The week in charts: Retail inflation, Tesla in India, Paytm shares

Mint

19-07-2025

India's retail inflation eased again in June, marking the longest streak of decline in at least a decade. Meanwhile, Tesla has launched its first showroom in India, and Paytm shares surged past the ₹1,000 mark after a gap of over six months amid strong market momentum.
Falling inflation
India's retail inflation eased to 2.10% in June from 2.82% in May, nearing the RBI's lower tolerance limit of 2%. This marked the eighth straight month of decline, the longest stretch in at least a decade. Food prices, which make up nearly 40% of the CPI basket, fell 1.06% year-on-year in June, marking the first food deflation since January 2019. The cooling inflation offers some relief to the RBI, which struggled for years to keep it near its 4% target.
Tesla's touchdown
After years of delay, Tesla has officially entered the Indian market with its first showroom in Mumbai's BKC. Instead of the more affordable Model 3, the company has launched with the SUV-like Model Y, better suited for Indian road conditions, Mint reported. A lower-cost variant is expected to arrive next year. Priced at ₹59.9 lakh, the Model Y positions itself in the premium EV segment and faces stiff competition. With a claimed range of 575 km, it trails behind rivals like the Kia EV6 (650 km) and Hyundai Ioniq 5 (631 km).
Price surge
₹1,000: That's the level Paytm shares reclaimed on 16 July, crossing the mark for the first time in over six months. The stock has climbed 9% this month, extending a steady recovery since its May 2024 low of ₹310. The recent rally was fueled by the buzz around Paytm's likely upgrade to the MSCI Standard Index, which could draw $212 million in inflows, Mint reported, citing Motilal Oswal estimates. Mutual funds raised stakes in the company in Q1, and analysts expect Paytm to report its first profit after tax, driven by operating leverage and steady merchant growth.
Fund frenzy
Jio BlackRock, the equal joint venture between Jio Financial Services and global investment giant BlackRock, has made a strong debut, raising ₹17,800 crore through its first three debt-oriented schemes. This has placed it among India's top 30 fund houses by AUM, according to an analysis by howindialives.com. Backed by Reliance Jio's 475 million-strong user base and BlackRock's investment tech, the venture aims to shake up the mutual fund market. Jio Financial's stock, which had been declining due to operational delays, has rebounded sharply in the past four months.
Narrowing deficit
India's merchandise trade deficit narrowed to $18.78 billion in June, down nearly 10% from a year ago. This was mainly due to a sharper fall in imports. While exports were nearly flat at $35.1 billion, imports fell 3.7% to $53.9 billion. Exports growth was hindered by a 15.9% decline in exports of petroleum products. Exports of nonpetroleum products grew 2.9%, albeit slower than 5.0% the previous month. Imports also declined mainly due to petroleum products.
Jane jinx
₹4,843 crore: That's the amount Jane Street has deposited in an escrow account to comply with the Securities and Exchange Board of India's (Sebi's) interim order in the alleged index manipulation case in an effort towards regaining market access in India. As per a clause in the order, the trading ban should be lifted once this deposit is verified, a Mint report said. While the move signals progress, Sebi has yet to confirm compliance. Legal experts say the process is typically swift but not instant. Jane Street remains under investigation, with regulators maintaining heightened scrutiny over its future trading activity.
Tariff tussle
India and the US are yet to finalise a trade deal, even as the 90-day extension on reciprocal tariffs has ended. The US's insistence on getting greater market access in the agriculture and dairy sectors has led to a stand-off, with the Indian officials negotiating a more balanced outcome that does not hurt the domestic players in the two sectors. India has been protective of the agricultural and allied sectors and imposes the world's third-highest tariff on imports, only behind South Korea and Turkey, a Mint analysis showed.
Chart of the week: Fleeing millionaires
India witnessed one of the largest outflows of dollar millionaires so far in 2025, with 3,500 dollar millionaires migrating on a net basis. These individuals together have an estimated wealth of $26.2 billion. The UK topped the list, with 16,500 millionaires migrating from the country.
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