves fromforexvolatility?”theofficial asked. On Saturday, the RBI announced a series of measures to curb pressure on the rupee, including a ban on rebooking cancelled foreign exchange derivative contracts,a cut in the limit for derivative positions without underlying exposure from$100millionto$5million. Continued on Page 6 Septretail inflation shootsup to5.54% SHUBHAM RANA New Delhi, October 12 INDIA’S RETAILINFLATION,as measured by the Consumer Price Index (CPI), rose to a 23month high of 5.54% in September, driven primarily by higher food prices, data released by the statistics ministry on Monday showed. The spike was largely on expected lines, yet analysts said it increased expectations of more interest rate hikes. Economists polled by FE estimated September CPI inflation at 5.6%, up from 4.82% in August. CPIinflationhasnowstayed above the Reserve Bank of India’s(RBI)medium-termtarget of 4% for four consecutive months. September was also the 11th straight month retail inflation has risen. “We continue to see the inflation trajectory trending higher above 6% through the next few months as adverse base effects and food price shocks play out,” said Upasna Bhardwaj, chief economist at Kotak Mahindra Bank. “RBI’s revised inflation estimates remainrealistic,”Bhardwajsaid. Continued on Page 10 HALL,WOODFORDWIN PRIZE FORWORK ON ECONOMIC STABILITY Crisis theorists recasting Keynes’ ideas share Nobel economics CHARLIE DUXBURY October 12 TWO US-BASED ACADEMICS who reframed the thinking of John Maynard Keynes after the oil crises of the 1970s won the Nobel Prize in Economics. Robert E Hall of Stanford University and Michael WoodfordofColumbiaUniversitywill share $1.2-million award for their work on the “microeconomic foundations of macroeconomic stabilisation,” the Royal Swedish Academy of Sciences in Stockholm said on Monday.“It’satremendoushonour,”Woodford said.“It’s a surprise,but I’m feeling very good about it.” Hall was praised for a 1978 article on howconsumers prefer consumption to stay sta- Robert E Hall Michael Woodford »INSIDE« THE NOBEL LESSON FOR CENTRAL BANKS IN AN AGE OF SUPPLY SHOCKS, WRITES SAUMITRA BHADURI PAGE 2 ble,whileWoodford then developed the so-called New Keynesianmodelthathassinceproven highlyinfluential among global policymakers to this day.“The laureates’work has provided us withastabletheoreticalfoundationforthemodelsthatarenow used by central banks and governments around the world,” John Hassler, chair of the prize committee,said in a statement. “With them, we are better equipped to deal with shocks in the economy, such as energy crisesorsuddenchangesinhow muchhouseholdsconsume.” Woodford was asked if any economic event or shock had ensured that his new framework had really stood up to the test. He cited how central banks adapted their toolkit to the globalfinancialcrisisof2008as they confronted a slump in demandthatreductionsinborrowing costs on their own couldn’t solve. Continued on Page 10 New Delhi