US Treasury Secretary Scott Bessent expressed frustration with India's trade practices, particularly its purchase of sanctioned Russian oil, leading to potential penalties and tariffs. President Trump's administration is reportedly displeased with India's slow pace in trade negotiations. Experts suggest these actions are pressure tactics to expedite a trade deal, especially as the US secures agreements with other major partners.from Latest Business News Today: Stock Markets, Financial News, India Business & World Business News https://ift.tt/ma2l9jO
The Federal Reserve decided to maintain the federal funds rate at 4.25%-4.50%, assessing incoming data and economic outlook. Despite Trump's call for rate reductions following a 3% GDP growth in the second quarter, experts contextualize this data, noting a slower overall growth rate for the first half of 2025. Trump's stance contrasts with traditional economic thinking.
US President Trump has announced a 25% tariff on all Indian imports starting August 1, citing trade barriers and defense purchases from Russia. This move, viewed as a pressure tactic before trade talks, has prompted India to assess implications and protect its interests.
US President Donald Trump has announced that a trade agreement with India has not been finalized, despite previous indications that a deal was nearing completion. Trump's remarks come just two days before the August 1, 2025, reciprocal tariff deadline. The possibility of an interim trade deal announcement before the deadline now seems unlikely.
The IMF has revised India's economic growth forecast upward to 6.4% for both 2025 and 2026, reaffirming its position as the world's fastest-growing major economy. Globally, growth is projected at 3.0% and 3.1% for the same years, driven by factors like lower tariffs and a weaker US dollar.
India's industrial output growth decelerated to a 10-month low of 1.5% in June, primarily due to contractions in the mining and electricity sectors. Sluggishness in capital goods and consumer durables further contributed to the slowdown. While manufacturing showed resilience, excess rains impacted mining and electricity, and demand signals remained mixed, particularly in urban consumption.
Life Insurance Corporation of India has significantly increased its presence in the bond derivatives market, engaging in $1 billion worth of forward rate agreements with global lenders like JPMorgan and Bank of America. These deals represent a substantial portion of the total FRA volumes since May, reflecting a growing interest among Indian institutions for hedging instruments.
Donald Trump and Ursula von der Leyen announced a trade deal between the US and EU, aiming to resolve a prolonged transatlantic trade dispute. Trump and Ursula von der Leyen met in Scotland for crucial discussions, seeking to resolve the prolonged transatlantic trade dispute, with negotiations reaching their final stages.
Donald Trump claims Japan will invest $550 billion in the US under a new trade framework, though details remain under negotiation. Trump suggests the US would receive 90% of profits from these investments, calling it a "signing bonus" linked to tariff reductions.
Union Minister Piyush Goyal confirmed that India's FTA with Oman is nearing finalization, while negotiations with the EU, US, Peru, and Chile are advancing rapidly. India recently concluded trade agreements with Mauritius, Australia, and the EFTA bloc, and aims to boost bilateral trade with the UK to $120 billion by 2030.
Reserve Bank of India Governor Sanjay Malhotra stated that corporates will not be allowed banking licenses. The monetary policy committee retains flexibility on interest rates. Future rate decisions will depend on inflation and growth outlook. There is no plan to revise the 26% limit on promoter shareholding in private banks. RBI supports diversified ownership. The ultimate responsibility for a bank's operations lies with its board.
NSDL's upcoming IPO has set its price band at Rs 760-800 per share, a 22% discount from unlisted market values. The Rs 4,011.6 crore issue, opening July 30, involves existing shareholders like IDBI Bank and NSE offloading stakes. Targeting a Rs 16,000 crore valuation, NSDL's IPO draws comparisons to HDB Financial's discounted pricing.
The Indian government has unveiled a draft telecom policy targeting significant growth in the sector by 2030. It aims to attract substantial investments, create numerous jobs, and foster innovation through next-generation technologies. The policy envisions India as a leading global provider of telecom products and services, emphasizing research, infrastructure modernization, and effective spectrum management.
A US-Japan trade agreement, capping auto and goods tariffs at 15%, is setting a new standard for global trade negotiations. Economists believe this benchmark could influence ongoing talks with the EU and China, who face imminent deadlines to avoid higher tariffs. The deal has boosted market confidence, particularly among automakers, and eased long-term US inflation expectations.
Top stock market recommendations: Aakash K Hindocha suggests a consolidation phase for Nifty between 24800 and 25320, anticipating a potential breakout led by Nifty IT. Bank Nifty's breakout above 57100 indicates continued outperformance with targets set for new all-time highs. Top stock picks include Balkrishna Industries, Sona BLW Precision Forgings, and Hindalco, each exhibiting bullish patterns and breakout confirmations.
India's green energy and tech ambitions face hurdles due to its reliance on China for rare earth elements (REEs), crucial for EVs, electronics, and clean energy. Despite holding significant reserves, India's REE production is minimal compared to China's dominance in mining, processing, and magnet production.
Amid global uncertainties, the RBI emphasizes India's strategic opportunity to strengthen trade ties, particularly with the upcoming UK FTA. Domestic economic activity remains steady, supported by a good kharif crop and strong services momentum. Headline retail inflation stays below 4%, while the external sector remains stable with ample forex reserves.
Indian Overseas Bank's Hong Kong branch (IOBHK) faces a HK$8.5 million penalty from the Hong Kong Monetary Authority for AML/CFT ordinance breaches. The HKMA cited 'significant failure' in mitigating risks, pointing to inadequate management oversight and improper handling of transaction alerts. IOB asserts no AML/CFT violations occurred, attributing the issue to software alert handling, with corrective measures underway.
Donald Trump declared the completion of a significant trade agreement with Japan, averting a threatened 25% tariff. The deal includes a 15% American tariff on Japanese imports and a $550 billion Japanese investment in the U.S., purportedly generating numerous jobs. Japan will also open its markets to American cars, trucks, rice, and other agricultural products, subject to reciprocal 15% tariffs.
A parliamentary panel led by BJP's Baijayant Panda has recommended continuing tax exemptions for anonymous donations to religious-cum-charitable trusts in the new Income Tax Bill, 2025. The committee suggests allowing taxpayers to claim TDS refunds even after the ITR filing deadline without penalties. The report also proposes significant changes to how the bill treats income for non-profit organizations.
Despite Trump's August 1st deadline, US negotiators will visit India later in August, aiming for a bilateral trade agreement by Fall. Sticking points remain, particularly regarding American agricultural and dairy access, which India resists. India seeks gains in textiles, footwear, and auto parts. Trump's insistence on agricultural concessions and opaque deal-making with other nations are also concerns.
Omar Abdullah requested the central government to approve the Tulbul Navigation Barrage and Chenab River water scheme. This request follows the suspension of the Indus Waters Treaty after a terror attack. Abdullah has long opposed the IWT, deeming it unfair to Jammu and Kashmir. The Tulbul project aims to regulate Jhelum River water levels.
The HDFC and HDFC Bank merger continues to impact credit growth, pulling industry figures into single digits in Q1FY26. HDFC Bank's loan growth slowed post-merger to prioritize balance sheet stability, impacting overall banking system performance. While mortgage growth was slower than the industry average due to intense competition, the bank anticipates consumption recovery and MSME segment growth.
Adani Group plans to invest nearly Rs 1 lakh crore in its airport business in India over the next five years, focusing on infrastructure and real estate development. The investment will primarily target Navi Mumbai Airport, Mumbai Airport, and expansions in Ahmedabad, Jaipur, Thiruvananthapuram, and Guwahati. The group aims to capitalize on India's growth potential in the aviation sector.
Rosneft has condemned the EU's sanctions on Nayara Energy, its Indian affiliate, deeming them unjustified and a threat to India's energy security. Rosneft argues the sanctions are extraterritorial, politically motivated, and disregard international law.
The Trump administration has announced new flight restrictions from Mexico, potentially ending the Delta-Aeromexico partnership in response to Mexico's limits on flights into Mexico City. Transport Secretary Sean Duffy cited unfair advantages for Mexican carriers due to the redirection of flights to Felipe Angeles International Airport.
Blackstone has withdrawn from the consortium aiming to invest in TikTok's US operations, adding to the uncertainty surrounding the deal. The investment group, led by Susquehanna International Group and General Atlantic, was considered the front-runner to acquire majority control. The exit comes amid delays and US-China trade tensions.
HDFC Bank and ICICI Bank both reported robust earnings growth for the June 2025 quarter, fueled by increased interest and non-interest income. HDFC Bank announced a bonus issue and dividend, with net profit rising 12.2%. ICICI Bank's net profit grew by 15.4%, driven by income growth, while both lenders expressed caution regarding margin pressures and certain retail lending segments.
Former Chief Justice of India, D Y Chandrachud, has stated that Viceroy Research's report on Vedanta Group contains defamatory allegations, harming the company's business and reputation. Chandrachud highlighted the report's imputations, including labeling Vedanta a “Ponzi scheme,” and questioned Viceroy's credibility, citing its history of short-selling and publishing misleading reports for profit.
Chevron has finalized its $53 billion acquisition of Hess Corp, gaining a significant stake in Guyana's lucrative Stabroek Block after an International Chamber of Commerce ruling. This acquisition, which includes Hess's 30% share in the Guyana field and Bakken shale assets, positions Chevron alongside Exxon Mobil and CNOOC in the rapidly growing offshore production hub.
Sebi wants to improve India's derivatives market. Ananth Narayan suggests extending F&O contract tenures. He highlights concerns about short-term trading dominance. Regulators worry about household savings in speculative trading. A Sebi study reveals significant losses for individual F&O traders. Recent regulations aim to discourage short-term trading. Sebi acknowledges industry concerns about revenue impact. The focus is on sustainable market practices.
HDFC Bank is set to consider issuing bonus shares and a special interim dividend during its board meeting on July 19, alongside reviewing Q1 financial results. This marks the bank's first potential bonus issue in over three decades. The interim dividend, if approved, applies to FY26. These proposals signal confidence post-merger, aiming to boost liquidity and shareholder returns.
Brokerage firms have varying outlooks on several companies. JP Morgan downgraded Tata Technologies due to mixed Q1 results, while Goldman Sachs is optimistic about Ola Electric's path to profitability. JM Financial initiated coverage on Kalyan Jewellers with a buy rating, citing growth opportunities.
Donald Trump announced on Truth Social that Coca-Cola has agreed to replace high-fructose corn syrup with real cane sugar in its US soft drinks, following his request. Coca-Cola acknowledged Trump's support but didn't confirm the change. The potential switch sparks debate over economic impacts and health implications, as Trump's history with Diet Coke adds intrigue.
Donald Trump announced a new trade agreement with Indonesia, significantly reducing tariffs on Indonesian exports to 19% and granting full market access to American goods. Indonesia has committed to purchasing billions in US energy, agricultural products, and Boeing jets.
India and the US are engaged in fast-paced talks for an interim trade deal, with the tariff rate being a key point of negotiation. Despite potential challenges from a less favorable deal, India has avenues to diversify its exports, particularly in services.
The US government has imposed a 17% import duty on most fresh tomatoes from Mexico. This decision aims to protect the American tomato industry. Talks between US and Mexican officials failed to reach a new agreement. The duty took effect immediately. It is expected to raise tomato prices in the US. American growers are likely to benefit from this move.
India is set to increase its presence in the United States market. This is due to changes in Washington's tariff policies. Niti Aayog reports India will gain competitiveness in many product categories. The US has higher import tariffs on countries like China and Mexico. This creates an opportunity for Indian exporters. India's merchandise exports and services exports are also growing.
RBI's new directive allows banks to accept voluntary gold and silver pledges for agricultural and MSME loans up to Rs 2 lakh, even within collateral-free limits. This aims to enhance financial inclusion in rural areas where gold is a liquid asset, enabling faster loan processing and reducing reliance on informal lenders.
India has revised its 2015 mandate for installing flue gas desulphurisation (FGD) units, now focusing on coal-fired plants within 10 km of cities with over 1 million residents. This change, driven by cost concerns and studies indicating lower-than-threshold sulphur dioxide levels, is expected to reduce power costs. While criticised by environmentalists, officials claim the recalibration is efficient and climate-conscious.
Mercedes-Benz India will increase vehicle prices by 1-1.5% in September, according to MD and CEO Santosh Iyer, due to the weakening rupee against the euro. This marks the third price hike this year. Despite concerns, Iyer believes reduced interest rates and economic growth will sustain demand.
NLC India, a state-owned enterprise, is in advanced talks with a Russian entity to secure lithium from a mine in Mali, Africa, a crucial move for India's energy transition. This initiative aligns with India's strategy to ensure consistent lithium supplies for its clean energy goals, particularly for electric vehicle batteries.
Donald Trump has threatened major trade partners with new import tariffs, ranging from 20% to 50%, demanding individual trade deals by August 1. The EU and Mexico have condemned the proposed tariffs as unfair, while expressing willingness to negotiate. Trump cites trade deficits and fentanyl concerns as justification, despite data showing most fentanyl enters the US from Mexico.
Paytm founder Vijay Shekhar Sharma predicts AI's inevitable integration into business, even as CFO. He envisions AI automating tasks, urging focus on core product development as Paytm transitions into an AI-first company. Despite recent layoffs partly due to RBI restrictions, Paytm is innovating with AI, including a rap song expense tracker.
