'It's Biden, Not Tariffs': Trump Explains Economic Data
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Economic Times
7 minutes ago
- Economic Times
Don't short this market; better days ahead post tariff resolution: Ajay Bagga
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "So far, there have been broad disappointments—except perhaps refining margins, which have performed better. But overall, margins have declined across most sectors. Even in banking, we've seen higher provisions and lower margins due to rate cuts. So overall: disappointing earnings, high valuations, and unsupportive global cues—that's the current story of the Indian markets ," says Ajay Bagga , Market three major factors were pressuring the Indian markets on Friday. If we look globally, markets were down—MSCI Asia closed 1% lower, MSCI Europe, midway through the session, was down about 0.6%, and MSCI Emerging Markets were down 0.7%. So, the correction was reason behind this is, firstly, the strong recovery from April onwards. We saw a dip approaching the July deadlines, which were then rolled over to August 1st. As we approach that date, markets are reacting to the heavy news flow expected next week, including the Fed meeting and the August 1st deadline. Global markets are a bit cautious, and Indian markets are reflecting this is the fourth consecutive week of decline for the Nifty , largely driven by FPI selling, which is more due to valuation concerns. Nifty's one-year forward P/E is still around 23.5 times. The expectation was that, given last year's slowdown from March to September, this year's June YoY numbers would benefit from the base effect, and we'd see double-digit overall earnings growth—but that hasn't far, there have been broad disappointments—except perhaps refining margins, which have performed better. But overall, margins have declined across most sectors. Even in banking, we've seen higher provisions and lower margins due to rate cuts. So overall: disappointing earnings, high valuations, and unsupportive global cues—that's the current story of the Indian a confusing market. Let me give you two quick pharma. Despite President Trump promising tariffs on pharma by the end of the week, we saw a rally in the sector on Friday. That's puzzling, as pharma is one of the sectors most at risk this look at the broader market: ₹1.5 lakh crore worth of shares have been offloaded by promoters and PE funds with minimal impact cost. The market has absorbed it. The primary market is in a frenzy—we are headed for a historic high in fundraises. The QIP for the biggest bank came in at ₹25,000 crore and attracted bids worth over ₹1 lakh there's ample liquidity and appetite. Retail investors are providing an exit to FPIs. It's a bipolar market—retailers are buying while institutions are exiting, and that sentiment is keeping the market resilient. When this sentiment shifts—and a big trigger could be the India-US tariff announcement expected around mid to late August—there could be a major FPI short squeeze (currently 85% net short).So, I wouldn't recommend shorting this market. I'd recommend having faith in it. We'll see better days once the uncertainty around US tariffs is the UK FTA, the UK Parliament has approved it, but it may take a year to implement. So, let's wait and see. It'll benefit labour-intensive sectors like textiles, leather, gems and jewellery, small machinery, chemicals, organics, and seafood. Indian professionals working in the UK on short-term visas could save an estimated ₹4,000 crore annually—a significant it's a positive development, but the markets haven't reacted much yet—possibly because implementation details are still unclear, and the UK Parliament has yet to finalise surprising how auto stocks started moving up mid-week. I was taken aback because the fundamentals are quite weak. Demand is suffering. The only bright spots are tractors and possibly India, there's a divide: urban consumption is still challenged, while rural consumption is relatively strong. So, auto companies that cater to rural markets will do better. Tractor sales are expected to cross 1 million this year—that's a good sign, and we should see better margins for tractor motorcycles—are mostly sold in semi-urban and rural areas (60-70%). They should perform well. Once the harvest season arrives in October, we could see further the rest of the segment is under pressure. We're facing risks from Chinese rare earth exports—EV production has already been cut in July and could halt in August if we don't get essential components like top of that, the Trump tariffs—25% on auto and auto ancillaries—are already in place. Global auto majors like Volvo, Volkswagen, Stellantis, and GM have each estimated earnings hits between $500 million and $1 billion due to these tariffs. So, it's hard to see how smaller Indian players will escape the fallout.I wouldn't bet on the auto segment just yet—unless India secures a carve-out similar to Japan's 15% tariff. If we get that, auto stocks could rally. But as of now, it's a binary and difficult decision. Fundamentals are weak, but news flow could flip the I'd say: start nibbling slowly, but wait till August. Once there's more clarity on India's tariff treatment, especially from the US, we'll have a better sense of direction.
Hindustan Times
7 minutes ago
- Hindustan Times
NASA fires 20% staff to make itself more 'efficient', 2nd layoffs since Trump took office
Roughly 20% of the workforce at National Aeronautics and Space Administration (NASA) is set to depart the agency, a spokesperson confirmed Friday, marking a significant shift as the space agency grapples with restructuring under the Trump administration's broader push to reduce the size of the federal government. Approximately 3,870 NASA employees have opted to leave through the government's Deferred Resignation Program(AI-generated image) Approximately 3,870 NASA employees have opted to leave through the government's Deferred Resignation Program, though the agency noted the figure may change in the coming weeks as applications are finalized or withdrawn. After the resignations and natural attrition are accounted for, NASA expects to maintain a civil servant workforce of about 14,000. The reduction, described by the agency as an effort to become 'streamlined and more efficient,' comes amid rising concerns about the potential impact on NASA's mission readiness and safety standards. 'Safety remains a top priority for our agency as we balance the need to become a more streamlined and more efficient organization and work to ensure we remain fully capable of pursuing a Golden Era of exploration and innovation, including to the Moon and Mars,' NASA said in a statement. This is the second major wave of departures since President Donald Trump re-entered office and resumed efforts to shrink the federal workforce. The first round, initiated shortly after his inauguration, offered a buyout to federal workers, resulting in the voluntary departure of around 870 NASA employees—roughly 4.8% of its workforce at the time. That effort was coordinated by the Department of Government Efficiency, now led by tech entrepreneur Elon Musk. The latest round, launched in early June with a deadline to opt in by July 25, saw around 3,000 additional personnel—about 16.4% of the agency—choose to leave. The program is designed to minimize the need for involuntary layoffs, NASA officials said. 'The reason we are doing this is to minimize any involuntary workforce reductions in the future,' former acting NASA Administrator Janet Petro said during a June 25 agency town hall. 'That is our whole goal, minimizing that.' Future of space agency in jeopardy? Despite reassurances, the departures have ignited debate within the scientific community and inside NASA itself. A growing chorus of current and former employees are warning that the agency may be shedding too much too quickly—at the cost of deep institutional knowledge and mission-critical expertise. In a letter addressed to interim Administrator Sean Duffy, who also heads the Department of Transportation, hundreds of current and former NASA employees expressed concern over the cuts. The letter, titled 'The Voyager Declaration,' cautioned that the agency's ability to execute its complex missions could be compromised. 'Thousands of NASA civil servant employees have already been terminated, resigned or retired early, taking with them highly specialized, irreplaceable knowledge crucial to carrying out NASA's mission,' the letter reads. NASA had earlier sought a 'blanket waiver' in February to protect its probationary employees from layoffs. However, the mass departure now underway highlights the limits of those protective measures.
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Business Standard
7 minutes ago
- Business Standard
Nearly 4,000 Nasa workers set to exit voluntarily: Here's why it matters
Leadership turns to voluntary exits to avoid layoffs, but experts warn of long-term impact on missions and innovation New Delhi Nasa is set to lose close to 3,870 employees under a voluntary resignation initiative, which is a part of a broader push by the Trump administration to reduce the federal workforce. The figures, though substantial, remain provisional as the agency continues reviewing applications and accounting for withdrawals or unapproved resignations, Nasa said in a statement on July 25. The space agency reassured that safety would remain a priority even as it transitions to become a 'more streamlined and efficient organisation'. What is the voluntary resignation programme? The Deferred Resignation Programme (DRP) is an initiative introduced under the Trump administration. It offers eligible Nasa employees a structured exit path, providing severance benefits and continued pay during a transitional period. The programme is aimed at helping the agency reduce its workforce without resorting to compulsory layoffs. In 2025, Nasa extended two opportunities for staff to participate in the DRP. The first round came early in the Trump presidency, when around 870 employees—about 4.8 per cent of the workforce—accepted voluntary exits. This move formed part of a wider federal efficiency push, reportedly guided by the Elon Musk-led Department of Government Efficiency. The second round, launched in June 2025, saw a much stronger response. By the July 25 deadline, nearly 3,000 workers—approximately 16.4 per cent of the workforce—had opted to resign under the scheme. Leadership focuses on voluntary cuts to avoid layoffs Nasa officials have maintained that the initiative is designed to prevent forced layoffs. 'Our primary objective is to minimise involuntary workforce reductions,' said former acting administrator Janet Petro during a town hall on June 25. Earlier this year, the agency even sought a blanket waiver to protect employees in their probationary period from being laid off. Experts warn of knowledge drain and operational risks The scale of the departures has raised alarm among space industry veterans and insiders. Many fear the agency will lose specialised talent critical to its ambitious space missions, including exploration of the Moon and Mars. In a letter titled 'The Voyager Declaration', hundreds of current and former Nasa staff urged interim administrator Sean Duffy—who also serves as head of the Department of Transportation—to reconsider the scale of the cuts. The letter warned that a substantial loss of expertise could undermine the safety, innovation, and success of Nasa's future endeavours.
