Tata's Succession Plan, RBI Makes Room For Rate Cut, Rupee Depreciates Beyond 84 — The Week That Was
NDTV Profit, in its weekly news wrap every Friday, brings you the major events shaping businesses, industries, and global markets.
The week gone by will go down in history as major events from Ratan Tata's death to the Indian currency dipping to new lows shook the market.
Nation mourned the loss of Indian industrialist Ratan Tata. The former chairman and chairman emeritus of Tata Sons died on Wednesday at the age of 86. Noel Tata took over the reins.
India's Monetary Policy Committee kept the repo rate unchanged for the 10th straight meeting but changed the stance to neutral. Meanwhile, the rupee weakened past the Rs 84 mark.
NDTV Profit, in its weekly news wrap every Friday, brings you the major events shaping businesses, industries, and global markets.
Noel Tata Takes Over As Tata Trusts Chairman
Ratan Tata, the group's patriarch, passed away on Wednesday, leading to the appointment of Noel Tata as Chairman of Tata Trusts.
The unanimous decision was made during a board meeting of Tata Trusts in Mumbai, where discussions focused on the succession plan for the philanthropic organisation, sources told NDTV Profit.
Noel Tata currently chairs several entities, including Trent, Tata International Ltd., and Voltas Ltd. He is also the vice chairman of Tata Steel Ltd. and Titan Co.
The Tata Trusts, which own 65.3% of Tata Sons, are consistent of two primary trusts—the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. Together, these entities hold over 50% of ownership in Tata Sons.
Noel Tata's three children—Leah, Maya, and Neville—were earlier appointed as trustees in multiple trusts associated with the Sir Ratan Tata Trust and Sir Dorabji Tata Trust earlier this year.
RBI Keeps Rates Unchanged; Shifts Stance To 'Neutral'
The Reserve Bank of India's Monetary Policy Committee maintained status quo for the 10th straight meeting but changed the stance to neutral, paving the way for future rate cuts.
The committee decided to unanimously change the stance to neutral and remain "unambiguously focused on a durable alignment of inflation to the target while supporting growth," Governor Shaktikanta Das said during the policy meeting.
India’s growth story remains intact as its fundamental drivers—consumption and investment demand—are gaining momentum, Das said.
CPI inflation is projected at 4.5% for fiscal 2025, Q2 at 4.1%, Q3 at 4.8, and Q4 at 4.2% with risks evenly balanced. For Q1 of fiscal 2026, inflation is projected at 4.3%.
The real GDP growth for 2024–25 is projected at 7.2%, with Q2 at 7%, Q3 at 7.4%, and Q4 at 7.4%. Real GDP growth for Q1FY26 is projected at 7.3%.
Rupee Sinks Beyond 84 Mark For First Time
The rupee weakened to surpass the psychological barrier of the Rs 84 mark against the US dollar, as consistent selling of stocks on Dalal Street by global funds weighed on the Indian currency.
The domestic currency weakened to a record low of Rs 84.03 after opening at Rs 83.96 against the US dollar, according to Bloomberg.
Foreign investors sold Indian stocks for the ninth straight day on revival for Chinese stocks coupled with valuation worries.
In the last nine sessions, FIIs have offloaded domestic stocks worth over Rs 65,200 crore, according to the provisional data from NSE. During the same period, domestic investors mopped up stocks worth Rs 67,500 crore.
The tension in West Asia and the revival of the Chinese economy also weighed on the sentiments of global investors.
Editor's Picks For The Week
China Vows To Hit Economic Goals, Stops Short Of Large Stimulus; All Eyes On Saturday's Policy Briefing.
Navi Mumbai Airport Gets Its First Flight Landing Five Months Before Operations Begin
Lower Rated Bond Yields Compress As HNIs Get Their Hands Dirty
Big Earnings
Tata Consultancy Services Ltd. profit fell in the second quarter of fiscal 2025, missing estimates. Read more here.
Indian Renewable Energy Development Agency Ltd. reported a net profit increase of 36% from the year-ago period but missed estimates. Read more here.
Just Dial Ltd.'s consolidated net profit rose 9.21% sequentially to Rs 154 crore in the quarter ended September 2024. Read more here.
Rafael Nadal To Step Down From Professional Tennis
Spanish tennis player Rafael Nadal announced his retirement from professional tennis on Thursday in a post on social media platform 'X' (formerly known as Twitter).
Nadal announced that his last tournament will be him representing Spain in the Davis Cup Finals.
"I think I've come full circle," the tennis icon said. "Since one of my great joys as a professional tennis player was the Davis Cup finals in Sevilla in 2004."
His post carried a short video where he mentioned his advancing age and his subsequent decline in his ability to play tennis to his satisfaction in the past two years as reasons for stepping away from tennis.
"It is obviously a difficult decision, one that has taken me some time to make. But, in this life, everything has a beginning and an end," the tennis veteran said.
