Finnovate Weekly Capsule (Aug 11–Aug 15, 2025)

Here’s your weekly dose of what happened in the world of money and markets. From inflation trends and mutual fund activity to global bankruptcies and IPO announcements - let’s decode what each means for your wallet.

1. India CPI inflation dips to 1.55% for July; WPI inflation dips to -0.58%

Impact Analysis

• The fall in CPI inflation was triggered by food inflation falling to -1.76%, even as core inflation also fell by 30 bps to 4.1%
• With CPI and WPI inflation lower for 7 months in a row, there is a strong case for the RBI to again cut rates in October 2025

2. India gets a rating boost; S&P upgrades India sovereign rating to BBB (stable)

Impact Analysis

• In a sense, this is justified considering India’s macros, real GDP growth and the size of the economy as the fourth largest
• S&P cited fiscal prudence, external strength, and low inflation as the key reasons; and this will reduce cost of funds for India

3. July 2025 trade deficit widens sharply to $27.35 billion as imports surge

Impact Analysis

• The surge in merchandise imports was led by crude oil, silver, and fertilizers, as supply chain constraints added up
• Overall deficit for July 2025 widened to $11.72 billion and for FY26 $31.28 billion; but still poised for CAD under 1% of GDP

4. Active equity funds and active debt funds saw revival in flows in July 2025

Impact Analysis

• Active debt flows at ₹1,06,801 crore was largely triggered by demand from the short end like liquid and overnight funds
• Equity fund flows touched a record ₹42,702 crore, as demand turned risk-on for sectoral, mid-cap, and small cap funds

5. NFO flows and SIP flows flatter on the upside in the month of July 2025

Impact Analysis

• NFO flows of ₹30,416 crore were largely triggered by demand for liquid funds, money market funds, and sectoral funds
• SIP flows at ₹28,464 crore was at an all-time high as SIP stoppage fell to 62.7%, and contributing SIPs rose to 96.4%

6. US consumer inflation for July 2025 came in flat at 2.7%, as per US-BLS

Impact Analysis

• While food inflation and energy inflation for July came in lower, the spike of 20 bps was seen in core inflation
• After the dissent vote in the 31-July Fed meet, CME Fedwatch is betting big on rate cut, subject to September Inflation

7. A total of 71 large US companies went bankrupt in July, highest since COVID

Impact Analysis

• The reasons assigned to this spike in bankruptcies are high interest rates, supply constraints, and tariff uncertainty
• In fact, since the start of 2025, a total of 446 US companies went bankrupt, the highest level in the last 15 years

8. CAG flags major mismatch between the e-way bills data and GST payments

Impact Analysis

• CAG has asked the authorities to focus on entities with high value of EWBs, but not paying GST or paying low GST
• This can be attributed due to suppression of income, dual invoicing, and generating EWB on cancelled registrations

9. Government of India may raise up to ₹17,000 crore by selling 3% in LIC

Impact Analysis

• The government currently holds 96.5% stake in LIC, and needs to raise public shareholding to 10% as per the SEBI mandate
• This will also go a long way in meeting the disinvestment targets of the government, which is conservative in FY26

10. US Treasury Secretary, Scott Bessent, has called for 150–175 bps rate cut

Impact Analysis

• Bessent hinted at a mega 50 bps rate cut in September, especially after the unemployment jumped in July 2025
• In the July FOMC meet, 2 members (Chris Waller and Michelle Bowman) had dissented, calling for a 25 bps rate cut

11. US indices, S&P 500 and NASDAQ have touched life-time highs in August

Impact Analysis

• This is largely on the back of expectations that the Fed will cut interest rates in the September FOMC meet to boost growth
• The CME Fedwatch is assigning a 99% probability to 25 bps rate cut in September; and up to 75 bps by December 2025

12. Tata Sons sets off a major rejig, with the induction of Noel Tata on the board

Impact Analysis

• In addition, Venu Srinivasan, Saurabh Agarwal of Tata Sons, and Anita George of Prosperete Growth Fund also come in
• One of the big challenges is to monetize some of its stakes in group companies in order to use the war-chest for expansion

13. Indian downstream oil companies to continue buying crude oil from Russia

Impact Analysis

• BPCL has already confirmed that for FY26, Russian crude would continue to constitute 35% of its oil buying basket
• The low prices of crude have allowed the OMCs to report a record surge in profits this quarter, on high marketing margins

14. Indian Hotels to acquire 51% stake in ANK & Pride for ₹204 crore

Impact Analysis

• This will add the Clarks brand to IHCL, and as a result, the IHCL portfolio will expand by another 135 properties across India
• This gives an inorganic boost to IHCL’s plans to expand its hotel portfolio from the current 400 to 700 by year 2030

15. L&T has just bagged a massive ₹15,000 crore order from Adani Power

Impact Analysis

• This order entails setting up a total of 8 thermal power plants for Adani Power, with combined capacity of 6,400 MW
• The scope includes design, engineering, manufacturing, supply, commissioning; and associated systems set-up

16. SEBI turns down Anil Ambani’s request to settle the Yes Bank loan case

Impact Analysis

• The case exposes Anil Ambani to a penalty of ₹1,800 crore and refers to the ₹2,150 crore invested in Yes Bank Tier-1 bonds
• The investment was a quid pro quo for a loan given by Yes Bank to the Anil Ambani group, causing huge investor losses

17. InCred plans to file the DRHP for its proposed IPO worth ₹5,500 crore

Impact Analysis

• The IPO is likely to value InCred at nearly ₹25,000 crore, and is backed by KKR as well as the Kamath brothers of Zerodha
• InCred has a ₹10,000 crore loan book and had reported PAT of ₹316 crore for FY25, offering tech based lending solutions

18. JSW Cement IPO gets a modest listing and closes marginally below issue price

Impact Analysis

• Despite a premium listing, the 7.77 times subscription ensured that the selling pressure built up on the stock post listing
• Many brokers had pointed that the pricing of the IPO was relatively aggressive, considering its 36.7 times EV / EBITDA

19. India’s first AI IPO, Fractal Analytics, files DRHP for ₹4,900 crore public issue

Impact Analysis

• Fractal Analytics is backed by TPG and Apax and had reported full year revenues of ₹2,765 crore for financial year FY25
• The IPO will comprise of a fresh issue of ₹1,279 crore and an offer for sale (OFS) of ₹3,621 crore, by early investors

20. Net direct tax collections for FY26 till date, down -3.95% at ₹6.64 trillion

Impact Analysis

• There has been a general slowdown across all the 3 major direct tax categories viz; personal, corporate, and STT
• This shortfall does raise questions of whether the government can meet its revenue target and fiscal deficit target for FY26

21. Indian FMCG players feel the heat of competition from regional players

Impact Analysis

• Niche players like Jaya Biscuits, Gippi Noodles, and Zof Foods are giving big FMCG a run for their money with their tactics
• Smaller players are using aggressive pricing, multiple price points, higher distribution margins, and very local flavours

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Always consult a qualified financial advisor before making investment decisions.