Sector-wise update for Friday, August 29, 2025

Equity Markets & Global

• Markets poised higher: After two consecutive down sessions, GIFT Nifty suggests a positive start, with futures up ~160 points, underpinned by optimism over GST reforms and potential import duty relief.
• Tariff-induced volatility persists: The Indian rupee is flat near ₹87.60–87.64/USD, buffered by potential RBI intervention; currency remains under pressure due to US tariffs and FPI outflows.
• Equity sentiment remains cautious: Markets continued their slide for a second day as escalating trade tensions with the U.S. cloud investor sentiment.

Economy & Domestic Markets
• Q1 GDP slows to 6.7%: Growth decelerated from 7.4% last quarter, dragged by weak urban demand and sluggish private capex. Despite this, RBI maintains a stable full-year forecast of ~6.5%.
• Record PMI expansion: Composite PMI rocketed to 65.2 in August—its highest since inception—driven by booming services demand and surging prices.
• RBI highlights resilience: July CPI dropped to an eight-year low of 1.55%, supported by favorable weather and rural demand; rates remain steady at 5.50%.
• Growth risks from tariffs: McKinsey warns that India’s path to 8% growth by 2040 is at risk without a U.S. trade deal; export-led growth remains critical.
• GST reforms to mitigate impact: New tax cuts and GST rationalization could buoy growth—though FY26 forecasts are slightly revised downward to 5.8–5.4%.
• Primary markets active: August saw a surge in IPO activity with 40 new listings, including the much-anticipated Tata Capital.

Regulatory & Strategic Landscape
• Shipping law modernized: The Merchant Shipping Act, 2025—overhauling decades-old maritime regulations—has been passed to enhance safety, environmental compliance, and ease of doing business.
• Online gaming regulated: The Promotion and Regulation of Online Gaming Act, 2025 was enacted, introducing licensing, consumer protections, and restrictions on real-money gaming.
• Tariff crisis escalating: The U.S.’s steep 50% tariffs are squeezing exports and jobs, affecting labor-intensive sectors and testing strategic ties. Impacts are projected to slow GDP and shift trade alliances.
• Exporters adapt: Over 50,000 small firms are pivoting to markets in Europe, Africa, and Asia to offset U.S. tariff challenges and minimize trade disruption.
• Geopolitical friction: The tariff war has escalated into a broader U.S.–India diplomatic standoff, raising concerns about strategic alignment and trade cooperation going forward.

Corporate News

• Indus Towers: Appointed Vineet Jain as Chief Supply Chain Management Officer, effective Sept. 3.

• Muthoot Finance: Allotted 3.25 lakh shares to subsidiary Muthoot Money, valuing the transaction at nearly ₹500 crore.

• Shukra Pharma: Received a ₹24 crore order to supply medicines and diagnostic kits to Afghanistan.

• NTPC: Approved the partial transfer of its coal mining business to a subsidiary. Also cleared the revised cost estimate-I of the Rammam-III HEPP project at ₹2,865.6 crore.

• GE Power India: Filed for an injunction against Jaiprakash Power Ventures over invocation of bank guarantees worth ₹77.5 crore. The Delhi High Court initially granted relief in Aug 2025, later allowing GE Power to deposit equivalent funds with Jaiprakash Power. GE Power is evaluating further legal steps.

• Omaxe: Approved the issuance of non-convertible debentures (NCDs) worth ₹19 crore on a private placement basis.

• Afcons Infrastructure: Shapoorji Pallonji Mistry resigned as Chairman and Non-Executive Non-Independent Director; he has been designated Chairman Emeritus (honorary, non-board position).

• CG Power & Industrial Solutions: Subsidiary CG Semi Pvt. Ltd. launched India’s first outsourced semiconductor assembly and test (OSAT) facility at Sanand.

• AGI Infra: Acquired a 60% stake in World’s Next Realty LLP for ₹30 crore.

• ICICI Bank: Accepted the early retirement of Group Chief Compliance Officer Subir Saha. Appointed Anish Madhavan as his successor.

• Belrise Industries: Incorporated a new arm Belrise Defence & Aerospace.

• Mufin Green Finance: Approved issuance of NCDs worth ₹50 crore via private placement.

• Jain Irrigation: Board meeting scheduled on Sept. 2 to consider fundraising plans.

• Mahindra Lifespace Developers: Appointed Parijat Dey as Chief Technology Officer, effective Sept. 1.

• Allcargo Logistics: Reported LCL volumes down 5% YoY at 774 cubic meters in July.

• Sammaan Capital: Raised $300 million through allotment of senior secured social bonds.

• Kitex Garments: Subsidiary Kitex Apparel Parks Ltd. commenced commercial production at its Warangal unit.

• Himatsingka Seide: Board to meet on Sept. 2 to consider fundraising.

• Hexaware Technologies: Announced a strategic partnership with Replit, a global leader in agentic software creation, to transform enterprise software development via secure, governed Vibe Coding.

• Lemon Tree Hotels: Signed a license agreement for a new property — Lemon Tree Hotel, Mohkampur (Dehradun), to be managed by subsidiary Carnation Hotels.