Indian Government Recommends 12% Temporary Tax on Steel Imports to Protect Domestic Industry

In a significant move to protect its domestic steel industry, India has proposed implementing a 12% safeguard duty on selected steel products for a period of 200 days. This temporary tax measure aims to address the surge in steel imports that has been impacting local manufacturers and market stability.

According to a government notice released on Tuesday, the Directorate General of Trade Remedies (DGTR), operating under the federal trade ministry, has determined that this provisional duty is necessary to counteract serious injury to the domestic steel sector.

Background of the Safeguard Measure

The recommendation comes after an investigation initiated in December 2024, when the government began examining whether safeguard duties were necessary to curtail rising steel imports. This investigation was prompted by concerning trends in the market:

• Record-high imports: India witnessed unprecedented quantities of finished steel imports during the April-January period of the current fiscal year
• Net importer status: Despite being the world's second-largest crude steel producer, India has shifted to being a net importer of steel
• Increased foreign competition: Imports from China, South Korea, and Japan reached record levels in the first 10 months of the financial year

Impact on Domestic Industry

The influx of cheaper imported steel, particularly from China, has created significant challenges for India's steel industry. These challenges include:

Operational downsizing: Many smaller steel mills across the country have been forced to scale down their operations due to price pressures from imported products.

Employment concerns: The competitive disadvantage has led some manufacturers to consider workforce reductions as they struggle to maintain profitability against lower-priced imports.

Market instability: The domestic steel market has faced pricing pressures and volatility as local producers compete with imported materials.

Next Steps in the Process

The DGTR has outlined a clear path forward for finalizing this safeguard measure:

• The authority has invited stakeholders to submit comments on its findings within a 30-day window
• Following the comment period, an oral hearing will be conducted to consider all perspectives
• After reviewing all input, the DGTR will make a final determination on the implementation of the safeguard duty

The provisional duty recommendation states: "Authority considers that a provisional safeguard duty of 12% will be appropriate to eliminate the serious injury and threat thereof to the domestic industry."

Global Context

India is not alone in considering protective measures for its steel industry. The country joins a growing list of nations worldwide that are contemplating or implementing actions to manage steel imports, particularly those from China. This trend reflects broader concerns about global steel overcapacity and its impact on domestic industries across multiple markets.

Strategic Importance

This move aligns with India's broader economic strategy to strengthen domestic manufacturing capabilities and reduce dependence on imports in key industrial sectors. The steel industry, in particular, holds strategic importance for India's infrastructure development, manufacturing sector, and overall economic growth objectives.

Market analysts will be closely watching how this temporary tax measure, if implemented, affects steel prices, import volumes, and the competitive position of domestic producers in the coming months.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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India's Trade Deficit Hits 42-Month Low as Gold and Crude Imports Decline

India's Goods Trade Deficit Hits 42-Month Low as Gold, Silver and Crude Imports Decline

India's merchandise trade deficit narrowed significantly to a 42-month low of $14.05 billion in February 2025, driven primarily by reduced imports of gold, silver, and crude oil, according to the latest data released by the Ministry of Commerce and Industry. This marks a substantial improvement from the $22.9 billion deficit recorded in January 2025 and the $19.5 billion deficit seen in February 2024.

Sharp Decline in Precious Metals and Crude Imports

A key factor contributing to the narrowed deficit was the notable reduction in precious metals imports. Gold and silver imports plummeted to $2.7 billion in February 2025, reaching their lowest level since June 2024, when imports stood at $2.5 billion.

Similarly, crude oil and petroleum imports fell to $11.89 billion, marking the lowest figure since July 2023, when imports were valued at $11.81 billion. This significant reduction in high-value imports has played a crucial role in improving India's trade balance.

Overall Import-Export Performance

India's export performance showed some weakness with goods exports valued at $36.9 billion in February 2025. More notably, imports declined to a 22-month low of $50.9 billion, representing a substantial drop in the country's import bill.

On a year-on-year basis, exports experienced a 10.84% decline in February 2025 compared to the same month last year. According to Aditi Nayar, Chief Economist at credit rating agency ICRA, "A portion of the YoY decline in merchandise exports can be attributed to the base year effect related to the leap month."

The import figures showed an even steeper decline, with a 16.3% contraction in February 2025 compared to February 2024. This significant reduction in imports has been instrumental in narrowing the trade deficit to multi-year lows.

Positive Outlook for Current Account Balance

The substantially reduced trade deficit presents a positive outlook for India's current account balance. The February deficit of $14.05 billion is significantly lower than the average deficit of over $23 billion recorded during the first ten months of FY2025.

This improvement has led experts to revise their forecasts for India's current account. "Given this, we now expect the current account to witness a surplus of around $5 billion in Q4 of FY2025, equivalent to around 0.5% of the GDP, in the ongoing quarter," noted Ms. Nayar from ICRA.

Services Trade Remains Strong

India's services sector continues to demonstrate resilience and growth. In February 2025, services exports reached $35.03 billion, while services imports stood at $16.55 billion. These figures represent significant growth compared to February 2024, when services exports and imports were $28.33 billion and $15.23 billion, respectively.

The robust performance of the services sector has provided additional support to India's overall trade balance, helping to offset some of the challenges faced in merchandise trade.

Global Trade Context and Future Outlook

The latest trade data takes on added significance against the backdrop of a depreciating Indian currency and persistent uncertainties in global trade policies, particularly from the United States. Despite these challenges, India remains committed to expanding its international trade relationships.

Trade Secretary Sunil Barthwal emphasized that "India is proactively engaged with the U.S. to address concerns of both countries and expand trade to $500 billion." This underscores India's commitment to resolving trade tensions and fostering stronger economic ties with key trading partners.

The significant reduction in the trade deficit, if sustained, could help stabilize the Indian rupee and improve market sentiment toward the Indian economy. However, analysts will be closely monitoring whether this improvement represents a temporary fluctuation or the beginning of a more enduring trend in India's external trade position.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Bajaj Finserv Plans to List Insurance Entities by FY27 After Allianz Stake Acquisition

Bajaj Finserv Plans to List Life and General Insurance Entities by FY27

In a significant strategic move, Bajaj Finserv Ltd. is reportedly planning to list its life and general insurance businesses in the financial year 2027, according to exclusive sources familiar with the matter. This development comes on the heels of the company's announcement regarding the acquisition of Allianz's stake in their joint insurance ventures.

Complete Ownership Acquisition from Allianz

On Monday, Bajaj Finserv made a landmark announcement that it, along with other promoter entities, will acquire the 26% stake held by Allianz in both Bajaj Allianz Life Insurance and Bajaj Allianz General Insurance. This strategic buyout will result in Bajaj Finserv and its promoter companies gaining 100% ownership of both insurance businesses.

The financial details of the transaction reveal the substantial valuation of these insurance entities:

• Bajaj Finserv and promoter companies will pay ₹13,780 crore for the 26% stake in Bajaj Allianz General Insurance, valuing the entity at a remarkable ₹53,346 crore
• An additional ₹10,400 crore will be paid for the 26% stake in Bajaj Allianz Life Insurance, placing the company's valuation at ₹40,000 crore

No New Partners on the Horizon

Sources have indicated that Bajaj Finserv is not seeking any new strategic partners for its insurance entities following the exit of Allianz. This suggests the company's confidence in managing and growing these businesses independently before potentially taking them public.

Market Impact and Analyst Perspectives

The announcement has generated positive sentiment in financial circles. Brokerage firm Emkay noted in its analysis: "This deal does not change anything as far as the operations of BAGIC and BALIC are concerned. Removal of the overhang about Allianz's future in this JV can be looked at as sentimentally positive."

The brokerage maintains a "buy" rating on Bajaj Finserv with a price target of ₹2,000, indicating confidence in the company's strategic direction and growth prospects following this acquisition.

Market Performance Context

This strategic move comes at a time when the Indian stock market has been showing interesting movements. Among the top gainers on the NSE were companies like TT with a 19.98% increase, HP Adhesives rising by 15.31%, and Uttam Sugar Mills gaining 14.92%.

Insurance Sector Growth in India

The potential listing of Bajaj's insurance entities aligns with the broader growth trajectory of India's insurance sector. With increasing insurance penetration, growing awareness about financial protection, and favorable demographic trends, insurance companies are well-positioned for sustained growth in the coming years.

For Bajaj Finserv, complete ownership of its insurance businesses provides greater flexibility in operational decision-making and strategic planning ahead of the potential public listings. This move could unlock significant value for shareholders and provide capital for further expansion.

Future Outlook

As Bajaj Finserv prepares for the potential listings by FY27, investors and market watchers will be closely monitoring the performance metrics of both insurance entities. Key factors that could influence their valuations include premium growth, claim ratios, investment performance, and product innovation.

With India's insurance sector poised for robust growth in the coming years, the timing of these potential listings could prove strategic for maximizing shareholder value while capitalizing on favorable market conditions.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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15 Companies Announce Dividends, Splits, Bonuses: IRFC, NMDC, Angel One in Focus

Key Companies to Watch This Week: IRFC, NMDC, Angel One Among 15 Firms Announcing Dividends, Splits, and Bonuses

Investors should mark their calendars for an action-packed week ahead as 15 listed companies have scheduled important corporate actions between March 17 and March 23, 2025. These actions include dividends, stock splits, and bonus share announcements from prominent firms like Indian Railway Finance Corporation (IRFC), NMDC, Angel One, and Power Finance Corporation.

Understanding Corporate Actions and Their Impact

Corporate actions are significant events initiated by companies that potentially affect their securities and shareholders. They serve as mechanisms for companies to reward shareholders and make their shares more accessible to a broader investor base.

• Dividends: Direct cash payouts to shareholders based on the number of shares held, offering immediate returns on investment.
• Stock Splits: Division of existing shares into multiple shares, reducing the price per share while maintaining the company's market capitalization, making shares more affordable for retail investors.
• Bonus Shares: Additional shares issued to existing shareholders without any cost, based on their current holdings.

These actions typically result in price adjustments on the ex-date, making it crucial for investors to understand the timing and implications of these events.

Key Ex-Dates to Track This Week

Monday, March 17

Sika Interplant Systems will trade ex-date for its 2:10 stock split, which will divide each existing share into two new shares with a corresponding reduction in price. Additionally, IRFC's board will meet to consider a second interim dividend for FY2025. The company has already set March 21, 2025, as the record date to determine eligible shareholders for dividend distribution.

Navratna PSU NMDC is also scheduled to decide on an interim dividend for FY2024-25 on March 17, as announced earlier this month.

Tuesday, March 18

Three companies will trade ex-date on Tuesday:

• Castrol India (dividend)
• DIC India (dividend)
• Padam Cotton Yarns (bonus issue)

Wednesday, March 19

Two companies will go ex-date for dividends:

• AGI Infra
• Power Finance Corporation

Thursday, March 20

Angel One will trade ex-date for an ₹11 per share dividend, while Blue Pearl Agriventures will trade ex-date for a stock split that will reduce the face value of shares from ₹10 to ₹1.

Friday, March 21

The week concludes with five companies trading ex-date:

• Greenlam Industries
• Last Mile Enterprises
• Optimus Finance
• Shukra Pharmaceuticals
• Softrak Venture Investment

Strategic Considerations for Investors

For investors looking to capitalize on these corporate actions, understanding the ex-date concept is crucial. The ex-date (ex-dividend or ex-split date) is the date on which a stock begins trading without the upcoming corporate action value included in its price.

Investors who purchase shares before the ex-date will be eligible to receive the announced dividend, participate in the stock split, or receive bonus shares. Those who buy on or after the ex-date will not be eligible for these benefits for the current announcement.

When planning investment strategies around these events, consider:

• Purchasing shares at least one business day before the ex-date to qualify for the corporate action
• Being aware of potential price adjustments that typically occur on the ex-date
• Evaluating the tax implications of dividends and other corporate actions

For dividend-focused investors, companies like IRFC, NMDC, Angel One, and Power Finance Corporation present interesting opportunities this week. Similarly, those interested in increased liquidity and potential post-split price momentum might find Sika Interplant Systems and Blue Pearl Agriventures worth watching.

With proper planning and timely execution, investors can potentially benefit from these corporate actions while enhancing their portfolio returns.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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FPIs Withdraw ₹30,000 Crore From Indian Equities in March First Half

FPIs Continue Massive Sell-Off; Withdraw Over ₹30,000 Crore From Indian Equities in March First Half

Foreign investors have maintained their selling spree in the Indian equity markets, withdrawing more than ₹30,000 crore during the first fortnight of March 2025. This continued exodus comes amid escalating global trade tensions and shifting investor preferences toward other markets.

According to the latest data from depositories, Foreign Portfolio Investors (FPIs) have offloaded shares worth ₹30,015 crore from Indian equities this month (till March 13), marking the 14th consecutive week of net outflows from the domestic market.

Persistent Outflow Trend in 2025

The March sell-off follows significant outflows in the previous months, with FPIs pulling out ₹34,574 crore in February and a substantial ₹78,027 crore in January. With these withdrawals, the total FPI outflow has reached a staggering ₹1.42 lakh crore (USD 16.5 billion) in 2025 so far.

This extended selling pressure stands in sharp contrast to the investment patterns observed in previous years. In 2024, FPIs had registered minimal net inflows of just ₹427 crore, while 2023 saw extraordinary inflows of ₹1.71 lakh crore, driven by optimism over India's strong economic fundamentals.

Key Factors Driving the Sell-Off

Market experts attribute this prolonged selling pressure to a combination of global and domestic factors:

1. U.S. Trade Policy Uncertainty

The uncertainty surrounding U.S. trade policies under President Donald Trump has raised concerns about a potential tariff-induced recession. This has significantly dampened global risk appetite, prompting FPIs to adopt a more cautious stance toward emerging markets like India.

2. Higher U.S. Bond Yields

Elevated U.S. bond yields coupled with a strong dollar have made American assets more appealing to international investors. This shift in relative attractiveness has led to capital outflows from emerging markets, including India, as investors reallocate their portfolios toward higher-yielding dollar-denominated assets.

3. Indian Rupee Depreciation

The depreciation of the Indian rupee against the U.S. dollar has further exacerbated this trend. A weaker rupee erodes returns for foreign investors when converted back to their home currencies, making Indian investments less attractive in comparative terms.

4. Outperformance of Chinese Markets

Market strategists have highlighted that FPI outflows from India have been mainly redirected toward Chinese stocks, which have been outperforming other markets in 2025. This rotation reflects tactical asset allocation decisions by global fund managers seeking better short-term returns.

Debt Market Dynamics

While equity markets have faced significant outflows, the debt segment has shown a different trend. FPIs invested ₹7,355 crore in the debt general limit category during this period, indicating some level of confidence in Indian fixed-income securities.

However, they withdrew ₹325 crore from the debt voluntary retention route, suggesting a selective approach to different debt instruments.

Market Outlook and Implications

Looking ahead, market experts suggest that the recent decline in the dollar index might limit fund flows to the U.S. However, the heightened uncertainty triggered by escalating trade tensions between the U.S. and other nations is likely to push more money into safe-haven assets like gold and the U.S. dollar.

For Indian equity markets, this continued FPI selling has created significant headwinds. The impact is evident in the market performance, with the market capitalization of five of the top-10 most valued firms declining by ₹93,000 crore recently, with IT giants Infosys and TCS being hit particularly hard.

Historical Context

To put the current outflows in perspective, it's worth noting that 2022 saw a net outflow of ₹1.21 lakh crore amid aggressive rate hikes by global central banks. The current trend appears to be following a similar pattern, though driven by different macroeconomic factors.

For retail investors, these FPI trends underscore the importance of maintaining a long-term investment horizon and focusing on companies with strong fundamentals that can weather such periods of foreign investment volatility.

As global uncertainties persist, domestic institutional investors and retail participation will likely play crucial roles in providing stability to the Indian equity markets in the near term.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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India's Forex Reserves Surge by USD 15.26 Billion, Largest Jump in Two Years

India's foreign exchange reserves have registered a remarkable increase of USD 15.267 billion, reaching a substantial total of USD 653.966 billion for the week ending March 7, 2025. This impressive growth represents the largest weekly jump in the country's forex reserves in over two years.

Strategic RBI Intervention Boosts Reserves

This significant surge comes after a period of decline, with the previous week having witnessed a decrease of USD 1.781 billion that had brought the reserves down to USD 638.698 billion. The recent upswing can be largely attributed to a strategic monetary policy move by India's central bank.

A key factor driving this remarkable increase was a USD 10 billion forex swap executed by the Reserve Bank of India (RBI) on February 28. Through this operation, the central bank purchased dollars in exchange for rupees—a calculated intervention designed to:

• Ease liquidity conditions in the financial markets
• Stabilize currency fluctuations
• Strengthen India's foreign exchange position
• Provide additional monetary policy tools during a volatile global economic period

Component-Wise Analysis of the Forex Reserves

The overall increase in reserves was spread across multiple components, with foreign currency assets showing the most substantial growth:

• Foreign Currency Assets (FCAs): Increased by USD 13.993 billion to reach USD 557.282 billion
• Gold Reserves: Rose by USD 1.053 billion to stand at USD 74.325 billion
• Special Drawing Rights (SDRs): Climbed by USD 212 million to USD 18.21 billion

It's worth noting that FCAs, which constitute the largest portion of India's forex reserves, include the effect of appreciation or depreciation of non-US currencies such as the euro, British pound, and Japanese yen held in the reserves.

The only component that experienced a slight decline was India's reserve position with the International Monetary Fund (IMF), which decreased by USD 69 million to USD 4.148 billion.

Historical Context and Future Outlook

This impressive growth comes after a period during which India's forex reserves had been trending downward due to market interventions by the RBI and currency revaluation effects. For context, India's forex reserves reached their all-time high of USD 704.885 billion in September 2024.

The current recovery signals several important developments for the Indian economy:

• Enhanced ability to manage external economic shocks
• Improved capacity to service external debt obligations
• Greater confidence in the stability of the Indian rupee
• Strengthened position for the RBI to intervene in currency markets if necessary

Financial analysts view this substantial increase as a positive indicator of India's economic resilience amid global uncertainties. The robust forex reserves provide a crucial buffer against potential currency volatility and external economic pressures that could affect the country's financial stability.

As global economic conditions continue to evolve, these strengthened reserves position India favorably to navigate potential challenges in international financial markets while supporting its growing economy.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Gold Price Hits Historic High of Rs 91,000 Per 10 Grams Ahead of Wedding Season

Gold prices have surged to unprecedented levels in India, crossing the Rs 91,000 per 10 gram mark just as the wedding season approaches. This historic milestone has created a buzz in major gold markets across Maharashtra, with traders in Nashik and Jalgaon predicting that prices may climb even higher in the coming days.

Record-Breaking Gold Prices

The yellow metal reached a remarkable Rs 91,052 per 10 grams (including taxes) on Saturday, following Friday's even higher rate of Rs 91,600. This price surge represents a significant milestone in India's gold market history and comes at a crucial time when demand typically increases due to the wedding season.

Market experts attribute this price movement to several factors:

• International market fluctuations
• Recent U.S. actions affecting global trade
• Increased investor preference for gold as a safe-haven asset
• Seasonal wedding demand

Jalgaon: Maharashtra's Premier Gold Hub

Despite the soaring prices, Jalgaon continues to maintain its reputation as one of Maharashtra's premier destinations for gold purchases. The city has established itself as a trusted gold market that attracts buyers from:

• Various regions of Maharashtra
• Neighboring Gujarat
• Madhya Pradesh

The city's gold market is distinguished by two key factors that continue to draw customers even during price surges:

• Guaranteed purity of gold products
• Exceptional craftsmanship and design quality

A prominent jeweler based in Jalgaon, offered insights on current market trends: "The market rate for 10gm gold on Saturday was Rs 91,052, including tax. On Friday, it was 91,600. The market price is responding to international developments, including the US action on trade. Even today, many people consider gold the best investment option."

Consumer Behavior Amid Rising Prices

What makes the current market situation particularly interesting is consumer response to these elevated prices. Despite the significant increase in gold rates, demand remains relatively stable, especially for wedding-related purchases.

Man who was in the market shopping for his daughter's upcoming wedding, reflected the sentiment of many buyers: price increases minimally affect purchasing decisions for important occasions. There's a widespread belief among consumers that gold values will continue to appreciate, reinforcing its position as both a cultural necessity and a sound investment.

Competitive Market Benefits Consumers

An unexpected advantage for gold buyers in Jalgaon is the intense competition among local jewelers. This competitive environment works in favor of customers by ensuring:

• Higher quality products
• Better craftsmanship
• More competitive pricing despite the overall market trend
• Enhanced customer service

As the wedding season progresses, market observers will be watching closely to see if gold prices stabilize or continue their upward trajectory. For now, the historic Rs 91,000 mark stands as a significant milestone in India's ongoing relationship with the precious metal that has been central to its cultural and financial traditions for centuries.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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