MARKETS | PAGE 5 COMPANIES | PAGE 4 Debateovereducationversus investmentadviceresurfaces INTERNATIONAL | PAGE 10 Tariff hike elusive,Airtel to lean on user upgrades BENGALURU, TUESDAY, JANUARY 27, 2026 EU probes Musk's X amid Grok deepfake outcry FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL NO. XXXVIII 241, 10 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: 81,537.70* ▼ 769.67 NIFTY: 25,048.65* ▼ 241.25 NIKKEI 225: 52885.25 ▼ 961.62 HANG SENG: 26,765.52 ▲ 16.01 `/$: 91.96* ▼ 0.34 `/€: 107.91* ▼ 0.78 BRENT: $65.57 ▲ $0.31 GOLD: `1,54,120* ▲ `3,449 ■ Retailers have reported weaker footfalls and demand as consumers stay indoors ■ Quick service restaurants and quick commerce firms also facing expansion delays sumer mobility and discretionary spending, impacting demand.Peoplestayedindoors, which had a direct impact on footfalls,”saidKavindraMishra, managing director and chief executive officer of Shoppers Stop,whilecommentingonthe company’s Q3FY26 performance.Nearly35%ofShoppers FTAwith EU a ‘done deal’ STATES’ CAPEX GROWTH IN FY25 SLOWSTO 10% PAGE 2 GOLD HITS $5,100 ON SAFE-HAVEN DEMAND PAGE 5 PAGE 2 ASTHE FINANCE MINISTER PREPARESTO PRESENT HER NINTH BUDGET, FE TAKESALOOK BACK... Prime Minister Narendra Modi with European Commission President Ursula von der Leyen (left) and European Council President Antonio Costa during the 77th Republic Day Parade, in New Delhi. Talks for a proposed FTAwith the EU have ended successfully, Commerce Secretary Rajesh Agrawal said on Monday. The deal is likely to be announced today ■ REPORTS ON PAGE 2 & 10 ■ Leg-up to ass- ~8% Weighted average Indian tariffs; higher duties (up to 110%) on auto, auto parts (35.5%), plastics (10.4%), and pharma (10%) India-EU trade In services ($ bn, 2024) In goods ($ bn, FY25) 61 43 34 Exports from India Imports Exports Imports 76 orted Indian services, especially IT, movement of professionals may ease ■ India's 9th bilateral trade deal in 4 years; negotiations began 18 years ago; ‘Mother ofAll Deals’ with largest trading partner bucks the trend of rising protectionism ■ India to cut auto tariffs to 40% for 200K cars above €15,000; EU eyes India's vast govtprocurement market AN ADANI POWER coalfired plant that exports electricity passes on Indian corporate taxes to Bangladesh and charges more than market rates, according to a recent report from a government-appointed committee in Bangladesh. Adani’s Godda plant in Jharkhand priced power at a ■ Expected com- pletion by April 30, 2026, subject to conditions 2026, subject to fulfilment of agreed conditions, the company said. Upon completion of the transaction,APSL will become a subsidiaryofWaaree RenewableTechnologies.SinghiAdvisors acted as an exclusive strategic and financial adviser to the Waaree firm. Set up in 1996, APSL is a powertransmissionanddistribution infrastructure player, with operations across the country and select international markets.ForFY25,ASPL ■ Associated Power to become an arm ofWRTL reported a turnover(including other income) of `1,226.64 crore and a net worth of `339.53 crore. This acquisition represents a strategic milestone in Waaree’s transformation into an integrated energy transition company, strengthening its capabilitiesbeyondgeneration into critical grid and transmission infrastructure—a key enabler of large-scale renewable energy adoption,it said. Continued on Page 3 ■ Dairy sector out of the pact, among FPIscutstakein80%ofNiftyfirms AREAS OF CONCERN ■ EU non-tariff ■ Carbon tax, other barriers, services environmental restrictions rules, quality norms may stay to prevail over FTA FOREIGN PORTFOLIO INVESTORS (FPIs) reduced their stakes in nearly 80% of Nifty firms (39 out of 50) over the past year, shareholding data from Capitaline show. During 2025, FPIs offloaded around $30-billion (`2.62 lakh crore) shares across 16 sectors, with IT, FMCG, power, healthcare and consumer durables emerging as the biggest selling pressure points. Between December 2024 and December 2025, FPIs sharply cut their holdings in several large-cap stocks, with their stake in Eternal falling to 34.39% from 43.19%. —Kishor Kadam food products, EU wines and India's marine products included Adanidealoverpriced:Bangladeshpanel RUMA PAUL & SUDARSHAN VARADHANDHAKA Singapore, January 26 secondary investment 39.7% premium over its The NRC said the price nearest private sector com- divergence was an "outcome petitor and had the of specific contrac»INSIDE« steepest cost escatual choices", lation among elecadding that it had ADANI COMEBACK tricity import found evidence of arrangements from FUELLED BY M&A "serious anomalies India, the National PUSH, PROJECT in the procedures COMPLETIONS Review Committee through which the PAGE 4 (NRC) said in a contract was report dated awarded". January 20. Adani Power said it could Reuters reviewed the not comment on the review report, which has yet to be as the committee had neimade public. ther consulted the company, nor provided it with a copy of the report. It also said it was continuing to supply electricity despite large payment dues, adding that other generators had cut back or stopped their supplies. “We urge Bangladesh government to liquidate our dues at the earliest as this is impacting our operations,” the company said in a statement. Continued on Page 10 FPIs % stake Stake raised in select firms Dec 2024 Dec 2025 Change Dec 2024 Dec 2025 Change 8.8 6.4 6.3 6.1 5.8 4.5 1.6 1.6 1.2 1.0 Grasim Inds 3.8% Average EU tariffs for Indian goods, higher (~10%) for textiles `1,225 cr ■ Deal to be a mix of primary and Bharat Electronics RBI’S LATEST CHANGES to priority sector lending norms are aimed at pushing banks towards direct lending and tighter borrower-level accountability, while reducing reliance on indirect routes such as on-lending through NBFCs, bankers and industry experts said, reports Kshipra Petkar. ■ PAGE 5 ■ Zero tariff for key Indian exports like garments, pharma, leather, petro products; lower duties on scores of other items ■ Waaree Renewable Tech acquiring around 55% stake in Associated Power Structures for 17.8 19.3 17.4 18.5 13.5 14.5 RBI nudges banks towards direct priority lending GRAND BARGAIN WAAREE RENEWABLETECHNOLOGIES (WRTL), the engineering, procurement and construction (EPC) arm of Waaree group,on Mondaysaid it will acquire a nearly 55% stake in Associated Power Structures (APSL), a power transmission firm, for `1,225 crore.The deal will be through a mix of primary and secondary investment. The acquisition is part of its Waaree 2.0 strategyof becoming an energy transition company, WRTL said, adding that its board has approved entering into a binding term sheet for the acquisition. Manmohan Sharma, chief financial officer, WRTL, said: “As renewable capacity scales rapidly in India and globally, robust transmission and distribution infrastructure becomesmissioncritical.Associated PowerStructures brings deep domain expertise,execution strength, and a proven trackrecordthatcomplements Waaree’s renewable portfolio.” The acquisition is expected to be completed by April 30, Bajaj Finance US AIRCRAFT MAKER Boeing expects more orders for its Dreamliners in the Indian market, which is poised for substantial growth in the coming years, according to a senior company executive, reports PTI. In India, Boeing 787 planes, also known as Dreamliners, are operated by Air India. ■ PAGE 4 POWER PLAY Eicher Motors More Dreamliner orders from India likely, says Boeing PTI Continued on Page 3 24.3 28.8 25.4 27.0 ECONOMY ormore.” Real estate developers say repeated work stoppages under GRAP are disrupting project timelines and cash flows. Even brief construction bans can have outsized consequences,especiallyforprojects nearing completion, as labour deployment,material supplies and regulatory approvals are thrown off course.“Environmental concerns are real and must be addressed,but a more balanced approach that considers economic impact is also needed,” said Parveen Jain, president of the National Real Estate Development Council. Waareearmtobuypower infrafirmfor`1,225cr RAGHAVENDRA KAMATH Mumbai, January 26 » INSIDE « competitiveness in a hypercrowded market. For logistics firms, the disruption is immediate and costly. Under GRAP-3 and GRAP-4,most diesel trucks are barred from entering DelhiNCR,with exemptions only for essentialgoodsandcleaner-fuel or BS-VI vehicles. “This effectively halts long-haul trucking into the cityand creates bottlenecks at border points,” said MohammadImthiazYunus,cofounder and chief executive officer of logistics aggregator Raaho. “Cargo is shifted to smaller vehicles for last-mile delivery,sharplyraisingper-trip costs,adding‘empty miles’and pushingdeliveriesbackbyaday Bharti Airtel WITH STATES PLANNING to raise funds to the tune of `5 lakh crore in the fourth quarter, mutual fund houses are keenly looking forward to participating in them for higher yields, reports Christina Titus. A THICK BLANKET of smog hasbecomemorethanahealth hazard in urban India—it is now a visible drag on business activity. Pale grey skies, poor visibility and hazardous air quality are no longer confined tomorningadvisories;theyare showing up in earnings calls, ■ GRAP curbs restrict construction activity, disrupting supply chains and real estate timelines Stop’s 110 department stores arelocatedinNorthIndia,magnifyingtheimpactofprolonged smog episodes. Quick service restaurants and quick commerce players are facing a similar squeeze. Ravi Jaipuria, non-executive chairman, Devyani International, said store expansion in the Delhi-NCR region had slowed due to construction curbs. Blinkit chief executive Albinder Dhindsa described the slower pace of dark store launches in Q3 as a “timing issue”,with openings deferred to Q4.Analysts,however,warn that even short delays—Blinkit fell73storesshortofits2,100store target in Q3—can hurt 53.1 47.2 MFS PLAN MORE ALLOCATIONS IN STATE LOANS VIVEAT SUSAN PINTO, YARUQHULLAH KHAN & ANEES HUSSAIN Mumbai/New Delhi/ Bengaluru, January 26 HAZY PICTURE Shriram Finance PAGE 5 out impact on sales in North expansion plans and supplychain disruptions,particularly across northern India. As air quality deteriorates, the Graded Response Action Plan (GRAP) kicks in, bringing curbs on construction and restrictions on the movement oftrucks.Theresult:lowerconsumer mobility, disrupted logistics and delayed real estate projects. Retailers have been among the first to flag the impact. Shoppers Stop, Devyani-Sapphire and Blinkit have all pointed to pollution-related disruptions weighing on demand in recent weeks. “Elevatedpollutionlevelsin northern India reduced con- Trent MARKETS ● Businesses call Tech Mahindra AXIS BANK ON Monday reported a 3% year-onyear rise in its net profit to `6,490 crore for the December quarter, beating analysts' estimates of `6,054 crore, reports Kshipra Petkar. The bottom line received a boost from steady income, a healthy loan growth and lower provisioning. Corporate India faces a new risk factor: Pollution Max Healthcare AXIS BANK PAT RISES 3% IN Q3, BEATS ESTIMATES 43.2 34.4 56.9 50.6 24.2 17.9 21.7 15.6 PAGE 5 Eternal MARKETS *As on Jan 23 Source: Capitaline Incentives to address capacity gaps; focus on high-value equipment Budget maygreen-light `13,000-crscheme forconstruction parts NITIN KUMAR New Delhi, January 26 THE UNION BUDGET to be presented on February 1 is expected to propose an incentive scheme of over `13,000 crore for the construction equipment sector, as the government looks to strengthen domestic manufacturing and reduce reliance on imports, according to officials familiar with the discussions. The proposed scheme is likely to be part of the government’s broader effort to build domestic capacity in capital goods that are critical to infrastructure creation, at a time when public investment continues to anchor economic growth. In the current financial year, the government has earmarked `11.11 lakh crore for capital expenditure, or about 3.4% of GDP,with infrastructure accounting for a large share of the outlay. Officials said the incentive framework is being designed to address persistent capacity gaps in construction equipment manufacturing that have constrained project execution despite higher bud- FIRMER GROUND ■ Scheme aims to strengthen domestic manufacturing, reduce import dependence ■ Companies must meet around 50% domestic value addition to qualify for incentives ■ Delays in infra projects due to shortage of specialised machinery, reliance on imports ■ Govt's capex for FY26 is `11.11 lakh cr with infrastructure a major focus getary allocations. Delays in the availability of specialised machinery have been a recurring issue across large infra- structure segments such as highways,metrorailandurban development,often because of dependence on imports. The scheme is expected to focus on high-value equipment including tunnel boring machines, ropeway systems, backhoe loaders, crawler and towercranes,aswellasengines and transmission systems. Tunnel boring machines are increasingly central to metro and underground infrastructure projects, while ropeways are being deployed for both urban mobilityand tourism in hilly regions. Equipment such as cranes and loaders remains critical for road construction, real estate development and agricultural activity. Officials said companies seeking to avail of incentives would be required to meet a minimum domestic value BENGALURU addition threshold of around 50%.Theconditionisaimedat pushing manufacturers beyond assembly operations and encouraging localisation of key components such as engines, electronic systems, control units and specialised steel parts,which are currently imported in large volumes. Atpresent,asignificantportionofconstructionequipment soldinthecountryisassembled locally using imported components,withChinabeingamajor source. The government believes this has limited the development of a robust domestic supply chain and left infrastructure projects vulnerable to external disruptions. By linking incentives to localisation, the proposed scheme is expected to spur investment in component manufacturing, engineering capabilities and supplier ecosystems. Officials said this could help reduce lead times for equipment procurement and improve execution speed for public projects, improving the effectiveness of capital expenditure. Continued on Page 10