Finnovate Weekly Capsule (May 5–9, 2025)

This Week’s Headlines – Explained Simply

Here’s your quick and easy guide to what happened in the markets and economy last week – explained in everyday language so you can make sense of what really matters.

1. Operation Sindoor: India Strikes Back

India launched strikes on Pakistan in response to the Pahalgam incident.
Over 440 flights were canceled and 25+ airports were shut down near the northern and western borders.

2. Stock Markets React to Border Tension

Sensex and Nifty dropped sharply and volatility (VIX) spiked above 22.
Karachi Stock Exchange closed after plunging over 7% post news of strikes on Lahore.

3. US Holds Interest Rates Steady in May Policy

The Fed kept rates unchanged at 4.25%–4.50% despite pressure to lower them.
Trump wasn’t happy, pushing for faster cuts to fuel growth before elections.

4. Next US Rate Cut Possibly in July

Markets now expect the first rate cut around July 2025, instead of June.
Two cuts expected in 2025 and two more in 2026, says CME Fedwatch.

5. US-UK Trade Deal Signed

Focus areas: biotech and AI, not traditional sectors.
This deal is good news for high-end exports and Indian companies like Tata Motors.

6. Tata Motors Gains from Auto Trade Tariff Relief

Jaguar Land Rover can now send 1 lakh vehicles at just 10% tariff, helping revive US sales.

7. FMCG Sees 11% Growth – Small Brands Win

Mini-sized products and strong rural demand drove growth.
Personal care and food categories saw slower growth.

8. Asian Paints Reports 45% Drop in Profits

Demand weakened, especially in decorative paints.
Margins shrank while industrial paint business held up slightly better.

9. Smaller IT Firms Shine Thanks to Generative AI

Companies like Coforge, Persistent, and Hexaware outperformed the IT giants this time.

10. Britannia Profits Up Despite Challenges

Grew profits by 4% using better pricing and cost control strategies.

11. CRISIL Downgrades IndusInd Bank Long-Term Debt

Due to rising NPAs and issues in the derivatives book.
Short-term ratings remain unchanged.

12. L&T Posts Strong Q4 Profits

Net profit grew by 25% to ₹5,497 crore.
However, revenues slightly missed street estimates.

13. Warren Buffett Retires as CEO

He’ll stay on as chairman of Berkshire Hathaway.
The company still holds $348 billion in cash – sparking curiosity on future plans.

14. LG Plans New Plant in Andhra Pradesh

LG to invest $600 million in a third Indian plant after pausing IPO plans.

15. JSW Steel Fights SC Ruling in Bhushan Case

SC order to liquidate Bhushan Power & Steel has led to lenders filing a review plea.

16. Starlink Gets Indian Approval for SATCOM

Starlink will offer low-latency internet via satellites orbiting 550 km+ above Earth.

17. India-UK FTA Slashes Auto Tariffs

From 100% down to below 10% for a quota of autos and components exported to the UK.

18. Five AMCs Drive 58% of New Folios in FY25

Includes top players like HDFC, SBI, ICICI, Nippon India, and Motilal Oswal.

19. NSE IPO Stuck, Now Seeks Govt Help

NSE’s IPO delayed since 2016 due to SEBI issues. Ministry of Finance may step in.

20. Ather Energy Disappoints on Market Debut

Listed at ₹300 against an IPO price of ₹321. Not the electric start they hoped for.

21. Ola Transfers Brand to Family Office

The brand and IP now fall directly under Bhavish Aggarwal’s personal control.

Disclaimer: This newsletter is purely informational. Please do not take financial decisions based solely on this content. Always consult a trusted professional before acting.

Published At: May 10, 2025 12:16 pm

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