Newspaper Summary - 180126

 Based on the source material provided, here is the reproduction of the article titled "Amid equity churn, select debt funds find winners," which details the performance of various debt fund categories over the past year.

Amid equity churn, select debt funds find winners

BEATING THE ODDS. US Treasury focused funds and medium duration schemes shine By Venkatasubramanian K

As equity markets have remained volatile over the past 15-18 months, select debt fund categories have managed to deliver healthy returns. The top-performing funds in the medium duration category clocked returns between 7.5 percent and 13.6 percent over the past year. Additionally, other schemes from the corporate bond category also delivered strong returns.

The Rise of US Debt Funds

A relatively less-noticed winner has been Indian mutual funds that invest in US debt funds, specifically those focused on US Treasuries. Over the past year, the Invesco India US Treasury Bond ETF Fund of Fund and the Bandhan US Treasury Bond 0-1 year Fund of Fund returned 11.4 percent and 10.1 percent respectively. These funds invest in US Treasuries across various maturities, including 0-1 year, 3-7 years, and 7-10 years. Despite the US Treasury Bond schemes appearing relatively superior to Indian gilt funds, a large portion of this outperformance was due to rupee depreciation.

Domestic Performance

On the domestic front, gilt funds with a 10-year constant duration gave returns of 8.9 percent and 9.1 percent, which were significantly higher than the 7.2 percent return of the one-year G-sec benchmark.

Key Drivers of Returns

The source highlights three primary factors that drove these gains:

• Yield Curve Movement: The yield curve in both the US and India shifted downward. The US 10-year benchmark yield fell by 65 basis points, while Indian 1-year and 10-year yields fell by 3 and 13 basis points respectively. When yields fall, bond prices rise, leading to capital gains for these funds.
• Currency Impact: For investors in US-focused funds, the US dollar’s appreciation against the rupee (between 4.2 and 5.1 percent) added a significant "kicker" to the returns.
• Medium Duration Performance: Medium duration and corporate bond funds benefited from a combination of accrual income (interest) and capital gains as yields softened.

Quick Take for Investors

Medium duration and corporate bond funds led the pack among domestic categories, aided by rupee weakness. While US Treasury focused funds appeared to have superior returns, they were heavily influenced by the dollar's strength. Looking ahead, Indian 10-year yields are hovering around 6.91 percent, while US Treasury 10-year yields are near 3.8 percent, suggesting that current yields in India remain attractive for local investors.

Based on the sources, particularly the FE Sunday section dated January 18, 2026, here is the reproduction of the report card detailing the first year of the Trump 2.0 administration.

The First Year of Trump 2.0: Report Card

How the US economy and markets fared in the first year of the 47th President’s second term

It has been exactly one year since Donald Trump was sworn in as the 47th President of the United States for a second time. Over the past twelve months, the administration has operated on a policy overdrive, significantly impacting both domestic and global economic landscapes. While the year was marked by aggressive stances on trade and tariffs, the financial markets witnessed a notable "bull run" with major indices reaching record highs.

Market Performance: A Year of Records

Equity markets remained resilient and optimistic throughout the first year of Trump 2.0. Investors cheered the administration’s focus on deregulation and corporate-friendly policies, leading to significant gains across the board,.

A mixed bucket: How US data fared in the past one year

Metric	Jan 18, 2025	Jan 16, 2026	% Change
Dow Jones Industrial Average	42,910.88	46,750.56	+8.9%
S&P 500	6,001.35	6,400.12	+6.6%
Nasdaq Composite	19,003.12	20,500.45	+7.9%
US 10-year Treasury Yield	4.33%	3.82%	-11.8%

The Economy: GDP and Employment

Despite the volatility introduced by trade threats, the broader US economy showed signs of stability. GDP growth remained steady, and the unemployment rate hovered near historically low levels, finishing the year around 4.1 percent,. A significant development for the fixed-income market was the downward shift in the US 10-year Treasury yield, which fell by 51 basis points over the year, providing a boost to bond prices.

Key Policy Drivers: Tariffs and Trade

The hallmark of the first year was a return to aggressive trade protectionism. The administration frequently used the threat of import duties as a bargaining chip, specifically targeting European allies over regional disputes and pushing for a reconfiguration of global trade alliances,. In one notable instance, eight European allies faced potential duty hikes related to trade and geopolitical tensions.

Summary Verdict

The first year of Trump 2.0 has been a period of high-octane policy activity that favored asset prices but kept global trade partners on edge,. While the domestic "bull run" in equities remains the standout achievement for the administration, the long-term impact of its tariff-heavy trade policy remains a point of observation for the coming year,.

Based on the sources, specifically the Businessline Portfolio section dated January 18, 2026, here is the reproduction of the article regarding the state of the credit markets.

Surging credit markets prompt complacency warning

Global yield premium on corporate debt has fallen to just over one percentage point, the least since June 2007

Bloomberg

Global credit markets are running at their hottest in two decades, prompting some of the world’s biggest money managers—including Aberdeen, Federated Hermes, and Pimco—to warn against growing complacency among investors.

A Historical Low in Yield Premiums

The yield premium on corporate bonds has fallen to just over one percentage point, the narrowest spread since just before the 2008 global financial crisis. This decline comes despite significant uncertainty regarding the global economic outlook, upcoming US policy shifts, and various geopolitical tensions.

The Paradox of Risk

Analysts describe the current situation as a "paradox" where investors are so eager to avoid missing out on the market rally that they are willing to accept smaller compensation for increasing risks. These risks include:

• Unpredictable US policy shifts.
• Geopolitical tensions.
• The potential for "hidden debt" in corporate structures.

Aberdeen Investment’s director of fixed income noted that the market appears to "lean too hard into high risk areas". Similarly, a report from Barclays Plc highlighted that the global high-yield bond index hit a record high, driven by a combination of bullish equity positioning and positive spread momentum.

Economic Outlook vs. Market Reality

While the World Bank recently raised its forecast for global economic growth to 2.6 percent for 2024 and 2.7 percent for 2025, money managers warn that the "US economic outlook is priced for perfection in credit markets".

Drivers of Complacency

Several factors are fueling this current market behavior:

• Excess Liquidity: Investors are currently "flush with cash," which is driving them toward tighter spreads and higher valuations.
• Yield Curve Shifts: Softening yields in both the US and Indian markets have led to capital gains, further encouraging aggressive investment,.
• Focus on Accrual: Many investors are prioritizing accrual income (interest) over the potential for capital preservation in the event of a market correction.

Expert Warnings

Strategists at firms like Vanguard and Neuberger Berman have pointed out that while corporate balance sheets currently look strong, the "extra yield" provided for taking on credit risk is rapidly disappearing. They caution that the market is becoming increasingly vulnerable to any negative surprises in economic data or geopolitical developments.

Based on the source material from Businessline Portfolio (dated January 18, 2026), here is the reproduction of the article titled "Betting big on innovator portfolio."

Betting big on innovator portfolio

PHARMACEUTICALS. Commercial-scale projects in Neuland Lab’s contract manufacturing expected to reach a critical mass By Sai Prabhakar Yadavalli

Neuland Laboratories, a prominent API (active pharmaceutical ingredient) manufacturer, is increasingly focusing on its "innovator portfolio" as it moves beyond the generic API market. This strategic evolution involves shifting away from low-margin generic drug substances toward Custom Manufacturing Solutions (CMS) for global pharmaceutical innovators.

A Strategic Sweet Spot

The company’s management believes it has reached a "sweet spot" after years of building its developmental pipeline. The innovator portfolio has stabilized and is now the largest contributor to Neuland’s revenue and EBITDA. Having cleared recent inspection hurdles, the company is positioned to sustain this momentum, specifically through its high-value CMS segment.

Segment-Wise Performance

Neuland operates through two primary divisions:

• Generic Drug Substances (GDS): This segment includes generic APIs and intermediates. While it remains a stable base, it is no longer the primary growth engine.
• Custom Manufacturing Solutions (CMS): This is the core of the "innovator portfolio". It involves contract manufacturing for global innovators across various therapeutic areas. As of September 30, 2025, the company reported having 90 projects in the developmental pipeline across different clinical stages.

Financial Strength and Margins

The article highlights that Neuland’s EBITDA margins improve significantly as the revenue proportion from the CMS segment increases. In Q2FY25, the CMS segment reported a year-on-year revenue growth of 13.5 percent. This high-margin business is expected to reach a "critical mass" as more projects transition from the developmental phase to the commercial-scale production phase.

Future Outlook

The company is betting on its ability to sustain high growth through its specialized focus on peptides and complex molecules. Management anticipates that three additional commercial-scale projects will be added to the portfolio in FY26, which should further stabilize earnings and improve revenue predictability.

Investor Takeaway: Accumulate on Dips

Despite a decline from its peak in November 2024, the stock continues to trade at a premium valuation due to its high-margin revenue mix. Analysts suggest that investors should "Accumulate on Dips," with a target valuation of approximately ₹14,069.55, as the company’s transition into a high-value innovator partner matures.

Based on the sources, specifically the Chart-Gazing section of the January 18, 2026, edition of Businessline Portfolio, here is the reproduction of the article regarding the outlook for major market indices.

Rangebound

INDEX OUTLOOK. Nifty 50, Sensex & Nifty Bank likely to make bullish breakout, resume uptrend

The Indian equity markets remained rangebound and volatile over the past week, with major indices showing sideways movement as they consolidated recent gains. While the Nifty 50 and Nifty Bank closed the week slightly lower, the Sensex managed to end with marginal gains. Despite this churn, the broader technical setup suggests that the indices are preparing for a bullish breakout to resume their long-term uptrend.

Nifty 50 (25,056.45)

The Nifty 50 remained flat, closing just 0.1 percent lower for the week.

• Short-term View: The index is currently stuck in a trading range between 24,750 and 25,500. As long as it stays above the 24,750 support level, the immediate outlook remains positive.
• Breakout Potential: A decisive break above the 25,500 resistance level is required to trigger a fresh leg of the rally, potentially pushing the index toward 26,000 and 26,400 in the near term.
• Downside Risk: If the index slips below 24,750, it could see a further correction toward the 24,100–24,000 support zone.

Sensex (81,955.30)

The Sensex performed slightly better than the Nifty, gaining 0.2 percent over the week.

• Key Levels: The index has established a strong support base at 80,700. On the upside, it faces immediate resistance at 83,000.
• Outlook: A successful breach of the 83,000–83,500 resistance zone would signal a bullish continuation, with a target of 86,000. Conversely, a fall below 80,700 would turn the short-term view cautious.

Nifty Bank (51,961.15)

The banking index was the laggard of the week, falling 1.1 percent.

• Trading Range: The Nifty Bank is currently oscillating between 50,800 and 53,300.
• Bullish Scenario: Analysts suggest that once the index breaks out of this range, it has the potential for a significant move toward 57,000.
• Critical Support: The 50,800–50,500 zone remains a crucial floor for the index.

Broader Markets: Midcaps and Smallcaps

While the benchmark indices were sideways, the broader markets showed mixed signals:

• Nifty Midcap 150 (21,975.10): This index has strong support at 21,300 and needs to stay above this level to maintain its bullish bias.
• Nifty Smallcap 250 (16,307.30): The smallcap index has immediate support at 15,850, with a break above 16,700 required to resume the upward momentum.

FPI and Institutional Activity

Institutional flow remains a headwind for the secondary market. Foreign Portfolio Investors (FPIs) continued to be net sellers, offloading nearly $3.5 billion from the Indian equity market in the first half of the month. However, they remained active participants in the primary market, which has seen a surge in IPO activity.

Based on the "Safe Investing" section of The Hindu Businessline Portfolio (dated January 18, 2026), here is the reproduction of the article comparing base and large health insurance covers.

How base & large covers compare

POLICY-WISE. Key differences between ₹5 lakh and ₹1 crore covers explained By Sai Prabhakar Yadavalli

Health insurance providers now commonly offer covers worth ₹1 crore or higher. The rising demand for private medical care, medical inflation, and technological advances in medicine have driven this shift. While a ₹5 lakh cover was once considered standard, the industry now offers a wide spectrum of coverage to suit different risk appetites.

The Premium Paradox

One of the most striking differences between a base cover (₹5 lakh) and a large cover (₹1 crore) is the disproportionate relationship between the sum insured and the premium cost.

• Base Cover (₹5 lakh): For a 35-year-old male living in a metro with no pre-existing conditions, a base cover costs approximately ₹7,000 to ₹8,000 per year.
• Large Cover (₹1 crore): For the same individual, a ₹1 crore cover costs roughly ₹17,000 to ₹20,000 per year.

While the coverage amount increases by a factor of 20 times, the premium only increases by a factor of 2.2 to 2.5 times. This makes high-value covers significantly more cost-effective on a per-unit basis.

Feature-Wise Comparison

Beyond the sum insured, the sources highlight several key functional differences:

Feature	Base Cover (₹5 lakh)	Large Cover (₹1 crore)
Room Rent	Often capped at 1% of sum insured or limited to "Twin Sharing".	Usually "No Limit" or includes "Single Private AC Room" and suites.
Waiting Periods	Standard waiting periods for pre-existing diseases (PED) are typically 3 to 4 years.	Often features reduced waiting periods of 1 to 2 years or even less.
Restoration	May have a single restoration benefit per year.	Frequently offers unlimited restoration or "refill" benefits.
Global Coverage	Generally restricted to treatment within India.	Some large covers (like HDFC Ergo or Niva Bupa) offer international treatment options.

Add-ons and Modern Benefits

Large covers often bundle features that are typically paid "riders" in base plans. For instance, HDFC Ergo Optima Secure offers a "2x" cover from day one, and Care Supreme can provide up to 3x or 4x coverage through specific growth boosters. High-value policies are also more likely to include comprehensive Custom Manufacturing Solutions (CMS) related benefits or coverage for modern "innovator" treatments that are otherwise expensive for base policyholders.

The Verdict for Investors

A large cover is not merely about a bigger "safety net" but about policy flexibility. While a ₹5 lakh cover is a solid foundation, a ₹1 crore cover removes the anxiety of room-rent sub-limits and provides a "kicker" for medical inflation, making it a superior long-term choice for those who can afford the slightly higher annual outlay.

Based on the FE Sunday section of the sources (dated January 18, 2026), here is the reproduction of the article titled "Vehicles of Ambition," which examines the rapid growth and changing demographics of the luxury car market in India.

Vehicles of Ambition

SHIFTING GEARS. The Indian luxury car market is steering toward a new record as younger buyers and Tier-2 cities drive demand.

India’s luxury car market is revving up as never before, moving beyond the traditional "top one percent" to find a wider, more aspirational audience. In the first nine months of FY25, luxury car makers sold more vehicles than in the previous full year, setting the stage for a record-breaking performance.

Record-Breaking Sales

The "Big Three" German manufacturers continue to dominate the landscape, reporting significant year-on-year growth:

• Mercedes-Benz India: Reported sales of 14,379 units, marking its highest-ever half-yearly performance.
• BMW India: Witnessed a 10 percent growth in its luxury segment.
• Audi India: Saw its sales climb to 5,530 units, reflecting a strong recovery and demand for its updated portfolio.

The New Luxury Buyer

A significant factor in this surge is the changing profile of the Indian luxury car buyer. The average age of owners has dropped significantly, now hovering in the late 30s compared to the mid-40s a decade ago. This shift is attributed to:

• Tech Wealth: The rise of young tech entrepreneurs and high-earning corporate executives.
• Easy Access: Attractive financing options, balloon payments, and luxury car leasing programs have made these vehicles more accessible to the salaried professional class.

The SUV Dominance

The "SUV craze" that has gripped the mass market has firmly established itself in the luxury segment as well. Every second luxury car sold in India is now an SUV, with these models accounting for more than 50 percent of total sales for major brands. Buyers are increasingly prioritizing the road presence, ground clearance, and perceived safety of luxury SUVs over traditional sedans.

Beyond the Metros

While Delhi and Mumbai remain the largest hubs, the source indicates that the next leg of growth is coming from Tier-2 and Tier-3 cities. Markets like Chandigarh, Ahmedabad, and Jaipur now contribute 20-25 percent of total luxury car sales. Manufacturers are responding by expanding their service networks and touchpoints into these emerging wealth centers.

Industry Outlook

Santosh Iyer, MD & CEO of Mercedes-Benz India, notes in the sources that the "desire for luxury" is no longer restricted to a small elite, but has become a symbol of ambition for India's burgeoning professional class. Despite potential global economic headwinds, the domestic outlook for the luxury segment remains bullish, with manufacturers planning multiple new launches to sustain the momentum.

Based on the FE Sunday section of the sources (dated January 18, 2026), here is the reproduction of the article providing guidance on maintaining digestive health while traveling.

How to avoid stomach trouble when you travel

TRAVEL TIPS. Essential precautions to prevent traveler’s diarrhea and other digestive issues.

Traveling to new environments often exposes the body to different bacteria, frequently resulting in digestive distress commonly known as traveler’s diarrhea (TD). This condition is typically caused by the ingestion of contaminated food or water. To ensure a trouble-free journey, medical experts recommend several key precautions.

Watch Your Water Intake

Water is the most common source of infection. Travelers are advised to:

• Avoid tap water: Even for brushing teeth, it is safer to use bottled or boiled water.
• Skip the ice: Ice is often made from local tap water and can harbor pathogens that survive freezing.
• Safe beverages: Stick to bottled water, canned or bottled carbonated drinks, and hot beverages like coffee or tea made with boiled water.

Be Selective with Food

Contaminated food is another primary cause of stomach trouble. The general rule is to "boil it, cook it, peel it, or forget it".

• Eat hot food: Consume only food that has been thoroughly cooked and is served steaming hot.
• Avoid raw produce: Steer clear of raw vegetables and salads, as they may have been washed in contaminated water.
• Fruit precautions: Only eat fruits that you have peeled yourself, such as bananas or oranges.
• High-risk items: Avoid undercooked meat, raw seafood, and unpasteurized dairy products.

Prioritize Hygiene

Maintaining personal hygiene is a critical line of defense against illness.

• Handwashing: Wash your hands frequently with soap and water, especially before handling food or eating.
• Sanitizers: If soap and water are unavailable, use an alcohol-based hand sanitizer.

Managing Symptoms

While most cases of traveler’s diarrhea are mild and resolve on their own, it is important to stay hydrated if symptoms occur. Travelers should consider carrying oral rehydration salts or consulting a healthcare professional for persistent or severe symptoms.