Author: Sreelatha M

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Johnson & Johnson settles talc lawsuits for $5.5 bn

Johnson & Johnson has announced a $5.5 billion settlement to resolve tens of thousands of lawsuits claiming its talc-based baby powder and other talc products caused ovarian cancer. The agreement, one of the largest product liability settlements in US history, aims to end years of legal uncertainty while offering compensation to thousands of women and families who alleged they developed cancer after long-term use of the company’s products.

The proposed settlement covers approximately 76,000 ovarian cancer lawsuits filed against the healthcare giant across the United States. However, the agreement will become effective only if at least 95% of eligible claimants agree to its terms. If that threshold is reached, payments are expected to begin next year and continue over several years.

For many families, the announcement represents the possibility of finally closing a painful chapter. Numerous women claimed they had regularly used Johnson’s Baby Powder and other talc-based products for personal hygiene over several decades, believing them to be safe. After being diagnosed with ovarian cancer, many turned to the courts, alleging the products were responsible for their illness.

Johnson & Johnson has continued to reject those allegations. The company said it agreed to the settlement to avoid prolonged litigation rather than because of any admission of wrongdoing. It maintained that extensive scientific research and independent testing support the safety of its talc products and that they do not cause cancer.

The legal battle over talc products has stretched for more than a decade, becoming one of the most closely followed corporate lawsuits in recent years. Plaintiffs argued that some talc products contained asbestos, a substance known to cause cancer, and that long-term exposure increased the risk of ovarian cancer. Johnson & Johnson has consistently denied that its consumer talc products ever contained asbestos or posed a health risk.

The settlement follows several failed attempts by the company to resolve the lawsuits through bankruptcy proceedings. Those efforts were rejected by US courts, which ruled that the legal strategy could not be used to settle the claims. After those setbacks, the company entered direct negotiations with lawyers representing thousands of claimants, leading to the current agreement.

Although the settlement focuses on ovarian cancer cases, it does not resolve every lawsuit linked to talc products. Some claims involving mesothelioma and other asbestos-related illnesses have been handled separately, while a limited number of cases may continue through the courts.

Johnson & Johnson stopped selling its talc-based baby powder in the United States and Canada in 2020 after demand declined and legal scrutiny increased. In 2023, the company replaced the product worldwide with a cornstarch-based version, saying the change reflected evolving consumer preferences and market trends rather than safety concerns.

Legal experts say the settlement could mark a turning point in one of the largest mass tort cases involving consumer healthcare products. If approved by the required number of claimants, it would significantly reduce the company’s legal exposure and bring certainty to thousands of pending cases.

Law firms representing many of the plaintiffs welcomed the proposed deal, saying it could provide long-awaited financial support to women and families who have spent years pursuing legal action. Several lawyers described the agreement as an important step towards resolving litigation that has caused emotional and financial strain for thousands of people.

The settlement also carries significant business implications for Johnson & Johnson. The healthcare company has spent years dealing with mounting legal costs, courtroom battles and uncertainty surrounding the talc litigation. Resolving the majority of the claims would allow the company to focus more fully on its pharmaceutical and medical technology businesses, which continue to drive its global growth.

Industry analysts believe investors are likely to view the settlement positively because it reduces one of the biggest legal risks facing the company. However, they also note that the agreement still depends on overwhelming support from claimants before it can be implemented.

Consumer safety advocates say the case has had a lasting impact beyond the courtroom. The lawsuits prompted greater public awareness about product safety, ingredient transparency and corporate accountability. The litigation also encouraged manufacturers across the consumer healthcare industry to review product formulations and strengthen safety testing.

For the women and families involved, however, the case has always been about more than legal arguments or corporate finances. Many plaintiffs say they spent years seeking recognition of their experiences and accountability from one of the world’s largest healthcare companies.

If the settlement receives the necessary approval, it could finally bring closure to thousands of families while ending one of the most significant product liability disputes in modern corporate history. Even as Johnson & Johnson continues to deny that its talc-based products caused cancer, the proposed $5.5 billion talc settlement marks a landmark moment in the long-running Johnson & Johnson baby powder litigation, bringing the company closer to resolving a controversy that has shaped consumer product safety debates for years.

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Gold slips to ₹1,42,940, silver at ₹2,18,920

Gold and silver prices traded lower in India on Tuesday, July 28, with weakness seen across both the domestic futures market and retail bullion prices. On the Multi Commodity Exchange (MCX), gold futures slipped to ₹1,42,940 per 10 grams, while silver futures declined to ₹2,18,920 per kg during early trade. The softer trend was reflected in the retail bullion market as well, where 24-carat and 22-carat gold prices edged lower across major cities amid cautious investor sentiment ahead of the US Federal Reserve’s policy meeting.

The decline in MCX gold prices came despite gains in international bullion markets, underscoring the impact of domestic factors such as profit booking, rupee movements and futures-market positioning. Traders remained cautious as global investors awaited fresh cues on interest rates and inflation.

According to the latest retail bullion rates, 24-carat gold in Delhi was priced at ₹1,42,410 per 10 grams, while 22-carat gold stood at ₹1,30,543 per 10 grams. The silver price in the national capital was ₹2,17,830 per kg.

In Mumbai, 24-carat gold was selling at ₹1,42,660 per 10 grams, while 22-carat gold was available at ₹1,30,772 per 10 grams. The city’s silver rate stood at ₹2,18,210 per kg.

In Chennai, 24-carat gold was quoted at ₹1,43,080 per 10 grams, among the highest in the country, while 22-carat gold was priced at ₹1,30,964 per 10 grams. Silver was available at ₹2,18,870 per kg.

In Hyderabad, 24-carat gold traded at ₹1,42,870 per 10 grams, while 22-carat gold stood at ₹1,30,964 per 10 grams. The silver rate was ₹2,18,730 per kg.

In Bengaluru, 24-carat gold was priced at ₹1,42,750 per 10 grams, while 22-carat gold was quoted at ₹1,30,854 per 10 grams. Silver was trading at ₹2,18,560 per kg.

In Kolkata, the 24-carat gold rate stood at ₹1,42,450 per 10 grams, while 22-carat gold was available at ₹1,30,579 per 10 grams. Silver was quoted at ₹2,18,100 per kg.

The variation in gold prices across Indian cities is primarily due to transportation costs, local taxes, logistics, dealer margins and regional demand. The final price paid by consumers may also differ because of making charges and GST levied by jewellers.

Globally, spot gold prices edged higher as investors sought the safety of precious metals despite easing tensions in the Middle East. A weaker US dollar also supported international bullion prices by making gold more attractive for overseas buyers.

International spot gold was trading near $4,087.59 per ounce, while US gold futures hovered around $4,090 per ounce. Market participants also tracked the decline in crude oil prices after geopolitical tensions eased, reducing inflation concerns but keeping demand for safe-haven assets intact.

The spotlight is now on the US Federal Reserve’s monetary policy decision, with markets widely expecting interest rates to remain unchanged. Investors are awaiting guidance from the central bank on the future interest-rate trajectory, which is likely to influence global bullion prices and investment flows into precious metals.

Silver also remained under pressure in domestic trade. Apart from investment demand, the metal is heavily influenced by industrial consumption, particularly from the electronics, renewable energy and automobile sectors. Any shift in global manufacturing activity or economic outlook can therefore have a greater impact on silver prices than on gold.

Market analysts said bullion prices are likely to remain volatile in the near term as investors react to the US Federal Reserve’s policy outcome, movements in the US dollar, crude oil prices and geopolitical developments. Domestic bullion prices will also be influenced by the rupee’s movement against the dollar and trends in the futures market.

For now, jewellers and investors are expected to closely monitor global cues before taking fresh positions. While the recent decline offers some relief to buyers, analysts believe the overall trend in the Indian bullion market will continue to depend on international gold prices, central bank signals and global economic developments over the coming sessions.

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Corporate

Sensex up 100 points, Nifty holds above 24,000

Indian benchmark equity indices extended their recovery for a second consecutive session on Tuesday, supported by easing crude oil prices, encouraging corporate earnings and positive global cues. The BSE Sensex gained over 100 points in early trade, while the NSE Nifty 50 held firmly above the crucial 24,000 mark, as buying in IT and banking stocks outweighed losses in select FMCG and defence counters.

The upbeat opening followed Monday’s sharp rally, when the benchmark indices snapped a five-day losing streak amid improving global sentiment and renewed buying by investors.

Technology stocks emerged as the biggest drivers of Tuesday’s rally. Tata Consultancy Services (TCS), Infosys, Tech Mahindra, HDFC Bank and Tata Power were among the top gainers on the Sensex, supported by positive earnings expectations and optimism over the sector’s medium-term growth prospects. Investors continued to favour large-cap stocks with strong fundamentals as the June-quarter earnings season gathered pace.

In contrast, Hindustan Unilever Ltd (HUL), Bharat Electronics Ltd (BEL), Coal India, Asian Paints and a few consumer-focused stocks traded in the red. HUL remained under pressure after reporting weaker-than-expected quarterly earnings, while BEL and Coal India witnessed profit booking following their recent gains and cautious investor sentiment around their earnings outlook.

Market participants said easing geopolitical tensions in the Middle East and the decline in global crude oil prices have significantly improved investor confidence. India, which imports nearly 85 per cent of its crude oil requirement, stands to benefit from lower oil prices as they help reduce inflation, ease pressure on the country’s import bill and improve corporate profitability.

The moderation in crude prices has also eased concerns over inflationary pressures, giving investors confidence that domestic economic growth and corporate earnings could remain resilient despite uncertainties in the global economy.

Monday’s rally had already signalled a shift in market sentiment. The Sensex surged nearly 776 points, while the Nifty gained more than 228 points, adding over ₹5 lakh crore to the market capitalisation of BSE-listed companies. Tuesday’s gains indicated that investors were willing to build on that momentum, although buying remained selective.

The ongoing corporate earnings season continued to dictate stock-specific movements. Companies delivering better-than-expected financial performance attracted strong investor interest, while those reporting weaker earnings or cautious future guidance faced selling pressure.

Information technology stocks remained in focus after analysts highlighted the sector’s relatively stable demand outlook. Expectations that Indian IT companies would continue benefiting from global digital transformation initiatives encouraged fresh buying despite uncertainty surrounding international economic growth.

Banking stocks also supported the benchmark indices, with investors expecting healthy credit growth, stable asset quality and improving profitability to continue driving the sector’s performance over the coming quarters.

Meanwhile, the broader market showed mixed trends. While several large-cap stocks traded higher, mid-cap and small-cap indices witnessed limited movement as investors preferred fundamentally strong companies over riskier bets. Analysts said elevated valuations in certain segments of the broader market have made investors increasingly selective.

Global cues also remained supportive. International markets found relief after crude oil prices softened amid signs of easing geopolitical tensions. However, investors continued to remain cautious ahead of key global events, particularly the US Federal Reserve’s monetary policy meeting scheduled later this week.

Although the US central bank is widely expected to keep interest rates unchanged, investors will closely monitor its policy commentary for clues on future rate cuts and the outlook for inflation. Any indication of a prolonged higher-interest-rate environment could influence foreign investment flows into emerging markets, including India.

Foreign Institutional Investors (FIIs) continue to play a significant role in determining short-term market direction. Their investment decisions remain closely linked to global interest rates, oil prices, geopolitical developments and currency movements. At the same time, consistent buying by Domestic Institutional Investors (DIIs) has helped cushion the market from sharp declines during recent bouts of foreign selling.

Analysts believe the Nifty’s ability to hold above the psychologically important 24,000 level is encouraging for market sentiment. Sustaining above this level could trigger further buying interest, although volatility is expected to remain high due to global macroeconomic uncertainties and the ongoing earnings season.

For retail investors, the market’s turnaround over the past two sessions highlights how quickly sentiment can change. Just days ago, concerns over rising crude oil prices and geopolitical tensions had triggered heavy selling across Dalal Street. The recent decline in oil prices, coupled with encouraging corporate earnings and improving global cues, has helped restore confidence among investors.

However, market experts continue to advise caution. They recommend focusing on quality businesses with strong earnings visibility rather than chasing short-term market rallies. With several major companies yet to announce their June-quarter results, stock-specific volatility is likely to remain elevated in the coming days.

Market participants will now closely track the US Federal Reserve’s policy decision, ongoing June-quarter corporate earnings, foreign institutional investor (FII) activity and movements in global crude oil prices for fresh direction. Analysts believe sustained lower oil prices, steady domestic institutional inflows and robust corporate earnings could help the Indian stock market extend its recovery. However, any adverse geopolitical developments or unexpected global policy announcements could keep the Sensex and Nifty volatile in the near term, making investors remain selective even as the broader outlook continues to improve.

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Corporate

Sensex ends 700 points higher, Nifty closes near 24,000

Indian equity benchmarks bounced back sharply on Monday, snapping a five-session losing streak, as easing geopolitical tensions in the Middle East, a steep fall in crude oil prices and strong quarterly earnings fuelled a broad-based rally across Dalal Street.

The BSE Sensex surged 776.43 points, or 1.02%, to settle at 76,835.78, while the Nifty 50 climbed 227.90 points, or 0.96%, to close at 23,995.35, ending just below the key 24,000 mark. The recovery came after benchmark indices had witnessed sustained selling over the past week amid global uncertainty and profit booking.

Market participants said the rally was largely driven by improving global cues after the United States and Iran paused military action, easing concerns over disruptions to global crude oil supplies. The development triggered a sharp decline in Brent crude prices, providing significant relief to oil-importing economies such as India.

Lower crude oil prices are considered positive for the Indian economy as they help reduce inflationary pressures, narrow the current account deficit and lower input costs for several industries. The decline in oil prices also boosted hopes that corporate profit margins could improve in the coming quarters.

Positive global sentiment coincided with encouraging domestic earnings, prompting investors to return to equities. Buying was visible across sectors throughout the trading session, helping benchmark indices recover most of last week’s losses.

All major sectoral indices ended in positive territory, led by information technology, financial services, banking, consumer stocks and oil-linked sectors. Broader markets also mirrored the positive trend, with both mid-cap and small-cap indices closing over one per cent higher, indicating widespread participation in the rally.

Among the day’s top gainers were Infosys, Eternal, IDFC First Bank, AU Small Finance Bank, Asian Paints, CEAT and Kansai Nerolac.

Infosys emerged as one of the biggest contributors to the rally after attracting strong buying interest following favourable brokerage views and optimism surrounding technology spending. Shares of paint manufacturers and tyre companies also advanced as lower crude oil prices are expected to reduce raw material costs, improving margins.

Financial stocks also witnessed renewed buying as investors remained optimistic about steady credit growth and resilient demand despite global headwinds.

Despite the overall strength in the market, a few heavyweight stocks closed lower. HDFC Bank, Trent and Bharat Electronics Ltd (BEL) featured among the top losers on the benchmark indices. Analysts attributed the decline to stock-specific factors and profit booking rather than weakness in the broader market.

HDFC Bank continued to remain under investor scrutiny following recent governance-related developments. Although the stock underperformed during the session, analysts said the broader banking sector remained well supported by improving market sentiment and expectations of healthy loan growth.

Market experts said easing geopolitical tensions played a significant role in restoring investor confidence after heightened volatility over the past week. Concerns over rising oil prices had weighed heavily on global markets, but the latest developments eased fears of supply disruptions, encouraging investors to increase exposure to risk assets.

The ongoing first-quarter earnings season also remained a key driver for the market. Several companies have reported better-than-expected financial results, reinforcing confidence in India’s corporate earnings outlook despite an uncertain global environment.

Analysts noted that healthy earnings growth, coupled with improving macroeconomic indicators, continues to support the long-term investment case for Indian equities. Strong domestic demand, government infrastructure spending and resilient economic activity have also contributed to positive investor sentiment.

Foreign institutional investors (FIIs) showed signs of returning to Indian equities after recent selling, while domestic institutional investors continued to provide steady support. The combined buying by institutional investors helped sustain the rally throughout the day.

Market participants believe the sharp fall in crude oil prices could particularly benefit sectors such as aviation, logistics, paints, chemicals, tyres and consumer goods, where fuel and petroleum derivatives account for a significant share of operating expenses. Lower input costs are expected to improve profitability if crude prices remain stable in the coming months.

Going forward, investors will closely monitor the remaining quarterly earnings announcements, movement in global crude oil prices, foreign fund flows and developments in the Middle East. Global central bank decisions, particularly signals from the US Federal Reserve, are also expected to influence market direction.

Analysts believe volatility could persist in the near term as investors react to global developments. However, India’s strong economic fundamentals, healthy corporate earnings and improving investor confidence are expected to provide support to the market.

Monday’s equity market rally has offered much-needed relief to investors after several sessions of losses. With benchmark indices reclaiming important levels and buying emerging across sectors, Dalal Street has regained positive momentum.

If crude oil prices remain subdued and corporate earnings continue to exceed expectations, analysts expect the Sensex, Nifty, Indian stock market, Dalal Street, stock market today, Q1 earnings, oil prices and FII flows to remain key themes driving investor sentiment in the sessions ahead.

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Piaggio eyes mass scooter push with India-made range

Italian two-wheeler manufacturer Piaggio is preparing to make its biggest move yet in the Indian scooter market. Known for its premium Vespa and Aprilia scooters, the company is now working on an entirely new range of affordable commuter scooters that will be designed, developed and manufactured in India. The new lineup is expected to be launched in the first half of 2027, marking Piaggio’s entry into one of the country’s most competitive and high-volume two-wheeler segments.

The upcoming scooters are aimed at everyday riders who prioritise practicality, fuel efficiency and affordability. This is a significant shift for Piaggio, whose current India portfolio largely caters to premium customers. By entering the commuter segment, the company hopes to increase its market share and tap into millions of potential buyers.

Unlike its existing scooters, the new products are being built on a completely fresh platform created specifically for Indian conditions. The company says this platform will not be limited to a single model but will support an entire family of scooters. Multiple variants with different features and specifications are expected, allowing Piaggio to target a wide range of customers across price points.

Piaggio Vehicles Chairman and Managing Director Diego Graffi said the project is progressing as planned and will result in a new range of scooters developed for India. Instead of extending the Vespa or Aprilia brands into the commuter category, the company will introduce a completely new brand dedicated to this segment. This will allow Piaggio to clearly separate its premium offerings from its mass-market products.

The decision reflects Piaggio’s long-term strategy for India. Vespa will continue to represent stylish, premium scooters inspired by Italian heritage, while Aprilia will remain focused on sporty and performance-oriented models. The new commuter brand, meanwhile, will concentrate on practical mobility solutions for daily use.

India is one of the world’s largest scooter markets, with annual sales touching nearly six million units. The segment continues to be dominated by established players such as the Honda Activa, TVS Jupiter, Suzuki Access and Hero Xoom. These models have earned consumer trust through reliability, low maintenance costs and fuel efficiency. Piaggio believes there is still room for another strong contender, provided it offers the right combination of quality, pricing and features.

For years, Piaggio has maintained only a niche presence in India because its scooters have largely been positioned in the premium category. While Vespa enjoys a loyal customer base, sales volumes remain relatively small compared with mainstream commuter scooters. The upcoming India-focused range is expected to change that by helping the company compete in the country’s largest two-wheeler segment.

The scooters will be manufactured at Piaggio’s Baramati facility in Maharashtra, which already produces Vespa and Aprilia models for both domestic and export markets. Local production will allow the company to increase localisation levels, reduce manufacturing costs and remain competitive on pricing. It also supports the government’s push for greater domestic manufacturing under the ‘Make in India’ initiative.

Although Piaggio has not disclosed technical details, the new architecture is expected to be modular and flexible. This means it can support multiple scooter models and potentially different powertrain options in the future, depending on market demand and regulatory requirements. Such flexibility will also enable the company to introduce updated versions and new variants without developing an entirely new platform every time.

The company has remained tight-lipped about engine specifications, design, pricing and feature lists. However, industry experts believe the scooters will focus on everyday usability, comfortable riding, good fuel economy and modern convenience features to compete effectively against established rivals. Buyers in this segment increasingly expect digital instrument clusters, smartphone connectivity, LED lighting and ample storage space, making these likely additions to the upcoming models.

Piaggio’s decision to develop the scooters in India also underlines the country’s growing importance as a global engineering and manufacturing hub. Instead of adapting products designed for international markets, the company is building these scooters around the needs of Indian customers. This approach is expected to help deliver products that are better suited to local roads, traffic conditions and consumer preferences.

Despite its expansion into the commuter space, Piaggio has clarified that it will continue investing in its premium portfolio. Vespa and Aprilia will remain key pillars of the company’s India strategy, with new models and updates expected in those segments as well. The new commuter brand will complement the existing lineup rather than replace it.

The move comes at a time when competition in the Indian two-wheeler industry is intensifying. Manufacturers are introducing new petrol and electric scooters while focusing heavily on localisation, affordability and advanced technology. By entering the commuter segment with a dedicated India-made platform, Piaggio is positioning itself to compete more aggressively in a market that continues to witness strong demand.

While customers will have to wait until 2027 for the first scooters to reach showrooms, Piaggio’s announcement signals a major change in its India strategy. If the company can combine competitive pricing, dependable performance and modern features with its engineering expertise, the new Made-in-India commuter scooter range could significantly strengthen its presence in India’s booming two-wheeler market and offer buyers another credible alternative in the country’s most popular scooter segment.

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Starship test boosts SpaceX’s reusability ambitions

SpaceX has hailed its 13th Starship test flight as a major success and is now aiming to catch the Starship spacecraft with the launch tower’s mechanical arms during its next mission.

The latest flight successfully deployed 20 next-generation Starlink satellites, restarted a Raptor engine in space and completed a controlled splashdown in the Indian Ocean.

Although the Super Heavy booster was lost during landing, the mission provided valuable data on Starship’s heat shield and reusability.

The progress brings SpaceX closer to its goal of developing a fully reusable rocket for future Moon and Mars missions. Read More

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Oil prices drop 5% after US-Iran attack pause

Global oil prices fell sharply on Monday after the United States and Iran agreed to temporarily halt military attacks, raising hopes of a diplomatic breakthrough and easing concerns over potential disruptions to global crude oil supplies. The development triggered a broad sell-off in the energy market, with Brent crude and West Texas Intermediate (WTI) both posting their steepest single-day declines in weeks.

The latest correction came after several sessions of strong gains driven by fears that escalating tensions between Washington and Tehran could threaten oil production and exports from the Middle East. With both countries signalling a pause in hostilities, traders moved quickly to unwind positions that had factored in a significant geopolitical risk premium.

Brent crude, the international benchmark for crude oil prices, dropped nearly 5% to trade around $91 per barrel, while WTI crude also fell sharply to about $87 per barrel. The decline reversed a large part of last week’s rally, when crude prices surged amid concerns that the conflict could spill over into the broader Gulf region.

The Middle East accounts for a significant share of global oil production, making any military escalation in the region a major concern for energy markets. Investors had feared that continued attacks could disrupt supplies from key producers or threaten shipping through the Strait of Hormuz, one of the world’s busiest energy corridors. Nearly one-fifth of the world’s crude oil passes through the strategic waterway, making it vital to global energy security.

The temporary suspension of military strikes has eased those fears, at least for now. Although the agreement is not a formal ceasefire, it has reduced immediate concerns about supply disruptions and encouraged investors to shift their focus back to market fundamentals.

Energy analysts said the sharp decline in Brent crude prices reflects improving market sentiment rather than weakening demand. Over the past week, traders had added a substantial geopolitical premium to oil prices in anticipation of possible disruptions to exports from the region. Monday’s decline suggests much of that premium has now been removed following signs of de-escalation.

Market participants, however, remain cautious. Analysts warn that the situation remains fragile, and any renewed military action could quickly send oil prices climbing again. The conflict has not been resolved, and the current pause is viewed as a temporary step rather than a lasting peace agreement.

Apart from geopolitical developments, investors are also monitoring the global economic outlook. Stronger economic activity generally boosts demand for crude oil, while slowing growth can weigh on prices. This week, traders are expected to closely watch economic indicators from the United States and China, the world’s two largest economies, for fresh clues about future energy demand.

Another key factor influencing the global oil market is the production strategy of the OPEC+ alliance, led by Saudi Arabia and Russia. The producer group has maintained disciplined output cuts over the past several months to support prices despite concerns over slowing demand. Analysts believe any future changes to OPEC+ production targets could have a significant impact on the direction of crude oil prices.

For India, the world’s third-largest importer of crude oil, the latest decline comes as welcome relief. The country imports more than 85% of its crude oil requirements, making it highly sensitive to fluctuations in international oil prices. A sustained fall in Brent crude could help reduce India’s import bill, narrow the current account deficit and ease inflationary pressures.

Lower crude oil prices also have wider economic benefits. Industries such as aviation, logistics, shipping, manufacturing and chemicals rely heavily on petroleum products, and lower input costs can improve profitability. Reduced fuel costs may also help bring down transportation expenses, potentially easing the prices of several goods and services over time.

However, consumers should not expect an immediate reduction in petrol and diesel prices. Retail fuel prices in India depend on several factors, including international crude prices, exchange rates, taxes, freight costs and refining margins. Oil marketing companies typically assess these variables before making any revisions to pump prices.

Global equity markets responded positively to the easing geopolitical tensions, with investors viewing the development as a sign that a broader regional conflict may be avoided. At the same time, energy stocks faced pressure as falling oil prices are generally expected to reduce earnings for exploration and production companies.

Financial analysts believe volatility in the energy market is likely to persist over the coming weeks. While the pause in attacks has improved sentiment, the geopolitical situation remains unpredictable. Any breakdown in diplomatic efforts or fresh military escalation could quickly restore the risk premium that had supported oil prices in recent days.

The latest market movement highlights how closely crude oil prices, Brent crude, WTI crude, global energy markets, Middle East tensions, US-Iran relations, and oil supply concerns are interconnected. Even a temporary easing of hostilities was enough to trigger a sharp correction, underscoring the sensitivity of commodity markets to geopolitical developments.

For now, traders appear cautiously optimistic that diplomacy will prevail over conflict. If negotiations continue and tensions remain under control, oil prices may stabilise in the near term. However, with geopolitical uncertainty still looming over one of the world’s most critical oil-producing regions, the global crude oil market is expected to remain highly volatile, keeping investors, governments and businesses on alert.

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HCLTech announces ₹14,250 cr AI investment in Odisha

HCLTech has announced a massive investment of ₹14,257 crore to set up its first artificial intelligence (AI) data centre in Odisha, marking one of the biggest private sector investments in India’s AI infrastructure. The project, being developed in partnership with AI startup Sarvam and the Odisha government, is expected to strengthen India’s sovereign AI capabilities while positioning the state as a major technology and innovation hub.

The announcement was made during the Odisha AI Summit 2026, where HCLTech signed a memorandum of understanding (MoU) with the state government. The proposed AI data centre will be established at the upcoming Odisha Sovereign AI Park in Bhubaneswar, a dedicated technology ecosystem designed to support next-generation AI research, computing and innovation.

The investment is seen as a significant step towards building India’s own AI infrastructure at a time when governments and businesses are increasingly looking for secure, locally hosted computing facilities. The project also aligns with the Centre’s broader push for Digital India, AI innovation, and data sovereignty, reducing dependence on overseas infrastructure for critical AI workloads.

According to HCLTech, the ₹14,257-crore project includes support and incentives from the Odisha government. The company said the facility will provide advanced computing power required for training and deploying large AI models while enabling enterprises, startups and public institutions to build AI-powered applications within India.

Unlike conventional data centres that mainly provide cloud storage and computing services, the new AI data centre will be equipped with specialised high-performance computing systems capable of handling complex generative AI models and large-scale machine learning applications. These capabilities are becoming increasingly important as organisations adopt AI across sectors such as healthcare, banking, manufacturing, education, agriculture and governance.

The project will combine HCLTech’s expertise in enterprise technology services with Sarvam’s indigenous AI foundation models. Sarvam, one of India’s leading AI startups, has been working on developing multilingual large language models and AI systems tailored to Indian languages and local use cases.

Together, the two companies plan to create AI solutions that address the specific needs of Indian enterprises and government agencies. The focus will be on delivering secure AI services while ensuring that sensitive data remains within the country, an important requirement for sectors dealing with confidential public and financial information.

HCLTech Chairperson Roshni Nadar Malhotra described the investment as a landmark initiative that reflects the company’s commitment to India’s AI ambitions. She said HCLTech has played a key role in India’s technology journey over the years and now aims to contribute to the country’s emerging sovereign AI ecosystem through long-term investments and strategic partnerships.

She added that the collaboration with the Odisha government and Sarvam would help create an AI ecosystem that supports innovation while enabling India to develop world-class technology capabilities.

HCLTech CEO and Managing Director C. Vijayakumar said the project represents a major milestone in the company’s full-stack AI strategy. He noted that enterprises worldwide are rapidly increasing investments in artificial intelligence, creating strong demand for reliable AI infrastructure.

According to him, Odisha has emerged as an attractive destination for advanced technology investments because of its progressive industrial policies, skilled workforce and improving digital infrastructure. He said the company looks forward to building a robust AI ecosystem in the state that can support customers across India and global markets.

Sarvam Co-founder Vivek Raghavan said the partnership would help accelerate India’s journey towards becoming a global AI leader. He noted that access to domestic computing infrastructure is essential for developing AI models designed specifically for India’s languages, businesses and public services.

Industry experts believe the project will play a crucial role in reducing India’s dependence on foreign AI infrastructure. Most advanced AI models today rely on expensive computing facilities located outside the country. Building high-performance AI infrastructure within India is expected to improve data security, lower operational costs and encourage domestic AI innovation.

The Odisha government has also described the investment as a milestone in its efforts to transform the state into a major technology destination. Officials believe the AI data centre will attract additional investments in cloud computing, semiconductor technologies, AI research and digital services, creating a larger innovation ecosystem around Bhubaneswar.

Alongside the AI data centre, HCLTech has signed a separate agreement with the state government to establish a Global Technology Center in Bhubaneswar. The new campus will have the capacity to accommodate around 5,000 technology professionals and is expected to become operational by 2028.

The technology centre will support software engineering, AI development, cloud services and digital transformation projects while creating high-skilled employment opportunities for engineers and technology graduates from Odisha and neighbouring states.

The twin projects are expected to significantly boost the state’s digital economy while encouraging startups, research institutions and academic organisations to collaborate on AI innovation. Industry observers believe the presence of advanced computing infrastructure will make it easier for Indian startups to build and test AI products without relying heavily on overseas cloud providers.

The announcement also follows HCLTech’s recent strategic investment in Sarvam, reinforcing the company’s ambition to expand beyond traditional IT services into AI platforms, enterprise AI applications and next-generation digital infrastructure.

Also Read: India eases FDI rules for e-commerce exports

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Corporate

Bank of Baroda posts 72% profit decline in Q1

State-owned Bank of Baroda (BoB) reported a sharp 72% year-on-year decline in standalone net profit for the first quarter of FY27, as a one-time legal settlement linked to the NMC Health case significantly impacted its earnings. Despite the steep drop in profit, the bank delivered a healthy operational performance, with steady growth in net interest income (NII), loans and deposits, highlighting the strength of its core banking business.

The public sector lender posted a standalone net profit of ₹1,278 crore for the April-June quarter, compared with ₹4,541 crore in the corresponding period last year. On a sequential basis as well, profit declined sharply from the March quarter. However, the fall was not due to weakness in lending or business operations but was largely driven by an exceptional one-time expense.

The biggest factor behind the earnings decline was a ₹5,680 crore exceptional charge that the bank recognised during the quarter after reaching a settlement in the long-running NMC Health litigation. Earlier this month, Bank of Baroda agreed to pay $600 million under an out-of-court settlement to resolve claims related to the collapse of UAE-based healthcare company NMC Health.

The bank clarified that entering into the settlement does not amount to an admission of liability or wrongdoing. Instead, it said the agreement was aimed at bringing closure to a legacy legal issue that had remained unresolved for several years. The settlement removes a major overhang that had created uncertainty for investors and allows the bank to move forward without prolonged legal proceedings.

Although the exceptional charge weighed heavily on profitability, the bank’s underlying business continued to perform well. Net Interest Income (NII), which measures the difference between interest earned on loans and interest paid on deposits, increased by around 10% year-on-year. The growth reflected healthy credit demand and the bank’s ability to expand its interest-earning assets despite a competitive banking environment.

Bank of Baroda also recorded strong business growth during the quarter. Gross advances rose 17.4% year-on-year, supported by healthy demand across retail, corporate, agriculture and overseas loan segments. The retail portfolio continued to remain a key growth driver, while corporate lending also showed resilience amid improving economic activity.

Deposits also maintained a healthy trajectory, increasing 13.8% year-on-year. The steady rise in deposits indicates continued customer confidence and provides the bank with a strong and stable funding base to support future lending growth. Strong deposit mobilisation remains a key focus area for banks as competition for low-cost deposits continues across the sector.

The bank reported total income of ₹36,681 crore during the quarter, registering modest growth over the previous year. Higher interest income contributed to the increase, although operating profit came under pressure because of the exceptional settlement cost and higher operating expenses.

Another encouraging aspect of the quarterly performance was the bank’s asset quality, which remained stable. Gross and net non-performing asset (NPA) ratios continued to stay under control, reflecting prudent lending practices and effective credit monitoring. Stable asset quality is particularly significant at a time when banks are balancing strong credit growth with cautious risk management.

In another important development, the bank’s board approved an increase in the borrowing limit for its overseas operations. The ceiling for raising funds through international borrowings has been doubled from $5 billion to $10 billion. The enhanced limit is expected to provide greater flexibility in accessing global funding markets and supporting the bank’s expanding international business.

Market analysts said the June-quarter results should be viewed in the context of the one-time settlement rather than as a reflection of the bank’s operational performance. Excluding the exceptional charge, the lender’s core fundamentals remain healthy, supported by steady loan growth, improving business volumes and stable asset quality.

Investors are now expected to closely monitor key financial indicators such as net interest margin (NIM), credit growth, deposit mobilisation, operating profitability and asset quality in the coming quarters. These metrics will provide a clearer picture of the bank’s earnings trajectory after the impact of the settlement fades.

The resolution of the NMC Health litigation is also being viewed positively by several market observers. With the legal uncertainty behind it, Bank of Baroda can now focus more aggressively on business expansion, digital banking initiatives, customer acquisition and improving shareholder returns. The removal of this legacy issue is expected to strengthen investor confidence over the medium term.

Industry experts believe the exceptional charge is unlikely to have a lasting impact on the bank’s long-term growth story. India’s banking sector continues to benefit from healthy credit demand, improving economic activity and rising consumption, creating favourable conditions for lenders with strong balance sheets and diversified loan portfolios.

While the June-quarter profit numbers may appear weak at first glance, the broader picture remains far more encouraging. Bank of Baroda’s strong loan growth, healthy net interest income, stable asset quality and expanding deposit base demonstrate that its core banking franchise remains resilient. With the NMC settlement now behind it and a major legal uncertainty resolved, the public sector lender is expected to focus on strengthening profitability, expanding its lending business and delivering sustainable growth in the quarters ahead.

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EU slaps $1 bn fine on Google again

Google has been fined €1.02 billion (around $1.18 billion) by the European Union for violating the bloc’s Digital Markets Act (DMA), marking one of the biggest penalties imposed under the landmark tech regulation.

EU regulators said the company abused its dominant market position by giving preferential treatment to its own services, undermining fair competition. Google said it disagrees with the decision and plans to challenge the fine.

The ruling adds to the company’s ongoing regulatory challenges in Europe and reinforces the EU’s efforts to curb anti-competitive practices among major technology firms and promote fair digital markets.