Business

 Renault Group on Friday (August 1, 2025) said it has acquired  Nissan’s remaining 51% stake in their joint plant in Chennai (Renault Nissan Automotive India Private Ltd – “RNAIPL”), thus becoming its sole owner.

Meanwhile, Stéphane Deblaise is appointed as chief executive officer of Renault Group in India, effective September 1, 2025.

 Renault Group now fully owns its Chennai plant and the strategic move strengthens the group’s ambition to make India a key pillar of its international growth, the company said in a statement.

Renault Group also relies on an engineering center based in India, jointly owned with Nissan, which plays an active role in developing and adapting vehicles to meet the needs of both local and international markets.

The cooperation with Nissan will continue in this new context. In particular, RNAIPL will keep producing Nissan models as planned, it said.

“With full ownership of our plant in Chennai, we now have all the means to accelerate in India. Stéphane Deblaise, with his strong international experience and deep knowledge across our entire value chain, is ideally positioned to design and implement our strategy in the region.”, said François Provost, CEO Renault Group.

Stéphane Deblaise joined Renault Group in 2000 and  has held several strategic positions within the Group’s international operations.

Stéphane will build on the expertise he developed in South Korea since 2022, where he led a major transformation of the business — notably by positioning the Busan site as an industrial and technological hub and repositioning the Renault brand in the Korean market, the company said.

As part of its International Game Plan 2027 strategy, the Renault brand is accelerating its expansion in India, a  fast-growing market, where more than 50% of the population is under the age of 28, the statement said.

 As the world’s third-largest automotive market, India stands out as a crucial territory — a driver of innovation, a source of inspiration for new generations, and a major player in the transformation of the automotive sector, it added.

Since its launch in 2010, the Chennai plant has produced over 2.8 million vehicles — including 1.2 million exported to more than 100 countries — as well as 4.6 million engines and gearboxes. Supported by an ecosystem of nearly 300 local suppliers, the plant has an annual production capacity of over 400,000 vehicles.

The Renault brand is established in India with more than 350 sales outlets and 450 service points across the country.

On a day when U.S. President Donald Trump signed an executive order to levy 25% tariff on Indian imports, the Ministry of External Affairs has said the partnership between both the nations has “weathered several transitions and challenges.”

We remain focused on substantive agenda that India and U.S. have committed to, Randhir Jaiswal, official spokesperson, Ministry of External Affairs during a weekly media briefing in New Delhi on Friday (August 1, 2025).

Expressing confidence that the India-U.S. ties will continue to move forward, Mr. Jaiswal said, “India, US share comprehensive global strategic partnership anchored in shared interests, democratic values, robust people-to-people ties.”

He also pointed out that the defence ties between India and the United States have strengthened over the last several years. “There is potential for India-U.S. defence partnership to grow further,” he added.

On reports that Washington is unhappy with India buying oil from Russia, the Ministry Spokesperson said India is guided by what is on offer in markets and prevailing global situation, in securing the nation’s energy needs.

Equity benchmark indices Sensex and Nifty declined sharply for the second straight session on Friday (August 1, 2025), tracking deep losses in metal, IT and telecom stocks amid trade-related concerns and widespread selling pressure in global markets.

Besides, persistent selling by foreign investors added to the gloom, according to experts. In a volatile trade, the 30-share BSE Sensex tumbled 585.67 points or 0.72% to settle at 80,599.91. During the day, it dropped 690.01 points or 0.84% to 80,495.57.

The 50-share NSE Nifty declined 203 points or 0.82% to 24,565.35.

U.S. President Donald Trump unveiled sweeping new tariffs on dozens of countries, including 25% duties for goods from India, marking a new era of American protectionism that triggered fresh tensions and concerns over a much wider disruption in the global trade landscape.

From the Sensex firms, Sun Pharma tumbled 4.43% after the company reported a 20% year-on-year decline in consolidated net profit to ₹2,279 crore for the first quarter ended June 30, 2025.

Tata Steel, Maruti, Tata Motors, Infosys, Bharti Airtel and Tech Mahindra were also among the laggards.

However, Trent, Asian Paints, Hindustan Unilever, ITC, Kotak Mahindra Bank, and Reliance Industries were the gainers.

The U.S. President signed an executive order on Thursday that raised tariffs for over five dozen countries, with Washington’s negotiations for trade deals going down to the wire ahead of the August 1 deadline.

In the Executive Order titled ‘Further Modifying The Reciprocal Tariff Rates’, Mr. Trump announced tariff rates for nearly 70 nations.

A 25% “Reciprocal Tariff, Adjusted” has been imposed on India, according to the list released. The order, however, does not mention the “penalty” that Mr. Trump had said India would have to pay because it purchases Russian military equipment and energy.  While August 1 was the tariff deadline, the new levies will come into effect from August 7.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹5,588.91 crore on Thursday, according to exchange data.

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng settled lower.

Equity markets in Europe were trading in the red. The U.S. markets ended in negative territory on Thursday.

Global oil benchmark Brent crude declined 0.39% to $71.42 a barrel.

On Thursday, the Sensex declined 296.28 points or 0.36% to settle at 81,185.58. The Nifty dropped 86.70 points or 0.35% to 24,768.35.

The rupee appreciated 12 paise to close at 87.53 (provisional) against the U.S. dollar on Friday (August 1, 2025), on lower crude prices and suspected RBI interventions as U.S. President Donald Trump’s sweeping new tariffs triggered fresh concerns over a much wider disruption in the global trade landscape.

Forex traders said the U.S.’ imposition of a 25% tariff on Indian exports triggered risk-off sentiment and heightened concerns regarding further rupee depreciation.

On Wednesday, Mr. Trump announced the 25% tariff on India and an additional penalty for New Delhi’s purchases from Russia.

While August 1 was the tariff implementation deadline, the new levies will come into effect from August 7.

At the interbank foreign exchange, the domestic unit opened at 87.60 against the greenback, touching an intra-day high of 87.20 against the American currency.

At the end of Friday’s trading session, the local unit settled at 87.53 (provisional), up 12 paise over its previous closing price.

On Thursday, the rupee recovered 15 paise from an all-time low level to close at 87.65 against the U.S. dollar.

“Mixed to positive economic data from the U.S. supported the greenback. However, Rupee pared initial losses on softening crude oil prices and reports of intervention by the RBI at record low levels,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.26% to 100.23.

Brent oil prices fell 0.31% to $71.48 per barrel, as traders digested the impact of new, higher U.S. tariffs that may curtail economic activity and lower global fuel demand.

“We expect the rupee to remain weak. The domestic market remained weak, dented market sentiments on the back of the ongoing trade deal limbo. FII outflows may further pressurise the rupee. Traders may take cues from non-farm payrolls reports from the U.S. USD-INR spot price is expected to trade in a range of 87.15 to 88,” Mr. Choudhary said.

In the domestic equity market, the 30-share BSE Sensex declined 585.67 points, or 0.72%, to close at 80,599.91, while the Nifty fell 203.00 points, or 0.82%, to settle at 24,565.35.

Foreign institutional investors (FIIs) offloaded equities worth ₹5,588.91 crore on a net basis on Thursday, according to exchange data.

Meanwhile, India’s manufacturing sector growth strengthened in July to a 16-month high of 59.1, supported by faster increases in new orders and output amid favourable demand conditions, a monthly survey said on Friday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index rose from 58.4 in June to 59.1 in July, signalling the strongest improvement in the health of the sector since March 2024.

On the domestic macroeconomic front, the centre’s fiscal deficit stood at 17.9% of the full-year target at the end of June, according to data released by the Controller General of Accounts (CGA) on Thursday.

It was at 8.4% of the Budget Estimates (BE) of 2024-25 in the first three months of the previous financial year.

In absolute terms, the fiscal deficit, or gap between the government’s expenditure and revenue, was ₹2,80,732 crore in the April-June period of the 2025-26 fiscal year.

Aviation turbine fuel (ATF) prices were hiked 3% on Friday (August 1, 2025), while the price of commercial LPG cylinders was reduced ₹33.50, in line with fluctuations in international benchmark rates.

Jet fuel (ATF) price was increased by ₹2,677.88 per kilolitre, or 2.9%, to ₹92,021.93 per kl in the natonal capital — home to one of the busiest airports in the country, according to state-owned fuel retailers.

The increase comes on back of a steep 7.5% (₹6,271.5 per kl) hike last month, adding to operating cost of airlines.

The hike in July came after three monthly reductions starting April. In all, prices had been cut ₹12,239.17 per kl in the three reductions. The subsequent increases (₹8,949.38 per kl) has wiped away almost three-fourths of the gains.

The increase in ATF price is in line with the spurt in international oil rates that followed geopolitical tensions and trade wars.

This increase will add to the burden on commercial airlines, for whom fuel makes up for almost 40% of the operating cost.

No immediate comments could be obtained from the airlines on the impact of the price hike.

The ATF price in Mumbai was hiked to ₹86,077.14 per kl from ₹83,549.23, while those in Chennai and Kolkata were increased to ₹95,512.26 and ₹95,164.90 per kl, respectively.

Rates differ from city to city, depending on incidence of local taxes such as VAT.

Alongside, oil firms reduced the price of commercial LPG by ₹33.50 per 19-kg cylinder. Commercial LPG now costs ₹1,631.50 in the national capital.

This is the fifth straight reduction in commercial LPG rates. Prices were last reduced by ₹58.5 per 19-kg cylinder on July 1. Prior to that, prices were reduced by 24 on June 1, by ₹14.50 cut on May 1, and a ₹41 per cylinder reduction was effected on April 1. In all, prices have been cut by ₹171.5 per bottle since April.

While oil prices have been on the boil, benchmark LPG rates have softened because of low demand during summer months.

Prices of ATF and LPG differ from State to State, depending on the incidence of local taxes, including VAT.

The rate of cooking gas used in domestic households, however, remained unchanged at ₹853 per 14.2-kg cylinder. The price of the domestic LPG was hiked by ₹50 per cylinder in April.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) revised prices of ATF and cooking gas on the first of every month based on the average price of benchmark international fuel and foreign exchange rate.

Domestic rates of petrol and diesel continue to remain frozen. Rates were cut by ₹2 per litre in mid-March last year, ahead of the general elections. Petrol costs ₹94.72 a litre in Delhi, while diesel is priced at ₹87.62.

Big Tech deals to acquire skills rather than major companies may soon come under the regulatory scrutiny they previously avoided, the outgoing head of the European Commission’s antitrust unit said.

Acquihires, in which Big Tech hires start-ups’ founders and senior managers rather than acquire the companies, have been viewed by antitrust regulators as an attempt to evade merger rules.

“It is important to preserve effective competition,” Olivier Guersent, the director general at the competition unit, told Reuters in an interview earlier this week and ahead of his retirement on Thursday after a 33-year career tackling antitrust, cartels and financial services.

He said the Commission was pushing national agencies with call-in powers to act. Such powers, enjoyed by Denmark, Hungary, Ireland, Italy, Sweden, Slovenia, Lithuania and Latvia, allow them to refer below-EU threshold mergers to the EU enforcer.

“So we need to be patient and have enough member states that have call-in provisions and use them. But we are working on it. Within the ECN, we are actively encouraging it to do so,” Guersent said. The European Competition Network is a forum for cooperation between the Commission and national regulators.

Guersent said acquihires can be considered a merger as staff are part of a company’s assets.

Instances include Microsoft’s $650 million deal to hire most of AI start-up Inflection’s staff, including its co-founders and Google’s poaching of employees from chatbot startup Character.AI, both last year.

Last month Google hired staff members from AI code generation startup Windsurf.

Amazon hired AI firm Adept’s co-founders and some of its team in June last year, while Meta poached data-labelling startup Scale AI’s CEO in June after taking a multi-billion dollar stake.

Guersent, who spearheaded the EU’s landmark Digital Markets Act that aims to curb Big Tech’s power, said the results were encouraging.

“It made a difference in fields in which decades of antitrust enforcement have not managed to make a difference,” he said.

“Did it change everything as much as we would have liked? Probably not. So that’s why success is always relative,” he said, contrasting Apple’s changes to its closed ecosystem with Meta’s pushback.

India’s manufacturing sector growth strengthened in July to a 16-month high of 59.1, supported by faster increases in new orders and output amid favourable demand conditions, a monthly survey said on Friday (August 1, 2025).

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index rose from 58.4 in June to 59.1 in July, signalling the strongest improvement in the health of the sector since March 2024.

In the Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

“India recorded a 59.1 manufacturing PMI in July, up from 58.4 during the prior month. This marked a 16-month high for the Indian manufacturing sector, which benefited from strong growth in new orders and output,” Pranjul Bhandari, Chief India Economist at HSBC, said.

As per the survey, overall sales rose at the fastest pace in close to five years. Subsequently, production growth strengthened to a 15-month high in July and outpaced the series trend.

Indian manufacturers remained confident of a rise in output over the course of the coming 12 months, but the overall level of positive sentiment fell to its lowest mark in three years.

“… Business confidence fell to its lowest level in three years due to concerns over competition and inflation. Indeed, input and output prices in India’s manufacturing sector both remained elevated during July,” Bhandari said.

Companies continued to hire extra staff at the start of the second fiscal quarter, but they did so to the least extent in eight months.

Moreover, a vast majority of panellists (93 per cent) indicated that employment numbers were sufficient for current requirements. Indeed, outstanding business volumes increased only marginally in July.

“Amid softening business confidence, Indian manufacturers hired extra staff at the slowest rate since November 2024,” Bhandari said.

Among the main headwinds to growth, survey members listed competition and inflation concerns.

On the price front, the survey said cost pressures intensified in July. Amid reports of greater aluminium, leather, rubber and steel prices, average input costs rose at a faster pace than in June.

According to panel members, favourable demand conditions facilitated upward adjustments to their fees, the survey said.

The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.

Sundram Fasteners Ltd reported first quarter standalone net profit of ₹138.35 crore, its highest ever, up about 5% when compared to ₹131.64 crore in the same period last year, amid challenges in its export market.

The company’s domestic sales increased 8.78% to ₹930.91 crore in the April-June quarter from ₹855.75 crore in the comparable period last year.

However, export sales declined to ₹379.14 crore in the first quarter of 2025-2026 from ₹422.65 crore in the same period last year.

Revenue from operations was at ₹1,350.17 crore in the April-June quarter, when compared to ₹1,310.33 crore in the year-ago period.

“Compared to the same period last year, we have grown propelled primarily by robust domestic demand across our key segments,” Arathi Krishna, Managing Director, Sundram Fasteners, said.

“Our export markets continue to pose challenges amidst global economic headwinds and ongoing geopolitical uncertainties,” she said.

“Despite these conditions, we remain confident in the competitive strength of our product portfolio and the durability of our long-term partnerships. We are further strengthening our foundation by prioritizing investments in innovation, capacity expansion, and customer engagement, ensuring we are well positioned for sustained growth in both India and International markets”, Ms. Arathi Krishna, added.

“We are closely monitoring the recent U.S. tariff decision. While the full impact is yet to unfold, I am confident in our ability to adapt and advance our presence in the U.S. market, reinforced by enduring customer relationships and our consistent commitment to quality,” she noted.

The Chennai-based Company’s consolidated revenue from operations ₹1,533.39 crore in the first quarter, while consolidated net profit was ₹147.94 crore in the first quarter 2025-2026.

Sundram Fasteners incurred capital expenditure of ₹ 71.48 crore in the first quarter.