India is once again in the spotlight of global trade talks. As tensions rise, Prime Minister Narendra Modi has firmly pushed back against mounting pressure from U.S. President Donald Trump over India’s ongoing oil imports from Russia.

Over the weekend, Modi highlighted the importance of protecting India’s economic interests amid global uncertainty. His comments followed the Trump administration’s move to slap a 25% tariff on Indian exports to the U.S. The White House has also warned of more steps if India continues to buy Russian oil.

Modi’s strong stand comes at a time of rising trade and energy tensions worldwide, with growing tariffs and shifting alliances. While many countries are cutting ties with Russian oil, India has stayed the course, putting national interest and energy security first. 

Source: Economic Times

India’s Growing Energy Needs

India is the world’s third-largest oil importer, and its energy demand continues to grow rapidly. With over 1.4 billion people and a fast-expanding economy, India needs a stable and affordable supply of oil. After the Russia-Ukraine war began in 2022, many Western countries placed heavy sanctions on Russian oil. However, India chose to continue buying Russian crude, often at discounted prices, helping it control domestic inflation and manage its import bills.

Trump’s Renewed Pressure on India

Donald Trump, known for his “America First” approach, has stepped up his criticism of India’s oil imports from Russia. He accused India of weakening global efforts to isolate Russia and hinted at possible trade penalties, including a review of tariffs on Indian products.

Trump also took aim at India’s participation in the BRICS group, claiming that countries aligned with Russia are pulling their economies down together. He argued that any nation supporting Russia’s economy during this time is going against global security interests.

Urging India to shift its energy partnerships, Trump suggested that countries like India should buy oil from democratic allies instead. This was widely seen as a push to reduce India’s dependence on Russian oil and rely more on supplies from the U.S. and the Middle East.

Source: Economic Times

Indian Government’s Defiant Stand

Prime Minister Modi has made it clear that India will make decisions based on national interest. Responding to Trump’s remarks, Modi emphasized that India cannot compromise on energy security, especially when global oil prices remain volatile.

At a recent event in New Delhi, Modi emphasized that India would prioritize sourcing oil based on the most competitive pricing, keeping in mind the country’s status as a developing nation and the need to ensure affordable energy for its people.

Modi’s statement is in line with India’s long-standing foreign policy approach—non-alignment and strategic autonomy. India does not want to be seen as choosing sides in global conflicts, especially when it affects domestic welfare.

Source: Bloomberg

Government Pushes for Economic Self-Reliance

In parallel with defending oil purchases from Russia, Modi has also renewed his call for Indians to support local products and reduce dependence on imports.

Modi urged Indian citizens to embrace the “Vocal for Local” campaign more aggressively. The move is aimed at preparing the Indian economy to withstand any trade restrictions or tariffs that may arise from Western nations.

This dual approach, defending energy imports while promoting local production, is part of a broader push towards “Atmanirbhar Bharat” or “Self-Reliant India.” It highlights the government’s long-term vision of reducing economic vulnerability in a rapidly changing world order.

Source: Bloomberg

Why Russia Matters to India

Here are some key reasons why India continues to purchase oil from Russia:

1. Discounted Prices: Russia offers crude oil at prices lower than global benchmarks, helping India manage inflation.
   
2. Long-Term Contracts: India and Russia have agreements in place that ensure stable supplies.
   
3. Strategic Diversification: Buying oil from multiple sources reduces India’s over-reliance on any one country.
   
4. Geopolitical Balance: Maintaining relations with Russia keeps India’s foreign policy flexible and multi-polar.
   
5. Refinery Compatibility: Many Indian refineries are equipped to handle Russian grades of crude.
   

Global Implications

India’s defiance is not just a bilateral issue between India and the U.S. It could shape future global alliances. As India deepens its trade with Russia, China, and the Middle East, it could form new economic groups outside the influence of the West.

Meanwhile, the United States and European countries may respond with stricter tariffs or restrictions. Trump’s past record shows that he is willing to impose heavy duties on imports from countries that don’t align with U.S. interests.

Domestic Reactions in India

Within India, Modi’s stance has found wide support. Many economists and energy experts agree that India cannot afford to disrupt its oil imports, especially when prices remain unpredictable.

Some opposition parties have warned about potential diplomatic fallouts but have largely backed the government’s stand on energy security.

Indian industries, especially in the manufacturing and transport sectors, also support the move, as affordable oil directly affects production costs and inflation.

Challenges Ahead for India

While Modi’s defiance showcases strong leadership, it does not come without risks. India may face:

• Tariff Barriers: The U.S. may impose higher duties on Indian goods like textiles, pharmaceuticals, and steel.
  
• Investment Slowdown: U.S. and EU investors may take a cautious approach towards India.
  
• Diplomatic Strain: India may find itself isolated in global forums where the West dominates.
  

To manage these risks, India needs to build stronger trade partnerships with Southeast Asia, Africa, and Latin America. At the same time, it must boost domestic industries to make up for any external shocks.

Conclusion

Prime Minister Modi’s response to Donald Trump’s pressure over Russian oil imports reflects a larger message, India will prioritize its national interests without bowing to external demands. Whether it’s about oil, trade, or diplomacy, India is asserting itself as a sovereign power in a multipolar world.

While tensions with the U.S. may increase in the short term, Modi’s push for local manufacturing and economic self-reliance could make India more resilient in the long run. The path won’t be easy, but it marks a bold shift in how India engages with global powers.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Shares of PNB Housing Finance cracked more than 15% today, following the resignation of its MD and CEO Girish Kousgi before the completion of his term.

PNB Housing Finance Share Price

About PNB Housing Finance

PNB Housing Finance offers retail customers housing and non-housing loans, including individual home loans, loans against property, and non-resident property loans, among other services.

As of FY25, 72% of its loan book comes from individual housing loans and the remaining from the non-housing loan segment.

PNB Housing Finance (FY25 Loan Book Rs 75,756 Cr)

Source: Investor Presentation

It’s promoted by the Punjab National Bank (PNB), which holds 28.1% stake as of June 2025.

PNB Housing Shareholding Breakup – June 2025

Source: BSE

PNB Housing CEO’s Sudden Resignation

In a press release, the company said Kousgi has resigned and will step down from his role effective October 28, 2025. He joined the organisation in October 2022 for four years.

Source: Press Release

The kneejerk reaction in its stock price after the resignation comes as Kousgi has played a key role in transforming PNB Housing, scaling new businesses and improving asset quality.

PNB Housing Finance emerged as the third-largest housing finance company in India during Girish Kousgi’s tenure.

Since 2022 when he took over, the company’s topline has grown while bottomline has more than doubled.

PNB Housing Financial Snapshot

Source: Company

Even shares of PNB Housing Finance have surged over 200% since he joined. 

Outlook

Following the CEO and MD’s exit, PNB Housing Finance assured investors today and said the strategic priorities, business focus and growth trajectory will remain ‘firmly intact’, building on the foundation by Kousgi. 

Source: Press Release

Last week when the company declared its Q1 results, Kousgi had said that PNB Housing Finance is confident to achieve a higher NIM guidance of 3.7% as against the previously stated range of 3.6–3.65%, with affordable and emerging segments driving the margins.

Affordable Segment Loan Assets on the Rise

Source: Investor Presentation

Emerging Market Segment Loan Assets on the Rise

Source: Investor Presentation

As part of its future plans, the company has expanded with 40 new branches in FY25 and is focusing on expanding in South, North, and West regions.

Source: Investor Presentation

All being said, the housing finance industry is one of the most competitive segments of the Indian economy, with the banking sector having a significant presence. Banks have an edge over housing finance companies due to access to relatively low-cost funds raised through deposits. 

Nevertheless, with the rise of both affordable and premium housing, housing finance business is on an upward trajectory, due to growing economy, increased urbanization, government incentives, acceptability of credit in society and rise in nuclear families.

Conclusion

The housing finance sector is riding a strong growth wave — thanks to India’s expanding economy, rising urbanisation, government support, growing credit awareness, and the shift towards nuclear families.

Naturally, this has pulled in a crowd. With more players entering the space, competition has intensified, making it harder to protect market share and margins.

Banks still hold a key advantage — they can raise cheaper funds through deposits. So, whenever interest rates dip, banks can act faster. Housing finance companies, on the other hand, have no choice but to follow — or risk losing ground.

That said, industry tailwinds remain strong. And in this race, it’s the market leaders who are best positioned to win first — the others will follow, if they can keep up.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

After a cautious close yesterday, Indian share markets opened flat today, influenced by global cues and the growing focus on the India–US trade deal. 

In the midst of this market sentiment, Tata Consultancy Services (TCS) made headlines with a major organisational update. 

TCS, India’s largest IT services provider, announced plans to reduce its global workforce by around 2%, affecting nearly 12,000 employees. 

How did this announcement impact the stock, and what could it mean for the company going forward? Let’s take a closer look.

The 2% Workforce Cut

As of June 2025, Tata Consultancy Services (TCS) had a global workforce of 613,069 employees. The company has announced a planned workforce reduction of approximately 2%, which translates to about 12,000 roles. 

The reduction primarily applies to employees at the mid and senior levels, typically those with 3 to 10 years of experience who have been on the bench, meaning they have not been assigned to billable projects, for extended periods ranging from 3 to 18 months.

(Source: Annual Report 2024-25)

Unlike earlier layoff patterns in the IT sector that often began with entry-level or support roles, this move is focused on experienced employees. 

Alongside the workforce changes, TCS has introduced a revised bench policy. Employees will now be expected to maintain at least 225 billable days per year, with the permissible non-project period limited to 35 days annually.

TCS has stated that the workforce reduction will be implemented in a phased manner throughout FY26 to avoid disruption to client operations. The company has also said that it will provide support to affected employees through notice period payouts, severance packages, extended insurance coverage, and access to professional counselling and outplacement assistance.

Reasons For The Layoff

1. Evolving Skill Requirements and Role Realignment

TCS has cited a mismatch between existing skills and deployment requirements as one of the key reasons for the workforce reduction. According to CEO K. Krithivasan, the roles affected are largely in the 3–10 years’ experience range and have been unbilled for extended periods. The company clarified that AI-led productivity gains are not the direct cause, but evolving business needs are reshaping role suitability and utilisation.

2. Internal Cost Optimisation Measures

The workforce reduction follows recent cost control initiatives. In April, TCS deferred wage hikes, and more recently, it revised its bench policy, capping non-billable days at 35 annually. These steps are aimed at increasing utilisation and aligning internal resource management with delivery needs. 

3. Delayed Lateral Hiring and Hiring Strategy Reassessment

TCS has also delayed the onboarding of nearly 600 experienced lateral hires. Some candidates who had resigned from previous jobs have reported uncertainty about their joining dates. These delays coincide with broader changes in the company’s workforce planning and cost structures.

4. Macroeconomic and Client-Side Spending Pressures

The decision comes amid a weak global spending environment and subdued discretionary IT budgets. Many client organisations are operating under cost pressures driven by inflation, high interest rates, and cautious investment behaviour. These conditions have impacted project pipelines and deal sizes across the sector.

5. Sector-Wide Shift in Delivery Models

Indian IT services firms, including TCS, are adjusting to changes in how technology services are delivered. The industry is gradually moving away from headcount-led growth and cost arbitrage toward models based on automation, digital delivery, and specialised skills. This change is influencing organisational structures and staffing patterns across the sector.

Financial Aspects of the Decision

The workforce reduction at TCS comes in the context of continued macroeconomic uncertainty, delayed ramp-ups in client projects, and a slowdown in discretionary IT spending. While the company remains profitable, it has cited a need to rebalance employee costs and align skill sets more closely with current business needs.

In recent months, TCS has implemented a series of internal measures to manage costs. These include a deferral of wage hikes announced in April 2025 and a revised bench policy that caps unbilled days at 35 per year. These steps, along with the layoffs, form part of a broader resource optimisation strategy.

TCS has indicated that the workforce changes are intended to support margin sustainability. The employee cost-to-revenue ratio stood at approximately 47.8% in FY25, a modest improvement from the previous year. This metric reflects the ongoing efforts to maintain operational efficiency through resource realignment.

(Source: Annual Report 2024-25)

The decision to reduce headcount is not tied to any immediate financial distress, but rather is part of a longer-term framework aimed at adapting to changing market dynamics. Alongside technological investments and internal restructuring, the move is expected to support the company’s goal of maintaining financial stability in a constrained demand environment.

Implications Of The Restructuring:

1. Strategic Vision and Organisational Alignment

TCS has stated that the current workforce changes are part of a broader effort to evolve into a “future-ready organisation.” This includes initiatives such as investments in new technologies, market expansion, and internal restructuring. The company is also focusing on deploying AI in both client-facing and internal operations. The workforce reduction is positioned as a step towards aligning talent with evolving business needs and redeploying resources toward growth areas.

2. Operational Agility and Cost Management

The company has described the restructuring as part of efforts to enhance operational efficiency and streamline delivery models. The changes are also aimed at redirecting capital toward technology investments. This follows two earlier steps: the deferral of employee wage hikes in April 2025 and the implementation of revised bench policies in June. TCS is also managing its employee mix to maintain profitability in a period of delayed client project ramp-ups and constrained discretionary spending.

(Source: ET)

3. Response from Employee Unions

Several employee unions, including NITES, the Karnataka State IT/ITeS Employees Union, and FITE, have publicly opposed the layoffs. These groups have described the workforce changes as unjustified and urged affected employees not to resign under pressure. Formal requests have also been made to government authorities to review the termination process. The unions have advised employees to maintain written records and seek legal or administrative recourse if necessary.

(Source: ET)

4. Stock Market Reaction

Following the announcement of the workforce restructuring, TCS shares declined by up to 1.80%, touching ₹3,079.20 on the BSE. The stock closed at ₹3,081.20 on the BSE and ₹3,081.60 on the NSE, marking a fall of approximately 1.7% from the previous session on 28th July 2025.

(Source: Money Control)

Conclusion

TCS’s restructuring comes at a time when the Indian IT sector is witnessing a slowdown in net hiring and a shift toward automation-driven delivery models. In Q1 FY26, the top six IT firms added just 3,847 employees, a 72% decline from the previous quarter. Similar changes have also been seen globally at companies like Microsoft, Google, and Meta. 

As an investor or observer, you may consider tracking company updates, earnings reports, and broader industry developments to stay informed and evaluate any future decisions regarding the stock.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.