Capital cuts
At the end of the Diwali festive season, pollution levels in Indian cities once again dominated the headlines. This annual crisis is particularly acute in Delhi and surrounding areas, where festive fireworks along with stubble burning from northern states create hazardous air quality.
Immediately after the celebrations, the AQI rose seven-fold in the National Capital Region between 12-2 am, with Gurugram’s PM2.5 (µg/m³) reading at 877, followed by Noida at 760 and Delhi at 743, data from the Central Pollution Control Board (CPCB) showed. Delhi’s 24-hour average AQI on Diwali, 20 October, reached 345, the highest value for Diwali since 2021, when it was 382. It further deteriorated to 351 on 21 October.
Festive ride
India’s consumption rose rapidly in September and October as festive fervor and the impact of the Goods and Services Tax (GST) cut led to higher spending.
A Mint analysis of the Transport Ministry’s Vahan portal, which tracks vehicle registrations, showed that car sales in the first two weeks of October were up almost 20% year-on-year compared to the same period last year. On the other hand, sales of two-wheelers – considered a proxy for gauging demand at the lower end of the income spectrum – first grew by 6.9% in September and then by 46% in October.
But economists said it was too early to suggest a recovery in consumption, noting that sustained momentum in the coming months would confirm the same.
Return of investors
After three consecutive months of selling stocks, foreign investors are showing a possible shift in their outlook. After almost downloading ₹Foreign portfolio investors (FPIs) invested 76,619 million crowns in shares between July and September ₹7,362 crore to the Indian markets during the current month till October 20, according to the latest data from the National Securities Depository Limited (NSDL).
While this suggests that the recent festivities and the GST rate cut have lifted sentiment, 2025 has largely seen an outflow, with six of the last 10 months recording net sales. So far in 2025, Indian stocks have witnessed almost a net sell ₹1.5 trillion.
The numbers speak
15-16%: Possible US tariff rate Indian exporters could face from a steep 50% if a long-term trade deal is struck between the two countries, Mint reported. India hopes to seal a trade deal by November.
49%: Singaporean Keppel Ltd has acquired a stake in pan-Asian solar developer Cleantech Solar from energy major Shell Plc. The deal, worth around $200 million, gave Keppel full control of the company, Mint reported.
7.7 billion dollars: That’s the amount the Reserve Bank of India (RBI) sold in August to check exchange rate volatility and stem the rupee’s decline against the dollar, the Press Trust of India said.
3%: Year-on-year growth in India’s key sector output fell in September from the 6.5% growth seen in the previous month. The slowdown was broad-based, with seven of the eight key sectors recording lower growth or declines.
₹6,600 million: The value Indian e-commerce company Meesho could unlock through its initial public offering (IPO). The Securities and Exchange Board of India (SEBI) approved the IPO earlier this week.
Credit recovery
After several subdued quarters, banks in India are witnessing a gradual recovery in corporate loan growth, with strong demand developments raising hopes for a sharper turnaround in the second half of the current fiscal year.
While the increase is largely driven by working capital financing, some equity-linked loan and project finance deals are also re-emerging in sectors such as infrastructure, renewables and manufacturing, Mint said.
HDFC Bank, Axis Bank, IndusInd Bank and Bank of India reported higher year-on-year growth in their corporate loans in the second quarter. Corporate credit demand at banks came as yields on benchmark 10-year government bonds rose 20 basis points (bps) to 6.5% in the September quarter with geopolitical uncertainty mounting.
Compensatory correlation
For those at the corporate top, big paychecks aren’t just salaries, but high incentive packages tied directly to performance. Coin analysis of Nifty 500 companies confirms this correlation: in FY22, when profit after tax rose 59% year-on-year, CEO compensation jumped 35.5%. Similarly, 34% profit growth for FY24 translated into an 18.1% rise in wages. However, this alignment works both ways.
During a tough period in fiscal 21 triggered by the pandemic, when profits fell by 28%, CEO pay also fell, albeit slightly. Recently, businesses have been dealing with a slowdown in consumption, which has led to cost optimization measures to protect the bottom line. This trend is reflected in projected single-digit growth in CEO compensation for FY25 amid a modest recovery in earnings.
