BACK PAGE | PAGE 18 COMPANIES | PAGE 4 TheAbbys:Enormousbags bestcreativeagencyaward INTERNATIONAL | PAGE 7 Deeptechstartups'troubles rundeeperthanfundwoes HYDERABAD, SATURDAY, MAY 24, 2025 Amid 'Jensanity', Nvidia plans to keepAI crown FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. NO. XXII 19, 24 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: 81,721.06 ▲ 769.07 NIFTY: 24,853.15 ▲ 243.45 NIKKEI 225: 37,160.47 ▲ 174.60 HANG SENG: 23,601.26 ▲ 56.95 `/$: 85.21 ▲ 0.74 `/€: 96.72 ▲ 0.40 BRENT: $64.79 ▲ $0.35 GOLD: `95,213 ▼ `182 Zepto halts ops in over 40 cafes amid supply chain woes QUICK COMMERCE PLAYER Zepto has temporarily shut operations in 44 Zepto cafes in North India, including Delhi, Agra, and Chandigarh, due to supply issues, according to sources, reports Raghav Aggarwal. ■ PAGE 4 Forex reserves fall by $4.9 bn to five-week low of $685.73 bn The shares you hold can get you a loan It’s cheaper than a credit card or a personal loan ■ PERSONAL FINANCE, P9 Budget (Budget estimate). The instant record transfer is despite the RBI board having approved a revised Economic Capital Framework (ECF) in 39.7 2,10,873 2,68,590 46.1 (RBI’s accounting year changed to April-March from 2021-22, from July-June EDIT: FISCAL BONANZA PAGE 8 its meeting held on May 15, 2025, which allowed it to keep higher risk capital (realised equity). This was enabled by the RBI's balance sheet growing 6.7% Source: RBI to `75.4 lakh crore in 2024-25. Apart form interest receipts, substantial net gains were made in the year by selling large chunks of dollars to defend the falling rupee. Continued on Page 6 TrumpthreatensnewiPhone,EUtariffs AKASH SRIRAM May 23 BACK & FORTH US PRESIDENT DONALD Trump cranked up his trade threats on Friday, targeting both smartphone giant Apple along with imports from the entire European Union, sending the global market roiling after weeks of de-escalation provided some reprieve. Trump threatened to impose a 25% tariff on Apple for any iPhones sold, but not manufactured, in the United States. More than 60 million phones are sold in the United States annually,but the country has no smartphone manufacturing. He also said he would recommend a 50% tariff on the European Union to begin on June ■ Trump said he would recommend a 50% tariff on the EU to begin on June 1 ■ More than 60 million phones are sold in the United States annually, but the country has no smartphone manufacturing DONALD TRUMP, PRESIDENT, US ■ He threatened to impose a 25% tariff on non-US made iPhones I have long ago informed Tim Cook that I expect their iPhones that will be sold in US will be manufactured and built in US, not India, or anyplace else 1,which would result in stiff levies on luxury items, pharmaceuticals and othergoods produced byEuro- pean manufacturers. S&P 500 futures lost 1.5% in premarket activity and the Eurostoxx 600 fell 2%. Shares of Apple fell 3.5% in premarket trading,alongwith shares of othertechnology bellwethers. Trump did not give a timeframe for his warning to Apple. Trump roiled markets in early April after imposing tariffs on almost every inhabited locale around the world. That included a tax of about 145% on imported goods from China. Investors responded by furiously selling US assets, as the levies caused them to question the safe-haven status that America has long enjoyed, and while markets haverecovered,business and consumer confidence has plunged in the United States. Continued on Page 5 Firmsoptforsmaller IPOsinvolatilemkt ● WORK IN PROGRESS ANANYA GROVER Mumbai, May 23 Commerce and industry minister Piyush Goyal met US commerce secretary Howard Lutnick Thursday night in Washington as both sides further intensified efforts to agree to the first tranche of bilateral trade agreement before the autumn deadline ■ PAGE 2 AFTER TWO MONTHS of muted activity, some amount of buzz is returning to the primary market. However, owing to thevolatilitydue toUSPresidentDonaldTrump’stariffthreatsfollowedbyIndia-Pakistan conflict,most companies are opting for smaller-sized IPOs.Those issues which were filed before the current downturn began are also being trimmed to smallersizes. Of the seven issues announced in the current fiscal,four including Ather Energy, Aegis Vopak Terminals, Schloss Bangalore and Scoda Tubes have lowered the issue size by 15-30% from what they had planned at the time of filing the DRHP with the Securities and Exchange Board of India (Sebi). Experts believe this trend is likely to continue after the previous fiscal’s TOP LOSERS (weekly, %) CUT TO SIZE ■ Some companies have lowered the size by 15-30% from what they indicated in the DRHP ■ In FY25, 78 mainboard issues raised an all-time high of `1.62L cr ■ Data show 66 firms have valid Sebi approval as of May 16 while 70 are in queue euphoria as demand has rationalised andinvestorsarestillwaitingforclarityonbothfromtheUStarifffrontand India-Pakistantension. Continued on Page 5 82,330 May 19 82,059 59 -0.74% May 23 May 21 81,721 81,596 May 20 May 22 81,186 80,951 MCAP GAIN/LOSS (` cr) Tech Mahindra EXTRA FISCAL SPACE FOR CENTRE PAGE2 21.8 SENSEX EX May 16 May 19 -5,64,595 May 21 3,15,669 May 22 -2,20,888 May 23 (Between May 16 and May 23) 83,025 May 20 -2.20 87,416 Sun Pharma »INSIDE« JSW Steel posts 16% rise in Q4 profit PAGE 4 ■ MOTOBAHN, P9 10.6 FY26 * For FY20, as on June; rest as on March 27.1 30,307 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY25 Ashok Leyland net up 38% on robust sales PAGE 4 Driving the new Kia Carens Clavis to some unexplored places north of Bengaluru. 99,122 FY22 FY25 RESULTS CORNER A queen’s temple and a rebel’s fort 571,907 458,101 THE RESERVE BANK of India (RBI) on Friday decided to transfer `2.69 lakh crore as surplus to the Union government for the accounting year 2024-25, an alltime high amount, and up 27% on year. The latest dividend from the central bank was lower than recent market expectations which hovered around `3-3.5 lakh crore, but came in at least `40,000-50,000 crore higher than what was apparently projected in the Budget for 2025-26. This time around, the RBI's transfer will also be at the highest level as a fraction of the government's non-tax revenue,at 46.1% (see chart), and accounts for 5.29% of the size of the Union 27.5 57,127 FY21 INDIA'S FOREIGN EXCHANGE reserves fell by $4.9 billion to a five-week low of $685.73 billion as of May 16, according to data released by the Reserve Bank of India on Friday, reports Reuters. PAGE 6 FE S P E C I A L S 7.5 -2.98 6.5 Eternal 6 -3.38 5.5 M&M 5.5 -3.90 THE RUPEE ROSE sharply on Friday to post its best singleday gain in more than two years as worries over US fiscal health and the impact of trade tariffs continued to weigh on the dollar, sparking a rally in emerging market currencies, reports Reuters. It ended the session at 85.2125 against the dollar. ■ PAGE 6 5.5 MAHESH NAYAK Mumbai, May 23 RBI surplus transfers to the Centre ` crore As % of Centre's non-tax revenue in the subsequent year Benchmark indices rebounded by up to 1% on Friday, supported by short covering, reports Kishor Kadam. However, they ended the week on a negative note, with the Sensex and Nifty declining 0.74% and 0.67%, respectively, amid extreme volatility driven by concerns over the US economy that weighed on investor sentiment. Investors gained `2.91 lakh crore in market capitalisation on Friday, while the overall weekly loss stood at `95,659 crore. Maruti Suzuki Rupee soars 74 paise to post best day in over two years Available Realised Equity As % of RBI balance sheet ` crore Markets end lower in up and down week -4.17 THE COMPETITION COMMISSION of India (CCI) found that global ad agencies breached laws by coordinating on commissions they charge advertisers, prompting the watchdog's raids on advertising and media companies in March, according to a document, reports Reuters. ■ PAGE 18 RECORD HIGH BUT SHORT OF EXPECTATIONS marginal impact on bond yields 380,685 CCI found global ad agencies colluded on fees, paper shows ● Analysts see 340,467 INDIAWILL MAKE a strong case with FATF to revert Pakistan to its "grey list" for failure to comply with anti-money laundering and terror financing rules, a government source said, reports PTI. ■ PAGE 2 `2.69L-crRBIdividendforgovt 313,922 India prepares dossier to push Pakistan back on FATF 'grey list' CONTINGENTRISK BUFFERWIDENEDTO 4.5-7.5% 293,414 IN THE NEWS 2,91,130 GST meet to take up compensation cess,slab rejig PRASANTA SAHU New Delhi, May 23 THE GOODS AND Services Tax (GST) Council will meet soon with a heavy agenda.According to an official source, the Centre-state council will discuss the much-awaited rate rationalisation, simplification and the future of compensation cess. “There are three orfourdifferent aspects relating to making GSTsimpler.Wewilltakeuptheissueofcompensation cess, rate rationalisation and simplification,”a source said. The Council, chaired by finance minister Nirmala Sitharaman, will examine the group of ministers’ (GoM) report on rate rationalisation to give further relief to people through rate reductions and rejig of the number of slabs. The GoM, headed byBihardeputychief ministerSamratChaudhary,submittedits report in December2024. While there is no word yet on the meeting date, it could be scheduled in June-July. On the tablewould be a proposal to reduce the health and life insurance tax rate to 5% from 18% while retaining the input tax credit. Whileaspertherules,thecouncil has to meet quarterly, the meeting hasbeendelayedasthegovernment was busy with Budget and later in OperationSindoor.Thelastmeeting was in December2024. Currently, there are four major GST slabs – 5%, 12%, 18% and 28%.The Central Board of Indirect Taxes & Customs (CBIC) was assessing the feasibility of the GST slab rejig by merging 12% and SIMPLIFYING GST ■ The GST Council will examine report on rate rationalisation ■ While there is no word yet on the meeting date, it could be scheduled in June-July ■ On the table would be a proposal to reduce the health and life insurance tax rate to 5% ■ Currently, there are four major GST slabs – 5%, 12%, 18% and 28% ■ There is a proposal to merge 12% & 18% slab into one slab 18% to a single rate of 14% or 15% or 16% with revenue implications in each scenario. TheGoMonCompensationCess, headed by minister of state for financePankajChaudhary,islooking intothefutureofcompensationcess beyond March 2026. As of now, the cess is being levied on luxury and sin goods but is being utilised only for paying back loans taken during Covid to make good the loss to states in guaranteed GST revenues. Continued on Page 5 Massachusetts Judge blocksTrump’s order to revoke university’s ability to enrol foreign students UScourthaltsmovetoputtheHarvarddreamonhold VIDHEESHA KUNTAMALLA New Delhi, May 23 AROUND 2 AM on Thursday night,a 24-year-old Delhi-based policy consultant,recentlyadmittedtoHarvard University,unlockedhisphonetofind a flurry of WhatsApp messages.“My phonewasbombardedwithmessages about the US Department of HomelandSecurity(DHS)notifyingHarvard thatitcannotadmitanyinternational students forthe upcoming academic year.I was heartbroken.I don’t know whattodo.” The student, admitted to Harvard’sMaster’sinPublicPolicyforFall 2025, had been celebrating with friends just hours earlier. Now, his dreamfeltsuddenlysuspended.“Harvard is my dream school.I spent the VARSITY BACKS STUDENTS ■ The decision has an immediate effect on more than 7,000 ■ The US administration has framed the decision as a response to what it called a “hostile” campus climate for Jewish students ■ The university said “without its international students, Harvard is not Harvard" ■ The university responded by filing a motion in court for a temporary restraining order ■ Students already enrolled at Harvard, meanwhile, are watching the unfolding crisis on campus with fear international students on the Harvard campus of whom almost 800 are Indians last fouryears preparing to get in,” he said.“I also got a scholarship from a schoolinChicagobutIchoseHarvard becausethatwasthedream.” This moment of rupture came after DHS revoked Harvard’s certification under the Student and ExchangeVisitorProgramme(SEVP), effectivelystrippingtheuniversityof its legal ability to host international students. On Friday,a federal district court in Massachusetts granted Harvard a temporaryrestrainingorder,offering short-term relief and allowing the universitytoretainaccesstotheSEVIS system — for now. The restraining order does not resolve the broader dispute between Harvard and the US government, and students say the anxiety has not eased.The decision hasanimmediateeffectonmorethan 7,000 international students on the Harvardcampusofwhomalmost800 are Indians, all of whom must now explore urgent“transfer”options or riskfallingoutoflegalstatusintheUS. TheUSadministrationhasframed the decision as a response to what it called a“hostile”campus climate for Jewish students and the university’s refusal to comply with requests for surveillance footage and disciplinary HYDERABAD records of foreign students tied to protest activity.Harvard now has 72 hours to comply or face long-term exclusionfromthefederalsystem. The university has denied these allegationsandrespondedonFriday byfiling a motion in court fora temporary restraining order. In a statement, it said: “Without its international students, Harvard is not Harvard.Yesterday, the federal government announced that it has revoked Harvard’s certification undertheStudentandExchangeVisitor Programme and stripped the universityofitsauthoritytosponsor F- and J- visas for international students and scholars for the 2025–26 academicyear. Continued on Page 6