Indian benchmark indices concluded Friday on a soft note, with the NIFTY closing below 24,750. The Sensex dipped by 573.38 points (0.70%) to 81,118.60, and the NIFTY fell by 169.60 points (0.68%) to 24,718.60. This subdued market performance comes amid a week of varied, yet interconnected, global and domestic economic developments.
The Reserve Bank of India (RBI) infused nearly Rs26,000 crore into the system via a bond buyback and cancelling its 14-day variable rate repo (VRR) auction for the third consecutive time. This signals the central bank's comfort with current liquidity conditions, even with impending outflows from advance tax and goods and services tax (GST) payments. Concurrently, a significant shift was observed in the banking sector, as public sector banks (PSBs) outpaced private lenders in loan growth for the first time in 14 years during FY24-25, reporting over 13% year-on-year (y-o-y) growth. RBI directed banks and non-banking finance companies (NBFCs) not to halt transactions for ‘low-risk’ customers, despite pending know-your-customer (KYC) processes until June 2026, aiming to ease customer compliance. In the insurance sector, new business premiums rose a healthy 13% in May, driven largely by private players, though policy sales experienced a slight dip.
Internationally, global economic signals were mixed. US inflation in May rose less than expected to 2.4%, providing a glimmer of hope that price pressures might be moderating, though it remains above the Federal Reserve's (Fed’s) 2% target, keeping potential rate cuts at bay. Meanwhile, the US labour market showed signs of softening, with jobless claims reaching an 8-month high of 248,000 and the total number of Americans receiving unemployment benefits seeing its most significant jump since November 2021.
Following a US duty hike, India now faces additional pressure from the European Union (EU) on steel quotas, with Indian exports to the bloc facing a 25% tariff if they exceed a pooled quota of 12,500 tonnes. This ‘double whammy’ for the Indian steel sector underscores the increasing protectionist tendencies globally. In a related development, the US asserted that India has ‘no basis’ to seek WTO consultations on auto tariffs, citing national security exceptions for its imposed duties, further complicating trade relations.
Domestically, the automotive sector is facing a challenging landscape. Indian car dealerships are grappling with a record Rs52,000 crore pileup of unsold inventory, representing 34-38 days of stock, as manufacturers continue to push vehicles, despite subdued retail demand. A significant part of this challenge stems from the struggle to secure rare earth magnets, crucial for electric vehicles (EVs) and hybrid vehicles (HVs). Indian auto-makers are urging the government to engage with China, the dominant supplier, to ensure steady imports, while also exploring diversification of sourcing and domestic processing, a long-term endeavour. Interestingly, despite these hurdles, luxury EV sales in India have hit ‘top speed’, accelerating by 66% in the first five months of 2025, driven primarily by major metro markets and strong demand from players like Mercedes-Benz and BMW.
However, the overall picture of India's EV adoption appears to be in ‘reverse’, with the share of EV sales in total vehicle sales declining slightly in 2024 compared to that in 2023. In a strategic move to boost domestic manufacturing and reduce import reliance, the Central Electricity Authority (CEA) recommended incentives for critical battery parts, along with establishing a national testing lab for battery energy storage systems (BESS).
Finally, in a sign of robust infrastructure development, the Union Cabinet cleared two significant railway projects worth Rs6,400 crore, aimed at doubling rail tracks across Jharkhand, Karnataka and Andhra Pradesh. These projects are expected to enhance the railway network, increase freight capacity by 49MT (million tonnes) annually and reduce logistics costs. The government's continued push for capital expenditure (capex) is also reflected in the fact that over 42% of total external commercial borrowings (ECBs) in FY24-25 were earmarked for capex, even as total ECB filings saw a sharp drop in April 2025. This focus on domestic infrastructure is further reinforced by the NHAI's move to cap the number of projects for quality control by consultancy firm engineers to a maximum of 10, aiming to enhance supervision and ensure better project execution.
In an intriguing corporate development, Allied Blenders and Distillers (ABD) acquired global rights for the Mansion House and Savoy Club brands for US$1.2mn(million), even as a dispute with Tilaknagar Industries over their ownership in India continues, highlighting the complexities of brand intellectual property in emerging markets. Lastly, in China, car-makers, including State-owned entities, have agreed to pay suppliers on time, a measure driven by government intervention to address supply-chain financing issues.
The World Bank (WB) revised India’s growth projections, lowering its forecast for FY25-26 to 6.3% (down 40bps – basis points--from January estimates) and FY26-27 to 6.5% (down 20bps). However, WB anticipates growth acceleration in FY27-28, projecting 6.7% expansion, reflecting stronger medium-term fundamentals, despite near-term adjustments.
India’s May CPI (consumer price index) inflation eased to 2.82%, marking the lowest level since February 2019, and falling below the estimated 2.98%. The decline was driven primarily by lower food prices, particularly in vegetables, pulses, cereals, fruits and eggs. Food inflation dropped to 0.99%, the lowest since October 2021, with rural inflation at 0.95% and urban at 0.96%. Other key sectoral inflation rates include housing, health, education, fuel & light and transport.
The trends of the major indices in the course of the week's trading are given in the table below:
Corporate News
Zydus Lifesciences received the establishment inspection report (EIR) from the US food and drug administration (US FDA) for its active pharmaceutical ingredient (API) manufacturing facility in Ankleshwar (Gujarat). The inspection was classified as ‘No Action Indicated’ (NAI), meaning it concluded without any objections and is now officially closed, reinforcing regulatory compliance at the facility.
CE Info Systems (MapMyIndia) fell on 12 June 2025 following a large block deal involving a 5.3% stake, unsettling investors. The transaction involved 28.6 lakh shares, traded at an average price of Rs1,813.7 per share, amounting to a total deal value of Rs518.72 crore. While the identities of the buyer and seller remain unconfirmed, market sources speculate PhonePe as the likely seller. PhonePe currently holds an 18.7% stake in MapMyIndia, as per the company’s latest shareholding data for the March quarter. The timing of the sale has drawn attention, as it comes amid PhonePe's preparations for its own initial public offer (IPO), possibly indicating a strategic move to optimise liquidity. The sudden stake dilution has raised concerns among investors, contributing to the sharp price decline.
Starting 1 October 2025, the Securities and Exchange Board of India (SEBI) will introduce validated UPI handles - unique, verified UPI IDs to SEBI-registered intermediaries and SEBI check – ‘green thumbs-u’ icon will mark verified entities for easy identification to enhance investor protection in capital markets.
The customs department is investigating duty evasion under the ASEAN-India free tade agreement (FTA), scrutinising around 2,000 copper importers for allegedly misclassifying imports to claim zero duty. Authorities now seek a 35% duty with bank guarantees, citing third-party data from Vietnam. If enforced, this could make imports more expensive, resulting in a neutral-to-positive impact for Hindustan Copper as domestic suppliers gain pricing advantage.
Indian government imposed anti-dumping duties on insoluble sulphur from China and Japan and vitamin-A palmitate from China, the EU and Switzerland, following Directorate General of Trade Remedies (DGTR) recommendations to protect domestic industries. These duties, applicable for five years, aim to stabilise market prices and support local manufacturers. Insoluble sulphur, essential for rubber vulcanisation, benefits tyre makers like MRF, Apollo and JK Tyres, while vitamin-A palmitate, used in fortified foods and pharma, helps Piramal Pharma and Fermenta Biotech. Chemicals players like Oriental Carbon Chemical, Coromandel, PI Industries and Navin Fluorine are also likely to gain from reduced competition. Duty rates range from US$0.87 to US$20.87/kg for vitamin-A palmitate and US$259 to US$358/metric tonne for sulphur, reinforcing India's efforts to curb unfair pricing practices in these sectors.
Saudi Arabia and the UAE will import electricity from India through subsea cables. The transmission infrastructure includes a 1,700km cable to Saudi Arabia, costing US$5.5bn (billion) and a 1,400km cable to the UAE, with an investment of US$5.1bn. This 2GW (gigawatt) electricity export project is expected to be completed over six years, marking a significant step in regional energy collaboration.
From 8 June 2025, all newly manufactured N2 and N3 category heavy trucks must be equipped with ISO-certified air-conditioning kits for the driver's cabin. Initially planned for 1 October 2024, the regulation was later modified in 18 December 2023 notification, granting an 18-month transition period to manufacturers. This reform aims to improve driver comfort and safety, making Subrosa key beneficiary in the auto ancillary space.
Glenmark Pharmaceuticals will launch Drug Controller General of India (DCGI)-approved BRUKINSA® in India, offering a novel treatment for haematological malignancies. This introduction strengthens Glenmark’s focus on advanced oncology solutions, reinforcing its commitment to effective cancer care.
Garden Reach Shipbuilders & Engineers (GRSE) (+1.46%) signed memorandum of understanding (MOUs) with Berg Propulsion (Sweden) and SunStone (Denmark), enhancing its global maritime collaborations. Meanwhile, the Indian Navy is set to commission its first anti-submarine warfare shallow water craft, marking a significant milestone in indigenous naval capabilities.
Maruti Suzuki planned to cut production of its first EV, the E-Vitara, by two-thirds in April–September, producing 8,221 units instead of the previously planned 26,512 units. However, the company aims to ramp up production in later months to meet its full-year target of 67,000 units, adjusting its manufacturing strategy accordingly.
Sonata Software entered a three-year collaboration with IISc's Foundation of Science Innovation and Development (FSID) to advance artificial intelligence (AI)-driven scientific research. The partnership focuses on AI education, innovation and promoting responsible AI practices, strengthening India's AI ecosystem through academic and industry synergy.
Power Grid Corporation of India approved the National Unified Network Management System (NUNMS), Rs131.68 crore project set for commissioning by February 2027. This initiative aims to enhance grid reliability and efficiency, marking a significant step in strengthening India’s power infrastructure.
Deepak Fertilisers revised the project cost for its WNA (weak nitric acid) and CNA (concentrated nitric acid) plants at Dahej to Rs1,982.79 crore, up from the previous estimate of Rs1,950 crore.
HCL Technologies introduced a managed secure service edge (SSE) solution in collaboration with Cisco, aiming to enhance enterprise security. This solution integrates Cisco's Secure Access technology with HCL Tech's 360° managed services, offering businesses advanced protection and seamless connectivity in their security frameworks.
Reliance Infrastructure’s subsidiary, Mumbai Metro One, won an arbitration award, with the Bombay High Court directing MMRDA to deposit Rs1,100 crore into Mumbai Metro One’s account within four weeks. The proceeds will be utilised to reduce Mumbai Metro One’s debt. Mumbai Metro One is a joint venture (JV), with Reliance Infra holding 74% and MMRDA holding 26%.
ACME Solar Holdings successfully commissioned 75MW of additional renewable energy capacity at its Sikar Solar project in Rajasthan, bringing its total operational capacity to 2,806.4MW. This expansion reinforces ACME’s commitment to sustainable energy growth and strengthens its footprint in India's renewable sector.
Orient Green Power subsidiary, Delta Renewable Energy, secured an engineering-procurement-construction (EPC) contract for a 7MW AC (9.80MW DC) solar power project in Tamil Nadu, with an estimated development cost of Rs40 crore. This strengthens its commitment to expanding India's renewable energy infrastructure.
MTNL announced that due to insufficient funds, it is unable to fund the escrow account for the 9th semi-annual interest payment on Bond Series VI, due on 21 June 2025. While the bonds carry a sovereign guarantee, this non-funding signals a potential default, raising concerns over liquidity and financial stability.
The competition commission of India (CCI) approved Havells India's acquisition of a stake in Goldi Solar, along with Goldi Sun purchase of 100% partnership interest in Vama Inverters LLP and Goldi Energy LLP.
Minda Corporation entered in to a 60:40 JV with Japan’s Toyodenso to develop advanced automotive switches for two-wheelers (2W) and passenger cars in India. As part of this collaboration, a greenfield plant will be established in Noida, with operations expected to commence in second half of FY26–27. This venture strengthens Minda’s footprint in the automotive electronics segment, leveraging Toyodenso’s expertise in switch technology.
NTPC declared the commercial operation date for 193MW at plot-3 of its 245MW Nokh Solar PV Project in Rajasthan. With this addition, NTPC’s total group commercial capacity has reached 80,708MW, further strengthening its renewable energy portfolio.
NHPC commissioned the third phase of 53.57MW at its 300MW Karnisar solar project in Bikaner. With this latest addition, the project's total operational capacity now stands at 160.71MW, further advancing NHPC’s renewable energy portfolio.
Orders
Menon Bearings secured a major international order from Allison Transmission to supply 7.5mn thrust washers & bushings annually, valued at approximately US$3.73mn per year. This deal significantly boosts its export profile and global presence, reinforcing its position in precision automotive components.
PNC Infratech secured Rs240 crore flyover project order from public works department (PWD) Rajasthan for construction in Bharatpur city.
RailTel Corp secured two key contracts in the education sector—Rs16 crore order from the department of education and Rs243.1 crore order from the Bihar education project council for supplying student kits across government schools. These deals strengthen RailTel’s presence in digital and infrastructure support for education.
MTAR Technologies secured Rs19.2 crore in new orders, including Rs17.8 crore for clean energy and Rs1.4 crore in aerospace. Additionally, new product development is expected to generate Rs10 crore in recurring annual revenue, further strengthening its growth prospects in these sectors.
Waaree Energies subsidiary secured a 599MW solar module export order from a leading US utility-scale solar developer, with one-time supply scheduled for 2026.
SEPC Limited secured EPC contract worth Rs650 crore for a 133MW solar power project, significantly expanding its domestic order-book. This deal marks SEPC’s re-entry into the renewable energy sector, reinforcing its commitment to sustainable infrastructure development.
Sterlite Technologies and DilipBuildcon (-2.26%) secured a Rs2,631.14-crore contract from BSNL for the BharatNet project rollout across Jammu & Kashmir and Ladakh.
Investment/ Acquisitions/Merger / Stake Sale
Kaynes Technology approved an additional investment of up to US$1.03mn to acquire 10,19,802 equity shares of its wholly-owned subsidiary, Kaynes Holding Pte Limited. This strategic move is aimed at expanding its footprint in electronics system design and manufacturing, reinforcing its growth in the sector.
L&T Finance successfully acquired Paul Merchants Finance’s gold loan business for Rs1,350 crore, adding 130 branches and 700 employees to its network. This strategic move enhances L&T Finance’s portfolio of secured loan products while reinforcing its presence in the rural market.
OneSource Specialty Pharma will subscribe to equity shares of Xbrane Biopharma AB, a Nasdaq Stockholm-listed biopharmaceutical company. Xbrane plans to raise approximately SEK 240mn through a directed share issue, pending extraordinary general meeting (EGM) approval, with OneSource participating as a subscriber. This move signals a positive sentiment and strategic investment in the biotech space.
Allied Blenders & Distillers (ABD) acquired a 100% stake in Singapore-based UTO Asia Pte Limited in a Rs11-crore deal. Through this acquisition, ABD gains global rights to its flagship Mansion House and Savoy Club brands, excluding nine Asian countries. As a result, UTO Asia becomes a wholly-owned subsidiary of ABD, reinforcing its international presence in the liquor market.
Jubilant Pharmova’s board approved the sale and transfer of its API business to its wholly-owned subsidiary, Jubilant Biosys Limited, via a slump sale. The API segment recorded Rs609 crore turnover contributing 8.35% to the company’s consolidated revenue for FY24-25, signalling a strategic restructuring within the group.
Canara Bank's board has approved a capital raising plan of up to Rs9,500 crore via debt instruments for FY25-26. This includes Rs3,500 crore through Basel-III compliant Additional Tier-I Bonds, Rs6,000 crore via Tier-II Bonds, subject to market conditions and regulatory approvals. The move aims to strengthen the bank’s capital base and support growth initiatives, ensuring compliance with Basel-III norms.
Top gainers and losers of the major indices for the week are given in the table below:
