Markets stage rebound after 6th week decline
The 30-share Sensex jumped 746.29 points or 0.93 per cent to settle at 80,604.08 with 26 of its constituents ending higher. During the day, it surged 778.26 points or 0.97 per cent to 80,636.05. The 50-share NSE Nifty jumped by 221.75 points or 0.91 per cent to 24,585.05.
'The market saw a relief rally post a 3-month low; positive global cues and a gradual return of FIIs supported the sentiment. Investors are positively assessing the upcoming US-Russia Summit this week, which may possibly give way to a de-escalation in geopolitical tensions.
While a near-term caution may still prevail, the more definite assessment of the US trade and growth impact is yet to be assessed fully,' Vinod Nair, Head of Research, Geojit Investments Ltd, said. As many as 2,237 stocks advanced, while 1,930 declined and 170 remained unchanged on the BSE.
'Markets started the week on an upbeat note, gaining nearly a percent and providing a breather after the recent decline. The tone was positive from the outset and further strengthened in the latter half, supported by a noticeable recovery in heavyweights across sectors,' said Ajit Mishra, Sr V-P (research), Religare Broking.
Among Sensex firms, Tata Motors, Eternal, Trent, State Bank of India, UltraTech Cement and Larsen & Toubro were the major gainers. However, Bharat Electronics, Bharti Airtel and Maruti were the laggards. The BSE midcap gauge climbed 0.79 per cent and the smallcap index rose by 0.35 per cent. The majority of the BSE sectoral indices ended higher.
Realty surged the most by 1.86 per cent, followed by bankex (1.13 per cent), healthcare (1.12 per cent), auto (1.03 per cent), financial services (1 per cent), utilities (0.92 per cent), services (0.90 per cent) and power (0.85 per cent). Consumer Durables emerged as the only laggard.
Foreign Institutional Investors (FIIs) bought equities worth Rs1,932.81 crore on Friday, according to exchange data.
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Mint
11 minutes ago
- Mint
The ultimate guide to the Trump tariff fallout: Trade wars, Russian oil, and India-US ties
New Delhi: A fortnight after Donald Trump won the US presidential election in November 2024, Rahul Roy-Chaudhuri, a senior fellow at the International Institute for Strategic Studies, was speaking at a global conference on Trump in Naples, Italy. 'I noticed that the Europeans were very pessimistic, whereas the Indians were optimistic—cautious, but optimistic. They were upbeat about Trump," said Roy-Chaudhuri, a specialist in South Asian affairs, who was presenting a paper on the Indian perspective. Now, days after Trump announced a stiff new tariff regime and secondary sanctions against India, the London-based strategic analyst wonders, 'Did we get that wrong? Were the Europeans right after all?" He's not the only one left bewildered by Trump's measures—although this story is still developing, with a myriad unknowns that could tip the scales in favour of India. Why us, is a common refrain heard among civil servants and businesses in New Delhi these days, although some say India should have seen this coming, and drawn hard lessons from Trump's first term, when he forced India to lower tariffs on US-made Harley Davidson motorcycles and bourbon whisky. Back when Trump first made a bid for the US presidency in 2016, India and Indians leapt to his aid. With the ruling Bharatiya Janata Party champing at the bit to craft a new foreign policy that would eject ideology in favour of trade and business, the moment seemed opportune. Hell, you could even say auspicious. Some in India publicly prayed for Trump's victory with garlands, chants and conch-shells. In the US, meanwhile, influential Indian-origin supporters of his Republican Party swiftly swung into action helping organise glamorous fund raisers and public meetings. Back then, it seemed, India couldn't put a foot wrong as both countries forged closer ties against the backdrop of Chinese belligerence in India's neighbourhood and the Asia-Pacific region. But seven months into his second term, Trump has hiked tariffs on some Indian imports to 25% and imposed secondary sanctions in the form of another 25% tariffs for purchases of sanctioned Russian oil, which are set to kick in on 27 August. Announced in the middle of US-India negotiations on a bilateral trade agreement (BTA) that the two sides expect will take mutual trade to $500 billion by 2030, India called the move 'unfair, unjustified and unreasonable". Mint breaks down the tariff war, the future of bilateral trade, India's (and the world's) energy trade with Russia, the changing landscape of foreign policy, and what could heal the injured Indo-US ties. What went wrong 'There was a mismatch of expectations around the bread and butter issues of the trade agreement," said Pankaj Saran, former deputy national security adviser and ex-ambassador to Russia. 'Even the first time around (the first Trump presidency), we had a difficult experience. This time, we were mindful of past experience and offered a generous package, with a lot of concessions. The Americans admitted they had received it but they were unsure how to handle it internally." Not just Americans and Indians, no one's quite sure how to deal with the most mercurial US presidency in living memory. But the reversal in India-US ties, as India pushed back on American demands to open up its market for agricultural produce and allow genetically modified (GM) products, has been stunning. 'There is no precedent," said Saran. 'Trump's mode of operation is that there is no last word. It is a combination of strategies involving a mix of carrot, stick and public admonition. For him, it seems, outcomes are more important." Who needs Russia more? Both Europe and America continue to buy vital commodities from Russia. America, for instance, continues to import Russian enriched uranium, plutonium, fertilisers and palladium, a key mineral used in catalytic converters in vehicles. And although European Union (EU) imports from Russia have fallen 86% since the first quarter of 2022, when Russia invaded Ukraine, Reuters reported on 6 August that the 27-nation grouping continues to buy Russian oil, nickel, natural gas, fertilizer, iron and steel from Russia. In fact, according to energy trade data tracked by the Centre for Research on Energy and Clean Air, a non-profit think-tank founded in Helsinki, the EU was the world's leading buyer of Russian LNG and piped gas—key to heating up countries with growing ageing populations and harsh winters. Indian purchases were convenient for the US and EU, which bought products refined in India from Russian crude, while global prices were shored up. As Eric Garcetti, who was US ambassador to India under former President Joe Biden, told the Washington-based Council on Foreign Relations in May 2024, 'They [India] bought Russian oil because we wanted someone to buy Russian oil at a price cap—that was not a violation or anything, that was actually the design of the policy, because as a commodity, we did not want the price of oil to go up. They fulfilled that." Trump's political priorities Trump wants to address three overarching domestic problems by the tariffs—trade balance, budget deficit and his fiscal problem, said Mohandas Pai, chairman of Aarin Capital. 'He wants to reduce the trade deficit with India ($45.8 bn in 2024) by cutting imports. But the US has very little to export except high-tech products, defence equipment and aircraft. Trump seems to have forgotten the 450 Boeing aircraft orders India has already placed," Pai said. 'Tariffs don't work' There are several dimensions to the current political problems that the Trump administration is attempting to solve, and pivoting to just one, that is restricting imports, will not solve problems that are large and generic in nature, said Neelkanth Mishra, chief economist at Axis Bank. 'The Americans have forgotten that tariffs don't work. If anyone thinks that the profit pools of exporters to the US or American firms importing goods are so large that $500-600 billion of tariffs can be absorbed, then they are completely mistaken. These are efficient markets, and therefore have thin margins." Figures released by the non-partisan Congressional Budget Office, analysed by Fox News, showed that the US budget deficit ballooned by $109 billion to $1.6 trillion in the first 10 months of FY25 compared with the same period a year ago, despite the tariffs. Spending rose by $372 billion over this period, led by expenditure on benefits, including for medical aid for America's ageing population. National debt surged $60 billion to $37 trillion. Inflation is coming Cost escalations are set to be passed on to American consumers. According to research by The Budget Lab, an independent think tank of Yale University, published on 7 August, American consumers are set to bear an overall average effective tariff rate of 18.6%, the highest since 1933. After taking into account changes in consumer spending patterns, influenced by factors like income and prices, the average tariff rate will be 17.7%, the highest since 1934. This is not good news for Indian exports either. The tariffs disproportionately impact labour-intensive clothing and textiles, with US consumers facing 39% higher shoe prices and 37% higher apparel prices over the next two years. Not surprisingly, Trump has spared two sectors from high tariffs, pharmaceuticals and smartphones, unwilling to tinker with cheap Indian-made generic drugs and mobile phones prices. The prize for peace Things could turn around very quickly for India if a planned 15-August summit between Trump and Russian president Vladimir Putin manages to strike a peace deal—an outcome that should scotch at a stroke the raison d'être for secondary sanctions. It is not known if Ukrainian president Volodymyr Zelensky, who has European backing, will attend. Indian Prime Minister Narendra Modi and Zelensky had a conversation on Monday, following which the Ukrainian leader said on X, 'I had a long conversation with the Prime Minister of India. We discussed in detail all important issues—both of our bilateral cooperation and the overall diplomatic situation. I am grateful to the Prime Minister for his warm words of support for our people. It is important that India is supporting our peace efforts and shares the position that everything concerning Ukraine must be decided with Ukraine's participation. Other formats will not deliver results." To be sure, even if the peace deal goes through, which would be a massive feather in Trump's world peace-building cap and Nobel peace prize aspirations, it is not clear if Washington would withdraw the 25% tariffs. The 'superimposition' shock Analysts say signs of Trump's tariff obsession have long been strewn around global trade channels. He began calling India the 'tariff king" in his first presidency and, continuing to riff on the theme, made clear in the hustings last year that he will stop countries from selling goods on the cheap in America, a key pledge that pleased his core MAGA (Make America Great Again) constituency. Rather, it is the non-trade stuff, chiefly the way Trump handled the aftermath of this year's India-Pakistan conflict, that came as a shock—an intrusion that Saran calls 'the superimposition of the political aspect". This was marked by Trump's repeated claims to have helped end the conflict, denied by New Delhi, which views Kashmir mediation as a red line, and his hosting the Pakistan army chief, Gen. Asim Munir, at the White House. The man later issued outrageous nuclear threats from American soil. 'There's no doubt that Pakistan has come up in the political relationship (with America)," said Saran in comments made before Munir's nuclear threats. 'Trump probably found the India-Pakistan conflict to be a geo-political surprise, and he is convinced about the American role in ending it. The difference between the Indian and Pakistani approach to this was sharp. The disagreements began with trade, and political aspects were superimposed on it." White House spokeswoman Anna Kelly said Trump hosted Munir after he called for the president to be nominated for the Nobel Peace Prize. According to Roy-Chaudhuri of IISS, New Delhi may have 'mismanaged massaging his (Trump's) ego". How to heal With India seen by much of the world as key to addressing the negative impact of a fragmented world described by some experts as a fallout of 'deglobalization," its relationship with the US will be keenly watched. For ties to heal, some suggest looking at some of the domestic economic areas that have emerged as irritants. 'Politicians, like markets, tend to be forward-looking," said Mishra, asked if tariffs could spur domestic reforms. 'Consensus needs an external pressure to allow the government to go through meaningful reforms, in agriculture and GM crops for instance. We've been reluctant to change. Why not change now? In manufacturing, we should be looking at domestic demand. The assumption everyone makes is that manufacturing is chiefly for exports—that is wrong. Export competitiveness is important for better productivity, but exports as a source of end-demand are unlikely to be large enough." To be sure, introducing such reforms in India won't be easy. New Delhi, after all, chose to walk out of the Doha Round of trade talks in 2008 rather than give in to American pressure on agriculture. China supported the Indian position against the US then, and something similar may be happening this time around too, with four of the Brics Plus grouping founders— Brazil, Russia, India and China—reportedly eyeing a response to tariffs. Trump is deeply suspicious of Brics, viewing it as anti-American, and this has emerged as another sticking point in India-US ties. But the Russian ambassador to India told a recent meeting on Brics, organised by the India Foundation, more than once that 'de-dollarization (finding an alternative to the global currency of trade) was never a Brics proposal". Pai recommends keeping the temperature down. 'India and the US are joined at the hips when it comes to technology. As many as 25 major US tech companies have Indian-origin CEOs," said Pai, whose Aarin Capital is an investor in technology-intensive businesses. 'It's a temporary set-back. In India, there's a lot of pride; we are not deal-driven." A test ahead 'Trump's Presidency is a work in progress," said Saran. 'You have to play with the cards you are dealt. We have to find our own equilibrium with President Trump, and be careful not to make matters worse. Indian diplomacy will be strongly tested in the coming years, with flashes from the Cold War years, now fuelled by terrorism, threatening to cloud what promised to be a new era of growth-fuelled development. Equally, with a mercurial US president, things could swing right back to a more predictable and respectful relationship. But even amid the current uncertainty, Indian diplomats can draw satisfaction from the fact that an increasingly multipolar world sees India as a shining example of economic progress. And that's something even Trump cannot ignore.
Indian Express
11 minutes ago
- Indian Express
‘Sweet aroma of new opportunities': Basmati exporters eye Middle East, other markets amid US tariff challenge
With most of the over 60 lakh metric tonnes of Basmati exported from India coming from Punjab and Haryana, exporters are worried about the challenges posed by the latest US tariffs and how it would impact the industry. After the newly announced 25 per cent additional tariff, India has now joined Brazil at the top of the list of countries facing the highest import taxes under President Donald Trump's tariff regime. But what if the US tariffs make Indian Basmati uncompetitive? Can other markets absorb this quantity, and where is the demand strongest? According to APEDA, Punjab and Haryana produce around 80 per cent of the country's Basmati, with the former ranking number one. The Basmati grown here also comes under the GI tag, which also leads to high demand abroad. 'Loss of American market need not spell disaster' In the 2024–25 financial year (April–March), India exported around 3.61 LMT of Basmati to the US. Experts said that while recent developments indicate a setback for the country's Basmati exporters after Washington slapped a steep tariff on imports, the US actually accounts for a modest share of India's total aromatic rice trade. 'With strong demand elsewhere, experts say the loss of the American market need not spell disaster—if exporters move swiftly to tap alternative buyers,' said an exporter. The US-bound Basmati could be redirected to West Asian countries like Saudi Arabia, Iran, Iraq, UAE, Yemen, and Oman. The region is already the largest buyer, purchasing around 70 per cent of the exports, with Saudi Arabia, Iran, and Iraq accounting for around 50 per cent of the Basmati exports in 2024–25. By maintaining stricter quality standards, Europe and the UK can also consume some quantities, given the presence of a strong diaspora there. Demand in the domestic Indian market during weddings, festivals, and for luxury consumption is also increasing. 'No doubt the Middle East, which has both the appetite and cultural preference for Indian Basmati, has a huge demand for it. Saudi Arabia alone imported over 11 LMT in 2024-25, so an additional 3–4 LMT across the Middle East region is feasible. But sudden high tariffs by the US require some preparation, and it may hit Basmati exports a bit in the beginning,' said a source with the APEDA. 'Gradually, however, Indian Basmati will find a new place, and US-bound Basmati could be exported to other countries. In 2023–24, India was exporting Basmati to 150 countries, which increased to 154 countries in 2024–25,' the source said, adding that the surplus Basmati can be absorbed, though prices would likely fall to some extent initially, but not for long. 'Actual impact will be smaller' 'Even if the US market is lost due to high tariffs, it will help in adaptability and in creating new markets,' said a member of the All India Rice Exporters Association (AIREA), adding that since America accounts for only 6 per cent of the total exports, the impact is smaller in scale than people might assume. 'Suddenly losing the US market might be a blow in the current scenario, but India's Basmati story does not end there. For exporters willing to diversify and adapt, the sweet aroma of new opportunities is already waiting for them in various countries,' said another exporter. Director of the Punjab Rice Millers and Exporters Association, Ashok Sethi, said US tariffs on Basmati will certainly hit prices because India exports 3–4 lakh tonnes of Basmati to the nation and for this to be consumed by already existing markets, would mean that prices would slip lower. 'Moreover, the Basmati cultivation season is already over in Punjab, and this year around 6.83 lakh hectares are under the crop. Exporters will have to assess the market before purchasing from farmers,' he said.
Mint
19 minutes ago
- Mint
Max Healthcare Q1 profit up 17 pc at ₹345 cr
New Delhi, Aug 13 (PTI) Max Healthcare Institute on Wednesday said its profit after tax increased 17 per cent year-on-year to ₹ 345 crore for June quarter FY26 on enhanced utilisation of operational beds across the hospital network. The healthcare major reported a profit after tax (PAT) of ₹ 295 crore in the April-June period last year. Gross revenue rose to ₹ 2,574 crore in the quarter from ₹ 2,028 crore in the year-ago period, Max Healthcare said in a statement. Net debt at June-end stood at ₹ 1,755 crore as compared with ₹ 1,576 crore on March 31, 2025. The company said its board has approved execution of an agreement to lease a built-to-suit 130-bed hospital in Dehradun. The proposed facility will be located near the company's existing 220-bed hospital, which is operational since 2012. Scheduled for commissioning in 2028, the new hospital will, among other specialties, focus on advanced oncology services, including radiation therapy, it said. Besides, Jaypee Healthcare Ltd, a wholly-owned subsidiary, has executed a binding term sheet to divest Chitta (Bulandshahr) and Anoopshahr hospitals to Manush Aushadi and Anusandan Ltd for ₹ 40 crore, subject to working capital adjustment at closing. This move is in line with the company's strategy to concentrate on super-specialty care in larger cities, it said. "Our sustained growth is a reflection of our strategy and execution capabilities," Max Healthcare Institute Chairman and Managing Director Abhay Soi said. The commissioning of 160-bed brownfield tower at Max Mohali, along with additional brownfield capacities coming online at Max Smart and Nanavati-Max shortly, will significantly enhance clinical and financial performance of the network, he added. "In parallel, we are scaling up our clinical and support teams, while optimizing our service mix to ensure rapid and effective utilisation of the new capacities," Soi stated. Shares of the company were trading 0.24 per cent up at ₹ 1,265 apiece on BSE.
