India's foreign exchange reserves rose by $10.5 billion in the week ended July 31, marking the fifth consecutive weekly gain and the longest such streak since April 2025. The buildup strengthens the RBI's buffer against external shocks and currency volatility.

The reserve accumulation coincides with foreign inflows and a rebound in local equities. The benchmark Nifty 50 capped a second straight week of gains, while derivatives signal further optimism. Traders are monitoring the new auction mechanism after last week's volatility.

Meanwhile, shadow lenders face pressure after the RBI tightened sector rules. The report, by Savio Shetty and Pratigya Vajpayee on August 10, 2026, highlights mixed global cues with Asian stocks advancing but oil prices climbing amid geopolitical tensions.