📰India Wants to Make it Easier for You to Invest | Daily India Briefing

Indian consumers boycott American brands as part of a ‘buy local’ movement in protest to tariffs. The RBI is estimated to have sold at least $5 billion to stabilize the rupee amid tariff volatility. India’s corporate bond market is on track for another record-breaking month

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Macro

• Indian shares rose on Monday, with SBI and Tata Motors leading gains after earnings, as investors bought after six weeks of declines. Sentiment improved ahead of U.S.-Russia talks despite recent pressure from tariffs and weak earnings.

• The rupee ended flat on Monday at 87.66 per dollar, as importer dollar demand offset early gains from a weaker greenback and NDF recovery. RBI interventions helped cap losses amid U.S. tariff pressures and heightened market volatility.

• Indian equity mutual fund inflows hit a record $4.9 billion (₹427.02 billion) in July, up 81 percent from June. Investors took advantage of market dips driven by U.S.-India trade tensions and weak corporate earnings.

Equities

• Bata India’s Q1 adjusted profit fell 10 percent to $8.5 million (₹748.5 million) as sluggish urban footwear demand and higher costs weighed on margins. Revenue slipped 0.3 percent, with weather-related headwinds hitting store footfalls, though the company remains optimistic on recovery.

• BEML’s quarterly loss narrowed to $7.3 million (₹641.1 million) from $8.1 million (₹704.7 million) a year earlier, aided by improved order execution and a 16-fold jump in non-operating income. Revenue was steady at $72.3 million (₹6.34 billion), while expenses remained flat.

• Goodyear India’s first-quarter profit fell 43.6 percent as weak auto demand hit sales. The slowdown follows a 5.1 percent drop in national vehicle sales during the quarter, reversing last year’s strong growth.

• JSW Cement’s $413 million (₹36.2 billion) IPO was fully subscribed on its third day, fueled by investor optimism over India’s infrastructure and housing growth. The firm targets a $2.3 billion (₹201.6 billion) valuation, with shares set to list on August 14.

Alts

• India shut the 1,000 MW Unit 1 at Kudankulam, its largest nuclear plant, on Aug. 3 for scheduled maintenance, possibly lifting power prices in the south. Tamil Nadu may source extra supply from the market if demand rises.

• State-owned Shipping Corp. of India plans to buy 26 locally built ships for $2.3 billion (₹201.6 billion) to boost domestic shipbuilding. The move aligns with India’s goal to increase locally made tanker capacity to 70 percent by 2047 and reduce reliance on foreign vessels.

• Bajaj Finserv’s Lakshmi Iyer sees India’s long-term sovereign bonds as a buy, with the 30- to five-year yield spread above 100 bps creating an attractive entry point. She says most negative news is priced in and demand remains strong.

Policy

• Prime Minister Modi reaffirmed India’s commitment to strengthening ties with Ukraine and supporting a peaceful resolution to its war with Russia after speaking with President Zelenskiy. The discussion included Russian sanctions and oil exports, amid U.S. pressure over India’s Russian oil purchases.

• India plans to offer 10–15 percent credit guarantees on bank loans to stressed small businesses and exporters hit by U.S. tariffs, covering loans overdue up to 90 days. The scheme would allocate about $460 million (₹40 billion) to boost lending access.

• India’s pilot union rejected the government’s proposal for a global hiring code to curb pilot poaching, arguing it violates employment norms and risks “bonded labour.” The dispute comes as India’s aviation growth is constrained by a shortage of experienced pilots.

• Ukrainian President Zelenskiy spoke with PM Modi and Saudi Crown Prince MBS to rally broader support ahead of this week’s planned Trump-Putin talks, emphasizing Ukraine’s need for a stronger position in peace negotiations.

• India’s alloy steel producers have petitioned the trade ministry to impose anti-dumping duties on cheap Chinese imports, citing a surge in low-priced wire rod shipments that have hurt local manufacturers. The complaint, filed July 31, targets products used mainly in autos.

• Pakistan Army Chief Asim Munir accused India of fueling regional instability and warned of a “crushing response” to any aggression, amid heightened tensions after May’s brief conflict. India rejected the remarks as “nuclear sabre-rattling” and denied being swayed by “nuclear blackmail.”

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1. Trump’s Tariffs Ignite ‘Buy Local’ Push in India

From McDonald’s and Coca-Cola to Apple and Amazon, American brands in India are facing a rising wave of boycott calls as Prime Minister Narendra Modi’s supporters and industry leaders frame Trump’s 50 percent tariff hike as an attack on Indian economic sovereignty.

India, the largest market for WhatsApp and home to more Domino’s outlets than any other country, has become deeply integrated with U.S. consumer brands, which dominate shelves, malls, and digital platforms. But the tariff shock has triggered a push for “swadeshi” (self-reliance), with activists urging consumers to ditch foreign products for Indian alternatives.

Manish Chowdhary, co-founder of Wow Skin Science, called for making “Made in India” a global obsession, while DriveU CEO Rahm Shastry argued India should have homegrown versions of Twitter, Google, and YouTube, mirroring China’s digital self-sufficiency. The BJP-linked Swadeshi Jagran Manch has begun small rallies and is circulating brand-substitution lists on WhatsApp, encouraging swaps to domestic soaps, toothpaste, and beverages.

So far, there’s no evidence of sales declines for U.S. firms. In fact, Tesla just opened its second showroom in New Delhi, drawing both the Indian commerce ministry and U.S. embassy officials. But the optics are shifting, Modi, without naming names, appealed for greater priority on domestic needs, hinting at a long-term pivot toward Indian brands.

Whether this turns into a lasting consumer movement or fades as tariff diplomacy plays out could determine if “Boycott America” remains a slogan,m or becomes a retail reality.

2. RBI Sold Over $5 Billion to Steady Rupee Amid Tariff Fallout

The RBI is estimated to have sold at least $5 billion (₹438.3 billion) across onshore and offshore currency markets this month to slow the rupee’s slide toward record lows, according to people familiar with the matter.

The rupee hit 87.89 per dollar last week, just shy of its all-time low, after U.S. President Donald Trump doubled tariffs on Indian goods to 50 percent in retaliation for New Delhi’s Russian oil purchases. The sell-off intensified pressure on the RBI to contain imported inflation risks and protect market confidence.

Traders said the central bank was active in both spot markets and non-deliverable forwards, often stepping in offshore just before Mumbai trading opened. This tactic, used heavily last year, allows the RBI to influence rupee direction without flooding the market with dollar sales.

Analysts noted the move marks a shift from Governor Sanjay Malhotra’s more restrained intervention style since taking office in December. “This seems less about defending a specific level and more about curbing volatility,” said Dhiraj Nim of ANZ.

RBI’s foreign-exchange reserves fell by $9.3 billion (₹815.2 billion) in the week through Aug. 1 to $689 billion (₹60.4 trillion), the steepest drop since November, partly reflecting the intervention. The rupee traded steady at 87.62 Monday, but dealers expect further dollar sales if tariff-driven pressure persists.

3. Corporate Bond Fundraising in India Poised for Record August

India’s corporate bond market is on track for another record-breaking month, with companies set to raise at least $3.43 billion (₹300 billion) in the next three weeks as falling yields and abundant liquidity make bonds more attractive than bank loans.

Major issuers expected in August include Manipal Hospitals, State Bank of India, IRB Infrastructure Trust, Delhi International Airport, Torrent Investments, Power Grid Corp, and GMR Airports, according to traders. The surge follows a historic April–July period when firms raised $46.5 billion (₹4.07 trillion), the highest ever for the first four months of a financial year.

The boom has been fueled by the Reserve Bank of India’s 100-basis-point rate cuts between February and June, alongside liquidity injections that have sharply lowered borrowing costs. Corporate bonds have seen faster rate transmission than traditional loans, prompting a shift in financing strategies.

Banks are losing ground in corporate funding, with their share of incremental credit falling to 22 percent in April–June from 44.6 percent last year, SBI data shows.

Demand from mutual funds remains strong, particularly for maturities up to five years, with some investors eyeing AA+ and AA-rated papers for spread compression. With the central bank signaling a “lower-for-longer” rate environment, market participants expect momentum in bond fundraising to continue through the year.

See you tomorrow.

Written by Eshaan Chanda & Yash Tibrewal. Edited by Shreyas Sinha.

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