BACK PAGE | PAGE 22 MARKETS | PAGE 7 India tops ransomware target attack inAPAC INTERNATIONAL | PAGE 9 RajivKumarnamedpart-time chairmanofHDFCBank HYDERABAD, TUESDAY, JUNE 30, 2026 Korea taps Samsung, SK in $576-bnAI chip drive FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. NO. XXIII 50, 22 PAGES, `12 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 76,728.37 ▼ 372.10 NIFTY: 23,946.25 ▼ 109.75 NIKKEI 225: 69,468.11 ▲ 107.23 HANG SENG: 23,026.68 ▲ 354.82 `/$: 94.53 ▼ 0.13 `/€: 107.80 ▼ 0.54 BRENT: $72.78 ▲ $0.79 GOLD: `141,068 ▲ `1,225 Tamilnad Mercantile Bank DEPOSIT SCHEME Tenor: 567 Days *T&C Apply MORE RETURNS. MORE REASONS TO SMILE. WITH TMB'S 567 DAYS DEPOSIT SCHEME 7.75%* % www.tmb.bank.in | Toll-free: 180 0425 0426 IN THE NEWS COMPANIES PAGE 6 DELHI'S EV PUSH: MASS MARKET CARS TO GAIN DELHI'S NEW ELECTRIC vehicle policy – approved by the Delhi Cabinet on Monday and effective from July 1 – is expected to provide a fresh demand trigger for electric vehicle makers, with tax exemptions for electric cars priced below `30 lakh and purchase subsidies for electric two- and three-wheelers lowering acquisition costs for consumers in one of the country's largest automobile markets, reports Akbar Merchant. » INSIDE « THE CEILING PROBLEM, WRITES SIDDHARTH PAI P8 THE HUMAN FACTOR THE CORPORATEJELLYFISH P8 Rupee weakens on month-end dollar demand THE RUPEE WEAKENED on Monday due to month-end dollar demand from oil importers and increase in crude prices, reports ChristinaTitus.The rupee moved within a narrow band and ended 13 paise weaker at 94.53 against the dollar, down from its previous close. ■ PAGE 7 Investors bet on SIFs as AUM nears `14,000-cr mark SPECIALISED INVESTMENT FUNDS (SIFs) have gained rapid traction among investors, with AUM rising nearly seven-fold from `2,010 crore in October 2025 to around `13,814 crore in May 2026, reports Kushan Shah.■ PAGE 7 MANUFACTURING,CONSUMPTION,ELECTRICITYKEYDRIVERS May’sindustrialgrowthat three-monthhighof5.1% RESILIENT PERFORMANCE MUKESH JAGOTA New Delhi, June 29 A SHARP INCREASE in electricity production caused by heatwaves,continued manufacturing strength and robust consumption demand pushed industrial output growth to a three-month high of 5.1% year-on-year in May. The Industrial Production (IIP) growth during the month was higher than the 2025-26 average of 4.3%. In April this year, IIP grew 4.9% while in May last year, it was 3.4%. Manufacturing sector, which dominates the index with a 76% weight saw production growth moderate to 5.5% in May, compared to 6.1% in the previous month, reflecting a minor impact from the West Asia crisis. Electricity and gas output was up 9.9% year-on-year in May, compared to 4.6% in April.Within this group,electricity production was up 11.1% as the summer heat rose. The IIP was recently revised to reflect industry compositional changes, using 2022-23 as the base year. Dipti Deshpande, Principal Economist at Crisil said: “Domestic demand remained resilient, with the consumer sectors clocking a cumulative growth of 5.1% (versus 2.5% in April). Highfrequency data shows urban demand was the driver of domestic demand.” According to Megha Arora, director at India Ratings and Research,IIP growth is expected to improve to 5.7% in June 2026 as the base effect will help maintain the growth momentum. Continued on Page 6 Index of industrial production, % growth y-o-y (base year 2022-23) 20 9.9 5.5 5 0 -5 -10 May 2025 May 2026 Water supply, sewerage and waste management 5.1 10 Manufacturing 5.5 15 Electricity and gas supply General -1.6 Mining and quarrying Within striking distance of 8% growth, says Das India rating safe, says Moody’s FE BUREAU New Delhi, June 29 INDIA CAN WITHSTAND a potentially wider-thanforecast fiscal deficit this year without jeopardising its investment-grade rating, according to Moody’s Ratings, as higher energy prices are expected to pose only temporary Budget pressures. “We don’t see India as being particularly affected because this shock is largely negative for most sovereigns,” Christian de Guzman, Singapore-based senior vice president at Moody’s Ratings, said in an interview. Moody’s assigns India a Baa3 rating, the lowest investment-grade tier, with a stable outlook. The assessment reflects the government’s steady progress in repairing its finances since Covid-19, de Guzman said. emerged stronger after each crisis. "With a reasonable level INDIA COULD BE within of normality in the geopolit"striking distance" of achiev- ical situation and the ing 8% annual ecoreforms being nomic growth if the undertaken SHAKTIKANTA DAS, global geopolitical by the prime PRINCIPAL SECRETARY situation remains TO THE PRIME MINISTER minister, 8% stable, Shaktikanta g r o w t h Das, principal secreshould be India has tary to the prime within strikemerged minister, has said, ing distance," adding that the gov- stronger.. because Das said. ernment has more it saw every crisis T h e economic reforms as an opportuni- International in the pipeline. Monetary ty to advance In an interview Fund had prowith the Financial further reforms jected India's Times, Das said the economic Indian economy had growth at weathered a series 6.5% for both of global shocks, FY27 and including the FY28, down Covid-19 pandemic, from 7.6% in the Russia-Ukraine FY26. war and the recent conflict in West Continued Asia, and had on Page 6 BLOOMBERG June 29 Continued on Page 10 INDIARECLAIMS 5TH SPOTIN M-CAPLIST WITH ITS MARKETcapitalisation rising 2.73% inJune so far to $5.04 trillion, India has regained the fifth position in the global m-cap rankings, according to Bloomberg data, reports Kishor Kadam. India overtook South Korea andTaiwan as their m-cap declined 4.70% and 2.34% respectively during the period. Top 10 countries by market cap India 5.2 4 6.61 Hong Kong 5.04 India Taiwan Taiwan 5.04 4.97 South Korea 4.66 4.97 4.02 Ma May 1, 2026 Canada 4.66 4.8 4.4 8.58 Japan 4.89 South Korea 15.23 China Market cap ($ trillion) 5.6 79.25 US UK June 26, 2026 France 4.40 3.89 3.45 Mcap ($ trillion) Source: Bloomberg As of June 26, 2026 IBC revamp maybolster policyholderprotection ● Insurersmayhave sector-specific frameworkfor insolvency MANU KAUSHIK New Delhi, June 29 THE GOVERNMENT IS examining a sector-specific insolvencyframeworkforinsurance companies under the Insolvency and Bankruptcy Code (IBC), similar to the one for the real estate sector. Additional protection for insurancepolicyholdersmaybe a key feature of the framework. Besides, the proposed changes might also clearly define the respectiverolesoftheInsurance Regulatory and Development Authority of India (Irdai), the insolvencyregulatorInsolvency and Bankruptcy Board of India (IBBI) and the adjudicators — NCLT and NCLAT — for bankruptcysettlement in the sector. However, insurance policyholders may not necessarily receive rights equivalent to homebuyers in the real estate insolvencyregime.Homebuyers have had the tag of financial creditors since 2018 and a SupremeCourtrulinginFebruary this year further reinforced their position by stating that CCIclosesits 2012pharma caseforlack ofevidence MANU KAUSHIK New Delhi, June 29 THE COMPETITION COMMISSION of India (CCI) has closed a 14-year-old antitrust case against several drug companies, leading pharma associations and All India OrganisationofChemistsandDruggists (AIOCD),stating that therewas insufficient evidence to prove anti-competitive conduct under the Competition Act. The order dismissed the findings of the CCI's investigative arm, which had concluded that chemist associations had imposed mandatory no-objection certificates (NOCs) for appointment of stockists, required Product Information Service (PIS) approvals before launching new medicines, fixed trade margins and facilitated boycotts against pharma companies that failed to comply. The CCI held that the investigation largely relied on historical evidence dating back to 2009-11 and could not demonstrate that the alleged practices continued after the agreements between industry bodies ended in 2011. Continued on Page 10 E-comm giant’s quick commerce push with Flipkart has shaken investor confidence in Blinkit & Instamart Amazonfuels$15-bnsell-offinEternal,Swiggy ALEX GABRIEL SIMON June 29 ETERNAL AND SWIGGY got the 10-minute delivery party going in India. Now, e-commerce titans Amazon.com and Walmart’s Flipkart are looking to crash it. Eternal, whose Blinkit does doorstep delivery of everything from eggs to electronics within minutes, has slipped 27% from its October all-time high, while rival Instamart’s owner Swiggy has plunged about 48% from its recent peak in September. That adds up to a selloff of $15 billion for the duo as investors get spooked by the onslaught of competition. Amazon and Flipkart are doubling down on India’s booming $11 billion rapidcommerce segment,building out their network of last-mile warehouses, called dark stores, to push into smaller cities. Meanwhile, Zepto plans to raise as much as $1 billion via an initial public offering, amassing a war chest to take on market leader Blinkit and Swiggy Instamart. “The challenge right now is that the competition is really high,so near-term profitability is depressed,” Franklin Templeton fund manager Yi Ping Liao, who holds shares in Eternal, said in an interview. “The risk is the duration of the competitive intensity.” Seattle-based Amazon, Q-COMM RACE ■ Eternal has slipped 27% from its all-time high; Swiggy has fallen 48% »INSIDE« ■ Flipkart Minutes ■ Amazon announced plans last week to expand the Amazon Now service to more than 300 Indian cities and towns has scaled to 1,000 dark stores across 130 cities in less than two years ■ Blinkit had 2,243 dark stores in the year ended March 31 while Swiggy is trailing at 1,143 AMAZON DOUBLES DOWN ON PRICING, SPEED EDGEAS Q-COMM BITES PAGE 6 which started ultra-fast deliveries last year, is making up for its delayed entry. It announced plans last week to expand the Amazon Now service to more than 300 Indian cities and towns, up from more than 15 right now, as it pledges to invest $13 billion more to build its AI and cloud infrastructure in the country. Flipkart Minutes has scaled to 1,000 dark stores to take its offering to 130 cities in less than two years,according to a report in a leading business daily. Flipkart is looking to set up 1,500 stores in 180-plus cities in the next few months, the report said. A dark store currently requires between 1,350 to 3,000-plus orders per day to break even, according to Ashwin Mehta, head of equity research at Ambit Capital. “So competition, whether it’s efficient or inefficient, will hurt” as a few hundred orders pulled away by peers will hit profitability, Mehta said.“I don’t think any player is exiting this market before touching at least 2,000 dark stores over the next two years.” Blinkit had 2,243 dark stores in the year ended March 31 while Swiggy is trailing at 1,143,according to a May 15 report by Macquarie Equity Research. Continued on Page 6 IN LINE WITH REALTY ■ The framework for insurance companies under the Insolvency and Bankruptcy Code (IBC) is similar to the one for the real estate sector ■ Insurance policyholders though may not necessarily receive rights equivalent to homebuyers in the real estate insolvency regime Distressed insurance companies are dealt with under the Insurance Act, 1938 instead of the IBC ■ their claims would get precedenceoverthatofothersincluding lenders. The need for a separate framework for dealing with stress in the insurance sector stemsfromalong-standinggap. While insurance companies are classified as “financial service providers” under the IBC, the governmentisyettoimplement the relevant adjudicating rules for the sector notified in 2019. Asaresult,distressedinsurance companies continue to be dealt with under the Insurance Act, 1938insteadoftheIBC.TheAct ■ The need for a separate framework for dealing with stress in the insurance sector stems from a long-standing gap also gives Irdai the powers to seek the winding up of an insurerifitbecomesinsolventor ifallowingittocontinueoperating could harm policyholders. “There is a recognition withinthegovernmentthatthe existing insolvency framework might not adequately address the unique challenges faced by the insurance sector,where the interests of millions of policyholdersmustbebalancedalongside those of creditors,” an official said. Continued on Page 6 Vaishnaw:Bullet trainactionplan tobestandardised RISHI RAJ New Delhi, June 29 ASHWINI VAISHNAW, RAILWAYS MINISTER THE GOVERNMENT HAS drawn up a standardised template for building all future bullet train corridors,creating a common engineering blueprint that will help execute high-speed rail projects faster, cheaper and at scale. The framework, evolved through the Mumbai-Ahmedabad High Speed Rail (MAHSR) project, has standardised every major subsystem of construction except the foundation, Union Railways Minister Ashwini Vaishnaw told FE in an interaction. "Our construction philosophyistostandardiseallsubsystems except the foundation. The foundation will be designed as per the exact soil characteristics of the spot, but the pier above, the viaduct, track, station structure, overhead electrification and signalling system will all be standard," Vaishnaw said. The approachwillallowseveralsubsystemstobemanufacturedin factoriesandassembledatproject sites,shortening constructiontimelines,improvingquality and reducing costs. Describing the MumbaiAhmedabad corridor as India's learninggroundforhigh-speed rail,Vaishnaw said the project has helped the government develop standards that can be replicated across future corridors. "The Mumbai-Ahmed- High-speedrailisa technologyintensivesector andstandardsmust evolvecontinuously astechnology advances& operational experience grows abadHigh-SpeedRailprojectis a technology-learning platform.We are learning from the global best and adding our innovation,"hesaid."Theobjectiveistocreatesystemsthatare scalable." Though based on Japan'sShinkansentechnology, the standards have been adapted to Indian conditions andoperationalrequirements, with the long-term aim of making India a global centre for high-speed rail manufacturing and expertise. The standardised framework is also expected to accelerate localisation. Vaishnaw said the indigenous B28 bullet train,designedforspeedsofup to 280 kmph, is already under manufacturing, with a majorityofitscomponentstobeproduced in India. Continued on Page 6 QUICK PICKS BATto cut 9,000 jobs Fuel sale curbs withdrawn BRITISH AMERICAN TOBACCO is reducing its 47,000-strong global workforce by about one-fifth as part of its sweeping plan to bring down costs and simplify operations, reports Bloomberg. By the end of this year, the maker of Dunhill cigarettes will have slashed 5,500 jobs and outsourced a further 3,500, according to an internal notice that lays bare the scale of change taking place at the tobacco giant. ■ PAGE 4 THE CENTRE ON Monday lifted the temporary restrictions on the sale of petrol and diesel to commercial, industrial and institutional consumers through public sector retail outlets, restoring normal fuel sales from July 1 after the domestic supply situation improved following disruptions caused by the West Asia crisis, reports Saurav Anand. The rollback ends the emergency 200-litre daily cap on diesel sales imposed on June 12. ■ PAGE 2 HYDERABAD