Business news highlights (April 23): Indian Oil plans to operate Gujarat refinery at higher capacity from mid-2026

• Indian Oil Corp, the country's top refiner, plans to operate its Gujarat refinery in western India at an expanded capacity of 360,000 barrels per day (bpd) by mid-2026, executive director Biplob Biswas said on Wednesday.
• India is expanding its crude refining capacity to meet rising local demand for fuel.
• IOC is revamping one of the five crude units at the 274,000 bpd refinery in Gujarat to raise overall capacity by 86,000 bpd.
• "Our expansion is on track for completion by June-July of next year... The project will be completed in two phases," Biswas said during a press conference. - Reuters

• RBI Governor Sanjay Malhotra emphasized the importance of monetary policy in supporting domestic demand to strengthen growth momentum.
• RBI Deputy Governor Rajeshwar Rao noted that while inflation remains under control, GDP growth may come under pressure.
• RBI Executive Director Rajiv Ranjan highlighted that a shift in policy stance offers a clearer indication of future rate decisions.

• On Wednesday, the World Bank revised its economic growth outlook for India, citing growing global economic uncertainty that is expected to negatively affect most South Asian economies.
• The Bank reduced its projection for India’s growth in the fiscal year beginning April 1 by 0.4 percentage points, bringing it down to 6.3% from its earlier forecast in October.
• “While private investment may benefit from monetary easing and streamlined regulations, these gains are likely to be outweighed by global economic headwinds and ongoing policy uncertainty,” the World Bank noted in its South Asia report.
• It also lowered growth estimates for several other South Asian countries, warning that many have “limited buffers to absorb global shocks.”

South Korean multinational Samsung is evaluating a shift of some of its smartphone and electronics manufacturing from Vietnam to India, aiming to mitigate risks tied to potential US tariffs on Vietnamese exports, Moneycontrol has learnt. Vietnam currently serves as Samsung’s primary production hub, however, escalating trade tensions have prompted the consumer electronics giant to explore India as a strategic alternative to serve global markets, including the US. (Read More)

Intel Corp. is preparing to announce a workforce reduction of more than 20% this week, as part of an effort to trim bureaucracy and improve efficiency at the struggling semiconductor company, according to Bloomberg report.

Aurobindo Pharma announced on Wednesday that its wholly-owned subsidiary, Eugia Pharma Specialities Ltd, has received final approval from the U.S. Food and Drug Administration (USFDA) to manufacture and market generic Dasatinib tablets in the U.S.

The approved strengths include 20 mg, 50 mg, 70 mg, 80 mg, 100 mg, and 140 mg. The drug is used to treat certain types of bone marrow and blood cancers and is a bioequivalent to Bristol-Myers Squibb's Sprycel.

Aurobindo plans to launch the product in the first quarter of FY26. The drug had an estimated U.S. market size of $1.8 billion for the 12 months ending February 2025, according to IQVIA data.

India’s leading investment funds are shifting focus inward, betting on the resilience of the domestic economy and a rebound in corporate earnings while moving away from export-reliant sectors as global trade tensions escalate.

The NSE Nifty 50 index has clawed back nearly 8% over the past two weeks, recovering from a tariff-driven slide earlier this month. Despite the rebound, the index is still 8% below its all-time high from late September, pressured by muted earnings, foreign capital outflows, and ongoing geopolitical uncertainty.

Fund managers are scaling back exposure to global-facing sectors like IT, energy, and commodities, and are instead doubling down on financials, consumer staples, healthcare, and defense.

A methane gas leak occurred at a state-owned GAIL plant in Madhya Pradesh’s Raisen district early on Wednesday, causing panic in the surrounding area. The leak, which took place around 2 am at the Mandideep industrial plant, located 35 km from Bhopal, was later contained, and no casualties were reported.

As a safety measure, traffic on the road leading to the plant was temporarily halted, and production in all industrial units within a 200-meter radius of the plant was immediately shut down. Methane, a colorless and odorless gas, is highly flammable.

Local authorities acted swiftly to control the situation, ensuring the safety of nearby residents and workers.

Volvo’s net sales fell by 7% year-on-year in the first quarter of 2025, largely impacted by U.S. President Donald Trump’s tariff policies. Vehicle sales dropped by 9%, although the company’s underlying service business grew by 2% compared to the previous year.

Martin Lundstedt, President and CEO of Volvo, noted increased uncertainty around tariffs and their effects on global trade during the quarter. Despite lower vehicle volumes, the company posted an operating income of SEK 13.3 billion ($1.39 billion), with a margin of 10.9%. This was a decrease from last year’s operating income of SEK 18.2 billion, when the margin stood at 13.8%.

(From CNBC)

Singapore’s inflation remained at a more than four-year low in March, with the consumer price index (CPI) rising 0.9% year-on-year, unchanged from February and below the 1.1% increase forecast in a Reuters poll.

The Monetary Authority of Singapore said the main drivers of March's headline inflation were rising food and private transport costs. On a month-on-month basis, CPI dipped by 0.1%.

Core inflation — which excludes accommodation and private transport — eased slightly to 0.5% in March from 0.6% in February, reflecting a broader decline in price pressures across most categories except food.

The data comes just ahead of Singapore’s general election on May 3, with the campaign period beginning Wednesday as candidates submitted their nomination papers.

The rupee opened weaker on Wednesday and extended its slide as bullish traders unwound positions after the currency failed to decisively break through the key 85 level. A rebound in the U.S. dollar added further pressure on the local unit.

At 11:25 a.m. IST, the rupee was trading at 85.4450 per U.S. dollar, having opened at 85.2625. The 200-day moving average, positioned around 84.90–85.00, acted as a strong resistance earlier this week.

“The rupee’s inability to breach 85 seems to have triggered a retreat by bullish players,” said a currency trader at a private bank, noting increased demand from importers on his FX desk.

Meanwhile, most Asian currencies fell after the dollar index surged 1.5% on Tuesday. The greenback rallied after U.S. President Donald Trump ruled out firing Federal Reserve Chair Jerome Powell, soothing market concerns.

Further support for the dollar came from Treasury Secretary Scott Bessent, who voiced confidence in a near-term de-escalation in U.S.-China trade tensions.

LG Electronics is said to pause work on India unit’s IPO plans: Report

Market unease over trade is being compounded by ongoing tensions between Trump and the U.S. Federal Reserve. Trump has repeatedly pushed for interest rate cuts and even suggested firing Fed Chair Jerome Powell.

Leavitt accused the Fed of maintaining its benchmark rate for political reasons rather than economic ones. Trump later softened his tone, saying he had no intention of firing Powell but reiterated his desire for proactive rate cuts: “I want him to be early.”

As financial markets respond to these mixed signals on trade and monetary policy, investors are closely watching for clarity—especially regarding U.S.-China negotiations, which remain one of the most significant overhangs on the global economy.

Beijing issued a sharp warning to other nations on Monday, cautioning against trade agreements with the U.S. that could hurt China. “China firmly opposes any party reaching a deal at the expense of China’s interests,” its Commerce Ministry said in a statement.

While talks with China remain stalled, the Trump administration is actively engaging with several other key trading partners. Discussions have taken place with Japan, India, South Korea, the European Union, Canada, and Mexico.

Despite those efforts, Trump has shown no intention of removing the baseline 10% tariff he imposed earlier this year. Instead, the administration is urging other countries to cut their own import taxes and eliminate non-tariff trade barriers that the U.S. says are limiting exports.

White House press secretary Karoline Leavitt said the administration had received 18 trade proposals from various countries and confirmed that 34 nations were expected to hold talks with U.S. officials this week. “Everyone involved wants to see a trade deal happen,” she said.

Later in the day, President Donald Trump refrained from echoing Bessent’s assessment. When asked whether he agreed that the China situation was unsustainable, Trump deflected, saying, “We’re doing fine with China.”

Nonetheless, he signaled a softer stance toward Chinese President Xi Jinping and hinted at a significant reduction in tariffs as part of a future deal. “It won’t be that high, not going to be that high,” Trump said of the current 145% import tax on Chinese goods. “We’re going to live together very happily and ideally work together.”

U.S. Treasury Secretary Scott Bessent said on Tuesday that the current state of tariffs between the United States and China is “unsustainable,” expressing hope for a de-escalation in the trade war between the world’s two largest economies. However, he also acknowledged that formal negotiations between Washington and Beijing have yet to begin.

Speaking privately to investors at a JPMorgan Chase event in Washington, Bessent cautioned that progress with China would be slow. “I do say China is going to be a slog in terms of the negotiations,” he said, according to a transcript obtained by The Associated Press. “Neither side thinks the status quo is sustainable.”

Bessent’s remarks, initially reported by Bloomberg, helped lift U.S. stocks. The S&P 500 surged 2.5% after the news broke.

While talks with China remain in early stages, the U.S. is making some progress with other partners. A potential interim trade framework is taking shape with Japan, though it avoids the most contentious issues and may not culminate in a final deal, according to sources.

The U.S. and India have also agreed on the “Terms of Reference” for a broader negotiation plan following Vice President JD Vance’s visit to New Delhi, setting the groundwork for deeper talks ahead.

Later Tuesday, Trump struck a hopeful note, saying he believed progress with China was possible and that tariffs could be significantly reduced—but not eliminated. “It won’t be anywhere near [current levels],” he said, “but it won’t be zero.”

The comments spurred a market rally, with major tech stocks like Amazon and Nvidia rising 3% each in extended trading, and Apple gaining 2%. The S&P 500 surged 2.5% after weeks of pressure from tariff-related fears.

China’s economy is also feeling the heat. The IMF slashed China’s growth forecast to 4% for both 2025 and 2026 as 145% tariffs on Chinese goods entering the U.S. take hold. China has retaliated with 125% tariffs on U.S. imports, effectively locking both economic giants in a punishing trade freeze.

U.S. Treasury Secretary Scott Bessent acknowledged the unsustainable nature of the impasse. Speaking privately at a JP Morgan investor conference, he called the path to resolution with China a “slog” that has yet to formally begin but said he anticipates eventual de-escalation.

After setting a base import tax of 10% and much steeper rates on dozens of nations, Trump paused the increases for 90 days to allow space for negotiations. Yet the damage is already apparent.

With tariffs now at their highest level in over a century, the IMF forecasts global GDP growth will drop to 2.8% in 2025—down from 3.3% in 2024 and the slowest pace since the pandemic. The U.S. economy isn’t spared: GDP growth is expected to fall to 1.8% in 2025 from 2.8% in 2024, with inflation revisions trending higher due to rising import costs.

The International Monetary Fund (IMF) warned on Tuesday that global economic output will slow significantly in the coming months as steep U.S. tariffs under President Donald Trump begin to weigh heavily on global trade. With nearly every major trading partner impacted, finance ministers and trade envoys swarmed Washington for the IMF and World Bank spring meetings, hoping to negotiate relief from the sweeping levies.

White House press secretary Karoline Leavitt said the U.S. is in talks with 34 countries this week, with 18 already submitting proposals. Trump himself expressed optimism about progress with China, suggesting any future deal could result in “substantially” lower tariffs, helping to lift market sentiment.

Improved risk sentiment also lifted cryptocurrencies. Bitcoin rose nearly 2% to $92,942, crossing $90,000 for the first time since March, while Ether jumped over 4% to $1,768.

As geopolitical tensions and economic signals continue to drive investor sentiment, oil markets are likely to remain volatile in the near term.

Trump also struck a more conciliatory tone on China, saying any eventual trade deal could “substantially” lower tariffs, though they “won’t be zero.” U.S. Treasury Secretary Scott Bessent echoed this optimism, suggesting a de-escalation in trade tensions was likely, although formal negotiations with Beijing are yet to begin and could be a “slog,” according to remarks at a JP Morgan investor conference.

Analysts believe improved trade relations could ease fears of a global economic slowdown, which have been weighing on oil markets. “Trade is the bigger story here,” said Matt Simpson of City Index, “as how tariffs play out will dictate where the U.S. economy, and therefore U.S. interest rates, are headed.”

Meanwhile, broader market sentiment improved after U.S. President Donald Trump stepped back from threats to fire Federal Reserve Chair Jerome Powell. “I have no intention of firing him,” Trump said Tuesday, adding he hoped Powell would become “more active” in cutting interest rates.

This reassurance helped the U.S. dollar recover, rising over 1% against the yen to 143.21 in early Asian trading, before settling slightly stronger at 141.77. Against the Swiss franc, the greenback was 0.29% higher at 0.8216, after an earlier surge. The dollar index, which tracks the currency against a basket of others, was down 0.4% at 99.165 after gaining 1.5% the previous session.

In a further boost to market sentiment, U.S. crude oil inventories dropped by around 4.6 million barrels last week, according to market sources citing data from the American Petroleum Institute (API). The larger-than-expected drawdown suggests stronger demand or tighter supply. Official U.S. Energy Information Administration (EIA) data is expected later Wednesday, with analysts forecasting a more modest decline of 800,000 barrels.

Supporting the price rise, the U.S. announced fresh sanctions on Tuesday targeting Iranian liquefied petroleum gas (LPG) and crude oil shipments. The Treasury imposed penalties on Seyed Asadoollah Emamjomeh and his corporate network, which has allegedly been responsible for exporting hundreds of millions of dollars’ worth of Iranian oil to foreign buyers, violating U.S. sanctions.

Oil prices rose nearly 1% in early trade on Wednesday, continuing Tuesday’s upward momentum, as investors weighed a combination of geopolitical developments and economic signals. Brent crude futures climbed 61 cents, or 0.9%, to $68.05 a barrel by 0007 GMT, while U.S. West Texas Intermediate (WTI) crude was up 60 cents, or 0.94%, at $64.27 per barrel.

Asian markets posted gains in early trading, with Japan’s Nikkei and Hong Kong’s Hang Seng Index both rising nearly 2%, reflecting optimism from global markets.

Gold prices dropped from their record highs as investors hoped for progress on U.S.-China trade negotiations, leading to less demand for the safe-haven asset.

European markets closed higher, buoyed by comments from European Central Bank (ECB) President Christine Lagarde, who indicated that Eurozone disinflation was nearing completion.

Tesla shares rose nearly 5% in after-market trading following remarks by CEO Elon Musk, who stated that he would "spend less time in DOGE" (Dogecoin), sparking renewed interest in the electric vehicle maker.

U.S. stock futures saw a rise after President Trump clarified that he did not intend to remove Federal Reserve Chairman Jerome Powell, calming investor concerns. Meanwhile, U.S. stock markets rebounded, with the Dow Jones and Nasdaq breaking a four-day losing streak.

Global markets showed signs of recovery on Wednesday as investors reacted to key developments, including rising optimism over U.S.-China trade relations and reassuring comments from U.S. President Donald Trump about the Federal Reserve.