July 27, 2025

THE CLIFF NEWS

National Daily Bilingual Newspaper

Category: Stock Market

India’s Private Sector Growth Hits 8-Month High in April Amid Export Surge, But Business Confidence Softens

India’s private sector kicked off the new fiscal year on a high note, with growth in April reaching an eight-month peak driven by strong demand and a remarkable surge in foreign orders for manufactured goods. However, despite this robust start, business confidence showed signs of moderation, reflecting global uncertainties and trade tensions. According to the HSBC Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, the index rose to 60.0 in April from 59.5 in March — the highest reading since August. A score above 50 indicates expansion, signaling healthy momentum in both manufacturing and services sectors. The manufacturing PMI climbed to 58.4 from 58.1, marking the strongest performance in a year. Meanwhile, the services PMI increased to 59.1 from 58.5, a four-month high, reflecting higher new business and improved output. A key factor behind the upbeat numbers was a sharp rise in new export orders, especially in manufacturing, which recorded its most substantial increase in over 15 years. This export boost is largely attributed to a 90-day pause in tariff implementations by US President Donald Trump, following his April 2 announcement of sweeping tariffs targeting multiple countries. “New export orders accelerated sharply, likely buoyed by the 90-day pause in the implementation of tariffs,” said Pranjul Bhandari, chief India economist at HSBC. She noted that India is increasingly positioning itself as a global manufacturing alternative to China, which remains affected by high US duties. The uptrend in foreign demand spurred not only output but also hiring. Employment rose across sectors, with manufacturers registering the highest job creation since the survey began in 2005. This hiring surge was in response to growing capacity pressures. Cost trends presented a mixed picture: input price inflation quickened in manufacturing but eased in services compared to March. Nonetheless, strong demand enabled firms to pass higher costs to customers, resulting in a more pronounced increase in selling prices, particularly in manufacturing. While the current data paints a picture of a strong economic rebound, analysts caution that softening business sentiment and external uncertainties — such as global trade policies — could pose challenges to sustaining this momentum in the months ahead.

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Editor03 mins

RBI Eases Liquidity Coverage Ratio Norms: Major Relief for Banks, Boost to Credit Growth

In a significant move to strengthen the liquidity resilience of Indian banks without stifling their credit potential, the Reserve Bank of India (RBI) has released its final guidelines on Liquidity Coverage Ratio (LCR), bringing notable relaxations. The new framework, effective from April 1, 2026, is expected to free up a substantial amount of capital and support credit expansion. 🔑 Key Changes in LCR Norms 🧾 What is LCR and Why It Matters? LCR mandates banks to maintain a sufficient stock of High-Quality Liquid Assets (HQLA), like government securities, to survive a hypothetical 30-day liquidity crisis. The intent is to safeguard against unexpected deposit withdrawals, such as what led to the Silicon Valley Bank collapse in the US. 📉 Why This Move Matters for Banks 🧠 RBI’s View “These measures will enhance the liquidity resilience of banks in India and further align the guidelines with global standards in a non-disruptive manner,”— RBI statement.

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Editor03 mins

US to Push India for Greater Ecommerce Access in Trade Talks

The Trump administration is set to press India to grant full access to its $125 billion ecommerce market to US giants such as Amazon and Walmart, as part of an evolving trade agreement currently under negotiation. The deal, which spans a range of sectors from food to automobiles, is being discussed under the looming threat of a 26 per cent tariff on Indian exports to the United States. President Donald Trump has temporarily paused this tariff for 90 days to allow negotiations to proceed. During a recent meeting in New Delhi, US Vice-President JD Vance and Indian Prime Minister Narendra Modi acknowledged “significant progress” in the trade discussions. They also reiterated their commitment to strengthening cooperation in energy, defence, and strategic technologies. According to multiple sources, including industry executives, lobbyists, and US officials, Washington is urging New Delhi to provide a level playing field for foreign ecommerce players. Currently, India restricts US companies like Amazon and Walmart-owned Flipkart from selling their own inventory directly to consumers. Instead, they can only act as online marketplaces for third-party sellers, unlike Indian firms that can produce, own, and sell their own goods via their platforms. This distinction has been labelled a “non-tariff barrier” by US negotiators, alongside restrictions on foreign direct investment in retail. Tensions have grown as US companies have faced additional hurdles such as increased product inspections by the Bureau of Indian Standards, further complicating their operations in India. Executives close to the discussions revealed that Walmart CEO Doug McMillon raised the issue of India’s ecommerce barriers during a private meeting with Trump at his Mar-a-Lago estate. McMillon was also present at a White House meeting with other major US retail leaders to discuss trade and tariffs. Amazon CEO Jeff Bezos, who attended and contributed to Trump’s presidential inauguration, is similarly involved in the background efforts. The US push is seen as a direct challenge to Mukesh Ambani, Asia’s richest man and the owner of India’s largest retail group, Reliance Industries. His conglomerate operates multiple ecommerce platforms and stands to lose if foreign players are granted equal access to the Indian market. Experts such as Arvind Singhal, chairman of Technopak Advisors, note that US efforts to liberalize India’s retail sector have been ongoing since 2006, but have been effectively resisted by Indian policymakers. Now, with trade talks gaining momentum, US officials are reportedly working in close coordination with ecommerce platforms to influence the outcome. As of now, the White House, Amazon, Walmart, and Reliance have declined to comment on the matter.

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Editor04 mins

Banking Stocks Lead Market Resurgence as Nifty Bank Hits Record High

HDFC Bank and ICICI Bank Rally on Strong Q4 Results, Policy Tailwinds Fuel Sector Optimism Nifty Bank Soars Past 55,000 Milestone In a remarkable turn of events for the Indian markets, the Nifty Bank index surged past the 55,000 mark for the first time ever on Monday, marking a powerful breakout amid easing global and domestic headwinds. This rally was spearheaded by stellar Q4 earnings from private sector heavyweights HDFC Bank and ICICI Bank, injecting renewed optimism into a market still navigating post-tariff volatility. HDFC Bank climbed nearly 2% to touch a 52-week high of ₹1,950.70, while ICICI Bank followed closely with a 1% gain, reaching a lifetime high of ₹1,436.00. Brokerages responded swiftly, reaffirming bullish outlooks on financials as earnings exceeded expectations. Nomura Stays Bullish on Financials Japanese brokerage Nomura highlighted the sector’s appeal, citing low earnings risk, attractive valuations, and an increasingly accommodative monetary policy. With the RBI having already cut policy rates by 50 basis points in 2025—and another 100 bps anticipated by year-end—the environment is primed for credit expansion. Furthermore, RBI’s liquidity-boosting tools—including OMO purchases, VRR operations, and forex swap auctions—have helped swing banking system liquidity into surplus. In tandem, a reduction in risk weights for NBFCs and microfinance institutions has spurred credit supply, laying a strong foundation for sectoral growth. Liquidity and Lending Outlook Brightens According to Nomura, system liquidity conditions are expected to improve further, paving the way for stronger deposit and credit growth. While the market remains cautious of NIM compression and rising credit costs, concerns over asset quality are diminishing, and banks are showing greater willingness to lend. Technical Picture Signals Strength From a technical standpoint, the Bank Nifty breakout is solid. After a 6% gain last week, the index posted a long bullish candle on the weekly chart—typically a strong indicator of sustained momentum. Ajit Mishra of Religare Broking suggests the index may now target the 55,000–57,000 range, with any pullbacks towards the 51,900–53,400 zone likely to attract buying interest, given the strong base built over a nine-month consolidation. FIIs and Macro Tailwinds Bolstering the Sector Adding to the bullish sentiment, Foreign Institutional Investors (FIIs) have made a strong comeback, pumping ₹15,000 crore into Indian equities in just three days. According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, FIIs are rotating into domestic consumption themes—including financials, telecom, aviation, autos, and real estate—amid weak US growth projections that are likely to keep IT under pressure. Conclusion The Bank Nifty’s record-setting rally underscores growing investor confidence in the sector’s earnings resilience, macro tailwinds, and policy support. As liquidity improves and lending appetite returns, the stage appears set for continued strength in India’s banking stocks.

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Editor04 mins

BluSmart Halts Services Amid SEBI Crackdown on Founders, Plans Fleet Transition to Uber

BluSmart, the fast-growing electric cab service, has abruptly suspended its operations in major Indian cities including Delhi, Bengaluru, and Mumbai. This sudden halt in services has left thousands of commuters stranded and confused. The disruption follows a Securities and Exchange Board of India (SEBI) order against the company’s promoters, who have been accused of financial misconduct. According to reports, BluSmart may soon exit its core ride-hailing business and instead operate as a fleet partner for Uber. As per The Economic Times, shareholders have approved a plan to begin transferring BluSmart’s fleet to Uber over the next few weeks, signaling a significant pivot in the company’s operations. The crisis unfolded after SEBI issued an interim order against Anmol Singh Jaggi and Puneet Singh Jaggi—the co-founders of Gensol Engineering, a company closely linked to BluSmart. Both brothers have resigned from their roles after the market regulator accused them of misappropriating funds and treating Gensol like a “piggy bank”. BluSmart, launched in 2018 as Gensol Mobility Pvt. and later rebranded, was founded by Anmol Jaggi along with Punit Goyal. The company quickly rose to prominence as India’s first and largest all-electric, zero-emission ride-hailing service. As of January 2025, it boasted a fleet of over 8,500 electric vehicles, a network of 5,800 charging stations across 50 hubs in Delhi NCR and Bengaluru, and a base of over 10,000 driver partners. It had completed over 1.45 crore rides and had recently ventured into international markets by launching a premium EV limousine service in the UAE. The root of BluSmart’s operational shutdown lies in its financial ties with Gensol Engineering Limited (GEL), also promoted by the Jaggi brothers. SEBI’s investigation revealed that Gensol borrowed ₹978 crore from public financial institutions like the Indian Renewable Energy Development Agency (IREDA) and the Power Finance Corporation (PFC) between 2021 and 2024. Of this, ₹664 crore was earmarked for the purchase of 6,400 electric vehicles to be leased to BluSmart. However, only 4,704 EVs were reportedly procured, leaving ₹262.13 crore unaccounted for. The SEBI probe revealed alarming financial irregularities, including luxury purchases and personal expenditures made using diverted funds. One major transaction involved a payment of ₹42.94 crore for an upscale apartment in the DLF Camellias project in Gurugram. Other questionable expenses included a ₹26 lakh golf set, personal travel and leisure, credit card bill payments, and fund transfers to close relatives. As BluSmart prepares to reposition itself in the mobility space through a partnership with Uber, the scandal has raised broader concerns about corporate governance and transparency in India’s rapidly growing EV and startup ecosystem.

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Editor04 mins

Nvidia to Invest $500 Billion in U.S. AI Infrastructure Amid Trade Tensions

Nvidia has unveiled a bold plan to invest up to $500 billion (£378 billion) in artificial intelligence infrastructure across the United States over the next four years. The announcement signals a strategic shift toward domestic production in response to escalating trade uncertainty under former President Donald Trump’s proposed tariff regime. The move comes as Trump renews threats to levy import duties on semiconductors, a step that could disrupt Nvidia’s reliance on its Taiwan-based supply chain. The investment decision reportedly followed a recent dinner between Nvidia CEO Jensen Huang and Trump at the Mar-a-Lago resort. In an official statement, Nvidia said it will collaborate with major manufacturing partners — including Taiwan Semiconductor Manufacturing Company (TSMC), Foxconn, Wistron, Amkor, and SPIL — to establish what it called a fully domestic supply chain for AI chips and supercomputing systems. Production of Nvidia’s latest Blackwell chips has already commenced at TSMC’s Arizona facility in Phoenix. Additionally, the company has broken ground on two supercomputer manufacturing plants in Texas, located in Houston and Dallas, in partnership with Foxconn and Wistron. The $500 billion initiative is one of the largest AI-related industrial investments ever announced and positions Nvidia at the forefront of reshoring advanced chip manufacturing amid geopolitical tensions and efforts to secure technological independence.

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Editor02 mins

India Eyes Interim Trade Deal with US Amid Global Scramble to Avoid Tariffs

As over 75 countries rush to secure trade deals with the United States during its 90-day pause window to avoid reciprocal tariffs, India is strategically positioning itself to bridge the trade gap with Washington by replacing third-country imports, a senior Indian government official has confirmed. Key Points: India’s Strategic Leverage The official noted that while countries like Vietnam may benefit from concessions under separate US deals, India is uniquely positioned due to: “Replacing imports from other countries with US goods is not a difficult proposition. That could be one of the outcomes of the BTA,” the official emphasized. The US has flagged tariffs and trade deficits in its talks with India, while raising subsidies and currency manipulation concerns with other nations. India believes it can narrow the deficit while still securing preferential access to US markets. Goyal: “No Negotiation Under Pressure” Commerce Minister Piyush Goyal firmly stated on Friday: “India will not negotiate with a gun to its head… Our national interest remains paramount.” Goyal’s stance reinforces India’s intention to prioritize substance over speed, despite pressure to meet the 90-day deadline. Positive Outlook from Washington The senior official also highlighted: What’s Next? In the coming weeks:

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Editor04 mins

Gold Hits All-Time High Amid US-China Trade Tensions; Experts Predict Further Surge

Gold prices soared to an unprecedented $3,238.82 per ounce (₹2.7 lakh) on Saturday, driven by escalating trade tensions between the United States and China. The sharp rise marks a new record for the safe-haven metal, as global economic uncertainty continues to fuel investor demand. In the domestic market, gold prices had dropped earlier in the week, touching ₹88,200 on Tuesday, while globally, it stood at $3,000 (₹2.5 lakh). However, by Friday, prices rebounded sharply, reaching an all-time high of ₹96,000 in India and $3,262 (₹2.8 lakh) on the international market. In Ahmedabad, the price of 22-carat gold on Friday was reported at ₹85,660, while 24-carat gold touched ₹93,440 per 10 grams, reflecting the upward momentum. The surge is largely attributed to economic instability spurred by US President Donald Trump’s trade policies, which have intensified friction with China. As geopolitical risks mount, investors have increasingly turned to gold as a secure asset. Market analysts anticipate that the rally is far from over. Forecasts suggest that gold prices could climb to $3,500 per ounce (₹3 lakh) by the end of the year, should global tensions persist or worsen.

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Editor02 mins

Gold Soars Over 1% as U.S.-China Tariff War Heats Up, Investors Rush to Safe Haven

Gold prices surged more than 1% on Thursday, buoyed by a flight to safety after U.S. President Donald Trump escalated tariffs on China, raising fresh concerns over inflation and global growth. Despite a temporary tariff pause for other countries, the move intensified the ongoing trade war between the world’s two largest economies. 🔥 Tariff Tensions Reignite Demand for Bullion Trump announced a tariff increase on Chinese imports to 125% from 104%, prompting investors to seek refuge in gold, a traditional hedge during economic and geopolitical uncertainty. The latest tariffs overshadowed the administration’s decision to temporarily ease duties for other nations. “If we enter a slow growth period, which is our base case, we think rates will eventually head lower and push gold higher,” said Edward Meir, analyst at Marex, adding that $3,200/oz could be reached “by month-end, if not earlier.” 📈 Factors Fueling the Gold Rally in 2025 Gold has already gained more than 18% this year, fueled by: 📊 Fed’s Balancing Act Minutes from the Fed’s latest meeting reveal that most policymakers are concerned about the economy facing “higher inflation alongside slower growth.” This puts pressure on the Fed’s future rate decisions, with possible trade-offs looming. Gold, which yields no interest, typically underperforms when rates are high. However, its role as an inflation hedge keeps it attractive amid uncertainties. 🔍 What’s Next? Investors are now eyeing key U.S. data: These indicators could provide further clues on inflation trends and Fed policy direction. 🪙 Other Precious Metals

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Editor03 mins

India Pushes for Faster Trade Deal with US Amid Tariff Shifts and Global Uncertainty

India is accelerating efforts to finalize a trade agreement with the United States after US President Donald Trump temporarily paused reciprocal tariffs on several countries, including India, while significantly raising duties on China. The move, seen as part of Trump’s ongoing pressure strategy against China, saw tariffs on Chinese imports hiked to 125%. In contrast, the reciprocal tariff rate for Indian goods remains steady at 10%. India and the US had previously announced their intention to conclude the first phase of a trade deal by autumn 2025, aiming for a bilateral trade volume of $500 billion by 2030. The recent pause on tariff implementation comes as a relief to Indian exporters, particularly those in the shrimp industry, a government official told Reuters. The official added that India was among the first countries to initiate trade talks with the US and has remained committed to the agreed timeline. Just a day after imposing high tariffs that shook global stock markets, Trump provisionally reduced duties for key trading partners, including India. The tariff volatility has prompted countries to re-evaluate their global trade strategies. India is also open to allowing zero-duty imports from the US in several sectors, including those under the Production-Linked Incentive (PLI) scheme, according to a report by The Economic Times. The PLI scheme covers 14 sectors such as electronics, drones, pharmaceuticals, textiles, automobiles, and specialty steel, backed by a budget of ₹1.97 lakh crore. A broader Indian offer could help fast-track the trade deal. Meanwhile, Apple is reportedly planning to expand iPhone manufacturing in India—a potential shift influenced by Trump’s stricter tariffs on Chinese goods. Amid this global economic flux, the Reserve Bank of India (RBI) has taken a cautious step to support growth by cutting the repo rate by 25 basis points to 6%. RBI Governor Sanjay Malhotra flagged growing risks to India’s GDP due to rising trade tensions. “The recent trade tariff-related measures have exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation,” he stated in the monetary policy announcement. As global economic policies shift unpredictably, India finds itself navigating a complex trade and economic landscape while trying to safeguard its growth trajectory and global trade partnerships.

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Editor04 mins
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