The week in charts: Sensex cheer, tariff truce, satellite scheme
The end of the conflict between India and Pakistan and a trade deal between the US and China propelled the Indian stock markets to put up their best single-day performance in four years. Meanwhile, the government plans to expedite the implementation of its satellite surveillance programme in the aftermath of the Pahalgam terror attacks.
Sensex roars
India and Pakistan reached an understanding on 10 May to end the conflict after four days of cross-border military strikes following the terrorist attacks in Pahalgam. This development, along with the US-China trade deal of lower tariffs for 90 days, triggered the biggest rally in Indian equities on Monday in over four years. The Sensex climbed 3.7% to 82,429.90, marking its best gains since 1 February 2021. Markets have held on to the most of gains through the week, with the Sensex closing at 82,530.74 on Thursday.
Tariff truce
The US and China this week announced a 90-day tariff truce, bringing a temporary pause to a bruising trade war. Beginning 14 May, the US agreed to lower its tariffs on Chinese goods from 145% to 30% (10% baseline plus fentanyl-specific 20% levy), while China agreed to reduce its tariffs on US goods from 125% to 10%. Analysts are hopeful that the temporary reprieve could provide a window for further negotiations. The US runs the highest trade deficit with China despite a notable decline in recent years.
Satellite power
$3 billion: That is the amount allocated towards the Space-based Surveillance-3 (SBS-3) scheme, whose execution the government plans to expedite in the wake of the Pahalgam terrorist attacks. The Centre has directed three firms—Ananth Technologies, Centum Electronics, and Alpha Design Technologies—to shorten their satellite development timeline from four years to 12-18 months, targeting completion by the end of 2026 or earlier, Mint reported. A satellite by Ananth Technologies might even launch this year via ISRO's LVM3 or SpaceX. Under SBS-3, 52 surveillance satellites are being built.
Price pullback
India's retail inflation eased to a near six-year low of 3.2% in April, down from 3.3% in March. This marked the sixth consecutive monthly decline and third consecutive sub-4% print. However, core inflation, which excludes food, and fuel and light groups, remained above 4%, suggesting caution. Persistent price pressures were also evident in health and education costs, which continue to stay above 4%. Nevertheless, declining headline inflation has made it easier for the central bank to continue rate cuts in the coming months.
Regional divide
Car wholesales in eastern and southern states took a beating in 2024-25, while northern and western states continued to report growth, albeit at a slower pace. According to data released by the Society of Indian Automobile Manufacturers Association (SIAM), the eastern region recorded a 4.2% year-on-year decline in passenger vehicle wholesales in FY25 as opposed to a 4.2% growth in the previous year, Mint reported. Southern states recorded a 3.5% decline as opposed to 6.6%. On the other hand, western and northern states saw 4.4% and 6.6% growth, respectively.
Musical deal
$500-600 million: That is the potential value of the deal that involves Harman US selling a controlling stake in its Indian unit, Mint reported. Harman US, the maker of JBL, Harman Kardon and Infinity audio products, is a subsidiary of South Korea's Samsung. The company has approached global private equity and buyout firms for the deal and appointed Deutsche Bank to manage the process. Harman India operates across four segments—Lifestyle, Connected Car, Professional, and its India Development Centre, which serves as its software development hub.
Mid-tier surge
Mid-cap IT firms hired more employees in FY25, outpacing the big four—Tata Consultancy Services, Infosys, HCL Technologies, and Wipro, Mint reported. The top four added 9,442 employees, while their mid-tier rivals (with annual revenue of about $1-6 billion) collectively onboarded 25,794 employees. Among these, Coforge led with 8,771 new hires, surpassing TCS's hiring of 6,433. The top four are facing a slowdown due to their high exposure to the US and European markets for business, while the mid-sized firms are somewhat insulated from the external environment.
Chart of the week: Results out!
The Central Board of Secondary Education (CBSE) announced the Class X and XII board examination results on 13 May. The overall pass percentage was better among Class X at 93.7% versus 88.4% among Class XII students. Girls continued to outshine boys.
Follow our data stories on the'In Charts" and'Plain Facts" pages on the Mint website.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
24 minutes ago
- Hans India
Retail sector gaining momentum, growth expected to reach 9-10 pc soon: RAI
New Delhi: The Indian retail sector, currently valued at $900 billion, is showing signs of strong recovery and is expected to grow at a faster pace in the coming months, according to the Retailers' Association of India (RAI). The sector, which is currently growing at a rate of 5 per cent, is likely to soon pick up speed and reach a growth rate of 9 to 10 per cent. RAI's CEO Kumar Rajagopalan said that right after the pandemic, the retail sector had bounced back strongly with a 20 per cent growth rate. "However, in the last one year, the growth slowed down to around 5 per cent. Now, with the markets stabilising, consumers spending more, and the right consumer base in place, the sector is once again showing signs of faster growth," he added. Meanwhile, as per RAI's 62nd Retail Business Survey, retail sales across India grew by 7 per cent in May 2025 compared to the same month the previous year. This marks a significant improvement after months of moderate growth ranging between 4 to 5 per cent. Region-wise, southern India led the way with a 9 per cent growth in retail sales in May. Western India followed with 7 per cent, while northern and eastern regions recorded growth of 6 per cent and 4 per cent, respectively, as per the report. Among the different segments, quick service restaurants (QSR) showed the highest growth at 10 per cent. Consumer durables and electronics, along with furniture, also performed well with an 8 per cent rise each. Rajagopalan said this increase shows that people are now more willing to spend, especially on non-essential or discretionary items. Looking ahead, the RAI CEO expressed optimism about the upcoming festive season. He said that the improving consumer sentiment could further boost retail sales and bring the sector closer to double-digit growth in the near future.
Mint
29 minutes ago
- Mint
Running a family business with loans or gifts? Know the tax rules
I have two questions regarding laws around investments, business and loans applicable to an HUF: a) can money be lent to an HUF and the same money can be invested? Will income from such investment be taxed in the HUF's hands while the principal remains debt? b) Can an HUF start a business using gifts or loans? Will clubbing apply? Yes, a Hindu Undivided Family (HUF) can accept loans, and this is one of the most effective ways to introduce funds into the HUF without triggering adverse tax implications—provided the loan is genuine and properly documented. It should clearly state the repayment terms and, if applicable, the interest payable. If an HUF borrows money and invests those funds (for example, in shares, mutual funds, or fixed deposits), any income earned from such investments—such as interest, dividends, or capital gains—is taxable in the hands of the HUF. The original loan continues to be shown as a liability on the HUF's books. Moreover, if the borrowed funds are used in a business or to earn taxable income, the interest paid on the loan can be claimed as a deduction, as long as it meets the standard tax rules for expense eligibility. However, caution is advised when the loan is from members of the HUF. If the loans are frequent, large, interest-free, or never repaid, the Income Tax Department may recharacterize such funds as indirect gifts. This could result in clubbing of income—i.e., taxing the income from such funds in the hands of the lender member instead of the HUF. To second the second question: Yes, an HUF can own and operate a business. It is recognised as a separate legal entity under Indian law. However, it cannot engage in professions or services that depend on personal skills or qualifications—since it is not a natural person. For example, an HUF cannot be a lawyer or a doctor. When it comes to starting a business, the source of funds becomes crucial from a tax perspective: Gifts: If the business is funded through gifts from members or third parties, the ₹ 50,000 threshold under Section 56(2)(x) of the Income Tax Act applies. Since the HUF has no 'relatives' under the gift tax definition, even gifts from members may be taxable if the value exceeds ₹ 50,000 in a year. Loans: Loans from members or outsiders are permissible and preferable, as long as they are properly documented. Loans don't attract tax liability for the HUF as long as the transaction is genuine and repayable. Member's Personal Funds or Assets: If a member—including the Karta or any coparcener—contributes personal funds or assets to start or run the HUF business, clubbing provisions under Section 64(2) of the Income Tax Act come into play. This means that any income generated from such funds may be taxed in the hands of the member, not the HUF. This clubbing continues even if the funds are converted into another form or reinvested. Given these legal and tax implications, funding a business through properly structured loans is generally more tax-efficient and compliant than using gifts or personal contributions from members. Documentation and intention must be clear to avoid income being clubbed back to the contributor. CA Vijaykumar Puri, partner at VPRP & Co LLP, Chartered Accountants
India.com
30 minutes ago
- India.com
Mukesh Ambani, Gautam Adani join hands, set to reshape This Indian Sector, Reliance issues statement, says…
Mukesh Ambani and Gautam Adani (File) New Delhi: In a major development, two of India's richest businessmen, Reliance Industries Limited Chairman Mukesh Ambani and Chairman of the Adani Group Gautam Adani, have announced a partnership in country's fuel sector. The main motive behind the collaboration is to integrate their respective fuel station networks for wider access and improved consumer offerings. It is important to note that this is the second joint business initiative, following Reliance's acquisition of a stake in an Adani Power project in Madhya Pradesh last year. Partnership will 'redefine the auto fuel retail experience': Both Reliance and Adani Group have said that the will 'redefine the auto fuel retail experience for Indian consumers' and help scale the availability of high-quality fuels across the country. As part of the agreement, selected fuel stations operated by Adani Total Gas Ltd (ATGL) will begin selling Jio-bp's high-performance petrol and diesel. Meanwhile, CNG dispensing units from ATGL will be installed at Jio-bp's outlets. The agreement spans both current and upcoming stations from both companies. ATGL, a joint venture between the Adani Group and French energy giant TotalEnergies, operates approximately 650 CNG stations and is a major player in India's city gas distribution (CGD) sector. In contrast, Jio-bp—a collaboration between Reliance Industries and UK-based BP—manages a nationwide network of around 2,000 fuel stations. Jio-bp Statement Sarthak Behuria, Chairman of Jio-bp, said, 'We are united by a shared vision to offer our customers a superior selection of high-quality fuels. Jio-bp has always been committed to delivering an exceptional customer experience, and this partnership allows us to leverage each other's strengths to further enhance the value we provide to India.' Adani Total Gas Statement Echoing the collaborative sentiment, Suresh P Manglani, Executive Director and CEO of Adani Total Gas, commented, 'It is our shared vision to provide a complete range of high-quality fuels at our outlets. This partnership will enable us to leverage each other's infrastructure, thus enhancing customer experience and offerings.' The business relationship between the two conglomerates first took shape last year when Reliance acquired a 26 percent stake in an Adani Power project located in Madhya Pradesh. As part of that deal, Reliance secured 500 MW of electricity from the plant for captive consumption.
