BACK PAGE | PAGE 20 COMPANIES | PAGE 4 SiddaramaiahresignsasCM, paveswayforShivakumar INTERNATIONAL | PAGE 10 Tata bets onTiago to revive hatchbacks US, Iran agree on 60-day ceasefire extension KOLKATA, FRIDAY, MAY 29, 2026 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL 35 NO. 177, 34 PAGES, `12 (NORTH EAST STATES `12 & ANDAMAN `20) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 75,867.80 ▼ 141.90* NIFTY: 23,907.15 ▼ 6.55* NIKKEI 225: 64,693.12 ▼ 306.29 HANG SENG: 25,006.16 ▼ 322.07 `/$: 95.70 ▼ 0.01* `/€: 111.46 ▼ 0.05* BRENT: $96.30 ▲ $0.58 GOLD: `1,55,400 ▼ `1,864* *Prv close on interest earned from government bonds — among the highest globally LTCG tax on listed equity shares, bonds held for over 12 months tance Scheme (LRS) from the current $250,000 perindividual. Sources said the limit could be temporarily halved, addingthatthedecisionmight be reviewed again later. Foreign investors are currently subject to a 12.5% LTCG tax on listed equity shares and bonds held for more than 12 months. Foreign investors, including for- consider additional curbs on gold imports and measures to increase domestic gold utilisation eign portfolio investors (FPIs), also pay a withholding tax of about 20% on interest earned from government bonds they hold — among the highest globally — after a concessional 5% rate ended in 2023. Under the RBI’s LRS, resident Indians remitted $28.98 billion in foreign exchange for education,travel,investments and property purchases in FY26. However, analysts contend that, given the typically lowerannual usage byIndians, the move maynot result in significant forex savings. Additional curbs on gold imports and measures to increase domestic gold utilisation are also among the proposals under discussion. Continued on Page 7 McKinseyto help Highervaluationfailstohalt mid-,small-capmomentum AirIndia draft turnaround plan ANJANATHERESE ANTONY Mumbai, May 28 DEV CHATTERJEE Mumbai, May 28 THE BOARD OFTata Sonswas briefed on Air India’s turnaround plans on May 26, with inputs from global consulting firm McKinsey & Company, according to persons familiar with the matter. The airline is undergoing a sweeping transformation as it seeks to pare losses of `26,800 crore reported in FY26. The board was informed that Air India may continue to remain loss-making over the next three years,with the Iran conflict,elevatedfuelprices,delays in fleet renewal and the cabin retrofit programme weighing on operations. Apersonawareofthedevelopments said McKinsey is assistingtheTataGroupairline inimprovingoperationalcapabilities and reducing losses. Nearlyfouryearsafteritsacquisition in 2022 under the government’s privatisation programme, a sustained turn RECOVERY ROUTE ■ Air India may remain loss-making over the next three years, Tata Sons board has been informed ■ Iran conflict, elevated fuel prices, delays in fleet renewal and cabin retrofit programme weigh on operations EVEN AS THE West Asia conflictweighs on domestic largecap stocks, investors continue to favour comparatively “expensive” mid- and smallcap shares. So far in May, benchmark indices Nifty 50 andBSESensexhaveremained in the red,while theirmid- and small-cap counterparts have posted gains in the low- to mid-single digits. The trend is visible over a longer period as well. Over the past three months, the Sensex and the Nifty have yielded returns of 5.4% and 7.1%, respectively, while mid- and small-cap indices have gained between 16.9% and 19.7% — more than three times the returns of the benchmark indices.Overaone-yearperiod, the benchmark indices remain in the red, whereas mid- and small-cap indices have delivered returns ranging from 1.6% to 8.3%. What stands out is that investor interest in these segments has remained resilient despite persistent concerns over elevated valuations. Both theNiftySmall-cap250andthe BSE 250 Small cap indices are trading higher than the fiveyearaverage,leading to market experts repeatedlyflagging the froth in mid- and small-cap stocks overthe past twoyears. In March 2024, then Securities and Exchange Board of India Chairperson Madhabi Puri Buch had warned of “froth”inthesesegments.Subsequently, S Naren, chief investment officer and executive director at ICICI Prudential Mutual Fund, had cautioned investors to get “lock, stock and barrel” out of midand small-cap stocks. Continued on Page 10 OUTPERFORMING BENCHMARKS BSE Sensex Nifty 50 Nifty Midcap 150 20.6 23.6 -around has remained elusive, underliningtheneedforexternalexpertise,thepersonadded. McKinsey declined to commentonthemandate,whilean email sent to Tata Sons and Air India did not elicit a response. Continued on Page 10 20.4 23.4 29.3 33.3 Returns (%) 1 month 3 months 6 months 1 year BSE 150 Midcap Nifty Smallcap 250 BSE 250 Smallcap 34.5 34.5 PE (trailing) PE* 19.7 INDIAAND SOUTH Korea have agreed to address New Delhi’s concerns over the widening trade deficit within the framework of the existing Comprehensive Economic Partnership Agreement (CEPA), instead of negotiating a fresh trade agreement, reports Mukesh Jagota. ■ PAGE 3 12.5% ■ Govt may also 33.6 29.9 PE (5-year average) PE* 37 2.5 1.6 India, Korea agree to address trade gap within CEPA 20% currently subject to a 2.2 INDIA’S STRATEGY OF DEVELOPMENT MUST TAKE INTO ACCOUNT FAR-REACHING CHANGES IN AWORLD IN FLUX, WRITE C RANGARAJAN AND DK SRIVASTAVA ■ They pay a withholding tax of about ■ Foreign investors are 19.7 PAGE 8 or about 5.4%, between February-end and mid-May 2.5 1.6 OPINION from Indian equities so far in 2026, compared with $18.9 billion in the whole of 2025 $39.6 billion, 2.2 SUPPLY-CHAIN BOTTLENECKS DIM NUCLEARAMBITIONS P2 $24.28 billion 5.9 » INSIDE « SECTORALANDTHEMATIC MFs LOSE SHEEN PAGE 7 reserves have declined by nearly PATANJALI FOODS ON Thursday said that it had received a GSTdemandnoticeof`1,352.9 crore for FY23 for allegedly under-reporting its taxable turnover by `7,516 crore. It deniedtheallegationofdiscrepancies as factuallyincorrect. The company said that the show-cause notice had disclosed taxable turnover amounting to `8,140.63 crore in GSTR-3B returns for the period April 2022 to February 2023whereas taxable turnover amountingto`15,656.88crore was allegedly reflected in TDS returns filed by various deductors.This had resulted in a mismatch(of`7,516crore),leading to the demand notice. Thecompanysaidithaddisclosed all taxable supplies during the relevant period to `2,017 crore as reflected in the GSTR-3B returns. Further, the taxable value reflected in TDS returns filed by deductors amounted to `109.48 crore. Patanjali Foods has said it is in the process of submitting a responseandbelievesithasadequate grounds to substantiate itspositionbeforetheauthority within the stipulated time. 16.9 CHINAHAS RETAINED its grip over India’s cleanenergy and advanced manufacturing supply chain, controlling more than 84% of India’s lithiumion battery imports, 78% of permanent magnet supplies and over half of lithium carbonate imports, reports SauravAnand. THE CENTRE IS expected to announce a slew of measures within a week to boost foreign capital inflows and stem outflows, in a move that will help support the rupee and make it easier to finance a widening current account deficit. While the exact details are still being worked out, sources saidmorethanadozenproposals are under discussion.These include a reduction in longterm capital gains tax (LTCG) on listed equities and government bonds, and a cut in the withholding tax on interest income earned by foreign investorsongovernmentsecurities. Both tax reliefs may be subjecttospecifiedtimelimits. To curb capital outflows, officials are also considering reducing the annual limit under the Liberalised Remit- ■ India’s forex withdrawn a net 1.6 CHINAHOLDS 84% SHARE IN INDIA BATTERY IMPORTS PRASANTA SAHU New Delhi, May 28 ■ FPIs have 3.8 PAGE 2 remittances under consideration too VIVEAT SUSAN PINTO Mumbai, May 28 HALTING CAPITAL FLIGHT 8.3 ECONOMY ● Curbs on outward 17.8 THE UK GOVERNMENT will oppose any attempt from Sunil Bharti Mittal to increase his stake in telecoms group BT, citing the need to maintain sovereign control over "critical national infrastructure", the Financial Times reported on Thursday. Patanjali Foods receives GST demand of `1,353 crore Steps to boost capital inflows likely in a week 2.7 UK WILL BLOCK MITTAL BID TO RAISE BT STAKE 4 PAGE 6 -1.4 5.4 -11 -6.9 COMPANIES LTCG RELIEF,CUTINWITHHOLDINGTAX ON G-SECs ONTHETABLE -0.4 7.1 -8.5 -3.4 IN THE NEWS 32.5 *Price-to-earnings EVambitions meet household economics NITIN KUMAR New Delhi, May 28 POWER SHIFT PART- I As India pushes electrification to cut fossil-fuel dependence, a three-part series examines whether consumers can afford the transition AS FUEL PRICES rise and concerns over oil imports persist, electric vehicles (EVs) are increasinglybeingprescribedby policymakers, economists and industry executives as part of the solution.Butwhile a shift to EVs may help reduce fuel consumption at the economylevel, the ownership economics for many private vehicle buyers remain less straightforward. An April 2026 study by the Centre for Social and Economic Progress(CSEP)foundthatelectric passenger vehicles do not achieve total cost of ownership (TCO) parity with comparable internal combustion engine (ICE)carswithina10-yearownership cycle for many private users. Consumers, industry observers said, typically make carpurchasedecisionsbasedon ownership costs and payback periods rather than broader macroeconomic objectives. For many buyers, the purchase decision begins with upfront cost rather than fuel savings over a decade. BEYOND FOSSIL FUELS ■ For many private users, EVs do not achieve ownership-cost parity compared with ICE vehicles within 10 years ■ For EVs to become financially attractive, a study says, ownershipcost parity needs to be achieved within 5 years ■ EV prices have moderated in recent years, but they continue to carry a premium over comparable ICE vehicles ■ Battery localisation, maturing supply chains, lower-cost mass-market EVs will help reduce the gap, an expert says Although prices of electric vehicles have moderated in recent years, they continue to carry a premium over comparable petrol-powered vehicles, largely due to battery costs. The CSEP study found that ownership economics differ sharply based on vehicle usage. The average private user drives around 33 km a day,according to its estimates.Even at current fuelprices,suchuserscouldsave substantiallyonannualoperating expenses by switching to electric vehicles,but the higher purchasepricecontinuestooffset much of that advantage. “The recent hikes will help,but only at the margins,” said Shyamasis Das, fellow at CSEP. “At best, parity timelines may shorten by a few months to a year depending on the kilometres driven daily,” he added. Industry estimates suggest petrolvehicle running costs are intherangeof`7-9perkilometre,while charging costs forEVs using home charging infrastructure may be around `1-2 per kilometre.But upfront premiumsintherangeof`4-5lakh in mass-market segments can extendpaybackperiodsbeyond the typical ownership cycle of manybuyers.TheCSEPanalysis noted that TCO parity needs to be achievedwithin the first five years of ownership for EVs to becomefinanciallyattractive,as many first-time buyers replace vehicleswithinfourtofiveyears. The economics improve materially at higher utilisation levels. According to the study, whendailyvehicleusagerisesto around132km—closertocommercial vehicle usage patterns — TCO parity between EVs and ICE vehicles can be achieved within the third year of ownership. The gap also narrows as vehiclepricesmoveupthevalue chain.While mass-market EVs can command substantial premiums over comparable petrol vehicles,the difference reduces in premium and luxury segments,making ownership economics more favourable. Gaurav Vangaal, associate director, light vehicle forecasting at S&P Global Mobility,said lower battery costs and supplychain development may ultimately have a larger role in changing EV economics than fuel price movements alone. “It is battery localisation, maturingsupplychainsandthe launchoflower-costmass-marketelectricmodelsthatwillhelp bring TCO parity between EVs and ICEvehicles closer,” he said. The mismatch between broader policy objectives and household economics could remain a key challenge for EV adoption. While reducing oil imports may strengthen the case for electrification at a national level,wider adoption among private buyers may increasinglydependonwhether the financial arithmetic works at the household level. (Next: Renewable energy) Kolkata Telecom wars return asVi calls outAirtel ● Vodafonecounters Airtel’spriorityplan inconsumerdrive URVI MALVANIA Mumbai, May 28 AFTER YEARS OF tariff wars and consolidation battles, the telecommunications sector may be headed for a fresh confrontation — this time over whethersomeusersshouldget a better internet experiencethanothers. Vodafone Idea (Vi) has fired the opening salvo through a sharp consumer campaign targeting Bharti Airtel’s recently launched PriorityPostpaid service, signalling the return of public sparring between telecom operators after a prolonged period in which the industry’s focus had largely shiftedtosurvival,fundraising and tariff repair. Thetimingissignificantfor Vi. The company, which recently received relief through the reassessment of adjusted gross revenue (AGR) dues and saw Kumar Mangalam Birla return as chairman, appears keen to signal that it is ready to compete more aggressively again after years of financial stress and subscriber losses. Vi’s latest social media RINGING LOUD ■ Through the campaign, Vi appears keen to signal that it is ready to compete more aggressively again after years of financial stress and subscriber losses ■ Airtel has defended its Priority Postpaid service, arguing that it remains compliant with net neutrality norms campaign — built around slogans such as “sabko equal network ka vaada” (the promise of equal network for everyone) and “everyone is a priority with Vi” — appears directly aimed at Airtel’s Priority Postpaid offering,which uses 5G network slicing technology to provide a more stable and consistent network experience for postpaid users. The campaign copy leaves little to interpretation. “Na kisi ko kum, na zyada. Sabko equal network ka vaada (No one gets more and no one gets less.The promise of equal network foreveryone),”one of the creatives reads, followed by the tagline: “Strong network. Sabka haq.” (Strong network, everyone’s right.) Continued on Page 6 Ad rates for IPL final wait for powerplay surge ALOKANANDA CHAKRABORTY New Delhi, May 28 league-stage pricing. That’s a modest rise considering the tournament has delivered soaring viewership, recordVAIBHAV SOORYAVANSHI breaking batting numbers and MAY have been sending enough sixes to threaten lowbowlers into therapy, but IPL flying aircraft. 2026 advertising rates By the time the »INSIDE« have shown far less playoffraceintensified, aggression than the the tournament had HOTEL, teenager’s strike rate. crossed an unpreceFLIGHT Unlike the last-minute TARIFFS HIT dented1.1billionviewbidding frenzy seen in T20 STRIKE ers,accordingtofigures RATE 2025 — and even 2024 released byJioStar.DigPAGE 20 — broadcasters this ital reach rose 15% season are still waiting year-on-year,whileconfor advertisers to walk out nected TV (CTV) posted a sharp swinging. 25% jump in reach and a 20% Industrysourcessaidlinear increase in watch-time. TVspot rates forSunday’s final Regional-languageviewingalso are currently hovering around surged 42%. `21-24 lakh for 10 seconds, roughly 15% higher than Continued on Page 10 STRATEGIC TIMEOUT `21-24 lakh ■ This year, spot rates have barely budged through the tournament, staying around 15% for a ■ Linear TV spot rates for Sunday’s final are currently hovering around for 10 seconds, roughly higher than league-stage pricing `18 lakh 10-second combined SD+HD feed IPL 2025 saw spot ad rates for the final going up 40-50% over league-stage levels RILsecures$625-mnSamurai loan,highestbyanIndianfirm RELIANCE INDUSTRIES (RIL) hasraisedJPY91.9billion($625 million)throughaSamurailoan — the largest such borrowing everbyan Indian corporate and thethird-largestbyanAsiancorporate—thecompanysaidinits FY26 annual report, reports RaghavendraKamath. The transaction saw participation from 10 Japanese and Taiwanese banks and was exe- cuted to refinance yen-denominated debt maturing during theyear.RILalsosecuredfinancing equivalent to $600 million throughuntiedfacilitiesbacked by NEXI, Japan’s export credit agency,to fund its solar photovoltaic and battery giga factories. This marks NEXI’s first untied facility extended to any corporate globally,it said. ■RELATEDREPORTSONPAGE4