COMPANIES | PAGE 4 MARKETS | PAGE 6 NSEissuesnormsforretail investorsinalgotrading INTERNATIONAL | PAGE 7 Indriyalookstoshinewith largerstores,innovation AHMEDABAD, WEDNESDAY, MAY 7, 2025 Afterinitialdebacle,Merz electedGermanchancellor FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XIX 285, 26 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: 80,641.07 ▼ 155.77 NIFTY: 24,379.60 ▼ 81.55 NIKKEI 225: 36,830.69* ▲ 378.39 HANG SENG: 22,662.71 ▲ 158.03 `/$: 84.44 ▼ 0.19 `/€: 95.51 ▲ 0.05 BRENT: $62.26 ▲ $2.03 GOLD: `96,708 ▲ `1,825 Sebi mulls separate voluntary delisting of select PSUs THE SECURITIESAND Exchange Board of India (Sebi) has proposed a separate voluntary delisting procedure for public sector undertakings (PSUs) on Tuesday in which the aggregate shareholding of promoter or promoter group, the government, in this case equals or exceeds 90% of the total issued shares, reports Ananya Grover. ■ PAGE 6 Expecting Paytm to turn profitable next quarter: Sharma PAYTM CHIEF EXECUTIVE Vijay Shekhar Sharma on Tuesday said the fintech major is “on the verge of PAT (profit after tax) profitability. I am very sure that next quarter onwards, if everything goes as we are seeing, it could very well be a PAT quarter.” Paytm reported narrowing of consolidated loss to `545 crore in the fourth quarter, reports PTI. ■ PAGE 6 FE S P E C I A L S Rewriting the rules for digital Is it time to revisit regulation for OTT platforms? ■ BRANDWAGON, P9 Private sector capex yet to do the heavy-lifting Tariff-related uncertainties & weak domestic consumption are making the private sector wary about investing ■ EXPLAINER, P9 in the next five years PRASANTA SAHU New Delhi, May 6 ■ Indian workers in UK MUKESH JAGOTA New Delhi, May 6 INDIA AND THE UK on Tuesday announced conclusion of their free trade agreement (FTA), with a plan to more than double bilateral trade in goods and ser»INSIDE« vices from $60 billion now. The EXPORTERS agreement was CHEER DEAL; reached after ALCOHOL FIRMS protracted negoUNHAPPY tiations which saw many ups PAGE 2 and downs and lasted three years. The prime ministers of India and the UK called the deal “landmark” and “fantastic” respectively, while it marked the first major breakthrough by India, which is seeking to ease trade with leading developed-world partners amid a tariff war and a slowing of its own goods shipments. A bilateral trade to get waiver from social security payments for an initial period of three years Movement of Indians to ease, greater access to UK market for India's digitally delivered services ■ agreement with the US,and an FTA with the European Union are in the works. Underthe dealwith the UK,New Delhi will get duty-free access to 99% of merchandise shipments into the island country.The benefit forIndian industrywill be substantialinproductcategorieslikechemicals,textilesand clothing,leather& footwear,gems&jewelleryandbase metals,where the UK tariffs are relatively high. In return,itwillreduce dutieson 90% of tariff lines forthe UK,with a commitmentofzerotariffson85% of UK items in a decade. Sensitive items like dairyproducts,and apple are, however, excluded from the plan. Notably,UKautomobile companies’ market access in India will ease,with the customs duties to be slashed from 100% to 10%. This will, however, be subject to quotas, to avoid any serious adverse effect LandpricesnearNoidaairport doubleasrealtorsrushin RAGHAVENDRA KAMATH Mumbai, May 6 PLOT THICKENS PRICES OF REAL estate in the surrounding areas of Jewar airport in Noida have nearly doubled in the last three years with property developers picking up land parcels at a fast pace in the emerging realty hotspot.About 390 acres of land near the Noida International Airport, along the Yamuna Expressway, has been snapped up in last 12 months, according to Anarock Property Consultants. The value of these transactions works out to a significant `2,340 crore with an acre going for `5-6 crore. Several developers including the Purvanchal Group, Eldeco Group, VVIP group, Greenbay transactions near the Noida International airport in last 12 months has been around `2,340 crore ■ Properties in Noida and Greater ■ Purvanchal group, Eldeco Group, VVIP group, Greenbay Infrastructure have been allotted land parcels Noida are slowly going out of reach for many with prices at `15,000-20,000 per sq ft Infrastructure have bought land on the Yamuna Expressway and some have already launched housing projects. The Yamuna Expressway is a 165-kilometre, six-lane express- CONFLICT LOOMS ■ Many in the WEIGHING ITS RESPONSE to the Pahalgam terrorattack,the governmentisworkingonamulti-pronged military strategy to re-establish deterrenceagainstPakistan’shostile behaviour,it is learnt. This has been the main and clearbrief given to the militaryand securityestablishment bythe political top brass over the last week of consultations.The process, sources said,will look at all credible options, including a military retaliation,but the objective of “re-establishing deterrence”is firmly set. There is a growing realisation govt say deterrence post Balakot has ‘worn off’ ■ The main objective of the response is ‘reestablishing deterrence’ ■ India to reduce duties on 90% of tariff lines, zero tariffs on 85% of items in the next ten years ■ Whisky and gin tariffs to be halved to 75%, automotive tariffs to reduce from 100% now to 10%, subject to quota on Indian industry.Whisky and gin tariffs will be halved to 75%,with a plan fora furtherprogressive cut to 40% in a decade. India is also seen to benefit considerablyfromtheeasingofservices trade under then FTA, with greater mobility of Indian professionals and higher market access for assortedservices,including thedigitally delivered ones. Continued on Page 2 Pharma stocks fall on fresh threat of Trump tariffs MANU KAUSHIK New Delhi, May 6 ■ The value of land way in Uttar Pradesh, connecting Greater Noida to Agra. A 750metre elevated road connects the airport directly to the expressway. Continued on Page 15 India weighs response to Pak SHUBHAJIT ROY & AMRITA NAYAK DUTTA New Delhi, May 6 $120 billion ■ ‘Hurting Pakistan’ among options on the table within the top levels of the government that the deterrence that was established by the Balakot aerial strike in February 2019 has “worn off”, and it is time to re-establish that,sources said. This means that multiple retaliatory options against Pakistan are beingdiscussed,andIndiaiscontinuing to build up its military arsenal througharangeofnewacquisitions, whilestrengtheningitsdeployment and defences along the Line of Control and planning for stocking and uninterrupted supply chains for contingencies. Sources said that this could be one, two or three options – indicating multiple options – of “hurting Pakistan”,and the idea is to“impose costs” on the behaviour. Whether thatchangesbehaviourornot,butit is important to impose the costs. Continued on Page 15 ■ India mock-drill ready, P19 A FRESH THREAT by US President DonaldTrump on Mondaythat sector-specific tariffs on pharmaceuticals could be announced in the next two weeks hammered the stocks of Indian drug makers onTuesday,but industry executives saw little chance of a quick ordrastic move by Washington. Industrydraws comfortfrom the factthattheUSDepartmentofCommerce (DOC) might take several months to complete its report on import of medicines and submit a final report to the President. The probe, being conducted under Section 232 of theTrade ExpansionAct, coversnationalsecurityimplications. “Thepublicconsultationprocess onthisinvestigationendsonMay7, and the DOC will then study the views. They have 270 days to completethereportandpresentittothe President. We don't see any tariffs before that,” head of a leading pharma association told FE,on condition of anonymity. On April 4, Trump said that he willimpose“never-seen-before”tariffs. This threat had come just two days after he had announced 26% tariffs on Indian exports to the US, barring pharma semiconductors and a few other sectors, as part of near-universal reciprocal tariffs. These imposts are kept in abeyance till June 7,except for China. Anotherpharma industryexecutive,however,saidthatextratariffson medicines might come during 90daypauseperiodforreciprocallevies. LONG ROAD AHEAD PUBLIC SECTOR LENDERS, led by Punjab National Bank (PNB), will soon file a review petition in the SupremeCourtseekingastayonthe implementation of its recent judgment rejecting JSW Steel’s insolvency resolution plan for Bhushan PowerandSteel(BPSL),andordering the latter’s liquidation. “Bankswillfilethereviewpetition aspublicmoneyisinvolved,” asenior official said on Tuesday, requesting not to be identified. The lenders’ decision to lodge a review petition follows a prompt review of the court order by the government. Besides PNB, the Committee of Creditors (CoC) for BPSL insolvency included State Bank of India, Bank of Baroda, Indian Bank, Canara Bank, and Indian Overseas Bank, among others. Both the government and the lendersareactingwithurgencyasthe SC order could potentially have serious financial implications for the publicsectorbanks.Typically,theliquidationresultsinmuchlowerrecoveriesforthelenders,thanresolution. JSW Steel acquired bankrupt BPSL nearly four years ago, via the corporate insolvency route. The National Company Law Appellate Tribunal (NCLAT) had approved the `19,350-crore resolution plan in February 2020. The apex court set aside the plan last week, citing “flagrant violation and contravention” of the provisions of the Insolvency and Bankruptcy Code (IBC) and the ■ Both the govt and the lenders are acting with urgency as the SC order could potentially have serious financial implications for the PSBs ■ The lenders' decision to lodge a review plea follows a prompt review of the court order by the government ■ Typically, the liquidation results in much lower recoveries for the lenders than resolution ■ JSW Steel acquired bankrupt BPSL nearly four years ago, via the corporate insolvency route. The SC set aside the plan last week Corporate Insolvency and Resolution process (CIRP) regulations. While delivering its order, the courtmadesharplycriticalobservations against JSWSteel,CoC and the resolution professional. On Monday, department of financial services (DFS) secretary M Nagaraju said that a review of the order was already undertaken with thelenders,andthatthegovernment would finalise its approach to the judgment soon. Continued on Page 15 Demat account addition at two-year low in April THE CONTINUING FALL in the additions to demat accounts, seen over the past many months, has been attributed to choppy markets and a weak sentiment. InApril, only 2 million accounts were added—the smallest monthly rise in two years. Although the secondary markets rallied inApril, IPO activity was subdued with just one mainboard IPO and four SME IPOs being launched. --Kishor Kadam Demat accounts in million CDSL NSDL Additions Total Nov 3.17 143.25 38.79 182.05 Dec 3.26 146.54 38.77 185.30 Jan 2.83 149.32 38.82 188.14 Feb 2.26 151.24 39.16 190.40 Mar 2.04 152.98 39.45 192.44 Apr 2024 THE SERVICES SECTOR made a strong start to the new financial year, largely driven by a quicker increase in new order inflows in April, according to a survey by HSBC Holdings, reports fe bureau. trade projected to double to nearly ■ India-UK bilateral 2025 Services growth improves in April on new order inflows among two major economies as tariff tensions linger The benefit for Indian industry will be substantial in chemicals, textiles and clothing, leather & footwear 2.01 154.70 39.75 194.45 Source: CDSL, NSDL Continued on Page 15 Pune-based company’s market share at 30-month low inApril, also loses No. 2 spot in bike sales Bajajmarketshareslips,hitbytwinblows;Hondagains SWARAJ BAGGONKAR Mumbai, May 6 BAJAJAUTOFACEDadoublesetback inApril.Not onlydid its retail market share in the domestic two-wheeler segment slide to a 30-month low,it also lost its position as the country's second-largestmotorcyclemanufacturer to Honda Motorcycle and ScooterIndia(HMSI). The Pune-based company’s market share slipped to 10.85% in April, the lowest since October2022,when itwasashadehigherat9.98%,vehicle registrationdatafromtheFederation of Automobile Dealer Associations (FADA), show. The decline comes amidst rising competition from HMSI and TVS, both of which have strengthened their market presence throughrefreshedproductportfolios. NEW ORDER Market share in % 2025 Jan Feb Mar Motorcycle sales (in million) 2022-23 2024-25 Source: FADA Hero MotoCorp Apr Hero MotoCorp Honda Honda BajajAuto’sstrategicabsencefrom the petrol scooter segment, which nowaccountsformorethanathirdof thetwo-wheelermarket,hasweighed heavilyonitsdomesticperformance. The company only operates in the 11.4 11.4 11.4 10.9 MID-CAP IT SERVICES firm, Coforge, is projecting strong growth in FY26, buoyed by a steady pipeline of large deals and rising demand for AI-driven solutions, even as global macroeconomic and tariff-related challenges persist, reports Padmini Dhruvaraj. ■ PAGE 4 THREE CHEERS 18.8 18.7 17.5 18.3 Coforge expects strong FY26 growth despite headwinds ● First such pact 24.4 GLOBALRATING AGENCY Moody’s on Tuesday lowered India’s GDPestimates to 6.3% from 6.5% for 2025, citing a global economic slowdown caused by heightened US policy uncertainty and trade restrictions, reports fe Bureau. Moody’s also said factors like the ongoing IndiaPakistan tensions will also have a potential downside risk to its baseline growth forecasts. ■ PAGE 2 India-UK FTAa done deal 24.3 25.4 24.1 Moody's cuts India's GDP growth forecast for 2025 to 6.3% Lenders to file review plea in Bhushan case NEWDELHI GETS DUTY-FREEACCESSTO 99% OFMERCHANDISE SHIPMENTS 26.9 28.5 28.8 30.3 IN THE NEWS *Prv close TVS Motor Bajaj Auto TVS Motor Bajaj Auto motorcyclesandelectricscooterssegments.Itspeers,ontheotherhand,are strong players in both the petrol scootersandmotorcycles. Scooters made up for 35% of the two-wheelermarketinFY25,upfrom 4.79 5.21 1.6 2.48 0.91 1.2 1.76 2.03 Source: SIAM; Domestic sales 32% in FY24,buoyed by strong performances from Honda’s Activa and TVS’s new Jupiter. Honda and TVS togetherdominatethissegmentwith a68%share. Total scooter volumes touched 6.85millionunitsinFY25,a17%rise over the previous year. In contrast, motorcycle sales grew by just 5% to 12.25 million units,as per data from the Society of Indian Automobile Manufacturers(SIAM). Whilethemotorcyclecategorydid grow,Bajaj Auto failed to keep pace. Analysts attribute this to under-performance in its entry-level and sub200cc premium segments.Honda’s Shine range,especially the Shine SP and Shine 100,gained considerable ground,helpingHMSIedgepastBajaj to become the country's secondlargestmotorcyclemakerinFY25. Analysts at Motilal Oswal noted that Bajaj’s overall two-wheeler growthduringtheMarchquarterwas drivenentirelybyexports,whichrose 19%year-on-year.Domesticsales,on theotherhand,fellby7%. Exports now contribute 45% to Bajaj Auto’s total volumes; they hit 1.67 million units in FY25, a 13% jump over FY24. The company remains the country's largest twowheelerexporter,followedbyTVS. Over the past fewyears,Bajaj has increasingly pivoted to exports,electric vehicles, and partnerships with globalbrandslikeKTMandTriumph. In the domestic electric two-wheeler market,its Chetak continues to rank amongthetopthreesellers. India’s two-wheeler market grew 9% in FY25 to 19.6 million units.If salesinFY26hitthetopendofgrowth estimates, projected at between 69%,theindustrycouldsurpassitspreviousrecordof21.17millionunits,set inFY19. Continued on Page 15 Ahmedabad