WORDS WORTH WELL BEING Francis Fukuyama writes a dazzling fusion of memoir, intellectual biography, family chronicle and political history Page 4 Why the central drug regulator has issued a fresh advisory against the rampant use of painkillers and antibiotics and what it actually means Page 9 Maladies of our times MIND & GAMES DRUGS WITH A WARNING VOL.NO.XVII SL.NO.40 Climate career map The climate economy will need far more than just scientists and sustainability experts Page 11 LIVING Follow us on Twitter & Facebook. App available on App Store & Play Store WWW.FINANCIALEXPRESS.COM SETTING THE BAR FOR DIWALI FINANCIAL EXPRESS ON SUNDAY SUNDAY, OCTOBER 25, 2026 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 , ● Indian cos more giving than MNCs on festive doles VAISHALI DAR New Delhi, October 24 ■ SPOTLIGHT, P6-7 Legacy in a mithai box India is home to several iconic sweet shops that have remained focused on what they have always made and been famous for, and preserving recipes handed down through generations. Read some of their stories ■ LEISURE, P5 Music sans margins MIDCAPAND SMALLCAP stocks have come under heavy selling pressure this month, with individual stocks falling by as much as 24.6% and 40.8%, respectively, amid heightened risk aversion.The BSE Midcap and Relative performance Sensex BSE Smallcap indices declined 6% and 8.87%, respectively, in October so far, significantly underperforming the benchmark Sensex, which gained a modest 0.89% during the period. —Compiled by Kishor Kadam BSEMidcap 100.9 100 94.0 96 BSESmallcap Base: Sep 30, 2026=100 Sept 30, 2026 91.1 Oct 10, 2026 -37.2 Midwest Energy WardWizard -35.8 Innovations Ganesh -33.5 Benzoplast -38.8 Artif icial Electronics Top 5 smallcap losers -40.8 Emudhra Exide -19.6 Inds HDB -18.7 Financial Aegis -18.1 Vopak -20.1 SJVN Top 5 midcap losers -24.6 Yes Bank K O L K A T A , L U C K N O W , WHEN ITCOMEStobeinggeneroustoemployeesonDiwali,it seems Indian companies feel thefestivespiritmorethantheir global counterparts. For many employees in global organisations, a Diwali bonus is far from guaranteed.A mid-levelemployeeataforeign bank said the company offers GIFTING GAP M U M B A I , ■ At several tech companies, festive gifting rather than cash bonus seems to be the norm ■ MNCs follow structured compensation cycles aligned with calendar or financial year rather than any particular festival ■ Smaller firms, on the other hand, continue to offer Diwali bonus and festive gifts to their employees ■ Some follow trend of giving end-of-year gifts but nothing as such on Diwali neitheraDiwaligiftnorabonus. A tax consultant at a multinational tech company, who has spent nearly 15 years with the organisation,echoed the sentiment:“MNCs don’t give Diwali bonuses.Alltheseyearswehave not got anybonus ormithai.” At several technology companies, festive gifting rather than a cash bonus appears to be the norm.“There is a trend of IRAN CLAIMS FULL CONTROL OF HORMUZ War clouds intensify as US, Iran set for escalation AGENCIES October 24 Midcap and smallcap stocks continue to fall 88 K O C H I , ● Trump likely to strike after polls; Iran raps US for no deal East meets West as Jodhpur RIFF brings back forgotten female voices from centuries ago 92 H Y D E R A B A D , Return in October (%) A MIDDLE EASTwarthat President Donald Trump said would beoverinamatterofweeksnow looks set to escalate as it enters its eighth month. Trump has repeatedlyhintedthathisforces in the Mideast would resume strikes on Iran after the US midterm elections on November3.The president has already sentathirdaircraftcarrierstrike group and 10,000 additional sailors and Marines toward the Persian Gulf to give US commanders more options if he restarts hostilities. Recent attempts to wind down the war through diplomatictalkshavefailed.ButIranian President Massoud Pezeshkian on Saturday said there should be a new attempt atconcludingthedeal.“Wewere having negotiations, the cowards(Americans)messedeverythingup...Istillthinkweshould go and conclude it,” Pezeshkian ON THE BOIL ■ Trump has sent a third aircraft carrier strike group, 10,000 additional troops to Persian Gulf ■ US orders departure of diplomats & families in Saudi Arabia fearing more aggression ■ But Iran’s Pezeshkian wants another go at deal, blaming US for failure in talks ■ Iran preparing to retaliate across the Middle East, including against Israel & UAE ■ IRGC on Saturday claimed Iran maintained full control over Strait of Hormuz said in a state address on TV, blamingtheUSforthefailureof an interim deal. The Islamic Revolutionary Guard Corps (IRGC)onSaturdayalsoclaimed that Iran maintained full control over the Strait of Hormuz, asserting that security was being maintained for vessels operatingintheregioninaccordancewith Iranian regulations. Thisweek,USDefenseSecretary Pete Hegseth also made an unannounced stop in Israel — whichlaunchedthewaragainst Iran alongside the US — where he met with PM Benjamin Netanyahu just days ahead of theIsraelileader’sreelectionbid. StaffingatMideastbases,which have been hit hard by Iran, has reportedlybeen reduced. This week the US State Departmentorderedthedeparture of some diplomats and familiesinSaudiArabia,following the Iran-backed Houthis expanding the conflict into Saudi Arabia. Houthis have pummelled the Riyadh airport andenergyfacilitieswithdrones and missiles,killing dozens and wounding hundreds. On Saturday they said they had attacked the King Fahd International Airport, InternationalAirport in Dammam,airport in Najran and airbase in Khamis Mushait, besides the Rabigh oil refinery and Aramco facility in Yanbu.There was no confirmationfromSaudiArabia on these claims. Against that backdrop,Iranisnowbracingfor a fresh US bombing campaign around the midterms. Continued on Page 2 Kotak Mahindra Bank PATrises 29% FE BUREAU Mumbai, October 24 KOTAK MAHINDRA BANK’S net profit rose 29% year-onyear to `4,212 crore in Q2FY27, aided by higher total income,beatinganalystexpectations. Analysts had estimated the bank to report a net profit of `4,128 crore,according to Bloomberg. Net interest income of the bank grew 16% year-on- year to `8,459 crore in the quarter, and other income jumped 23% year-on-year to `3,194 crore. However, the net interest margin declined to 4.31% from 4.53% in the preceding quarter and 4.54% a year earlier,which the bank attributed to FCNR (B) deposit mobilisation during the period. Continued on Page 3 IDFC First net up 196.5% ■ P3 REPORT CARD Kotak Mahindra Bank standalone financials Net interest Operating income profit 16 21 Net profit 29 (` cr) Q2FY26 Q2FY27 y-o-y % chg Gross NPAs (%) 1.39 1.04 Net NPAs (%) 0.32 0.24 15-20% Annual growth in corporate gifting giving end-of-the-year gifts suchastrolleybagsorbluetooth speakers, but nothing on Diwali,” an employee shared. VIKRAM CHAUDHARY New Delhi, October 24 AS MARUTI SUZUKI prepares to expand its product roadmap,theautomaker’spremium sales channel, Nexa, is also gearing up for a rebounce after a few quiet quarters. Though not yet officially confirmed by Maruti Suzuki, as per sources,Nexa’s upcoming launches include a facelift of the Fronx, followed by a robust 2027 lineup. “Under D E L H I , P U N E Nexa, after the Fronx facelift, the upcoming models are a highly anticipated seven-seat electric SUV (codenamed YMC), the XL6 facelift, major updates to the Grand Vitara, and a brand-new electric or hybrid model positioned in the Fronx segment,” said an industry insider. “Over the last few quarters, the sales share of Nexa cars has been decreasing within the overall Maruti Suzuki portfolio,but this premium sales channel is slated for a rebound,” he added. Model-wise sales data analysis shows that in calendar year 2024, Nexa’s contributionwithin Maruti Suzuki’s overall domestic portfoliowas DECLINING SHARE Ne Nexa's share (%) Nexa Maruti Suzuki (overall) 2024 30.7 538,668 1,755,424 2025 29.4 531,962 1,806,515 2026* 27.5 436,702 1,590,560 t *Jan-Sept 30.68% (538,668 Nexa units out of 1,755,424 total Maruti Suzuki sales), which dropped to 29.44% in 2025 (531,962 out of 1,806,515 units), and further to 27.45% during January-September 2026 (436,702 out of 1,590,560 units). But there’s a reason why Nexa sales moderated.For the last few quarters, Nexa has been relying on three models — Baleno, Fronx, and Grand Vitara.Launched in 2022-23, these have now started to get dated. In addition, the Ciaz sedan and the Ignis hatch- back were discontinued, further impacting Nexa’s market share within the Maruti Suzuki portfolio. On the other side, Maruti Suzuki’s mass-market sales channel, Arena, is on an overdrive. The core models of the Wagon R,Swift,Brezza,Ertiga, and Eeco have been consistently selling well, and a huge push was provided by the Victoris SUVand the Dzire sedan. Launched in September 2025, the Victoris has been a runaway success. Having sold 36,267 units during September-December 2025,this year the SUV has sold a phenomenal 111,335 units. In addition, following the launch of the all-new Dzire in Novem- BENGALURU Moreover, employees of these companies usually even missthestatutorybonusunder the Payment of Bonus Act, 1965,whichhassincebeensubsumed into the Code onWages, 2019, which seeks to consolidate and simplifyIndia’swagerelated laws. Under this, factoriesorspecifiedestablishments arerequiredtopaybonustoeligibleemployees.Theminimum bonus prescribed is 8.33% of thesalary,or`100,whicheveris higher, for employees with at least 30 working days in an accounting year and salary up to `21,000. Continued on Page 2 Sebieyesgraded compliance for stockbrokers KUSHAN SHAH Mumbai, October 24 THE ROADMAP THE THREE ESSENTIALS for the future of Indian markets are depth, trust and technology, said Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey on Saturday. Addressing the broker community at an Association of NSE Members of India (ANMI) convention in Mumbai, Pandey highlighted the regulator’s roadmap to shapethefutureofthemarkets by combining simpler regulations, deeper markets, and responsible use of technology. He added that the regulator is working to achieve this by initiativessuchasgradedcomplianceforbrokers.“Forstockbrokers, we are exploring graded compliance. It would reflect yourscale,yourclientexposure, and your reliance on technology,”Pandeysaid. He said there is focus on review of short selling and securities lending and borrowing mechanism (SLBM) to improve liquidity and price discovery, development of a market-making framework to boost secondary trading in bonds, a framework to prevent misuse of trading terminals, and finalising guidelines for responsible use of artificial intelligence. He said towns and villages will join big cities to play a major role in the next wave of retail broking, and urged market participants to ensure deeper participation in these markets. He said investors need to be offered choices beyond equity, such as bonds, real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). Towinthetrustofinvestors, Pandey asked brokers to not just execute trades, but also ■ Focus on review of short Nexa set to rebounce after some quiet quarters ● Maruti banking on its upcoming launches, facelifts N E W It’s sweeterto be a desi firm employee on Diwali WHAT'S INSIDE 104 C H E N N A I , 3,253 4,212 P U B L I S H E D READ TO LEAD 5,268 6,382 16 Pages, `12 7,311 8,459 BENGALURU How a home bar is less about stocking up and more about setting a mood Page 8 ber 2024, the compact sedan emerged as India’s highestselling passenger vehicle in 2025with 214,488 units,and in 2026 YTD, the Dzire continues to lead overall car sales with 186,167 units,holding a lead over the resurgent Tata Punch (182,269 units). A big example why Nexa will rebound is the Baleno facelift. Launched on September 5, this premium hatchback sold 25,392 units within the first month — highest in India — and as festive season sales gain momentum, the Baleno will increase its tally, hopefully soon to be joined by the Fronx facelift, following by other Nexa cars in 2027. selling and securities lending and borrowing mechanism ■ Development of market-making framework to boost secondary trading in bonds ■ Framework to prevent misuse of trading terminals ■ Finalising guidelines for responsible use of AI TUHIN KANTA PANDEY, CHAIRMAN, SEBI Small towns & villages will play big role in next wave of retail broking guide clients to understand their needs and risk appetite. “A client who understands risk invests wisely and stays investedlonger.Thatisgoodfor the client, for you and for the market,” he said. Pandey also cautioned brokers about unregistered advisers and finfluencers and said client interactions can be used to explain risks,verified information and flag frauds. Commenting on the increasing number of trades driven by algorithms and the potential impact of cyber attacks, Pandey asked brokers to treat cyber security as a business priority and test theirsystemsbyplanningtheir responses to such events. Agri ministry issues 110 mn farmer IDs THE Union Agriculture Ministry has issued 110 mn unique farmer IDs, referred to as Kisan Pehchaan Patra, linked to land records under the Digital Agriculture Mission. ■ PAGE 3 Protesters march across Europe WHILE France has claimed the most international attention,MilaninItaly, Tirana inAlbania and Madrid in Spain are among the many other European cities thatwere rocked by protests on Saturday. ■ PAGE 16