Weekly Market and News Roundup: Trump's Tariffs, Gensol's Troubles, and Banking Sector Performance (April 13-20, 2025)

Trump's America First Trade Agenda Intensifies

President Trump has doubled down on his America First Trade Policy this week, continuing the aggressive trade stance that began on his first day in office. The administration imposed a 10% tariff on all countries and implemented individualized reciprocal higher tariffs on nations with which the US maintains the largest trade deficits. This move has already prompted more than 75 countries to initiate discussions about new trade deals, causing the administration to pause some tariffs while negotiations continue.

China, however, is facing the full force of Trump's trade hammer after its decision to retaliate. Chinese imports now face tariffs of up to a staggering 245%, composed of a 125% reciprocal tariff, a 20% tariff related to the fentanyl crisis, and additional Section 301 tariffs ranging from 7.5% to 100%. President Trump has also signed proclamations to close existing loopholes and exemptions in steel and aluminum tariffs, restoring a 25% tariff on steel and elevating aluminum tariffs to 25% as well.

In related news, ABC World News Tonight reported that there may be another reversal in Trump's tariff policy, with new targeted tariffs on semiconductors potentially on the horizon2. These frequent policy shifts continue to create volatility and uncertainty in global markets as businesses struggle to adapt to the changing trade landscape.

Gensol Engineering's Regulatory Troubles and Market Fallout

The week has been particularly turbulent for Gensol Engineering (NSE: GENSOL), with India's market regulator SEBI issuing a stern interim order against the company and its promoters, Anmol Singh Jaggi and Puneet Singh Jaggi. The regulatory action follows allegations of misleading investors, diverting funds, and fabricating claims about the company's electric vehicle operations.

SEBI's investigation was prompted by a surprise inspection conducted by the National Stock Exchange on April 9th at Gensol's EV facility in Chakan, Pune. Inspectors found virtually no manufacturing activity at the site, with only two or three laborers present and electricity consumption records indicating negligible operational activity over the past year3. This revelation has cast serious doubt on the company's January 28th announcement claiming to have secured pre-orders for 30,000 EVs at the Bharat Mobility Global Expo 2025.

Further investigation revealed that these supposed "pre-orders" were merely non-binding memorandums of understanding with nine entities, lacking any concrete terms regarding pricing, payment structure, or delivery schedules3. Additionally, SEBI flagged concerns about a January 16th disclosure in which Gensol claimed a strategic partnership with Refex Green Mobility Ltd involving a loan transfer deal worth Rs 315 crore for 2,997 EVs. This deal was quietly cancelled in March, raising serious questions about its authenticity.

The company's stock has experienced a dramatic collapse, plummeting from around ₹796.40 in early January 2025 to just ₹126.02 on April 15, 2025, on the NSE. On April 15 alone, Gensol's shares dropped 2.08% from the previous day's close. The company has also proposed a special resolution for the issuance of securities on a preferential basis to certain members of the promoter group, though the results of the voting on both this resolution and the stock split are still pending.

Multiple clarifications have been sought from Gensol by the stock exchanges in recent weeks, with the company issuing several notices addressing various concerns, including the withdrawal of the proposed asset takeover by Refex Green Mobility Limited that had been announced earlier.

Banking Sector Results Show Resilience

HDFC Bank Delivers Solid Growth in Q4

HDFC Bank has reported robust performance in its Q4 FY25 earnings announcement on April 19, 2025. The bank posted a net profit of ₹17,616 crore, representing a healthy 6.7% year-on-year growth. Net Interest Income (NII) showed even stronger growth, up 10.3% at ₹32,066 crore compared to the same period last year.

Asset quality continues to improve, with the Gross Non-Performing Asset (GNPA) ratio declining to 1.33% from 1.42% in the previous quarter. Similarly, the Net NPA ratio improved to 0.43% from 0.46% quarter-on-quarter. HDFC Bank's deposit base has shown impressive growth, with average deposits increasing by ₹3.44 trillion (15.8%) year-on-year, while end-of-period deposits grew by ₹3.35 trillion (14.1%) over the same period.

Quarter-on-quarter, average deposits increased by ₹0.75 trillion (3.1%), with CASA (Current Account Savings Account) deposits showing particularly strong growth in the most recent quarter, up 8.2% on an end-of-period basis.

ICICI Bank Shows Strong Double-Digit Growth

Not to be outdone, ICICI Bank has reported even more impressive growth figures for Q4. The bank's net profit surged by 18% to reach ₹12,630 crore, significantly outpacing HDFC Bank's profit growth rate. Net Interest Income also showed strong growth of 11%, reaching ₹21,193 crore compared to the previous year.

Upcoming Corporate Earnings to Watch

The coming week promises to be equally eventful with several major companies scheduled to announce their quarterly results. Investors should keep an eye on announcements from market heavyweights including Reliance Industries Ltd, Hindustan Unilever Ltd, HCL Technologies Ltd, Axis Bank Ltd, and Havells India Ltd. These results will provide further insights into the health of key sectors of the Indian economy and could potentially influence market sentiment in the near term.

My Perspective on the Week's Developments

Looking at this week's developments, I'm particularly concerned about the Gensol Engineering situation. What we're seeing here isn't just a company in trouble but potentially a serious case of corporate governance failure that should serve as a warning to investors about conducting thorough due diligence, especially in rapidly growing sectors like electric vehicles where there's tremendous hype.

The banking sector results are encouraging and suggest that despite global uncertainties and domestic challenges, India's financial system remains on solid footing. The contrast between HDFC Bank's steady growth and ICICI Bank's more aggressive performance highlights the different strategies at play among India's top lenders.

As for President Trump's trade policies, the constant shifts and escalating tariffs are creating a highly unpredictable global trade environment. While some argue these moves will ultimately benefit American workers and companies, the immediate impact is increased volatility and cost pressures across global supply chains.

Stay tuned for next week's update as we continue to track these stories and bring you the latest developments affecting markets and your investment decisions.