September 10, 2025

THE CLIFF NEWS

National Daily Bilingual Newspaper

Category: Stock Market

India’s Wholesale Inflation Eases to 0.85% in April; Retail Inflation Hits 69-Month Low at 3.16%

India’s wholesale inflation cooled further to 0.85% in April 2025, down sharply from 2.05% in March, reaching a four-month low, government data revealed on Wednesday. The decline was driven by a contraction in primary articles and fuel prices, although inflation in manufactured goods continued to rise. 🔍 Key Highlights: 🍅 India’s “Kitchen Inflation” – A Breakdown Food prices contributed significantly to the cooling trend: Item April Inflation March Inflation Vegetables -18.26% -15.88% Onions 0.20% 26.65% Potatoes -6.77% 27.54% Pulses 5.57% -2.98% Cereals 3.81% — 🏦 RBI’s Inflation Outlook for FY26 India’s retail inflation also eased to a 69-month low of 3.16% in April, from 3.34% in March, offering relief to households. The RBI Monetary Policy Committee (MPC) has revised its inflation projection for FY2025–26 to 4%, down from 4.2% in February. Quarter-wise projections for FY26: “There is now greater confidence in a durable alignment of inflation with the 4% target over the next 12 months,” said RBI Governor Sanjay Malhotra, crediting the sharp decline in food prices for the improvement. 📈 Conclusion Both wholesale and retail inflation indicators suggest a broad-based cooling of price pressures in the Indian economy, creating room for monetary policy stability and boosting consumer confidence. However, analysts warn that geopolitical risks and climate impacts on agriculture remain key variables for future trends.

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Editor03 mins

Asian Markets Rally as US-China Trade Truce Spurs Global Optimism

Markets across Asia surged on Tuesday, buoyed by a strong rally in U.S. equities and renewed optimism surrounding the easing of trade tensions between the United States and China. A gauge of U.S.-listed Chinese stocks soared 5.4% on Monday, marking its best session in over two months, as investor sentiment improved on signs of a major de-escalation in the prolonged tariff conflict. Japan’s Topix index extended gains for a 13th straight session, setting it on course for its longest winning streak in 16 years. Shares in Australia and Japan also opened significantly higher, tracking the S&P 500’s 3% surge from the previous U.S. session. The sharp rebound in risk appetite followed a joint announcement by U.S. and Chinese trade negotiators, confirming a temporary tariff truce. The United States agreed to slash duties on Chinese goods from 145% to 30% for a 90-day period, while China reduced its tariffs on most U.S. imports to 10%. The coordinated move was widely interpreted as a meaningful step toward broader economic normalization between the world’s two largest economies. Despite the euphoria in equities, the U.S. dollar remained relatively flat during Asian trading hours, following a jump on Monday. The rally has come as a double-edged sword for some investors. Those who hedged against further market instability during April’s turmoil—through strategies like shorting the dollar, betting on increased stock volatility, or positioning for aggressive Fed rate cuts—now face painful unwinds. These reversals may also be contributing to the sudden momentum in global stock markets. As attention turns to central bank policy signals and upcoming economic data, markets are likely to remain sensitive to any shifts in trade negotiations or monetary expectations. For now, however, the de-escalation has brought a welcome sense of relief to global investors.

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Editor03 mins

Markets Volatile as India Strikes Terror Targets Under ‘Operation Sindoor’; FIIs Sustain Market Resilience

Benchmark indices Sensex and Nifty witnessed sharp volatility in early trade on Wednesday, May 7, following India’s precision missile strikes on terrorist hideouts in Pakistan and Pakistan-Occupied Kashmir. The strikes, part of ‘Operation Sindoor’, were a retaliation to the Pahalgam terror attack that claimed 26 civilian lives two weeks ago. During the trading session, the Sensex fluctuated between a high of 80,844.63 and a low of 79,937.48, while the Nifty ranged from 24,449.60 to 24,220. Despite the initial nervousness, the market remained largely resilient, aided by consistent foreign inflows and confidence in India’s macroeconomic prospects. The Indian military targeted nine terror-linked sites, including the Jaish-e-Mohammad headquarters in Bahawalpur and the Lashkar-e-Taiba base in Muridke. According to market experts, the non-escalatory and focused nature of the strikes helped limit broader panic in the financial markets. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the markets had already factored in a likely response from India, which contributed to their relative calm. He emphasized that Foreign Institutional Investors (FIIs) remain key to the market’s strength, having invested ₹43,940 crore over the past 14 trading sessions. Vijayakumar also pointed to broader global cues supporting Indian equities, including a weaker US dollar, slower economic growth in the US and China, and India’s relative outperformance potential in 2025. Among sectoral performers, Tata Motors, State Bank of India, HDFC Bank, IndusInd Bank, Bajaj Finance, and Power Grid were notable gainers. Meanwhile, HCL Tech, Asian Paints, Hindustan Unilever, Sun Pharma, UltraTech Cement, and Nestle lagged behind. On the global front, South Korea’s Kospi, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng traded in positive territory, whereas Japan’s Nikkei 225 showed weakness. FIIs continued their buying momentum with purchases worth ₹3,794.52 crore on Tuesday, according to exchange data. The market outlook remains cautious, with attention focused on geopolitical developments at the border, but investor confidence appears intact for now.

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Editor03 mins

Zomato Leadership Shuffle: Rakesh Ranjan Steps Down as Food Delivery CEO, Deepinder Goyal Takes Charge

In a strategic leadership reshuffle, Rakesh Ranjan, the CEO of Zomato’s food delivery business, is stepping down from his role. Founder and Group CEO Deepinder Goyal will now personally oversee the food delivery operations for the coming months, as per sources cited by Moneycontrol. Despite vacating the CEO post, Ranjan will remain with Zomato (internally known as ‘Eternal’), continuing to play a key role within the broader ecosystem of the company. This leadership change is part of Zomato’s routine executive rejig, which the company reportedly undertakes every few years. Ranjan’s Tenure and Impact Ranjan, who took over the food delivery division in June 2023, has been with the company for nearly eight years. Under his leadership, Zomato continued to maintain its position as a market leader in India’s competitive food delivery sector. Financial Snapshot – Q3FY25 While operationally robust, the company faced some financial turbulence in the most recent quarter: Zomato Stock Performance Zomato’s stock has shown mixed signals: In comparison, the Nifty 50 index has: The contrast highlights that Zomato’s recent gains outpaced the market in the short term, but it has underperformed over the long run, likely due to concerns about profitability and Blinkit’s burn rate.

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Editor03 mins

Hyundai Steel Faces Investor Backlash Over $6B U.S. Investment Amid Trade Uncertainty

In late March, Hyundai Steel attempted to reassure investors after its shares were hit hard following the announcement of a $6 billion investment in a new U.S. plant, part of Hyundai Motor Group’s broader $21 billion U.S. investment package revealed at the White House on March 24. During a closed-door investor call, company officials apologized for the lack of detailed funding plans, attributing the hasty announcement to mounting U.S. tariff threats and limited policy action from South Korea’s government amid former President Yoon Suk Yeol’s impeachment crisis. Executives emphasized that the investment was strategically aimed at securing better tariff terms for Hyundai and South Korea in ongoing trade talks with Washington. Indeed, senior South Korean officials are set to meet U.S. counterparts this Thursday in an effort to negotiate tariff exemptions or reductions. However, skepticism remains. Investors and analysts questioned: Tensions escalated when former U.S. President Donald Trump announced 25% tariffs on imported autos shortly after the White House event, without exemptions for South Korean products, casting further doubt on the strategy’s immediate gains. As Hyundai navigates this geopolitical and economic uncertainty, both its strategic planning and diplomatic negotiations will be closely watched by markets and policymakers alike.

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Editor03 mins

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
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