BRANDWAGON | PAGE 9 MARKETS | PAGE 7 Paytm, founder settle ESOPcasewith Sebi INTERNATIONAL | PAGE 10 New stars take guard on turning IPLad turf BillGatestogiveaway 99%ofwealthby2045 NEW DELHI, FRIDAY, MAY 9, 2025 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM VOL. L1 NO. 58, 34 PAGES, `12 (PATNA & RAIPUR `12, SRINAGAR `15) 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 READ TO LEAD SENSEX: 80,334.81 ▼ 411.97 NIFTY: 24,273.80 ▼ 140.60 NIKKEI 225: 36,928.63 ▲ 148.97 HANG SENG: 22,775.92 ▲ 84.04 `/$: 85.72 ▼ 0.89 `/€: 96.74 ▼ 0.40 BRENT: $62.08 ▲ $0.96 GOLD: `96,664 ▼ `528 RBI relaxes norms for FPI investments in corp debt securities THE RESERVE BANK on Thursday relaxed norms for investments by foreign portfolio investors in corporate debt securities through the general route by withdrawing certain requirements, reports PTI. At present, investments by FPIs in corporate debt securities through the general route are subject to the short-term investment and concentration limit.■ PAGE 7 Govt targets fresh record for grains output in 2025-26 GIVEN THE FORECAST of 'above normal' monsoon rainfall, the government has set a record target of 354.64 million tonne (MT) for food grains production in the 2025-26 crop year (July-June), reports Sandip Das. This is an increase of 4% from the target for the current (2024-25) crop year, which itself is an all-time high. ■ PAGE 2 With DoTapproval, Starlink set to begin infra investments RESULTS CORNER ASIAN PAINTS PROFIT IN Q4 FALLS 45% PAGE 4 L&TTOPS ESTIMATES; POSTS 25% JUMP IN PROFIT PAGE 4 TITAN NET PROFIT UP 13%; REVENUE RISES 19% PAGE 6 FE S P E C I A L ● BLACKOUT IN JAMMU; BORDER DISTRICTS ON HIGH ALERT The NSE has set the per second threshold for retail algo trading orders at 10 ■ EXPLAINER, P9 INDIAN MILITARY ASSETS THREAT, INDIA RESPONDS USurgesde-escalation intalkswithIndia,Pak SHUBHAJIT ROY, AMRITA NAYAK DUTTA & ARUN SHARMA New Delhi/Jammu, May 8 SHARPLYESCALATINGTENSIONS betweenthetwocountries,Pakistan launched missiles and drones in the early hours of Thursday to try and target 15 Indian military installations in the northern and western sectors, from Srinagar to Bhuj, and theIndianarmedforcesretaliatedby targeting“airdefenceradarsandsystemsatanumberoflocationsinPakistan” and “neutralised” an air defence system in Lahore. Hours later, missiles from Pakistan were directed at Jammu’s Satwari, Samba, RS Pura and Arnia towns,defence sources said,adding that all were intercepted or blocked byairdefence units. From late Wednesday evening, Jammuwitnessedacompleteblackout,withreportsofcitizenswitnessing missile streaks in the sky. “Complete blackout in Jammu. Loud explosions — bombing, shelling,ormissilestrikessuspected. Fret not — MataVishnu Devi iswith us, and so are valiant Indian Armed Forces,”saidSheshPaulVaid,former director general of police, Jammu and Kashmir. Localsalsosaidtheyheardsirens at multiple places. According to sources, the Jammu airport appeared to be a target. In an advisory,the Jammu police askedcitizens“toswitchoffalltypes oflightsduringtheblackoutperiod” and to “stay indoors at safe places.” “No unnecessary vehicular movement should be taken,”theysaid. In Srinagar, the airport was put onhighalertandthedefencesystem readied. A little before 10 pm, the state capital also witnessed a blackout. Blackouts were seen in several districts of Punjab and Rajasthan too. In Punjab, instructions were issued in Amritsar, Jalandhar, Gurdaspur, Tarn Taran, Hoshiarpur, Pathankot, Ferozepur, Fazilka and Chandigarh. AGENCIES Washington, May 8 The Himachal Pradesh Cricket Association’s Dharamsala stadium plunged into darkness as an IPL match between Punjab Kings and Delhi Capitals was abandoned due to security reasons on Thursday VIX rises most in a month INDICES FELL UP to 2% on Thursday as investors took money off the table amid fears of a major conflict between India and Pakistan, reports Kishor Kadam. However, it recouped most of the losses to close at slightly over 0.5%. Market volatility, as measured by the India VIX Index, surged 10.21% to 21.01 — the sharpest rise in a month. ■ FULL REPORT, PAGE 7 Sensex intraday May, 8 80,912.34 4 Open 21.01 Close 10.21 % 80,746.78 Previous close: 0.51 % 80,334.81 19.06 Close ANI Rajnathtells Oppn:100 killed,many keyterrorists HARDCORE TERRORISTS were among at least 100 killed in strikes carried out by the armed forces on terror camps inside Pakistan and Pakistan Occupied Kashmir, defence minister Rajnath Singh is learnt to have told an all-party meeting Thursday even as he underlined that the “intended objectives” of Operation Sindoor had been achieved,report Manoj C G & Liz Mathew. Singh is learnt to have also said at the meeting that while India had no plans to escalate the tension, if there was any move from Pakistan,“Wewill give a befitting reply.” India VIX Index Open Continued on Page 16 ■ FULL REPORT, PAGE 18 UKFTAhasenoughsafeguards,saysgovt ● Bilateraldealtogoon streamin2026only MUKESH JAGOTA New Delhi, May 8 Retail algo trading made simpler & safer ● PAK MISSILES, DRONES TARGET 15 ● KEY INSTALLATIONS UNDER « FOLLOWING THE RECEIPT of a letter of intent (LoI) from the department of telecommunications (DoT), SpaceX, the parent company of satellite Internet provider Starlink, will start the process of making investments in the satellite communication (satcom) infrastructure, sources familiar with the matter said, reports Urvi Malvania. ■ PAGE 4 Indo-Pak hostilities escalate « IN THE NEWS INDIA’S FREE TRADE Agreement (FTA)with the UKhas sufficient safeguards for sensitive sectors,a senior officialsaidThursday.Eveninthecase of automobiles,the tariff cuts will be spread over a period of 10-15 years and subject to quotas like an annual 22,000 for electric vehicles,the personadded. Onsensitiveagricultureproducts like dairy,apples,oats and edible oils and industrial items like precious CHECKS & BALANCES ■ In the case of automobiles, the tariff cuts will be spread over a period of 10-15 years ■ For whisky and gin - On medical devices, cuts will start from the sixth year of FTA ■ sensitive sector for the past many years tariffs will be halved to 75% before nil in the next ten years ■ The govt has discounted fears that these products from the UK would flood the market metals, smartphones and optical fibres,therewillbenocutsoffered,the officialsaid. On medical devices - the sector that is covered under the Production Linked Incentive (PLI) scheme - the dutycutswillstartonlyfromthesixth yearoftheFTA.EvenwhenPLIrunsits courseandthedutieswouldnothave droppedtozero. For whisky and gin - which has been a sensitive sector for the past manyyears - tariffs will be halved to 75% before reducing to zero in the nexttenyears.Theofficialdiscounted fearsthattheseproductsfromtheUK would flood the market. India's importsofalcoholicbeveragesisjust$ 400-500millionatpresent,whichare lowcomparedtototalmarket. The text of the FTA - which was concludedonTuesday-willtakesome more time to be ready for signing. Three months will be required for legalscrubbing(vettingbylawyers)of the text which will be done jointly, anotherofficialsaid. Continued on Page 6 Rural consumption rises four times faster than urban demand but moderates sequentially FMCGQ4salesup11%,smallplayersshine 6.5 10.2 11 Jan-Mar Oct-Dec Jan-Mar 2024 2025 Oct-Dec 2024 Jan-Mar 2025 5.3 7.2 4.2 9.2 2.6 8.4 Source: NielsenIQ; U+R = Urban+Rural markets; Value growth = Volume+Price growth when they grew 7.2% y-o-y. Despite the mixed picture, the rural catchment continues to be the chief engine of growth for the consumer staples space, Roosevelt D'Souza,Head --customer success, FMCG, Nielsen IQ said. D’Souza pointed out that urban demand had further decelerated in the January-March period both annually -3.3 -1.1 6.2 7.2 Modern trade v/s traditional trade (Volume growth in %) Jan-Mar Oct-Dec Jan-Mar TT MT 2024 2025 5.0 15.4 Urban v/s Rural (Volume growth in %) Urban Rural Jan-Mar 2024 5.1 5.9 6.3 3.9 FMCG growth (figures in %, U+R) Volume Price Value 6.1 INDIA’S FAST-MOVING CONSUMER goods (FMCG) market grew by 11% year-on-year between January and March 2025, driven by small packs and rural consumption, Nielsen IQ said on Thursday. While volumes increased by 5.1%, the price-led growth was 5.9%. At the same time, the market researcher flagged mixed consumption signals. Rural demand for instance, was up four times faster the urban demand during this period. Urban sales contribute twothirds of total FMCG sales, with rural markets bringing in the rest. However,rural sales moderated sequentially rising just 8.4% in Q4FY25 versus 9.2% in the December,2024 quarter.That said, the performancewas betterthan in the January-March period of 2024, RURAL RISES 0.4 VIVEAT SUSAN PINTO Mumbai, May 8 Food v/s Non-food (Volume growth in %) Food HPC OTC 6 7.3 2.5 Oct-Dec 2024 4.4 10.8 4.1 Jan-Mar 2024 4.9 5.7 3.3 Jan-Mar 2025 and sequentially. "Rural markets continue to drive growth while urban metros continue to see a shift towards ecommerce with higher shopper engagement.Consumption is likely to pick up in the coming quarters going by the favourable monsoon forecast and revised tax slabs," D'Souza said. Indeed,at just 2.6%y-o-yin the March quarter, urban volumes grew at half of the levels reported a year ago (5.3%) and significantly below the 4.2% reported in the December, 2024 quarter, the research agency said. It pointed to the stress that urban consumers continue to feel, a point that has been highlighted by most top FMCG managements in recent months. Most firms are counting on a revival in consumption from theApril quarteronwards as the fiscal stimulus measures announced by the government begin to take effect. In the meanwhile,small brands are taking advantage of tighter consumerbudgets,pitching themselves as alternatives to big names. NielsenIQ said these small players reported the highest FMCG growth at 17.8% year-on-year in the March quarter. Again, mid-sized players grew14.6%versus lastyear in the quarter under review. Small and mid-sized players make up 35% of the `5-lakh crore domestic FMCG market. A low base, rural growth and easing inflation are helping them outpace the biggerfirms,NielsenIQ said. Continued on Page 6 SECRETARYOFSTATEMarcoRubio urged de-escalation and expressed support for direct dialogue in separatecallswithexternalaffairsminister S Jaishankar and Pakistani Prime MinisterShehbazSharifonThursday, US State Department spokesperson TammyBruce said. Rubio, in both phone calls that took place"emphasised the need for immediatede-escalation,"Brucesaid in readouts of the calls. "He expressed US support for direct dialogue between India and Pakistan and encouraged continued effortstoimprovecommunications," Bruce said. In a post on X, Jaishankar said, "Spoke with US secretary Rubio this evening.Deeply appreciate US commitment to work with India in the fight against terrorism. Underlined India's targeted and measured response to cross-border terrorism. Will firmly counter any attempts at escalation,"he said. InhiscallwithSharif,Rubioagain emphasised the need for immediate de-escalation.He expressed US support for direct dialogue between India and Pakistan and encouraged continued efforts to improve communications. “The secretary expressed sorrow forthereportedlossofcivilianlivesin thecurrentconflict.Hereiteratedhis calls for Pakistan to take concrete steps to end anysupport forterrorist groups,” the statement said. President Donald Trump has said he hopes the tit-for-tat strikes will stop and said he was willing to help, but Washington has not offered to formallymediate to quell the tensions. Showing the delicate balancing act of Rubio's diplomacy, the two State Department spokespersons' readouts,sentoutwithinaminuteof each other, also included tailored messages foreachside. RIL exits trademark bid for Operation Sindoor FE BUREAU New Delhi, May 8 RIL ON THURSDAY said that it has retracted its trademark application for the term Operation Sindoor, the codename for India’s military response to the recent Pakistan-backed Pahalgam terror attack. The company clarified that the application was mistakenly submitted by a junior employee without the necessary approvals. The move came after public records showed that Reliance was among four entities that filed for a trademark under Class 41 of the 3 OTHERS IN FRAY ■ The bid for ■ Besides Reliance, there are three other applicants for the trademark phrase Operation Sindoor was made under entertainment and media services, including film production etc Nice Classification on May 7. Continued on Page 16 Mergerof state-run general insurers back on the table PRASANTA SAHU New Delhi, May 8 THE GOVERNMENT IS likely to revisit a plan to merge the four state-run general insurance companies to create a a behemoth that can compete with the Indian private-sector firms as well as foreign insurers. The move may coincide with or closely follow the proposed hike in foreign direct investment (FDI) limit for the insurance sector from 74% now to 100%, which may materialise in the upcoming session of Parliament, sources told FE. Of the four general insurers, New India Assurance Company (NIAC) is listed, while Oriental Insurance Company (OIC), National Insurance Company (NIC) and United India Insurance Company (UIIC) are not. “The discussions on the merger of the public-sector general insurance companies (PSGICs) are gaining pace,” an official said. The Centre is keen to create a general insurance major on the lines of Life Insurance Corporation (LIC) in the life insurance space. The market share of state-run non-life insurers declined to 34.6% in FY25 from 39% in FY23, reflecting the growth differential between the public and private sector firms. LIC, with a market share of 57% in premium receipts, is the largest life insurer in India. A merger of state-run general insurers would give the amalgamated entity the highest market share in the non-life space. New Delhi INSURANCE GIANT ■ The merger will create a a behemoth that can compete with the Indian private-sector firms ■ Oriental Insurance, National Insurance and United India are others ■ Of the four insurers, only New India Assurance Company (NIAC) is listed ■ It is also the largest among them and has been making profits regularly NIAC, the largest among state-run non-life insurers, has been making profits regularly. The other three have historically made losses, but have lately begun to make profits. While OIC and NIC started posting quarterly profits from Q4 of FY24 and Q2 of FY25, respectively, UIIC posted a profit in Q3 of FY25 after a gap of 7 years. Besides facing rising competition from the private sector, a bigger state-run general insurer would also help the government's mission of “insurance for all” by 2047, the 100th year of independence, sources said. Continued on Page 6