India-Canada Tensions, Multiple In-Flight Bomb Threats, ECB Rate Cut — The Week That Was

From diplomatic uncertainties to significant political events and major economic announcements, this week has been eventful. NDTV Profit brings you the major events shaping businesses, industries, and global markets.

The week began with the India-Canada diplomatic relations taking a severe hit as India withdrew its high commissioner and other officials from Canada. This decision came amid escalating tensions between the two nations regarding the assassination of Khalistani separatist Hardeep Singh Nijjar in Canada earlier. Additionally, India expelled six Canadian diplomats, further straining the diplomatic relations between the countries. Prior to this, on Monday, Canada had expelled six Indian diplomats and consular officials in connection with the same probe.

India also released a strongly worded statement on Monday, where it firmly rejected a diplomatic communication from Canada that labelled the Indian high commissioner and other diplomats as "persons of interest" in an investigation. India described the claims as "preposterous imputations" and accused the Justin Trudeau government of pursuing a political agenda.

Turning to financial breakings for the week, Reliance Industries Ltd. announced 1:1 bonus shares, for which the record date has been set Oct. 28. This move will benefit approximately 35 lakh shareholders, allowing them to double their holdings at no additional cost.

With the announcement of a 1:1 bonus issue, shareholders will see their number of shares double. For instance, an investor holding 100 RIL shares will receive an additional 100 shares, resulting in a total of 200 shares.

In major global events apart from India-Canada escalating diplomatic tensions, the European Central Bank reduced interest rates for the third time this year on Oct 17, responding to a quicker-than-expected decline in inflation and aiming to support the struggling economy.

The key deposit rate has been cut by a quarter-point to 3.25%, in line with analyst predictions from a Bloomberg survey. The ECB indicated that the process of stabilising prices is expected to be completed in the course of next year, adjusting its previous timeline from the latter half of 2025. However, officials did not provide specifics on the timing or pace of future rate reductions.

In parallel, wholesale inflation also gained momentum, with the wholesale price index increasing to 1.84% in September, up from 1.31% in August. This rise was primarily attributed to a significant surge in food price inflation, which jumped to 11.53% from 3.11% the previous month.