Finnovate Weekly Capsule (Sept 01–Sept 05, 2025)

Welcome to this week’s capsule covering the biggest financial events and policy shifts. Whether it’s the GST rehaul, IPO buzz, rupee movements, or global commodity trends - here’s a simple breakdown of what happened and what it means for your financial planning.

1. Indian government undertakes total rehaul of the GST slab system

Impact Analysis

• Only 5% and 18% GST slabs are retained, while the 12% and 28% slabs are scrapped.
• Mass consumption and educational goods see rate cuts, while sin goods still taxed high.

2. Finance Minister confident of meeting 4.4% fiscal deficit target of GDP in FY26

Impact Analysis

• Despite ₹4.55 trillion added to fiscal deficit in June–July, target remains intact.
• Higher defence and growth spending, plus lower tax inflows, caused the spike.

3. GST on life and health insurance policies cut to Nil

Impact Analysis

• Applies only to individual policies, not group or corporate insurance plans.
• Insurers must pass on the GST benefits to policyholders via lower premiums.

4. NJ India Invest leads the tally of MF commission earners in FY25

Impact Analysis

• Earned ₹2,608 crore in commissions - more than SBI, HDFC, and ICICI.
• ₹21,000 crore in commissions paid to ~2,000 distributors in FY25.

5. Spot gold touches a new high of $3,578/oz

Impact Analysis

• Despite silver being more attractive, gold rose due to central bank buying.
• De-dollarization globally adds to safe-haven appeal of gold.

6. Indian rupee hits record low of ₹88.35/$

Impact Analysis

• Rupee weakens despite strong GDP and S&P rating upgrade.
• Penal tariffs and fiscal pressure triggered this decline.

7. India’s pivot to China works well at SCO summit

Impact Analysis

• China backs India and opens exports of critical minerals.
• India must manage growing trade deficit with China amid reduced US surplus.

8. Big IPOs like Urban Company, BOAT, and Tata Capital lined up

Impact Analysis

• IPO window reopens as tariff-related uncertainty clears.
• More retail and institutional interest expected.

9. Tata Sons may get exemption from converting into public company

Impact Analysis

• All stakeholder loans/deposits have been repaid.
• Awaiting RBI’s final decision; major implications for Tata Group control.

10. Global bond yields rise despite Fed rate cut hopes

Impact Analysis

• Markets expect 25 bps cut from Fed in Sept 2025.
• But poor bond demand is pushing yields up regardless.

11. Jane Street files case against SEBI in SAT

Impact Analysis

• SEBI has not yet disclosed details of alleged manipulations.
• Jane Street maintains it is only a high-speed algo trader.

12. Silver outshines gold in 2025 returns

Impact Analysis

• Gold up 35.4% YTD, silver up 41.0% - silver has better industrial use case.
• Industrial demand, not just safe-haven flows, fueling silver surge.

13. FirstCry benefits from GST cuts

Impact Analysis

• Stock recovers from 40% drop post-IPO, though still below listing price.
• Baby products exempted from GST, boosting sales.

14. Gross GST cut impact at ₹48,000 crore, net impact negligible

Impact Analysis

• Weighted average GST down to 9.5% from 14.4% (2017).
• After growth boost and subsidies, net impact is just ₹3,700 crore.

15. Apple India reports record $9 billion sales

Impact Analysis

• iPhone and MacBook sales drive revenue surge.
• New stores added in Bengaluru, Pune; Noida and Mumbai next.

16. Motilal Oswal upgrades Swiggy with 32% upside target

Impact Analysis

• Strong top-line recovery and better profitability outlook.
• Also upgraded target for Eternal by 29%.

17. FPIs net sellers of $3.99 billion in August 2025

Impact Analysis

• Sold IT and finance stocks; buying seen in selective sectors.
• Likely macro-level reshuffling of portfolios amid global uncertainties.

18. GST cut expected to ease CPI inflation

Impact Analysis

• Most essentials now cheaper - immediate inflation dip expected.
• Inflation could reduce by 50–90 bps before Q3 uptick.

19. Abakkus receives SEBI mutual fund license

Impact Analysis

• Founded by former Reliance MF CIO Sunil Singhania.
• Known for deep-research AIF strategy; likely to adopt same for MFs.

20. India confirms Russian oil purchases will continue

Impact Analysis

• Russia offers $4/bbl discount on Ural crude to India.
• Russia already supplies 35% of India’s crude imports.

21. Tata Capital doubles profit in Q1FY26 ahead of IPO

Impact Analysis

• IPO must close before Sep-25 to meet SEBI norms.
• Includes fresh issue + OFS with Tata Sons and IFC.

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.