Monday, March 16
Donald Trump suggests resuming large-scale trade with Russia after the Ukraine war, but experts cite significant obstacles. Hundreds of foreign companies have exited Russia since the 2022 invasion, facing asset seizures and legal instability. Russia's focus on military production and stringent regulations further deter US firms, making a swift trade revival unlikely despite potential sanction relief.
Asian stock markets experienced a downturn following a US court decision that temporarily reinstated President Trump's tariff policies. Tokyo's Nikkei and Hong Kong's Hang Seng both fell by 1.4%, while Shanghai's Composite Index also declined.
India's defence budget is set for substantial growth, potentially reaching Rs 31.7 lakh crore by 2047, according to a CII-KPMG report. Defence production and exports are also projected to surge, positioning India as a key global supplier. Increased capital expenditure and R&D investment are expected, alongside a rise in defence's GDP share.
The Union finance ministry has suggested excluding small borrowers from the Reserve Bank of India's new gold-loan rules. This proposal aims to protect those with loans under Rs 2 lakh. The ministry also recommended delaying the rules until January 1, 2026. This decision follows opposition from Tamil Nadu, where concerns were raised about the impact on rural borrowers.
India's Fintech industry is experiencing substantial growth, particularly in small-ticket personal loans, with Fintech lenders originating 89% of loans under Rs 50,000. While expanding into secured loans and underserved markets, Fintechs face challenges in building customer loyalty beyond STPLs and managing rising delinquencies in business and property loans. Diversifying products and strengthening risk management are crucial for sustainable growth.
India stands out as the only major economy with consistent steel production growth between 2019 and 2024, increasing by 33%. This growth is fueled by strong demand across infrastructure, power, and manufacturing sectors. Despite facing pricing pressures from Chinese imports, the Indian government's safeguard duty has helped prices recover, positioning the steel sector for continued expansion.
Asian shares and US futures experienced a surge following a court ruling that temporarily blocked President Trump's ability to impose sweeping tariffs under emergency powers. Japan's Nikkei 225 index advanced, and the dollar rose against the yen. The ruling's impact on trade talks and ongoing inflation concerns, as highlighted in the Federal Reserve minutes, remains a key factor.
The e-rupee's circulation significantly increased to ₹1,016 crore by March 2025, according to the RBI's recent report. The central bank is actively exploring cross-border CBDC pilots to improve payment efficiency and transparency, with bilateral projects underway. The retail pilot now includes 17 banks and 60 lakh users, while the wholesale version expands with new participants.
Ola Electric faced a net loss of Rs 870 crore in Q4 FY25. Revenue decreased to Rs 611 crore. The company's full-year loss was Rs 2,276 crore. Despite losses, Ola Electric maintains market leadership with strong scooter sales. They aim for profitability in FY26 through cost efficiency and increased production.
Stock market today: Indian equity benchmark indices, Nifty50 and BSE Sensex, recovered on Thursday following a two-day decline, reflecting gains in global markets after a US court halted President Donald Trump's reciprocal tariffs.
