Indian equity indices closed strong on Friday, with the NIFTY climbing above 22,800. The Sensex surged 1,310.11 points (1.77%) to finish at 75,157.26, while the NIFTY jumped 429.40 points (1.92%) to end at 22,828.55. Global markets had rebounded in Thursday after US president Donald Trump announced a 90-day pause on his recently declared ‘reciprocal tariffs’ against most nations. The decision came just days after his initial announcement triggered massive global market declines that wiped trillions from stock values and sparked fears of a worldwide recession. The policy reversal sparked dramatic recoveries across global markets. The Indian market was closed on Thursday on account of Mahavir Jayanti.
President Trump's original ‘Liberation Day’ announcement included a blanket 10% tariff on all imports (which remains in place, despite the pause) and additional country-specific tariffs, including 54% on China, 36% on Vietnam, 26% on India and 10% on the European Union (EU). The pause applies only to these additional ‘reciprocal’ tariffs targeting countries with large trade surpluses against the US, while the 10% blanket tariff and previous 25% duties on sectors like automobiles remain in effect. While stepping back from a full-scale global trade war, president Trump simultaneously escalated tensions with Beijing by raising tariffs on Chinese imports from 104% to an unprecedented 125%. This followed China's retaliatory move to increase duties on American goods to 84%. On Friday, China further escalated tariff on US goods to 125% from 84% intensifying the trade war between the world’s two largest economies.
The US-China trade relationship has seen structural changes in recent years;America's trade deficit with China decreased from US$418.2bn (billion) in 2018 to US$295.4bn in 2024. China's share of the total US trade deficit fell from 48.1% to 24.6% during the same period, as many US companies have diversified supply chains away from China and China has started to diversify its exports around the world.
The original tariff announcement triggered immediate economic concerns, with Goldman Sachs increasing the probability of a near-term US recession from 20% to 35%. Oil prices dropped nearly 15% in just five trading sessions, with Brent crude falling to around US$63/barrel. Economists warned of increased inflation and higher costs for American consumers, with the automotive industry facing particular disruption and potential price increases of 11%-12%. The tariff announcement triggered strong international reactions. China announced retaliatory tariffs, imposed export controls on rare earth minerals and launched legal action at the WTO (World Trade Organization). The EU prepared countermeasures through its anti-coercion instrument, while Germany's economy minister dubbed it ‘Inflation Day’ for US consumers. Canada announced retaliatory tariffs targeting US$8bn in US goods.
India ranks 10th with a 2.68% share of US total imports in 2024. Its pharmaceuticals exports to the US remain strong and unaffected by new trade barriers. Indian officials are exploring a bilateral trade agreement with the US and some experts suggest India might gain an edge over China, Vietnam and Bangladesh in textiles following Mr Trump's tariffs. Energy has also emerged as a significant sector in US-India trade relations.
News
Biocon Biologics received approval from the US Food and Drug Administration (FDA) to market Jobevne (bevacizumab-nwgd), a bio-similar of Avastin, for intravenous treatment of multiple cancer types. Jobevne, a recombinant humanised monoclonal antibody and vascular endothelial growth factor (VEGF ) inhibitor, is Biocon's seventh bio-similar to gain approval in the US, bolstering its oncology offerings. The drug is already marketed in Europe and Canada under the brand name Abeymy.
Bharti Hexacom, a subsidiary of Bharti Airtel, has reportedly paused its Rs1,134 crore (US$136mn—million) agreement to sell 3,400 telecom towers to Indus Towers. This decision follows an intervention by Telecommunications Consultants India Ltd (TCIL), a State-owned entity that holds a 15% stake in Bharti Hexacom. The reasons for TCIL's intervention and the future of the tower sale remain unclear. This development introduces uncertainty into the ongoing consolidation within India's telecom infrastructure sector.
Cipla received final approval from the US FDA for its abbreviated new drug application (ANDA) for Paclitaxel. Paclitaxel is a generic version of Abraxane, a chemotherapy drug manufactured by Bristol Myers Squibb. This approval will allow Cipla to market its generic version in the US, a key market for pharmaceuticals products.
Pine Labs, a digital payments firm, received approval from India's national company law tribunal (NCLT) to reverse flip its holding structure, moving its domicile from Singapore back to India. This makes Pine Labs the second major fin-tech company after Groww to undertake such a reverse flipping. The company will now seek necessary regulatory approvals in Singapore to complete the merger and intends to list on Indian stock exchanges within the first half of this year, despite having previously considered an initial public offer (IPO) in US.
Sun Pharmaceutical Industries overcame a legal hurdle this week, paving the way for the US launch of its alopecia treatment, Leqselvi. The US court of appeals for the federal circuit vacated a preliminary injunction that had blocked the drug's introduction following a patent infringement claim by Incyte, a rival pharmaceutical firm. While litigation between the two companies continues, the appellate court's decision allows Sun Pharma to proceed with its launch plans for Leqselvi which received US FDA approval in July 2024 for severe alopecia areata. The company will disclose its launch timeline at a later date.
The Reserve Bank of India (RBI) reduced the key lending rate, or repo rate, by 25bps (basis points), bringing it down to 6%. After a detailed assessment of the evolving macroeconomic and financial conditions and outlook, the monetary policy committee (MPC) voted unanimously to reduce the policy repo rate by 25bps to 6% with immediate effect, said Sanjay Malhotra, governor of RBI. This is the second rate cut in a row, following a 25bps reduction in February.
Indian Railways formulated a new public-private partnership (PPP) policy to attract Rs30,000 crore in private investment for 50 identified projects. This revised framework aims to simplify processes, reduce litigation risks and ensure a reasonable rate of return for investors in railway infrastructure, including freight terminals, mineral corridors,and port connectivity projects.
Jindal Power will acquire a 1,320MW (megawatt) thermal power plant in Haryana from financially troubled Apraava Energy for Rs4,000 crore. The Czech Republic's Seven Global Investments is also reportedly interested. This potential deal comes as Apraava Energy, backed by CLP Group and Caisse de dépôt et placement du Québec (CDPQ). The Jharli power plant, operational since 2012, supplies 90% of its output to Haryana's grid. Jindal Power, already a major player, aims to expand its capacity. Seven Global's interest highlights growing foreign investment in India's energy sector.
India's credit card usage has surged in recent years, fuelled by increased consumer spending and digital payments. However, this growth is accompanied by a concerning rise in defaults. Non-performing assets (NPAs) in the credit card segment jumped 28.4% to Rs6,742 crore in the year ending December 2024, according to RBI data.
Despite efforts by banks to reduce overall NPAs, credit card defaults have increased significantly. This trend suggests a potential debt trap for consumers and raises concerns about the sustainability of the credit card boom. RBI has also increased risk weights on credit card loans to mitigate potential losses for lenders.
Garden Reach Shipbuilders & Engineers (GRSE) signed a memorandum of understanding (MoU) with SWAN Defence and Heavy Industries, to boost indigenous commercial shipbuilding capabilities. This MoU represents a significant step towards strengthening domestic expertise in the commercial shipbuilding sector and aligns with the national vision of ‘AatmaNirbhar Bharat’ in the maritime sector.
IL&FS Engineering and Construction Company reported a total default of Rs2,628.15 crore on payments of loans from banks, financial institutions as on 31 March 2025. The company's total financial indebtedness including short-term and long-term borrowings stood at Rs3,097 crore.
Coffee Day Enterprises reported a total default of Rs425.38 crore on payments of interest and repayment of principal amount on loans from banks, financial institutions and unlisted debt securities as non-convertible debentures (NCDs) and non-convertible preference shares (NCRPS ). The company is paring its debts through asset resolution and the delay in debt servicing is due to liquidity crisis.
Bharat Electronics (BEL) signed a contract with ministry of defence valued at Rs2,210 crore for supply of EW suite for Mi 17 V5 helicopters of Indian Air Force. These systems are indigenously designed and developed by CASDIC, DRDO and manufactured by the company. The EW suite comprises radar warning receiver (RWR), missile approach warning system (MAWS) and counter measure dispensing system (CMDS) which significantly enhance the combat survivability of the helicopters along with effective counter measures.
British luxury car-maker Jaguar Land Rover (JLR) temporarily paused shipments to the US, its top market. The company, which exports all its US-bound vehicles and has no American production facilities, cited uncertainty surrounding potential new tariffs on imported cars. The US is a crucial market for JLR, accounting for £6.4bn (US$8bn) worth of vehicle shipments in 2023, roughly a tenth of Britain's total car exports. Other European car-makers with limited US production may face similar challenges navigating potential trade policy shifts.
Vedanta will explore a revised plan for a four-way demerger of its businesses, a shift from its earlier proposed six-way split. This comes after NCLT rejected the initial plan due to objections from a Chinese firm, SEPCO, a creditor to Vedanta's power business, Talwandi Sabo Power (TSPL). NCLT cited concerns about insufficient creditor disclosures regarding the demerger. Vedanta is now considering appealing the decision.
Indian Oil Corporation (IOC), (+0.42%) will invest over Rs61,000 crore in establishing a major petrochemicals complex in Odisha. This investment aims to meet the increasing domestic demand for petrochemicals in the rapidly growing Indian economy. IOC signed an MoU with the Odisha state government for this project. Separately, IOC, along with Petronet LNG, will invest Rs6,500 crore to set up an LNG (liquefied natural gas) import terminal at Gopalpur Port, also in Odisha. These investments highlight the growing energy infrastructure in the region.
According to data shared by the Pharmaceuticals Export Promotion Council of India (Pharmexcil), US remained the largest market for India’s pharmaceutical exports during April–February 2024–25, accounting for a significant 36.6% share, or US$9.8bn. Remarkably, the US market grew by 14%, despite its already substantial base. However, with the US administration expected to introduce tariffs on pharmaceuticals imports, Indian exporters are actively seeking alternative markets to reduce reliance on the US and mitigate potential challenges.
Infosys extended its partnership with Allied Irish Banks (AIB) to further support the Bank's digital transformation initiatives. The collaboration will focus on developing and enhancing AIB's application landscape.
Indian government notified the amalgamation of various regional rural banks (RRBs) within several states into single, larger RRBs. This consolidation aims to improve operational efficiency, enhance financial stability and provide better customer service by creating stronger regional banking entities. The mergers are expected to streamline management and expand the reach of rural banking services across the concerned states.
Orders
Tata Steel received an income-tax notice regarding a Rs25,185.5 crore income waiver related to its 2018 acquisition of Bhushan Steel (later renamed Tata Steel BSL).
The Indian government increased the excise duty on petrol and diesel by Rs2 per litre each, effective immediately. This move aims to offset the revenue losses incurred by oil marketing companies (OMCs) due to their decision to keep fuel prices unchanged for an extended period, despite declining crude oil prices.
Investment/ Acquisition / Stake Stale
Delhivery, an Indian logistics company, acquired rival Ecom Express for Rs1,407 crore in a significant consolidation move. This ‘distress sale’ comes after Ecom Express, once a close competitor to Delhivery, faced financial difficulties and cancelled its planned listing. Delhivery will hold a 99.4% stake in Ecom Express, aiming to enhance its scale and competitiveness in the e-commerce logistics sector. The acquisition comes amidst challenging times for the industry, with Ecom Express' valuation plummeting from over Rs7,000 crore last year. Private equity investors, including Warburg Pincus, will exit their investments as part of the deal.
Top gainers and losers of the major indices for the week are given in the table below:
