Shares of Indian IT companies plunged on Friday as investor sentiment turned cautious over concerns about a slowing US economy and rising inflation expectations, exacerbated by former US President Donald Trump’s tariff policies.
The Nifty IT index shed over 4%, with major IT players witnessing sharp losses.
Tech Mahindra led the declines, slipping nearly 6%, while Mphasis, Persistent Systems, Wipro, LTIMindtree, and Infosys fell between 4-5%.
Heavyweights Tata Consultancy Services (TCS), HCL Technologies, and Coforge were also down by 3-4%.
US jobless claims add to economic uncertainty
The sell-off was triggered by fresh data from the US Labor Department, which showed an unexpected spike in initial jobless claims.
For the week ended February 22, claims rose by 22,000 to a seasonally adjusted 242,000, marking the largest increase since October.
While analysts attributed the rise to snowstorms and the President’s Day holiday, concerns remain that further layoffs could emerge in the coming weeks, worsening economic conditions.
This development adds to broader concerns that the US economy is losing momentum, which could impact spending by major clients of Indian IT firms.
A weaker economic outlook in the US, the largest market for Indian IT services, raises fears of lower technology spending by businesses and financial institutions.
Analysts remain cautious on IT sector growth
While the uncertainty surrounding the US presidential election had eased following the results, analysts at Kotak Institutional Equities warned that Trump’s policy decisions continue to create volatility.
Client conversations till now do not indicate a material shift in tech spending priorities due to the perception of higher uncertainty under the Trump administration, analysts at Kotak Institutional Equities said.
However, they cautioned that downside risks remain due to slower recovery in spending and the near-term impact of artificial intelligence adoption on traditional IT services.
“The slower spending recovery and near-term risk from AI adoption lead to downside risks to revenue growth and margin estimates and stock multiples. The weak business momentum leads us to maintain a cautious view on engineering research and design (ERD) companies despite the ~18-36 per cent decline in stock prices in the past year,” the brokerage firm said in an IT services sector report.
Meanwhile, JM Financial Institutional Securities analysts flagged growing uncertainty in the sector.
“In our recent interactions with IT services players, we picked up sporadic instances of pause in transformation programs by large US banks. This, if it spreads, could put Street’s (and ours) FY26 growth estimates at risk,” the brokerage firm in a sector report.
Broader market declines amid global tech sell-off
The broader Indian market also faced significant losses.
The BSE Sensex dropped 1,000 points, or 1.34%, to 73,602, while the Nifty50 fell to 22,270. The overall market capitalisation of BSE-listed firms shrank by Rs 7.16 lakh crore to Rs 385.94 lakh crore.
Adding to the pressure, global markets followed suit, with the MSCI Asia ex-Japan index declining 1.21%, tracking losses on Wall Street.
A steep fall in Nvidia’s shares after its earnings report triggered a sell-off in AI-driven and mega-cap tech stocks, further dragging down IT stocks worldwide.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “Stock markets dislike uncertainty, and uncertainty has been on the rise ever since Trump was elected the US president. The spate of tariff announcements by Trump has been impacting markets and the latest announcement of an additional 10% tariff on China is a confirmation of the market view that Trump will use the initial months of his presidency to threaten countries with tariffs and then negotiate for a settlement favourable to the US.”
“How China responds to the latest round of tariffs remains to be seen,” he said.
With US economic data showing signs of weakness and global markets remaining volatile, Indian IT companies may continue to face pressure in the near term.
The Opera stock price has pulled back in the last two consecutive weeks, erasing some of the gains made earlier this year. OPRA has dropped from $22.5 to $18 as investors remained concerns about its growth trajectory. So, will the Opera share price rebound after its strong earnings?
Opera’s business is doing well
Opera is a technology company that operates in the interesting business of browsers that companies like Google, Apple, and Microsoft dominate.
It operates a popular desktop and mobile browser that millions of users worldwide use. These users appreciate the quality of its applications, which they believe is better than preinstalled apps like Chrome, Safari, and Edge.
Opera makes most of its money from Google, which pays it millions of dollars a year to have it as the default search engine. It then receives millions of dollars from advertisers like Booking, Facebook, Netflix, and Amazon.
Opera published strong financial results, which showed that its business continued doing well in the fourth quarter.
These results showed that the revenue rose by 29% to $145.8 million in the fourth quarter, bringing its annual figure to $480 million.
This growth happened as the search revenue increased by 17% and its advertising segment grew by 38%. The growth was also driven by the Opera GX Browser, which is mostly used by gamers.
Analysts are optimistic that Opera’s business will continue doing well. The average revenue estimate for the current quarter is $131 million, up by 28% from the same period in 2023. These are strong numbers since Opera has been around for many years.
Opera’s annual revenue will grow by 15% this year to $552 million, followed by $642 million next year.
The company’s earnings will also return to growth, with analysts expecting the quarterly EPS to move from 34 cents to 49 cents.
Analysts are optimistic about OPRA stock
Analysts are hopeful that the Opera share price will continue rising. Those at Piper Sandler, TD Cowen, Lake Street, and Goldman Sachs have a buy rating fo the stock. As a result, the average Opera stock price forecast by analysts is $34, higher than the current $17.98.
Opera is also an undervalued company since it has a solid balance sheet and room to grow its business. It has over $106 million in cash and equivalents and no debt.
Opera has several risks ahead. The most notable one is that it makes most of its money from Google. Companies that depend on one or a few customers are always at a risk if the company decides to cut it off.
However, with Opera’s users growing, it is unlikely that Google would want to do that. Also, a decision by Google to cut it off would offer an opportunity for Microsoft to ink a similar deal.
The weekly chart shows that the OPRA stock price has rebounded after bottoming at $9.65 in October 23rd to a high of $22.52. This rebound was in line with our recent OPRA stock forecast.
It formed an ascending channel and has remained above the 50-week Exponential Moving Averages (EMA).
This channel closely resembles a rising wedge since the two lines are converging. This convergence has a long way to go, meaning that the stock may rebound, and possibly retest the upper side.
A complete Opera stock price breakout will be confirmed if it moves above the upper side of the wedge at $22.52. That move may take it to the all-time high of $26.51.
On the other hand, a drop below the lower side of the wedge will point to more downside to the 50% retracement level at $14.95.
As it prepares for a potential initial public offering (IPO) in London, fast-fashion retailer Shein is facing renewed scrutiny over its supply chain practices.
The company disclosed to British lawmakers that it uncovered two cases of child labor at its suppliers in 2024, the same number as in 2023, despite increasing the number of audits conducted at its primarily China-based third-party manufacturers.
The revelation was made in a February 7 letter from Yinan Zhu, Shein’s general counsel for Europe, Middle East, and Africa, to the British parliament’s Business and Trade Committee.
The letter, which was published late Tuesday, was a response to questions posed by the committee following a January hearing where Zhu was questioned about allegations of worker abuses in Shein’s supply chain.
In the letter, Zhu described one incident involving a child aged 11 years and 8 months, whom the audit found spent time during the summer holiday at a factory where her father was the general manager and her mother worked, and “helped with tasks.”
“Nonetheless, and irrespective of these details, we took the issue extremely seriously, including designating the incident as child labour and immediately terminating our relationship with the supplier,” Zhu wrote.
The second case involved a 15-year-old who was 3 months over the limit, as well as providing the ages of the children Shein previously said it found working at suppliers in 2023 as 15 years and 11 months, and 15 years and 9 months.
Shein reported conducting approximately 4,300 audits in 2024, covering about 317,000 workers.
This represents an increase from 4,000 audits in 2023, which covered 285,000 workers, according to the letter.
“We take a strict zero tolerance approach to child labour,” Zhu wrote.
We will continue to work tirelessly to ensure that these isolated cases are removed from our supply chain entirely in future, bringing our network of third-party suppliers globally, including in China, Brazil and Turkey, along with us.
However, the fact that child labor cases persist despite increased audits raises questions about the effectiveness of Shein’s efforts to ensure ethical sourcing.
As Shein prepares for its potential IPO, the company will likely face continued pressure from lawmakers, advocacy groups, and investors to demonstrate a genuine commitment to eliminating worker abuses from its supply chain.
Stacks, a prominent layer-2 solution designed to unlock the potential of Bitcoin for decentralized finance (DeFi), is gaining significant momentum.
The platform announced today that a number of major institutions are adopting sBTC, a 1:1 Bitcoin-backed, decentralized programmable asset, as a key component of their Bitcoin strategies.
Since its mainnet launch in December 2024, sBTC has attracted considerable interest from industry leaders.
Early depositors participating in sBTC’s initial cap included well known firms like UTXO, SNZ, and Jump Crypto, signaling a strong belief in the project’s vision.
The initial demand for sBTC was so high that a second cap raise was implemented, tripling the capacity for deposits.
This expanded cap was met in less than 24 hours after its launch on February 25th, welcoming a new wave of builders, institutions, wealth managers, and retail investors eager to access sBTC.
Unlocking Bitcoin’s potential: $1T in passive capital
One rapidly growing sBTC use case, Zest, has already amassed nearly 40% of all sBTC in the protocol, demonstrating the asset’s usability and productivity for bitcoin holders.
The unique design of sBTC allows for fully activated capital for BTC holders instead of solely staking or locking BTC on the L1. sBTC enables flexible smart contracts and transactions that leverage Bitcoin’s security and irreversibility.
The next critical milestone for sBTC will be the launch of its withdrawal functionality, which is expected in March 2025.
Tokenized Bitcoin on the rise: meeting growing demand
As of February 2025, the demand for tokenized Bitcoin assets has been steadily increasing.
According to BBA data, Tokenized BTC supply has reached 1.67% of BTC’s circulating supply, a level not seen since October 2022.
This surge in demand is being driven by bitcoin holders who are increasingly recognizing that Bitcoin layers, like Stacks, can offer solutions aligned with the core promise of Bitcoin security.
“The growing adoption of sBTC provides essential liquidity for developers building and scaling applications,” said Alex Miller, CEO of Hiro.
We’ve already seen builders using our developer tools adopt sBTC to deliver solutions like native bitcoin yield generation, lending, borrowing, DEXs, and scaling of L1 activities like Runes and Ordinals. I predict that next we’ll see more innovation of these use cases, as well as new ideas through AI agents and more.
Strategic investments: supporting the sBTC vision
“We look for technologies that unlock latent capital and expand potential use cases for Bitcoin,” said Saurabh Sharma, at Jump Trading.
sBTC fosters a more dynamic and interconnected financial landscape, and we are pleased to participate in the ecosystem.
As a category, Bitcoin Layers have experienced dramatic growth in the past year.
Data from DeFiLlama shows that Total Value Locked (TVL) on Bitcoin Layers has grown over 460%, from roughly $500M in 2024 to approximately $2.8B in February 2025.
Given sBTC’s proximity to Bitcoin and its adoption by major industry players, including top staking providers, custodians, and ecosystems like Solana and Aptos, the project is positioned to connect the demand for Bitcoin with a global, interconnected future across all of crypto.
Stacks and the community building this DeFi ecosystem believe that “all roads lead back to Bitcoin,” emphasizing the fundamental importance of Bitcoin as a foundational layer.
The world’s largest spiritual gathering, the Mahakumbh Mela in Prayagraj, concluded on Wednesday after a 45-day run that witnessed an unprecedented 66 crore devotees taking a holy dip at ‘Sangam’—the confluence of the Ganga, Yamuna, and the mythical Saraswati rivers.
While the event was primarily a religious and cultural spectacle, it also had an undeniable economic impact, generating an estimated Rs 3 lakh crore (around $34.88 billion) in business activity and creating lakhs of employment opportunities.
From diplomats representing 73 countries to Indian politicians, industrialists such as Reliance Industries chairman Mukesh Ambani and Adani Group chief Gautam Adani, actors, artists, and sports personalities, the Mahakumbh 2025 drew a diverse audience.
The event was not without tragedy, as at least 30 people lost their lives in a stampede on January 29.
A controversy also erupted over water pollution reports indicating that the river quality did not meet bathing standards in mid-January.
Despite these challenges, the economic multiplier effect of the event was undisputed, with industries ranging from tourism to retail and technology experiencing a substantial boost.
Infrastructure investment and economic activity
According to central and state government data in January, the Mahakumbh 2025 was set to deliver a significant economic boost, contributing up to Rs 2 lakh crore to India’s economy.
Uttar Pradesh’s GDP is expected to grow by over 1%. Trade in daily essentials is projected at Rs 17,310 crore, with the hotel and travel sectors reaching Rs 2,800 crore.
Religious materials and flowers are estimated to generate Rs 2,000 crore and Rs 800 crore, respectively.
However, last week, Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT) and Member of Parliament from Chandni Chowk in New Delhi pegged Rs 3 lakh crore as the contribution.
“Earlier estimates suggested the participation of 40 crore people with business transactions worth Rs 2 lakh crore. However, with an overwhelming turnout, these figures have surpassed expectations,” he noted.
Uttar Pradesh Chief Minister Yogi Adityanath termed the government spending on Mahakumbh “transformative” for Prayagraj.
“If an investment of Rs 7,500 crore by the Central and state governments can generate economic activity worth Rs 3 to Rs 3.5 lakh crore, isn’t it a wise investment,” asked Adityanath
A total of Rs 7,500 crore was allocated to infrastructure development, including the construction of 14 new flyovers, six underpasses, over 200 widened roads, expanded railway stations, and a modernized airport terminal.
An additional Rs 1,500 crore was earmarked specifically for Kumbh Mela arrangements, covering sanitation, security, and logistical support.
Job creation across sectors
The Mahakumbh 2025 is estimated to have created 12 lakh gig and temporary jobs, according to NLB Services CEO Sachin Alug.
The tourism and hospitality industry alone accounted for approximately 4.5 lakh jobs, including hotel staff, tour guides, event coordinators, and travel consultants.
The transportation and logistics sector generated around 3 lakh jobs, employing drivers, supply chain managers, and support staff.
The retail and consumer goods industry saw a surge in demand, with vendors and businesses witnessing record sales.
Maha Kumbh-themed products such as diaries, calendars, jute bags, and religious stationery experienced a sharp rise in sales due to meticulous branding.
Brand engagement and marketing strategies
For brands, Mahakumbh 2025 presented a unique opportunity to engage with millions of consumers.
“Brand activation”, which refers to a campaign, event, or interaction through which a brand generates awareness and builds lasting connections with their target audience, was seen in its most vibrant form as a plethora of brands showed up to cash-in on the opportunity.
Most brand activations were interactive, allowing audiences to engage directly with a brand and its products.
In a Financial Express report, Vikas Nowal, CEO of Interspace Communications, shed light on the range of “experiential marketing” at display during the festival.
“Experiential marketing at the Maha Kumbh has proven to be a highly effective strategy for brands aiming to enhance engagement and brand recall.”
Nowal said that businesses were allocating between Rs 10 crore and Rs 50 crore for CSR-focused initiatives, such as environmental sustainability efforts, health camps, and community outreach programs.
These projects provide companies with a distinctive opportunity to connect with over 450 million pilgrims, strengthening goodwill and emotional engagement.
“With the right execution, the expected ROI for the specific TG could be far more impactful and better driven by increased brand affinity, consumer loyalty, and long-term market impact, making it a lucrative investment for brands,” he said.
From Blinkit to Coca-Cola to ITC to HUL: brands cashed in
Quick commerce platform Blinkit set up a temporary store at Maha Kumbh Mela, providing essentials such as pooja items, milk, fruits, vegetables, power banks, towels, and blankets.
The store served key locations, including Arail Tent City, Dome City, and ITDC Luxury Camp.
Coca-Cola India introduced special Maha Kumbh-themed packaging and hydration carts every 400 meters across the event grounds.
The company also promoted sustainability through Reverse Vending Machines for PET recycling, jackets made from recycled plastic for sanitation workers, and changing rooms constructed from repurposed materials.
“The Maidaan Saaf campaign is a testament to how partnerships for collection and innovative practices can turn waste into opportunity. By encouraging collective responsibility and promoting recycling, we aim to inspire visitors to adopt environmentally conscious habits and contribute to a cleaner, greener future,” said Saloni Goel, senior director, ESG Value Creation, Coca-Cola India.
Eveready Industries distributed 5,000 Siren Torches to the Maha Kumbh Police to aid in crowd management.
The company also installed 13,000 LED lights across the grounds, enhancing safety and visibility while emphasizing its commitment to innovation and public welfare.
Mankind Pharma launched a 45-day healthcare mission at Maha Kumbh, offering free medical check-ups, blood pressure monitoring, and first-aid services.
The initiative catered to hundreds of pilgrims daily, ensuring their well-being amid the vast crowds.
ITC’s FMCG brands, including Bingo and Mangaldeep, leveraged the event to connect with consumers.
Bingo set up activity booths showcasing Uttar Pradesh’s local culture through traditional props, fusion dishes, and interactive reels on social media.
“The auspicious Mahakumbh Mela this year is set to be a unique spiritual, economic and cultural confluence, offering unparalleled opportunities for brands to engage with consumers through unique interventions,” an ITC spokesperson said.
Hindustan Unilever was seen distributing an “Easy Bag” which featured a zip-lock waterproof compartment designed to store wet clothes, especially designed for pilgrims taking the sacred dip.
The company’s Lifebuoy brand organised a drone show while HUL also sought to connect with consumers through its food and refreshment brands.
The Mahakumbh 2025 has proven to be a windfall for India’s spiritual startups, which reported record-breaking engagement and sales.
Platforms offering astrology consultations, religious merchandise, and virtual prayer services saw heightened user activity as devotees sought new ways to enhance their spiritual experience.
Startups such as Sri Mandir, Vama, and AstroYogi, which enabled devotees to experience the once-in-12-years event virtually, saw demand far exceed expectations, according to a report by Moneycontrol.
For Manu Jain, co-founder of Delhi-based spiritual startup Vama, the Maha Kumbh period led to a 50% surge in user transactions, the report said.
To meet this rising demand, the company introduced offerings like live kathas from the Mahakumbh region, home delivery of Mahakumbh Triveni Gangajal, and daily Mahakumbh chadhava at Triveni Sangam.
“The Maha Kumbh 2025 has been a game-changer for Vama, driving a 40% increase in platform traffic compared to our pre-event levels. During this period, we also saw a 70% rise in new user registrations, significantly surpassing our usual growth rate,” Jain said.
Tourism and hospitality boom
Hotels, dharamshalas, and homestays in Prayagraj and surrounding areas operated at near-full capacity throughout the event.
The demand for accommodation rose sharply, with hotels, homestays, and luxury cottages, especially those near the fairgrounds, being pre-booked in anticipation of February 26, the final day of the event.
The city’s hospitality sector witnessed a 20%- 30% increase in business, with profit margins ranging between 5%-10% due to the influx of pilgrims.
Tour and travel agencies also saw significant gains, officials said, as per a Hindustan Times report.
Harjinder Singh, president of the Prayagraj Hotels and Restaurant Welfare Association, noted that the hospitality industry has recorded a 5%-10% rise in profits, a trend likely to persist beyond the Mahakumbh.
“The strategic initiatives of CM Yogi in improving Prayagraj’s infrastructure and boosting tourism will have long-term benefits for the hotel, restaurant, and travel industries,” Singh said.
Local artisans and craftsmen also benefited, as devotees purchased handmade souvenirs, religious artifacts, and textiles.
Asia-Pacific markets were mixed on Thursday as investors weighed fresh tariff threats from US President Donald Trump and reacted to corporate shake-ups in Japan.
Meanwhile, Seven & i Holdings plunged after a failed buyout attempt, while Nissan shares surged on reports of a potential CEO change.
Australia’s S&P/ASX 200 rose 0.35%, while Japan’s Nikkei 225 traded near the flatline, with the broader Topix adding 0.4%.
South Korea’s Kospi slipped 0.82%, and the small-cap Kosdaq edged down 0.1%.
Hong Kong’s Hang Seng Index lost 0.18%, while China’s CSI 300 declined 0.2%.
Seven & i Holdings plunges over 12% as buyout collapses
Shares of Japanese convenience store giant Seven & i Holdings tumbled as much as 12.44% after its founding family failed to secure financing for a management buyout.
According to a company filing, the deal, reportedly valued at over 8 trillion yen ($53.69 billion), was abandoned due to financing difficulties.
The Yomiuri newspaper earlier reported that the company had scrapped the plan entirely.
Junro Ito, vice president of Seven & i and son of the late founder Masatoshi Ito, had led the buyout bid through his affiliated company Ito-Kogyo, which holds an 8.2% stake in the retailer.
However, the company confirmed that no actionable proposal from the family is currently on the table.
Nissan gains 3% amid reports of CEO replacement talks
Nissan shares climbed 3.12% following reports that the automaker is considering replacing CEO Makoto Uchida.
According to Bloomberg, the move follows the collapse of merger discussions with Honda and disappointing financial results.
The report also comes after Fitch Ratings downgraded Nissan’s credit rating to BBB- from BB+, pushing it into junk status.
Investor sentiment remained cautious after Trump reignited trade war fears, threatening to impose 25% tariffs on European Union imports.
This follows his decision to proceed with tariffs on Mexico and Canada after a previous postponement.
Asian traders are also keeping a close eye on semiconductor stocks after Nvidia’s blockbuster fourth-quarter earnings.
The AI-chip giant beat Wall Street expectations and issued bullish guidance, reinforcing investor confidence in the sector’s ongoing growth trajectory.
Wall Street recap: S&P 500 snaps losing streak
Overnight on Wall Street, the S&P 500 gained 0.26%, ending a four-day losing streak to close at 5,956.06.
The Dow Jones Industrial Average fell 188.04 points, or 0.43%, closing at 43,433.12 after initially rising as much as 0.6%.
The Nasdaq Composite advanced 0.26% to end at 19,075.26, supported by gains in tech stocks.
As global markets react to shifting trade policies, corporate shake-ups, and AI-driven stock movements, investors remain on high alert for further volatility in the Asia-Pacific region.
Elon Musk, as head of the Department of Government Efficiency (DOGE), took center stage at Donald Trump’s first Cabinet meeting of his second term, outlining his aggressive plans to cut federal spending.
The billionaire Tesla and SpaceX CEO presented DOGE’s mission as an urgent effort to prevent what he called an impending fiscal collapse, citing unsustainable $2 trillion deficits and rising interest payments that now exceed US Defence Department spending.
Musk’s role in Trump’s administration has come under increasing scrutiny, including from congressional Republicans, as his budget-cutting initiatives disrupt federal agencies.
Wearing a black ‘Make America Great Again’ hat and a T-shirt reading “Tech Support,” he claimed that outdated government computer systems were a major source of inefficiencies.
His team, he said, was effectively acting as “tech support” for the federal government, fixing legacy systems that fail to communicate properly and result in wasted funds.
Trump backs Musk’s drastic cuts
Musk’s cost-cutting agenda involves slashing government expenditures by eliminating inefficiencies, fraud, and waste across departments.
His ambitious target: finding $1 trillion in savings, roughly 15% of the $7 trillion federal budget.
He defended his aggressive approach, warning that without major reforms, “America will go bankrupt.”
The DOGE initiative has already begun freezing and reallocating funds, which Musk claims will ensure essential services remain intact while eliminating redundant expenses.
One of his first controversial moves involved temporarily halting USAID’s Ebola prevention funding before reversing the decision, a move he justified as part of a broader “learning process.”
Despite backlash, Trump has fully embraced Musk’s approach, describing him as someone “sacrificing a lot” for the country.
Trump praised Musk’s efforts to expose and rectify “horrible things” in government spending, reinforcing the administration’s commitment to reducing federal bureaucracy.
Federal layoffs and employee pushback
One of Musk’s most contentious proposals is requiring federal employees to justify their work weekly under penalty of termination.
The initiative has sparked outrage, with critics arguing that it threatens job security and national security operations.
Musk defended the proposal, calling it a simple “pulse check” to ensure government workers “have a pulse and two neurons,” insisting that the minimum expectation should be the ability to write an email.
His comments have heightened concerns among public sector employees, many of whom already fear large-scale job cuts. Trump’s administration has mandated workforce reductions, leaving agencies uncertain about their future.
Musk’s overhaul disrupts Washington
Musk’s efficiency drive is already causing significant disruptions across federal agencies.
As departments brace for workforce reductions, the uncertainty surrounding job security has led to increased tensions between the administration and government employees.
Critics argue that his aggressive strategy could result in critical operational gaps, particularly in national security and social services.
Beyond budget cuts, Musk’s push to modernize government technology has also raised concerns about cybersecurity risks.
While he insists that replacing outdated software is essential, critics warn that rapid digital transitions without oversight could expose government systems to new vulnerabilities.
With mounting opposition and federal workers on edge, Musk’s role in the Trump administration remains a source of controversy.
Whether his drastic measures will achieve the promised savings or lead to greater instability remains to be seen.
The world’s largest spiritual gathering, the Mahakumbh Mela in Prayagraj, concluded on Wednesday after a 45-day run that witnessed an unprecedented 66 crore devotees taking a holy dip at ‘Sangam’—the confluence of the Ganga, Yamuna, and the mythical Saraswati rivers.
While the event was primarily a religious and cultural spectacle, it also had an undeniable economic impact, generating an estimated Rs 3 lakh crore (around $34.88 billion) in business activity and creating lakhs of employment opportunities.
From diplomats representing 73 countries to Indian politicians, industrialists such as Reliance Industries chairman Mukesh Ambani and Adani Group chief Gautam Adani, actors, artists, and sports personalities, the Mahakumbh 2025 drew a diverse audience.
The event was not without tragedy, as at least 30 people lost their lives in a stampede on January 29.
A controversy also erupted over water pollution reports indicating that the river quality did not meet bathing standards in mid-January.
Despite these challenges, the economic multiplier effect of the event was undisputed, with industries ranging from tourism to retail and technology experiencing a substantial boost.
Infrastructure investment and economic activity
According to central and state government data in January, the Mahakumbh 2025 was set to deliver a significant economic boost, contributing up to Rs 2 lakh crore to India’s economy.
Uttar Pradesh’s GDP is expected to grow by over 1%. Trade in daily essentials is projected at Rs 17,310 crore, with the hotel and travel sectors reaching Rs 2,800 crore.
Religious materials and flowers are estimated to generate Rs 2,000 crore and Rs 800 crore, respectively.
However, last week, Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CAIT) and Member of Parliament from Chandni Chowk in New Delhi pegged Rs 3 lakh crore as the contribution.
“Earlier estimates suggested the participation of 40 crore people with business transactions worth Rs 2 lakh crore. However, with an overwhelming turnout, these figures have surpassed expectations,” he noted.
Uttar Pradesh Chief Minister Yogi Adityanath termed the government spending on Mahakumbh “transformative” for Prayagraj.
“If an investment of Rs 7,500 crore by the Central and state governments can generate economic activity worth Rs 3 to Rs 3.5 lakh crore, isn’t it a wise investment,” asked Adityanath
A total of Rs 7,500 crore was allocated to infrastructure development, including the construction of 14 new flyovers, six underpasses, over 200 widened roads, expanded railway stations, and a modernized airport terminal.
An additional Rs 1,500 crore was earmarked specifically for Kumbh Mela arrangements, covering sanitation, security, and logistical support.
Job creation across sectors
The Mahakumbh 2025 is estimated to have created 12 lakh gig and temporary jobs, according to NLB Services CEO Sachin Alug.
The tourism and hospitality industry alone accounted for approximately 4.5 lakh jobs, including hotel staff, tour guides, event coordinators, and travel consultants.
The transportation and logistics sector generated around 3 lakh jobs, employing drivers, supply chain managers, and support staff.
The retail and consumer goods industry saw a surge in demand, with vendors and businesses witnessing record sales.
Maha Kumbh-themed products such as diaries, calendars, jute bags, and religious stationery experienced a sharp rise in sales due to meticulous branding.
Brand engagement and marketing strategies
For brands, Mahakumbh 2025 presented a unique opportunity to engage with millions of consumers.
“Brand activation”, which refers to a campaign, event, or interaction through which a brand generates awareness and builds lasting connections with their target audience, was seen in its most vibrant form as a plethora of brands showed up to cash-in on the opportunity.
Most brand activations were interactive, allowing audiences to engage directly with a brand and its products.
In a Financial Express report, Vikas Nowal, CEO of Interspace Communications, shed light on the range of “experiential marketing” at display during the festival.
“Experiential marketing at the Maha Kumbh has proven to be a highly effective strategy for brands aiming to enhance engagement and brand recall.”
Nowal said that businesses were allocating between Rs 10 crore and Rs 50 crore for CSR-focused initiatives, such as environmental sustainability efforts, health camps, and community outreach programs.
These projects provide companies with a distinctive opportunity to connect with over 450 million pilgrims, strengthening goodwill and emotional engagement.
“With the right execution, the expected ROI for the specific TG could be far more impactful and better driven by increased brand affinity, consumer loyalty, and long-term market impact, making it a lucrative investment for brands,” he said.
From Blinkit to Coca-Cola to ITC to HUL: brands cashed in
Quick commerce platform Blinkit set up a temporary store at Maha Kumbh Mela, providing essentials such as pooja items, milk, fruits, vegetables, power banks, towels, and blankets.
The store served key locations, including Arail Tent City, Dome City, and ITDC Luxury Camp.
Coca-Cola India introduced special Maha Kumbh-themed packaging and hydration carts every 400 meters across the event grounds.
The company also promoted sustainability through Reverse Vending Machines for PET recycling, jackets made from recycled plastic for sanitation workers, and changing rooms constructed from repurposed materials.
“The Maidaan Saaf campaign is a testament to how partnerships for collection and innovative practices can turn waste into opportunity. By encouraging collective responsibility and promoting recycling, we aim to inspire visitors to adopt environmentally conscious habits and contribute to a cleaner, greener future,” said Saloni Goel, senior director, ESG Value Creation, Coca-Cola India.
Eveready Industries distributed 5,000 Siren Torches to the Maha Kumbh Police to aid in crowd management.
The company also installed 13,000 LED lights across the grounds, enhancing safety and visibility while emphasizing its commitment to innovation and public welfare.
Mankind Pharma launched a 45-day healthcare mission at Maha Kumbh, offering free medical check-ups, blood pressure monitoring, and first-aid services.
The initiative catered to hundreds of pilgrims daily, ensuring their well-being amid the vast crowds.
ITC’s FMCG brands, including Bingo and Mangaldeep, leveraged the event to connect with consumers.
Bingo set up activity booths showcasing Uttar Pradesh’s local culture through traditional props, fusion dishes, and interactive reels on social media.
“The auspicious Mahakumbh Mela this year is set to be a unique spiritual, economic and cultural confluence, offering unparalleled opportunities for brands to engage with consumers through unique interventions,” an ITC spokesperson said.
Hindustan Unilever was seen distributing an “Easy Bag” which featured a zip-lock waterproof compartment designed to store wet clothes, especially designed for pilgrims taking the sacred dip.
The company’s Lifebuoy brand organised a drone show while HUL also sought to connect with consumers through its food and refreshment brands.
The Mahakumbh 2025 has proven to be a windfall for India’s spiritual startups, which reported record-breaking engagement and sales.
Platforms offering astrology consultations, religious merchandise, and virtual prayer services saw heightened user activity as devotees sought new ways to enhance their spiritual experience.
Startups such as Sri Mandir, Vama, and AstroYogi, which enabled devotees to experience the once-in-12-years event virtually, saw demand far exceed expectations, according to a report by Moneycontrol.
For Manu Jain, co-founder of Delhi-based spiritual startup Vama, the Maha Kumbh period led to a 50% surge in user transactions, the report said.
To meet this rising demand, the company introduced offerings like live kathas from the Mahakumbh region, home delivery of Mahakumbh Triveni Gangajal, and daily Mahakumbh chadhava at Triveni Sangam.
“The Maha Kumbh 2025 has been a game-changer for Vama, driving a 40% increase in platform traffic compared to our pre-event levels. During this period, we also saw a 70% rise in new user registrations, significantly surpassing our usual growth rate,” Jain said.
Tourism and hospitality boom
Hotels, dharamshalas, and homestays in Prayagraj and surrounding areas operated at near-full capacity throughout the event.
The demand for accommodation rose sharply, with hotels, homestays, and luxury cottages, especially those near the fairgrounds, being pre-booked in anticipation of February 26, the final day of the event.
The city’s hospitality sector witnessed a 20%- 30% increase in business, with profit margins ranging between 5%-10% due to the influx of pilgrims.
Tour and travel agencies also saw significant gains, officials said, as per a Hindustan Times report.
Harjinder Singh, president of the Prayagraj Hotels and Restaurant Welfare Association, noted that the hospitality industry has recorded a 5%-10% rise in profits, a trend likely to persist beyond the Mahakumbh.
“The strategic initiatives of CM Yogi in improving Prayagraj’s infrastructure and boosting tourism will have long-term benefits for the hotel, restaurant, and travel industries,” Singh said.
Local artisans and craftsmen also benefited, as devotees purchased handmade souvenirs, religious artifacts, and textiles.
At his first cabinet meeting, Trump gave a spotlight to billionaire entrepreneur Elon Musk, who outlined ambitious budget-cutting plans that could see up to $1 trillion slashed from federal spending this year, Reuters reported.
A new memo issued Wednesday directed agencies to submit plans by March 13 for a “significant reduction” in staffing.
While the document did not specify the number of expected job cuts, it signals a major shift toward targeting veteran civil servants after earlier layoffs primarily affected probationary workers with fewer job protections.
Environmental Protection Agency (EPA) Administrator Lee Zeldin is preparing to reduce up to 65% of his agency’s 15,000-strong workforce, while sources at the Interior Department revealed that divisions such as the US Fish and Wildlife Service and the Bureau of Indian Affairs have been instructed to brace for workforce reductions as high as 40%.
100,000 employees have either been dismissed or taken buyouts
So far, approximately 100,000 of the 2.3 million civilian federal employees have either been dismissed or taken buyouts under the administration’s cost-cutting measures.
The layoffs are part of the ongoing restructuring led by Musk’s Department of Government Efficiency (DOGE), a controversial initiative that has drawn both praise for its fiscal discipline and criticism for its impact on public services.
In a rare move, Trump invited Musk—a private-sector leader with no formal government position—to address the cabinet directly.
Wearing a black “Make America Great Again” baseball cap and a T-shirt reading “Tech Support,” the Tesla and SpaceX CEO confidently laid out his vision for trimming federal expenditures.
Musk, who has been informally overseeing DOGE, claimed he could cut $1 trillion from the $6.7 trillion federal budget, a target that would require unprecedented downsizing and program eliminations.
Despite the White House’s legal insistence that Musk is not officially in charge of DOGE, Trump has repeatedly referred to him as the leader of the initiative, with Musk’s aides embedded in key government offices.
The billionaire’s role in shaping federal workforce policy has raised questions about executive power, transparency, and the potential long-term consequences of large-scale job cuts.
With agencies now racing to meet the March deadline, the administration’s aggressive push to overhaul the federal government is expected to spark further debate about the balance between efficiency and essential public services.
The US dollar index has suffered a harsh reversal this month as some global risks eased. The DXY, which weighs the greenback against a basket of currencies, has dropped to $106.62, down by over 3.25% from its highest level this year. Let’s explore why the DXY index has retreated and what to expect next.
DXY index falls as some global risks eased
The US dollar index has retreated this month after signs emerged that some global risks were easing this year.
The crisis in the Middle East has eased, with Israel and Hamas being in a ceasefire. That has raised the odds that the war could end soon. A ceasefire between Israel and Hezbollah has also remained steady.
There are signs that the war in Ukraine is also about to end as negotiations between Russia and the United States start ahead of a summit between Donald Trump and Vladimir Putin of Russia.
Ending of that conflict would mark a major mark of de-escalation and reduce global risks that have remained since Russia invaded Ukraine in 2022. The US dollar index is often seen as a safe haven when there are global risks.
US tariffs are a big risk
The US dollar index has crashed even as risks surrounding Donald Trump’s tariffsrise. He has already hiked tariffs of Chinese imports by 10% and confirmed that that Mexico and Canadian tariffs will go on next month.
On top of this, Trump has hinted that he will move to levy reciprocal tariffs on most countries.
The implication of all this is that the US is launching a new trade war that will affect the global economy since it is one of the biggest buyers.
Tariffs are expected to make the already-worsening inflation crisis worse in the US. Data released this month showed that US inflation rose to 3.0% in January, continuing a trend that has been going on for months.
Companies will now be forced to raise prices for American consumers, with some products expected to cost up to 25% more. That will lead to higher inflation and slow growth since many consumers will hold on from making purchases.
US dollar index falls as rate cut hopes rise
The US dollar index has crashed as investors anticipate that the Federal Reserve will cut interest rates sooner than expect. In doing this, the Fed will weigh between inflation and economic growth.
These rate cut expectations explain why the US treasury yields have slipped in the past few dats. The ten-year yield has dropped from 4.806% in January to 4.30%, its lowest level since December 12.
Similarly, the 30-year yield has dropped from 5% this year to 4.535%, its lowest level since December. Bond yields fall when there is an elevated sign that the Federal Reserve will cut interest rates.
Looking ahead, the US will publish several important economic numbers on Thursday and Friday, but their impact on the DXY index will be limited. It will release the GDP and the personal consumption expenditure report on Thursday and Friday.
The daily chart shows that the US dollar index has crashed from the year-to-date high of $110.17 on January 13. It has dropped to $106.70, and is hovering near its lowest level since December 12.
The index has moved below the 50-day and 100-day Exponential Moving Averages (EMA). It has retested the key support at $106.48, the highest swing in April last year.
The DXY index has moved to the 38.2% Fibonacci Retracement point. Therefore, the index will likely continue falling as sellers target the 50% retracement point at $105.17.
