Trump's Tax Plan: Billions at Risk for Indian Economy

• Indian stock market benchmarks, the Sensex and Nifty 50, fell over one percent on Tuesday, May 20, for the third session in a row.

• This occurred amid mixed global signals and concerns about high valuations.

• Optimism for a US-India trade deal is fading, with investors awaiting clarity after China and the UK secured agreements with Washington. Experts suggest the domestic market may remain rangebound until trade deal clarity emerges.

• The market has been in a range recently due to a lack of new triggers. With peak tariff and geopolitical anxiety passed, the market now awaits Q4 GDP prints and earnings growth to maintain gains.

Coal India +1.55%

• Coal India rose 2.88%, becoming a top Nifty 50 performer, closing with a 1.55% gain.

• Trading volume exceeded 5 million shares. Coal India stated Monday that it is listing its two subsidiaries, BCCL and CMPDI, and draft papers will be filed with Sebi soon.

Eternal (4.21%) - Formerly ‘Zomato’

• Eternal shares dropped 4.21% as it moves to become an Indian Owned and Controlled Company (IOCC).

• 99% of shareholders approved capping foreign ownership, which could lead to significant capital outflows.

• Jefferies noted potential foreign investor selloff of up to $1.3 billion and risk of MSCI index removal, both possibly impacting the stock's near-term trajectory.

• Trump's new tax remittance plan could drain billions of dollars from Indian Economy. (ET)

• Credit growth may slow in FY26 as lenders focus more on secured loans. (ET)

• Core sector growth in April slows to an 8-month low. (BS)

• India may allow up to 49% foreign direct investment in nuclear energy in phases. (ET)

• Sri Lotus Developers gets SEBI nod for ₹792 crore ($92Mn) IPO. (MC)

• Belrise secures ₹645 crore ($75Mn) from anchor investors before IPO. (MC)

• Borana Weaves IPO subscribed 8.5x on Day 1; retail portion booked 25x. (MC)

This week’s mainboard IPO schedule

• Borana Weaves

  • Offering Period: 20 May - 22 May, 2025

  • Listing Date: 27 May, 2025

  • Issue Price: 205-216

  • Lot Size: 69

• Belrise Industries

  • Offering Period: 21 May - 23 May, 2025

  • Listing Date: 28 May, 2025

  • Issue Price: 85-90

  • Lot Size: 166

M&A / Investments

• Bajaj Group gets CCI nod for ₹24,180 crore ($2.8Bn) acquisition of Allianz's 26% insurance JV stake. (BS)

• Nazara buys UK's Curve Games for ₹247 crore ($28.9Mn). (YS)

Debt

• SBI board panel nods to overseas fundraise of up to ₹25,615 crore ($3Bn) in FY26. (NDTV)

• Embassy REIT raises ₹2,000 crore ($234Mn) via debt issuance at 7.21%. (BS)

• UGRO Capital will raise up to ₹915 crore ($107Mn) through preferential CCD issue. (ET)

• Renault Group seeks CCI nod to buy out remaining 51% stake in Indian joint venture. (ET)

VC

• 247VC launches an India fund aiming for ₹250 crore ($29.2Mn). (YS)