Finnovate Weekly Capsule (May 12 – 17, 2025)

What Happened This Week?

Here’s a simple breakdown of the major economic and business events that took place during the week, and what they might mean for you and your money.

1. India’s Inflation Drops to a 69-Month Low

Consumer inflation (CPI) eased to 3.16% in April 2025, largely because food prices came down.
Vegetables are getting cheaper for the third month in a row – good news for your kitchen budget!

2. Wholesale Prices (WPI) Also Softened

WPI dropped to 0.85%, helped by a strong base effect and falling food prices.
Manufacturing costs dipped slightly too – a sign that goods might not get more expensive soon.

3. RBI Likely to Cut Rates Again in June

With inflation below 4%, the RBI might lower interest rates to support job growth and business activity.
This could mean lower EMIs if you’re planning a loan or have one running.

4. US Inflation Eases, But Rate Cuts May Wait

Consumer inflation in the US is down to 2.3%, though the Fed may not cut rates until September.

5. India’s Trade Deficit Widens in April

The gap between exports and imports hit $26.42 billion due to a jump in imports.
Services could only cover about two-thirds of this deficit.

6. Forex Reserves Rise to $691 Billion

Helped by rising gold prices, India’s foreign exchange stockpile grew.

7. Moody’s Downgrades US Debt Rating

The US is now rated AA1 instead of AAA due to rising debt and political gridlock.

8. Vodafone Idea Says It May Not Survive Beyond FY26

Despite big investments, the company is still in trouble and banks are hesitant to lend more.

9. US Plans 5% Tax on NRI Remittances

If approved, this could affect Indians sending money home from the US.

10. Shapoorji Pallonji Raises $3.4 Billion at 19.75%

The high interest rate shows how tough borrowing is, even for big companies.

11. Swiggy Shuts Down Genie, Uber Steps In

Uber Courier is now filling the gap left by Swiggy’s hyperlocal delivery shutdown.

12. Sugar Output Drops Due to Poor Rainfall and Crop Disease

Despite a 5-year low in production, there’s enough to meet domestic and ethanol demand.

13. Gold Prices Fall by 10%

Gold is now around ₹91,250 per 10 grams, down from the ₹1 lakh mark.

14. JSW Paints Buys Akzo Nobel’s Paints Business

The ₹12,000 crore deal makes JSW the fourth largest in India’s paints market.

15. Groww to Acquire Fisdom Before IPO

This boosts Groww’s position ahead of its public listing, expected to value it at $8 billion.

16. RBI Boosts Gold Holdings in Reserves

Now 12.5% of forex reserves are in gold, seen as a safer bet than foreign currencies.

17. Gold Loan Firms Worry Over New RBI Norms

New rules could limit how much people can borrow against gold, affecting their profits.

18. Coromandel & Nykaa Enter MSCI India Index

This could bring in foreign fund flows of over $450 million combined.

19. Reliance to Sell Stake in Asian Paints

Expected to gain ₹10,000 crore from a ₹500 crore investment made in 2008.

20. Promoter Holding Hits 7-Year Low

Experts see this as cashing in at higher levels, with plans to reinvest later.

21. US-China Trade Truce for 90 Days

Both nations have agreed to lower tariffs temporarily to control rising costs.

Disclaimer: This newsletter is for information purposes only. It is not financial advice. Always check with a trusted expert before making any financial decisions.

Published At: May 17, 2025 04:35 pm

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