Author: Sreelatha M

Categories
Beyond

PM Modi pushes BRICS to shape new global order

Prime Minister Narendra Modi has called for a new and ambitious agenda for BRICS for the next 20 years, saying the grouping must strengthen its own functioning while also pushing for reforms in global institutions. His remarks came as leaders of the expanded bloc gathered in New Delhi for the 18th BRICS Summit amid growing trade tensions, geopolitical conflicts and disruptions to global supply chains.

Opening the summit on Saturday, Modi said BRICS had reached a “coming of age” moment after two decades. He said the next phase should begin by improving the way the grouping functions and should run alongside a clear roadmap for reforming global institutions.

The economic weight behind that message is significant. PM Modi has said BRICS countries now account for around 50% of the world’s population, about 40% of global GDP and roughly 25% of international trade. The bloc has expanded well beyond its original members and now includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the UAE.

India wants that economic scale to translate into stronger business opportunities. At the BRICS Business Forum, PM Modi proposed a three-part agenda: identifying and removing the bloc’s top 10 trade barriers, helping 100 startups expand into other BRICS markets every year and creating 1,000 new business partnerships annually. He also called for regular reviews to track progress.

The proposals come at a time when global companies are dealing with tariffs, geopolitical tensions and increasingly fragile supply chains. PM Modi has argued that BRICS can use its combined market size to create more predictable conditions for trade and investment.

Trade facilitation has therefore emerged as one of India’s key priorities. Commerce and Industry Minister Piyush Goyal has urged BRICS members and partner countries to open markets, simplify regulations and strengthen cooperation in sectors ranging from agriculture and pharmaceuticals to engineering, electronics, automobiles, services, startups and emerging technologies.

Payment connectivity is another important part of the economic agenda. India is pushing for BRICS countries to link payment systems and promote greater use of national currencies in bilateral trade. The objective is to make cross-border transactions faster and cheaper while reducing some of the costs associated with currency conversion.

India’s Unified Payments Interface, or UPI, has been highlighted as one possible model for digital payment cooperation. PM Modi has also pointed to India’s progress in semiconductors, biotechnology and quantum technology as areas where BRICS members could build stronger partnerships.

The bloc is also moving towards greater cooperation on startups and logistics. The proposed BRICS Incubator Network would connect startups and innovation agencies across member countries, while the Startup Innovation Fund would support early-stage businesses. A separate logistics and supply-chain cooperation framework is aimed at improving connectivity and resilience.

Supply-chain security has gained greater importance as conflicts have disrupted shipping routes and energy flows. PM Modi has called for freedom of navigation and safer sea lanes, warning that the security of international waters and seafarers is directly linked to global trade. India is also seeking greater cooperation in strategic sectors such as shipbuilding, semiconductors and biotechnology.

The geopolitical side of the summit is equally important for the business agenda. Chinese President Xi Jinping arrived in New Delhi on Saturday for his first visit to India in seven years and is scheduled to meet Modi. The two countries are attempting to stabilise relations after tensions following their 2020 border clash. Better ties could have implications for trade, investment and supply-chain links between the world’s two most populous countries.

PM Modi has also held discussions with Russian President Vladimir Putin on the sidelines of the summit. The two leaders reviewed cooperation in trade, energy, defence, space, critical minerals, fertilisers and skill mobility. India and Russia are also looking to increase bilateral trade from nearly $70 billion to $100 billion by 2030.

The discussions come against a difficult global economic backdrop. The Russia-Ukraine war, the conflict involving Iran, disruptions in the Red Sea and Strait of Hormuz and broader US-China tensions have affected energy markets, shipping costs and international supply chains.

These pressures have strengthened the case within BRICS for greater economic resilience and reduced dependence on a single market or financial system. Russia, China and Iran have pushed for greater financial independence, while India has focused more heavily on practical trade cooperation and payment connectivity.

PM Modi has also used the summit to push for a larger role for the Global South in global decision-making. He said reforms to international institutions, including the United Nations Security Council, can no longer be delayed. India wants developing countries to have a greater voice in institutions that shape global economic and political rules.

That demand extends to global financial institutions. BRICS has been seeking reforms in bodies such as the International Monetary Fund, World Bank and World Trade Organization, arguing that their structures should better reflect the economic weight of emerging economies.

Yet the expanded BRICS bloc also faces a major challenge: maintaining consensus among countries with different political systems, economic priorities and foreign-policy positions. Iran and the UAE, for instance, have sharply different positions on the current Gulf conflict. Negotiators nevertheless reached agreement on a joint declaration ahead of the summit, with the document expected to condemn unilateral warfare without naming individual countries.

The agreement is important because BRICS foreign ministers failed to issue a joint statement during their May meeting because of differences between Iran and the UAE. Reaching consensus this time gives the bloc an opportunity to demonstrate that its expansion has not made collective decision-making impossible.

India’s larger objective is to make BRICS more practical and business-focused. The proposed 20-year agenda is not limited to political coordination. It includes trade barriers, digital payments, startups, investment, logistics, supply chains, technology and energy security.

 

Categories
Beyond

Bank services hit as unions demand 5-day workweek

Banking services were disrupted across India on Friday as bank employees and officers joined a nationwide strike demanding a five-day workweek and action on several long-pending service-related issues. The strike, called by the United Forum of Bank Unions (UFBU), had its biggest impact on public sector bank branches, where employees stayed away from work in large numbers.

The protest affected branch operations in several parts of the country, including Assam. In Guwahati, Silchar, Dibrugarh, Jorhat, Kokrajhar and other locations, employees of major public sector banks took part in demonstrations and strike activities. Customers visiting branches were left facing delays or unable to complete several routine banking transactions.

The central demand of the bank unions is a five-day banking week, under which banks would remain closed on all Saturdays and Sundays. At present, bank branches are generally closed on the second and fourth Saturdays, while they remain open on the first, third and, where applicable, fifth Saturdays.

The unions have argued that the nature of banking has changed considerably with the rapid growth of digital banking. Internet banking, mobile applications, UPI and ATMs now handle a large share of routine transactions, while branch employees continue to work under a schedule that includes Saturdays.

The proposal for a five-day banking week is also not new. The Indian Banks’ Association (IBA) had agreed to the proposal as part of the 12th Bipartite Settlement and 9th Joint Note signed in March 2024. Under the arrangement, working hours on weekdays would increase by around 40 minutes so that customer service hours could be maintained despite the additional weekly holiday. The proposal, however, has remained pending for government approval.

The delay has become a major point of frustration for bank employees. Unions say they have been waiting for the implementation of an agreement that was reached more than two years ago. They argue that the five-day workweek would improve work-life balance without significantly affecting banking services, particularly as customers increasingly rely on digital channels.

Another major issue behind the strike is the Performance Linked Incentive (PLI) scheme. Bank unions have objected to changes in the incentive structure for public sector bank employees and officers, particularly over differences in payouts across seniority levels.

The revised PLI framework became a flashpoint between employees and the authorities. The government has since kept the implementation of the scheme for 2025-26 in abeyance, with discussions expected to continue as part of the broader wage and service negotiations. The unions, however, have maintained that resolving the PLI issue does not address their primary demand for a five-day banking week.

Bank employees are also seeking action on pension-related matters, recruitment and staffing shortages and other service conditions. Pension updation and improvements in benefits for retired employees remain among the broader demands raised by banking unions.

The strike was expected to affect several branch-based services, including cash deposits and withdrawals, cheque processing, clearing, passbook updates, KYC-related work, documentation and other counter services. Customers needing loans, certificates or other services requiring direct staff intervention could also face delays.

Digital banking services, however, continued to function. UPI payments, mobile banking, internet banking and ATM transactions were largely available because these services do not depend on employees being physically present at bank branches. Some transactions that eventually require branch-level processing may still take longer to complete.

The impact of the strike was particularly visible because it came just before a weekend. September 12 is the second Saturday, followed by Sunday, meaning customers in many parts of the country could face limited access to physical bank branches over several consecutive days. Local holidays in some states could add to the disruption.

Bank unions have also made it clear that Friday’s strike may not be their final step. A three-day nationwide strike has been announced for September 28, 29 and 30. If the outstanding issues remain unresolved, unions have threatened an indefinite nationwide strike beginning October 26.

The series of planned protests puts additional pressure on the government and banking authorities to find a settlement. State Bank of India and other lenders have already informed customers about the possible impact of the strikes and said arrangements would be made to minimise disruption to essential services.

The dispute is therefore about more than an extra weekly holiday. Bank employees are linking the five-day workweek with concerns over workload, staffing, incentives, pensions and changing working conditions in India’s banking sector.

As banking becomes increasingly digital, the unions believe branch employees should also see a change in their working pattern. The government and banking authorities, meanwhile, face the challenge of balancing employee demands with uninterrupted customer service.

The immediate effect of Friday’s strike was felt mainly at physical bank branches, while digital banking continued to keep most routine transactions moving. The bigger question now is whether negotiations can prevent further strikes later this month and in October, or whether customers will again face widespread disruption across the banking system.

 

Categories
Beyond

IRDAI imposes ₹1 crore fine on Canara HSBC

The Insurance Regulatory and Development Authority of India (IRDAI) has imposed a ₹1 crore penalty on Canara HSBC Life Insurance Company over the sale of a deferred annuity policy to an 88-year-old customer through Canara Bank. The regulator found several lapses involving product eligibility, suitability assessment, verification, disclosures and internal controls.

The case has drawn attention because the policy was sold to a customer who was already above the product’s permitted entry age. The policy brochure specified an entry-age range of 30 to 80 years, while the customer was 88 at the time of the transaction. IRDAI said the sale therefore failed to comply with the approved product features.

The policy was a non-linked, non-participating deferred annuity plan. It carried an annual premium of ₹2 lakh and a four-year premium-paying term. The policy was sold through Canara Bank, which acted as the corporate agent for Canara HSBC Life. The customer’s daughter was named as the annuitant under the policy.

IRDAI began looking into the matter after taking suo motu cognisance of a social media post that highlighted the sale. The regulator sought an explanation from the insurer and later issued a show-cause notice. After considering the company’s response and holding a personal hearing, IRDAI passed its order on September 10, 2026.

The regulator’s findings went beyond the customer’s age. IRDAI identified shortcomings in the suitability assessment, saying the insurer did not adequately establish whether the product was appropriate for the customer. The verification and solicitation process also came under scrutiny.

The verification call was found to have lacked adequate due diligence. IRDAI also noted discrepancies in the proposal documents, including issues surrounding the customer’s date of birth and the information confirmed during the verification process. Such checks are intended to ensure that a policyholder is eligible for a product and understands the financial commitment involved.

Disclosure of policy information was another area where the regulator found problems. The required benefit illustration and policy documents were not adequately provided to the customer, according to the findings. Such documents are important because they explain the policy’s benefits, premium commitments and other key terms before a customer makes a financial decision.

The premium collection also became part of the regulatory concerns. Canara HSBC Life had collected ₹4.09 lakh from the customer, including the second-year premium. After the issue came to light, the insurer met the policyholder and refunded the entire amount at the customer’s request. The related commission was also reversed.

The refund did not, however, remove the regulatory violations. IRDAI imposed the ₹1 crore penalty under provisions of the IRDAI Protection of Policyholders’ Interests Regulations, 2024, the Corporate Governance Regulations, 2024 and the applicable Master Circular on Protection of Policyholders’ Interests.

Canara HSBC Life has said it has taken corrective steps following the incident. These include changes to its product brochure, policy documents and customer suitability assessment framework. The insurer has also introduced pre-issuance video-based validation calls aimed at strengthening checks around customer identity, understanding and consent.

IRDAI has directed the insurer to go further. Canara HSBC Life has been asked to conduct a comprehensive audit of policies sold to customers above 75 years of age through Canara Bank during the three financial years ending March 31, 2026. The exercise is intended to identify other cases involving possible violations of product eligibility, suitability and disclosure requirements.

The regulator has also directed the company to strengthen controls over its corporate-agent distribution network and submit an Action Taken Report on the directions within the specified timeline. The company must also place the regulatory order before its Board of Directors.

The case puts the spotlight on the responsibilities of banks and insurers when selling financial products to elderly customers. Insurance policies can involve substantial and long-term financial commitments, making proper suitability checks especially important when customers are older or may have different financial requirements.

The episode also highlights the difference between completing paperwork and ensuring genuine customer understanding. A policy can be formally documented, but the sales process still needs to establish that the customer is eligible, understands the product and is making an informed decision.

Senior citizens buying insurance products should therefore pay close attention to entry-age limits, premium commitments, policy tenure, benefits, exclusions and surrender conditions. Customers should also ask for the benefit illustration and policy documents and carefully check personal details before signing or making payments.

The ₹1 crore IRDAI penalty sends a broader message to the insurance distribution industry. Banks and insurers are expected to ensure that sales practices do not override customer suitability or policyholder protection.

The action also shows that insurance mis-selling and regulatory compliance are receiving closer scrutiny. In this case, the financial loss to the insurer is limited to the penalty, while the customer received a refund. The wider impact could be more significant as the mandated audit and corrective measures bring greater attention to how insurance products are sold to elderly customers.

 

Categories
Beyond

SEBI, RBI test tokenised corporate bonds in India

India has taken another step towards bringing blockchain technology into its financial markets with the launch of Demat 2.0, a pilot project by the Securities and Exchange Board of India (SEBI) to test tokenised corporate bonds.

The initiative, launched jointly with the Reserve Bank of India (RBI), aims to change how corporate bonds are issued, held, transferred and settled. Instead of relying entirely on conventional electronic records, the pilot uses Distributed Ledger Technology (DLT) to record ownership of bonds digitally. (sebi.gov.in)

The announcement was made by RBI Governor Sanjay Malhotra and SEBI Chairman Tuhin Kanta Pandey at the Global Fintech Fest in Mumbai. The project is being positioned as the next stage in India’s dematerialisation journey, building on the original demat system that changed the way investors held securities. (indianexpress.com)

Under the new system, a corporate bond is represented as a digital token on a distributed ledger. The ledger is maintained by regulated market infrastructure institutions, while ownership continues to remain within the regulated securities framework. This is different from cryptocurrencies, which operate outside India’s conventional securities market structure.

The pilot has already seen three corporate bond issuances worth a combined ₹1,025 crore from REC Ltd, Larsen & Toubro and IIFL. The L&T issue alone was worth ₹500 crore. The initial transactions are aimed at institutional investors as regulators test whether the technology can work smoothly at different stages of the bond lifecycle. (financialexpress.com)

One of the biggest changes under Demat 2.0 is the way transactions can be settled. The tokenised bond system is connected to the RBI’s wholesale Central Bank Digital Currency (CBDC) through the central bank’s Unified Market Interface (UMI).

This allows the bond and the payment to move together in what is known as atomic settlement or delivery-versus-payment. In simple terms, the buyer’s money and the seller’s security can be exchanged at the same time, reducing the possibility that one side of the transaction is completed while the other remains pending. (fortuneindia.com)

That could make the corporate bond market more efficient. Traditional transactions involve several stages of reconciliation between securities and cash records. A tokenised system can bring those records together, potentially reducing settlement time, operational work and counterparty risk.

The technology can also automate certain activities after a bond has been issued. Interest payments, redemptions and other asset-servicing functions can be handled through smart contracts, reducing the need for manual intervention. (financialexpress.com)

Importantly, tokenisation does not change the basic rights of investors. SEBI has said investors in tokenised corporate bonds will have the same rights as investors holding conventional bonds. The pilot is testing the technology and market infrastructure, rather than creating a separate class of securities with different investor protections. (livemint.com)

The pilot is initially focused on corporate bonds and institutional participants. Retail investors are not yet the main target, but regulators have indicated that wider participation could be considered as the system develops.

That could eventually be significant for India’s bond market. Tokenisation has the potential to make certain financial assets easier to divide and transfer, which could support fractional ownership and make high-value investments more accessible. However, moving from a controlled pilot to a broad retail system would require further testing, regulatory clarity and safeguards.

The project also involves several major financial-market institutions, including NSDL, CDSL, NSE, BSE, banks and NPCI. Their participation is important because Demat 2.0 needs to work across different parts of India’s existing financial infrastructure rather than operate as a standalone blockchain platform. (indianexpress.com)

The move comes as Indian regulators increasingly experiment with digital financial infrastructure. The RBI has been expanding the use cases for its digital rupee, while SEBI has been examining how emerging technologies can improve securities-market operations.

The central bank is also exploring the possibility of tokenising other assets, including gold, as it looks at expanding the Unified Market Interface. That suggests tokenisation could eventually move beyond corporate bonds if the underlying technology proves reliable. (economictimes.indiatimes.com)

There are still challenges. A pilot cannot establish how the system will perform during periods of heavy market activity or across a much larger number of investors. Questions around custody, taxation, accounting, secondary-market trading and operational risks will also need to be addressed before tokenised securities become widely used.

SEBI’s Demat 2.0 pilot is therefore less about replacing the existing demat system immediately and more about testing what the next generation of India’s securities infrastructure could look like.

If the experiment succeeds, corporate bonds could eventually move through a system where ownership, payment and post-trade services are connected digitally. That could make India’s debt market faster, more automated and easier to monitor while giving regulators a stronger technological foundation for the future.

The initiative marks a significant shift from simply holding securities electronically to creating a more integrated digital market infrastructure. For investors, the change may not be visible immediately, but the technology being tested could eventually reshape how corporate bonds, digital securities and other financial assets are issued and settled in India.

 

Categories
Corporate

Ather shares gain 3% to ₹1,625 after Nomura call

Ather Energy shares rose nearly 3% to ₹1,625 on Thursday after brokerage Nomura turned more positive on the electric two-wheeler maker and raised its target price. The stock gained as investors responded to expectations of faster electric vehicle adoption and stronger growth for Ather.

Nomura has raised its target price for Ather to ₹1,926 from ₹1,714 while maintaining its Buy rating. The brokerage believes demand for electric two-wheelers is developing faster than previously expected, creating room for Ather to increase sales and improve its financial performance.

A key part of the positive outlook is Ather’s recent launch of the Konarc, a new electric scooter aimed at a wider customer base. The model starts at around ₹1 lakh and marks the company’s push beyond its traditional premium positioning.

The Konarc launch comes at a time when India’s electric two-wheeler market is expanding rapidly. Electric two-wheelers crossed a 10% share of overall two-wheeler sales in August, reflecting growing consumer acceptance of EVs.

Nomura expects this trend to continue and has increased its estimates for Ather’s volumes and earnings. The brokerage sees faster EV penetration, new products and an expanding addressable market supporting the company’s growth over the next few years.

The Konarc could become particularly important because it gives Ather access to customers looking for more affordable electric scooters. The company has largely been associated with technology-focused and premium products, while competition in the mass-market segment has intensified.

The broader EV market is also attracting fresh investment from manufacturers. Ultraviolette, another Indian electric two-wheeler company, said it plans to invest about $82 million in a new plant in Hosur, Tamil Nadu, with an initial annual capacity of 2.5 lakh vehicles. The move reflects expectations of sustained growth in electric two-wheelers.

Ather’s stock has already delivered a strong performance this year. The shares have gained sharply over the past year, with the latest rally adding to investor interest in the electric mobility sector.

The company is also benefiting from a stronger competitive position as India’s EV market matures. Better battery technology, improving charging infrastructure and growing awareness of lower running costs are encouraging more buyers to consider electric scooters.

Ather’s performance will now be closely watched as the company begins scaling up the Konarc and attempts to convert the rising interest in electric mobility into higher volumes. Nomura’s latest target suggests that the brokerage expects the company’s growth to accelerate as EV adoption moves into a broader phase.

The ₹1,625 level reached by Ather shares on Thursday therefore reflects more than a one-day market move. It comes amid increasing expectations that new products such as the Konarc, combined with faster electric two-wheeler adoption, could improve Ather’s growth trajectory and financial performance.

 

Categories
Beyond

Delhi HC puts Beco’s HUL campaign on hold

The Delhi High Court has temporarily stopped Beco from running an advertising campaign that targeted Hindustan Unilever’s popular household brands Surf Excel and Vim, saying the campaign appeared to make claims that could harm the rival company’s reputation without adequate scientific support.

The order has brought a fresh focus on the limits of comparative advertising in India, particularly when brands use claims about the safety or performance of competing products to promote their own products.

The dispute involves Kwick Living (India) Pvt Ltd, which operates the home-care brand Beco, and Hindustan Unilever Ltd (HUL), the company behind Surf Excel and Vim. HUL approached the Delhi High Court seeking an interim injunction against Beco’s campaign, arguing that the advertisements were misleading and disparaging.

The court found, at the preliminary stage, that Beco’s advertisements conveyed the impression that HUL’s products could cause skin irritation, itching and eczema. The court also noted that such claims could affect the reputation of the brands if they were presented to consumers without adequate evidence.

The campaign was promoted under the theme “War on What’s Hidden”, with Beco drawing attention to ingredients and chemicals used in household cleaning products. The advertisements compared Beco’s products with established brands and questioned the safety of products used by consumers in their homes.

Such advertising can be a powerful way for newer consumer brands to stand out in a crowded market. However, the legal difficulty begins when comparisons move beyond highlighting a product’s own features and start making potentially damaging claims about a competitor.

The Delhi High Court’s intervention reflects that distinction. At this stage, the court has not finally decided whether every allegation made by HUL is correct. The proceedings concern interim relief, meaning the court is assessing whether immediate restrictions are necessary while the larger dispute continues.

The court’s concern was also linked to the overall impression created by the campaign. Even if individual statements in an advertisement appear capable of being defended, the way they are presented together can influence how consumers understand the message.

That becomes especially important when an advertisement deals with health or safety. Claims involving skin irritation, allergies or eczema can influence purchasing decisions because consumers may interpret them as warnings about the safety of a product.

The case therefore goes beyond a routine fight between two FMCG companies. It raises a broader question about how far brands can go when comparing themselves with market leaders.

Comparative advertising itself is not prohibited. Companies can point out differences between their products and competitors’ products, provided the claims are not misleading or unfairly damaging. The problem arises when a comparison crosses into product disparagement, where an advertisement creates an unjustifiably negative impression about another company or its products.

HUL argued that Beco’s campaign crossed that line. The company sought protection for its brands and asked the court to prevent the continued publication and dissemination of the advertisements.

The court has now restrained the campaign at the interim stage. A recent report said Beco has been directed to withdraw the disputed advertisements within a week, putting an immediate pause on the campaign while the legal proceedings continue.

The development is significant for India’s fast-growing home-care and personal-care market. Established brands such as Surf Excel and Vim compete with a growing number of newer companies that market themselves around natural, eco-friendly or chemical-conscious products.

Beco has built its positioning around environmentally conscious household products, while large FMCG companies have increasingly responded to changing consumer preferences around sustainability, ingredients and product safety.

This competition has made advertising an important part of the battle for consumers. Brands are increasingly using social media and digital campaigns to communicate directly with shoppers, making controversial advertising capable of reaching large audiences very quickly.

That also increases the legal risks. A claim that once appeared in a limited print campaign can now spread rapidly through social media, videos and online marketplaces.

The court’s order sends a message that advertising claims, particularly those involving health and safety, need to be backed by credible evidence. Businesses cannot necessarily rely on creative presentation if the overall message gives consumers a potentially misleading impression.

The dispute also highlights the importance of evidence in comparative advertising. A company seeking to say that its product is safer, better or healthier than a competing product needs to be able to support that claim.

 

Claims made in a campaign should not automatically be treated as established scientific facts, particularly when they concern health effects.

The legal battle between Beco and HUL is not over with the interim order. The court will eventually have to consider the wider issues raised by the parties and determine whether the disputed advertising violates the applicable legal standards.

Until then, the campaign remains restricted, giving HUL temporary protection against advertisements that the court found could damage its brands and mislead consumers.

The case could become an important reference point for the FMCG sector because it comes at a time when established companies and challenger brands are increasingly competing not only on price and performance, but also on claims around sustainability, ingredients, health and safety.

The Beco-HUL dispute shows how quickly an advertising strategy can move from a marketing campaign into a courtroom battle when a competitor believes its brand reputation is at stake.

 

Categories
Corporate

Sensex falls 650 points, Nifty slips below 23,350

Indian equity markets remained under pressure on Friday, with the Sensex falling more than 650 points and the Nifty 50 slipping below the 23,350 mark. Rising crude oil prices, continuing tensions in West Asia, a weaker rupee and cautious global markets kept investors on edge.

Selling was visible across several major sectors, although information technology stocks offered some support.

The latest decline comes after a volatile week for the Indian stock market. Investors have been closely tracking developments in West Asia as higher crude prices raise concerns over India’s inflation, trade deficit and corporate earnings outlook.

Brent crude remained above the $100-a-barrel mark, adding to worries for oil-importing economies such as India. Higher crude prices increase the country’s import bill and can put additional pressure on the Indian rupee. They can also raise input and transportation costs for companies, potentially squeezing profit margins.

The rupee also remained weak against the US dollar, adding to the pressure on domestic markets. A weaker currency makes crude imports more expensive and can further complicate India’s inflation outlook if oil prices remain elevated for a prolonged period.

Selling was particularly visible in financial, automobile, metal and other cyclical stocks.

Bajaj Finance emerged among the biggest Sensex losers, while Mahindra & Mahindra (M&M) also remained under pressure. Tata Steel, UltraTech Cement, Axis Bank and IndiGo were among other stocks facing selling pressure.

Metal stocks were especially weak as investors assessed the impact of higher energy costs and uncertainty surrounding global growth. Concerns over elevated bond yields and a stronger US dollar also weighed on the sector.

The broader weakness in financial stocks reflected investor caution over valuations and interest rates. Higher bond yields can make borrowing more expensive and reduce the attractiveness of equities, particularly when economic uncertainty is already elevated.

Despite the overall weakness, some technology stocks managed to stay in positive territory.

Tech Mahindra and Infosys were among the leading Sensex gainers, while ITC, Power Grid and HCL Technologies also traded higher. The relative strength in IT stocks came as the rupee remained weak against the dollar.

A weaker rupee can support Indian IT companies because a large portion of their revenue comes from overseas markets. However, the gains in the sector were not enough to offset the broader selling across the market.

Foreign investor activity remained another concern for Dalal Street. Foreign institutional investors continued to sell Indian equities, adding to the pressure created by global risk-off sentiment.

Domestic institutional investors have provided some support, but the market remains sensitive to overseas fund flows. Sustained foreign selling can weigh on major indices and keep volatility elevated.

Market breadth also reflected the cautious mood, with declining stocks outnumbering gainers. The weakness extended beyond large-cap stocks, showing that investors were reducing exposure across the broader market rather than limiting selling to a few heavyweights.

The pressure on Indian equities was also influenced by weakness across Asian markets. Investors globally are assessing the impact of higher oil prices on inflation and economic growth.

US markets also remained under pressure as crude prices climbed sharply. Higher energy prices could make it harder for central banks to ease monetary policy quickly if inflationary pressures return.

The direction of crude oil prices remains the biggest immediate trigger for the Indian stock market. Any further escalation in West Asia that threatens oil supplies could push prices higher and increase pressure on Indian equities.

Investors will also track the rupee, foreign fund flows, global bond yields and upcoming inflation data for signs of how the latest oil shock could affect the domestic economy.

The Nifty’s movement around the 23,350 level will remain important in the near term. A sustained break below this zone could keep sentiment weak, while a recovery above nearby resistance levels may provide some relief.

The market remains caught between strong domestic economic fundamentals and a difficult global backdrop. With crude oil prices elevated and geopolitical uncertainty showing little sign of easing, traders are likely to remain cautious and watchful for fresh developments.

 

Categories
Beyond

Bessent’s $6 bn buyback fails to soothe investors

US Treasury Secretary Scott Bessent’s latest attempt to ease pressure in the government bond market has failed to reassure investors, with Treasury yields climbing after the administration announced a $6 billion buyback of long-dated government debt.

The Treasury said it plans to repurchase up to $6 billion of 10-year and 20-year Treasury bonds. The move is three times the size of its recent operations and is aimed at improving liquidity in older government securities while helping manage borrowing costs.

Instead of calming the market, however, the announcement was followed by a rise in Treasury yields. The benchmark 10-year Treasury yield climbed to around 4.85%, close to its highest level in nearly three years. Yields on longer-dated debt also moved higher, with the 30-year Treasury yield rising above 5.2%. Bond prices and yields move in opposite directions, so the increase in yields reflects renewed selling pressure in the Treasury market.

The latest buyback was larger than the Treasury’s previous operations, but investors had been expecting an even stronger intervention.

Bessent had previously suggested that the Treasury could significantly increase the size of its buybacks. That raised expectations in financial markets that the latest operation could be closer to $8 billion-$10 billion.

The $6 billion announcement therefore left some investors disappointed. Treasury officials have argued that the buyback programme is designed primarily to improve the functioning of the government bond market rather than directly force yields lower.

The gap between expectations and the actual announcement appears to have contributed to the negative market response. Some investors had been waiting for the Treasury’s decision before making larger moves in the bond market.

The Treasury’s strategy involves buying older, less-liquid securities while issuing newer bonds. The idea is to improve liquidity across the market and make it easier for investors to trade Treasury securities.

One of the biggest concerns for investors is the renewed rise in energy prices. Brent crude has moved above $100 a barrel amid continuing tensions in the Middle East and the US-Iran conflict.

Higher oil prices create a difficult environment for the Federal Reserve because they can add to inflation at a time when markets are already assessing the future path of interest rates.

If inflation remains elevated, investors may expect interest rates to stay higher for longer. That can push Treasury yields higher as investors demand greater returns to hold longer-term government debt.

Recent US economic data has also kept the market from becoming overly confident about an immediate decline in rates. A relatively resilient economy can support higher yields because investors expect stronger growth and potentially persistent inflation.

The rise in Treasury yields is important far beyond the bond market. US government debt is considered a benchmark for borrowing costs across the economy.

When Treasury yields rise, borrowing can become more expensive for households, businesses and the government itself. Mortgage rates, corporate borrowing costs and other forms of long-term financing can all be influenced by movements in government bond yields.

Higher yields can also affect stock valuations. When government bonds offer more attractive returns, investors may have less incentive to take on the additional risk associated with equities.

The impact is particularly relevant for high-growth technology and artificial intelligence companies, whose valuations depend heavily on expectations of future earnings. Higher interest rates reduce the present value of those future cash flows and can therefore put pressure on high-priced stocks.

For some investors, the bigger concern is not the size of the Treasury buyback but the government’s overall fiscal position.

The US federal debt has reached record levels, while the government continues to run large budget deficits. As the Treasury issues more debt to finance government spending, investors must absorb a large supply of bonds.

That can keep upward pressure on yields, particularly if investors demand higher compensation for holding long-term debt.

This is why some market participants argue that buybacks alone cannot solve the problem. A sustained decline in long-term Treasury yields would require stronger action on the underlying deficit and debt trajectory, along with a stable inflation outlook.

The Treasury’s $6 billion operation is therefore being viewed as a tool to improve market functioning rather than a solution to America’s broader fiscal challenges.

The immediate reaction to Bessent’s announcement shows how difficult it is for policymakers to influence the bond market when several powerful forces are moving in the opposite direction.

The Treasury has increased the size of its buybacks, but investors are still focused on inflation, oil prices, government borrowing and the Federal Reserve’s interest-rate outlook.

The next test will be whether Treasury yields settle after the initial reaction and whether subsequent buyback operations attract stronger investor confidence. A sustained move towards 5% for the 10-year Treasury yield would be closely watched because it could put additional pressure on both bonds and equities.

 

Categories
Beyond

US suspends Cognizant green-card filings during visa probe

The United States has suspended new green-card related filings by IT services company Cognizant as authorities investigate possible fraud and misuse of employment-based immigration programmes.

The US Department of Labour has stopped Cognizant from submitting new applications under the Permanent Labour Certification (PERM) programme while the investigation continues. Software company Cloudera has also faced a similar suspension.

The move is significant for Cognizant because PERM is an important step for foreign workers seeking an employment-based green card in the US. The process generally requires an employer to show that there are no qualified US workers available for a particular job and that hiring a foreign worker will not negatively affect American workers’ wages and working conditions.

The latest action does not mean that Cognizant employees who already have approved applications will lose their immigration status. The suspension is focused on new PERM filings, meaning workers who have not yet reached that stage could face delays in starting their green-card process. Existing approvals are not automatically cancelled by the decision.

The US Labour Department’s Inspector General Anthony D’Esposito announced the action as part of a broader investigation into possible fraud involving the H-1B and PERM visa programmes. The investigation is being conducted with the White House Fraud Task Force and other federal authorities.

US officials have not publicly provided detailed findings against Cognizant, and the investigation is still underway. The allegations should therefore not be treated as established wrongdoing by the company.

The action comes as the Trump administration has stepped up scrutiny of employment-based immigration. US authorities have been examining whether companies are using visa programmes in ways that could disadvantage American workers or avoid labour and wage requirements.

The development for Cognizant is particularly important because the company has historically been a major employer and sponsor of foreign technology professionals in the US.

Cognizant was founded in Chennai in 1994 and later moved its headquarters to New Jersey. The company has a large US workforce and has been one of the major users of the H-1B visa programme, which allows American employers to hire foreign professionals for specialised jobs.

According to data cited in reports, Cognizant had received approval for 3,510 H-1B petitions as of June 30, 2026. The figure was substantially higher in 2020, when the company received approval for 9,413 petitions.

The latest suspension is therefore likely to attract attention among Indian technology professionals working in the US. Many Indian IT workers enter the country through the H-1B route and later depend on employer sponsorship for permanent residency.

A delay in PERM filings could affect employees who are waiting for their employers to begin the green-card process. However, the suspension does not mean that all Cognizant employees on H-1B visas have been prevented from working in the US.

The distinction between H-1B visas and PERM applications is important. The H-1B is a temporary work visa, while PERM is part of the process that can eventually lead to an employment-based green card. A suspension of new PERM filings therefore affects the permanent-residency pathway rather than automatically ending an employee’s existing work authorisation.

The action against Cognizant also highlights the wider pressure facing India’s IT industry in the US. Companies such as TCS, Infosys, Wipro and HCL Technologies have significant American operations and employ large numbers of Indian professionals.

While the latest order is directed at Cognizant and Cloudera, it has raised questions about whether US authorities could increase scrutiny of other companies that rely heavily on foreign-worker programmes.

The investigation is part of a broader US effort to tighten enforcement around employment-based immigration. Authorities have argued that programmes such as H-1B and PERM should be used to fill genuine skill shortages rather than replace American workers or put downward pressure on wages.

These tighter checks for IT companies could mean greater compliance requirements and closer examination of recruitment, wages, job descriptions and labour-certification applications.

The effect on green-card timelines is of immediate concern. The US employment-based immigration system already involves long waiting periods for many Indian nationals. Any pause at the PERM stage could add further uncertainty for employees hoping to secure permanent residency.

At the same time, it is too early to know how long the Cognizant suspension will remain in place. The Labour Department has not indicated when its investigation will be completed.

The company-specific action also comes at a sensitive time for the Indian IT sector, with US immigration policy becoming an increasingly important business issue. Changes to H-1B rules, visa costs and green-card procedures can directly affect how technology companies recruit and deploy skilled workers in their largest overseas market.

The key impact is straightforward: Cognizant cannot file new PERM applications while the investigation continues. Existing approvals are not automatically cancelled, and the action should not be interpreted as a blanket suspension of Cognizant’s H-1B workers.

The outcome of the investigation will determine what happens next. Until then, Cognizant’s employees seeking permanent residency, along with the wider Indian IT industry, will be watching closely as Washington continues its tougher approach to employment-based immigration.

 

Categories
Corporate

Sensex tumbles 600 points, Nifty slips below 23,500

The markets came under heavy selling pressure on Wednesday as rising crude oil prices, renewed geopolitical tensions and weakness in technology stocks combined to unsettle investors. The Sensex fell more than 600 points in early trade, while the Nifty 50 slipped below the crucial 23,500 mark.

The BSE Sensex opened 584 points lower at 74,993.37, down 0.77%, while the Nifty 50 declined 147 points, or 0.62%, to 23,487.85. By around 10 am, the Sensex was down about 0.83% at 74,954, while the Nifty had fallen 0.67% to 23,474.40.

The sharp fall came after another weak session on Tuesday, when the Sensex had dropped 555 points and the Nifty closed 144 points lower. The latest decline pushed the benchmark indices deeper into a period of market volatility, with investors increasingly focused on crude oil, global interest rates and developments in the Middle East.

Crude oil emerged as the biggest concern for Indian equities. Brent crude moved closer to $100 a barrel after fresh escalation in the Iran-US conflict raised fears of further disruption to global oil supplies. Brent was reported at around $99.50 a barrel, after rising for a fourth consecutive session.

For India, which relies heavily on imported crude, a sustained rise in oil prices can quickly become a broader economic concern. Higher energy costs can widen the trade deficit, put pressure on inflation and affect corporate margins. Investors are also watching the possibility of higher interest rates in the US if inflationary pressures persist.

The pressure was particularly visible in technology stocks. The Nifty IT index fell around 3%, with major names including HCL Technologies, Tech Mahindra, Infosys and Tata Consultancy Services among the prominent losers. HCL Tech declined more than 3% at the open, while Tech Mahindra and Infosys also fell sharply. TCS was down around 1.8%.

Coforge was among the biggest individual casualties. The stock fell as much as 9% after chairman Om Prakash Bhatt resigned following concerns raised by an internal audit over the company’s board evaluation process. The development added another layer of pressure to an already weak IT sector.

Not every stock was caught in the sell-off. Sun Pharma emerged among the notable gainers in the early Sensex trade, while Larsen & Toubro and Kotak Mahindra Bank also posted modest gains. The resilience in pharmaceutical and select financial stocks provided some support, although it was not enough to offset the broader selling pressure.

Biocon was another stock in focus. Its shares gained more than 3% to around ₹404 after 1.65 crore shares changed hands in a block deal worth about ₹638 crore. The transaction involved Active Pine, which was looking to sell up to 1.66 crore shares, or roughly 1% of Biocon’s equity.

Sectoral performance reflected the cautious mood. IT and IT-enabled services were the biggest laggards, while auto, banks, financial services, FMCG, media and realty stocks also remained under pressure. Metals bucked the broader trend and traded higher, while oil and gas and healthcare stocks showed relative resilience.

Foreign portfolio investors are also becoming a source of concern. According to market updates, FPIs sold around $1.6 billion of Indian equities over five of the past six trading sessions after buying nearly $6.85 billion between mid-June and late August. Rising crude prices and higher global bond yields have reduced the appeal of emerging-market assets.

Domestic institutional investors have provided some cushion, but the shift in foreign flows has added to the pressure on large-cap stocks. At the same time, the growing pipeline of IPOs and qualified institutional placements is drawing money away from the secondary market, making liquidity conditions another factor investors are watching closely.

The market is also keeping an eye on the National Stock Exchange’s proposed IPO. The NSE is reportedly considering reducing the issue size to around ₹24,000-25,000 crore from the earlier proposed ₹30,000 crore. Meanwhile, Reliance Industries is preparing to raise around ₹12,500 crore through the domestic bond market, highlighting continued corporate fundraising activity despite the unsettled equity environment.

Technically, the immediate support for the Nifty is seen around 23,500-23,450, followed by 23,300. The 23,800-23,850 zone remains an important resistance area. A sustained move above 24,000 could improve sentiment, but for now, investors are likely to remain highly sensitive to crude prices and developments in the Middle East.

With oil approaching the psychologically important $100 mark and technology stocks facing renewed selling, investors are likely to remain cautious until there is greater clarity on geopolitical tensions, crude prices and the global interest-rate outlook.