A complex and volatile geopolitical landscape is reshaping global trade and investment flows, with India at the nexus of several key shifts. A significant pullback by foreign funds from India in July underscores this volatility, as foreign funds have cut their exposure to the Indian market, re-allocating capital to North Asian and other emerging markets. India is now the most underweight market in global emerging market (EM) portfolios. This shift is likely driven by valuation concerns, profit-taking and a tactical rotation into other markets. The sell-off has been exacerbated by escalating trade frictions between US and India and a weakening rupee. The US has imposed new tariffs of up to 50% on Indian imports, with an estimated US$48.2bn (billion) of goods affected. These tariffs, which are the highest among affected countries, are partly in retaliation for India's continued large-scale purchases of Russian crude oil. In fact, the U.S. has imposed a 25% penalty on Indian imports of Russian oil, a move that New Delhi has called unjustified. Indian refiners have responded by delaying September-loading orders for Russian crude, creating a two-month visibility gap in supply chains. This has allowed China and Turkey to increase their purchases of discounted Russian crude which, analysts note, remains competitive against West Asian grades.
Amid this strained relationship with US, India is exploring new trade alliances. India and the Russian-led Eurasian Economic Union (EAEU) have agreed to begin negotiations on a free-trade agreement. This move comes as India's relations with US have frayed due to new American tariffs. Additionally, New Delhi is reconsidering rejoining the regional comprehensive economic partnership (RCEP), the world’s largest free-trade bloc, after withdrawing from it in 2019. Meanwhile, relations with China are showing signs of a modest thaw, with Beijing easing export restrictions on rare earth minerals, fertilisers and tunnel-boring machines. This follows a meeting between the foreign ministers of both countries where they pledged to steady bilateral ties and ease trade frictions. Chinese ambassador Xu Feihong also criticised Washington’s new tariffs on Indian goods as ‘unconstructive’. Despite this, a Chinese subsidiary of Foxconn has recalled approximately 300 Chinese engineers from its Indian operations, highlighting how geopolitical tensions are still complicating supply-chain localisation efforts.
The Indian government is advancing a significant overhaul of the goods and services tax (GST) as part of a broader policy agenda aimed at long-term structural deepening. The proposed ‘GST 2.0’ will simplify the current four-rate structure into a two-rate system of 5% and 18%, while retaining a 40% levy on ‘sin goods’. S&P Global Ratings believes that this reform could strengthen the long-term revenue base and lift annual consumption by Rs1.98 lakh crore, but it may also lead to an average yearly revenue loss of Rs85,000 crore.
This reform is expected to have a significant ripple effect across multiple sectors. Consumer durable makers, for instance, anticipate a demand lift, if the GST on large air-conditioners and television panels is reduced from 28% to 18%, a change that could trim retail prices by about 10%. Similarly, the e-commerce sector is preparing for a windfall from the proposed GST rate cuts ahead of the festive season. Platforms like Flipkart and Amazon are preparing for a sales surge, with the first festive sale expected to generate 40%–50% of seasonal revenue.
India's real economy is showing resilience, with strong domestic demand acting as a cushion against external pressures. India dominated office leasing in the Asia-Pacific (APAC) region in the H1FY25-26, accounting for 70% of the total 48.4mnsqft (million square feet) leased, with domestic corporates driving 46% of the activity. This highlights commercial real estate as a structural growth-driver underpinned by key sectors like IT and manufacturing.
India’s core industries grew by only 2% year-on-year (y-o-y) in July, a slowdown from the previous year, as coal output fell 12.3% and refinery production dropped 1.0%, according to provisional government data. Natural gas output plunged 32%, while crude oil slipped 1.3%. Gains in steel (up 12.8%) and cement (up 11.7%) provided some offset, alongside modest growth in fertilisers and electricity. This underscores the drag from energy sector bottlenecks on industrial activity. Additionally, the country's debt:GDP (gross domestic product) ratio has eased to 57% by March 2024, but the cost of servicing that debt is rising, consuming 35.72% of revenue receipts in 2023-24.
The narrowing cost gap between bank borrowing and bond markets is leading Indian corporates to shift back toward traditional bank loans. The spread between the State Bank of India's (SBI’s) one-year marginal cost of funds-based lending rate (MCLR) and AAA-rated corporate bond yields has contracted to about 150bps (basis points), making bank loans more cost-competitive. The renewed appetite for smaller-cap listings is intact, as seen with 14 small and medium-sized enterprise (SME) initial public offerings (IPOs) in August raising Rs2,000 crore, a reversal of a three-month slowdown. Additionally, Indian bond spreads have tightened, and borrowing costs have fallen, aided by robust economic growth and a sovereign rating upgrade to 'BBB' by S&P.
The trends of the major indices in the course of the week's trading are given in the table below:
News
Auto stocks gained on Monday on reports of potential GST reduction for small cars and two-wheelers (2Ws); Maruti Suzuki, with significant exposure to the 28% slab, saw gains on hopes of a shift to 18% which could reduce prices by up to 8% and boost volumes. Cement players such as UltraTech and Ambuja Cements also moved higher, anticipating a reduction from the current 28% GST to 18%. Consumer durables, like Voltas, IFB industries and Havells and their component suppliers and contract manufacturers like Amber Enterprises India and PG Electroplast responded positively to reports of GST rationalisation. A potential 10% tax cut could help clear inventory and revive festive-season demand. Insurance stocks like ICICI Prudential and HDFC Life were in focus as industry leaders flagged concerns over the proposed GST cut on life and health policies. Without input tax credit (ITC), insurers warn the move could raise operational costs, leading to higher premiums and dampened demand.
Marksans Pharma’s UK subsidiary, Relonchem Limited, secured marketing authorisation from the UK MHRA for three prolonged-release formulations of Metformin Hydrochloride—500mg, 750mg and 1,000mg.
Kwality Pharmaceuticals received regulatory approval to market Bleomycin 15IU in Mexico, a key oncology drug used in treating Hodgkin’s lymphoma, testicular cancer and squamous cell carcinomas. The registration enables immediate sales and distribution, marking a strategic milestone in the company’s expansion into regulated global markets. The management projects a first-year business potential of approximately US$1mn (million), with supplies expected to commence before the end of Q2FY25-26.
JSW Steel and South Korea’s POSCO group signed a non-binding heads of agreement (HoA) to jointly explore setting up a 6MTPA (metric tonnes per annum) integrated steel plant in India, marking a strategic step forward in Indo-Korean industrial collaboration.
Bikaji Foods International reported a fire at its contract manufacturing unit, Dadiji Snacks Pvt Ltd (DSPL), in Patna (Bihar). The fire was swiftly contained with no casualties or injuries and authorities were promptly notified. DSPL has adequate insurance coverage and Bikaji expects minimal business disruption, with demand to be met from nearby facilities.
Ather Energy rolled out three strategic initiatives—battery-as-a-service (BaaS), an expanded assured buyback programme, and an extended comprehensive warranty (ECW)—to lower entry-barriers for electric scooter buyers in India. Under the BaaS model, customers can purchase the Ather Rizta at Rs75,999 and the 450 series at Rs84,341 (ex-showroom, Lucknow), excluding battery cost which is covered via a monthly subscription starting at Rs1/km.
Engineers India signed a memorandum of understanding (MoU) with Nuclear Power Corporation of India Ltd (NPCIL) to support the conceptual design and engineering of the Bharat Small Modular Reactor (BSMR), a key initiative under India’s Nuclear Energy Mission for Viksit Bharat. The agreement, inked on August 12 at NPCIL’s Mumbai headquarters, aligns with the government’s target of achieving 100GW (gigawatt) nuclear capacity by 2047, and focuses on developing critical systems, structures, and components for the indigenous BSMR platform.
Alembic Pharmaceuticals received final US food and drug administration (US FDA) approval for its Macitentan tablets, 10mg, a generic equivalent of Actelion’s Opsumit. The drug is indicated for pulmonary arterial hypertension (PAH) in adults, targeting reduction in disease progression and hospitalisation risk. The product addresses a US market estimated at US$1.18bnbillion for the 12 months ending June 2025, per IQVIA data.
Glenmark Pharmaceuticals Inc, USA will launch Micafungin for Injection USP (50mg/vial and 100mg/vial) in September 2025. The product is bioequivalent to Mycamine® by Astellas Pharma. The Mycamine® market generated around US$60.7mn in annual US sales for the 12 months ending June 2025, per IQVIA data.
VA Tech Wabag secured a repeat operation and management (O&M) contract worth around Rs118 crore (5.12mn Bahraini Dinars) from Bahrain’s ministry of works for the 40MLD (megalitres) Madinat Salman sewage treatment plant and long sea outfall. The five-year agreement reinforces Wabag’s annuity-based order-book and extends its operational footprint in the Global capability centre(GCC) region, supporting long-term revenue visibility and service continuity.
Inox Wind divested Rs175 crore worth of equity in its subsidiary Inox Renewable Solutions (IRSL), reducing its stake from 91.90% to 88.84%. The transaction values IRSL at around Rs7,400 crore. In FY24-25, IRSL contributed Rs217.98 crore in revenue (6% of consolidated) and held a net worth of Rs935 crore (14% of group net worth), highlighting its strategic role in IWL’s (Inox Wind) wind engineering-procurement-construction (EPC) operations.
SRM Contractors expanded its project portfolio with fresh construction orders worth Rs174 crore, secured in the ordinary course of business. This reinforces its execution capabilities and client confidence in India’s infrastructure growth cycle. Further details on project scope and timelines remain undisclosed.
Aurobindo Pharma clarified that no binding agreement or board-level decision has been made regarding the rumoured US$5.5bn acquisition of Zentiva. While the company regularly evaluates strategic opportunities, the Zentiva deal remains speculative at this stage. The clarification was filed under Regulation 30 Of the Securities and Exchange Board of India ( SEBI).
Natco Pharma, in partnership with Lupin, launched Bosentan TFOS 32mg in the US—a generic version of Tracleer® for paediatric pulmonary arterial hypertension. With first-to-file status, NATCO secures 180 days of market exclusivity. The drug targets reduced pulmonary vascular resistance to improve exercise capacity in children aged three and above.
Dr Lal PathLabs introduced India’s first deep learning-based artificial intelligence (AI) tool—QiAI Lymph Node Dx—for detecting lymph node metastasis, including micro-metastasis, in cancer patients. Developed with Qritive and showcased at USCAP 2025, the system enhances diagnostic speed and precision, potentially transforming early-stage cancer treatment planning. This marks a pivotal leap in AI-driven pathology for India’s healthcare ecosystem.
Insolation Energy’s subsidiary, Insolation Green Energy, started commercial operations at its new 3GW solar module plant in Sawarda (Jaipur)—boosting the group’s total capacity to 4GW.
PG Electroplast entered the fin-tech hardware space through a strategic manufacturing tie-up with PAX India, a unit of Hong Kong-listed PAX Global. Under the agreement, PG will produce PAX-branded Point of sale devices at its Indian facilities, with rollout slated by year-end. The move diversifies its portfolio into digital infrastructure solutions.
Lupin, in alliance with Natco Pharma, launched Bosentan tablets for oral suspension (32mg) in the US, targeting paediatric pulmonary arterial hypertension. Backed by first-to-file status, the launch secures 180-day generic exclusivity in a niche US$10mn market. The drug is bioequivalent to Tracleer® and aims to improve pulmonary vascular resistance and exercise capacity in children aged three and above.
Infosys Finacle achieved a key milestone with Australia’s Uniting Financial Services (UFS) going live on its Digital Banking SaaS ( software-as-a-service) suite hosted on Amazon Web services (AWS) Cloud. The full migration was completed in under five months, enabled by Finacle’s Australian Reference Bank Model.
The Chemours Company entered strategic agreements with India’s SRF Limited (-0.18%) to bolster its global supply chain and secure capacity for fluoropolymers and fluoro-elastomers. These materials are vital for high-performance applications across semiconductors, aerospace, automotive and chemical processing.
Wipro signed a definitive agreement to acquire the Digital Transformation Solutions (DTS) unit of Samsung-owned HARMAN for up to US$ 375mn, including earn outs. The deal, expected to close by 31 December 2025 pending regulatory clearances, will see Wipro take full ownership of Harman Connected Services, its subsidiaries and certain assets.
NTPC Green Energy commissioned 49.125MW in the third phase of its Khavda solar project. This follows earlier phases of 142.2MW and 32.8MW commissioned in June. The project is part of the 450MW hybrid tranche-5 rollout in Gujarat.
Intellect Design Arena UK approved an MoU to form a joint venture (JV) with UK-based ITIXA Limited, targeting AI-enabled business support services. The JV will be established in GIFT City (Gujarat), with a 50.1% stake held by Intellect and 49.9% by ITIXA, ensuring equal board representation.
IndusInd Bank signed a strategic MoU with NSIC to boost credit access for over 67mn Udyam-registered micro, small and medium enterprises (MSMEs) across India. The partnership will offer tailored financial solutions including working capital, term loans and structured credit facilities. This move aligns with the MSME Credit Facilitation Program, supporting formal financial inclusion and last-mile outreach.
Tata Tele Business Services introduced ‘Mira’, its new brand mascot aimed at guiding small and medium enterprises (SMEs) through digital transformation. Mira is positioned as a smart, approachable persona who simplifies cloud and connectivity solutions for growing businesses.
Orders
HAL received Cabinet Committee on Security (CCS) approval for the procurement of 97 Tejas Mk-1A fighter jets, valued at Rs62,000 crore, marking one of India’s largest defence orders. The jets will replace ageing MiG-21s and bolster the Indian Air Force’s combat strength under the AatmaNirbhar Bharat and ‘Make in India’ initiatives. Deliveries are expected to begin in FY25-26, with six jets slated for rollout following resolution of earlier engine supply delays.
Transrail Lighting bagged Rs837 crore worth of new orders—one domestic EPC and one international product supply—boosting its FY25-26 order inflows past Rs3,157 crore. This marks 57% y-o-y surge, underscoring strong execution momentum across its transmission & distribution (T&D), civil and lighting verticals.
Jupiter Wagons unlisted arm, Jupiter Tatravagonka Railwheel Factory, received a letter of intent (LoI) to supply 5,376 wheel-sets for the Vande Bharat Express. The Rs215 crore order marks a strategic win in India’s rail modernisation push. Execution timelines and margin details remain undisclosed.
Reliance Infrastructure received a letter of award (LoA) from NHPC for a 390MW ISTS-connected solar power project integrated with 780MWh (megawatt-hour) BESS. The project was awarded at a tariff of Rs3.13/kWh (kilowatt-hour). On commissioning, it will add 700MWp (megawatt peak) of solar DC and 780MWh of BESS capacity to the Reliance group’s portfolio, reinforcing its leadership in integrated clean energy solutions
Oswal Pumps secured a Rs442-crore contract from MSEDCL under the PM Kusum B Scheme (Magel Tyala Saur Krushi Pump Yojana) for the supply and installation of 14,787 off-grid DC solar water pumping systems across Maharashtra. The project spans 3HP (horsepower), 5HP and 7.5HP capacities and includes full system warranty, five-year maintenance and remote monitoring. Installations must be completed within 60 days of work order issuance.
Dilip Buildcon through its JV with Ranjit Buildcon (DBL-RBL JV), has secured a Rs1,503.63 crore metro infrastructure contract from Gurugram Metro Rail Limited (GMRL). Its consortium has also emerged as the L-1 bidder for a Rs2,952 crore water infrastructure project from Rajasthan Water Grid Corporation. Awarded under the hybrid annuity model (HAM), the contract includes 27-month execution and 20-year O&M responsibilities.
GR Infraprojects been declared L-1 bidder for Rs367 crore transmission project to evacuate 2,500MW of renewable energy from Rajgarh and Neemuch SEZs in Madhya Pradesh.
Lloyds Metals & Energy secured the Tandsi-III and Tandsi-III extension coking coal mines with a 10.5% premium bid. The mines span 338 hectares near the MP–Maharashtra border, around 400km from Ghugus and hold 23MMT (million metric tonnes) of coking coal reserves.
Sarda Energy & Minerals was declared the successful bidder for the Senduri Coal Mine in Shahdol and Umaria districts (Madhya Pradesh), under a 9.50% revenue-sharing agreement with the state government.
PTC Industries secured a Rs100+ crore order from BrahMos Aerospace for titanium castings used in the supersonic cruise missile programme.
Investment/ Acquisition / Stake Stale
IndiGrid signed a definitive agreement to acquire the NERES XVI Power Transmission project from TEECL for up to Rs460 crore. Located in Northeast India, the asset includes a 1,400MVA (megavolt-amperes) substation and 45km of transmission lines, with commissioning targeted for December 2026. Post-commissioning, the project is expected to generate around Rs49 crore in annual tariff revenues, enhancing IndiGrid’s stable cash-flow profile.
KPIT Technologies finalised the acquisition of Caresoft at a revised deal value of up to US$157mn, down from the originally announced US$191mn due to macroeconomic adjustments. The transaction includes Caresoft entities in the US, UK, Mexico and Italy, with US$15mn of the total tied to performance-linked milestones to facilitate the acquisition, KPIT infused EUR28mn and US$28mn into its UK and US arms, respectively, and paid an initial US$51mn for full ownership.
Goldiam International raised Rs202 crore via qualified institutional placement (QIP) to accelerate ORIGEM’s expansion, its consumer-facing lab-grown diamond brand. The funds will support the rollout of 70–90 stores across India in 18–24 months, building on six stores already launched. This marks India’s largest LGD retail funding round, nearly double that of its closest venture capital (VC)-backed peers.
Top gainers and losers of the major indices for the week are given in the table below:
