Inflation Hits Record Low, Tesla Arrives In India, Trump-Powell Shake Up — The Week That Was

This week in business and markets was packed with pivotal developments — from a historic drop in India's retail inflation to Tesla's long-awaited entry into the country, a blockbuster IPO and the kickoff of the earnings season. Each of these events carries significant implications for investors, consumers and policymakers alike.

India’s retail inflation cooled to 2.1% in June, its lowest level since January 2019, according to data released by the Ministry of Statistics and Programme Implementation. The figure was below both May’s 2.82% and Bloomberg’s median forecast of 2.3%, marking a sharp deceleration in price pressures.

The drop was driven largely by a 1.1% contraction in food prices — the first such decline since February 2019. With average inflation for Q1 FY26 now at 2.7%, below the Reserve Bank of India’s projection of 2.9%, the central bank may find more room to maintain accommodative monetary policy.

While this is good news for consumers and borrowers, it also raises questions about underlying demand in the economy. Policymakers will be watching closely to ensure the slowdown doesn’t signal deeper structural weakness.

In a landmark move, Tesla officially entered the Indian market this week, opening its first showroom in Mumbai. The EV giant’s debut comes with the launch of its Model Y, priced around Rs 60 lakh, and a host of incentives including EMI-based payment options and complimentary wall connectors for early buyers.

Deliveries for the 500-km range variant are expected to begin in Q3, followed by the 622-km variant in Q4. Tesla also confirmed plans to roll out its Supercharger network and wall connector infrastructure across key cities like Delhi, Mumbai, and Gurgaon. The entry of Tesla is expected to catalyze India’s EV ecosystem, boost competition, and accelerate infrastructure development in the sector.

Midweek, global financial markets were jolted by speculation that U.S. President Donald Trump might seek to remove Federal Reserve Chair Jerome Powell. The speculation, which originated from a White House source, triggered a brief bout of volatility before Trump clarified he had “no plans” to fire Powell and was only discussing the idea “in concept.”

The S&P 500 rebounded after Trump’s comments, while Treasury yields fell and the dollar halted a four-day rally. Softer-than-expected U.S. inflation data also reinforced expectations of rate cuts in 2025, adding to the market’s relief.

After months of lull, India’s IPO market roared back to life with the Rs 3,395 crore offering from Anthem Biosciences Ltd. The issue was subscribed a staggering 63.86 times by the close of its third day, as it received the highest institutional bids.

The IPO, entirely an offer for sale, saw bids for over 281 crore shares against just 4.4 crore on offer. While the company won’t receive fresh capital from the issue, the overwhelming response signals renewed investor appetite for high-growth, innovation-driven businesses. Anthem’s success could pave the way for more listings in the coming weeks, marking a revival of primary market activity.

The June quarter earnings season kicked off for banks with Axis Bank reporting a 4% year-on-year decline in net profit to Rs 5,806 crore, missing analyst expectations. Despite stable core operations, rising provisions and asset quality concerns weighed on performance.

The Nifty Private Bank index fell as much as 1.5% intraday on Friday, with eight of its nine constituents in the red. Investors are now eyeing upcoming results from HDFC Bank and ICICI Bank, which are expected to provide clearer signals on the health of the financial sector.

With 127 companies scheduled to report Q1 results this week, market sentiment will hinge on whether corporate India can deliver amid macroeconomic uncertainty.

Reliance Industries reported a 39% quarter-on-quarter rise in consolidated net profit to Rs 26,994 crore for the June quarter, driven by a one-time gain from the sale of listed investments.

Net profit, which came in above street estimates of Rs 19,775 crore, included other income of Rs 8,924 crore from the sale of listed investments, including proceeds from Reliance’s stake in Asian Paints.

Revenue, which came in line with estimates, declined 7% sequentially to Rs 2.43 lakh crore from Rs 2.61 lakh crore.