🌏 Global & Domestic News – Impact on India

1. U.S. Fiscal Update: The U.S. deficit narrowed to $1.78T in FY25 (↓$41B YoY), aided by higher China tariffs and lower education spend, offset by rising healthcare and interest costs. 2. U.S.–Russia Diplomacy: Trump and Putin held a “productive” call; a Budapest summit is planned to discuss ending the Ukraine war and reviving trade. 3. U.S.–China Trade: Trump said the U.S. is already “in a trade war,” though Treasury Secretary Bessent hinted at a possible truce extension. 4. U.S. Shutdown: Now in its third week, delaying key data and adding uncertainty—likely to stretch into November. 5. U.S. Housing: The NAHB Index rose to 37, a 6-month high, showing mild recovery on easing mortgage rates. 6. Japan – BoJ: Governor Ueda signaled a data-driven stance before any October hike. 7. France Politics: PM Lecornu survived no-confidence votes, ensuring near-term stability. 8. India–Mercosur Trade: India plans to expand its PTA with Mercosur; full FTA talks paused. India–Brazil trade target: $20B by 2030 (vs. $12B in 2024). 9. India Domestic: Amazon’s Great Indian Festival drew 2.76B visits, 70% from Tier-2/3 cities. Festive travel lifted airfares, hotel rates, and occupancies to record highs. 10. Markets: Asian equities fell with Wall Street amid regional bank stress. Impact on India 🔹Positive Drivers Trade Diversification: Mercosur expansion supports “de-risk from China,” aiding pharma, auto, agri & IT exports. Festive Demand: Strong e-commerce & travel show broad consumption-led growth. Peace Efforts: A Russia–Ukraine truce could ease energy & fertilizer costs, lowering inflation risk. Stocks to Watch: 🔸

– export exposure. 🔸 – festive travel boom. 🔸 – Latin America IT growth.