Quick Read

• Markets reacted adversely to the retaliation across the border
• Pakistan’s market hits the lower circuit during the week
• Future trends in the market will depend on the level of escalation

Week that was

In a tense turn of events, India responded decisively to the terrorist attack that had struck Pahalgam, Kashmir, by launching missiles aimed at terrorist camps. This act of retaliation did not go unanswered; Pakistan swiftly escalated the situation by targeting both civilian and military sites within India. In a rapid progression of hostilities, the Indian side retaliated with a series of missile and drone strikes, leading to a situation where nightfall found multiple cities in Pakistan under attack.

The escalating conflict sent ripples of concern through the financial markets, which displayed a palpable sense of nervousness. As the week unfolded, Indian benchmark indices reflected this anxiety, closing with a drop of 1.39%. Meanwhile, the Karachi Stock Exchange faced an even steeper decline, plummeting by 6.67% over the same period. By the end of the week, Indian markets found themselves near their lows, as traders braced for potential further escalation over the weekend.

Despite the surging volatility and traders' apprehensions, history suggests that market reactions to such terrorist incidents tend to be fleeting. Unless the situation spirals into a full-blown war, significant further declines in the market may be unlikely. The uncertainty of the next chapter loomed large, but historical precedents offered a glimmer of hope amidst the turmoil.

Major corporate developments were:

• Sumitomo Mitsui Banking Corporation (SMBC) is set to acquire a significant 20% stake in Yes Bank Ltd., a private lender located in Mumbai. This acquisition involves purchasing a 13.19% stake from the State Bank of India (SBI) and a 6.81% stake from a consortium of other lenders that had previously aided Yes Bank during its financial distress in 2020.  In a related development, Federal Bank has announced its plan to sell a 0.5% stake in Yes Bank at Rs 21.5 per share, resulting in a total valuation of Rs 357.5 crore.
• Tata Motors has taken a significant step forward as its shareholders have approved a strategic plan to split the company into two publicly listed entities, effectively separating its passenger vehicle division from its commercial vehicle segment. This decision aims to create better growth opportunities, particularly for its luxurious Jaguar Land Rover (JLR) brand, which has served as a major revenue generator for the firm.
• Prestige Group's inaugural residential project in the National Capital Region, known as The Prestige City in Indirapuram, has been met with overwhelming enthusiasm in the real estate sector. The development garnered sales exceeding Rs 23,000 crore from 1,200 units in just one week. Spanning 62.5 acres, this ambitious project will feature 3,421 homes distributed across two phases, complemented by the upcoming Forum Mall, covering an area of 1.18 million square feet. This marks Prestige's formidable entry into the NCR market.
• Techno Electric has unveiled a bold investment initiative worth $1 billion to enhance its data centre capabilities across India, targeting a total capacity of 250 MW. The company has established Techno Digital Infra, its dedicated digital infrastructure arm, to create an integrated network of hyperscale and edge data centres. Furthermore, Techno is collaborating with RailTel Corp to deploy 102 Edge Data Centres across 23 states, a groundbreaking project to bring low-latency computing to Tier 2 and Tier 3 cities, supporting various sectors from AI to healthcare.
• In a new venture, Kesar Petroproducts has entered the fertiliser industry by launching a new plant in Ratnagiri with an annual capacity of 6,000 tonnes. Known for producing phthalocyanine blue crude pigment, the company plans to utilise by-products from this plant to create fertilisers.
• On the pharmaceutical front, Glenmark Pharmaceuticals' subsidiary, Ichnos Glenmark Innovation, has received fast-track designation from the US Food and Drug Administration for its investigational therapy to treat relapsed or refractory multiple myeloma. The fast-track status is designed to expedite the development and regulatory review of this promising tri-specific antibody therapy, which targets critical proteins on both myeloma and T cells.
• Mahindra & Mahindra (M&M) is keen to explore strategic alliances as it looks to expand its footprint in the medium and heavy commercial vehicle market. This move aligns with global players' increasing recognition of India as a key opportunity hub amidst changing geopolitical dynamics. Recently, M&M bolstered its position in the intermediate and light commercial vehicle sector through the acquisition of SML Isuzu.
• In the competitive landscape of passenger vehicle sales, Maruti Suzuki's market share dipped below 40% in April 2025, while Mahindra & Mahindra experienced a notable increase. Hyundai Motor India slipped to fourth place, capturing just 12.5% of the market, with Tata Motors closely behind at 12.6%.
• Looking ahead, M&M is set to introduce a new vehicle platform on August 15, 2025, as part of an initiative to enhance its SUV offerings. The company aims to boost production capacity by 3,000 units for the XUV3XO and Thar Roxx, with plans for an annual capacity of 120,000 units at its Chakan plant for the new platform.
• In the EV sector, Uber has decided to halt discussions on incorporating BluSmart's electric vehicles into its platform. The negotiations aimed to onboard 5,000 EVs were reportedly scrapped due to concerns about the depreciation of BluSmart's vehicles and issues related to their financing with lenders.
• In the real estate industry, the Shapoorji Pallonji Group is set to raise $3.25 billion, partly earmarked for refinancing Goswami Infratech's 2023 bonds. The proceeds will be from proposed non-convertible debentures expected to carry a 19.75% coupon over a 3.5-year term, drawing significant interest from major investors following a global roadshow.
• Telecom giant Bharti Airtel has urged the telecom department to act swiftly on its proposal to convert over Rs.41,000 crore in adjusted gross revenue dues into government equity. It cites the substantial debt burden on its promoter, Bharti Telecom, and the need for a stronger balance sheet for infrastructure investments.
• In the direct-to-home (DTH) sector, discussions between Bharti Airtel and Tata Play for a potential merger have come to an end. Although talks began in February regarding the acquisition of Tata Play, the two entities could not agree on essential terms, leading to the termination of negotiations.
• Adani Ports and Special Economic Zone (APSEZ) is focusing on expanding its marine, logistics, and agri-logistics businesses. It plans to invest Rs.13,000 crore in the Vizhinjam International Seaport to enhance cargo handling capacities by 2028. Additionally, the company aims to establish multi-modal logistics parks and improve grain storage capabilities.
• On the quick commerce front, the leading players—Blinkit, Zepto, and Swiggy Instamart—witnessed a remarkable doubling in daily orders in March compared to the previous year. As consumer preferences shift toward faster services, these platforms collectively account for over 85% of the orders in the quick commerce market.
• In April, vehicle registrations in India increased by 3% to 2.29 million units, driven by modest growth in both the two-wheeler and passenger vehicle segments. This was despite a decline in commercial vehicle registrations due to price hikes and low fleet utilisation.
• Consumer goods sales saw double-digit growth in the March quarter, primarily fueled by price increases and the performance of smaller manufacturers. However, overall volume sales faced challenges from an urban slowdown and decelerating rural growth.
• Amid legal complexities, Bhushan Power & Steel creditors are assessing their options after the Supreme Court annulled JSW Steel's Rs.19,350 crore resolution plan and ordered liquidation. Lenders, including major banks, are considering legal reviews and the broader implications for the insolvency resolution framework.

The week ahead 

Indian markets are expected to stay volatile depending on border tensions.

Quick Read

• FII buying streak continues for eight days
• US-China tariff war cools off
• Terrorist attack in Kashmir pulls market lower

Week that was

As the week wrapped up, Indian benchmark indices were bolstered by robust buying from foreign institutional investors (FIIs) who injected a notable Rs 17,796 crore into the markets. This sustained buying streak stretched across eight consecutive sessions, showcasing strong investor confidence. By the end of the week, the indices had posted a gain of 1.21%, a promising sign for traders and investors alike.

However, the week was not without its shadows. An unfortunate terrorist attack on Hindu tourists in Pahalgam, Kashmir, cast a pall over the market’s performance. The ensuing fears of escalating conflict led to a sharp correction on Friday, dampening what could have been even greater gains.

Amid this turbulence, there were glimmers of hope on the global front. Negotiations in the US with various countries, along with a notable cooling of tensions between the US and China, provided a supportive backdrop for the markets. Towards the week’s end, China indicated its willingness to engage in negotiations by announcing the lifting of tariffs on certain exports to the US, which further fuelled optimism in global markets.

Despite the challenges faced, the overall performance of the Indian stock market for the week was encouraging, leaving investors cautiously optimistic as they ventured into the next trading week.

Major corporate developments were:

• Apple is making significant changes to its manufacturing strategy, aiming to transition the production of all iPhones destined for the US from China to India by the end of 2026. This move is part of Apple's efforts to diversify its supply chain amidst growing US-China trade tensions. The company has already commenced trial production of the iPhone 17 series in India. Apple plans to produce over 60 million iPhones annually in Indian factories to meet the entire US demand by 2026. Recently, the company transported 1.5 million iPhones from India to the US via chartered flights, not only to avoid tariffs but also to test whether Indian manufacturing could quickly respond to spikes in demand. The results of this trial were promising, prompting Apple to fully commit to fulfilling its US demand from India.
• In another development, Canara Robeco Asset Management Company, one of the oldest asset management firms in India, has submitted preliminary documents to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO will consist of around 4.98 crore equity shares, entirely through an offer-for-sale by its promoters—Canara Bank and ORIX Corporation Europe NV—without any new share issuance. Canara Bank intends to sell 2.59 crore shares, while ORIX Corporation NV will sell the remaining 2.39 crore shares.
• Mahanagar Telephone Nigam Limited (MTNL) is facing significant financial challenges, having defaulted on loans totalling Rs. 83.5 billion to a consortium of banks between August 2024 and February 2025. This group of lenders includes notable institutions such as Union Bank of India, Bank of India, Punjab National Bank, State Bank of India, UCO Bank, Punjab & Sind Bank, and Indian Overseas Bank. MTNL's debts amount to an alarming Rs. 33,570 crore, reflecting outstanding dues to banks, state government bonds, and the Department of Telecommunications (DoT).
• On a more positive note, IDFC First Bank is poised to receive a substantial infusion of capital, securing a combined investment of Rs. 7,500 crore from Warburg Pincus and the Abu Dhabi Investment Authority (ADIA). The bank's board approved a preferential issue of equity capital on April 17, 2025, which includes Rs. 48,800 crore allocated to Currant Sea Investments, a Warburg Pincus affiliate, and Rs. 26,200 crore to Platinum Invictus B 2025 RSC, a wholly owned subsidiary of ADIA.
• In a significant development for the pharmaceutical sector, Divi's Laboratories has entered into a long-term supply agreement with an undisclosed global pharmaceutical firm to manufacture and supply advanced intermediates. The company expects this collaboration to generate meaningful revenue; to support the deal, Divi's plans to invest Rs 650-700 crore in expanding its manufacturing capabilities, utilizing funds from internal accruals.
• Meanwhile, Tesla is discussing diversifying its global supply chain with two companies, US memory chip manufacturer Micron and Mumbai-based CG Semi, part of the Murugappa Group. This move follows Tesla's strategic agreement with Tata Electronics to procure semiconductor chips for its global operations.
• In the energy sector, Vedanta Group announced an impressive investment of Rs. 500 billion to boost the oil and gas sector in Assam and Tripura over the next 3-4 years. According to Anil Agarwal, the group's chairman, Assam's Chief Minister, Himanta Biswa Sarma, has been discussing with Vedanta to outline a detailed investment plan to produce 100,000 barrels of oil and gas daily.
• JSW Steel is embarking on an expansive project at its Salav Works in Maharashtra, targeting a production capacity of 10 million tonnes over the next 3-4 years, with a projected expenditure ranging from Rs. 500 billion to Rs. 600 billion. Initially reliant on natural gas, the plant will be equipped to transition to hydrogen as demand for zero-carbon steel increases. Recently, this unit, which has a direct reduced iron capacity of 0.9 million tonnes, was transferred by JSW Steel to its wholly owned subsidiary, JSW Green Steel, through a slump sale.
• ArcelorMittal Nippon Steel (AMNS) India has set a bold target to produce 70% green steel at its Hazira plant by 2027, with a capacity poised to reach 15.6 million tonnes per annum by 2026-27. This ambitious endeavour necessitates an investment of Rs. 600 billion.
• In a remarkable stride towards sustainability, Rio Tinto, the world's second-largest mining company, has signed an initial agreement with AMG Metals & Materials to establish India's largest green aluminium plant globally. The initiative includes constructing an aluminium smelter with an annual capacity of one million tonnes and a refinery capable of producing two million tonnes, both reliant on renewable energy sources such as wind and solar, supplemented by pumped hydropower storage. The projected investment for the smelter is around $ four billion, while the refinery will likely require an additional $ two billion in funding. The first phase of this endeavour will involve establishing a smelter with a capacity of 0.5 million tonnes per annum.
• Premier Energies has forged a partnership with Germany's RENA Technologies to innovate in solar cell technology. The partnership focuses on high-efficiency manufacturing and advancing sustainable processes.
• Goldi Solar, another player in the renewable energy space, secured a Rs. 600 crore investment from Havells as part of a larger plan to raise up to Rs. 1300 crore. The company is looking to add an additional four gigawatts of module capacity by July 2025 and expand its domestic cell manufacturing capabilities within the next 18 months.
• Tata Elxsi secured a strategic engineering contract worth EUR 50 million with a prominent European automotive original equipment manufacturer (OEM). This partnership will establish a dedicated Global Engineering Centre to support the client's software platform and brand-aligned software engineering programs.
• In the technology sector, Infosys plans to acquire MRE Consulting, a firm specializing in technology and business consulting, for Rs. 310 crore in an all-cash transaction. This acquisition aims to enhance Infosys' competencies in trading and risk management, particularly within the energy marketplace. The consultancy will become part of Infosys' wholly owned subsidiary, Infosys Nova Holdings.
• ZF Commercial Vehicle Solutions, a division of the global ZF Group, has received an order from a leading commercial vehicle manufacturer for the supply of its next-generation AxTrax 2 electric axle. The order involves the delivery of several thousand units over multiple years.
• Adani Ports and SEZ has announced a significant non-cash acquisition valued at $2.4 billion for a coal export terminal in Australia to bolster its presence in the Asia-Pacific market. This acquisition of Abbot Point Port Holdings (APPH), based in Singapore, received approval from the Board of APSEZ and allows for the operation of a terminal with a current capacity of 50 MTPA.
• In a different vein, the US Equal Employment Opportunity Commission is probing allegations against Tata Consultancy Services (TCS) for racial, age, and national origin discrimination against American workers. Former employees filed complaints in late 2023, asserting they were targeted for layoffs while their Indian counterparts were retained. TCS has categorically denied these allegations, labelling them as meritless and misleading.
• In production advancements, Divi's Laboratories has formalized a long-term agreement with a global pharmaceutical company to produce advanced intermediates. To facilitate this venture, the company plans to invest Rs. 650-700 crore to enhance its production capacity, utilizing internal resources for funding.
• On the corporate front, Goodyear Tire and Rubber is considering divesting its farm tyre business in India. This move follows last year's sale of its off-the-road tyre business to Yokohama for $ 905 million. The company is collaborating with strategic advisors to explore a full sale, evaluating the Indian farm tyre business at Rs. 25-27 billion.
• In an initiative to expand clean energy, Coal India (CIL) and the Damodar Valley Corporation (DVC) have partnered to establish a 1,600 megawatt (MW) ultra-supercritical thermal power plant in Jharkhand, with an investment estimated at Rs. 16,500 crore . This project aims to enhance the existing capacity of the 500 MW Chandrapura Thermal Power Station. 

The week ahead 

Indian markets are now prone to movement at the border with Pakistan. Indian government’s reaction to the terrorist attack will decide the immediate trend in the market. Adding to the pressure will be any adverse announcement from President Trump. 

Quick Read

• Markets post a sharp recovery in a truncated week
• Gold touches new all-time high in international market
• US Fed’s hawkish statement fails to stop market from rising

Week that was

Most global markets seem to have discounted the tariff war between the US and China. Global markets bounced back strongly during the week even as the US imposed tariffs of 245% on China. The 90-day pause on imposition of tariffs on countries other than China seem to have prompted the rally.

In the a three-day week, markets recovered sharply with the benchmark indices gaining 4.51% led by financials. The market’s mood was lifted after FIIs pumped in funds post relentless selling for many days. Further, reports of India and the US reaching a deal as per the Bilateral Trade Agreement aided market confidence.

During the week, the rupee and equity indices stayed strong. Short covering throughout the week picked up on April 17 resulting in a sharp rally. Beises, gold prices touched a new all-time high.

The week also saw a hawkish US Fed chief Jerome Powell saying that he expects higher inflation and a weaker job market despite the protectionist policies of President Trump. US markets crashed after Powell’s speech as he refused to throw a lifeline and toe the President’s line. Expectation of further rift between the President and the Federal Reserve will keep markets volatile, which explains gold touching a new high.

Major corporate developments were:

• As India moves towards electrification of passenger vehicles, corporates are busy inking deals for their share of the pie. In a strategic move to gain greater control over its electric vehicle (EV) supply chain, JSW Group is discussing acquiring battery cell technology with Chinese and South Korean firms. JSW Group, which entered the automotive sector in 2023 by acquiring a stake in MG Motor India, announced its plans to invest in a lithium-ion battery manufacturing facility in Maharashtra earlier this year. The plant will supply batteries for the company's EVs, including models such as the MG ZS EV and Windsor, both currently adapted from Chinese platforms.
• Lubricant player Gulf Oil Lubricants India is also making its presence felt with plans to generate Rs 500 crore in revenue over the next 4-5 years. The company is targeting a market share of 8-10%. It also explores export opportunities in South Asia and the Middle East. Gulf Oil has made three acquisitions in the EV charging space, including UK-based Indra Renewable Technologies, a 51% stake in Tirex Transmission and a 26% stake in Techperspect Software. So far, the company has invested Rs.1.5 billion in developing this vertical.
• Price control has affected pharmaceutical companies, with Sanofi putting its key insulin brand, Lantus, up for sale. It has initiated the sale process with Glenmark, Dr Reddy's Laboratories, and Emcure Pharma. The company has lowered Lantus' expected valuation from Rs.30 billion to Rs.20 billion amid declining sales and a government-mandated price cut.
• We are closer to the end of the acquisition of AkzoNobel's paint business. JSW Paints and Indigo Paints emerged as the top two contenders for acquiring the AkzoNobel India business. AkzoNobel has about a 10% share in the Indian paint market, and its market capitalisation stood at about Rs.160 billion.
• Suzuki Motorcycle India has partnered with Flipkart to facilitate online bookings of its motorcycles and scooters. The deal would offer hassle-free digital buying for Suzuki's models, such as the Avenis scooter, Gixxer motorcycle series, and V-Strom SX.
• While acquisitions and tie-ups dominated the horizon last week, restructuring is also on the cards for banks trying to manage their distressed assets. SBI’s board has approved a restructuring package for Rashtriya Ispat Nigam (RINL). The plan envisages lower-margin money for the company and interest rate cuts on loans to the company.
• NBFCs are foraying into new business areas. Poonawalla Fincorp (PFL) has announced its new shopkeeper loan business. This new business aims to offer customised financial solutions to small retailers and Kirana stores across India. The initiative will initially be rolled out across 44 locations to address critical financial challenges faced by small businesses, such as cash flow management, inventory financing and improving operational efficiency.
• Another NBFC, Shriram Finance, is seeking the Reserve Bank of India's (RBI) approval for a standalone primary dealership (PD) licence to underwrite auctions of government securities. Last week, Shriram Finance secured RBI's approval to acquire 100% equity in Shriram Overseas Investments (SOIPL) from Shriram Investment Holdings.
• HDFC Capital is seeking to invest Rs. 1,500 crore in Eldeco Group's 18 residential projects in tier-2 and tier-3 cities like Panipat and Sonipat, Ludhiana, Kasauli, and Rishikesh. These projects, spanning over 10 million sq ft, have a revenue potential of Rs.110 billion.
• In another acquisition, Coromandel International (CIL) has sought approval from the Competition Commission of India (CCI) to acquire a majority stake in NACL Industries. It plans to acquire a 53% stake in NACL Industries for Rs. 820 crore, enabling the company to expand its scale, accelerate its entry into the contract manufacturing business and expand its product portfolio.
• GAIL India has issued a tender to buy up to 26% stake in a liquefied natural gas project in the US combined with a 15-year gas import deal. GAIL wants one million tonnes per year of LNG from a plant in the US on a free-on-board basis for 15 years. It may extend the deal by 5-10 years.
• NPCIL has received interest from central PSUs in jointly developing nuclear power plants. The Nuclear Power Corporation of India (NPCIL) has garnered interest from other central public sector undertakings (PSUs) jointly establishing nuclear power plants. The interested PSUs include Indian Oil Corporation and the Indian Railways. Several states have also shown interest in having a minor stake in such a project. The company has set a target to achieve 50 GW by 2047, of which 30 GW will be from pressurised heavy water reactors and 24 GW will be based on light water technology.
• The tariff war initiated by President Trump has reached India Inc. TCS believes that the disruption caused by tariffs will be temporary. Based on the discussions with clients, the company anticipates continued growth in the manufacturing sector, excluding automotive and the banking, financial services, and insurance (BFSI) sectors. The company also expects the retail, consumer packaged goods (CPG), travel and automotive industries to be the most affected by the tariffs, which are currently on a 90-day hold in most regions.
• Sun Pharmaceutical saw some relief after the United States (US) Court of Appeals lifted the preliminary injunction that delayed the launch of its Leqselvi treatment. Leqselvi treats autoimmune-related hair loss. The company has been engaged in a patent dispute with Incyte Corporation over the drug.
• Competition in the quick-delivery space is heating up. Flipkart is going the league by announcing that it will set up 800 operational dark stores for its quick commerce service, Minutes, by the end of 2025. The company already has around 300 operational dark stores. Flipkart's aggressive expansion is likely to raise competition in the quick commerce segment. Blinkit currently has 1,000 dark stores operational, while Swiggy has 700 dark stores as of December 2024. Zepto has 900 dark stores as of January 2025.
• We end this section with some good news from brothers Abhishek Lodha and Abhinandan Lodha, who have officially resolved all outstanding disputes between them and the companies they lead. As per the agreement, Abhishek Lodha-led Macrotech Developers retains exclusive ownership and usage rights to the brand names 'Lodha' and 'Lodha Group', while Abhinandan Lodha holds exclusive rights to the brand name 'House of Abhinandan Lodha' (HoABL). There is no cross-ownership or claims between the brothers in each other's businesses.

The week ahead 

While Indian markets have closed on a high note, global cues, especially actions by the US President will drive markets. Corporate earnings will also have an impact on the future direction of the market. 

Quick Read

• Indian markets are jittery as traders await retaliatory action from India
• DII holdings cross FII holdings
• FII holding of Indian equity at a 50-quarter low

Week that was

After the terrorist attack in Kashmir, Indian equities have been moving in a narrow range with higher intraday volatility. Traders are apprehensive about taking a position on the long side and are waiting for action from the Indian side on the matter. Nonetheless, Indian benchmark indices closed the week with a gain of 1.21%, thanks to a sharp rally on April 28.

However, FIIs are using this pause to re-enter the market. Data shows that FIIs have been consistent buyers since mid-April, resulting in a positive inflow for the month. For March and April, FII investment has been marginally positive after record selling in the previous fiscal.

Relentless selling by FIIs and equally determined buying by DIIs have resulted in DIIS now holding more stakes in Indian markets than FIIs. DIIs now hold 16.9% of Indian equities, compared to 16.84% by FIIs. The assets under custody of DIIs stand at Rs 69.80 lakh crore, compared to Rs 69.58 lakh crore by DIIs. FII holding in the Indian market is at a 50-quarter low.

Major corporate developments were:

• In a significant turn of events, the Carlyle Group is aiming for a complete exit from its investment in PNB Housing Finance. It is looking to divest its entire stake of 10.44% through a block deal. The floor price for the deal has been set at Rs 960 per share, showcasing a strategic move by Quality Investment Holdings PCC, the entity associated with Carlyle.
• Meanwhile, positive news emerged for Hindustan Aeronautics Limited (HAL) as the Indian Army and the Indian Air Force (IAF) have cleared the Advanced Light Helicopter (ALH) Dhruv for operations. This development follows an investigation into the fleet groundings after a tragic accident in Gujarat on January 5. The helicopter fleet now surpasses 400,000 flying hours without design or operational issues.
• On the corporate collaboration front, Dixon Technologies has reached a joint venture agreement with Taiwanese firm Inventec Corporation to manufacture various notebook and desktop PC products in India, including crucial components and servers. Dixon will primarily own 60% of the JV, with Inventec holding the remaining 40%. This move positions Dixon to tap into high-growth segments while leveraging Inventec's extensive client portfolio, which includes tech giants like Hewlett-Packard and Toshiba.
• In alignment with its growth strategy, Dixon Technologies is also embarking on manufacturing electronic components to meet its internal needs. The company has kicked off a project focused on display modules and is assessing other potential categories, such as camera modules, mechanical enclosures, and lithium-ion batteries, both for local and future global markets.
• Similarly, Hindustan Zinc, a subsidiary of Vedanta, is foraying into potash mining to reduce India's dependence on imports. The company is eyeing a block in Rajasthan, where there's potential for lithium reserves alongside potash.
• In the renewable energy sector, Reliance Industries has made strides by commissioning a 10-gigawatt (GW) solar photovoltaic module manufacturing line in Jamnagar, Gujarat. This initial capacity of 10 GW is expected to double to 20 GW, part of a broader $10 billion investment plan to achieve net-zero emissions by 2035.
• In the auto sector, Mahindra & Mahindra (M&M) is making headlines with its acquisition of a 58.96% stake in SML Isuzu for Rs.5.55 billion, marking a significant move at Rs. 650 per share. M&M will also launch a mandatory open offer for an additional 26% stake from public shareholders.
• Conversely, Maruti Suzuki has decided to slow down land acquisition for a second factory in Gujarat, citing sluggish car sales growth, which has remained at 1-2%. Chairman RC Bhargava clarified that while there's no delay, the company is proceeding cautiously, given the current market conditions.
• Nissan Motor India is restructuring its operations, cutting back on non-core functions within its Renault Nissan Technology & Business Centre India. The transition involves transferring back-office services to Accenture and Genpact, aiming for completion by mid-June 2025.
• In a bold move to enhance rural internet access, Reliance Jio plans to sell Starlink hardware in its retail outlets across India. This initiative, dependent on SpaceX's approval to operate in the country, promises to broaden connectivity using satellite technology.
• Nokia Solutions and Networks India has divested its 0.95% stake in Vodafone Idea (Vi) through an open market transaction, raising Rs. 7.9 billion. Goldman Sachs acquired a substantial amount of shares in the same entity.
• The cinema industry is also seeing shifts as PVR INOX aims to expand its footprint through a franchise-owned, company-operated (FOCO) model. CEO Pramod Arora announced agreements for 100 screens in 22 cinemas, emphasizing a focus on affordable luxury experiences to cater to the rising demand for unique cinematic offerings.
• However, the microfinance sector is grappling with a crisis, with gross non-performing assets (NPAs) skyrocketing to 16% in FY25, a sharp increase that has shaken lender confidence and reduced loan portfolios, particularly impacting small finance banks.
• In the insurance space, the Bajaj Group has sought regulatory approval to acquire Allianz SE's 26% stake for Rs.24,180 crore. This deal, the largest in the insurance sector, will bolster the group's ownership in Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance to 100%.
• Whirlpool Corp is also making headlines as it considers selling a 31% stake in its Indian subsidiary, attracting interest from major private equity firms. This potential sale, estimated to raise $550-600 million, would allow Whirlpool to maintain a 20% stake while granting greater autonomy to its Indian operations.
• Additionally, Global Health, renowned for its Medanta hospitals, is set to invest around Rs.500 crore to establish a 400-bed super-specialty hospital in Guwahati, Assam, significantly enhancing healthcare infrastructure in the region.
• Lastly, pharmaceutical giants Cipla and Glenmark are eyeing expansion in the U.S. market and are ready to adapt to changing tariff policies. Cipla focuses on respiratory and oncology products, while Glenmark plans to ramp up operations at its Monroe injectables facility, marking a strong commitment to growth in the competitive U.S. market.

The week ahead 

Indian traders are likely to remain on their toes till we get some clarity on the reaction of the Indian army to Pakistan’s terror attack. 

Quick Read

U.S. and China continue to trade charges on reciprocal tariffs

RBI cuts repo rates by 25 bps

Indian markets close flat, posting a strong recovery after Monday’s gap down 

Week that was

Another eventful week saw market volatility rise as U.S. President Donald Trump and Chinese President Xi Jingping had a showdown on reciprocal tariff. Both the countries were raising tariff rates on each other, which have now reached levels close to 100%. Trade at such levels is literally impossible.

In the second part of the week, Trump decided to pause the tariff implementation on all countries except China. Global markets saw a relief rally after this announcement; however, the real impact of this tariff on China can impact global growth.

For China, U.S. is the biggest market, a huge tariff will hit its growth, the result of which could be that China either decides to slow down and reduce production or dumps its goods in every major market. Both the scenarios are bad for world economy.

As for now, equity markets are feeling relieved that high rates of reciprocal tariffs will not take place. Countries are sitting on the negotiating table and hopefully an amicable solution can come out of it. The hope was reflected in the market movement with benchmark indices closing the week on a high note, regaining the sharp gap down on Monday. The sharp recovery saw the Indian market closing the week flat.

Bullishness in Indian markets was also helped by the RBI’s decision to cut rates. The central bank announced a 25 bps repo rate cut, bringing it to 6% from 6.25%. Importantly, the central bank lowered the inflation projection target to 4% from 4.2%, though it also lowered the growth forecast to 6.5% for FY2026 from 6.7%. 

Major corporate developments were:

Adani Energy Solutions Limited’s (AESL) commitment to expanding its transmission network while improving distribution efficiency has yielded impressive results, as evidenced by a staggering 3.5-fold increase in its transmission order book, now standing at Rs. 59,936 crore. During the quarter, the company added new projects, including two significant transmission projects: Navinal (Mundra) Phase I Part-B and Mahan Transmission.

Meanwhile, in information technology, Tata Consultancy Services (TCS), India's largest IT services firm by revenue, announced a decision to defer salary hikes for employees starting in April. This move comes amid growing macroeconomic uncertainties exacerbated by an ongoing tariff war involving the U.S. and other countries. The company’s executives indicated that salary adjustments would be revisited later in the fiscal year when there is more clarity on the economic outlook.

On a different front, Cyient DLM has taken significant strides by deepening its strategic partnership with Deutsche Aircraft, a German regional aircraft manufacturer. This collaboration aims to design, develop, and manufacture a cabin management system for the innovative 40-seater regional turboprop D328eco. It marks a pivotal moment as it represents one of Deutsche Aircraft's first electronics programmes crafted and produced in India.

Ratnamani Metals has embarked on a joint venture with Saudi Electric Supply Company Limited (SESCO). This venture aims to deliver critical tubing solutions to consumers in the Kingdom of Saudi Arabia and across Gulf Co-operation Council (GCC) countries, emphasising local manufacturing of imported seamless products.

In a substantial commitment to infrastructure development, REC has entered a memorandum of understanding to invest Rs. 1 lakh crore in various projects within the Mumbai Metropolitan Region (MMR) to address urban mobility, housing, and essential services.

In the backdrop of corporate restructuring, Vedanta is reevaluating its demerger strategy, potentially consolidating its operations into four units following creditors' objections to the separation of its power business.

Additionally, HUDCO has committed to providing up to Rs. 1.5 lakh crore for infrastructure projects in collaboration with the Mumbai Metropolitan Region Development Authority (MMRDA) over the next five years. This partnership seeks to finance essential projects and extend consultancy and capacity-building services to empower MMRDA's initiatives.

In a significant move to enhance its logistics capabilities, Delhivery announced the acquisition of Ecom Express for Rs. 1,407 crore, with plans to finalise the deal within six months. This acquisition follows Ecom Express's shelved IPO plans, raising concerns over inflated shipment data, and aims to leverage the strengths of both the companies to improve service quality and operational efficiency.

Shifting the focus to renewable energy, the Odisha government has allocated land to Inox Solar, a subsidiary of Inox Clean Energy, for a largescale solar cell and module manufacturing plant in Dhenkanal. The facility, boasting a capacity of 4.8 GW for both solar cells and modules, represents a significant investment in the state's green initiatives.

In the healthcare sector, Metropolis Healthcare has announced its intention to acquire Dr. Ahuja's Pathology and Imaging Centre (Dapic) in Dehradun for Rs. 35 crore. This acquisition, Metropolis' third in North India recently, is part of the company's strategy to strengthen its regional market position.

On the maritime front, Adani Ports and Special Economic Zone (APSEZ) has commenced operations at the Colombo West International Terminal in Sri Lanka, which was developed under a public-private partnership. This USD800 million investment enables the terminal to handle approximately 3.2 million TEUs annually, further solidifying APSEZ's presence in the region.

Lastly, in telecommunications, Vodafone Idea has taken a significant step by issuing and allotting nearly 3,695 crore equity shares, equating to Rs. 36,950 crore, to the Department of Investment and Public Asset Management, thereby transforming spectrum auction dues into equity. This move has raised the government's shareholding in the company to nearly 49%, a crucial step towards stabilising the debt-laden telco's balance sheet. 

The week ahead 

Although the earnings season has commenced, market movements remain heavily influenced by tariff-related announcements from U.S. President, Donald Trump. Despite a 90-day pause on new tariff impositions, market sentiment remains jittery due to the unpredictability of his sudden policy declarations, which continue to unsettle investors.

Quick Read

• Trump’s tariff results in global rout
• Indian markets fell sharply in reaction to the 26 percent tariff on the country
• Oil prices crashed in anticipation of a slowdown and higher OPEC output

Week that was

An eventful week concluded with the benchmark index dropping by 2.61%. The week began with US President Donald Trump announcing reciprocal tariffs on all trading partners. As a result, exports from India to the US will now be subject to a 26% duty.

The impact of these reciprocal tariffs was felt worldwide, leading to declines in global markets for much of the week. The situation escalated on Friday when China imposed a 34% tax on US goods, causing markets to crash. With uncertainty prevailing, many financial markets, including cryptocurrencies, experienced significant downturns throughout the week.

Countries have responded differently to trade tensions. For instance, China has retaliated with reciprocal taxes, while others, such as Israel and Vietnam, have complied with US demands by eliminating their tariffs on American goods. In contrast, India has adopted a more cautious stance.

India is currently negotiating a trade deal with the US that would reduce duties and foster increased trade between the two nations. Under this Bilateral Trade Agreement, both countries are working to raise their trade volume from $190.08 billion in 2023 to $500 billion by 2030. The first phase of the agreement is expected to be finalized by the fall of this year.

Although Indian markets have declined in response to a global equity selloff, the direct impact on Indian companies is not as severe as it may appear. Competing economies have been affected more significantly, which could make Indian products more attractive in the US market.

Currently, the sectors in India that seem to be impacted by Trump’s tariffs include textiles, chemicals, agricultural products, gems and jewellery, machinery, electronics, and electrical goods.

The overall slowdown caused by the tariffs will significantly affect Indian companies. In response to this news, oil markets have experienced a drop of nearly seven percent. Compounding the challenges in the energy market, the oil cartel OPEC has decided to increase oil production. This decision likely reflects the expectation that tariffs and restrictions on various OPEC members, such as Venezuela and Iran, imposed by Trump, will reduce output from these countries. Meanwhile, gold prices fell on Friday after reaching a new high earlier in the week.

Major corporate developments were:

• Paras Defence and Space Technologies has partnered strategically with Israel's MicroCon Vision to revolutionize India's drone technology sector. Through this MoU, Paras Defence will exclusively supply advanced drone camera systems in India, integrating indigenous components to reduce costs significantly. The company plans to offer two models, typically priced at ₹20 lakh and ₹40 lakh per unit when imported, at a 50-60% reduced cost. This move aims to enhance the accessibility of cutting-edge surveillance technology for Indian defence forces and commercial applications while fostering self-reliance in critical defence technology.
• Meanwhile, Laurus Labs has committed ₹5,000 crore to establish a manufacturing facility in Andhra Pradesh's Anakapalli district. This project is expected to create 7,500 jobs and boost the region's industrial growth. The state government has pledged land allocation and a supportive business environment to facilitate the initiative.
• In another major development, Lupin has acquired UK-based Renascience Pharma for ₹1.35 billion through its subsidiary Lupin Healthcare (UK). This acquisition grants Lupin full ownership of Renascience, which specializes in branded pharmaceuticals for infectious diseases, ear pain, and cardiovascular conditions in the UK market.
• Vedanta is exploring partnerships with global EPC firms to expand its zinc, aluminum, and steel businesses brownfield over the next three years. Similarly, UltraTech Cement has approved the acquisition of Wonder WallCare Pvt. Ltd., a white-cement-based putty manufacturer, for ₹235 crore.
• The government plans to divest up to a 4.83% stake in Mazagon Dock Shipbuilders Limited through an Offer for Sale (OFS). The floor price is set at ₹2,525 per share—a discount of nearly 8% from the current market price.
• Reliance Industries announced a ₹65,000 crore investment to establish 500 compressed biogas plants in Andhra Pradesh. These plants will utilize barren land and produce green biogas and organic fertilizer annually.
• Additionally, Kirloskar Oil Engines signed a project sanction order with the Indian Navy to design and develop 6MW marine diesel engines domestically under the Make-I initiative. Bharat Electronics secured a ₹593 crore contract with the Indian Air Force for Akash Missile System maintenance services while negotiating orders worth ₹5,000 crore.
• SPML Infra partnered with Energy Vault USA to manufacture and deploy advanced energy storage systems in India, targeting 30-40 GWh of capacity over the next decade.
• Hindalco Industries unveiled plans at its Investor Day 2025 to quadruple recycling capacity by FY30 while investing $5.19 billion in aluminium and copper expansion projects.
• Lastly, Shriram Finance received RBI approval to acquire Shriram Overseas Investments Private Limited entirely, which strengthens its financial capabilities within the group.

The week ahead 

Indian markets are expected to align with global markets this week, which will also witness the release of the first set of earnings reports.