ECONOMY | PAGE 2 COMPANIES | PAGE 5 Tesla cuts entry price of ModelYelectric SUV INTERNATIONAL | PAGE 7 Realtors pin hopes on Kolkata market revival MUMBAI, SATURDAY, MAY 30, 2026 Anthropic pips OpenAI to be most-valuableAI firm FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL LXVI NO. 127, 36 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: 74,775.74 ▼ 1,092.06 NIFTY: 23,547.75 ▼ 359.40 NIKKEI 225: 66,329.50 ▲ 1,636.38 HANG SENG: 25,182.39 ▲ 176.23 `/$: 95.00 ▲ 0.69 `/€: 110.60 ▲ 0.86 BRENT: $91.93 ▼ $1.78 GOLD: `1,55,964 ▲ `564 AVIATION SECTOR STARTS FY27 ONAWEAK NOTE P4 Intel, 3DGS to build $3.3-bn substrate plant in Odisha US CHIPMAKER INTEL and 3DGS will invest about $3.3 billion to set up a substrate manufacturing plant in Odisha, the government said on Friday. Union Minister of Electronics and IT Ashwini Vaishnaw, Chief Minister Mohan Charan Majhi, Intel CEO Lip-Bu Tan virtually witnessed the signing of an agreement for the plant to be set up in Bhubaneswar. ■ PAGE 3 96 93 93 97 91 88 88 86 60 40 20 0 2009 2012 2014 2015 2018 ^2nd long range forecast ■ All regions except North- east India expected to get ‘below-normal’ rainfall rainfall at 92% of the LPA. MrutyunjayMohapatra,director general of IMD,stated that currentlyneutral El-Nino conditions are transitioning to active mode over the equatorial Pacific region, and he expects weak-to-moderate ElNino conditions to develop during the next four months. According to the latest prediction, which comes with a In itsApril forecast, IMD had predicted monsoon rainfall at 92% of the LPA ■ modelling error of ±4%, there is a high 84% chance that the rains will fall in the “deficient to below-normal”range. The last two years saw above-normal monsoon activity (108%), while 2023 witnessed below-normal rains (94%). In 2015, precipitation was 86% of the benchmark. TheIMDsaidrainfallismost likely to be normal over North- Marketsgointoatailspinon highestFPIsell-off,fall1.5% CCI to give errant firms more time for ● MSCI index rejig, monsoon forecast corrective steps THE COMPETITION COMMISSION of India (CCI) has proposed to relax the procedures and give additional time to businesses facing its investigation to offer corrective measures that could allow them to avoid penalty and prolonged litigation, reports Manu Kaushik. ■ PAGE 3 80 78 also behind slump SUDDEN DROP SENSEX Intra-day, May 29 1.44% KUSHAN SHAH Mumbai, May 29 BENCHMARK EQUITY INDICES, after remaining listless formost of Friday’s trading session,tumbledfollowingforeign portfolio investors’ net sales of `21,106 crore — the highesteverrecordedinasingle session.The sharp sell-off was triggeredprimarilybytheIndia Meteorological Department (IMD) lowering its monsoon rainfallforecastfortheupcoming season.There was also significant action in select stocks duringthefinalhouroftradeas the rebalancing of the MSCI Global Standard Index came into play,said market experts. The Sensex and the Nifty declined by 1,092 points and 359pointstocloseat74,775.74 and 23,547.75, respectively, marking losses of 1.44% and 1.50%.Thenegativesentiment spread to the broadermarket as well,with the BSE Midcap and the BSE Smallcap falling 493 points (1.04%) and 437 points (0.82%),respectively. While FPIs were net sellers, domestic investors were net ■ The country witnessed above-normal monsoon (108%) in the last 2 years east India (94-106% of LPA) and below normal over Central and South Peninsular India (below 94% of LPA) and Northwest India (below92% of LPA). “Below-normal rainfall mayleadtochallengesforagriculture, water availability, hydropower generation...,”the weather agency cautioned. Continued on Page 7 ‘Egregious error’: SC reliefto RIL in 2007 case FE BUREAU New Delhi, May 29 and utilities were among the biggest laggards. The IT pack led the gainers,driven by gains in Tech Mahindra, HCLTech and Infosys, along with Larsen & Toubro. Stocks witnessing the steepest declines included InterGlobe Aviation, Power Grid, NTPC, Bajaj Finance and Mahindra & Mahindra. IN A RELIEF to Reliance Industries (RIL) in the 2007 case of derivatives trading, the Supreme Court on Friday set aside a disgorgementorderof`447.27 crore by the Securities and Exchange Board of India (Sebi). Abench comprising Justices JB Pardiwala and R Mahadevan saidtheSecuritiesAppellateTribunal(SAT)committedan“egregious error” in its November 2020 order with regard to the questionoffraudundertheSebi (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003.The SAT order dismissed Reliance’s appeal againsttheSebi’s2017findings offraudulentandmanipulative trading in Reliance Petroleum’s shares and derivatives in 2007. “However, we concur with the SAT’s observations in its majority judgment as regards the penalty to be levied on the appellant number 1 (RIL) for violating the disclosure requirements under the 2001 Sebi circular concerning position limits,”the bench added. Continued on Page 10 Continued on Page 10 75,867.80 74 775 74 74,775.74 Previous close Close TOP SECTORAL LOSERS %loss FPI NET SELLING Hospitals Metal Energy Utilities Oil&Gas (in ` crore) 11,299 NEETTO GO FULLY DIGITAL AFTER PAPER LEAK ROW P23 93 Performance 12,026 » INSIDE « 100 Forecast 12,244 WITHIN THREE WEEKS of the launch of the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 by the Centre, banks have received 20,000 loan applications worth around `25,000 crore, reports fe Bureau. (% of LPA*) 120 15,507 ECLGS 5.0: FIRMS SEEK `25,000-CR CREDIT COVER Bad monsoon years 21,106 PAGE 2 THE INDIA METEOROLOGICAL Department(IMD)onFriday lowered its forecast of “below-normal” southwest monsoonrainfallforJune-September this year to 90% of the long-period average (LPA), implying that the coming monsoon could be theweakest since 2015. A below-par monsoon could adversely impact agriculturaloutput,besideshitting the rural economyand stoking inflation. The threat of generalised price pressures in the economy,stemmingfromfood prices, is now amplified becausetheWestAsiacrisishas already inflated the costs of various forms of energy, including auto fuels. A sharp rise in WPI inflation also increases the risk of a faster second-round pass-through to consumerprices.The grimmer monsoon forecast comes ahead of the Reserve Bank of India’s (RBI) monetary policy review slated for June 3 to 5. In its earlierforecast issued inApril,theIMD hadpredicted FARM FEAR May 29 2026 Oct 3 2024 Jun 4 2024 Feb 28 2025 Mar 23 2026 ECONOMY SANDIP DAS New Delhi, May 29 -2.75 THE NEGOTIATIONS BETWEEN India and the US on a trade agreement are in the final stages, with only 1% of the deal remaining to be finalised, US Ambassador to India Sergio Gor said on Friday, reports Mukesh Jagota. Bad tidings: IMD forecasts weakestmonsoonin11yrs -2.30 JUST 1% OF DEAL REMAINS TO BE FINALISED: GOR -2.23 PAGE 2 -2.16 ECONOMY INFLATIONCONCERNSRISEBEFOREMPCMEET;KHARIFCROPSMAYTAKEAHIT -2.08 IN THE NEWS buyersofsharesworth`16,764 crore.Investorwealtherodedby `4.47lakhcroreduringtheday. Market breadth remained sharply negative, with 1,611 stocksadvancingagainst2,673 declining, resulting in an advance-decline ratio of 0.60. Twenty-two of the 25 sectoral indices ended in the red, with onlyITandtelecomstocksclosing higher. Oil & gas, metals US,Iran on theverge of interim deal to endwar REUTERS Washington/Dubai, May 29 US PRESIDENT DONALD Trump said he would decide on Friday over a potential deal with Iran to extend their ceasefire that would need to include opening the Strait of Hormuz and dismantling Tehran’s capacity to make a nuclear weapon. “I will be meeting now,in the Situation Room, to make a final determination,” he said, referring to the White House’s nerve centre for monitoring global crises. Sources had said a deal was in the offing to extend a truce in place since earlyApril for another 60 days to allow oil and gas shipments to resume through the strategic Continued on Page 7 Coming:MandatoryAIrisk disclosuresbyIndiaInc MANU KAUSHIK New Delhi, May 29 FUTURE-READY FIRMS AS PART OF the government’s pushtostrengthenoversightof artificialintelligence(AI)across Corporate India, company boards might soon have to formallydisclosetheirexposureto AI and digital risks under new reporting obligations. According to an official familiar with the discussions, theministryofcorporateaffairs (MCA)mightexpandthedisclosure requirements under the Companies Act to ensure that boards take bigger responsibility for AI-related risks such as dataprivacy,algorithmicbias,IP infringement, operational disruptions and cybersecurityvulnerabilities.“Thetimingisright forAI-related risks to be part of board-level disclosures,consideringtheincreasingintegration expanding disclosure norms under Companies Act to ensure that boards take bigger responsibility for AI-related risks ■ Govt mulls ■ The aim is to strengthen corporate governance norms amid a surge in AI adoption across sectors POWER SHIFT PART- II As India pushes electrification to cut fossil-fuel dependence, a three-part series examines whether consumers can afford the transition INDIA’S ENERGY TRANSITION isincreasinglybecoming a household-budget story. For a middle-class family, energy expenses extend far beyondthemonthlyelectricity bill.A two-wheeler owner may spend `3,000-5,000 every month on petrol.A household using one LPG cylinderspends `850-950. During summer, electricitybills often double as air-conditioners and cooling appliances run longer hours. Electrification is intended to reduce that exposure. The principle is simple: replace recurring expenditure on imported fuels with domestically generated electricity. For households, rooftop solar represents perhaps the clearest example of an affordabilitygap that still needs to be GREEN PUSH Installations Installations SolarPVmodule underPM- underPM- manufacturing SuryaGhar KUSUM capacity 1.87 7.67 million 2x increase GW 2x increase 172 GW 98GW addedinFY26 Importsof solar modules Commercial& industrialsolar capacityaddition $758 15 million* 3x decline GW 1.5x increase FY2026;*FY26solarmoduleimportdatatillJanuary2026;DataasonMarch31,2026,unlessotherwisespecified;Source:MNRE bridged. The PM Surya Ghar programme has crossed 4 millionrooftopsolarinstallations, with the government targeting10millionhouseholds.The scheme offers subsidies of up to `78,000 and is designed to help consumers reduce electricity bills while contributing surplus power to the grid. Forahouseholdconsuming 300-400 units a month, rooftop solar can significantly reduce power purchases from the distribution company. Depending on consumption patterns and state tariffs,families can save thousands of rupees annually. Over 20-25 years, cumulative savings can far exceed installation costs. Yet rooftop solarstill covers only a small fraction of India’s more than 300 million households. The reason is straightforward.Even aftersubsidies,a residential rooftop system requires an upfront investment running into tens of thousands of rupees, forcing ■ Proposed move comes amid growing concerns that large-scale deployment ofAI systems could expose companies to different kinds of vulnerabilities of AI into business operations,” the official said. The move comes as the government aims tostrengthenthecorporategovernance norms amid a surge in AI adoption across sectors.The official noted that these disclosures could come in the form of a“AI&digitalriskstatement”as part of the board’s report. Continued on Page 7 RBI sees resilient economy amid geopolitical tensions KSHIPRA PETKAR Mumbai, May 29 INDIA’SECONOMYISexpected to remain resilient in 2026-27 despite rising geopolitical tensions and a weakening global environment. However, a prolonged conflict in West Asia couldweighongrowth,inflation andkeysectors,accordingtothe Reserve Bank of India’s annual report. “The adverse impact of outbreakoftheconflictinWestAsia in end-February 2026 is reflected in the forecasts of globalgrowthandinflation,”the RBI said.The central bank projected real GDPgrowth at 6.9% for2026-27andCPIinflationat 4.6%, cautioning that risks to growth remain tilted to the downside while inflation risks are skewed upward due to »INSIDE« PSBs ACCOUNT FOR 74% OF FRAUD AMOUNT IN FY26 P6 SHARP GROWTH IN BOTH CASH, UPI: RBI DATA P2 volatilecommodityprices,supplydisruptionsanduncertainty in global financial markets. The report said India’s growth outlook continues to be supported byhealthycorporate and banking sector balance sheets,government-led capital Next energychallenge: Cheap power,costlytransition SAURAVANAND New Delhi, May 29 waterway while negotiators tackle tricky issues such as Iran’s nuclear programme. “Iran must agree that theywill never have a Nuclear Weapon or Bomb. The Hormuz Strait must be immediatelyopen,no tolls, for unrestricted shipping traffic, in both directions,” Trump said, adding that nuclear material would be “unearthed” by the US. A senior Iranian source told Reuters that a political understanding overthewar had been reached but not yet finalised. manyhouseholds to eitherdip into savings or seek financing. “Consumers understand the long-term savings. The challengeisaffordabilityatthe pointofpurchase.Mosthouseholds evaluate the immediate cost before they evaluate twentyyears of electricity savings,” said an analyst tracking the distributed-solar sector. Industry executives cite limited consumer awareness, financing constraints, inconsistent net-metering regulations,approval delays and concerns over installation quality as key barriers.Urban housing patterns create another hurdle. A large share of India’s urban population lives in apartment complexes where rooftop ownership is fragmented,limiting the scope for individual installations. Experts believe rooftop solar combined with battery storage could transform household energy consumption over the next decade by allowing consumers to store excessdaytimegenerationand use it after sunset, when demand peaks and tariffs are often higher.However,despite sharp declines in battery prices, residential storage remainsexpensive.Adoptionis expected to accelerate only as costsfallfurtherandfinancing options improve. The affordabilitydebate is even more relevant in rural India. The PMKUSUM scheme has emerged as one of the country’s largest consumer-facing renewableenergy programmes. Government data show more than 1 million standalone solar pumpshavebeeninstalledand nearly 1.3 million agricultural pumps solarised. Continued on Page 7 expenditure,andpolicysupport for manufacturing and infrastructure.However,theevolving geopolitical situation, particularly the conflict in West Asia, remains a major source of uncertaintyforboththedomestic and global economy. “The surging energy prices and disruptions in key shipping routes could intensify supply-side pressures,” the report added. It alsowarned that financial markets may remain volatile amid global risk aversion and a possible strengthening of the USdollar.Domesticbondyields could face upward pressure if global monetary easing stalls due to elevated oil prices, although fiscal consolidation andRBIliquiditymeasuresmay helpcontainsharpmovements. Continued on Page 10 RESULTS CORNER IndiGoswings intoredinQ4 INDIGO ON FRIDAY reported a consolidated net loss of `2,537 crore for the JanuaryMarch quarter,against a profit of `3,068 crore a year ago,as a sharp depreciation in the rupee more than offset gains from lower fuel costs and higher capacity deployment, reports Nitin Kumar. ■ PAGE 4 Asian Paints profit up 69% ASIAN PAINTS’ NET profit for the fourth quarter of FY26 grew 69.3% year-on-year to `1,172 crore amid demand momentum, reports Viveat Susan Pinto. India’s largest paint maker reported net sales of `9,246 crore, up 10.6% year-on-year. Both profit and revenue beat estimates. ■ PAGE 4