In a significant development, Vedanta Ltd. has revised its demerger proposal, deciding to retain its base metals undertaking. This move comes amidst a challenging market environment where the market capitalization of the top 10 firms in India has dropped by ₹4.95 lakh crore, with Tata Consultancy Services (TCS) and Reliance Industries being the hardest hit. The BSE Sensex experienced a steep decline of 4,091.53 points (4.98%) last week, while the Nifty index fell by 4.77% [58029fdd].
The backdrop of this revision includes signals from the US Federal Reserve, which has indicated that only two rate cuts are expected in 2025, contributing to a cautious investment climate. Despite these challenges, ICICI Securities has reported strong institutional flows in 2025, suggesting some resilience in the market [58029fdd].
In other business news, PhysicsWallah has signed a ₹1,000 crore deal with the Andhra Pradesh government for a University of Innovation, and BIMARU states are witnessing faster growth in mutual fund assets under management (AUM). Additionally, a record ₹1.8 trillion has been raised from IPOs in 2024, indicating a robust interest in new market entries [58029fdd].
The rupee has also shown some strength, rising to 85.03 against the USD, while various sectors are adapting to changing market conditions, including UltraTech Cement's acquisition of India Cements and FedEx's plans for an automated air cargo hub in India [58029fdd].