COMPANIES | PAGE 5 ECONOMY | PAGE 21 Heat threat for millions of jobs in India:World Bank INTERNATIONAL | PAGE 10 IndiGo to end widebody operations from Oct 25 MUMBAI, SATURDAY, AUGUST 1, 2026 Hamas agrees toTrump’s Gaza disarmament plan FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXVI NO. 181, 32 PAGES, `12 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 78,094.64 ▲ 166.49 NIFTY: 24,383.60 ▲ 66.45 NIKKEI 225: 64,362.02 ▲ 2,494.59 HANG SENG: 25,884.43 ▲ 25.55 `/$: 95.39 ▲ 0.29 `/€: 109.75 ▼ 0.07 BRENT: $89.99 ▲ $0.96 GOLD: `1,42,295 ▼ `514 IN THE NEWS ECONOMY PAGE 2 IMD FORECASTS 'BELOW NORMAL' AUG-SEPT RAINS AFTER A 'NORMAL' rainfall in July, monsoon rains are likely to be 'below normal' in AugustSeptember, the India Meteorological Department (IMD) said, citing strengthening El Nino conditions, reports Sandip Das. » INSIDE « STATES BENEFITFROM GST REFORM,WRITES SOUMYA KANTI GHOSH PAGE 8 HOWAPPS HAVE BELLEDTHE MODERN CONSUMER, WRITES ANVITII RAI PAGE 8 Maruti Q1 profit falls 11% as costs squeeze margins MARUTI SUZUKI INDIA reported a 10.8% decline in standalone net profit for the June quarter to `3,352 crore, as surging raw material costs squeezed margins despite posting record vehicle sales, robust SUV demand and higher exports, reports Akbar Merchant. ■ PAGE 4 LIKELYTO PUSHYIELDS HIGHER Bloomberg defers bond index entry CHRISTINATITUS Mumbai, July 31 HOPES DASHED ■ The entry into Bloomberg's Global Aggregate Bond Index was expected to draw foreign inflows of BLOOMBERG INDEX SERVICES on Friday deferred the inclusion of Indian government securities in its flagship Global Aggregate Bond Index, saying it needs more time to ensure recent market reforms are fully embedded in trading and operational practices. “Many market participants would like to see these enhancements become more firmly established in day-today market practice before a decision is made on index inclusion. While automated tradingcapabilitiescontinueto expand, respondents noted that implementation has not yetbeenfullycompletedacross all major investor regions,” Bloombergsaidinastatement. While acknowledging India’s progress, Bloomberg cited the expansion of electronic trading in government securities and the removal of withholding tax and capital gains tax for eligible foreign investors. However,it said that given the Global Aggregate Indexisitsflagshipbenchmark, any inclusion decision must be supported not only by regulatory and market structure ■ This is the second deferral by Bloomberg Index Services $20–25 billion Previous inclusions ■ JPMorgan Chase added Indian bonds to its emerging market index in June 2024 Inclusion in Bloomberg’s Emerging Market Local Currency Index came in January 2025 ■ reforms but also by demonstrated operational efficiency across the broad range of investors tracking the index. “Additional time is warranted” beforeadecisionismade,itsaid. Over the past two years, Indian government securities have gradually been included in major global bond indices. JPMorgan Chase began adding Indian bonds to its emerging market index in June 2024. EQUITIES DRAW22-MTH-HIGH FPI FLOWS; BOND PULLWANES FOREIGN PORTFOLIO INVESTORS (FPIs) ■ FTSE Russell included Indian bonds in its emerging market government bond index in September 2025 This was followed by Bloomberg’s inclusion of India in its Emerging Market Local Currency Index in January 2025 and FTSE Russell adding Indian bonds to its emerging market government bond index in September 2025. The government has taken aseriesofmeasurestoraisethe attractiveness of bonds. Continued on Page 10 Nod to Zee promoter’s stake hike to 24% from 4% VIVEAT SUSAN PINTO Mumbai, July 31 Jan 2026 Mar Apr May 22,258 7,602 41,773 FAR bonds -29,172 5,693 -46,889 -49,034 -132,144 -17,688 Feb Equity 5,081 15,242 7,445 14,625 FPI net investments (in ` cr) -29,487 purchased Indian equities worth `22,258 crore ($2.3 billion) in July 2026, marking the highest monthly equity inflows in 22 months, according to data sourced from NSDL, reports Kishor Kadam. In contrast, FPIs slashed their investments in government bonds under the fully accessible route (FAR) by 82% from June — `7,602 crore ($793 million) compared with `41,773 crore ($4.4 billion) — according to data from CCIL. ■ Additional time is warranted for recent market reforms to become more firmly established, Bloomberg says Jun Jul 2026 Source: NSDL, CCIL India THE SHAREHOLDERS OF Zee Entertainment on Friday green-lit a `3,143.52-crore crucialfundraisingproposalby the company that will potentially increase promoter stake in the media firm to nearly 24% from the current 3.99%. The move is significant since theSubhashChandra-founded firm has seen significant volatilityonaccountoflowpromoterstake.Sectoranalystssay that the stake hike will remove significant overhang on the firmandstrengthenalignment and corporate backing. In a filing with the stock exchanges, Zee said that it received 76.64% votes in favourof the fundraising plan, clearingthe75%thresholdfor special resolutions. Continued on Page 10 GROWTH DELIVERED, SUSTAINING ITWILLBETHE REALTEST Happy,not satisfied: Priya Nair’s firstyearat the helm of HUL VIVEAT SUSAN PINTO Mumbai, July 31 WHENPRIYANAIRwalkedinto Hindustan Unilever’s Mumbai headquarters on August 1 last yearasitschiefexecutiveofficer andmanagingdirector,shewas returning to where her career began.She had joined HUL as a management trainee in 1995 andspentthenextthreedecades working across brands ranging from Wheel and Surf to Dove, before moving to Unilever’s global leadership team. The homecoming was also historic: Nair became the first woman to lead HUL in its 92yearexistence,takingchargeofa company then valued at nearly `5.9lakhcrore.DalalStreetwelcomed the appointment,with the stock rising 4.6% the next day. Citi cited her“strong track record”,whilelookingforastrategy refresh after a period of relativelyweak performance. That last phrase captured the less glamorous part of her inheritance. The company handed to Nair was India’s largest consumer goods firm, but one stuck in low gear — volume growth had slippedtoaround2%, urban demand was understress,and the Street had begun asking whether the FMCGbellwetherhad lost its edge. Ayearon,Nair believes the turnaround is gaining traction. But she is stopping wellshortof calling the job done. “I remain happy with theprogress but not satis- fied,” Nair said while reflecting on her first year during HUL’s June-quarter earnings call this week.“Youcanneverbesatisfied inacompanylikethiswithwhat the opportunity is. But happy with the progress we see quarteron quarter.” It is a very HUL answer — the restlessness of an institution that has long prided itself on being a “CEO factory” for corporate India, now voiced by an insider who rose throughits ranks. This time, the numbers gave her something to be happy about. HUL delivered its strongest underlying sales growth in 13 quarters at 10%,equallydriven byprice andvolume,while consolidated revenue rose 10.1% year-on-year to `17,341 crore. Volumegrowth,whichhadhovered around 2% when she took charge, has improved to 5-6% over the past two quarters,suggesting demand is recovering aftera prolonged slowdown. Nairattributedtheimprovement to structural changes ratherthanaone-offrebound.“I believe behind this, there are somestrongfundamentals,”she said,highlightingfourpriorities: reshapingtheportfoliotowards faster-growing categories; concentrating investment behind “bigger,bolder and fewer bets”; improvinggo-to-marketexecutionthroughwiderdistribution andsharperchannelsegmentation; and accelerating brand building and innovation. Continued on Page 10 Cabinetapproves `84,000crorefor deep-seadrilling SAURAVANAND New Delhi, July 31 THE UNION CABINET on Friday approved a `84,084-croreincentive scheme for offshore hydrocarbon drilling. This entails government support of up to 50% of eligible drilling costs or `675 crore perwell, whichever is lower, for 60 deepwater exploratory units. The move seeks to reverse declining domestic oil and gas output and reduce India’svulnerability to global supply shocks like the one after the onset of theWestAsia turmoil, which has jacked up India’s energy costs. The central sector scheme, titled Samudra Manthan NationalOffshoreExploration Scheme, will run through FY31,and will be India’s most ambitious offshore exploration mission. It will combine seismic surveys,deepwater and ultradeepwater drilling, scientific exploration in frontierbasins, common production and evacuation infrastructure, manufacturing zones and digital technologies to accel- ENERGY PUSH ■ Scheme will run up to FY31 ■ Scheme expected to catalyse reserve accretion of over 600 million tonne of oil equivalent ■ Domestic oil and gas production expected to rise to 80 MTOE erate new discoveries. Of the total outlay, `43,200 crore has been allocated for offshore exploration, including drilling support. Continued on Page 6 PM-KISANextendedby 5years,tocost`3.15Lcr SANDIP DAS New Delhi, July 31 THE UNION CABINET on Friday approved the extension of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme for five years till FY31. Thiswouldrequireabudgetary outlay of `3.15 lakh crore. Under this central sector scheme, an annual sum of `6,000 is transferred to 100 million land-holding farmers, mostly smallholders, in three equal instalments through the direct benefit transfer (DBT) mechanism. The scheme started in 2019. After the release of the 23rd instalment in June 2026, the total disbursement under the scheme has exceeded `4.47 lakh crore. The direct cash transfer to farmers remained at the same level in nominal terms since the scheme was launched sevenyearsago.Annually,aflat sum of `60,000 crore has been allocated for the scheme since FY24. Prior to that, the outlay was in the range of `65,00068,000 crore. The scheme has enabled farmers to make timely investments in seeds, fertilisers, irrigation, agricultural machinery and other agricultural requirements. Continued on Page 10