China's DUV bet slams ASML; Tata profit up 21%, Air India loss doubles

A Shanghai state-backed firm began mass‑producing homegrown deep‑ultraviolet lithography tools, aiming for five units this year and twenty next. The news sparked a synchronized sell‑off, pulling ASML, Applied Materials, Lam Research and KLA down 5‑7% as investors fear China's advance could undercut U.S. export restrictions.

Tata Sons posted FY26 profit after tax of ₹31,961 cr, up 21.8% YoY, as group revenue rose 9.1% to ₹42,367 cr. The surge was driven by fast‑growing Tata Electronics, while the airline arm, Air India, saw losses more than double to ₹22,238 cr, underscoring a stark contrast within the conglomerate.

Around 45% of India's shipments to the United States escape the fresh 10% Section 301 duty, securing a lower‑tier tariff advantage. The commerce ministry says the promised textile‑specific mechanism is still under negotiation, leaving the remaining 55% of exports liable for the levy.

India’s engineering exports rose 21% YoY in June, reaching $11.48 bn, with China’s demand surging 74% to $361 m. The sector, which makes up over a quarter of merchandise trade, offset higher freight costs from Red Sea disruptions, highlighting its growing role in cushioning the country’s export outlook.

The Food Safety and Standards Authority of India gave PepsiCo, Red Bull and Monster a 90‑day deadline to remove the term “energy drink” from high‑caffeine beverages. The move targets misleading marketing and aims to curb health concerns around these drinks. Major brands must relabel or face compliance action.

India’s agriculture ministry has approved the use of 82% nitrogen anhydrous ammonia as a fertilizer, a step that would make the country only the fourth worldwide to apply ammonia directly in fields. The move targets the country's heavy reliance on imported urea and could tap surplus ammonia from existing plants, reshaping fertilizer supply chains.

The GST Fitment Committee will push a proposal letting companies move unused input tax credits to other group entities, easing cash strain. If the GST Council signs off, firms could boost working capital without hurting tax revenues, while cutting disputes and compliance costs.

The IEA’s Electricity 2026 report shows unmet demand in northern states hit 2% of monthly load in April, pushing total shortages to over twice the level of the same period last year. With a 7% rise in overall demand this year and heat‑driven peaks, the grid faces tighter margins and higher reliance on coal and gas.

The bank’s board closed its internal probe into the MSRDC deposit arrangement, labeling the conduct as business overreach. It sent warning letters and imposed a Rs 1 lakh penalty on the MD & CEO, CFO and the retail‑assets head, and flagged the matter to the RBI. The move underscores heightened governance scrutiny in India’s private‑bank sector.

Crude prices slipped more than 9% after the US and Iran halted strikes, pulling Brent below $90 a barrel and trimming India’s near‑term import bill. The dip eases inflation pressure, but supply worries remain as the Strait of Hormuz stays contested and Red Sea disruptions threaten Saudi crude flows.