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Banking, Equities, Market News - June 24, 2025

Stock Market Surge: RIL and Airtel Drive Massive Gains as Sensex Climbs 1.5% in a Week

Stock Market Surge: RIL and Airtel Drive Massive Gains as Sensex Climbs 1.5% in a Week

The Indian stock market witnessed a significant rally last week, with the BSE Sensex surging by approximately 1,289.6 points or 1.58%. This uptrend added substantial value to leading companies, with Reliance Industries Limited (RIL) and Bharti Airtel emerging as the top contributors to the overall market capitalization growth.

Telecom and Energy Lead the Charge
Bharti Airtel and RIL were key drivers of last week’s gains. Bharti Airtel added an impressive ₹54,056 crore to its market value, closing the week with a total market capitalization of ₹11.04 lakh crore. The company’s stock price rose nearly 4%, closing at ₹1,934 per share. The surge was largely attributed to strong investor confidence in the telecom sector, driven by increasing data consumption and the company’s expanding 5G network.
Reliance Industries also posted a strong performance, adding about ₹50,070 crore in market value, pushing its total market capitalization to approximately ₹19.82 lakh crore. Reliance’s shares advanced by 2.5%, ending the week at ₹1,464.10 per share. Analysts attribute this growth to optimism surrounding Reliance’s energy, retail, and telecom segments, as well as positive market sentiment regarding its future growth trajectory.

Financial and IT Stocks Join the Rally
Besides telecom and energy, several major financial and IT companies also contributed to the market’s upward movement. HDFC Bank, India’s largest private lender, saw its market capitalization increase by approximately ₹38,504 crore, closing the week with a valuation of around ₹15.07 lakh crore. The bank’s continued focus on improving asset quality and stable growth in its loan book have kept investors positive.
Infosys, one of India’s leading IT services companies, added about ₹8,433 crore in market value, with a closing valuation of ₹6.74 lakh crore. The gains in IT stocks like Infosys were supported by expectations of steady demand for digital services and improved revenue pipelines despite global macroeconomic uncertainties.
ICICI Bank also participated in the rally, adding around ₹8,012 crore to its market value and reaching a total market capitalization of approximately ₹10.18 lakh crore. Investor confidence in ICICI Bank remains strong, driven by its consistent financial performance and digital banking initiatives.
State Bank of India (SBI), the country’s largest public sector bank, experienced a market cap addition of ₹3,213 crore, ending the week with a valuation of around ₹7.10 lakh crore. The stock’s resilience continues to reflect the strength of India’s banking sector recovery and SBI’s strategic growth plans.

Losses in Select Companies
While many large-cap stocks posted gains, a few significant players experienced a decline in their market capitalization. Bajaj Finance saw a loss of approximately ₹17,876 crore, reflecting investor caution despite the company’s robust lending business. Tata Consultancy Services (TCS) recorded a drop of about ₹4,613 crore, while Hindustan Unilever Limited (HUL) and Life Insurance Corporation (LIC) lost ₹3,336 crore and ₹1,107 crore respectively.
The minor setbacks in these companies are seen as part of normal market fluctuations, as investors rotated funds into more aggressively growing sectors like telecom and energy.

Top 10 Most Valued Companies
By the end of the week, the ten most valued Indian companies included Reliance Industries, HDFC Bank, TCS, Bharti Airtel, ICICI Bank, SBI, Infosys, LIC, Bajaj Finance, and HUL. These companies continue to dominate the Indian corporate landscape in terms of market capitalization and investor attention.

Overall Market Outlook
The broader market rally highlights growing investor confidence in key sectors such as telecom, banking, energy, and information technology. The significant addition to market capitalizations indicates robust participation from institutional investors, supported by positive domestic economic indicators and expectations of continued earnings growth.
Experts believe the stock market could maintain its upward trajectory in the coming weeks, especially if key companies continue to report solid quarterly results and global market conditions remain stable. However, they also caution that intermittent corrections may occur, driven by profit booking and global uncertainties.

Conclusion: Strong Weekly Gains Led by Market Heavyweights
The Indian stock market’s performance last week showcased a strong rally powered by heavyweight companies like Bharti Airtel and Reliance Industries. While some companies faced moderate declines, the overall sentiment remained bullish. With multiple sectors contributing to the gains, the Sensex’s 1.5% weekly surge reflects both sectoral strength and investor optimism about India’s economic prospects.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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NATO Eases Defence Spending Demand Following Spain’s Objection to 5% GDP Commitment

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NATO Eases Defence Spending Demand Following Spain's Objection to 5% GDP Commitment
Economy, Markets - June 24, 2025

NATO Eases Defence Spending Demand Following Spain's Objection to 5% GDP Commitment

NATO Eases Defence Spending Demand Following Spain’s Objection to 5% GDP Commitment

NATO recently softened its proposed military spending framework after Spain firmly opposed the initial plan. Originally, the alliance suggested that member nations contribute 5% of their Gross Domestic Product (GDP) toward defence by 2035. Spain’s strong resistance led NATO to revise its approach and introduce a more adaptable system that accommodates varying national budgets.

Spain Challenges the Proposed Spending

Spain quickly rejected the proposed defence target. Prime Minister Pedro Sánchez argued that dedicating 5% of Spain’s GDP to military spending would put excessive pressure on public funds, threatening vital services such as healthcare, education, and welfare.
At this time, Spain allocates around 1.24% to 1.3% of its GDP to defence-related efforts. The Spanish government plans to raise this to 2.1% by 2025 but has made it clear that spending will not increase beyond that point. Sánchez emphasized that maintaining strong public welfare systems takes precedence over boosting military budgets.

NATO Provides Flexible Terms
Responding to Spain’s firm stance, NATO adjusted its agreement to offer member nations more spending freedom. The alliance changed the wording from “we commit” to “allies commit,” giving each country the ability to set its own defence spending targets.
This new arrangement allows Spain to follow its chosen defence investment pace while still contributing to NATO’s broader goals. NATO Secretary-General Mark Rutte also assured Spain in writing that it can continue on its planned budget path, provided it meets the defence capability expectations set by the alliance.

Spain Celebrates the Agreement
Prime Minister Sánchez welcomed the updated terms, describing them as a diplomatic achievement for Spain. He confirmed that the country will stick to its plan to gradually raise military spending to 2.1% of GDP, while actively supporting NATO’s security objectives. Sánchez also stressed that Spain’s focus on social welfare will remain unchanged.
The decision has been well received domestically, where public sentiment strongly supports the protection of essential social programs over significant increases in defence spending.

Broader Implications for NATO Members
Spain’s successful negotiation may influence other NATO countries that currently spend less on defence. Nations such as Italy, Belgium, Portugal, and Canada, which are also below the traditional 2% guideline, might now seek similar flexibility in their commitments.
Although some defence specialists worry that allowing exceptions could weaken NATO’s overall strength, alliance leaders argue that a flexible approach is essential to preserve cooperation among nations with varying economic pressures.

Key Moment for NATO’s Strategy
This adjustment arrives at a crucial time as NATO prepares for its summit in The Hague. The alliance aims to present a strong, unified stance while managing continuing security issues, including the ongoing conflict between Russia and Ukraine.
Concerns remain that internal disagreements over military budgets could harm NATO’s global image, especially after repeated criticism from former U.S. President Donald Trump regarding European defence contributions. By accepting Spain’s position, NATO has successfully prevented open disputes and maintained alliance harmony.

Scheduled Mid-Term Review in 2029
NATO’s revised framework includes a mid-term review set for 2029 to evaluate progress toward defence spending goals. This will provide an opportunity for each country to reassess its commitments based on evolving security needs.
Spain and other members will be able to revisit their defence strategies during the review, ensuring future flexibility depending on changing global circumstances.

Conclusion: NATO Prioritizes Flexibility and Unity
NATO’s decision to ease its defence spending requirement demonstrates a practical approach that balances collective security goals with individual national interests. By providing adaptable terms, NATO has upheld its unified strategy while recognising the budgetary limits of its members.
For Spain, this outcome represents a diplomatic win, allowing the country to contribute to NATO’s mission without compromising its social agenda. This flexible solution could serve as a model for addressing future internal disagreements, showing that NATO can evolve to accommodate diverse priorities among its allies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Indian Currency Slips: May Test ₹87 Mark Amid Worldwide Instability

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Z47 Launches $400M Fund for India's Tech Boom
Currency, Economy, Market News - June 23, 2025

Indian Currency Slips: May Test ₹87 Mark Amid Worldwide Instability

Indian Currency Slips: May Test ₹87 Mark Amid Worldwide Instability

The Indian rupee is under significant pressure due to rising global tensions, surging crude oil prices, and strong corporate demand for the US dollar. Currency experts believe the rupee could soon breach the crucial ₹87 per dollar level if these conditions persist. The combination of geopolitical risks and India’s dependence on energy imports has made the domestic currency highly vulnerable in the current scenario.

Geopolitical Tensions Drive Rupee Weakness

The recent escalation of the Israel-Iran conflict has created global uncertainty, pushing investors to shift their capital into safe-haven assets like the US dollar. This move has weakened several emerging market currencies, including the Indian rupee. The rupee has been on a continuous downward path in recent weeks, declining from ₹85.60 in the beginning of June to ₹86.72 by June 19, 2025.This sharp decline marks the rupee’s weakest point in nearly three months.

Experts caution that if the geopolitical tensions worsen or if the conflict spreads further, the rupee may break past the ₹87 mark. The ongoing instability has already led to concerns about the supply of crude oil, a commodity India heavily relies on.

Oil Prices Continue to Push Import Costs Higher

India is particularly sensitive to fluctuations in crude oil prices, as the country imports around 85% of its energy needs. The ongoing tensions in the Middle East have driven crude oil prices higher, with Brent crude nearing $79 per barrel recently. Analysts have warned that a $10 per barrel rise in crude oil prices could increase India’s current account deficit by approximately 0.3% to 0.4% of GDP.

A wider trade deficit forces India to spend more foreign currency on oil purchases, further increasing the demand for dollars and pushing the rupee down. The Indian rupee is likely to remain under stress as oil prices hold at higher levels.

 

Increased Dollar Demand from Indian Corporates

Apart from geopolitical concerns, the rising corporate demand for dollars is also contributing to the rupee’s weakness. Several Indian companies are actively purchasing dollars to cover their import payments and hedge against further rupee depreciation. This has created a strong demand for dollars within the domestic market.

The situation is further complicated by foreign investors pulling out funds from emerging markets amid growing global uncertainties. With capital outflows intensifying, the rupee faces additional downward pressure, increasing the likelihood of breaching ₹87 per dollar.

RBI Likely to Monitor and Intervene if Needed

The Reserve Bank of India (RBI) generally allows the rupee to move in line with market forces, but the central bank has a history of stepping in if volatility becomes excessive. With over $699 billion in foreign exchange reserves, the RBI is well-positioned to intervene if the rupee’s fall accelerates beyond acceptable levels.

Analysts believe the RBI may not aggressively prevent the rupee from touching ₹87 but will act to limit sharp fluctuations that could create panic in the financial markets. The central bank’s intervention could temporarily stabilize the currency, but broader global factors will still dominate the long-term direction.

Potential Support from Upcoming IPO Inflows

One positive development that could offer temporary relief to the rupee is the upcoming large initial public offerings (IPOs) in India. The upcoming ₹1.5 billion IPO of HDB Financial Services is likely to draw significant interest from foreign portfolio investors. These inflows could help ease the pressure on the rupee in the short term by bringing in fresh dollars.

However, market participants note that such support may not last unless crude oil prices fall or the geopolitical environment improves. Unless a stable and favorable change occurs, the weakness of the rupee is likely to continue.

Near-Term Outlook: Monitoring Key Levels

According to currency analysts, the rupee is expected to fluctuate between ₹86.00 and ₹87.50 in the short term. Should the rupee firmly cross the ₹87 level, it may head towards ₹88 unless the Reserve Bank of India intervenes or new foreign investments enter the market.

Traders are also keeping a close watch on the global crude oil market, as any movement beyond $80 per barrel could trigger another round of rupee weakness. Additionally, the continuation of foreign capital outflows and persistent dollar demand from Indian corporates will further shape the currency’s trajectory.

Conclusion

The Indian rupee is currently navigating through a challenging environment dominated by external risks and domestic dollar requirements. While there are potential stabilizers like IPO inflows and RBI interventions, the overall outlook remains cautious. A further rise in oil prices or worsening geopolitical tensions could see the rupee crossing ₹87 per dollar soon. Market participants, businesses, and policymakers will need to stay vigilant as these critical factors continue to unfold.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Tata Motors Revamps EV Strategy to Reclaim Leadership in Indian Market

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Tata Motors Revamps EV Strategy to Reclaim Leadership in Indian Market
Automobile News, Autos, Market News - June 23, 2025

Tata Motors Revamps EV Strategy to Reclaim Leadership in Indian Market

Tata Motors Revamps EV Strategy to Reclaim Leadership in Indian Market

Backed by a ₹16,000 crore plan, Tata aims for 50% EV market share through longer ranges, price parity, and massive retail expansion.

Reviving Momentum: Tata Motors Eyes Major Turnaround in EV Sector

After witnessing a sharp decline in its electric vehicle (EV) market dominance, Tata Motors is charting an ambitious roadmap to reclaim its leadership position. The automaker, which once held an overwhelming 81% share of India’s EV market in FY23, saw that figure plummet to 35% by May 2025, as per data from the Federation of Automobile Dealers Association (FADA).

With rival brands accelerating their product pipelines and offering more diverse EV portfolios, Tata Motors is responding with a multifaceted revival plan. Central to this renewed approach are range upgrades, cost restructuring, wider availability, and the introduction of new electric models—including premium vehicles under the Avinya brand.

Reaching for 50% Market Share Once Again

At the company’s recent Investor Day in Mumbai, Shailesh Chandra, Managing Director of Tata Passenger Electric Mobility, expressed confidence in reversing the slide. He expressed confidence that, over the medium to long horizon, the company is targeting a comeback to reclaim 50% of the electric vehicle market share.

To achieve this, Tata Motors is overhauling its strategy with a focus on three key parameters: improving the driving range of its EVs by up to 60%, expanding its retail footprint fourfold, and narrowing the price gap between EVs and internal combustion engine (ICE) vehicles. The company’s roadmap includes launching both bespoke EVs and mid-segment models over the next 18 months, in addition to expanding the Avinya lineup by 2026.

Next-Gen EVs with Better Range and Lower Costs

Tata Motors commands a significant lead in the low-cost EV category, securing 78% market presence with strong contributions from its Tiago and Punch electric models. These vehicles, generally regarded as urban commuter cars, offer driving ranges close to 250 km. However, Tata is now aiming to extend that range to between 350 and 400 km—making these cars more practical for longer usage while also working to maintain affordability.

“We see massive demand in the entry EV space. To meet this, we must push the range higher while keeping the costs low enough to rival petrol-powered cars,” Chandra explained.

At the premium end, Tata has already taken a significant step with the recently launched Harrier EV, boasting a driving range exceeding 500 km. In the mid-range ₹12–20 lakh bracket, where Tata offers the Curvv and Nexon EV, the company holds a 36% market share. With upcoming feature-rich models and pricing adjustments, Tata expects to make stronger inroads in this competitive segment.

Achieving Price Parity with ICE Models

A major recent milestone for Tata Motors has been narrowing the cost difference between its electric models and traditional fuel-driven cars. Through aggressive localisation of components, declining battery prices, and streamlined manufacturing, Tata has brought EV pricing in line with ICE variants for certain trims.

Consider the Nexon Creative AT: its electric variant comes in at ₹14.79 lakh, nearly on par with the petrol version, which is listed at ₹14.32 lakh. Similarly, the electric Harrier is being offered at ₹22.95 lakh—lower than its fuel-based counterpart, which costs ₹23.06 lakh. These pricing strategies reflect Tata’s intent to make EVs a viable option for a larger customer base.

Retail Expansion: From Hundreds to Thousands of Locations

Currently, Tata Motors has a presence in 230 cities and operates around 1,100 EV sales points across India. The company intends to massively broaden its footprint, targeting expansion into 1,000 urban and semi-urban locations within the next four to five years.

To streamline operations and enhance customer experience, Tata is also evaluating a dedicated sales network for EVs, possibly even separating it from the existing passenger vehicle channel. While not confirmed, the company acknowledges it as a “logical step” that is under active review.

Merging EV and PV Arms for Future Synergies

Tata Motors previously carved out its electric and passenger vehicle divisions to pursue more targeted and strategic expansion. However, with the market maturing and future strategies demanding tighter integration, the company is now considering reintegrating its EV division back into the passenger vehicle (PV) business.

PB Balaji, Group CFO of Tata Motors, mentioned that such a merger is on the horizon and will enable the company to build greater operational flexibility and efficiency.

The broader EV revival push will be powered by a planned ₹16,000 crore investment, to be funded through a mix of internal accruals, proceeds from the Production Linked Incentive (PLI) scheme, and support from the PV business.

Final Thoughts

Tata Motors is leaving no stone unturned in its mission to reclaim dominance in India’s electric vehicle space. After facing mounting competition and a steep drop in market share, the automaker is responding with a future-ready strategy that hinges on longer-range models, competitive pricing, and nationwide availability.

From expanding infrastructure to launching premium and entry-level EVs with improved performance, Tata’s ₹16,000 crore investment underscores a serious commitment to transformation. By working toward price parity and better driving experience, while potentially redefining brand and sales channels, Tata Motors is positioning itself for a powerful return to the top of the EV leaderboard.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Promoter Boost: Zee Media Shares in Spotlight After Major Stake Acquisition

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Vishnu Prakash R Punglia Promoters’ Stake Sale: A Strategic Step to Enhance Liquidity
Business, business update, Market News - June 23, 2025

Promoter Boost: Zee Media Shares in Spotlight After Major Stake Acquisition

Promoter Boost: Zee Media Shares in Spotlight After Major Stake Acquisition

Promoter stake hike sparks interest in Zee Media as financial struggles persist and strategic recovery efforts unfold to stabilize the company’s future.

Promoters Increase Stake, Market Reacts

Zee Media Corporation Limited’s shares have resurfaced in market discussions after a substantial promoter stake buy, signaling continued optimism about the company’s prospects despite enduring financial strain. The stock experienced some volatility during Friday’s trading session, dipping by more than 1.85% to touch ₹13.25 in early deals. However, the sentiment shifted quickly, pushing the price up to ₹13.47 before closing slightly lower at ₹13.42 per share.

Investors are now keeping a sharp eye on Zee Media after the recent wave of promoter acquisitions, hinting at a possible strategic move to reinforce their ownership stake.

AUV Innovations Adds 1.11 Crore Shares to Portfolio

According to recent stock exchange disclosures, AUV Innovations LLP—an entity linked to Zee Media’s promoter faction—has significantly increased its ownership in the company. The firm purchased approximately 1.11 crore shares in open market transactions at an average price of ₹13.6 per share. The overall transaction value is estimated to be around ₹15.04 crore.

This recent transaction builds upon a series of earlier purchases made by AUV Innovations LLP during May 2025. Back then, the promoter entity acquired 2.40 lakh shares on May 16, followed by another substantial acquisition of 29.60 lakh shares on May 19. Altogether, these purchases have taken the promoter group’s total acquisition to about 1.43 crore shares in just over a month.

Such continued buying activity from the promoters is often perceived as a positive signal by market watchers, indicating sustained interest in the company’s long-term prospects, even amid its current operational and financial challenges.

Financial Woes Evident in Q4 FY25 Results

Despite the positive development on the shareholding front, Zee Media’s recent financial performance paints a challenging picture. The company announced its financial results for the January–March 2025 quarter earlier in May, revealing a significant deterioration in earnings.

During the January–March quarter of FY 2024–25, the media giant recorded a sharp surge in its net loss, soaring 464% year-over-year to reach ₹36.76 crore. This was a sharp contrast to the ₹6.51 crore net loss recorded during the same period in the previous fiscal year.

The financial stress was also reflected in Zee Media’s declining operational revenue. The company posted consolidated revenue of ₹155.80 crore for the January–March period, representing a 13% drop from ₹178.98 crore in the corresponding quarter of FY 2023–24. This downward trend in revenue indicates a tough business environment, marked by reduced advertising income and broader challenges in the media sector.

Rising Expenses Exert Further Pressure

Intensifying Zee Media’s financial strain, overall expenditures for the fourth quarter climbed 6.39% annually, rising to ₹200.21 crore compared to ₹188.17 crore a year earlier. This mismatch between falling revenue and rising costs has significantly eroded profitability, leaving the company in a difficult financial position.

For the full financial year ending March 2025, the group reported an accumulated loss of ₹119.42 crore, underscoring the severity of its financial predicament. Additionally, the company acknowledged a negative working capital situation as of March-end, which further highlights its liquidity strain.

Strategy to Navigate Financial Challenges

In its official communication to the stock exchanges, Zee Media confirmed that proactive measures are underway to stabilize operations and address the financial challenges. Among these efforts are cost-reduction initiatives and negotiations with creditors to extend credit periods, providing breathing room for meeting ongoing contractual obligations.

The management has expressed its commitment to steering the company through this turbulent phase, emphasizing restructuring efforts aimed at improving operational efficiency and financial health over the medium to long term.

Investor Sentiment Hinges on Recovery Prospects

The promoter’s increasing stake comes at a time when investors are split between optimism over management’s confidence and concern over the company’s financial stability. While promoter buying often reflects faith in a company’s recovery prospects, Zee Media’s weak financial results have tempered enthusiasm.

Market experts believe that Zee Media’s near-term stock performance will heavily depend on the effectiveness of its cost-cutting measures, successful monetization of its media assets, and an eventual turnaround in advertising revenues — typically a key revenue driver for media companies.

For retail investors and market participants, the coming quarters will be critical in assessing whether the company’s financial rehabilitation plan gains traction and translates into shareholder value creation.

Final Thoughts

Zee Media Corporation finds itself at a crucial juncture, with its promoter group’s consistent share purchases hinting at a long-term commitment to the company’s future. While the sizeable acquisition of over 1.11 crore shares by AUV Innovations LLP is seen as a confidence booster, the company’s worsening financial performance remains a significant hurdle.

The steep rise in quarterly losses, coupled with shrinking revenues and growing expenses, paints a cautious picture for investors. However, with cost optimization efforts underway and promoter backing in place, Zee Media is clearly striving for a turnaround.

Whether these strategies will be enough to restore investor faith and financial stability remains to be seen. For now, Zee Media continues to stay under the spotlight as stakeholders closely watch its next moves in navigating these testing times.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Reliance Infra Soars on Jet Manufacturing Pact With Dassault Aviation

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Business, Equities, Market News - June 23, 2025

Reliance Infra Soars on Jet Manufacturing Pact With Dassault Aviation

Reliance Infra Soars on Jet Manufacturing Pact With Dassault Aviation

Reliance Infra’s shares surge as it joins hands with Dassault Aviation to build Falcon 2000 jets in Nagpur, marking a major boost to India’s aerospace sector.

Stock Soars on Major Aerospace Deal

On Wednesday, Reliance Infrastructure’s share price climbed 5%, locking in at its upper circuit limit of ₹386 on the BSE trading platform. The rally was triggered by news of a landmark partnership between a Reliance subsidiary and French aerospace heavyweight Dassault Aviation, signaling a strategic leap for India’s defence and aviation ecosystem.

India Set to Host First-Ever Assembly Line for Falcon 2000 Business Jets

In a first-of-its-kind move, Reliance Aerostructure Limited has entered into a joint venture with Dassault Aviation to assemble Falcon 2000 business jets in India. This marks the first time Dassault will produce these jets outside its home country of France.

The assembly line will be established in Nagpur and operated through Dassault Reliance Aerospace Limited (DRAL). India’s inaugural fully assembled Falcon 2000 jet is slated for launch by 2028, aiming to serve both corporate aviation needs and defense applications.

This initiative represents a significant milestone for India’s ambitions to become a global hub in aerospace manufacturing and aligns with the country’s “Make in India” vision.

Nagpur to Become a Global Hub for Jet Components

The upcoming production facility in Nagpur is projected to emerge as a center of excellence for the Falcon jet series. The scope of work extends beyond simple assembly—it includes the local manufacturing of critical aircraft components such as fuselages, wings, and other structural elements.

In addition to the Falcon 2000, the facility will also be involved in structural work for other Dassault jets, including the Falcon 6X and Falcon 8X models. Dassault Aviation will oversee significant infrastructure enhancements at the site to support this expanded production capability.

This strategic location not only accelerates India’s participation in the global aerospace supply chain but also boosts regional industrial development.

Employment Boost and Local Skill Development

Established in 2017, DRAL has successfully manufactured and supplied over 100 subcomponents for the Falcon 2000 aircraft series to date. The new agreement is expected to create long-term job opportunities, especially for skilled engineers, technicians, and support staff over the next decade.

This initiative is likely to stimulate technical upskilling in the region and foster innovation through exposure to world-class aerospace manufacturing standards.

The long-term employment potential of this project reinforces its value not only to the private sector but also to broader socio-economic development goals.

Capital Infusion to Support Strategic Expansion

Alongside this landmark partnership, Reliance Infrastructure has also successfully completed a significant financial move. The company allotted 1.25 crore equity shares at ₹240 per share, converting existing warrants into stock and raising a total of ₹300 crore.

The proceeds from this capital infusion will be channeled towards advancing the company’s long-term strategic goals, including strengthening its presence in high-growth industries like aerospace, infrastructure, and defence manufacturing.

This funding also bolsters the company’s ability to support future expansions and meet the demands of large-scale, technologically intensive projects.

Final Thoughts

The joint venture between Reliance Aerostructure and Dassault Aviation is a transformative step for India’s aerospace ambitions. By bringing Falcon 2000 jet assembly to Nagpur, the partnership is set to elevate India’s manufacturing capabilities on a global stage.

With the facility set to handle key structural components and potentially evolve into a center of excellence, this collaboration stands to enhance local employment, drive skill development, and attract further investment in the sector.

This initiative also resonates with India’s overarching goal of achieving technological self-sufficiency and strengthening its footprint in the international aerospace arena. For Reliance Infrastructure, this milestone—combined with a fresh ₹300 crore equity infusion—positions the company for sustained growth in defence and aerospace ventures.
Investors and industry observers alike will be watching closely as this high-profile collaboration unfolds in the coming years.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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US Airstrike on Iran: Oil Shock for India

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US Airstrike on Iran: Oil Shock for India
Economy, Market News - June 23, 2025

US Airstrike on Iran: Oil Shock for India

US Airstrike on Iran: Oil Shock for India

As geopolitical tensions escalate in the Middle East, India braces for potential fallout on inflation, trade deficits, and foreign capital movement—though experts caution the damage could remain contained if the crisis doesn’t widen.

Summary:
The recent US military strike on Iran has sent tremors through global markets, rekindling fears of a spike in crude oil prices and capital flow volatility—particularly for oil-importing nations like India. While economists warn of risks to India’s current account deficit, inflation, and trade balance, many believe the actual impact will be manageable unless the conflict spreads further. With India’s dependence on Middle Eastern oil and reliance on stable foreign capital inflows, the evolving geopolitical landscape could test the country’s economic resilience.

Tensions in the Gulf Threaten Fragile Economic Stability
In a move that could reshape geopolitical and economic equations in the region, the United States has carried out targeted airstrikes on Iranian military infrastructure, raising the spectre of a broader regional conflict. While the immediate military implications are being assessed globally, the economic ramifications—particularly for India—are already beginning to materialize.
Crude oil prices surged by over 6% overnight, breaching the $90 per barrel mark, as markets priced in the possibility of retaliatory action from Iran, disruptions in the Strait of Hormuz, and general instability in one of the world’s most vital energy corridors.
India, as the third-largest importer of crude oil globally, is especially vulnerable to this type of external shock. Over 85% of the country’s oil needs are met through imports, with a significant portion coming from the Middle East. Any sustained rise in crude prices can upend India’s current account balance, inflation outlook, and fiscal deficit, posing significant challenges for policymakers.

Current Account Deficit Likely to Widen
India’s current account deficit (CAD) has been a point of concern in recent months, standing at 1.2% of GDP in FY24. A sudden spike in oil prices can add billions of dollars to the import bill, potentially pushing the CAD toward 2% or more, depending on how long prices stay elevated.
According to Nomura India, a $10 increase in crude oil prices for a sustained period could widen the CAD by 0.3% of GDP, translating to approximately $10–12 billion in additional import costs.
This deterioration in external balances could pressure the rupee, which has already been showing signs of depreciation, and make it more expensive for Indian corporates to service foreign currency debt.

Inflation and Fiscal Challenges Ahead
The impact on inflation is another major worry. While India’s inflation had been stabilizing after a turbulent 2023, elevated energy prices can lead to a pass-through effect on transportation, logistics, and food prices—especially vegetables and pulses, which are highly sensitive to fuel costs.
A prolonged spike in Brent crude could push headline CPI inflation beyond the 4.5% RBI target, potentially forcing the central bank to delay any interest rate cuts planned for the second half of 2025.
On the fiscal front, higher oil prices may compel the government to increase subsidies on LPG and diesel or cut excise duties—leading to a revenue shortfall at a time when the Centre is trying to balance fiscal prudence with growth stimulus ahead of state elections.

Capital Flow Volatility and Market Risks
In times of geopolitical stress, emerging markets often see capital outflows as global investors shift to safe-haven assets like the US dollar, gold, and US Treasuries. India’s foreign institutional investor (FII) flows have been robust so far in 2025, but that could reverse if risk aversion spikes.
Already, the benchmark BSE Sensex dropped 600 points, and the INR slipped to 83.80 per USD in early trade following news of the strike. If the conflict escalates further, market volatility may persist, impacting portfolio investments, bond yields, and currency stability.

Strategic Oil Reserves and Policy Measures in Place
India, however, is not entirely defenceless. The country maintains Strategic Petroleum Reserves (SPRs) equivalent to around 9.5 days of consumption, which can be deployed during emergencies to buffer against sudden supply disruptions.
Additionally, the Reserve Bank of India (RBI) holds forex reserves of over $640 billion, providing a firm cushion against external shocks and currency volatility. The government may also resort to calibrated excise cuts, oil bonds, and revised subsidies to soften the impact on the common man.

What Happens If the Conflict Escalates?
Economists caution that while the current situation is concerning, it remains manageable unless the conflict spreads to involve other Gulf countries or leads to an actual blockade of oil flows through the Strait of Hormuz, through which nearly 20% of the global oil supply passes.
Any Iranian retaliation targeting oil infrastructure in Saudi Arabia, UAE, or Iraq could send crude prices well past $100 per barrel, severely disrupting global and Indian economic forecasts.
“The longer the conflict drags on, the higher the risks to India’s macroeconomic stability,” said Sonal Verma, Chief Economist at Nomura India. “The silver lining is that India has buffers and past experience managing oil shocks—but policymakers will need to be agile.”

Geopolitics Meets Economics: A Test for India’s Resilience
In a globalized world, India’s economy is inextricably linked to geopolitical developments. The US strike on Iran has reignited concerns about energy security, foreign capital dependence, and inflation management. While India has improved its economic fundamentals over the past decade, external shocks like these highlight persistent vulnerabilities.
With the Union Budget 2025 and potential rate decisions by the RBI on the horizon, economic planning will have to incorporate these new geopolitical risks. Flexibility in fiscal policy, proactive diplomacy, and a focus on energy diversification will be critical in the months ahead.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Mutual Funds Now One-Third of Bank Deposits!

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Banking, Markets - June 23, 2025

Mutual Funds Now One-Third of Bank Deposits!

Mutual Funds Now One-Third of Bank Deposits!

The Indian mutual fund industry has amassed ₹72.2 trillion in assets under management (AUM), nearly one-third of total bank deposits, reflecting a notable shift in investor preferences and financial dynamics.

Summary:
India’s mutual fund industry has reached a new milestone, with assets under management (AUM) surging to ₹72.2 trillion as of May 2025—nearly one-third of the country’s total bank deposits, which stand at ₹232 trillion. This rapid growth highlights the evolving savings patterns of Indian households, driven by higher financial literacy, favorable market conditions, and a growing appetite for market-linked instruments over traditional savings products. Experts believe this trend signals a structural shift in the Indian economy, with far-reaching implications for capital markets, retail investors, and the banking sector.

India’s Mutual Fund Boom: A New Milestone
In a notable development that underscores the transformation of India’s financial landscape, the mutual fund industry achieved remarkable assets under management (AUM) of ₹72.2 trillion in May 2025, according to the latest data from the Association of Mutual Funds in India (AMFI). This marks the industry’s highest-ever AUM and now represents nearly one-third of the total bank deposits, which stood at ₹232 trillion during the same period.
This development signals a fundamental shift in the savings and investment patterns of Indian households, which have historically favored low-risk bank deposits and physical assets such as gold and real estate.

Retail Participation and SIP Culture Drive Growth
One of the most defining features of this growth is the exponential rise in retail participation. Systematic Investment Plans (SIPs) have emerged as the cornerstone of mutual fund inflows, with over ₹20,000 crore being invested monthly through SIPs. As of May 2025, the total SIP AUM crossed ₹10 trillion for the first time, driven by long-term retail investors consistently allocating small sums into equity and hybrid funds.
The number of mutual fund folios has also soared to over 18 crore, with most new investors coming from Tier-II and Tier-III cities, reflecting the success of digital outreach, fintech platforms, and investor education campaigns.

Why Are Investors Moving Away from Bank Deposits?
There are several reasons behind the migration of household savings from bank deposits to mutual funds:
Low interest rates on bank FDs: Traditional fixed deposits have offered real returns barely above inflation, especially after tax, making them unattractive for long-term wealth creation.
Higher returns from equity mutual funds: Over the past decade, equity mutual funds have delivered annualized returns of 10–14%, outperforming most fixed-income products.
Ease of investment through digital platforms: Fintech apps and mutual fund aggregators have simplified onboarding, KYC, and portfolio management, encouraging even novice investors to try mutual funds.
Tax efficiency: Mutual funds enjoy favorable tax treatment compared to bank FDs, particularly under capital gains rules.

Rise of Passive Funds and Debt Schemes
While equity funds continue to dominate headlines, there has been a parallel boom in passive investing and debt schemes. The Exchange Traded Fund (ETF) and index fund category now commands over ₹6 trillion in AUM, backed by government disinvestment programs, EPFO allocations, and rising retail interest.
Additionally, short-duration debt funds, liquid funds, and target maturity funds have attracted high-net-worth individuals (HNIs) and corporate treasuries seeking tax-efficient and flexible alternatives to fixed deposits.

The Institutional Push: Insurance, Pension, and EPFO
There has also been a rise in institutional involvement in mutual funds, especially from:
Life insurance companies allocating funds into debt and hybrid schemes.
Pension funds, including NPS and EPFO, increasing exposure to equity ETFs.
Corporate treasuries, deploying surplus funds into liquid and ultra-short duration funds for better yield management.
This institutional influx has added stability to inflows and diversified the investor base beyond retail.

Implications for Banks and Financial Markets
The surge in mutual fund AUM vis-à-vis bank deposits raises important macroeconomic and financial sector implications:
Liquidity Competition: Banks may face competition for household savings, especially if they fail to offer attractive deposit rates or innovative products.
Capital Market Deepening: A larger mutual fund industry facilitates long-term capital formation, enhances liquidity in equity and debt markets, and supports government borrowing programs.
Asset Diversification: Indian households are gradually becoming more diversified in their asset allocation, which reduces overall systemic risk and enhances financial resilience.
Policy Influence: With trillions of rupees under management, mutual funds are becoming a more influential voice in corporate governance, ESG adoption, and shareholder activism.

Risks to Watch: Market Volatility and Mis-selling
While the mutual fund industry is on a positive path, it also encounters significant challenges.
Market dependency: Since returns are market-linked, sharp corrections in equity or bond markets could cause panic redemptions, especially among first-time investors.
Regulatory scrutiny: SEBI has tightened disclosure norms to ensure transparency, but mis-selling and improper risk disclosures remain areas of concern.
Overvaluation risks: As retail money chases momentum stocks, fund managers face difficulty finding value picks without increasing portfolio risk.
Industry leaders are advocating for more investor education, robust risk assessment tools, and long-term investment orientation to sustain the industry’s credibility and resilience.

What Lies Ahead?
If current trends hold, experts project mutual fund AUM to cross ₹100 trillion by FY2027, possibly equaling half of India’s bank deposits. The lines between traditional banking and investment-led savings are increasingly blurring, giving rise to a more mature, digitally-enabled, and risk-aware financial ecosystem.
The real winner of this transformation is the Indian retail investor, who is now empowered with access to professionally managed portfolios, real-time transparency, and the potential for long-term wealth creation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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VA Tech Wabag Projects Strong 15-20% Revenue growth

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VA Tech Wabag Projects Strong 15-20% Revenue growth
Equities, Market News - June 23, 2025

VA Tech Wabag Projects Strong 15-20% Revenue growth

VA Tech Wabag Projects Strong 15-20% Revenue growth

Company foresees robust expansion fueled by global contracts and operational efficiency.

Ambitious Revenue Growth Target

VA Tech Wabag aims to achieve an annual revenue increase between 15% and 20% over the next three to five years. The company’s Chief Financial Officer, Skandaprasad Seetharaman, highlighted that this target stems from a strategic pivot toward securing larger, more complex projects, particularly in international and industrial markets.

Healthy Order Book Fuels Confidence

Currently, VA Tech Wabag holds an order backlog of about ₹11,400 crore, providing a clear revenue runway for the coming years. The company is targeting to expand this order pipeline to nearly ₹16,000 crore by the end of the fiscal year. Significant recent wins include a ₹3,251 crore wastewater treatment contract in Riyadh, which has pushed the order book close to ₹14,200 crore.

Expanding International Footprint

The company is aggressively focusing on global markets like the Middle East, Africa, Southeast Asia, and the Commonwealth of Independent States (CIS), where there is better access to funding and larger contracts. At present, international operations contribute roughly 38–40% of VA Tech Wabag’s total revenues, with plans to increase this share in the coming years.

Maintaining Strong Profit Margins and Cash Flows

VA Tech Wabag intends to keep its EBITDA margins within a range of 13% to 15%. The company is also enhancing its portfolio of higher-margin services, especially operations and maintenance (O\&M), which currently make up about 17% of revenue and are expected to grow to 20%.

Financially, VA Tech Wabag has shown solid free cash flow generation, estimated between ₹300 crore and ₹350 crore for FY25, while maintaining a positive net cash balance fluctuating between ₹236 crore and ₹700 crore throughout the year.

Strategic Move Toward Asset-Light Business Model

In a bid to improve operational efficiency and reduce capital intensity, VA Tech Wabag is transitioning away from traditional construction-heavy EPC (engineering, procurement, and construction) projects toward asset-light engineering and procurement (EP) contracts. Currently, EP contracts constitute roughly one-third of total EPC revenue, supporting better margins and lowering working capital needs.

Positive Analyst Outlook

Sharekhan and Axis Securities have recommended the stock as a ‘Buy,’ citing strong margin performance, steady order inflows, and expanding global presence. YES Securities forecasts an 18–19% revenue CAGR for FY26 and FY27, expecting EBITDA margins to move towards the higher end of the company’s guided range.

Potential Risks to Monitor

Despite the encouraging outlook, challenges such as rising steel and raw material prices, possible delays in executing international projects, and fluctuations in working capital could impact near-term performance. However, the company’s solid order backlog and move towards an asset-light model provide a buffer against these risks.

Conclusion

With a robust order book, growing international business, and a strategic focus on profitable contract segments, VA Tech Wabag is well-positioned for sustained double-digit growth over the next several years. Strong cash flow and healthy margins further support this growth trajectory, although market dynamics and execution efficiency remain key factors to watch.

Summary:
VA Tech Wabag targets 15–20% annual revenue growth over the next 3–5 years, driven by a strong ₹14,200 crore order book and expanding international markets. The firm is shifting toward asset-light contracts and boosting higher-margin O&M services to improve profitability. While inflation and project delays remain risks, VA Tech Wabag’s financial health and strategic direction inspire analyst confidence.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Sambhv Launches IPO, Sets ₹2,400 Crore Valuation

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Economy, IPO research, Market News - June 23, 2025

Sambhv Launches IPO, Sets ₹2,400 Crore Valuation

Sambhv Launches IPO, Sets ₹2,400 Crore Valuation

IPO Overview: Price Band and Fundraising Target

Sambhv Steel Tubes, a leading Indian manufacturer of electric resistance welded (ERW) pipes, has opened its initial public offering (IPO) with a price range between ₹77 and ₹83 per equity share. At the higher end of the band, the company’s post-issue valuation reaches around ₹2,400 crore.

The IPO aims to raise up to ₹540 crore, which includes a fresh share issue worth ₹440 crore and an offer-for-sale (OFS) component of ₹100 crore, where existing promoters and shareholders will divest part of their stakes.

Purpose of the Issue: Strengthening Finances and Operations

The majority of the funds raised through the fresh issue—around ₹390 crore—will be used to repay outstanding borrowings. This move is intended to ease the company’s debt burden and improve financial stability.

The remaining proceeds will support general business activities, such as improving working capital, pursuing expansion opportunities, and upgrading operational efficiency across its existing value chain.

Company Profile: Vertically Integrated Manufacturing Advantage

It operates a backward-integrated production facility in Raipur, Chhattisgarh, allowing it to control the full production lifecycle—from sponge iron to hot-rolled coils to finished pipes.

This integration gives Sambhv a competitive edge by reducing dependence on external suppliers and ensuring better cost control and product quality throughout its manufacturing operations.

Distribution Network and Market Presence

As of the end of FY24, Sambhv had an annual production capacity of approximately 600,000 tonnes. The company services customers through 33 distributors spread across 15 Indian states and one union territory, backed by a retail network of over 600 dealers.

Its product range caters to multiple sectors, including infrastructure, telecom, oil and gas, automotive, agriculture, firefighting, and solar—positioning it as a well-diversified steel tube supplier.

Promoters and Shareholding Details

Founded in 2017 under the name Sambhv Sponge Power, the company rebranded in 2024 to better align with its core business in steel pipes.

The promoter group includes members of the Goyal family—namely Brijlal, Suresh Kumar, Vikas, Sheetal, Shashank, and Rohit Goyal—who will collectively divest ₹100 crore worth of shares through the OFS component of the IPO.

Financial Highlights: Consistent Revenue and Profit Growth

Sambhv reported strong financial results in FY24, with revenue rising to ₹1,286 crore, up from ₹937 crore in FY23—representing a growth of 37%.

This performance reflects the company’s increasing operational efficiency and growing demand for domestically manufactured ERW pipes.

According to CRISIL, the Indian market for steel pipes and tubes is expected to grow at a compound annual growth rate (CAGR) of 8–9%

IPO Allocation and Structure

The IPO will follow a book-building process. 50% of the shares are reserved for Qualified Institutional Buyers (QIBs), 15% for High Net-Worth Individuals (HNIs), and the remaining 35% for retail individual investors.

This allocation model is designed to ensure balanced participation from large institutions and retail investors alike, potentially increasing the stability and attractiveness of the IPO.

Use of Proceeds:

A major portion of the capital raised will go toward repaying loans, which is expected to reduce interest burdens and enhance the company’s credit profile.

The remaining funds will be used for operational improvements and scaling business operations to meet rising demand across sectors. This includes investments in working capital and modernization of production facilities.

Investment Perspective: Opportunities and Risks

Its backward-integrated operations and expanding market presence make it a strong contender in the ERW pipe space.

However, prospective investors should be aware of potential challenges such as fluctuations in global steel prices, supply chain constraints, and risks tied to aggressive capacity expansion. Managing these effectively will be key to sustaining margins and returns.

Conclusion: A Strong Step Toward Public Growth

Sambhv Steel Tubes’ IPO is a strategic move to capitalize on its growth trajectory, improve its balance sheet, and strengthen market positioning. With a valuation of ₹2,400 crore and a well-structured offering, the company aims to build investor confidence while driving its long-term expansion in India’s infrastructure-driven economy.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Apple Needs Bold M&A for AI Competitiveness

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