COMPANIES | PAGE 6 ECONOMY | PAGE 2 Infosys' Salil Parekh is highest paid ITCEO INTERNATIONAL | PAGE 10 FIFAWorldCupfacesatough opponent:Extremeheat AHMEDABAD, THURSDAY, JUNE 4, 2026 SpaceX seeks $135 a share for $75-bn IPO FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XXI 04, 28 PAGES, `12 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 74,346.17 ▼ 303.67 NIFTY: 23,405.60 ▼ 77.95 NIKKEI 225: 68,402.13 ▲ 1,667.89 HANG SENG: 25,633.21 ▼ 405.11 `/$: 95.71 ▼ 0.44 `/€: 111.15 ▼ 0.23 BRENT: $97.41 ▲ $1.41 GOLD: `1,54,529 ▼ `1,584 IN THE NEWS NATION PAGE 11 DELHI HOTELFIRE: 11 FOREIGNERS AMONG 21 KILLED A DEVASTATING BLAZE tore through a hotel operating without a fire NOC in a congested bylane in south Delhi's Malviya Nagar area on Wednesday, killing at least 21 people, including 11 foreigners whose relatives were being treated in hospitals nearby. MARKETS 20% LEVYON INTERESTEARNED LIKELYTO GO Taxcutsforforeignbond buyers may come soon BLOOMBERG New Delhi, June 3 PAGE 7 RATE PAUSE WILL HELP STABILISE GROWTH: SETTY STATE BANK OF India Chairman CS Setty on Wednesday said that a pause in the policy rates by the Reserve Bank of India's monetary policy committee would help stabilise conditions and support economic growth, reports Kshipra Petkar. CAPITAL BOOST THE GOVERNMENT IS poised to announce steps to draw more foreign investments by reducing taxes and removing caps on the ownership of some bonds as soon as this week, according to people with knowledge of the matter. While the government is expected to consider a significant cut in the taxes paid by global funds on bonds, the people said, asking not to be identified as the details are private. One of the points being discussed iswhetherthe government should eliminate the 20% levy on interest earned from bonds, or reduce BEST IN CLASS PAGE 22 Rupee reels under fresh oil spike, falls 44 paise THE RUPEE FELL on Wednesday for a second straight day as renewed US–Iran attacks pushed oil prices higher. The currency weakened to a low of 95.80 against the dollar before settling at 95.71, down 44 paise from the previous close, reports Christina Titus. ■ PAGE 7 DRY RUN SERIES--I slash or remove 20% tax on interest for overseas bond investors under review ■ Move follows 2024 expansion that added 14-and 30-year sovereign papers ■ RBI may expand “fully accessible” bond list to open select long-dated gilts to foreign investors it to a bare minimum, they said. Separately, the Reserve Bank of India is likelyto designate some long-tenor sovereign notes as fully accessible, allowing overseas investors to buy them without limits,they said.The previous tweak to the ■ Policy push comes as rupee hits record low amid outflows, oil shock and tariff pressures list of government securities available under this route was in 2024, when the central bank removed 14-and 30-year bonds. The finance ministry and the RBI didn’t respond to emails seeking comment. The rupee’s slide to record lows has prompted authorities to step up efforts to stem its decline, with Prime Minister Narendra Modi calling on citizens to conserve foreign exchange amid a surge in oil import costs. Continued on Page 10 Rajesh Exports in `15 lakh-cr soup ANJANATHERESE ANTONY Mumbai, June 3 Sebi has also barred CMD Rajesh Mehta from trading until further orders WHILE AXIS IS BUILDING A SMARTER BANK, IDFC FIRST HAS RESHAPED ITSELF, AND AU SIGNALS BIG TRANSFORMATION ■ Proposal to THE SECURITIES AND Exchange Board of India (Sebi) has passed an interim ex-parte order against Rajesh Exports (REL) and its Chairman and Managing Director, Rajesh Mehta, for allegedly misrepresenting financial statements involving transactions aggregating nearly `15 lakh crore— equivalentto99.8%ofthecom- pany’s consolidated revenue duringFY21-FY25.Sebihasalso barred Mehta from trading in the company’s securities until furtherorders. In its 109-page order, the market regulatorcited multiple violations,includingnon-disclosure of consolidated financials, absence of subsidiary accounts, inadequate disclosures at the group level,misrepresentation in annual reports, and a false claim regarding investment in an African gold mine. It also flagged non-cooperation by the companyand its chairman during the investigation.“The conductofRELprimafacierevealsa coordinatedpatternoffinancial misrepresentation, concealment and regulatory non-compliance extending across multiple financial years,” Sebi Whole-Time Member Kamlesh ChandraVarshneysaid. Continued on Page 10 US plans new12.5% tariff on India amid trade talks MUKESH JAGOTA New Delhi, June 3 DEAL PRESSURE THE US HAS proposed an additional 12.5% tariff on imports from India and 43 other countries, on the grounds their exports contain inputs produced by forced labour.The move is seen as an attempt bythe US administration to retain leverage in ongoing trade negotiations. The proposed duties, announced after an investigation into the policies of 60 countries that together account for more than 99% of US imports, will replace the existing 10% tariff imposed underSection 122 of theTrade Act. Those duties are due to expire on July 24. For 16 other countriescoveredbytheinvestigation, the US has proposed an additional tariff of 10%. The move comes even as India and the US are engaged in the second round of in-person negotiations for an interim trade deal,which officials say is nearingcompletion.TheUSdelegation, led by Assistant US Trade Representative for South andCentralAsiaBrendanLynch, is in NewDelhi forthree days of talks ending onThursday. “India remains engaged with the US on the matter as a part of Section 301 proceedings,” the Commerce and Industry Ministry said in a statement. It added that India is also simultaneously engagedwith the US to finalise a framework agreement that would replace the current ■ New duties 10% Section 122 tariff after July 24 ■ The action follows a USTR review covering 60 major trading economies ■ The move comes amid ongoing India-US trade deal negotiations in New Delhi ■ India is engaging the US on both Section 301 proceedings and trade talks ■ Analysts see the tariff proposal as leverage in broader trade negotiations Gor to meet Goyal today US AMBASSADOR SERGIO Gor is scheduled to meet Union Commerce Minister Piyush Goyal on Thursday to discuss the trade agreement between India and the US, reports Kshipra Petkar. Gor said on Wednesday the deal was 99% complete,adding both sides were working to resolve theremaining“1%”ofthe sticking points and that the was announced on February2, 2026 in accordance with the joint statement released on February 7,2026. Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), said the proposed tariffs were part of a broader US pressure strategy. long-awaited pact was expected to be signed within the next few weeks. He said theUShadleviedlowertariffs on Indian imports than for any of its neighbouring countries, stressing Washington valued its relationship with New Delhi. The envoy said the tariffs imposed by the US were part of a global policy framework. “India should treat Section 301 actions and the India–US Bilateral Trade Agreement (BTA) negotiations separately whilereassessingthecostsand benefitsoftheproposedagreement,”he added. Continued on Page 11 Centreokaysaviationrelief with`10,000-crATF fund SAURAVANAND & NITIN KUMAR New Delhi, June 3 TAILWINDS SpiceJet THE UNION CABINET on Wednesday approved a `10,000-croreaviationturbine fuel (ATF) price stabilisation fund, expanding the Centre’s supportpackagefortheaviation sector.The move comes as airlinesandstate-runfuelretailers grapple with the fallout of the West Asia conflict and a sharp rise in jet fuel prices. The latest intervention comes weeks after the government announced ` 5,000 crore of credit support for airlines under the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.Together, the two measures seek to address liq- 12.19 12.42 1.89% June2 (close) June3 (close) »INSIDE« CABINET NOD TO REPLACE OLD TRUCKS IN DELHI P3 uidity pressures on carriers as well as mounting fuel underrecoveries faced by oil marketing companies (OMC). IndiGo 4,466 4,512 1.04% June2 (close) June3 (close) Theone-timebudgetarysupportwill be provided as an interest-free advance to OMCs to enable them to supply ATF to scheduledIndianairlinesatapredeterminedbenchmarkprice. Continued on Page 10 Monsoon 2026 is shaping up to be one of the weakest in over a decade.The first of a three-part series looks at what this means for consumer companies and the rural demand Waitingforrain,bracingforpain VIVEAT SUSAN PINTO & NITIN KUMAR Mumbai/New Delhi, June 3 CONSUMER-FACING BUSINESSES ARE bracing for turbulence. A weakening monsoon forecast—driven by El Niño conditions—threatens to erode rural demand, the one engine that has kept FMCG companies, automakers and appliance manufacturers movingevenasurbanrecovery sputtered.Withthefestiveseason on the horizon, the stakes could not be higher. The India Meteorological Department (IMD) last week trimmed its forecast to 90% of the long-period average (LPA), down from 92%, and put an 84% probability on rainfall landing in the “deficient to belownormal”range.Brokerage estimatessuggestthatevery1% shortfall from the LPA can drag rural consumption growth down by 0.5–0.7 percentage points—a rule of thumb that is nowflashing red. CLOUDY OUTLOOK ■ Rural sales account for over a third of total revenues for FMCG and durables companies ■ ICRA projects tractor sales growth will slow sharply to 1–4% in FY27 ■ Every 1% deviation in rainfall from LPA can affect rural consumption growth ■ Price hikes already initiated across FMCG and durables sectors Theblowlandsatanalready difficult moment for India Inc. Commoditypricevolatility,elevatedlogisticscostsandtheripple effects of the Iran war are already squeezing margins. Price hikes have been pushed through across FMCG and durables to absorb input cost pressuresfromtheWestAsiacrisis, but a monsoon-driven demand slowdown would be a different beast: more diffused, longer-lasting and harder to price away. “Ruraldemandwastheonly consistent factor in FMCG over the last few quarters as urban recovery was fragile,” said Mayank Shah, chief marketing officer at Parle Products. “A below-normal monsoon may hurt sentiment in rural areas as farm incomes take a hit.” Ruralsalesaccountforovera thirdoftotalrevenuesforFMCG and durables companies, and have been a primary volume growthdriverinrecentquarters. Companieshavebeendoubling down on direct rural distribution to ride the hinterland momentum—an expansion that may now need to be rethought as consumers in those markets growcautious. The split between massmarketandpremiumsegments couldwidensharply.“Weexpect mass-market and entry-level products to take a hit as farm incomes come under pressure," saidKamalNandi,businesshead and executive vice-president of the appliances business at Godrej Enterprises Group. Continued on Page 11 Ahmedabad