US-India Trade Talks Heat Up & Foreign Banks Eye Indian Goldmine

Welcome Back Investor!

The U.S. and India are close to finalizing a major trade agreement, with talks progressing ahead of a July 9 deadline. Key elements include tariff cuts on agricultural goods, increased defense purchases by India, and better market access for both sides. A U.S. delegation will visit New Delhi on June 5–6 to push negotiations forward. India's chief negotiator Rajesh Agrawal confirmed positive developments, signaling optimism for a mutually beneficial deal.

Let’s dive in!

But before we start!

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Today’s Market Menu

▪️ Impact News

▪️ Markets

▪️ Everything else you need to know today

▪️ Mindset

▪️ Stock Screener to up your game

IMPACT NEWS

India’s Banking Rules May Change Forever

India is poised to relax its stringent bank ownership rules, signaling a potential shift to attract more foreign investment into its financial sector. This move comes as the Reserve Bank of India (RBI) considers easing the current 15% cap on foreign ownership and the 26% voting rights limit, aiming to infuse long-term capital into the country's under-penetrated banking market.

A notable example of this trend is Japan's Sumitomo Mitsui Banking Corporation's recent acquisition of a 20% stake in Yes Bank, marking the largest cross-border financial deal in India's history. Additionally, foreign institutions like Canada's Fairfax Holdings and Emirates NBD are competing for a 60% stake in IDBI Bank, highlighting the growing international interest in India's banking sector.

RBI Governor Sanjay Malhotra has indicated a review of shareholding and licensing norms is underway, with the possibility of granting case-by-case exemptions and extended timelines for stake reductions. Analysts suggest that allowing foreign banks with strong governance to exceed current limitations through Indian-regulated subsidiaries could be a strategic move to bolster the sector.

However, any changes to voting caps would require legislative amendments by the finance ministry. These potential reforms aim to boost long-term capital inflow, addressing a key challenge for sustaining India's rapid economic growth.

MARKETS

Indian markets witnessed a broad sell-off across key indices. The Sensex dropped 636 points (-0.78%), Nifty 50 fell 174 points (-0.70%), and Bank Nifty slid 303 points (-0.54%), while the Midcap 100 also lost 258 points (-0.45%). This dip suggests growing investor caution possibly triggered by high valuations, global cues, or profit booking.
_{Closing figures as on 03.06.25 (3.30pm IST)}

🔎 In Focus

Stock Performance:

Top Gainers

✅ Grasim Industries gain +1.12% to ₹2,552.40 The stock rose after the company announced plans to raise up to ₹1,000 crore via non-convertible debentures, signaling confidence in future growth.

✅ Shriram Finance gain +0.89% to ₹648.25 Investor optimism about the company's growth prospects and positive market dynamics contributed to the stock's rise.

✅ Mahindra & Mahindra (M&M) gain +0.68% to ₹3,046.50 The stock gained following strong Q4 results, including a 22% year-on-year increase in net profit and a 24% rise in revenue.

✅ Bajaj Auto gain +0.58% to ₹8,563.00 Shares continued to benefit from strong Q3 earnings, with an 8% year-on-year rise in net profit and profitability in the electric vehicle segment, boosting investor confidence

Top Losers

🔻 Adani Ports & SEZ drop -2.43% to ₹1,432.30 Shares declined following reports of a U.S. probe into alleged illegal imports of Iranian LPG through Mundra Port.

🔻 Adani Enterprises drop -1.90% to ₹2,470.90 Similar to Adani Ports, the stock fell due to concerns over the U.S. investigation into Iranian LPG imports.

🔻 Bajaj Finserv drop -1.83% to ₹1,991.90 The stock declined amid broader market weakness in financials and lack of positive triggers.

🔻 Coal India Drop -1.71% to ₹392.85 Shares fell after reports of a 7.8% year-on-year decline in offtake for May and a 1.4% drop in production, raising concerns about demand and inventory levels.

INDIA FRONTIER

Everything else you need to know today

⚠️ Overheating: Sanjeev Prasad of Kotak warns that the recent rally in small and midcap stocks might be skating on speculative ground. With lofty valuations and shaky earnings, he sees more downside ahead urging caution before chasing momentum.

🌀 Volatility: Geopolitical tensions have gold prices bouncing like a yo-yo, keeping investors on edge. Experts say this volatility highlights the need for smart diversification not just in metals but across asset classes.

🚀 Expansion: Tata Electronics is reportedly eyeing a chip fab acquisition in Malaysia marking a bold move to expand India’s semiconductor footprint overseas. If sealed, this could be a pivotal step toward turning Tata into a global chip powerhouse.

💸 Exit: Foreign investors are unloading Indian government bonds at a record pace this quarter, despite the global index inclusion buzz. Rising U.S. yields and currency risks seem to be spooking the herd.

THE HANOOMAAN INSTITUTE

Save More Without Sacrificing

In 2025, frugal living isn’t just about skipping lattes it’s about leveraging tools, habits, and mindset shifts that align with how we live today. From AI-driven savings to sustainable swaps.

Here are the top tips that are redefining smart living:

1. Automate Your Savings: Let apps like Oportun handle your savings in the background. It studies your spending and quietly sets aside extra cash no effort, no guilt, just growth.

2. Buy in Bulk, Save in Bunches: Bulk buying household essentials still works wonders. Think of it like investing: consistent, low-cost buying that pays off over time.

3. Your Library Is a Goldmine: Modern libraries offer free Wi-Fi, courses, digital tools even sewing machines and power tools! It’s like a subscription to life, for zero rupees.

4. Plan Your Plate, Protect Your Pocket: Meal prepping once a week saves you from last-minute takeout and wasted groceries. A little Sunday prep = a lot of weekday wins.

5. Eco-Saving Is the New Trend: Swapping to reusable items like cloth towels or water filters helps the planet and your bank account. Sustainability and savings now go hand in hand.

6. The 30-Day Rule: Before buying anything non-essential, wait 30 days. Chances are, the urge will pass and your money will stay put.

7. Always Ask for a Better Deal: Most bills streaming, internet, insurance have hidden discounts. Just ask. One phone call could mean thousands saved each year.

8. Quality Over Quick Fixes: A durable product may cost more upfront but saves big in the long run. Think like an investor, not a bargain hunter.

9. Sell What You Don’t Use: Got unused gadgets or furniture? Sell them online. You declutter, earn cash, and feel instantly lighter both physically and financially.

10. Share the Ride, Cut the Cost: Public transport or ride-sharing apps like BlaBlaCar and UberPool can save thousands annually. Bonus: less traffic stress and new connections.

🔍 Final Thought: Frugal living in 2025 isn’t about sacrifice it’s about strategy. With the right mindset and tools, you can live well, save more, and spend intentionally.

SUPERCHARGE YOUR INVESTING SKILLS

STOCK SCREENER TO UP YOUR GAME

Stocks that have been consistently paying out dividend sorted on highest yield.
by Pratyush

Dividend yield > 2 AND
Dividend Payout < 100% AND
( Profit growth 3Years > 10 OR
Profit growth 5Years > 10 OR
Profit growth 7Years > 10 ) AND
Average 5years dividend > 0 AND
Dividend last year > Average 5years dividend AND
Profit after tax > Net Profit last year * .8 AND
Dividend last year > .35

Thanks for reading.

Until tomorrow!

Hanoomaan India Business team

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