Citi’s Vis Raghavan notes muted FDI in India due to energy dependency and AI uncertainty, despite strong domestic sentiment. He highlights the need for India to articulate its AI-driven global economy position, emphasizing its cost advantage in compute and potential as a global AI hub.
Despite challenging global markets, several major Indian companies are pushing ahead with IPO plans. Oyo’s parent, Prism, received regulatory approval for a Rs 6,650 crore offering. Coca-Cola is also exploring a $1 billion listing for its Indian bottling arm, Hindustan Coca-Cola Holdings, in 2027. Other notable firms like Zepto and Manipal Hospitals are also preparing
Companies are facing rising costs for both cans and glass bottles this summer, impacting beer and soft drink manufacturers. Supply disruptions from West Asia for aluminium cans and increased LPG costs have led to price hikes of 15-20% for packaging. Distributors anticipate a Rs 10 price increase for 300 ml Diet Coke cans.
India is set to introduce a Producer Price Index (PPI) on June 15, alongside a revised Wholesale Price Index (WPI). The government plans to phase out WPI within five years, adopting PPI as the primary measure for factory gate inflation. This move aligns India with global standards, offering a more comprehensive inflation metric.
India and the UK are addressing key issues delaying the Comprehensive Economic and Trade Agreement (CETA) implementation, including Britain’s steel safeguard measure and carbon border adjustment mechanism. These concerns could lead India to rebalance duty concessions on British products like Scotch whisky, impacting bilateral trade.
Indian markets saw a mixed trend. Wall Street’s record rally paused on Tuesday. Alphabet’s shares dropped significantly after the Google parent announced plans to raise capital for its artificial intelligence investments. Other tech companies like Hewlett Packard Enterprise and Broadcom saw gains. Oil prices eased slightly. Bond markets remained stable ahead of US labor data.
