Sensex Plunges Nearly 2 Percent Amid US Tariff Concerns

by Banking & FinanceEconomyLatest Updates

Indian stock markets plunged on Tuesday, the first trading session of the new financial year, as investors reacted to global trade tensions ahead of the US reciprocal tariff announcement on Wednesday.

The Sensex tumbled 1,390.41 points, or 1.80 percent, closing at 76,024.51, after swinging between an intra-day high of 77,487.05 and a low of 75,912.18. The Nifty 50 also slumped 353.65 points, or 1.50 percent, to settle at 23,165.70, with an intra-day range of 23,565.15 to 23,136.40.

The selloff was broad-based, with most Sensex stocks ending in the red, except Zomato, IndusInd Bank, and State Bank of India (SBI).

Top losers included HCL Technologies, Bajaj Finserv, HDFC Bank, Bajaj Finance, and Infosys, which declined up to 3.66 percent.

Midcap and smallcap stocks also faced pressure. Nifty Midcap100 lost 0.86 percent, while Nifty Smallcap100 dipped 0.70 percent.

The BSE Midcap index dropped 0.9 percent, whereas the Smallcap index edged up 0.2 percent.

Sectorally, IT, real estate, and consumer durables fell nearly 2 percent each, while media, oil & gas, and telecom stocks managed to stay positive.

Investor sentiment turned jittery, with India VIX—known as the fear index—surging 8.37 percent to 13.78, indicating increased market uncertainty.

“Amid heightened global volatility ahead of the anticipated US reciprocal tariff announcement tomorrow (US time), the domestic market witnessed a significant sell-off today. Investors are eagerly awaiting the specifics of these tariffs while also keeping a close eye on ongoing negotiations for a potential Indo-US trade agreement,” said Vinod Nair, Head of Research, Geojit Investments Limited.

The IT sector bore the brunt of the selloff due to its heavy exposure to the US market, while real estate stocks tumbled after Maharashtra raised ready reckoner rates, impacting property valuations.

President of India graces closing ceremony of the commemoration of 90th year of RBI

by Banking & FinanceLatest Updates

The President of India, Smt Droupadi Murmu graced the closing ceremony of the commemoration of 90th year of the Reserve Bank of India in Mumbai today (April 1, 2025).

Speaking on the occasion, the President said that the RBI, as the central bank, is at the very centre of India’s incredible growth story. It has witnessed the whole journey of the country so far, from the time before Independence when it was suffering from widespread poverty to the time now when it is among the top economies in the world.

The President said that RBI has emerged as one of the most critically important institutions in the nation. She pointed out that a common man or woman has no direct interaction with RBI – except for its name printed on the currency notes in their pockets, but indirectly all their financial dealings, through banks and otherwise, are governed by the RBI. And they instinctively place their utmost faith in the financial system overseen by it. She stated that in the nine decades, the biggest achievement of the RBI is this trust.

The RBI earned this trust by steadfastly maintaining its mandate of price stability, growth, and financial stability. Also, it has continuously adapted to meet the evolving needs of our growing nation. Its swift responses to key challenges, from economic liberalisation in the 1990s to the Covid-19 pandemic, highlight its resilience and adaptability. In an increasingly globalising world, it has also ensured that India’s financial system remains resilient in the face of any adverse international trends.

The President said that the RBI has played a key role in making India a global leader in digital payments. By continuously modernizing the country’s payment infrastructure, it has ensured that digital transactions are not only seamless and efficient but also secure. Innovations like the UPI have revolutionised financial access, enabling instant, low-cost transactions and deepening financial inclusion. Beyond payments, RBI has nurtured a vibrant fin-tech ecosystem.

The President said that as India approaches the centenary of its Independence, the mission of ‘Viksit Bharat 2047’ calls for a financial ecosystem that is innovative, adaptive, and accessible to all. She stated that the path ahead would present new complexities and challenges.

She expressed confidence that with a steadfast commitment to stability, innovation and inclusivity, RBI would continue to be a pillar of strength – reinforcing trust and steering India towards a future of prosperity and global leadership. She said that as the guardian of monetary and financial stability, RBI would play a defining role in this journey – ensuring a sound banking system, driving financial innovation, and safeguarding trust in our financial ecosystem.

DPIIT and YES BANK Partner to Strengthen India’s Startup Ecosystem

by Banking & FinanceLatest Updates

In a significant move to bolster India’s startup ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) has signed a Memorandum of Understanding (MoU) with YES BANK. This collaboration aims to foster innovation and provide crucial support to product startups, innovators, and entrepreneurs across the country.

The partnership will leverage DPIIT’s Startup India initiative and YES BANK’s financial expertise to facilitate market linkages, funding access, mentorship, and infrastructure support for early-stage ventures. Startups will benefit from YES BANK’s HeadStartup program, which offers tailored banking and financial solutions, including working capital, credit access, and cash flow management. Additionally, they will gain access to YES BANK’s extensive network, strategic partnerships, and industry expertise, enabling them to scale operations and attract investments effectively.

Speaking on the occasion, Joint Secretary, DPIIT, Shri Sanjiv emphasized the significance of the collaboration, stating, “India’s manufacturing and startup ecosystem is at a transformative juncture, and partnerships like this play a crucial role in driving innovation-led growth. We are delighted to collaborate with YES BANK to offer emerging startups the right resources and opportunities to scale and thrive.”

The MoU was signed by Director, DPIIT, Dr. Sumeet Jarangal and Zonal Head, YES BANK, Rohit Aneja, in the presence of senior officials from both organizations. This collaboration marks a significant step toward creating a robust and self-sustaining startup ecosystem in India.

DRI busts major gold smuggling racket with seizure of 14.2 kg foreign-origin gold worth Rs. 12.56 crore and other assets worth Rs. 4.73 crore

by Banking & FinanceLatest Updates

In a significant operation against gold smuggling, the Directorate of Revenue Intelligence (DRI), successfully intercepted a passenger carrying foreign-origin gold bars valued at Rs. 12.56 crore at Kempegowda International Airport, Bengaluru.

Acting on specific intelligence, DRI officers intercepted an Indian lady passenger aged around 33 years, who had arrived from Dubai to Bengaluru via Emirates flight on March 3, 2025. Upon examination, gold bars weighing 14.2 kg were found ingeniously concealed on person. The contraband, valued at Rs. 12.56 Crore was seized under the provisions of the Customs Act, 1962.

Following the interception, DRI officers conducted a search at her residential premises located at Lavelle Road, Bengaluru, where she resides with her husband. The search resulted in the seizure of gold jewelry worth Rs. 2.06 crore and Indian currency amounting to Rs. 2.67 crore. The lady passenger has been placed under arrest under the relevant provisions of the Customs Act, 1962 and remanded to judicial custody.

The total seizure in the case stands at Rs. 17.29 crore, marking a significant blow to organised gold smuggling networks. The haul of 14.2 kg is one of the biggest seizures of gold at Bengaluru International airport in recent times.

Union Minister of Commerce & Industry Shri Piyush Goyal emphasises mutual funds industry’s role in India’s growth at AMFI Summit 2025

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The mutual funds industry has played a pivotal role in India’s growth story by encouraging financial literacy and taking innovative financial ideas to the industry and the investors. This was stated by Union Minister of Commerce & Industry Shri Piyush Goyal during his address as a Chief Guest at the Association of Mutual Funds in India (AMFI) Mutual Fund Summit 2025 today in Mumbai.

The Minister further complimented the domestic investors for filling the gap created by the foreign institutional investors (FIIs) post-Covid. “Collective investment methods like SIPs along with domestic investors supported the market. They helped in spreading financial awareness and financial products to every part of the country, he said.

Highlighting the importance of safeguarding the importance of small investors and other key stakeholders, Shri Goyal urged the industry leaders to reflect on ways to minimise volatility in the stock market. Large fund inflows, compulsions of the market to deploy capital, fear among investors on missing out on attractive stocks brought crises among investors during rightsizing. There has been a lot of misinformation flow about the unending ability of the market to go on a one-way street, he noted, and described the unpredictability of the stock market as a wakeup call for the industry and its small investors.

AMFI should also become conscious of its duties by isolating misguided investors from the rest. Companies with mettle have maintained reasonable prices at the stock market during recent turbulence, he noted. He said that duties and responsibilities of the industry towards the market are larger than the profitable returns investors enjoy in the short term. He also added that government spending and private capex are showing signs of comeback.

Elaborating on the responsibilities of the mutual funds industry towards its investors, the Minister urged the participants to be more diligent in cautioning investors from taking risks. He hoped that initiatives as such will spur India’s growth story for the next 22 years. Shri Goyal urged the industry to support and handhold investors, look at financial inclusion as a collective responsibility and take up financial education as its duty.

Shri Goyal asserted that assets under management (AUM) in the mutual funds industry at nearly Rs 70 lakh crore and soon to be Rs 100 lakh crore will dominate the market and domestic investors will determine India’s future not the foreign institutional investors. He also highlighted the need for the industry as wealth creators to have a fair and organised market.

Commerce and Industry Minister Piyush Goyal joins Maharashtra CM Devendra Fadnavis for key distribution ceremony of 15 self-redeveloped housing societies in North Mumbai

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Union Minister of Commerce and Industry, Shri Piyush Goyal, along with Maharashtra Chief Minister Shri Devendra Fadnavis, distributed keys for the 15 self-redeveloped housing societies in North Mumbai on 25 February 2025. Addressing the gathering, the Minister assured that the Central Government would extend full support to the Maharashtra Government’s initiatives in urban redevelopment and infrastructure development.

Shri Goyal conveyed Prime Minister Shri Narendra Modi’s message, stating that the government remains committed to providing pucca houses to the homeless and those currently living in kachha houses in the same locality. He highlighted that this initiative aims to secure the future of families, ensuring a stable home for children and future generations.

Speaking on the development in North Mumbai, Shri Goyal mentioned that the region has been witnessing significant infrastructure advancements in recent times. He noted that the construction of a 1000-bed hospital near the Magathane metro station is progressing swiftly, and another 1000-bed hospital is planned for construction in West Kandivali, which will enhance healthcare access and services in the region.

The Minister applauded Chief Minister Devendra Fadnavis for leading major infrastructural projects, including the extension of the Coastal Road (Worli-Bandra) to Versova and the proposed coastal road connecting the new airport via the Atal Sethu. He stated that these projects would play a pivotal role in reducing congestion and improving connectivity in Mumbai.

Shri Goyal also commended the Maharashtra Government’s efforts in addressing critical civic issues. He pointed out that the persistent problem of road damage during monsoon seasons is being tackled through the extensive use of cement-concrete roads. Additionally, he acknowledged that the issue of untreated sewage water polluting water bodies is being effectively managed, with over ₹26,000 crore allocated to ensure proper sewage treatment before its release into the ocean.

The Minister urged stakeholders to actively participate in and create awareness about self-redevelopment projects in their respective areas. He expressed hope that such initiatives would provide North Mumbai with a new direction, fostering development and ensuring a secure future for its residents.

Concluding his remarks, Shri Goyal emphasized that the event marked a significant step towards self-reliance in urban development, reinforcing the government’s vision of making housing accessible and sustainable for all.

 

Sensex, Nifty Open Lower As Asian Markets Plunge Amid Trade War Fears

by Banking & Finance

The Indian stock market opened sharply lower on Monday, following a steep sell-off across Asian markets after US President Donald Trump announced new trade tariffs. The tariffs, set to take effect from Tuesday, have added to concerns of escalating trade tensions and their potential economic impact.

At 9:33 AM, the benchmark Sensex was down more than 400 points at 77,103.22, while the Nifty dropped 154 points to 23,328.00. At the opening bell, the Sensex had lost 710 points, or 0.88%, slipping to 76,821.50. On the National Stock Exchange (NSE), all sectors witnessed declines, with Nifty Metal and Nifty Realty being the worst performers.

Asian markets were also hit hard by the news, with Hong Kong’s Hang Seng Index falling by 1.3%, Japan’s Nikkei 225 dropping 2.4%, South Korea’s KOSPI tumbling 3%, and Australia’s ASX 200 losing 1.8%.

Trump’s announcement on Saturday (US time) that he would impose tariffs of 25% on imports from Canada and Mexico, and 10% on goods from China starting Tuesday, sent shockwaves through global markets. He also indicated that new tariffs could be placed on imports from the European Union, further heightening market uncertainty.

US equity futures also saw a sharp sell-off in response to Trump’s tariff decision, and analysts are anticipating a volatile day for global markets.

According to Hardik Matalia, a Derivatives Analyst at Choice Broking, the Nifty could find support around 23,200, followed by 23,100 and 23,000. On the upside, immediate resistance is seen at 23,500, with further resistance at 23,600 and 23,700.

The Indian Rupee also weakened, opening 41 paise lower at 87.02 against the US Dollar, compared to the previous close of 86.61 on Friday.

Vikram Kasat, Head of Advisory at PL Capital-Prabhudas Lilladher, said that the markets were bracing for a volatile day after Trump’s decision. He mentioned, “It will be fascinating to see how investors react to something they have known was coming and which is almost universally seen as damaging for economic growth and financial assets. They won’t be surprised, but they will still be shocked.”

In terms of foreign investment, Foreign Institutional Investors (FIIs) remained net sellers on February 1, offloading equities worth Rs 1,327 crore, while domestic institutions bought equities worth Rs 824 crore on the same day.

The announcement also triggered high volatility in the precious metals markets, with both gold and silver slipping from their highs. The strength of the US Dollar index, along with the onset of the US trade tariff war, put pressure on these commodities. Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd, noted that gold and silver were holding key support levels of $2,722 and $30.20 per troy ounce, respectively, on a weekly closing basis in international markets.

As global markets grapple with the unfolding trade tensions, investors are closely monitoring how the situation will evolve, particularly in light of the ongoing uncertainty surrounding President Trump’s tariff policies.

-IANS

Asian Stocks Slump, Dollar Soars As Trump Tariffs Trigger Trade War Fear

by Banking & FinanceEconomy

Asian stock markets slumped on Monday and U.S. equity futures pointed sharply lower after U.S. President Donald Trump’s tariffs on Canada, Mexico and China triggered fears of a broad trade war and hit to global growth.

The U.S. dollar shot to a record peak against the Chinese yuan in offshore trading, and its highest against Canada’s currency since 2003 and the strongest against the Mexican peso since 2022.

Japan’s Nikkei share average tumbled as much as 2.3% in early trading, and Australia’s benchmark – which often functions as a proxy for Chinese markets – slumped more than 2%.

Stocks in Hong Kong, which include listings of Chinese companies, fell 1.9% after a Lunar New Year holiday. China’s markets resume trading following the holidays on Wednesday.

Pan-European STOXX 50 futures  sank 2.7%.

Trump followed through with threats to slap Canada and Mexico with duties of 25% and China with a 10% levy at the weekend, calling them necessary to combat the flow of migrants and fentanyl into the U.S..

Canada and Mexico immediately vowed retaliatory measures, and China said it would challenge Trump’s levies at the World Trade Organization.

The tariffs, outlined in three executive orders, are due to take effect at 12:01 a.m. ET (0501 GMT) on Tuesday.

Trump’s move was the first strike in what could usher in a destructive global trade war and drive a surge in U.S. inflation that would “come even faster and be larger than we initially expected,” said Paul Ashworth of Capital Economics.

A model gauging the economic impact of Trump’s tariff plan from EY chief economist Greg Daco suggests it would reduce U.S. economic growth by 1.5 percentage points this year, throw Canada and Mexico into recession and usher in “stagflation” at home.

Barclays strategists previously estimated that the tariffs could create a 2.8% drag on S&P 500 company earnings, including the projected fallout from retaliatory measures from the targeted countries.

S&P 500 futures slid 1.6%, after a 0.5% retreat for the cash index on Friday, when the White House reiterated Trump’s plan to announce tariffs on Saturday. Nasdaq futures slumped 2.2%, following Friday’s 0.3% loss for the cash index.

The U.S. dollar was up 0.5% at 7.3538 yuan in the offshore market in Asia, having earlier hit a record high of 7.3765. Onshore trading remains shut for holidays.

The U.S. currency climbed 2.8% to 21.2547 Mexican pesos, the highest since March 2022, and rose as much as 1.4% to C$1.4755, a level not seen since 2003.

The euro dropped as much as 2.3% to $1.0125 – the lowest level since November 2022 as Europe potentially stands in Trump’s tariff crosshairs.

U.S. two-year Treasury yields rose as much as 3.6 basis points to 4.274%, a one-week high, on concerns tariffs will stoke U.S. inflation and delay interest-rate cuts.

Two-year Japanese government bond yields rose in sympathy, reaching their highest levels since October 2008.

The cryptocurrency bitcoin tumbled to as low as $92,997.86, a three-week trough.

(Reuters)

Centre To Introduce New Income Tax Bill

by Banking & Finance

In a major announcement, Finance Minister Nirmala Sitharaman said the government will introduce a new Income Tax Bill next week.

The new Income Tax Code will be announced next week, and the I-T Department will “trust first, scrutinise later”, the Finance Minister said while presenting the Budget 2025-26.

The Finance Minister also announced that the FDI limit for the insurance sector will be raised to 100 per cent and the enhanced limit for the insurance sector is to be applicable to those that invest entire premium in the country.

The government has, in the past, introduced faceless assessment, faster tax returns and five ‘Vivad Se Vishwas’ schemes.

FM Sitharaman said during her Budget speech that speedy approvals for company mergers will be ensured and the scope of such norms to be expanded.

“The government has shown steadfast commitment to ease of doing business and we will develop modern, people friendly, trust-based regulatory framework,” the Finance Minister mentioned.

The ‘Export Promotion Mission’ with sectorial and ministerial targets has also been launched.

“Digital public infrastructure for international trade will be set up for financing solutions and support will be provided for domestic manufacturing to join global supply chains,” said the Finance Minister.

Jan Vishwas Bill 2.0 will be introduced to decriminalise over 100 provisions and an investment-friendly index of states will also be launched this year.

The Budget Session of Parliament, which commenced on Friday, will be conducted in two phases – the first started on January 31 and will conclude on February 13, while the second phase will begin on March 10 and end on April 4.

(IANS)

 

Republic Day 2025: From ‘Lakhpati Didi’ Initiative To ‘Evolution Of Banking Services’, Tableaux Highlights India’s Progress

by Banking & FinanceEconomy

A vibrant display of tableaux highlighted India’s rich cultural heritage and remarkable progress across various sectors during the 76th Republic Day parade on Sunday. The tableaux, representing diverse states, union territories, and central ministries, paraded down Kartavya Path, captivating the audience with their creativity, themes, and intricate designs.

Ministry of Rural Development: Empowering women through “Lakhpati Didi” initiative

The Ministry of Rural Development presented a tableau focused on the theme of the “Lakhpati Didi Initiative,” which champions women’s economic empowerment through entrepreneurship, self-reliance, and education. The tableau featured a radiant statue of Lakhpati Didi, symbolizing a successful female entrepreneur who has achieved financial independence. Surrounding scenes depicted women engaged in various economic activities like weaving, handicrafts, and agriculture, highlighting the transformative impact of the initiative on women’s livelihoods.

The tableau also emphasized digital literacy, showcasing women using computers, while stressing the positive effects of women’s empowerment on children’s education. With vibrant cultural elements, traditional costumes, and rural motifs, the tableau conveyed the message of “Empowered Women, Prosperous Families, Strong Nation.”

Ministry of Finance: Evolution of banking services

The Department of Financial Services from the Ministry of Finance presented a tableau depicting the evolution of banking services in India. At the forefront, a spinning golden coin symbolized the country’s growing economy, innovation, and inclusive progress. The rupee symbol further illustrated the vibrancy and resilience of India’s economic growth. The tableau moved through the progression from traditional financial practices to modern banking systems, showcasing technological advancements and financial inclusivity.

A woman using an ATM highlighted how expanded banking services have improved access for all segments of society. The upward arrow leading to the UPI symbol showcased India’s rapid adoption of modern technologies to ensure inclusive progress. An intricately designed Potli at the rear represented wealth and prosperity, while LED screens displayed the importance of financial literacy and the various schemes under the National Mission for Financial Inclusion.

Ministry of Earth Sciences: Celebrating 150 years of Mausam Bhavan

The Ministry of Earth Sciences showcased a tableau celebrating 150 years of Mausam Bhavan, underscoring its transformative contributions to meteorology and society. The front section of the tableau highlighted the ministry’s efforts in cyclone awareness, featuring a depiction of Cyclone Dana and showcasing the life-saving power of timely weather warnings.

The tableau also focused on the impact of mobile weather alerts for farmers, enabling better crop management and improved livelihoods. The rear sections represented the ministry’s impact on four key communities: Fisherwomen, Pilots, Mothers, and Scientists. Live characters holding various meteorological instruments further illustrated the ministry’s role in safeguarding lives and empowering communities through accurate weather data and forecasts.