Category: Beyond

Indian equity benchmarks continued to face selling pressure for a sixth consecutive session on Friday, with heavy losses in IT, pharma, and PSU bank stocks weighing on sentiment.

By early afternoon, the Sensex was trading 310 points, or 0.38 percent lower, at 80,849, while the Nifty slipped 120 points, or 0.48 percent, to 24,771. Market breadth was negative, with 2,695 stocks declining compared with 918 advancing and 122 remaining unchanged.

Among the laggards, Sun Pharmaceutical Industries, Mahindra & Mahindra, and IndusInd Bank fell as much as 3 percent, while Larsen & Toubro and Tata Motors bucked the trend, gaining up to 4 percent. Over the past six sessions, the Sensex has dropped 2.73 percent and the Nifty 2.52 percent, positioning the indices for their steepest weekly fall since early April.

Sectorally, pharma, IT, metal, and PSU bank indices were the worst performers. Major IT stocks declined following a cautious outlook from Accenture, which analysts said dampened sentiment across the sector. Additional concerns about rising costs also impacted the industry, as the U.S. introduced a new fee of approximately ₹88 lakh on certain H-1B visas.

Pharmaceutical shares were particularly hard hit after U.S. President Donald Trump announced plans to impose a 100 percent tariff on branded and patented drug imports starting October 1, unless firms establish local manufacturing facilities.

Trump posted on Truth Social: “Starting October 1, 2025, we will be imposing a 100 percent tariff on any branded or patented pharmaceutical product, unless a company is building their pharmaceutical manufacturing plant in America.” He added that companies already under construction would be exempt.

Foreign Institutional Investors (FIIs) also continued their selling streak, offloading equities worth ₹4,995 crore on Thursday. The sustained FII selling may keep the market under pressure,” said V K Vijayakumar, experts believe. 

In the broader market, the Nifty Smallcap100 and Midcap100 indices extended their declines for the fifth consecutive session. The midcap index lost 3.2 percent over this period, while the smallcap gauge declined around 4 percent.

Pharma stocks led losses in the smallcap space, with Neuland Laboratories and Natco Pharma falling up to 4 percent. Only 13 of the 100 constituents in the Nifty Smallcap index managed gains. Among midcaps, Waaree Energies dropped as much as 6 percent after U.S. customs authorities announced an investigation into possible tariff evasion.

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India claimed the spot as the world’s third-highest funded market for technology startups in 2025, despite a marked downturn in investment volumes compared with the prior year. 

According to data compiled by market intelligence firm Tracxn, Indian tech startups raised $4.8 billion in the first half of 2025, down 25 percent from $6.4 billion raised in the same period in 2024. 

This figure also fell short of $5.9 billion recorded in the second half of 2024. India leapfrogged nations such as Germany and Israel to climb from the fourth to the third position globally.

The Tracxn report notes that the dip in funding was broad-based across stages. Seed funding plunged 44 percent to $452 million, early-stage rounds declined by 16 percent to $1.6 billion, and late-stage investments contracted by 27 percent to $2.7 billion. 

Despite the slowdown, five startups secured funding rounds exceeding $100 million, led by electric mobility firm Erisha E Mobility’s $1 billion raise, followed by GreenLine’s $275 million and Infra.Market’s $222 million. 

Other recipients included Spinny and Darwinbox.

Sectoral trends reveal that some domains bucked the overall decline. Transportation and logistics technology stood out, with investment rising by 104 percent from the previous half to nearly $1.6 billion, making it one of the fastest growing areas of investor interest. Meanwhile, the retail tech segment drew $1.2 billion even as its year-on-year performance weakened, and enterprise applications secured $1.1 billion.

The funding climate also reflected greater exit activity. The first half of 2025 saw 73 acquisitions, compared with 54 in the same period in 2024. Among the most significant deals were the $516 million acquisition of Magma General Insurance by the DS Group and Patanjali, and Hindustan Unilever’s purchase of skincare brand Minimalist for $350 million. These exit moves are being viewed as evidence of maturation in India’s startup ecosystem.

Geographically, Bengaluru led the funding tally, accounting for 26 percent of total capital, followed closely by Delhi at 25 percent. In terms of investor participation, Accel, AngelList, and SoftBank Vision Fund emerged as among the most active across funding stages. At the seed level, Venture Catalysts, 100X.VC, and Antler were prominent, while early-stage rounds were led by Peak XV Partners, Accel, and Lightspeed. Late-stage investment saw strong participation from Sofina and Premji Invest.

Some observers see the drop in funding levels as a signal of tighter investor sentiment globally, but note that India’s ascension in rankings underscores resilience in the domestic tech ecosystem. Tracxn cofounder Neha Singh commented that while volumes have declined, meaningful exits and growing unicorn creation reflect greater stability and growth potential.

Beyond the numbers, the rise to third place is notable for its symbolic value. India’s tech founders, venture capital networks, and government policies supporting startups have been working to build a more mature, investable ecosystem. The classification brings heightened global attention, even as challenges such as capital access, profitability pressures, and infrastructure constraints remain.

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United States President Donald Trump announced on Thursday that beginning October 1, the United States will levy a 100 % tariff on imports of branded or patented pharmaceutical products, unless the manufacturer is actively building a U.S.-based production facility. 

He also unveiled fresh tariffs of 50 % on kitchen cabinets and bathroom vanities, 25 % on heavy-duty trucks, and 30 % on upholstered furniture as part of a broader push to shield domestic industries from foreign competition.

In social media posts on Truth Social, Trump defined the exemption for drugmakers as applying to those that have “broken ground” or already are “under construction” in the United States. He framed the moves as efforts to support U.S. manufacturing and cited national security, though he did not provide detailed legal or economic justification in his announcements.

The decision marks a dramatic escalation in Trump’s tariff strategy, which has already included sweeping duties on steel, aluminum, autos, copper, and other goods during his second presidency. Observers note that the pharmaceutical tariffs could disrupt global supply chains, raise the cost of medicines in the U.S., and provoke retaliation from trading partners.

In response to the announcement, Indian pharmaceutical stocks tumbled. The U.S. is a major market for Indian drug exports, although much of India’s trade is in generics rather than branded pharmaceuticals — which the tariff targets do not explicitly address. Several Indian companies, including Sun Pharma, saw share price declines of over 3 %.

Trump’s truck and cabinetry tariffs also went beyond pharmaceuticals. The 25 % tariff on imported heavy trucks is intended to protect U.S. manufacturers such as Peterbilt, Kenworth, Freightliner, and Mack from “outside competition,” Trump said. The 50 % tariff on kitchen cabinets and bathroom vanities and 30 % on upholstered furniture reflect his administration’s claims that foreign imports are “flooding” the U.S. market.

Trump’s announcement comes amid ongoing national security investigations under Section 232 of the Trade Expansion Act. Earlier in 2025, the Commerce Department launched probes into trucks, pharmaceuticals, and other imports to assess whether they threaten U.S. security. Some analysts suggest the tariff declarations may be a signal that these investigations are nearing completion.

Markets reacted swiftly. Pharmaceutical and furniture stocks in Asia declined, while U.S. sectors sensitive to construction and automotive supply chains also showed volatility. Critics warn that imposing such steep levies could exacerbate inflation, strain federal healthcare programs like Medicare and Medicaid, and destabilize bilateral trade relations. Proponents, however, argue the tariffs will incentivize reshoring of production and reduce reliance on foreign supply.

Trump’s sweeping tariff announcement is likely to dominate trade discourse in the coming weeks. The administration faces imminent pressure to define enforcement rules, determine which countries or products may receive exemptions, and respond to legal challenges as trading partners evaluate retaliation or concession strategies.

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Reliance Consumer Products Limited (RCPL), the fast-moving consumer goods (FMCG) arm of Reliance Retail, has announced a significant investment of ₹1,156 crore to establish an integrated manufacturing facility in Tamil Nadu. The facility will be located at the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) Allikulam Industrial Park in Thoothukudi district. Spanning 60 acres, the plant is set to produce a diverse range of products, including regional snacks, biscuits, spices, wheat flour, and edible oils. This strategic move underscores RCPL’s commitment to expanding its footprint in the southern market and catering to the growing demand for FMCG products in the region.

The project is expected to generate approximately 2,000 local jobs over the next five years, contributing to the state’s employment landscape. State Industries Minister TRB Rajaa highlighted that this development positions Tamil Nadu as a preferred destination for national FMCG players, attributing the state’s industrial growth to the “Dravidian Model” of governance championed by Chief Minister M.K. Stalin. He emphasized that the state continues to attract marquee national FMCG players, leaving no major sector untapped.

RCPL’s decision to set up its first manufacturing unit in Tamil Nadu aligns with the state’s ongoing efforts to bolster its industrial infrastructure and attract significant investments. The establishment of this facility is anticipated to enhance the state’s position in the FMCG sector, fostering economic growth and development in the region.

This investment marks a significant milestone for RCPL as it expands its manufacturing capabilities and strengthens its presence in the competitive FMCG market. The company’s strategic focus on diversifying its product offerings and enhancing production capacity is expected to yield positive outcomes, both in terms of market share and consumer reach.

In summary, RCPL’s ₹1,156 crore investment in Tamil Nadu signifies a pivotal step in the company’s growth trajectory, contributing to regional economic development and reinforcing its position in the FMCG industry.

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The Union Cabinet, chaired by Prime Minister Narendra Modi, on Tuesday approved a comprehensive package of ₹69,725 crore aimed at revitalizing India’s shipbuilding and maritime ecosystem. The initiative introduces a four-pillar strategy to strengthen domestic capacity, improve long-term financing, promote shipyard development, enhance technical capabilities, and implement legal, taxation, and policy reforms.

Under the plan, the Shipbuilding Financial Assistance Scheme (SBFAS) has been extended until March 31, 2036, with a total corpus of ₹24,736 crore. This includes a Shipbreaking Credit Note of ₹4,001 crore and the creation of a National Shipbuilding Mission to oversee implementation. The scheme seeks to incentivize domestic shipbuilding, reduce project costs, and encourage technological adoption in shipyards across the country.

The package also introduces the Maritime Development Fund (MDF) with a total corpus of ₹25,000 crore, which will provide long-term financing for the sector. A Maritime Investment Fund of ₹20,000 crore will see 49% participation from the government, complemented by an Interest Incentivization Fund of ₹5,000 crore aimed at lowering the effective cost of debt and improving project bankability.

Further, the Shipbuilding Development Scheme (SbDS), with an outlay of ₹19,989 crore, is designed to expand domestic shipbuilding capacity to 4.5 million Gross Tonnage annually. The scheme will support the development of mega shipbuilding clusters, upgrade infrastructure, establish the India Ship Technology Centre under the Indian Maritime University, and provide risk coverage including insurance for shipbuilding projects.

The government expects the overall package to unlock 4.5 million Gross Tonnage of shipbuilding capacity, generate nearly 30 lakh jobs, and attract investments of around ₹4.5 lakh crore into India’s maritime sector. Officials noted that the measures will not only bolster economic growth but also enhance national, energy, and food security by strengthening supply chains and maritime routes.

Experts said the initiative will reinforce India’s geopolitical resilience and strategic self-reliance, advancing the government’s vision of Aatmanirbhar Bharat and positioning the country as a competitive player in global shipping and shipbuilding.

India’s maritime sector has historically been central to trade, supporting nearly 95% of the country’s trade by volume and 70% by value. Shipbuilding, often called the “mother of heavy engineering,” remains critical for employment, investment, national security, and the resilience of trade and energy supply chains.

The Cabinet’s approval marks a major step in modernizing India’s maritime infrastructure and promoting long-term competitiveness in shipbuilding, aligning with the government’s broader industrial and strategic priorities.

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Strong signs of demand in both the two‑wheeler and four‑wheeler segments have lifted shares of automotive companies, with the Nifty Auto index gaining nearly 1.8 percent on September 23. Trimmed by weakness elsewhere in the market, the auto rally was led by names like Maruti, Tata Motors, Mahindra & Mahindra, Hero MotoCorp, Eicher, along with Ashok Leyland, Bajaj Auto, TVS Motor, and Bharat Forge. The popular NBFC Bajaj Finance also got buoyed as auto financing looks set to gain from the surge in vehicle purchases.

Channel checks and early festive‑season data indicate that the first day of Navratri has seen healthy customer activity. Maruti reported close to 30,000 bookings and around 80,000 enquiries on Day 1, while enquiries for small cars have surged nearly 50 percent over normal levels. Hyundai Motor India recorded around 11,000 dealer billings on September 22, marking its best single‑day performance in the past five years. Analysts believe that the combination of reduced GST rates (under GST 2.0 reforms), festival sentiment, and better price affordability have unlocked pent‑up demand that was held back during the Shraddh period.

Brokerages have turned quite optimistic. Goldman Sachs upgraded Maruti Suzuki’s rating from Neutral to Buy, setting a target price of Rs 18,900 per share. The upgrade helped push Maruti shares to a 52‑week high. Other firms, such as Nuvama, expect the demand upcycle for passenger vehicles (PVs) to continue through FY29, supported by favorable tax policies, upcoming government pay‑commission recommendations, new model launches, and expectations of further rate cuts by the RBI. Experts at Nuvama note that historically the upcycle in autos lasts about six to eight years, suggesting there is room for the current momentum to extend further.

Despite the positives, some challenges persist. Supply constraints for certain popular variants could test the ability of manufacturers to meet demand. Price sagas in electric two‑wheelers have narrowed, yet consumers are showing willingness to pay more for differentiated or premium features. Heavy vehicles are seeing stronger value growth rather than volume growth, as fleet operators prefer shifting to higher tonnage trucks to improve margins and utilization.

From a policy perspective, the recent GST reforms (GST 2.0) appear to be delivering early results. The downward reconstructions in tax rates on passenger vehicles and two‑wheelers have made entry‑level models more affordable. Analysts suggest these reforms may be key in sustaining demand through the festival season and beyond.

Looking forward, industry experts believe that if domestic demand remains strong, OEMs that manage costs effectively and maintain supply will benefit most. Dealers anticipate volume growth of over 20 percent during the core festive period from October to December. Auto companies are adjusting strategy to ensure small car and affordable EV segments are well stocked, as growth in those areas could define winners in the near term.

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