Markets This Week: Geopolitics, Fed Rates, India-UK FTA, and Earnings Updates | Weekly Financial & Market Wrap (May 05 - May 09)

Get this week's top market insights from Finnovate — from Operation Sindoor's economic impact to Fed policy, India-UK trade updates, FMCG earnings, and Starlink’s SATCOM entry. Stay informed with our
May 10, 2025
A snapshot of weekly financial headlines and market trends from India and abroad – Finnovate Weekly Capsule, May 2025
Finnovate Weekly Capsule - May 5 to 9, 2025

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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