The President of Uzbekistan, Shavkat Mirziyoyev, during a meeting on July 21, criticized the increase in expenses at the country's strategic enterprises. He noted that the previous reporting method, based on the percentage decrease in total costs, did not always reflect the actual situation, and emphasized the need to analyze the cost of individual product units.
The analysis presented showed significant changes in production costs. For example, at the Navoi Mining and Metallurgical Combine, the cost of one ounce of gold increased by 8.2%. Furthermore, the total costs of this enterprise rose by 6.2 trillion soums, which is 22% compared to the previous year. At the Uzbek Metallurgical Combine, a 5.4% increase in the cost of producing steel balls was noted, while in 'Uzkimysanoat', the cost of urea increased by 11.1%, and ammonium nitrate by 8.3%.
Information was also presented at the meeting that Franklin Templeton completed an analysis of the activities of thirteen major state enterprises preparing for an IPO. The consultants from this firm concluded that Uzbekistan Airways is losing approximately $120 million in revenue. The reasons for this loss include suboptimal route network, large gaps between flights, frequent delays, and a lack of competition in catering and technical maintenance sectors.
Franklin Templeton also assessed the potential for growth in the market value of several state companies. According to their calculations, the market value of 'Regional Electric Networks' could be doubled, the value of Uzbekistan Airways could increase by 40%, and 'Uzbektelecom' by 50%. Representatives of Franklin Templeton, managing the National Investment Fund of Uzbekistan (UzNIF), which holds stakes in Uzbekistan Airways, 'Uzbektelecom', RES, and ten other state companies, previously conducted a diagnosis of the airline and developed a transformation program including 115 measures. Implementing this program could allow the company to increase operating profit by $120 million within a year, which in turn could raise the airline's market value from $1.6 billion to $2.3 billion.
It should be noted that according to the results for 2025, the Navoi Mining and Metallurgical Combine, the largest enterprise in Uzbekistan, increased gold production to 98.2 tons, which is 2.1% more, but the pace of this growth has begun to slow down.
Stock market indices Sensex and Nifty opened in the red on Wednesday. The decline was triggered by renewed threats of tariffs on the pharmaceutical sector from US President Trump, as well as a sharp rise in oil prices amid escalating geopolitical tensions in the West Asia region.
The BSE Sensex index began the trading session with a drop of nearly 388 points, representing 0.50 percent from a level of 77,081. The index reached a low of 76,722.21, losing 748 points or 0.96 percent. Similarly, the Nifty 50 index fell by 90 points or 0.37 percent, opening at 24,097. This index, comprising 50 stocks, showed a minimum of 23,973.70, dropping by 214 points or 0.88 percent.
By 10:50 AM, both key indices were trading close to their daily lows: Sensex showed 76,832.77, indicating a decrease of 637 points or 0.82 percent, while Nifty was at 24,009.30, down 178 points or 0.74 percent.
At the sectoral level, the Nifty Pharma and Realty indices declined by more than 1.5 percent each. Declines were also observed in the Nifty PSU Bank, Financial Services, IT, Metal, and Oil & Gas indices. The only exception was Nifty Auto, which demonstrated a growth of almost 1 percent during the day.
In the broader market context, Nifty Midcap 100 and Nifty Smallcap 100 traded down by 0.65 percent and 1 percent, respectively. Meanwhile, the India VIX index rose to 12.94, increasing by more than 2.5 percent, signaling increased caution and volatility in the near term.
The Nifty Pharma and healthcare indices became the main laggards among the components of Nifty, leading to a nearly one percent drop in the main index. The fall occurred after US President Donald Trump announced a proposal to introduce a phased tariff regime on imported generic drugs aimed at stimulating domestic pharmaceutical production within the United States. The Nifty Pharma index dropped by 1.7 percent, reaching 25,639.70 during intraday trading.
Tushar Manudhane, Senior Vice President of Healthcare Institutional Research at Motilal Oswal Financial Services, noted that '90 percent of prescription generics are imported into the US, which effectively increases the tariff for everyone supplying the US market, and this is not specific to India.'
The rise in oil prices also contributed to the downturn in the domestic stock market. On Wednesday, prices rose by more than 1.57 percent, pushing Brent crude futures above $92.58 per barrel, while WTI crude futures increased by 1.34 percent, trading at $85.68 per barrel.
OMC stocks, representing state-owned oil companies including Bharat Petroleum Corporation, fell by 1.52 percent to 314 rupees per share, Hindustan Petroleum Corporation decreased by 2.13 percent to 398 rupees per share, and Indian Oil Corporation lost 0.77 percent, settling at 142 rupees on Wednesday after Brent crude prices jumped to $92 per barrel.
On Wednesday, the rupee opened weaker against the US dollar. The national currency weakened by 10 paise against the US dollar, reaching 96.34 compared to Tuesday's close at 94.24 per dollar.
Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, stated that 'traders continue to monitor the participation of the Reserve Bank of India through public sector banks to smooth out volatility. The central bank seems to allow gradual adjustment, preventing erratic movements.'
V. K. Vijayakumar, Chief Investment Strategist at Geojit Investment, believes that the ongoing conflict between the US and Iran and the rise in Brent crude prices will put pressure on markets, despite positive news in other areas. He added that 'market declines create opportunities to buy fundamentally sound stocks. Broader market superiority may continue in the short term.'
Rajesh Palvia, Head of Research at Axis Direct, noted that technically the market continues to trade cautiously below the 24,300 mark. He added: 'Sustainable growth above this level could revive momentum towards 24,500–24,550, while immediate support is at 24,100. A decisive break below this level could trigger further weakness towards 23,950. Any easing in crude oil prices would significantly improve market sentiment and serve as a trigger for a stronger recovery.'
