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ET Intelligence Group: Small and mid-cap firms fared poorly during the June quarter results season compared with their large cap counterparts, according to the ETIG analysis of over 3,100 companies. Net profit of small caps continued to slip for the third consecutive quarter, reaching a nine-quarter low growth of 7.5% year-on-year. Profit growth of mid-caps slowed to just 1%, which was the weakest in seven quarters. In contrast, large-cap companies reported a 9.5% rise in net profit, an improvement over the 8.9% growth recorded in the same quarter last year.The trend was similar in sales performance as large caps reported 6.7% growth, surpassing the 5.2% growth of small-cap firms and 5.7% growth of mid-cap firms."Risk-reward is slowly building towards mid and small caps. Nonetheless, recovery will be slow and gradual as we progress towards FY26, led by strong earnings expectations, improving domestic liquidity, and stable Indian macros," said Neeraj Chadawar, head - fundamental and quantitative research, Axis Securities.123687750Large caps have also been able to hold on to their profit margins while small and mid-caps have witnessed a declining trend. The aggregate operating margin of large caps stood flat YoY at 30.4% in the June quarter. However, for small caps, it shrunk to 13.3% from 15.3% in the year-ago quarter. Similarly, the operating margin of mid-caps fell to 17.7% from 18.2% by similar comparison.According to Chadawar, the market needs to sail through another couple of months smoothly before entering a concrete direction of growth.Experts believe that the Indian market has seen a significant correction in the last two odd months and has re-entered an oversold territory. Foreign investors have been selling off their stocks concerned about the potential impact of new US tariffs on Indian exports. Foreign Portfolio Investors (FPIs) sold a net total of $3.99 billion (₹34,993 crore) in Indian stocks during August.

MUMBAI: In a letter to the Prime Minister dated August 26, a copy reviewed by ET, former CFO of IndusInd Bank Gobind Jain claimed that he uncovered serious issues in treasury operations that had persisted for more than a decade. Jain said he was the only executive to detect the lapses and had fought a “lone battle” to highlight them.According to him, Mehta and his close aides created an “atmosphere of fear” within the bank, targeted him for exposing the problems, and shielded those responsible. Employees who supported Jain were also being singled out, he alleged.Meanwhile, IndusInd Bank denied all allegations made by Jain, calling them baseless and motivated. The bank said its board had promptly disclosed accounting discrepancies in derivatives, microfinance and other revenue streams to stock exchanges in March–May 2025, appointed external agencies for independent investigations, reported suspected frauds to the banking regulator, and filed complaints with SFIO and Mumbai EOW.The bank urged the ministry to dismiss Jain’s complaint, arguing that the board acted diligently and transparently, while Jain is attempting to obstruct ongoing probes. Jain did not respond to request for comment. “The bank has made disclosures to the stock exchanges in relation to the identification of discrepancies in the accounting of its derivative portfolio, and the steps taken by the bank in relation to the same, including the findings of the external independent agency of its investigation into the matter and the identification of any lapses and accountability,” the bank spokesperson said in a response to ET’s query. In March, the Hinduja-promoted bank reported suspected frauds that led to a quarterly loss of about Rs 2,000 crore, with auditors flagging accounting discrepancies worth Rs 2,600 crore.ACKNOWLEDGING LOSSESThese included inflated income from microfinance loans, misclassified assets and liabilities, and `1,960 crore of notional profits from internal derivative trades written off. The disclosures caused the steepest plunge in the stock since listing —at 27% — the next trading session.Jain in his letter has urged the government to suspend Mehta and initiate an independent probe, offering to hand over supporting documents to any official nominated by the authorities. 123684690He said he has been targeted “financially and emotionally” and remains fearful but expressed faith in the prime minister’s office to ensure a fair inquiry.Jain also alleged that statutory and forensic auditors had produced reports dictated by the board in exchange for hefty fees, while regulators such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) had refrained from intervening directly. Jain has alleged that despite auditors and consultants being engaged, findings were shaped to protect the board. He questioned why the chairman, risk committee members, and senior executives continued in office even as losses of about `2,000 crore surfaced. He maintained that the resignation of the CEO and other officials months after his own exit did little to bring accountability.Audit findings on the lender prompted an internal investigation, which revealed senior officials had overridden financial controls. Soon after, the then CEO Sumanth Kathpalia stepped down.

Buying a new AC or television this festive season may no longer pinch the pocket as much. The GST Council has announced a sweeping rationalisation of tax slabs, bringing a set of consumer durables under a lower rate.In its September 3, 2025, meeting, the Council scrapped the 12% and 28% slabs, retaining only 5% and 18%. That means products like air conditioners, large-screen TVs, refrigerators and washing machines, which were taxed at the steepest 28%, will now shift to 18%. Items earlier under the 12% slab will also migrate to 5% or 18%, depending on category.A festive-season boosterFor households, this translates into immediate savings. According to a PTI report, an air-conditioner could now cost Rs 1,500 to Rs 2,500 less, depending on the model. Industry executives believe the cut will not just drive volumes but also push buyers toward premium, energy-efficient models.Also Read: GST Council slashes tax slabs to two to spur consumption; announces key measures for middle classBlue Star MD B Thiagarajan had called the proposal a “great move” which should be implemented quickly. Panasonic Life Solutions India Chairman Manish Sharma had estimated a 6-7% reduction in effective prices, calling it “phenomenal.” Godrej Appliances’ business head Kamal Nandi said the cut could lift AC penetration,which is still at just 9-10% in India, and “improve the quality of life for many households.”For television makers too, the shift is timely. Larger sets above 32 inches, which were taxed at 28%, will now attract 18%. “Brands could see 20% year-on-year growth,” PTI had quoted Avneet Singh Marwah, CEO of SPPL, which manufactures TVs under several global labels, as saying. He had said that cutting GST on 32-inch smart TVs to 5% would be a “game changer,” especially against the unorganised sector.Relief after a weak quarterThe decision comes as a breather for appliance makers, who faced a tough June quarter. An early monsoon and unseasonal rains hit cooling product sales, with listed players like Voltas, Blue Star and Havells reporting revenue drops of up to 34% in their air-conditioning businesses.The Larger GST JourneyThe move marks the most significant rationalisation since GST was rolled out in July 2017 with four slabs-5%, 12%, 18% and 28%. With the new two-slab structure, policymakers say the tax will be simpler, more efficient, and better aligned with its original promise of affordability and wider consumption.The timing is not accidental. Weeks ago, Prime Minister Narendra Modi had promised a “Diwali gift” in the form of GST reform during his Independence Day speech. The Council’s decision has now delivered on that pledge, setting the stage for a consumption-led boost just as the festive season begins.

The 56th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman in New Delhi on September 3, has paved the way for a sweeping overhaul of India’s indirect tax structure. The changes, set to roll out from September 22, will directly impact household budgets, with a wide range of daily-use goods becoming cheaper while a few categories remain under tighter taxation.Read Also | GST Council approves highest tax rate of 40% on these goods GST 2.0 What gets cheaper The Council has approved major cuts across multiple sectors, directly benefiting households and businesses: Food and daily essentials Milk products: UHT milk will now be tax-free (down from 5%), while condensed milk, butter, ghee, paneer, and cheese have moved from 12% to 5% or nil in some cases. Staple foods: Malt, starches, pasta, cornflakes, biscuits, and even chocolates and cocoa products will see rates reduced from 12–18% to 5%. Dry fruits and nuts: Almonds, pistachios, hazelnuts, cashews, and dates, earlier taxed at 12%, will now attract just 5%. Sugar and confectionery: Refined sugar, sugar syrups, and confectionery items like toffees and candy have shifted to the 5% bracket. Other packaged foods: Vegetable oils, animal fats, edible spreads, sausages, meat preparations, fish products, and malt extract-based packaged foods have been moved to the 5% slab.Namkeens, bhujia, mixture, chabena and similar edible preparations ready for consumption form (other than roasted gram), pre-packaged and labelled to go from 18% to 5%.Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured to move from 18% to 5%. Agriculture & Fertilisers Fertilisers (down from 12%/18% to 5%). Select agricultural inputs, including seeds and crop nutrients, rationalised from 12% to 5%. Healthcare & Education Life-saving drugs, health-related products, and some medical devices have seen rate cuts (down from 12%/18% to 5% or nil). Educational services and items such as books and learning aids: GST reduced from 5%–12% to nil or 5%. Read Also | GST Council slashes tax slabs to two to spur consumption; announces key measures for middle class Consumer goods Electronics: Entry-level and mass-use items like select appliances will move from 28% to 18%. Footwear and textiles: GST cut from 12% to 5%, reducing costs for mass-market products. Paper sector: Certain grades brought down from 12% to nil.Hair oil, shampoo, Dental floss, toothpaste to go from 18% to 5%Auto sectorGST on small cars reduced to 18% from 28%GST on motorcycles of 350cc and below reduced to 18% from 28%GST on large cars, motorcycles at 40%, no additional cess GST on all car parts to be 18% GST on EVs to be maintained at 5% Other sectors Renewable energy devices: Reduced from 12% to 5%. Construction inputs: Key raw materials reduced from 12% to 5%. Sports goods and toys: Down from 12% to 5%. Leather, wood, and handicrafts: Brought into the 5% bracket. In essence, from groceries and fertilisers to footwear, textiles, and even renewable energy, a broad basket of goods and services is set to become more affordable, providing relief to the common household, small businesses, and the aspirational middle class. GST 2.0 What gets CostlierDespite the broad-based relief, certain goods and services remain firmly under higher taxation:Sin goodsPan masala, gutkha, cigarettes, chewing tobacco, zarda, unmanufactured tobacco, and bidi will continue under existing high GST rates and compensation cess until outstanding cess-linked loans are cleared.Additionally, valuation of these products will now be shifted to Retail Sale Price (RSP) instead of transaction value, tightening compliance..All goods (including aerated waters), containing added sugar or other sweetening matter or flavoured to go from 28% to 40%Read Also | GST Council revises tax slabs for automobiles: Small vehicles get relief while SUVs face higher levyLuxury and premium itemsA new 40% slab for sin and luxury goods remains, ensuring that items like cigarettes, premium liquor, and high-end cars don’t see tax relief.Imported armoured luxury sedans will be exempt only in special cases, such as those brought in by the President’s Secretariat.Energy & fuelsCoal, which previously attracted 5%, will now be taxed at 18%, raising costs for coal-based industries.ServicesRestaurants operating within “specified premises” can no longer declare themselves eligible for the 18% with ITC option, closing a potential loophole.Certain lottery and intermediary services face redefined valuation rules, keeping their tax burden intact or higher.

The GST Council on Wednesday rationalised the indirect tax structure, cutting the current four slabs down to two answering the Indian middle class’ long-pending demand. In a landmark decision that promises to ease household budgets and lift consumer sentiment, the Council scrapped the 12% and 28% rates, retaining only the 5% and 18% slabs.Items earlier taxed at 12% and 28% will now largely migrate to the other two slabs, making a wide range of products cheaper and, policymakers hope, boosting consumption at a time when the economy is looking for fresh momentum.The changes in GST rates of all goods except pan masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi, will be implemented with effect from September 22, 2025.Also Read: Diwali cheer comes early for Indian middle class as Sitharaman announces GST 2.0"Pan Masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi will continue at the existing rates of GST and compensation cess where applicable, till loan and interest payment obligations under the compensation cess account are completely discharged," the press release stated.The reform comes weeks after Prime Minister Narendra Modi, in his Independence Day speech, promised a “Diwali gift” in the form of a GST overhaul. A Group of Ministers had subsequently vetted the Centre’s plan, which the Council endorsed at its September 3-4 meeting.What gets cheaper and costlier?Consumer durables such as air conditioners, televisions, refrigerators and washing machines will now attract 18% tax, down from 28%. Everyday essentials including ghee, nuts, bottled water (20 litres), namkeen, footwear, medicines and medical devices have been moved from the 12% slab to 5%. Common household goods like pencils, bicycles, umbrellas and hairpins will also become cheaper.Also Read: GST 2.0 gets the green light; what gets cheaper and costlier from September 22?List of items that become cheap:Milk products: UHT milk is now exempt (earlier 5%), while condensed milk, butter, ghee, paneer, and cheese move to 5% or nil from 12%.Staples: Malt, starches, pasta, cornflakes, biscuits, chocolates and cocoa products drop from 12–18% to 5%.Dry fruits and nuts: Almonds, cashews, pistachios, hazelnuts and dates fall from 12% to 5%.Sugar and confectionery: Refined sugar, syrups, toffees and candies shift to 5%.Other packaged foods: Vegetable oils, edible spreads, meat and fish products, sausages, and malt-based foods brought under 5%.Namkeens and snacks: Bhujia, mixtures, chabena and similar packaged items cut from 12% to 5%.Drinking water: Mineral, natural and aerated waters without added sugar or flavour now taxed at 5% (down from 18%).Fertilisers and select crop inputs reduced from 12–18% to 5%.Life-saving medicines, some medical devices, and health products reduced from 12–18% to 5% or nil.Books, learning aids and other education items cut to nil or 5%.Electronics: Entry-level appliances move from 28% to 18%.Footwear and textiles: Reduced from 12% to 5%.Paper: Certain grades cut from 12% to nil.Personal care: Hair oil, shampoo, toothpaste and dental floss slashed from 18% to 5%.Renewable energy equipment reduced to 5% (from 12%).Construction materials cut from 12% to 5%.Sports goods, toys, leather, wood and handicrafts shifted to 5%.Hence, from food and healthcare to education, textiles and energy, a wide set of items will now be cheaper, directly benefiting households, small businesses and consumers.What stays costlierSin Goods: Pan masala, gutkha, chewing tobacco, zarda, bidis and cigarettes remain under high GST plus cess until cess-related borrowings are repaid. Valuation will now be on Retail Sale Price (RSP) instead of transaction value to plug leakages.Sugary and flavoured drinks, including aerated waters, will see GST rise from 28% to 40%.Cigarettes, premium liquor and high-end cars remain in the top 40% slab.Imported armoured luxury sedans will only be exempt when brought in for official government use, such as by the President’s Secretariat.Coal, earlier taxed at 5%, will now attract 18%, increasing costs for coal-dependent industries.Restaurants in specified premises can no longer claim the 18% with input tax credit option.Lotteries and certain intermediary services face revised valuation rules, keeping their tax burden intact.Industry upbeat on consumption boostMarket experts and consumer goods companies are optimistic that the changes will spur demand. Market veteran Vikas Khemani told ET Now that lower GST will improve affordability and leave households with more disposable income, particularly benefiting discretionary consumption.FMCG players might be preparing to pass on the benefits. Britannia’s MD Varun Berry had said that shifting food products to 5% would directly boost demand, adding: “Biscuits are the cheapest food available everywhere, and consumption will rise once prices drop.” Wipro Consumer Care MD Vineet Agrawal echoed this view, saying reduced tax outgo will free up money for other categories.Consumption tailwinds despite tariff worriesThe GST rationalisation comes at a time when global trade headwinds and fresh tariff hikes have raised concerns about India’s export prospects. A recent 50% levy on Indian goods rattled markets, but analysts believe domestic demand will remain resilient.“Consumption has been the strongest pillar of India’s growth story,” Khemani said, adding that lower interest rates, a good monsoon, and GST cuts are likely to trigger an upswing in household spending even as external trade frictions play out.Health insurance reliefThe Council has exempted health insurance from GST, reducing the burden from the earlier 18%. The move is expected to improve penetration in a country where less than one-fifth of people are covered by private health policies. While insurers and policyholders have welcomed the relief, some states flagged concerns about revenue loss.What about government revenues?SBI Research estimated that states will remain net gainers despite short-term pressures. GST revenues, including devolution, are pegged at over Rs 14.1 lakh crore this fiscal. While eight opposition-ruled states including Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal warned of potential losses of Rs 1.5–2 lakh crore, SBI projected that states could still receive at least Rs 10 lakh crore in SGST and Rs 4.1 lakh crore via devolution in FY26.The effective weighted average GST rate, which dropped from 14.4% at inception in 2017 to 11.6% in 2019, may now fall further to 9.5%. Evidence from earlier rationalisations suggests revenues dip initially but rebound strongly, with past rounds adding nearly Rs 1 trillion in collections.GST journeyGST was rolled out on July 1, 2017, with four slabs of 5%, 12%, 18% and 28%. A compensation cess on luxury and demerit goods helped create a revenue pool to support states, though this mechanism ended in June 2022.With the latest rationalisation, policymakers hope the simplified two-slab structure will deliver on the original promise of GST which was efficiency, affordability and a bigger consumption push for the Indian economy.

U.S. job openings fell more than expected in July and hiring was moderate, consistent with easing labor market conditions. Job openings, a measure of labor demand, dropped 176,000 to 7.181 million by the last day of July, the Labor Department's Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report, on Wednesday. Economists polled by Reuters had forecast 7.378 million unfilled jobs. Hiring increased 41,000 to 5.308 million in July. Layoffs rose 12,000 to 1.808 million. The labor market has slowed, with economists blaming President Donald Trump's sweeping tariffs. Labor supply has also declined amid the Trump administration's immigration crackdown. A Reuters survey of economists expects the government's closely watched employment report on Friday will likely show nonfarm payrolls increased by 75,000 jobs in August after rising 73,000 in July. Employment gains averaged 35,000 jobs per month over the last three months compared to 123,000 during the same period in 2024, the government reported in August. The unemployment rate was forecast climbing to 4.3% from 4.2% in July. Federal Reserve Chair Jerome Powell last month signaled a possible rate cut at the U.S. central bank's September 16-17 policy meeting, acknowledging the rising labor market risks, but also added that inflation remained a threat. The Fed has kept its benchmark overnight interest rate in the 4.25%-4.50% range since December.