President Donald Trump’s decision to impose a steep tax on most goods that come into America has tested the mettle of small business owners whose companies are reliant on global trade. And the fits and starts that have come along with Trump’s tariff program are not just testing these business owners’ patience, they’re also threatening their very operations. The latest, and perhaps biggest, curveball came last week when the US and China agreed to sharply lower their respective tariff rates for 90 days. The de-escalation brought the US tariffs on Chinese goods down to 30% from 145%. Markets cheered the news, and recession forecasts lessened in intensity. And that surely meant that small business owners who faced steep tariff bills — including Busy Baby founder Beth Fynbo Benike, whose next shipment of baby products was going to come with an additional $230,000 price tag — should be super grateful, right? Fynbo Benike answered that question with some seething sarcasm and a dose of realism. “The tariffs came down. 30%. Yay!” Fynbo Benike said on a TikTok video posted last week. “That still sucks, by the way. That sucks for any small business owner … It’s still going to cost me $48,000 more than this shipment would’ve cost me two months ago.” “It’s still awful,” she said. ‘A slap and a kiss’ The erratic nature of President Donald Trump’s trade policies and the severity of newly imposed tariffs have wreaked havoc on small businesses in the US, causing costs to quickly skyrocket, unsettling longstanding supply chains, swiftly stifling growth and expansion plans — and threatening to kill American-bred businesses. A 30% tariff for Chinese imports “is still a step up, and that’s not the only tariff we’re looking at. We’re looking at tariffs around the globe,” Elizabeth Renter, senior economist at NerdWallet, told CNN in an interview. “That relief was necessary, but let’s not kid ourselves. The impact of this trade war is going to be significant, and I think it’s going to hit smaller businesses potentially the worst.” To understand the plight of small businesses one needs to only look at the largest corporation of them all. The chief executive officer of Walmart late last week said that tariffs were “too high” for the world’s largest retailer to absorb, and that it would raise prices in the coming weeks. “Walmart is the best equipped to handle increased costs; they have probably some of the most complex supply chains, and they’re going to multiple suppliers for all of their products,” Renter said. “If some place like Walmart is signaling that they’re going to be increasing prices, we know that the stress on smaller corporations and smaller businesses is going to be significant.” Francine Farkas Sears, who 50 years ago was the first American businesswoman invited to China after President Richard Nixon opened trade relations, told CNN that the tariffs are threatening the viability of her business, which makes professional bags for women as well as accessories for the Girl Scouts of America and the Red Cross. “Well, we might as well just make a lunch date, because I won’t have a business; it’s that serious,” she said. The steep and shifting tariffs are threatening to unwind decades-forged relationships and make her business unsustainable, she said. “It’s an industry that we don’t produce today here,” she said, noting that the costs to produce bags, as well as caps and the roller “cookie carts” for scouts would skyrocket if they weren’t made overseas. “These families are scraping by to join the Girl Scouts for their daughters, and they can buy that cart now for $39,” she said. “If I made it in this country, it would be $200.” “These are areas where we have to realize that we have to shake hands,” she added, noting the volatility could be too much for her and other businesses to withstand. “Whether you like him or not, it doesn’t matter, [Trump is] one of the smartest negotiators ever: He basically throws everyone off balance, and then he brings them back.” “It’s a slap and a kiss,” she said. Pivoting and creating back-up plans Fynbo Benike, a US Army veteran, has long made efforts to manufacture the tethered baby place mats and other accessories on domestic soil; however, the US infrastructure remains costly, limited, or in some cases nonexistent. So, she and others have had to rely on imported goods and materials to grow their businesses. And Busy Baby was indeed growing: The company got its products into several hundred Walmart and Target stores, and Fynbo Benike had just paid for her largest-ever order to help backfill inventory for her website and for Amazon. In recent weeks, Busy Baby was busy pivoting. The company was formulating an international distribution plan, in which the vast majority of the sales would occur outside of the US. The de-escalation of tariff rates with China means that Fynbo Benike can pull the trigger on shipping the order to the US. However, it will come at a steep cost to her and others — most of the funds to pay for the expected $48,000 import tax are coming from a GoFundMe. “Now that the tariff has come down, it’s enough to bridge the gap; so, we’re going to ship the product as soon as possible,” Fynbo Benike told CNN in an interview last week. “And then — this is where it’s very, very risky — we’re going to start production for our next line. I’m going to be hopeful that it’s not going to get worse.” In case it does, she said, she’s modifying production of the baby mats to meet European Union standards. And despite the détente with China, the outlook for companies like Busy Baby has only become increasingly volatile. “I would say it’s more and more (uncertain) and different and stronger,” Fynbo Benike said. “Last time, the tariff was going up and up and up; and now, the tariff all of a sudden dropped significantly. And they say it’s for 90 days, but is it for 90 days?” “Because our administration is known to make sudden and drastic changes out of nowhere, and now that is happening in both directions,” she added. ‘Survival was in question’ Last month was meant to serve as a milestone for Katharine Burke’s Purryfuls business, a startup that made self-care purring plushies for stressed-out Millennials and Gen Zers. After two years in development, the first Purryfuls line was meant to go into production. The month of April, put lightly, “was not fun,” Burke told CNN last week. “My (company’s) survival was in question all of April,” she said via email. “I had my first-, second-, and third-ever panic attacks. I was trying to come up with backup plans as [the tariffs] dramatically changed my outlook for the year.” By the first week of May, the Purryfuls products were being manufactured and scheduled to ship from China at the end of the month. At that time, the tariffs were still 145%, and Burke didn’t know if she’d be in a tight spot, or if she’d be OK. A week later, the tariffs dropped to 30%, a levy that’s significant for small businesses like hers to absorb. But “it’s survivable,” she said. That’s not to say it has been smooth. For one, her customs broker is still poring through the hundreds and thousands of tariff codes to tabulate the exact import duty Purryfuls will have to pay. And then there are new risks of not only higher shipping costs, but also potential delays for her order. “Now that the tariffs have eased, all of the shipments are going out at once which could backup ocean freight and drive up pricing,” she wrote. “I’m hearing from my manufacturer that canceled orders are being revived, which is great for them, but the backlog may mean that there is no space for me to place another order as everyone rushes to get ready for Christmas.”

IDFC First Bank shareholders reject Warburg Pincus arm Currant Sea’s board seat proposal, with only 64.1% support against the required 75%. Institutional investors opposed the move, while retail backed it. Deal may face delays, though capital raise plans and other resolutions were approved. By Mahesh Nayak Shareholders of IDFC First Bank on Monday rejected a proposal to allow Currant Sea Investments BV, an affiliate of Warburg Pincus LLC, nominate a non-executive director on the board. PlayUnmute Fullscreen The special resolution, which required a 75% majority, received 64.10% of votes in favour, falling short of the necessary threshold. The special resolution failed due to opposition from institutional investors, with 51.30% voting against it and 48.7% in favour. In contrast, retail investors showed an overwhelming support, with 98.67% voting in favour. Last month, the IDFC First board had approved a preferential equity issue of about Rs 4,876 crore to Currant Sea Investments. Following that, the bank sought shareholders’ nod through postal ballots to amend its Articles of Association. It sought their approval to provide a right to Currant Sea Investments (or any of its assignees) to nominate one non-retiring, non-executive director by way of a special resolution. Earlier this month, Warburg Pincus, through Currant Sea Investments, had sought the approval of the Competition Commission of India to acquire a 9.99% stake in IDFC First by subscribing to over 812.6 million compulsorily convertible cumulative preference shares. Despite Monday’s setback, the deal is not necessarily in jeopardy. The bank can revisit the proposal after addressing shareholder’s concerns and regulatory approvals. “Although the proposal appeared straightforward, its implications could be substantial. For any PE investment transaction of this nature, this would be a very standard and fundamental investor protection right,” said Nazneen Ichhaporia, partner (PE and M&A transactions) at ANB Legal, who feels the rejection of this proposal may influence future negotiations regarding board representation rights and governance arrangements involving private equity stakeholders. “There may be some delay in transaction completion timelines, as the PE would need to answer to its LPs and stakeholders about proceeding without board representation rights.” A banking analyst said on condition of anonymity, “The dissatisfaction is evident. Some investors are unhappy with the bank’s stake dilution and share issuance price.” In October 2023, IDFC First Bank had raised Rs 3,000 crore via a qualified institutional placement issue at Rs 90.25 per share. Now, Warburg Pincus is reinvesting at a discount to the price of sale by its affiliate Cloverdell Investment. Last March, Cloverdell Investment exited IDFC First Bank at Rs 75.24 per share. The bank clearly indicated in its analyst call that capital raising is for the next phase of growth, but the Street is in a dilemma regarding the higher cost-to-income ratio and the quality of the book. The current cost-to-income ratio for IDFC First Bank is around 57%, compared to 42% for Kotak Mahindra Bank and 31% for Federal Bank. The same for Yes Bank and DCB is around 34% and 31%, respectively. Meanwhile, the shareholders approved two other key resolutions – the issuance of convertible cumulative preference shares worth Rs 7,500 crore and the reclassification of authorised share capital – with overwhelming majorities.

The share price of Bharat Heavy Electricals (BHEL) ended Monday’s session in the red, falling 2.3% to close at Rs 244.45. But what is sparking conversation on Dalal Street is not the dip alone but the divergence in the outlook of various brokerages. While some remain bullish on the PSU engineering giant, one brokerage has taken a strong contrarian stance. Kotak Institutional Equities has slapped a ‘sell’ tag on BHEL and sees a drastic 55% downside from current levels, predicting the stock may fall to Rs 115. Kotak calls a caution on BHEL: ‘Sell’ with Rs 115 target The brokerage firm Kotak Institutional Equities has raised eyebrows with its ultra-bearish view. As per the brokerage report, BHEL’s recent Q4 earnings missed expectations, especially after adjusting for certain provisions and a strong industrial print, which may not be sustainable. It pointed to a miss in EBITDA (Earnings before tax, interest, depreciation and amortization) estimates, even after accounting for one-time reversals and temporary gains in the industrial segment, which may not be sustainable in the long run. The bigger worry, however, lies in the sluggish execution in BHEL’s core power business, an area where the company holds a dominant position. The brokerage also flagged concerns around BHEL’s working capital, saying that while it looked manageable, the underlying situation remains weak. CLSA on BHEL: Softer view, but still not fully bullish Global brokerage CLSA also sounded cautious, albeit less than Kotak. It maintained a ‘reduce’ rating, but increased its price target from Rs 166 to Rs 198. Nuvama on BHEL: Optimistic despite short-term hiccups Contrasting sharply with Kotak outlook, the brokerage firm Nuvama Institutional Equities is still backing the stock, retaining its ‘buy’ call. Although it revised its FY26 earnings estimate down by 43%, it sees long-term potential driven by BHEL’s dominance in India’s thermal power revival. “We reckon Rs 14.1 EPS by FY27E (versus Rs 1.5 as of end-FY25),” the brokerage said in its note, projecting a target price of Rs 360 based on FY27 earnings. According to the brokerage, BHEL’s revenue grew nearly 9% YoY in Q4FY25 to Rs 89.9 billion, while operating margins (OPM) improved to 9.2%. Notably, the industrial segment surged 34% in revenue and achieved a remarkable EBIT margin of 31.3%. JM Financial on BHEL: Bets on thermal boom Another brokerage firm JM Financial is also in the bullish camp, sticking with its ‘buy’ rating and a target price of Rs 281. It sees BHEL as a direct beneficiary of India’s thermal capacity expansion push, which recently increased from 80 GW to 100 GW by FY32. “Execution of legacy projects is nearing completion, and the industry order mix is improving,” noted the brokerage firm, adding that EBITDA margins could climb from 4.4% in FY25 to at least 11% by FY28. The brokerage expects execution to ramp up sharply from FY26 onwards, driven by BHEL’s growing and executable order book, especially as older projects like NTPC’s Patratu and Talcher near closure.

The steep drop in tariff rates on Chinese goods shipped to the United States might have consumers thinking there’s significant relief in sight — at least compared to before. But in practice it might not feel that way. With timing of the essence given the new rates are only temporary, businesses are rushing to complete orders and get products made in China on ships and planes while tariffs are at a minimum of 30%, versus 145% — and they are paying a premium to do so. That’s bound to eat into the savings that businesses would otherwise see from lower tariffs. For consumers, that means the price of many goods from China, America’s second-top source of imports, is poised to remain elevated. The revised rates came after US and Chinese government officials met in Geneva earlier this month, resulting in both nations lowering tariffs on one another’s goods for 90 days as talks continue. But there’s no saying for certain whether the partial truce will last the full 90 days. Even if it does, it’s unclear what level the new tariffs will be. Paying a pretty penny Andrew Rader, managing director within the consumer practice at Maine Pointe, a global supply chain and operations consulting firm, said clients he advises are seeing Chinese production costs rise across the board. Factory owners are offering overtime pay for employees and offering other kinds of bonuses, which is unusual, he said. Key raw materials used in consumer goods, such as plastics and metals, have increased “upwards of 10% or more.” On top of that, due to the surge in orders, more factories are increasing the minimum order size that companies are required to place. That means businesses may be stuck taking in higher-than-desirable inventories, given the costs associated with storage, let alone paying more to have those products produced. Instead of three months of inventory, he said, some are having to pay for as much as six months’ worth of products. After all those production costs are tallied, Rader estimates that American businesses importing goods from China are paying 15% to 25% more to have goods manufactured there. And that’s before transportation costs, which are also rising due to the surge in demand, and the 30% tariffs still in place. But compared to when there was a 145% tariff, it’s still a sizable saving, Rader told CNN. The price American consumers pay The added costs businesses are covering are likely to get passed on to the consumers. However, as is the case with any tariff, it’s not necessarily a one-to-one ratio, where prices rise by the same amount as the additional expenses. That’s because businesses tend to absorb some of the added costs without raising prices as much in order to retain customers. But it’s not only prices that consumers should be concerned about, said Andy Tsay, a business and analytics professor at the Leavey School of Business at Santa Clara University. “Any cost and risk added to the supply chain has to be expressed somehow, not necessarily through an increase in the end price, but possibly in less conspicuous ways,” he said. For instance, more goods could go out of stock given the challenges and costs businesses are encountering with importing more goods from China. Another consideration: “It might be that items go on sale less frequently and with smaller discounts.” There’s also the possibility that new products don’t make it to market altogether. In addition, the back and forth could mean that US consumers are stuck with higher prices as a result of President Donald Trump’s tariffs, even if he eventually modifies the rate. “If businesses learn from this forced experiment that they had been underestimating customer willingness to pay for an item, prices are unlikely to come all the way back down even if the tariffs go away,” Tsay said.

The IPO market is buzzing with activity again. This week, four new public issues are set to open which include two from the mainboard and two from the SME segment. With these new IPO openings this week, it indicates that after a brief pause in the IPO markets in the past two months, companies are now gearing up to make their debut on Dalal Street, and investors have a lot to watch out for. Along with these fresh IPOs, there is also action lined up on the allotment and listing front. Let’s take a look at what is opening, what is ongoing, and what is getting listed this week- Mainboard IPOs Two mainboard IPOs are opening this week, marking the first such offerings this month after the Ather Energy IPO, which was open for subscription from April 28 to April 30. Here is a look at the details of the two issues. Borana Weaves IPO The first mainboard offer on the calendar is from textile maker Borana Weaves. Its Rs 144.89 crore issue opens on May 20 and closes on May 22. Priced between Rs 205 and Rs 216 a share, the entire float is a fresh issue of about 0.67 crore shares. Investors will find out their allotment status by Friday, May 23, and the stock is pencilled in to debut on both the BSE and NSE on Tuesday, May 27. Beeline Capital Advisors is the lead manager, while KFin Technologies will handle the share allocation process. In the unofficial grey market, Borana Weaves is quoted around Rs 279, roughly 29 percent above the top end of the price band. Grey‑market chatter can change quickly, though, and does not guarantee the actual listing price. Belrise Industries IPO Auto‑components maker Belrise Industries follows right after. Its Rs 2,150 crore issue will be open for bids from May 21 to May 23, with a price band of Rs 85 to Rs 90 a share. Like Borana, the entire offering is a fresh issue, this one totaling 23.89 crore shares. Allotment is expected on Monday, May 26, and the tentative listing date is Wednesday, May 28 on both exchanges. Axis Capital, HSBC Securities, Jefferies India, and SBI Capital Markets are leading the book, with Link Intime as registrar. In the grey market, Belrise is changing hands near Rs 107, implying a premium of about 19 percent over the top band. It is important to note, grey‑market premiums move with sentiment and is not the official price . SME IPOs Dar Credit and Capital IPO Finance company Dar Credit and Capital is opening its SME IPO this week, opening for subscription from May 21 to May 23. The price band is set between Rs 57 and Rs 60 per share, with the issue size pegged at Rs 25.66 crore. This is a completely fresh issue of 42.76 lakh shares. Allotment is likely to be finalised on May 26, and the shares are expected to list on NSE SME by May 28. The IPO is being managed by GYR Capital Advisors, with KFin Technologies as the registrar and SMC Global Securities acting as the market maker. As for the grey market, Dar Credit and Capital is currently trading at a premium of 20%, which translates to an estimated listing price of Rs 72, up from the issue’s upper price of Rs 60. However, grey market figures can be volatile and are unofficial. Unified Data-Tech Solutions Limited IPO The second SME IPO of the week comes from tech services firm Unified Data-Tech Solutions Limited. Its issue opens on May 22 and will remain open till May 26. This is a pure offer for sale worth Rs 144.47 crore, comprising 52.92 lakh shares. The price band has been fixed at Rs 260 to Rs 273 per share. The allotment is expected on May 27, and the listing is scheduled for May 29 on BSE SME. Hem Securities is the lead manager, and Hem Finlease is the market maker for the IPO, with KFin Technologies handling the allotment process. In the grey market, it is quoting at a 64% premium, or about Rs 448 estimated listing price, over its upper price band of Rs 273. However, as always, grey market trends are indicative and not a guarantee of listing day performance.

Ace Investor and Warren Buffett of India, Sunil Singhania just sold two stocks, and it has sent the investing communities in research mode. What changed his view on these two stocks and what does it mean for investors who hold them or plan to buy them? Sunil Singhania is not a name that is unknown. He is an ace investor, a Warren Buffett of India who founded Abakkus Asset Management, quite widely known for his finesse in finding less known small and midcap stocks that many overlook but have strong chances to grow. When an investor of his calibre and experience makes changes to his holdings, whether his individual or from his fund, it deserves attention and perspective. As a Warren Buffett of India, he has a wide following and investors from across the board look up to him. He recently offloaded 2 stocks from his fund’s holdings, which has attracted attention from investors. These moves hint at a change in how Singhania views these businesses giving investors insights into his strategies. Do you own any of these stocks? BirlaNU Ltd BirlaNU or HIL, formerly known as Hyderabad Industrial Limited is a flagship company of the C.K.Birla group of Companies which was incorporated in1946. The company changed its name to “HIL Limited” in August 2012. With a market cap of Rs 1,760 cr, the company is one of the leading companies in the building materials and construction industry with robust product pipeline and wide range. BirlaNU manufactures asbestos FC sheets, coloured steel sheets, non-asbestos corrugated roofing sheets, new generation building products like autoclaved aerated concrete (AAC) blocks (light bricks) that are used for walls in building constructions and aerocon panels and boards that are used as partition in residential and commercial buildings. Sunil Singhania’s Abakkus Asset Management held a stake in the company through Abakkus Emerging Opportunities Fund, which was a steady 3.21% since June 2023, dropped to 2.38% as of the quarter ending December 2024. And as per the exchange filings made for the quarter ending March 2025, the holding has dropped below 1% indicating a substantial or complete exit. The sales of the company grew at a compounded growth rate of 9% from Rs 2,169 cr in FY19 to Rs 3,375 in FY24. For the nine months ending December 2024, sales were Rs 2,686 cr. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropped from Rs 244 cr in FY19 to Rs 125 cr in FY24. And for 9MFY25, EBITDA was Rs 26 cr. Looking at the Net Profits, it too has seen a big drop from Rs 101 cr in FY19 to Rs 35 cr in FY24. And for the 9 months between April and December 2024, the company has logged in losses of Rs 7 cr. The share price of BirlaNU was around Rs 829 in May 2020, which has now grown to Rs 2,361 as of the closing on 15th May 2025. This is a jump of 185% in 5 years. The stock trades at a negative price-to-earnings (PE) ratio due to a series of losses, compared to an industry median of 37x. The 10-year median PE for BirlaNU however is 14x which is same as the industry median for the same period. BirlaNU Ltd plans to invest $150 mn to reach $1 bn in revenue by 2028. The Investment will focus on expanding production, enhancing sustainability, and doubling AAC block capacity in Chennai to 400,000 cubic meters per year. Uniparts India Ltd Incorporated in 1994, Uniparts India Ltd provides engineering systems and solutions catering to international OEMs across the off-highway vehicle, agricultural machinery, and construction equipment sectors. With a market cap of Rs 1,570 cr the company has a leading market share of 16.88% in the global 3PL tractor market and 5.92% in the worldwide PMP market in the construction, forestry, and mining (CFM) equipment segment. Once again, Sunil Singhania’s Abakkus Asset Management held a stake in the company through Abakkus Emerging Opportunities Fund, which was a steady 2.2% since June 2023, and it dropped to 1.81% as of the quarter ending December 2024. As per the exchange filings made for the quarter ending March 2025, the holding has dropped below 1% indicating a substantial or complete exit. Let’s examine Uniparts India’s financials to try and gather the decision behind this sell off. The sales of the company grew at a meagre compounded growth rate of 1% from Rs 1,061 cr in FY19 to Rs 1,140 in FY24. Between April and December 2024, recorded sales were Rs 710 cr. EBITDA grew from Rs 138 cr in FY24 to Rs 201 cr in FY24. And for 9MFY25, EBITDA was Rs 111 cr. As for the Net Profits, it went from Rs 70 cr in FY19 to Rs 125 cr in FY24. And for the 9 months between April and December 2024, the company has logged in profits of Rs 65 cr. Uniparts India’s shares were listed in December 2022 at around Rs 570, and as of closing on 15th May 2025, the price was Rs 348, which is a drop of about 39% since listing. Stay put or move out? Sunil Singhania’s exit from BirlaNU and Uniparts India underscores his disciplined investment philosophy, prioritizing value, and growth potential. BirlaNU’s negative PE and declining profits may signal limited upside, while Uniparts India’s lacklustre stock performance could indicate challenges in its overall business. These moves suggest Singhania is repositioning his portfolio toward stocks with better risk-reward profiles. Investors should tread carefully with these stocks. BirlaNU’s elevated valuation and margin issues make it a risky bet, while Uniparts India’s growth is hampered by its slipping share price.

Americans’ feelings about the US economy remain in the doldrums after President Donald Trump’s tariffs: Consumer sentiment continued its freefall this month, settling in at a near-record low. The University of Michigan’s closely watched consumer sentiment index fell 2.7% to a preliminary reading of 50.8 for May, dropping further from April’s reading of 52.2. May’s preliminary reading, the second-lowest on record, landed a touch above the all-time low of 50 notched in June 2022, when inflation was at a 41-year high. Since 1952, when the university started tracking how Americans felt about the economy, there have been nearly a dozen recessions, several oil price shocks, a few wars, a couple of inflationary episodes, a major financial crisis and a global pandemic. Turns out, a massive trade war nearly trumps all. Trump’s sweeping and steep tariffs and other policy shifts have stoked recession fears and sent sentiment readings south every month this year. The university’s index of consumer sentiment is down almost 30% since January, according to Friday’s report. “It’s very clear that consumers are bracing for the uncertainty and instability of tariff policy,” Joanne Hsu, director of the University of Michigan’s Surveys of Consumers, said Friday during an interview on Bloomberg TV. Three-quarters of survey respondents spontaneously mentioned tariffs, up from 60% in April. And consumers, across both major parties, wholly expect tariffs to be painfully pricey: Year-ahead inflation expectations leapt to 7.3% from 6.5%, Friday’s report showed. The current economic conditions index dropped as well, landing at 57.6, which is the lowest reading since December 2022. Sentiment was particularly sour for consumers’ future outlooks. The university’s index of consumer expectations fell for the fifth month in a row (since November 2024) to 47.3, the lowest since July 2022. Consumers “are understandably feeling a bit worse about where the economy is headed,” Elizabeth Renter, senior economist at NerdWallet, told CNN in an interview. “Equally important to negotiating down the tariffs and getting trade deals is communication to the people about where these things are headed and what they can expect.” Economists expected that sentiment could improve in May, forecasting a reading of 55, according to FactSet estimates. There have been positive developments in Trump’s trade war to start the month, notably an unexpected détente and de-escalation in tariffs between the US and China, announced in full on May 12. The survey period for the preliminary report ended May 13. Many survey measures did show signs of improvement following the 90-day reduction in China’s import tariffs from 145% to 30%, Hsu noted in Friday’s report. “But these initial upticks were too small to alter the overall picture — consumers continue to express somber views about the economy,” she said in the report. However, May’s initial reading is the second-lowest on record, wedging itself between June 2022’s all-time low of 50 and the slight improvement to 51.5 seen in July 2022. Nearly three years ago, inflation was raging; however, the labor market was strong, and consumers had the firepower to keep spending. That may not be the case this time around, Hsu said during the Bloomberg TV interview. “Consumers are really worried that labor markets are going to weaken” she said, adding that a growing share reported their incomes have already been dinged. “This is definitely a concerning crack in the resilience of consumers,” she added. This story has been updated with additional information.

Keeping cool could cost a lot more this summer — yet another financial squeeze for many inflation-weary consumers. Americans can expect to shell out a record $784, on average, to cool their homes from June through September, according to a new analysis by the National Energy Assistance Directors Association and the Center for Energy Poverty and Climate. That’s up 4.2% from the same period last year and 14% higher than 2020, when folks only paid an estimated $688, after accounting for inflation. The tab is projected to rise both because electricity prices are increasing faster than inflation and another hot summer is in the forecast, said Mark Wolfe, executive director of the association, which examined summer cooling costs since 2014. Residents of New England and the Midwest will be hit especially hard, with costs projected to increase between 13% and 18% from last year. Only those living in the Pacific, who were expected to shoulder a spike in cooling bills last summer, could catch a break — with costs forecast to decline nearly 7%. Although inflation has become more muted in recent years, prices remain high and household debt is on the rise. What’s more, escalating costs for both winter heating and summer cooling are putting pressure on Americans’ wallets year-round. Heating bills this past winter, which was a cold one, were expected to jump nearly 9%, according to the association. “People don’t get a chance to catch up,” Wolfe said. More than 21 million Americans — about one in six — are behind on their energy bills, the association estimates. Consumers owed their utility companies a total of $24 billion in March, up from $17.5 billion in January 2023. For some people, particularly those with lower incomes, rising costs can have severe consequences — especially if they are more reluctant to turn on the air conditioning. Heat-related deaths are on the rise, with just over 2,300 people succumbing in 2023, the hottest summer on record, compared to fewer than 1,200 in 2020, according to a study published in the medical journal JAMA. “Without access to affordable cooling, many will be at risk of heat stroke and other health impacts associated with rising temperatures,” Wolfe said. At the same time, the federal Low Income Home Energy Assistance Program, which helps about 6 million Americans afford their utility bills, does not have enough funding to aid all those who qualify. LIHEAP is doling out $4.1 billion this fiscal year, down from $6.1 billion two years ago, when Congress provided additional support in the wake of soaring energy prices during the Covid-19 pandemic. Only 26 states offer summer cooling assistance through LIHEAP, Wolfe said. In his budget blueprint, released earlier this month, President Donald Trump proposed eliminating the program. The White House said it isn’t necessary in part because states have policies preventing utility disconnections for low-income residents, which it argues means LIHEAP mainly benefits utilities. Only 19 states and the District of Columbia offer summer shutoff protections, covering about half the US population, Wolfe said. And in many of them, the rules are outdated and inadequate.

Indian stock markets saw record weekly gains, adding Rs 26.4 lakh crore in investor wealth. Sensex and Nifty surged over 3%, with BSE Midcap and Smallcap indices outperforming. Key drivers included FPI inflows, ceasefire news, and strong sectoral rallies in defence, NBFCs, and auto. It was a week equity investors would not forget in a hurry. Investor wealth shot up Rs 26.4 lakh crore — the highest ever weekly rise — with as much as 60% of the gains coming on Monday alone. This was on the back of sharp rise in benchmark and broader indices. The Sensex jumped 2,876.12 points, or 3.62%, to close at 82,330.59, while the Nifty surged 1,011.80 points, or 4.21%, to end above the 25,000 mark at 25,019.80 — marking their best weekly performance in a month. Broader markets significantly outperformed the benchmarks. The BSE Midcap index rose 6.87%, posting its best weekly gain in two months, while the BSE Smallcap index soared 9.21%, marking its biggest weekly rise in five years (since April 12, 2020). Notably, both indices recorded gains in all five trading sessions of the week. Both foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) were net buyers to the tune of Rs 13,284 crore and Rs 9,557 crore, respectively. This includes FPI inflows of $1 billion (Rs 8,831.05 crore) and DII inflows of Rs 5,187.09 crore on Friday alone. “The Indian equity markets opened the week on a strong note, buoyed by the announcement of a ceasefire agreement between the two nuclear-armed neighbours, India and Pakistan. “This pivotal development swiftly dispelled a cloud of geopolitical uncertainty that had weighed on investor sentiment, triggering a wave of optimism across the markets,” said Vinod Nair, head of research, Geojit Financial Services. The week proved to be spectacular, with key indices posting their strongest single-day gains in over four years. Defence, NBFCs, and automobiles were among the standout sectors, driven by renewed investor confidence in the improving business outlook, Nair added. On Friday, while the benchmark indices declined marginally — down up to 0.24% — the BSE Midcap and BSE Smallcap indices continued to rise, gaining up to 1.18%. “Markets traded lackluster after Thursday’s surge and ended marginally lower in the absence of fresh triggers. The tone remained subdued from the outset, with consolidation in heavyweight stocks across sectors capping the movement throughout the session,” said Ajit Mishra, SVP – Research, Religare Broking. He added that more than the recovery in benchmark indices, the broad-based rebound offered greater relief to market participants. Sustained FII inflows and stable global cues are further supporting the positive sentiment. All the sectoral indices on both BSE and NSE recorded weekly gains. Industrials, realty, capital goods, services, and metals were the top performers, rising up to 11.07% over the week. Among the Sensex 30, Tata Steel, Eternal, Tech Mahindra, Adani Ports, and Bajaj Finance were the top gainers, climbing up to 10.3% during the week.

Promoter share pledges in BSE 500 rose to Rs 1.57 lakh crore in Q4. Fresh pledges seen in 69 firms, including Max Financial and Easy Trip. High pledges at Vedanta, IndusInd Bank raise risks. Declines in Aster DM and GMR Airports signal improved investor sentiment. By Nesil Staney Promoter shares pledged for loans in the BSE 500 universe rose by 0.86% in the March quarter. The net value of promoter pledge stood at Rs 1.57 lakh crore or 0.43% of the BSE 500 market capitalisation. Promoters of 69 companies freshly pledged shares during this period, according to data from Kotak Institutional Research. Companies in which the promoter pledge rose include Ashok Leyland, Easy Trip, Kalyan Jewellers, Max Financial Services and PVR Inox. The firms where the promoter pledge declined include Aster DM Healthcare, GMR Airports, Jindal Steel and Power, Lloyds Metals and Swan Energy, among others. High promoter pledge is often seen as a distress signal, which can lead to negative perception in the equity markets and increased volatility in their shares. Companies with extremely high pledge include Vedanta, where 100% of promoter shares are pledged even as they are moving to a demerger to address debt woes. Some other companies like Sagility, International Gemological Institute also have full promoter share pledge. If the share prices fall, lenders may offload pledged shares in the open market to recover their funds. This poses risks of promoter losing control and sharp fall in share prices. Companies where the promoter pledges are high and the share prices have fallen are most at risk of margin calls and forced sale risks. “While pledges are viewed negative, in some cases they can be in the interest of minority shareholders. Some promoters raise money for business expansion than personal interests,” said Dhiraj Sachdev, chief investment officer of Roha Ventures. Large companies in the Nifty 50, with more than 5% of pledged holdings include IndusInd Bank, which is facing an accounting fiasco. The promoter pledge in IndusInd is 50% in March after the Hindujas raised money to buy Reliance Capital. Apollo Hospitals with 13.5%, Asian Paints at 9.3% and JSW Steel with 13.4% are some other large companies with significant pledges. Some other companies in the BSE 500 where pledges increased in the March quarter include Emami, Medplus Health Services and TVS Holdings. In all three, the promoter pledge increased by 4%. Anupam Rasayan, Jyoti CNC Automation, JSW Energy, Archean Chemical, Ajanta Pharma and Solar Industries. Chalet Hotels, Hindustan Zinc, Aurobindo Pharma and Apollo Hospitals also have significantly large promoter pledges. Five largest declines during the quarter happened in Aster DM Healthcare, GMR Airports, Swan Energy, Jindal Steel and Power and Lloyds Metals. In Aster DM, the percentage of pledged shares fell sharply from 98.9% to 40.7%. Aster, which merged with Quality Care India, is an example of how markets reward lower pledge. Its stock price is currently trading at an all time high of around Rs 600. In value terms, Hindustan Zinc, an affiliate of Vedanta, has the largest pledge at Rs 180 billion. It is followed by JSW Steel and Ashok Leyland with Rs 155 billion and Rs 126 billion, respectively.