Morning Choice: August 29, 2025 By Choice Broking
India’s economy likely slowed in April-June ahead of US tariff blow
India’s GDP likely slowed to 6.7% in April–June from 7.4% in the prior quarter, weighed down by weak urban demand and sluggish private investment, though strong government spending and a good monsoon offered support. The U.S. has doubled tariffs on Indian exports to as high as 50%, raising risks for labour-intensive sectors like textiles, footwear and food items. Economists warn prolonged tariffs could shave up to 0.7 percentage points off growth, though the government plans tax cuts and sectoral support to cushion the impact. Nominal GDP growth and corporate revenues have also softened amid multi-year low inflation.
Core inflation in Japan’s capital slows but stays above BOJ target
Tokyo’s core inflation eased to 2.5% in August from 2.9% but stayed above the BOJ’s 2% target, keeping ratehike expectations alive. Factory output fell 1.6% in July and retail sales rose just 0.3%, highlighting growth strains as U.S. tariffs weigh on exports. Food and services inflation remained sticky, while a labour shortage pushed unemployment down to 2.3%, adding wage pressures. Economists increasingly expect the BOJ to raise rates again later this year despite fragile recovery risks.
ECB policymakers split on risks to inflation, July accounts show
ECB policymakers were split in July on whether inflation risks were tilted up or down, even as they held rates at 2% and signalled cuts may resume in autumn if growth weakens under U.S. tariffs. Some members argued downside risks justified an immediate cut, while others pointed to resilient growth, sticky services inflation, and potential tariff-driven supply shocks. U.S. tariffs of 15% came in line with ECB expectations, easing worst-case fears, while the euro’s structural appreciation added to uncertainty. Overall, the ECB saw policy uncertainty persisting as a key risk to the outlook.
Dollar weakens as September Fed cut bets grow
The dollar weakened on Thursday as traders raised bets on a Fed rate cut next month after NY Fed chief John Williams signaled easing was possible, while Trump’s attempts to oust Fed Governor Lisa Cook added pressure. The greenback trimmed losses after upbeat U.S. jobless claims and GDP data but still slipped, with the euro up 0.43% and sterling 0.13%. Markets now price in an 85% chance of a September cut, with PCE inflation and payrolls data set to be key. The dollar index fell 0.34% to 97.83, hitting lows against the yen and offshore yuan, as political and trade uncertainties linger.
China extends anti-dumping duties on phenol imports from US, EU, South Korea, Japan and Thailand
China has extended anti-dumping duties on phenol imported from the United States, the European Union, South Korea, Japan, and Thailand for five years, effective August 29, China’s commerce ministry said in a statement on Thursday
Hexaware Technologies
The IT services and solutions provider announced a strategic partnership with Replit, the leading agentic software creation platform, to revolutionize enterprise software development through secure, governed Vibe Coding
NTPC
The company has approved the transfer of its coal mining business to its wholly owned subsidiary, NTPC Mining.
Lemon Tree Hotels
The company has signed a License Agreement for a new hotel property — Lemon Tree Hotel — in Mohkampur, Dehradun. The property will be managed by its subsidiary, Carnation Hotels.
Afcons Infrastructure
The flagship infrastructure engineering and construction company of the Shapoorji Pallonji Group said the Board has elevated existing Chairman Shapoorji Mistry as Chairman Emeritus, and Krishnamurthy Subramanian as Executive Chairman, while Pallon S. Mistry was inducted to the Board of Afcons.
Muthoot Finance
The company has infused Rs 500 crore in its wholly owned subsidiary, Muthoot Money, against the allotment of 3,25,139 shares on a rights basis. The additional equity infusion has been made in order to strengthen the capital base and improve the capital adequacy ratio.
CG Power and Industrial Solutions
The company's subsidiary, CG Semi Private, has launched its first outsourced semiconductor assembly and test (OSAT) facility in Sanand, Gujarat. CG Semi is investing over Rs 7,600 crore over five years to develop two facilities (G1 and G2) in Sanand.
AGI Infra
The company is going to acquire a 60% stake by investing Rs 30 crore in WorldNext Realty LLP.
Power & Instrumentation (Gujarat)
The company has received a work order worth Rs 9.5 crore from Sadashiv Projects India for the supply, erection, installation, testing, and commissioning of material for a 5.00 MWP ground-mounted solar project.
Allcargo Logistics
LCL (Less than Container Load) volume stood at 774 cubic meters in July, an increase of 10% over last month. FCL (Full Container Load) volume in July grew by 9% MoM and YoY to 59,443 TEUs.
Sammaan Capital
The company has raised $300 million via the allotment of $30,00,00,000 8.95% Senior Secured Social Bonds due 2028. The said bonds are expected to be listed on the Global Securities Market of India International Exchange (IFSC).
Everest Industries
The company has completed its investment of Rs 1.76 crore for 17.6 lakh shares (3.12% stake) in Amplus Ampere.
Shukra Pharmaceuticals - The company has received a Letter of Award (LoA) from HSCC (India) — a Government of India enterprise — for the supply of medicines and diagnostic kits to Afghanistan. The contract value is Rs 24.06 crore.
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