Author: Staff Writer

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Beyond

SEBI proposes wider FPI access

The Securities and Exchange Board of India (SEBI) has proposed widening the participation of foreign portfolio investors (FPIs) in India’s exchange-traded commodity derivatives market, a move aimed at bringing more institutional money into the segment and strengthening its liquidity and price discovery.

The markets regulator issued a consultation paper on August 11, seeking views on allowing FPIs to participate in a wider range of non-agricultural commodity derivatives, including contracts that are physically settled. The consultation is open for public comments until September 1, 2026.

At present, FPIs are permitted to trade only cash-settled non-agricultural commodity derivatives and indices comprising such commodities. SEBI had first allowed FPI participation in India’s exchange-traded commodity derivatives (ETCDs) in 2022.

The regulator now wants to expand that framework. Under the proposal, FPIs would be allowed to trade non-agricultural commodity derivatives that involve physical settlement, subject to safeguards. The proposal also seeks to permit FPI participation in non-agricultural index derivatives regardless of whether the underlying commodities are cash-settled or physically settled.

The move covers important commodities such as crude oil, natural gas, gold, silver and base metals. These commodities are actively traded in international markets and their prices are closely linked to global benchmarks.

SEBI believes greater participation by overseas investors could make India’s commodity derivatives market deeper and more internationally connected. A broader participant base could mean more buying and selling activity, potentially improving liquidity and making it easier for investors to enter and exit positions.

The regulator also expects the proposal to improve price discovery. Commodity prices are influenced by global demand, supply, geopolitical developments and currency movements. Greater participation from international investors could help Indian commodity contracts respond more efficiently to these factors.

SEBI said foreign participation has already produced visible results in parts of the market. Liquidity in crude oil and natural gas options has increased notably since FPIs were allowed to participate. Open interest has also risen, with FPIs accounting for a meaningful and growing share of activity.

The latest proposal is therefore aimed at extending that experience to a broader set of commodity derivatives.

There is, however, a practical complication with physically settled contracts. Unlike cash-settled derivatives, these contracts can result in the delivery or receipt of the underlying commodity when they approach expiry.

SEBI noted that FPIs may not be in a position to undertake physical delivery because they generally do not have a permanent establishment in India. The regulator has also pointed out that buying or selling commodities in India could require GST registration.

To address the issue, SEBI has proposed a two-tier safeguard mechanism.

Under the first layer, FPIs would have to square off or roll over their positions before the tender or staggered delivery period begins. The compulsory exit requirement would start three days before the expiry of the relevant contract.

If an FPI fails to close or roll over its position, the second layer would come into play. The open position would automatically be transferred to a designated trading member or trading-cum-clearing member.

The transfer would take place at the exchange’s closing price or daily settlement price. Once the position is transferred, the FPI would no longer have any obligation or exposure connected with the position, including responsibilities related to physical delivery.

SEBI has also proposed a financial safeguard for trading members that take over such positions. FPIs could be required to pay a pre-agreed “Proprietary Risk Absorption Charge” if their positions are involuntarily transferred.

The charge is intended to compensate trading members for the additional proprietary risk, margin requirements and position-limit burden they may face after taking over an FPI position. It would be separate from any service fee agreed between the parties.

Trading members would also be given up to two trading days to bring transferred positions back within prescribed position limits if the transfer temporarily pushes their proprietary accounts beyond those limits.

SEBI’s Commodity Derivatives Advisory Committee has supported the proposed changes, adding weight to the regulator’s push for wider foreign participation.

For the Indian commodity market, the proposal could represent another step towards making domestic derivatives contracts more attractive to global investors. Greater FPI participation could potentially increase trading volumes, strengthen market depth and help Indian commodity prices track international developments more efficiently.

For foreign investors, the proposed changes would broaden access to India’s commodity derivatives market without requiring them to take on direct physical delivery obligations. For domestic exchanges and trading members, increased participation could create opportunities for higher liquidity and wider institutional activity.

The proposal is still at the consultation stage and is not yet a final regulatory change. Market participants now have until September 1 to submit their views to SEBI. The regulator will consider the feedback before deciding on the final framework.

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Corporate

Zydus Lifesciences revenue rises 22% to Rs 8,017 cr

Zydus Lifesciences reported a sharp decline in profitability for the first quarter of financial year 2026-27, even as the pharmaceutical company delivered strong growth in revenue. Consolidated net profit fell 36% year-on-year to Rs 939.8 crore, compared with Rs 1,466.8 crore in the same quarter last year.

Revenue from operations, however, rose 22% to Rs 8,017 crore from Rs 6,573.7 crore a year earlier. The contrasting performance highlights the pressure on the company’s earnings as expenses increased faster than sales.

The key concern for Zydus Lifesciences in the June quarter was operating profitability. EBITDA declined 7.6% year-on-year to Rs 1,929.4 crore from Rs 2,088.5 crore. The EBITDA margin consequently fell to 24.1%, compared with 31.8% in the year-ago period. The contraction shows that a substantial part of the additional revenue was absorbed by higher costs.

The rise in expenses was particularly significant during the quarter. Higher spending on research and development, employee costs and other operating expenses affected the bottom line. The company has been investing heavily in new products, specialty medicines and acquisitions, which are expected to support longer-term growth but are also adding to near-term costs.

Despite the pressure on margins, Zydus recorded healthy performance across several business segments. Its India formulations business remained a major contributor, supported by continued demand for medicines in chronic and acute therapy areas. The company has been expanding its presence in segments such as cardiology, diabetology, oncology, nephrology and women’s health.

Consumer wellness emerged as another strong area. The business, which includes brands such as Glucon-D, Sugar Free, Complan, Nycil and Everyuth, continued to gain traction. Strong consumer demand helped diversify Zydus’ revenue base beyond its traditional prescription medicines business.

International markets also provided momentum during the quarter. Growth outside the United States remained strong, helping offset some of the weakness in the North American business. The company has been working to build a wider international footprint while reducing its dependence on any single market.

The US formulations business remained under pressure, with revenue declining during the quarter. The American generics market continues to face intense competition and pricing pressure, making volume growth and new product launches increasingly important for pharmaceutical companies.

Zydus, however, continued to expand its US portfolio through regulatory approvals and launches. The company filed new abbreviated new drug applications and received multiple approvals during the quarter. It also launched new products, strengthening its pipeline in generic and specialty medicines.

The company is simultaneously increasing its focus on complex and differentiated products. Its specialty portfolio is expected to become an increasingly important part of the business as Zydus looks beyond conventional generics. The acquisition of Assertio Holdings has also expanded its presence in specialty pharmaceuticals and added products to its commercial portfolio.

Research and development remains central to this strategy. Zydus has continued to allocate a significant portion of its revenue towards R&D, with projects spanning biosimilars, vaccines, new chemical entities and specialty therapies. Such investments could create new sources of growth, although they are likely to keep expenditure elevated in the near term.

During the quarter, Zydus made progress on several development programmes. Its pipeline included work on biosimilars, vaccines and treatments targeting specialised diseases. The company also advanced regulatory filings and clinical programmes in India and overseas markets.

The company is therefore entering FY27 with a business mix that is changing rapidly. Traditional pharmaceutical operations continue to generate the bulk of revenue, while consumer wellness, specialty medicines, international operations and innovative products are gaining importance.

For investors, the immediate challenge is whether this growth can eventually translate into better margins. The 22% increase in revenue demonstrates that demand remains healthy, but the 36% decline in net profit shows that growth is currently being accompanied by substantial cost pressures.

The margin movement is particularly important because Zydus had delivered significantly higher operating profitability in the previous year. The latest quarter suggests that the company is entering a phase in which investment-led growth could weigh on earnings before the benefits of new products and acquisitions become fully visible.

The performance of the US business will also remain closely watched. A recovery in North American sales, combined with new product launches and greater contribution from specialty medicines, could provide support to future earnings. At the same time, stronger growth in India, consumer wellness and other international markets gives the company some protection against weakness in the US generics market.

Zydus Lifesciences’ Q1 FY27 results therefore present a mixed picture. Revenue growth was strong, but profitability weakened considerably. The company is spending more to expand its product pipeline, strengthen its specialty portfolio and build new growth engines.

 

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Technology

Chinese phone brands lose ground in India

India’s smartphone market took a sharp hit in the April-June quarter of 2026 as a global memory chip shortage pushed up handset prices and weakened demand, particularly among budget-conscious consumers. Smartphone shipments in the country fell 11.1% year-on-year to 33.2 million units in the second quarter, according to the latest data from the International Data Corporation (IDC).

The downturn has been particularly painful for Chinese smartphone brands, which have traditionally relied on affordable and feature-rich devices to build a strong presence in India. Vivo, Oppo, Xiaomi and Realme all reported shipment declines during the quarter, while Samsung and Apple managed to hold their ground and increase their market shares.

The numbers show how quickly rising component costs are changing India’s smartphone market. IDC said the average selling price (ASP) of smartphones in India climbed 14.4% year-on-year to a record $315, or roughly ₹30,000, in Q2 2026. Higher memory costs have made it increasingly difficult for manufacturers to keep prices low while protecting their profit margins.

That pressure has been felt most strongly at the bottom end of the market. Smartphones priced below $100 saw shipments plunge 74.3% year-on-year, with their share of the overall market falling from 15.6% to just 4.5%. Manufacturers have reduced model launches and channel support in this segment as low prices have become harder to sustain amid expensive components.

For years, Chinese companies built their Indian businesses around precisely this part of the market. Their ability to offer large displays, better cameras and other features at competitive prices helped brands such as Vivo, Oppo, Xiaomi and Realme become household names. But the current memory shortage has weakened that advantage because the room to absorb higher costs or offer aggressive discounts has narrowed considerably.

Vivo remained India’s largest smartphone brand in Q2 with an 18.4% market share, down from 19% a year earlier. Its shipments declined by about 14% year-on-year. Oppo, which ranked third, recorded an 8.5% decline, while Xiaomi’s shipments dropped 10%. Realme suffered a larger 14.2% fall.

The sharper declines were visible among some Chinese sub-brands. Vivo’s iQOO recorded the steepest fall among the leading brands, with shipments dropping 61% year-on-year. Xiaomi’s Poco shipments fell 12.3%, while OnePlus recorded a smaller 2.5% decline. Motorola, which is not a Chinese brand, also saw shipments fall 8.9%.

Samsung, meanwhile, gained ground in a shrinking market. Its shipments grew 0.4%, but its market share increased from 14.5% in Q2 last year to 16.4% this year. Samsung’s broad portfolio and scale have helped it absorb some of the impact of rising component costs while continuing to serve different price segments.

Apple also strengthened its position. Its shipments increased about 0.7%, while its market share rose from 7.5% to 8.5%. The company remained constrained by supply shortages affecting the iPhone 15, iPhone 16 and iPhone 17 series, but demand for premium devices remained more resilient than demand at the entry level. The iPhone 17 was the highest-shipped smartphone model in India during the first half of 2026, according to IDC.

The shift suggests that India‘s smartphone consumers are gradually moving up the price ladder, even as overall volumes decline. The $400-$600 segment grew 60.3% year-on-year, with its market share almost doubling from 4.8% to 8.6%. Meanwhile, the $100-$200 mass-budget segment remained the largest category, accounting for 46.8% of the market and recording broadly flat shipments.

There was also an unusual revival in demand for 4G smartphones. As entry-level 5G devices became more expensive, some manufacturers brought back or extended 4G models to give consumers cheaper options. The share of 4G smartphones rose to 11.1%. IDC, however, expects this to be a temporary development as existing inventories run out and consumers are pushed towards more expensive 5G models.

The change in consumer behaviour is also visible in sales channels. Online smartphone shipments fell 19.8% year-on-year, with their share dropping from 46.4% to 41.9%. Online platforms traditionally depend heavily on discounts and promotional offers, but weaker discounts have made them less attractive to price-sensitive buyers. Offline shipments were comparatively resilient, declining only 3.6% as brands leaned more heavily on physical retail networks.

The weakness is not limited to one quarter. India’s smartphone shipments during the first six months of 2026 fell 7.9% year-on-year to 64.2 million units, the lowest first-half volume in five years. Interestingly, the market’s overall value still increased 3.6%, reflecting the rise in average selling prices and the growing contribution of premium smartphones, a shift that is also shaping India’s broader technology market.

The upcoming festive season could therefore be a crucial test for smartphone manufacturers. Traditionally, brands use festive discounts, exchange offers and financing schemes to encourage upgrades. This year, however, higher component costs are leaving manufacturers and retailers with less room for aggressive price cuts.

 

Categories
Corporate

Sensex nears 190 points, Nifty below 24,450

Indian benchmark indices ended lower on Wednesday, August 12, after a volatile session in which the Sensex briefly fell more than 600 points before recovering most of its losses. The BSE Sensex closed 187.90 points, or 0.24%, lower at 77,966.35, while the NSE Nifty50 declined 35.75 points, or 0.15%, to 24,435.95.

The market remained under pressure through much of the session as investors reacted to rising crude oil prices, weakness in select heavyweight stocks and uncertainty following N Chandrasekaran’s decision to step down as Tata Sons chairman. The leadership development triggered selling across several Tata Group companies and became one of the day’s key market-moving factors.

Tata Consultancy Services (TCS) was among the biggest Nifty losers, falling sharply during the session. Tata Motors, Tata Steel, Titan and Tata Consumer Products also declined, weighing on the benchmark indices because of their significant market capitalisation. TCS ended around 3.9% lower, while Tata Motors fell about 3.3% and Titan and Tata Steel declined more than 2% each.

The selling in Tata stocks came as investors assessed the implications of Chandrasekaran’s departure and the eventual transition at the top of the Tata conglomerate. Analysts described the initial reaction as a knee-jerk response, while noting that the group’s diversified businesses and strong operating franchises could help stabilise sentiment once greater clarity emerges around the succession process.

Rising crude oil prices added another layer of pressure. Brent crude traded close to $90 a barrel amid heightened tensions in the Middle East. For India, higher oil prices are a concern because the country imports a large share of its crude requirements. Sustained increases can raise the import bill, put pressure on the rupee and potentially affect inflation and corporate profit margins.

The technology sector also remained weak. The Nifty IT index was among the worst-performing sectoral indices, with TCS and Infosys facing selling pressure. Infosys fell about 1% during the session, while TCS was significantly weaker. The weakness in large IT stocks contributed to the broader pressure on the Nifty50.

However, the session was not entirely negative. Metal stocks emerged as a bright spot after global aluminium prices climbed to a seven-week high. Hindalco Industries and National Aluminium Company (NALCO) were among the notable gainers. NALCO jumped as much as 8%, while Hindalco gained about 2.7% in response to supply concerns and stronger aluminium prices.

Hindalco emerged as the top Nifty50 gainer during the session, while NALCO was among the strongest performers in the broader market. The rally followed concerns over global aluminium supply, including production disruptions, which supported prices and improved the outlook for aluminium producers.

The broader market showed comparatively better resilience. Mid-cap stocks managed to outperform the benchmark indices, with the Nifty MidCap index gaining around 0.3%. This suggested that investors continued to find opportunities in select companies despite the pressure on large-cap stocks.

Among other individual stocks, Godrej Consumer Products suffered a steep decline after CEO Sudhir Sitapati announced his departure. The stock fell more than 11% during the session, making it one of the prominent losers outside the major Tata counters. The sudden leadership change added to concerns over near-term business visibility.

Healthcare stocks also faced selling pressure after a regulatory recommendation relating to private hospital charges. Several hospital stocks declined between 1.7% and 3.8%, adding to the weakness in specific sectors.

The market’s decline came despite signs of selective buying in sectors such as metals and public-sector banking. Investors continued to track the first-quarter earnings season, with individual stocks reacting strongly to company-specific results. Strong earnings helped some stocks buck the broader market trend, while disappointing numbers or management changes triggered sharp selling elsewhere.

The rupee also remained a key factor for investors as elevated crude prices threatened to increase pressure on India’s external balance. With inflation data from India and the United States due to influence expectations around monetary policy, traders remained cautious about taking aggressive positions.

The Nifty50 ended below the 24,450 level, keeping the index in a technically sensitive zone. The market’s ability to hold the 24,400 area could be important in determining its near-term direction, while a sustained recovery above 24,500 may improve sentiment.

For now, Dalal Street remains caught between domestic corporate developments and global macroeconomic risks. Strong performances by Hindalco and NALCO provided some relief, but losses in TCS, Tata Motors, Titan and other heavyweight stocks kept the benchmark indices in negative territory.

The market is likely to remain sensitive to crude oil movements, geopolitical developments, inflation data and further corporate earnings. Investors will also closely watch developments around the Tata Group‘s leadership transition, making the next few trading sessions important for gauging whether Wednesday’s weakness was temporary or the beginning of a broader period of consolidation.

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Corporate

Manappuram Finance profit surges 341% in Q1 FY27

Manappuram Finance delivered a sharp improvement in financial performance in the first quarter of FY27, with consolidated net profit rising 341.4% year-on-year to ₹584.77 crore. The company had reported a consolidated profit of ₹132.47 crore in the corresponding quarter last year. Profit also increased 44.5% from ₹404.79 crore in the March quarter, showing that the improvement was not limited to a low year-ago base.

The strong quarterly performance was driven mainly by a rapid expansion in the company’s gold loan business, higher operating earnings, lower provisions and a turnaround in its microfinance subsidiary Asirvad Microfinance. The results mark a significant recovery for the Kerala-based non-banking financial company (NBFC), particularly after a challenging period for its microfinance operations.

Manappuram Finance’s consolidated assets under management (AUM) increased 57.2% year-on-year to ₹69,635 crore as of June 30, 2026. The AUM was also 9.1% higher than the ₹63,833 crore recorded at the end of March. The growth reflects a strong expansion in the company’s secured lending franchise, with gold loans emerging as the principal engine of growth.

Gold loan AUM nearly doubled during the year, rising 97.9% to ₹57,006 crore from ₹28,802 crore in Q1 FY26. On a sequential basis, the gold loan portfolio grew 11.9% from ₹50,953 crore at the end of March. Gold loans therefore accounted for about 82% of Manappuram Finance’s consolidated AUM at the end of the June quarter.

The sharp rise in the gold loan portfolio highlights the continued importance of gold-backed credit to Manappuram Finance’s business model. Demand for such loans has remained strong as borrowers seek quick access to funds against household gold, while lenders benefit from the secured nature of the portfolio.

At the same time, the company’s non-gold loan portfolio remained under pressure. Consolidated non-gold AUM declined 18.5% year-on-year to ₹12,629 crore and fell 1.7% sequentially. The numbers underline the increasing concentration of the company’s overall growth around gold loans, even as other businesses continue to be developed.

Another important improvement came from Asirvad Microfinance. The subsidiary reported a profit after tax of ₹21 crore in Q1 FY27, compared with a loss of ₹269 crore in the same quarter a year earlier. It had reported a profit of ₹13 crore in the March quarter. The turnaround helped strengthen Manappuram Finance’s consolidated earnings and reduced the drag from the microfinance business seen during the previous financial year.

Asirvad’s total AUM stood at ₹7,188 crore at the end of June, up 7.2% year-on-year and 5.8% sequentially. However, its core microfinance AUM remained 12.9% below the year-ago level. Its gold loan portfolio more than doubled to ₹2,344 crore, showing that the subsidiary is also benefiting from the broader expansion in gold-backed lending.

Asset quality at Asirvad showed some improvement as well. Its gross non-performing asset ratio stood at 4.8%, unchanged from March, while the net NPA ratio improved to 1.4% from 1.6%. The recovery in profitability, together with better net asset quality, provides some relief after the pressure faced by the microfinance sector.

Manappuram Finance also reported stronger core operating income. Net interest income rose 25% year-on-year to around ₹1,759 crore in Q1 FY27 from ₹1,407 crore a year earlier, according to the company’s latest earnings disclosures.

The company also declared an interim dividend of ₹1 per equity share, with the shares having a face value of ₹2. The payout adds to the positive investor response to the quarterly results. Manappuram Finance’s capital position remained comfortable, with its capital adequacy ratio at 21.29% and consolidated net worth at ₹16,552 crore as of June 30.

The quarter also comes at a significant point in Manappuram Finance’s corporate evolution. The company is preparing for a leadership transition following Bain Capital’s investment and entry into the business. Ashish Singh has been appointed as managing director and chief executive officer and is expected to take charge from January 1, 2027. V.P. Nandakumar is set to move to a non-executive chairman role.

The strong Q1 FY27 numbers therefore come against the backdrop of both operational recovery and a broader change in the company’s management structure. For Manappuram Finance, the immediate focus will be on sustaining gold loan growth, improving the performance of non-gold businesses and maintaining asset quality as the balance sheet expands.

The company’s first-quarter performance suggests that gold loans remain the clear growth driver, while the return of Asirvad Microfinance to profitability has strengthened the overall earnings picture. With AUM growth, improved operating earnings and a substantial rise in consolidated profit, Manappuram Finance has begun FY27 on a much stronger footing. The challenge now will be to convert this sharp quarterly recovery into sustainable growth across its wider lending portfolio.

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Leaders

Godrej Consumer names Aasif Malbari new MD, CEO

Godrej Consumer Products has appointed Aasif Malbari as its new Managing Director and Chief Executive Officer, replacing Sudhir Sitapati in a leadership change that comes at a crucial stage for the fast-moving consumer goods company.

Malbari takes charge from August 12, 2026, for a five-year term extending until August 11, 2031. He has also joined the company’s board as an additional executive director. The appointment brings an experienced insider to the top position at a time when Godrej Consumer Products is focused on strengthening growth, improving execution and expanding its presence across domestic and international markets.

Malbari has been associated with Godrej Consumer Products in a senior leadership capacity and was serving as Global Chief Financial Officer and President for Godrej Africa and GCPL International. His elevation means the company will have a CEO with detailed knowledge of its financial performance, international operations and business strategy.

Before joining Godrej Consumer Products, Malbari built a career spanning more than three decades across major companies and industries. His experience includes senior roles at Hindustan Unilever and Tata Motors. His background in finance, operations and international business is expected to be useful as the company works through a competitive FMCG environment.

As part of the leadership transition, Malbari has stepped down from his position as Global CFO. Vishal Kedia has been appointed interim Chief Financial Officer to oversee the company’s finance function during the transition.

The change follows the resignation of Sitapati, who had led Godrej Consumer Products since 2021. His exit has attracted considerable attention because he had been reappointed for another five-year term earlier this year, which was expected to continue until 2031.

Sitapati’s tenure coincided with several important changes in the company’s strategy and operations. Under his leadership, Godrej Consumer Products worked to streamline its portfolio, strengthen core categories and expand its international operations. The company also pursued its longer-term Vision 2040 strategy, with an emphasis on building sustainable growth across its markets.

The leadership change comes as the Indian FMCG sector faces a mixed operating environment. Consumer demand has been uneven across categories, while companies continue to deal with changing consumption patterns, intense competition and fluctuations in input costs. E-commerce and quick-commerce channels have also become increasingly important in determining how FMCG companies reach consumers.

For Godrej Consumer Products, execution will be a major priority under the new CEO. The company has been investing in digital channels and seeking stronger growth from its portfolio of personal care, home care and insecticide products. Malbari will be expected to maintain the company’s growth momentum while improving operational efficiency and protecting profitability.

The market reaction to Sitapati’s departure has highlighted investor concerns about the abrupt nature of the transition. Shares of Godrej Consumer Products came under heavy selling pressure following the announcement, reflecting uncertainty over the company’s strategic direction and future execution.

The immediate challenge for Malbari will therefore be to reassure investors while ensuring that the company’s ongoing business plans remain on track. His experience within the organisation could help provide continuity and reduce disruption during the transition.

The company is also considering changes to its leadership structure, reflecting how CEO appointments and executive leadership transitions can shape the management of large businesses. Godrej Consumer Products is considering the possibility of having separate CEOs for its India and international businesses, which could allow greater management attention to the different growth opportunities and operating challenges in its domestic and overseas markets.

Malbari’s appointment also puts his financial expertise at the centre of the company’s next phase. As a former CFO, he is expected to have a strong focus on profitability, capital allocation and cost management. At the same time, the new CEO will need to maintain investment in brands, distribution and innovation to compete in an increasingly fragmented consumer market.

Godrej Consumer Products enters the leadership transition with an established portfolio and a wide international footprint. Its brands operate across categories including household insecticides, hair care, personal wash and home care.

For the company, the priority now is to convert that scale into consistent growth. Malbari will need to balance short-term market expectations with longer-term investments while maintaining the strategic direction established over recent years.

His first few quarters as CEO are likely to be closely watched by investors, particularly for signs of improvement in execution, margins and volume growth. The leadership transition marks a new chapter for Godrej Consumer Products, with Malbari taking responsibility for steering the FMCG major through its next phase of expansion.

Categories
Beyond

Gold at Rs 1.54 lakh, silver nears Rs 2.38 lakh

Gold and silver prices moved higher in domestic and international markets on Wednesday, August 12, as investors increased exposure to precious metals ahead of key US inflation data. On the Multi Commodity Exchange (MCX), gold futures opened with a gain of Rs 1,182 per 10 grams, while silver futures climbed Rs 2,314 per kg. The move reflects a combination of investment demand, central bank buying and continued uncertainty over global interest rates and geopolitical risks.

The benchmark October gold contract on MCX opened at Rs 1,54,947 per 10 grams, compared with the previous close of Rs 1,53,765. At the time of reporting, the contract was trading at around Rs 1,54,730, up Rs 965. During the session, it touched a high of Rs 1,54,950 and a low of Rs 1,54,411.

Silver also started the session on a strong note. The benchmark September silver contract opened at Rs 2,37,973 per kg, gaining Rs 2,314 from its previous close of Rs 2,35,659. It was later trading at about Rs 2,37,725 per kg, up Rs 2,066. Silver touched an intraday high of Rs 2,38,271 and a low of Rs 2,37,620.

The latest gains extend a broader recovery in the precious metals market. In the physical market, 99.9% purity gold in New Delhi rose Rs 1,200 to Rs 1,57,200 per 10 grams on Tuesday, according to the All India Sarafa Association. Gold has gained Rs 9,800, or 6.65%, over six trading sessions since August 3. Silver also rose Rs 2,000 to Rs 2,42,000 per kg, its highest level in more than two months.

The immediate focus for investors is the US Consumer Price Index (CPI) data due later on Wednesday. The inflation reading could influence expectations about the Federal Reserve’s monetary policy and the direction of US interest rates. For gold investors, the relationship is important because bullion does not generate interest income. When interest rates and bond yields fall, the opportunity cost of holding gold declines, potentially making the metal more attractive.

Markets have already adjusted their expectations following weaker-than-expected US jobs data. Traders have reduced the probability of a Federal Reserve rate hike in September to 48%. At the same time, policymakers remain cautious about inflation. Chicago Federal Reserve President Austan Goolsbee has indicated that inflation remains a concern, adding another layer of uncertainty ahead of the CPI release.

US Treasury yields are another factor supporting bullion prices. Lower yields can encourage investors to look towards gold because the relative disadvantage of holding a non-yielding asset becomes smaller. Any indication that inflation is easing could strengthen expectations of a softer monetary policy stance and provide additional support to gold prices.

Global geopolitical developments are also keeping precious metals in focus. Uncertainty surrounding the US-Iran conflict, the Strait of Hormuz and disruptions involving shipping have pushed energy markets into sharper focus. Higher crude oil prices could increase inflationary pressure, potentially forcing central banks to maintain restrictive interest rates for longer. That creates a delicate balance for gold, as stronger safe-haven demand can support prices while higher rates can work in the opposite direction.

International prices remained firm as well. On Comex, gold was trading around $4,473.50 per ounce at the time of reporting, after touching $4,435 earlier in the session. Silver was trading near $65.90 per ounce. Business Standard reported gold around $4,475 per ounce and silver around $66 per ounce in the global market.

Gold had earlier reached its highest level since June 5 before facing technical resistance near its 100-day moving average. Spot gold was up 0.3% at $4,377.79 per ounce early Wednesday, while US gold futures for December delivery were little changed at around $4,438.

Silver has been attracting attention because its price movement has been supported by both investment sentiment and industrial demand. Unlike gold, silver has a substantial industrial use base, which means its price can respond not only to interest rates and investor behaviour but also to expectations for manufacturing and economic activity. The metal has remained above $64 an ounce in global trading and has continued to benefit from the broader strength in precious metals.

For Indian investors and consumers, the latest rise means gold prices are once again close to elevated levels after a strong recovery over the past week. The rally has been particularly notable in the physical bullion market, while MCX gold and silver futures have also gained.

The next major direction for gold prices will depend on the US inflation numbers and how financial markets interpret them. A softer-than-expected CPI reading could strengthen expectations of easier monetary policy and support bullion. A stronger inflation figure, however, could revive concerns about higher-for-longer interest rates.

Categories
Corporate

Sensex falls over 150 points, Nifty slips below 24,450

Indian equities opened lower on Wednesday as a combination of higher crude oil prices, geopolitical uncertainty and cautious global cues kept investors on the defensive. The Sensex fell more than 150 points, while the Nifty 50 slipped below 24,450, with selling pressure visible across several key sectors.

The Nifty opened around the 24,400 level and remained under pressure in early trading, while the Sensex traded below the previous session’s close. The weakness came after both benchmarks had ended lower on Tuesday, reflecting concerns over the impact of elevated crude prices on India’s inflation outlook, corporate profitability and external balances.

Crude oil remained the biggest macroeconomic trigger for Indian markets. Brent crude moved closer to $90 a barrel, raising concerns for India, one of the world’s major oil importers. A sustained rise in crude prices can increase input and transportation costs for businesses, put pressure on operating margins and widen India’s trade deficit. It can also weigh on the rupee and complicate the inflation outlook.

The latest movement in oil prices has been influenced by geopolitical developments and uncertainty around supply, particularly concerns involving the Strait of Hormuz. Investors are watching whether the increase in crude prices will be temporary or develop into a prolonged trend. For Indian companies, the distinction is important because a short-term spike can often be absorbed, while sustained high energy costs can have a more meaningful impact on profitability.

Despite the broader market weakness, Hindalco Industries emerged as one of the top gainers, rising around 2% in early trade. The stock’s performance provided some relief as metal shares showed relative strength. Investors continued to track commodity-linked companies amid changes in global commodity prices and demand expectations.

On the other side, Bajaj Finserv was among the top losers, declining around 1% during early trading. Financial stocks remained under pressure as investors assessed the broader risk environment and the possibility of continued volatility in domestic and global markets.

Godrej Consumer Products witnessed a much sharper decline and became one of the key stocks in focus. Its shares fell heavily after CEO Sudhir Sitapati resigned unexpectedly, creating uncertainty around the leadership and execution of the consumer goods company. The sudden management change triggered a negative response from investors, with analysts reassessing the company’s near-term outlook.

HSBC subsequently downgraded Godrej Consumer Products, citing uncertainty and execution challenges following the leadership transition. Aasif Malbari is expected to take over as the company’s new CEO. Investors will now watch the transition closely, particularly its potential impact on business strategy, growth and execution.

Several other stocks were also in focus during Wednesday’s session, including Larsen & Toubro, Tata Motors, Hindustan Aeronautics, Grasim Industries, NBCC India and IRCTC. Company-specific developments, earnings updates and sectoral trends continued to influence individual stocks even as broader market sentiment remained weak.

Another factor likely to influence market activity in the coming weeks is the expiry of post-IPO lock-in periods. Shares of at least 45 recently listed companies are expected to become eligible for trading over the next two months. Nuvama Alternative & Quantitative Research estimates that shares worth about $7.6 billion could be unlocked between August 12 and the end of September.

The expiry of these lock-ins does not automatically mean shareholders will sell. However, the additional supply could increase volatility in recently listed companies, particularly those trading at elevated valuations. Institutional investors are expected to monitor these unlocks closely as they assess potential changes in liquidity and selling pressure.

Domestic investment flows have also emerged as an important market indicator. Retail investors’ equity mutual fund investments declined nearly 15% in July to Rs 24,697 crore, compared with Rs 28,973 crore in June. Despite the fall in monthly equity fund investments, systematic investment plan contributions remained resilient.

SIP contributions stood at Rs 31,961 crore in July, marginally higher than Rs 31,781 crore in June. The steady SIP numbers indicate that India’s domestic investor base continues to provide structural support to equities even when market conditions become volatile.

For traders, the 24,400 level on the Nifty has emerged as an important immediate support. Analysts are also watching the 24,250-24,200 zone, while a recovery could bring the index towards 24,800. The ability of the Nifty to hold these levels could determine the direction of the market in the near term.

Global markets provided mixed signals. Asian equities traded unevenly, with the Hang Seng, Nikkei futures and Australia’s ASX 200 under pressure, while South Korea’s Kospi gained. The mixed trend offered little clarity to Indian investors ahead of key global economic data.

Markets are also awaiting the US Consumer Price Index inflation data, which could influence expectations around the Federal Reserve’s interest-rate decisions. A stronger-than-expected inflation reading could push bond yields higher and weigh on emerging-market equities, while softer inflation could support expectations of easier monetary policy.

The GIFT Nifty also indicated a cautious start before the Indian market opened, reflecting the lack of strong positive global cues.

 

Categories
Corporate

Meta launches Muse Glimmer in new AI push

Meta has stepped up its challenge to the leading artificial intelligence companies with the launch of Muse Glimmer, a new open-weight AI model designed to run directly on personal computers.

The release marks a renewed push by Meta CEO Mark Zuckerberg to make advanced AI technology more accessible to developers and users rather than keeping powerful models exclusively behind corporate-controlled systems.

Muse Glimmer is a 30-billion-parameter model built for agentic tasks, meaning it is designed to do more than simply generate answers. It can be used for tasks such as coding, research, planning and other multi-step activities that require an AI system to work through a problem and complete actions.

One of the model’s biggest selling points is its ability to operate locally. Meta says Muse Glimmer can run on a single graphics processing unit, allowing developers to use the model on consumer hardware rather than depending entirely on expensive cloud infrastructure.

That could make a difference for developers and businesses that want greater control over their AI systems. Running models locally can reduce reliance on cloud services, potentially lower costs and give users greater control over data and how an AI model is customised.

Muse Glimmer is also designed around local AI agents. These systems can perform tasks on behalf of users instead of simply responding to individual prompts. The approach is increasingly becoming a major focus of the AI industry, with companies looking at AI agents that can handle longer workflows with less human intervention.

Meta developed Glimmer using a technique known as distillation, drawing capabilities from its more powerful Muse Spark model. This allows a smaller system to retain useful capabilities while being efficient enough to run on consumer hardware.

The launch is part of a broader change in Meta’s AI strategy. Earlier this year, the company introduced Muse Spark as a more powerful model, but Glimmer represents a return to Meta’s open-weight approach. The company has also said it plans to make a more advanced version, Muse Spark 1.2, available with its weights.

Open-weight models give developers access to the underlying model parameters, allowing them to run, modify and customise AI systems within the terms of their licences. This differs from closed AI models, where users generally interact with the system through a company-controlled service or API.

Zuckerberg used the launch to make a wider argument about how AI should develop. In a lengthy essay titled The Future Is for Everyone, he argued that increasingly powerful AI should not be controlled by a small number of companies or governments.

He said broader access could give individuals more control over AI and help developers create personalised systems for education, work, entrepreneurship and other areas of daily life. His vision centres on what he calls personal superintelligence, AI systems that can be tailored to individual users rather than designed only for large organisations.

Zuckerberg also framed open-weight AI as an issue of global competition. He argued that the United States should avoid policies that place domestic AI developers at a disadvantage compared with Chinese companies developing and distributing open models.

The argument comes as the AI race between the US and China becomes increasingly competitive. Chinese companies have gained attention for producing capable models that can be offered at relatively low cost, putting pressure on US technology companies to improve both performance and accessibility.

Meta’s latest move therefore has both a technology and geopolitical dimension. The company wants developers to adopt its AI models while also arguing that a more open ecosystem can help the United States maintain its position in artificial intelligence.

The strategy is not without risks. Open-weight AI models can be customised in ways that are harder for their creators to control. Critics have raised concerns about misuse, cybersecurity and the possibility that increasingly capable models could be adapted for harmful purposes.

Meta’s approach contrasts with the more controlled strategies of companies such as OpenAI and Anthropic, which have generally kept their most powerful models behind managed services and safety systems.

The company is also investing heavily in the infrastructure needed to support its broader AI ambitions. Alongside the Muse Glimmer announcement, Meta said it would establish a $1 billion fund for communities affected by the expansion of its data-centre network.

For Meta, the challenge is not simply producing another AI model. The company is trying to establish a position in a market dominated by intense competition from OpenAI, Google, Anthropic and rapidly advancing Chinese AI developers.

Muse Glimmer gives Meta another route into that competition. Instead of focusing solely on larger models that require expensive cloud infrastructure, the company is betting on AI that can operate closer to the user.

For developers, the attraction is flexibility. For consumers, the potential benefits include lower dependence on cloud services and greater control over personal data. For Meta, wider adoption could strengthen its influence over the next generation of AI development.

 

Categories
Beyond

Airport Operators can own airlines, centre clarifies

The Centre has clarified that there is no government policy that generally prevents airport operators from owning or running scheduled airlines, potentially opening a new route for investment in India’s aviation sector. However, existing contractual restrictions at some airports could still prevent operators from taking significant stakes in airlines without obtaining a waiver.

The clarification came from the Ministry of Civil Aviation amid growing attention on the relationship between airport operators and airline ownership. The government said airport operators are not barred under a blanket policy from holding substantial equity in airlines or operating scheduled carriers.

The distinction is important because restrictions can arise not from a central aviation policy but from individual agreements signed when airports were handed over for private operation under public-private partnership arrangements.

The Airports Authority of India has received a request seeking a waiver from such contractual restrictions. The request relates to provisions that can restrict airport operators from holding stakes in airlines or entering the airline business. The Ministry of Civil Aviation has not yet taken a final decision on the request.

The development could have wider implications for India’s aviation industry, where airport infrastructure and airline operations have traditionally remained separate businesses in several major markets. Allowing greater cross-holding could encourage large airport operators to explore airline investments, partnerships or even the launch of their own carriers.

For passengers, the change could eventually bring more airline choices and potentially greater competition. But it also raises questions about conflicts of interest because an airport operator that owns an airline could have influence over infrastructure, airport charges, slots, passenger facilities and other services used by competing carriers.

These concerns are particularly relevant at busy airports where landing capacity and terminal infrastructure are limited. Airlines compete not only on fares and routes but also for access to airport slots, parking bays, gates and other facilities. An airport operator with an airline interest could therefore face scrutiny over whether competing carriers receive equal treatment.

The government’s latest clarification does not mean that airport operators can immediately start or acquire airlines without restrictions. Any operator covered by a specific contractual agreement would still have to comply with those terms unless the relevant restriction is formally relaxed or waived.

This distinction between policy and contract is at the heart of the current issue. While there is no broad government prohibition on airport-airline ownership, contractual clauses in some airport concession arrangements can impose limits on cross-holding.

The waiver request before the Airports Authority of India is therefore significant. A decision to relax such restrictions could establish an important precedent for airport operators seeking to expand into passenger aviation.

India’s airport sector has undergone major changes over the past decade, with private companies taking a larger role in developing and operating airports. The country has also seen strong growth in domestic air travel, increasing the commercial importance of airport infrastructure and airline networks.

The airline market, meanwhile, is going through its own period of consolidation and expansion. The recent changes in the industry have increased attention on competition, capacity and the need for more carriers. Any move that allows airport operators to enter the airline business could alter the competitive landscape further.

For airport companies, owning an airline could create opportunities to integrate different parts of the aviation business. A group operating both airports and airlines could coordinate schedules, route development, passenger services and infrastructure investment more closely.

There could also be commercial advantages. An airline owned by an airport operator could potentially help increase traffic at its airports by developing new routes and adding capacity on underserved sectors. Higher passenger traffic, in turn, could benefit airport revenues from aeronautical and non-aeronautical activities.

However, regulators would need to ensure that such integration does not weaken competition. Rival airlines would need transparent access to airport infrastructure and commercially important facilities. Rules governing airport charges, slots and other services would become even more important if an airport operator also became an airline owner.

The issue also comes at a time when policymakers are looking for ways to strengthen competition in Indian aviation. A market dominated by a small number of large airlines can create concerns about fares, capacity and consumer choice, particularly when disruptions affect a major carrier.

Allowing new players backed by airport operators could provide additional capital to the sector. It could also attract companies with experience in large-scale infrastructure, logistics and passenger services into airline operations.

However, the government has not approved a general relaxation of airport-airline cross-holding restrictions. The immediate issue is whether existing contractual provisions can be waived in specific cases.

The decision will be closely watched by the aviation industry because it could determine how easily airport operators can enter India’s airline market.