Finnovate Weekly Capsule (May 26 – May 30, 2025)

News Announcements & Impact Analysis

Here’s a roundup of the key financial and economic developments from the week along with their implications.

1. India GDP grows at 6.5% for FY25, with an impressive 7.4% in Q4FY25

• FY25 GDP growth was impacted by weak manufacturing due to reduced capex; offset by surge in agricultural growth.
• In the secondary sector, construction showed robustness in FY25, while services output was almost at par with FY24.

2. Full year fiscal deficit for FY25 came in marginally higher at 100.5% of target

• Absolute fiscal deficit saw a minor spillage, but better-than-expected nominal GDP kept it at 4.77% of GDP.
• The March spike in deficit was due to better-than-budgeted capex spending.

3. US Fed minutes warned of stagflation

• Despite pressure from Trump, Powell refused to cut rates, keeping options open.
• FOMC warned that new tariffs could be a disruptive surprise.

4. April IIP growth fell to 2.7%

• Drop mainly due to mining and electricity slowdown.
• March IIP revised up from 3.0% to 3.94%.
• April manufacturing IIP at 3.4%, possibly due for revision.

5. US GDP for Q1FY25 contracted by -0.2%

• Front-ended imports due to tariff risk pulled down GDP.
• Durable goods manufacturing was under pressure; services showed growth.

6. US PCE inflation for April 2025 dropped to 2.1%

• Inflation fell 50 bps since Feb due to lower crude prices.
• Core inflation down, food inflation up; net result driven by crude.

7. Fed may cut rates twice in 2025, once in 2026

• Despite low GDP and inflation, Fed keeps options open.
• Tariff decisions could change the outlook.

8. Net ECB flows jumped 5x to $18.7B in FY25

• NBFCs led the ECB inflow surge amid lower global rates.
• RBI norms made ECBs more attractive as bank funding tightened.

9. Government push needed to sustain FY25 GDP at 6.5%

• Late Q4 defence capex boosted Q4 GDP to 7.4%.
• Private sector still hesitant; government spending crucial.

10. Indigo to exit Turkish lease in 3 months

• DGCA flagged security concerns post Turkey’s support to Pakistan.
• Extension restricted to 3 months after 31-May.

11. Draft gold loan norms may exclude small borrowers

• RBI proposes tighter rules to prevent negative equity.
• Government wants exemption for loans under ₹2 lakhs.

12. Trump plans to double steel and aluminium tariffs to 50%

• Move aims to protect U.S. jobs and counter Nippon’s US Steel bid.

13. Hiranandani to invest ₹28,440 crore in UP semiconductor project

• Part of ₹69,000 crore investment plan announced in Mumbai.
• Finding tech partners still a challenge for chip manufacturing.

14. Sun Pharma acquires Checkpoint Therapeutics for $355M

• Checkpoint develops solid tumour cancer treatments like UNLOXCYT.
• Deal includes performance-based milestone payments.

15. Jio adds 2.64M users in April; leads again

• Jio market share rises to 40.76% as Airtel slows down.

16. India may waive 10% cap for Saudi Public Investment Fund (PIF)

• PIF holds $925B in AUM; invested in Jio & Reliance Retail.
• Waiver would allow larger stakes in Indian firms.

17. Angel AMC to focus on passive investing

• Will avoid alpha-chasing; prioritize low-cost, consistent returns.
• Follows model set by Zerodha AMC; BlackRock-Jio may follow.

18. GTRI: US runs trade surplus with India (when services included)

• Surplus ~$40B due to digital, education, finance, royalties & arms.

19. SC stays Bhushan Steel liquidation order

• Earlier cancellation of IBC process overturned after review by JSW and CoC.

20. CBDT extends ITR filing deadline to 15-Sep for FY25

• Changes in filing utility cited as reason for delay.
• Helps assessees collect Form 16 & 26AS comfortably.

21. Hero Fincorp IPO worth ₹3,668 crore approved by SEBI

• ₹2,100 crore fresh issue + ₹1,568 crore OFS.
• Proceeds to boost capital adequacy and lending capacity.