Finnovate Weekly Capsule (Dec 15–Dec 19, 2025)

Welcome to this week’s edition of Finnovate’s Weekly Capsule. Below are the key macro, market, policy and corporate developments from Dec 15–Dec 19, 2025, along with their impact analysis to help you interpret what these shifts mean for the economy and your investments.

1. November 2025 merchandise trade deficit narrows to $24.53 billion

Impact Analysis

• Imports were largely flat while exports surged sharply, despite continued tariff pressure from the US.
• Strong services surplus helped keep the overall current account deficit comfortable at just $6.6 billion for the month.

2. Indian rupee weakens further, crosses ₹91/$

Impact Analysis

• Rupee came under pressure from FPI selling, NDF market activity, delayed Indo–US trade deal and elevated hedging demand.
• Markets will closely track the level and intensity of RBI intervention to stabilise the currency.

3. FPIs sell $1.96 billion of Indian equities in H1-Dec 2025

Impact Analysis

• Selling was concentrated in BFSI, IT, Healthcare, FMCG, capital goods and telecom.
• Buying was sporadic and limited largely to oil & gas and metals & mining stocks.

4. WPI inflation for November hardens to -0.32%

Impact Analysis

• WPI rebound mirrors the uptick in CPI from 0.25% to 0.71% over the same period.
• Manufacturing WPI (64.2% weight) remains benign at 1.33%, offering relief to industrial margins.

5. Bank of Japan hikes rates by 25 bps to 0.75%

Impact Analysis

• This is the highest Japanese policy rate since 1995 under Governor Ueda.
• Markets fear a stronger yen could trigger unwinding of global carry trades, increasing volatility.

6. RBI MPC minutes flag concerns over rupee and imported inflation

Impact Analysis

• The MPC acknowledged that recent rate cuts weakened the rupee, a risk taken consciously to support growth.
• While the December cut saw consensus, future easing will likely be far more cautious.

7. Adani Airports plans ₹1 trillion investment by 2030 ahead of IPO

Impact Analysis

• Adani Airports operates Mumbai airport and the upcoming Navi Mumbai airport.
• The airports business may be demerged from Adani Enterprises before the planned IPO.

8. Finance Minister signals debt reduction focus from FY27

Impact Analysis

• Indicates that FY26 could see fiscal deficit and debt metrics stretch beyond targets.
• Government appears willing to prioritise growth amid global tariff pressures.

9. L Catterton India picks up stake in Haldiram

Impact Analysis

• L Catterton becomes the fourth institutional investor in Haldiram after Temasek’s $1+ billion investment.
• Temasek deal values Haldiram at $10 billion; Catterton brings strong consumer and brand-building expertise.

10. Jefferies initiates Buy on Groww with 26% upside

Impact Analysis

• Jefferies expects the next growth phase to come from lending and wealth management.
• Groww already holds over ₹1.10 trillion of customer MF assets, providing strong monetisation potential.

11. Meesho sees price correction after doubling from IPO levels

Impact Analysis

• UBS remains positive, calling Meesho a cash-generating platform with strong ad margins.
• Meesho’s Tier-2 focus and lower average price positioning differentiate it from peers.

12. Piramal Finance to sell ₹600 crore stake in Shriram Life to Sanlam

Impact Analysis

• Piramal Finance will monetise a non-core asset, selling a 38% stake to Sanlam.
• Post-transaction, Sanlam will be the second-largest shareholder after Shriram Finance.

13. Ather Energy plans entry into auto insurance via corporate agency

Impact Analysis

• Move aims to improve margins and offer bundled EV-specific insurance products.
• Customised insurance could become a key differentiator in the EV ecosystem.

14. Adani Group outlines plan for 1,600 MW nuclear plant in Uttar Pradesh

Impact Analysis

• Plant will comprise eight small modular reactors of 200 MW each.
• Rising power demand from AI and data centres strengthens the case for nuclear expansion.

15. MUFG invests ₹39,618 crore in Shriram Finance for 20% stake

Impact Analysis

• Investment via preferential issue will dilute equity but expand the capital base.
• Fresh capital will support loan book growth and balance sheet strength.

16. AMC stocks rally after SEBI raises cap on AMC charges

Impact Analysis

• Proposed brokerage cap revised upward from 2 bps to 6 bps.
• Relief for AMCs and distributors who had warned of research quality erosion.

17. Reliance Consumer acquires Udhaiyam Agro for ₹668 crore

Impact Analysis

• Acquisition strengthens Reliance’s South India food portfolio.
• Udhaiyam competes with TCPL, Orkla India and ID India in nutrition-focused foods.

18. Telecom tariffs likely to rise by ~20% in the new year

Impact Analysis

• Airtel, Jio and Vodafone Idea expected to raise tariffs across segments.
• Telcos aim to monetise customer base and recover heavy 5G investments.

19. US CPI inflation eases to 2.7%; core inflation falls to 2.6%

Impact Analysis

• Lower inflation coincides with a rise in US unemployment to 4.6% in Nov-25.
• Combination strengthens the case for additional Fed rate cuts in 2026.

20. ICICI Prudential AMC becomes India’s fourth most subscribed IPO

Impact Analysis

• Investor interest stood at ₹2.99 trillion, behind Reliance Power, Hyundai India and Bajaj Housing Finance.
• Strong demand reinforces investor appetite for AMC business models.

21. KSH International IPO closes at 87% subscription

Impact Analysis

• Retail portion subscribed 91%, HNI/NII at 44%, while QIB portion at 1.12X saved the issue.
• Lack of last-day HNI and QIB interest points to selective IPO participation.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or product recommendations. Please consult a registered advisor before making investment decisions.