COMPANIES | PAGE 4 MARKETS | PAGE 6 SEC’snewearningsproposal sparkstransparencydebate INTERNATIONAL | PAGE 9 Maruti,VinFast speed up EVmarket expansion Huaweitoutschipmilestone toshortengapwithTSMC KOLKATA, TUESDAY, MAY 26, 2026 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL 35 NO. 174, 32 PAGES, `12 (NORTH EAST STATES `12 & ANDAMAN `20) 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 A TA , 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: 76,488.96 ▲ 1,073.61 NIFTY: 24,031.70 ▲ 312.40 NIKKEI 225: 65,158.19 ▲ 1,819.12 HANG SENG: 25,606.03 ▲ 219.51 `/$: 95.24 ▲ 0.47 `/€: 110.86 ▲ 0.19 BRENT: $98.23 ▼ $5.31 GOLD: `1,58,152 ▲ `603 IN THE NEWS ECONOMY PAGE 2 NEW IIP SERIES TO COVER RARE EARTH AND GAS THE NEW SERIES of the Index of Industrial Production (IIP) is set to substantially expand the coverage by incorporating minor and rare earth minerals, gas supply, water supply, sewerage, and waste management sectors, according to the government, reports Kuldeep Singh. ECONOMY PAGE 10 AMID WESTASIA CRISIS, QUAD TO MEETTODAY THE ECONOMIC FALLOUT of the West Asia crisis, the prevailing security situation in the IndoPacific and ways to boost ties in critical minerals and technology are expected to top the agenda at a crucial meeting of the Quad foreign ministers — being hosted by India — on Tuesday, reports PTI. ‘DECADEAHEADWON’TBE EASY’ Fuel, fertiliser, forex biggest risks, says FM FE BUREAU New Delhi, May 25 medium enterprises (MSMEs), safeguarding exporters, and maintaining supply chains as FINANCE MINISTER NIR- the global energy crisis deepMALA Sitharaman on Monday ens following disruptions in flagged fuel, fertiliser and for- the Gulf region. eign exchange — the“3Fs”—as At another event later, the biggest economic Sitharaman said the »INSIDE« challenges con“decade ahead will not fronting India amid be easy,”with geopolitFM: MAJOR the prolonged West OPPORTUNITY ical tensions causing Asia conflict, while FOR TEXTILES supply chain disrupPAGE 2 asserting that the tionsandrapidtechnodomestic economy logical advances conremains resilient despite tinuing to reshape labour external shocks. She under- markets.“But crises, as Prime scored Prime Minister Naren- Minister Modi often reminds dra Modi’s appeal to conserve us,are also opportunities,”she foreign exchange as faras pos- asserted. sible as“very important.” “We should please underSpeaking at a Small Indus- stand the context of these 3Fs tries Development Bank of — fuel, fertiliser, and foreign India (Sidbi) event in Mumbai, exchange,” Sitharaman said at Sitharaman said the govern- the first event, elaborating on ment’s response has focused the formulation. on protecting citizens, supporting micro, small and Continued on Page 10 NIRMALA SITHARAMAN, FM For businesses and common people, it (West Asia crisis) can mean higher fuel cost, delayed cargo, costlier shipping, shortage of inputs, pressure on working capital and uncertainty in export orders » INSIDE « ONGCTAPS BPFORWIDER OFFSHORE OUTPUTGROWTH PAGE 3 CRISILUPGRADESVODAIDEA RATINGTO 'A-/STABLE' PAGE 4 India, Korea start 12th round of talks on CEPA upgrade INDIAAND SOUTH Korea on Monday started negotiations to upgrade their existing Comprehensive Economic Partnership Agreement, reports fe Bureau. The two nations might also agree to negotiate a fresh trade pact superseding the existing one. The talks will continue until May 27. ■ PAGE 2 NTA has not learnt its lessons: SC on NEET paper leak THE SUPREME COURT on Monday said it was sad that NTA has not learn lessons from the earlier NEET paper leak as it sought response from the Centre, NTA and CBI on pleas for replacement of the testing agency with a robust and autonomous body to conduct the entrance exam, reports PTI. ■ PAGE 20 US-Iran peace hopes bring back the bulls ● Indices rallyover 1%,m-cap swells `5.86 lakh crore SENSEX 1.42% Intra-day, May 25 KUSHAN SHAH Mumbai, May 25 EQUITY MARKETS GAINED sharplyon Mondayas hopes of a US-Iran peace deal pushed crude oil prices lower,boosting investor sentiment. Benchmark indices, the Sensex and the Nifty, rose 1,074 points (1.42%) and 312 points (1.32%),respectively. The rally extended to the broader market as well. The BSE MidCap index gained 386 points (0.83%) to close at 46,992.18, while the BSE SmallCap index advanced 696 points (1.33%) to 53,095.80. Market breadth remained positive for a fifth consecutive session, with 2,785 stocks advancing against 1,535 declining, translating into an advance-decline ratio of 1.81. Investor wealth increased by `5.86 lakh crore during the session. Both foreign portfolio Oil slides to 2-week low CHEER ON STREET 76,488.96 Close TOP SECTORAL GAINERS (% gain) 2.96 2.06 7 75,415.35 investors (FPIs) and domestic institutional investors (DIIs) were net buyers. FPIs purchased equities worth `822 crore on a net basis,while DIIs bought shares worth`3,857 crore,according to BSE data. Vinod Nair, head of research at Geojit Investments, said markets gained momentum on expectations 1.76 Financial services PSBs Pr Previous close 1.89 Telecom Auto of a US-Iran deal, though global sentiment remains uncertain given the rapidly changing geopolitical situation. He attributed the rally in large-cap stocks to attractive valuations relative to longterm averages, while financial stocks benefited from strong fourth-quarter earnings. Vikram Kasat,head of advi- 1.54 Utilities sory at PL Capital,said gains in financials,oil marketing companies,automobile stocks and other interest rate-sensitive sectors lifted market sentiment. A stronger rupee, supportive global cues and expectations of policy stability also aided the rally,he added. Continued on Page 10 OIL PRICES FELL about 5% to two-week lows on Monday as optimism grewthat the United States and Iran were moving closertoapeacedealthatwould reopen the Strait of Hormuz, even though Washington and Tehran played down hopes for an imminent breakthrough. Brent crude futures were down $4.97, or 4.8%, at $98.57 a barrel at 15:19 GMT (20:49 Indian Standard Time) and USWestTexas Intermediate futures were down $4.85, or 5%, at $91.75. Both contracts traded at their lowest since May 7. “Even though it’s not done, there seems to be some hope thatwewill start to get some oil moving through the Strait of Hormuz,”said Phil Flynn, senior analyst with Price Futures Group. Even if a peace deal is reached,analysts expect a return to normal oil flows through the Strait will take months, while damaged oil and gas facilities are repaired. —REUTERS ATrump twist to Iran deal ● US prez links AbrahamAccords to any peace pact DOINA CHIACU & HUMEYRA PAMUK Washington, May 25 US PRESIDENT DONALD Trump said on Mondaythat he asked SaudiArabia,Qatar,Pakistan,Turkey,Egypt and Jordan tojointheAbrahamAccordsen masse to normalise relations with Israel as he tries to negotiate an agreement to end the »INSIDE« XI HAILS PAKISTAN’S IRAN PEACE EFFORTS PAGE 9 war with Iran. Pakistan rejected the proposal. None of the other countries has so far publicly reacted to Trump’s demand and a positive response was unlikely when the public mistrust of Israel in these Muslim nations remains high over the scale of its military offensive in Gaza. Trump said he spoke on Saturday to leaders of those countries,aswell as the United Arab Emirates and Bahrain, which have already signed the accords,a set of agreements to normaliserelationswithIsrael. “I am mandatorilyrequesting that all Countries immediately sign the Abraham Accords, and that, if Iran signs itsagreementwithme,aspresident of the United States of America,itwouldbeanhonour to have them also be part of this unparalleled world coalition,” Trump wrote in a long post on Truth Social. Fuel prices hiked again; total `7.5 a litre in 12 days RBI mayfavourliquidity, Re extends gain for SAURAVANAND New Delhi, May 25 PETROL AND DIESEL prices were raised by `2.61 and `2.71 perlitre,respectively,on Monday — the fourth increase in less than two weeks — as state-run oil marketing companies (OMCs) accelerated delayed pass-through of soaring global crude prices. OMCs’ daily losses, however, remained close to `600 crore despite cumulative fuel price hikes of about `7.5 per litre since May 15. In Delhi, petrol prices rose to `102.12 per litre from `99.51 and diesel prices to `95.20 from `92.49. The latest revision follows a `3-per-litre increase on May 15, a 90-paise hike on May 19 and another increase on May 23, when petrol prices were raised by87 paise and diesel by 91 paise per litre. “The losses are slightly less than`600croreperday,” Sujata Sharma, joint secretary in the 4TH INCREASE Continued on Page 9 forex tools overrate hike 3rd straight session CHRISTINATITUS Mumbai, May 25 POLICY PREDICTIONS rounds of fuel price hikes ■ Crude prices have risen more than 50% since war began in February-end »INSIDE« FUELTAX DEBATE: SOME MYTHS, WRITES ARBIND MODI PAGE 8 ministryof petroleum and natural gas, said on Monday. According to Sharma, daily losses on petrol, diesel and domesticLPGsaleswerearound `1,000 crore before the latest cycle of fuel price revisions began earlierthis month. Continued on Page 10 Reporate projection FE POLL Union Bank of India Canara Bank Standard Chartered InflationFY27 (RBI-4.6%) No 4.80% 25bpshike Organisation ■ OMCs’ daily losses near `600 crore even after four US President Donald Trump places a wreath at the Tomb of the Unknown Soldier in Arlington National Cemetery on Monday AP 5-5.25% No 4.90% No 4.9-5.1% RBL Bank 50bpshike - HDFC Bank No No IDFC FIRST Bank No Slightupwardrevision Kotak Mahindra Bank No Revisedupwards YES Bank No 5% Bank of Baroda No 5% KSHIPRA PETKAR & CHRISTINATITUS Mumbai, May 25 Infomerics Ratings THE RESERVE BANK of India’s (RBI)MonetaryPolicyCommittee (MPC) is expected to announce additional measures to support the rupeewhile keeping interest ratesunchangedatitsJune5policymeeting,accordingtoapollof 10economists.Onlytwoofthem expect the central bank to raise rates.The RBI had left the repo rateunchangedat5.25% inApril. Economists said the RBI is likely to rely more on liquidity and regulatory tools to ease »INSIDE« EDIT: RETHINKING RUPEE DEFENCE PAGE 8 pressure on the rupee rather than resorting immediately to rate hikes.They also pointed to slowing capital inflows — includingweakerforeign direct investment (FDI),foreign port- folioinvestment(FPI)andexternal commercial borrowing (ECB) flows — as an additional sourceofstressforthecurrency. Continued on Page 10 THE RUPEE STRENGTHENED on Monday after a drop in oil prices and supportive comments from the Reserve Bank of India governor,said market participants.It gained47paise to close at 95.24, making it Asia’s second best-performing currency, as per Bloomberg. The rupee has risen for the third consecutive session. The RBI intervened heavily in recent sessions to support the rupee and pulled back from record lows. Over the past three sessions, the currency has gained over 1.5% with dollar supply from the central bank. “Over the past two days, the RBI has intervened aggressively, and today the governor made a positive statement on the rupee.Those actions, along with falling ASIA’S SECOND BEST Intra-day, May 25 95.1 95.2 (Inverted scale) 95.24 95.35 0.49 % 95.3 95.4 95.5 Previous close 95.71 Open Close crude prices,are the two main reasons the rupee strengthened.The governor’s remarks arrived at a timely moment to lift market sentiment,” said Dilip Parmer,research analyst at HDFC Securities. Continued on Page 10 Excess fleet capacity and lower freight availability erode pricing power Zepto mayfile for $1-bn IPO in June Dieselup,freightratesflat:Truckerscaughtinasqueeze ZEPTO IS PREPARING to publicly file in the first half of June foraninitialpublicofferingthat may raise up to $1 billion, according to people familiar withthematter.The10-minute delivery platform is likely to begin investor roadshows laternextmonth,andis targeting an IPO launch as early as July,the people said. The offering is expected to include a fresh issue of shares as well as secondary share sales by existing investors, with proceeds likely to fund expansion, the people said. Deliberations are ongoing and details including the size and timing of the IPO may still change, they said. Zepto’s offering may becomeonlythesecondbilliondollar IPO in India this year, after SBI Funds Management’s planned share sale. The deals mayhelp revive momentum in a market slowed by weak dealmakingasinvestorsassess the economic fallout from the Iran war. Local companies have raised a combined $3.5 billion through first-time share sales so far in 2026,farbelowtherecord levelsoftheprevioustwoyears. Representatives for Zepto declined to comment. The company achieved a $7-billion valuation in its last $450-million funding round in October. —BLOOMBERG NITIN KUMAR & SAURAVANAND New Delhi, May 25 SHARP DIESEL PRICE hikes are burning a hole in truckers’ pockets, but weak cargo demand and a glut of idle trucks mean they can’t pass the pain on to customers. Diesel prices have risen cumulativelyby`7.50 perlitre between May 15, including a `2.71 per litre increase on Monday.However,freightrates across majortrunk routes have seen only limited movement, reflecting weak pricing power in the sector despite rising operating expenses. Industry bodies said the mismatch highlights a widening demand-supply imbalance, PROBLEM OF PLENTY ■ Of around Scenarios in diesel prices Hike in freight rate per tonne/km Baseline* +`5 +`10 +`15 +`20 — 2.5-2.8% 5.0-5.6% 7.5-8.3% 10.1-11.1% trucks, nearly 20-25% Note: Baseline diesel rate is assumed at `90.03/litre (Mumbai) Source: Crisil Intelligence with cargoavailabilityremaining weak while fleet capacity has expanded sharply over the past several months. According to the All India Motor Transport Congress (AIMTC), there are around 9 million trucks,of which nearly 9 million 20-25%arecurrentlylyingidle duetoinadequatefreightavailability.The excess capacity situation has been aggravated by strong commercial vehicle salesbetweenSeptember2025 andMarch2026,supportedby easy financing, goods and ser- are currently lying idle due to inadequate freight availability, according to a truckers’ body vices tax (GST) benefits and aggressivediscountsbymanufacturers, resulting in additional fleet creation. At the same time, freight movement from manufacturing and MSME clusters has weakened, reducing cargo Kolkata availability and intensifying competition among transporters for available loads. “Lower cargo movement from manufacturing clusters and subdued freight availability across industrial value chains contributed to weaker freight realisations for transport operators. Meanwhile, the prolonged uncertainty in global trade flows, caused by the West Asia conflict, weighed on supply chains, impacting cargo movement sentiment across the broader logistics ecosystem,” Crisil Intelligence said. “The market alsowitnessed relativelyhighfleetavailability, further intensifying competitive pricing pressure across long-haul freight routes.At the sametime,transportoperators continued to face elevated operating cost pressures, including tyre and maintenancecosts,resultingintighter operating margins despite softer freight rates,”it added. The situation has particularly affected smaller fleet operators,manyofwhom continue to run trucks at lowrates tomaintaincashflowsandservice loan repayments. According to the Indian Foundation of Transport Research and Training (IFTRT), trucks are currently waiting threetofivedaysforreturnloads onseveralroutes,comparedtoa turnaroundperiodofaround24 hours a fewmonths ago. Continued on Page 10