New Era for UK-India Trade

• Headline indices Nifty and Sensex ended lower on Tuesday, May 6, snapping a two-day winning streak as broad-based losses—particularly in pharma stocks—weighed on sentiment. The decline followed an executive order by U.S. President Donald Trump aimed at boosting domestic drug manufacturing, which pressured Indian pharma shares.

• Auto stocks provided some support, led by gains in Mahindra & Mahindra, but it wasn’t enough to offset overall weakness.

• Geopolitical concerns resurfaced amid reports of planned civil defence drills in India, raising fears of heightened tensions with Pakistan.

• On the trade front, Bloomberg reported that India has proposed zero tariffs on steel, auto components, and pharmaceuticals—up to a certain quota—as part of its ongoing negotiations with the U.S.

• Investor sentiment, however, remains underpinned by hopes that India could be among the first countries to secure a trade agreement with the U.S., helping sustain the recent rally in equities.

Bajaj Consumer Care +2.88%

• Bajaj Consumer shares pared early gains after rising 5% on reporting a revenue of ₹250 crore for the March quarter.

• Standalone net profit stood at ₹30.98 crore, reflecting supportive investor sentiment.

Cummins India (4.92%)

• Cummins India shares fell nearly 5%, marking their steepest drop in nine months and ranking among the top losers on the Nifty Midcap index.

• The decline came after the parent company withdrew its 2025 guidance during an earnings call, citing tariff-related uncertainties.

India & UK agree Free-Trade-Agreement (FTA) after 3 years of Talks

• New FTA significantly cuts tariffs on most goods traded between India and the UK.

• UK benefits from reduced tariffs on products like whisky and cars; India gains in sectors like textiles and seafood.

• The agreement facilitates easier movement of professionals between the two countries.

• Bilateral trade is projected to increase substantially, boosting both economies and creating jobs.

• Consumers in both nations can expect a wider range of products and potentially lower prices.

• The FTA strengthens the economic partnership and strategic ties between India and the UK.

• Sources - ET, BBC

• Ather Energy shares close 8.3% below listing price on debut day. (YS)

There are no mainboard IPOs this week.

M&A / Investments

• UK's BII will take a 10% stake in ReNew Solar for ₹870 crore ($103Mn). (BS) 

• KPIT will acquire Caresoft's engineering unit for ₹1,610 crore ($191Mn). (ET)

• TPG to acquire 35% stake in SCHOTT Poonawalla from Serum Institute. (YS)

• BrowserStack acquires Requestly. (EN)

Debt

• Mindspace REIT plans to raise ₹1,800 crore ($213Mn) via debt, CPs. (BS)

• BharatPe Raises ₹125 crore ($14.8Mn) Debt From Neo Group, Trifecta. (Inc42)

VC