News Nook: Jun 6, 2025

 Indian Sector Specific News:

A) BFSI:

1) Govt Urges States to Protect Bank Staff

• Financial Services Secretary M Nagaraju urged states to take strict legal action against those harassing bank staff, ensuring uninterrupted banking for citizens and businesses.
• He highlighted recent incidents of abuse against bank employees and stressed the need to uphold public trust in the banking system.
• Source: Economic Times

2) Flipkart Becomes First Indian E-com Giant with NBFC Licence

• Flipkart has received RBI approval to operate as an NBFC, allowing it to directly lend to customers and sellers via its platform and fintech app, super.money.
• This move marks a strategic shift from partner-led lending to direct credit offerings, aiming to enhance user experience and transform e-commerce finance.
• Source: Business Today

3) RBI Cuts CRR by 100 bps to Boost Liquidity

• RBI reduced the Cash Reserve Ratio from 4% to 3% in four tranches, injecting ₹2.5 lakh crore into the banking system by November 2025 to lower funding costs and support credit growth.
• Governor Sanjay Malhotra said the early announcement was aimed at assuring banks of liquidity, strengthening macroeconomic stability.
• Source: CNBCTV-18

4) SEBI Issues Strict ESG Bond Guidelines to Curb Purpose-Washing

• SEBI notified a new framework effective June 5, 2025, for social, sustainability, and sustainability-linked bonds (excluding green bonds), ensuring clear use-of-proceeds, mandatory disclosures, and external reviews to prevent misuse and boost ESG transparency.
• The rules bar ESG-tagged funds from being used for harmful activities and require annual impact reports, aligning India’s ESG debt standards with global benchmarks.
• Source : CNBCTV-18

5) SEBI Warns NSDL Over Compliance & Cyber Alert Failures

• SEBI issued two warning letters to NSDL citing lapses in IPO-related demat account visibility and inadequate testing of new file formats, as well as failure to effectively track and resolve cyber alerts.
• NSDL clarified there was no financial or operational impact, but SEBI urged stronger asset monitoring and compliance controls to prevent future risks.
• Source: Business Standard

B) Automobile:

1) 25 Auto Dealers in UP Lose Licenses for Registration Lapses

• For the first time, the UP Transport Department suspended trade licenses of 25 auto dealers for one month due to persistent failure in vehicle registration compliance despite prior warnings and show-cause notices.
• Dealers across multiple districts are barred from sales and registration uploads on the VAHAN portal, as part of efforts to enhance transparency in public service delivery.
• Source: Hindustan Times

C) Pharma:

1) API Prices Drop, Easing Pressure on Pharma Industry

• Prices of key active pharmaceutical ingredients (APIs) have fallen sharply, offering relief to Indian drugmakers struggling with high input costs over the past year.
• The decline in prices is expected to improve margins for pharma companies and stabilize production costs, aiding the sector’s financial recovery.
• Source: Economic Times

D) Agriculture:

1) Agri Minister Engages with Punjab Farmers Under ‘Viksit Krishi Sankalp Abhiyan’

• Union Agriculture Minister Shivraj Singh Chouhan interacted with Punjab farmers on Day 8 of the campaign, highlighting scientific farming practices like direct seeding of paddy, balanced pesticide use, and the region’s horticulture potential.
• Chouhan affirmed that future agricultural policies will be based on field data from this nationwide initiative aimed at increasing productivity, reducing costs, and preserving natural resources.
• Source: PIB 

E) Energy:

1) OPEC+ Giants Boost Oil Supply to India

• OPEC+ countries have increased oil exports to India amid global supply adjustments, enhancing India’s energy security and helping stabilize domestic fuel prices.
• The move comes as India remains one of the largest oil importers, with OPEC+ playing a key role in meeting its growing energy demand.
• Source: Economic Times

F) IT:

1) IT Hiring Declines for 5th Straight Month in May 2025

• India’s IT services sector saw a 4.8% YoY and 3.2% MoM dip in hiring during May 2025, marking the fifth consecutive monthly decline amid global uncertainty and cautious client spending.
• While fresher hiring and cost optimization continue, demand is rising in niche roles like AI/ML, indicating a shift toward specialized, need-based recruitment.
• Source: Financial Express

2) IT Stocks Lead FII Outflows of ₹2,725 Crore in Late May; Banks and Auto Also See Sell-Off

• Foreign institutional investors (FIIs) pulled out ₹2,725 crore from Indian markets in the latter half of May 2025, with IT stocks facing the largest outflows amid global growth concerns and subdued tech spending.
• Besides IT, sectors like banking and automobile also saw significant selling pressure, reflecting cautious investor sentiment on economic and policy uncertainties.
• Source: Economic Times
  

G) Infrastructure:

1) Mumbai-Nagpur Samruddhi Expressway to Boost Maharashtra’s Economy and Real Estate

• The expressway cuts travel time between Mumbai and Nagpur from 18 to 8 hours, enhancing connectivity and driving growth in industrial, logistics, tourism, and real estate sectors along the route.
• It links with major corridors like the Delhi-Mumbai Industrial Corridor, boosting trade, while benefiting hospitality and tourism, especially near temple towns like Shirdi.
• Source: Hindustan Times

2) India’s EV Ecosystem to Need Over 6,000 Acres of Land by 2030

• India will require between 5,760 and 6,852 acres of land for EV manufacturing, lithium-ion battery production, and public charging infrastructure, driven by projected sales of 25.3 to 31.8 million EVs by 2030.
• Investments of USD 7.5 to 9 billion are expected to transform India’s industrial and logistics real estate, with significant growth in manufacturing facilities, battery capacity, and charging stations.
• Source: Auto Car Pro

Indian Economy and Government Initiatives:

• RBI cuts repo rate by 50 basis points, lowers inflation forecast to 3.7%, and shifts policy stance to neutral amid global uncertainties and a focus on sustaining growth momentum.
• India is negotiating fiscal incentives with companies to build long-term stockpiles and boost domestic production of rare earth magnets, aiming to reduce reliance on China, which controls 90% of global magnet processing and recently restricted exports.

Indian Stock Market Update:

• Experts expect the Indian stock market to consolidate with a positive bias, supported by global market trends, macroeconomic indicators, and progress in US-India trade talks; Nifty 50 closed higher at 24,750 with strong performances in mid-cap and small-cap indices.
• Global markets saw declines with the US indices falling due to geopolitical tensions and weak economic data, while crude oil prices advanced, impacting market sentiment worldwide.

Bonus Briefs:

• CEO Elon Musk’s controversial political statements have hurt Tesla’s brand image, causing some customers to lose trust amid fierce EV market competition.
• Qualcomm is preparing for Apple to stop using its modem chips after 2027, focusing on growth in other markets like Android as Apple plans to develop its own modem technology.