🇮🇳 India sets up import monitoring cell

Good morning. Have a great day today and if you start to feel the lull at any point, watch the music video of Fawad Khan’s new song from his latest Bollywood film 😍 

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🇮🇳 India sets up import monitoring cell

• 📉 SEBI cracks down on Gensol engineering

• 🗞️ Bite-sized summaries

  • ⚖️ Meta Antitrust Trial: Zuckerberg testifies again

  • 🚚 Swiggy’s new endeavor

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian markets surged on Tuesday following positive global cues and the RBI's repo rate cut. Financial services and auto sectors led the rally, with IndusInd Bank rising over 6%

🌍️ International

• US stocks closed slightly lower amid lingering tariff uncertainty and mixed performance across sectors. Boeing shares fell 2% due to US-China tensions, while tech stocks showed mixed results.

GLOBAL TRADE

🇮🇳 India sets up import monitoring cell

As global trade tensions escalate, particularly between the US and China, the Indian government is taking pre-emptive steps to safeguard its economy from a potential import surge. A newly formed inter-ministerial monitoring group will now closely track import trends, aiming to detect and mitigate risks from goods being diverted to India as exporters look to bypass steep US tariffs.

Why it matters

The backdrop to this move is the ongoing US-China trade war. With the US slapping 145% tariffs on Chinese goods, and China responding with 125% retaliatory tariffs, global trade flows are being rerouted. Exporters from countries like China, Vietnam, and Indonesia may now look to India as an alternative market to absorb excess goods.

India fears this could result in dumping of low-cost goods, harming domestic producers across sectors—from agriculture to manufacturing. The monitoring group, consisting of officials from the Commerce Department, DGFT, CBIC, DPIIT, and other ministries, will analyze weekly and monthly data by country and commodity to identify sudden spikes.

If such surges are found, the government may respond with anti-dumping or safeguard duties.

Implications for India

1. Shielding Domestic Industry: Vigilant monitoring and potential tariff barriers will help protect Indian manufacturers and farmers from unfair competition.

2. Export Opportunities: As US and Chinese markets become less accessible to each other, India can position itself as an alternative supplier, especially in sectors like electronics, pharma, textiles, and agriculture.

3. Need for Policy Agility: The establishment of a helpdesk for exporters and importers reflects India’s need to respond swiftly to shifts in global trade dynamics.

4. Risk of Trade Tensions: While the move is defensive, India may face friction with trade partners if duties are perceived as protectionist.

In essence, India’s proactive setup of a trade defense mechanism is a signal of its growing maturity in handling global economic shocks—balancing the line between opportunity and caution.

Read more: Economic Times

SEBI

📉 SEBI cracks down on Gensol engineering

In a major enforcement action, the Securities and Exchange Board of India (SEBI) has issued an interim order against Gensol Engineering Ltd. and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, citing severe financial mismanagement, diversion of funds, and forged documentation.

Key Allegations:

• ₹975 crore in loans, intended for electric vehicle procurement, were only partially used as intended.

• Over ₹200 crore was funneled through a car dealer and cycled back to promoter-linked entities, some of which was spent on luxury real estate and unrelated personal expenses.

• Forged documents were submitted to credit rating agencies to mask defaults and inflate financial health.

• SEBI said the promoters treated the listed company like a private piggy bank, violating corporate governance norms.

"There is a complete breakdown of internal controls... Funds were routed to related parties and used for unconnected expenses," the order said.

Regulatory Actions:

• Promoters barred from acting as directors or KMPs.

• Gensol and linked entities banned from trading in the securities market until further notice.

• SEBI is acting to protect retail investors, especially in light of a recent 1:10 stock split that could lure new buyers.

Market Reaction:

• Gensol’s shares fell 2.66% on Tuesday, closing at ₹129.

• The stock is down 83% year-to-date, after hitting a 52-week high of ₹1,124.

Once hailed as a rising star in India’s clean energy and EV leasing space, Gensol had posted rapid growth:

• Revenue grew from ₹61 crore (FY17) to ₹1,152 crore (FY24).

• Net profit jumped from ₹2 crore to ₹80 crore in the same period.

But the collapse in promoter shareholding from 70.72% to 35% over FY20–FY25, paired with the fund diversion, raised red flags.

This case adds to growing concerns around corporate governance in mid-cap and small-cap companies in India. For investors, it’s a cautionary tale: rapid growth without accountability can come at a high cost.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

⚖️ Meta Antitrust Trial: Zuckerberg testifies again - Mark Zuckerberg returned to the stand Tuesday in a pivotal US antitrust case, where Meta is accused of acquiring Instagram (2012) and WhatsApp (2014) to neutralize potential competition. The FTC alleges these buyouts were strategic moves to stifle rivals before they grew. Central evidence includes Zuckerberg calling Instagram “really scary” in internal emails, suggesting urgency to acquire it. If Meta loses, it could be forced to divest Instagram and WhatsApp. Zuckerberg’s lobbying efforts and Meta’s argument that its apps face stiff competition from TikTok, YouTube, and others remain key defense points. The trial hinges on how the court defines Meta's actual market power.

🚚 Swiggy’s new endeavor - Swiggy has launched Pyng, a new standalone app that connects users with white-collar professionals like tax planners, yoga trainers, mental health experts, and astrologers. Currently live in Bengaluru, the app uses AI to match users with the right experts. It features over 1,000 professionals across 100 services. Pyng is part of Swiggy’s strategy to create separate apps for different needs, following its earlier Instamart launch. Unlike Urban Company, which focuses on handymen, Pyng targets consultative and lifestyle services. The platform has seen early interest in wellness and hobby-related offerings like music and dance. Swiggy went public in November 2024.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• National Herald Case: ED files chargesheet against Sonia Gandhi, Rahul Gandhi; Congress reacts.

• Goldman Sachs acquires controlling stake in HR SaaS firm PeopleStrong for $130 million.

• India is well placed to navigate world challenges: ITC Chairman.

• India to be center point of connectivity: Jyotiraditya Scindia.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Priyanka Chopra teams up with Baywatch co-star Zac Efron for a new comedy.

• IPL 2025: PBKS beat KKR by 16 runs. Leaderboard here.