Government states that redirecting surplus rice to ethanol production does not affect food price growth

Today, July 31, is scheduled for the release of financial results for the first quarter of the fiscal year 2027 (Q1FY27). Among these are major players such as Maruti Suzuki India, ITC, ABB India, Bajaj Finserv, Aditya Birla Capital, Indian Oil Corporation, GAIL (India), Shree Cement, Sun Pharmaceutical Industries, Dixon Technologies (India), Narayana Health, Blue Dart Express, Intellect Design Arena, Century Plyboards (India), Kajaria Ceramics, Glenmark Pharmaceuticals, Aadhar Housing Finance, Aether Industries, Jupiter Life Line Hospitals, National Aluminium Company, Kirloskar Brothers, Concord Biotech, and Raymond Lifestyle.

Expectations for ITC Results

ITC is expected to show weak performance in the fourth quarter (Q1FY27). Profit and revenue may suffer due to its cigarette and agricultural businesses. Analysts surveyed by Business Standard predict a double-digit decline in both revenue and net profit, as increased taxes on cigarettes are likely to negatively affect volumes and margins. Nevertheless, the consumer goods (FMCG) business is expected to show steady growth within double-digit figures. Investors will closely monitor management comments regarding demand trends, the impact of cigarette tax hikes, and the prospects of the agricultural segment.

Forecast for Maruti Suzuki

Regarding Maruti Suzuki, mixed dynamics are anticipated in the first quarter (Q1FY27). Experts believe that the country's largest automobile manufacturer will achieve significant revenue growth—up to 35 percent, supported by double-digit sales volume growth. However, profit is likely to remain under pressure due to rising raw material costs. Investors will also pay attention to management commentary concerning pricing policies, demand trends, and margin forecasts.

Market Overview

The GIFT Nifty index signaled a positive start for domestic stocks on Friday, with futures trading 89 points above the 24,447 mark, following the rise in global technology stocks. Asian markets showed a sharp increase, led by South Korea, where the Kospi index rose by more than 13 percent in early trading, driven by the growth of chip manufacturers SK Hynix and Samsung. Japan's Nikkei 225 increased by 5.35 percent, and China's CSI 100 rose by 1.83 percent. Sentiment improved after strong quarterly reports were published by Amazon and Microsoft, boosting Wall Street stock markets. The Dow Jones Industrial Average rose by 1.19 percent, the S&P 500 increased by 1.66 percent, and the Nasdaq Composite climbed by 2.78 percent. Meanwhile, oil prices continued to fall after a proposal initiated by Saudi Arabia to strengthen defense cooperation in the Red Sea, which reduced concerns about potential supply disruptions.

China announced at the beginning of this year that holders of Canadian passports can now visit the country without a visa for up to thirty days. This measure is aimed at strengthening cooperation and developing intercultural exchange between the two states.

Initial results of the policy

Preliminary data indicates that this policy is already contributing to an increase in tourist travel. Nina De Vries from CGTN prepared a report on the situation in Toronto.

On Wednesday, Brazil condemned the United States for using what it described as 'unfounded and false' claims to extend emergency trade powers against the South American country for another year. This measure is aimed at justifying the continued imposition of punitive tariffs on Brazilian exports.

Brazil's Position

The Brazilian government denounced the US decision in its statement, criticizing the repeated use of 'unfounded and false arguments.' These arguments assert that Brazil poses an 'unusual and exceptional threat to the national security, foreign policy, and economy of the United States.'

Application of Trade Measures

Recognizing Brazil as a threat requiring emergency economic measures allowed Washington to impose tariffs of up to 35% on a range of Brazilian industrial goods under the tariff policy launched by US President Donald Trump in 2025.

US Allegations

According to Washington, emergency measures are necessary due to alleged human rights violations, suppression of freedom of speech for American citizens and companies, as well as political persecution of former President Jair Bolsonaro. Bolsonaro was recently found guilty of attempting a coup after losing the election.

Rebuttal of Accusations

Brazil categorically rejected these accusations, stating that all raised claims were thoroughly refuted during numerous bilateral meetings. The statement also emphasized that it is 'absolutely inappropriate to characterize Brazil as a threat to the United States, especially in light of the historical diplomatic ties and friendship uniting both peoples.'