Market veteran Ajay Srivastava from Dimensions Corporate believes that the narrative around the global economy, particularly the United States, is often misunderstood by Indian investors. Speaking to ET Now, he argued that while many perceive the U.S. to be facing economic challenges, the reality is quite different.

According to him, the American economy continues to perform exceptionally well, with stock markets at record highs, unemployment near historic lows, and some of the world’s largest companies continuing to create enormous wealth. He said that every country would aspire to be in the position that the U.S. currently occupies and stressed that India should focus less on judging global economies and more on addressing its own economic challenges.

Srivastava noted that despite geopolitical tensions, including the ongoing conflict in West Asia, the global economy remains resilient. He pointed out that developed nations have successfully diversified across industries such as semiconductors, technology, and advanced manufacturing, reducing their dependence on any single sector. India, he said, still has significant work to do in building similar capabilities and strengthening its economic competitiveness. He also emphasized the importance of keeping economic discussions separate from political considerations, arguing that a pragmatic approach is essential for long-term growth.

On artificial intelligence, Srivastava maintained that investors cannot afford to ignore the theme despite concerns around lofty valuations. He believes the leading AI companies enjoy strong competitive advantages and are likely to remain important wealth creators over time. While India may not be leading the development of foundational AI technologies, he sees a substantial opportunity for the country as a large-scale adopter and implementer of AI solutions. In his view, Indian businesses across sectors will increasingly rely on AI to improve productivity and efficiency, creating a significant opportunity for domestic companies involved in deployment and integration.

He also challenged the notion that the U.S. market’s strength is entirely dependent on AI-related stocks. While technology companies have undoubtedly been major contributors to market gains, he highlighted that several industrial, consumer, and defence-related businesses have also delivered strong performance. This, he argued, reflects the broader strength of the American economy rather than a narrow AI-driven rally.

Among Indian sectors, Srivastava believes banking stands to gain the most from AI adoption. He expects artificial intelligence to transform operational efficiency, reduce costs, and significantly improve profitability. From branch operations to customer service and call centres, AI has the potential to automate labour-intensive processes and enhance customer experience. As a result, he believes banks that successfully integrate AI into their business models could witness margin expansion that has not been seen in years.
While optimistic about the long-term opportunity, Srivastava remains selective on the banking sector. He reiterated concerns about large traditional lenders, arguing that some of them have struggled to deliver shareholder returns despite their dominant market positions. He also questioned the effectiveness of recent interest rate reductions in improving the sector’s outlook, noting that structural reforms and technological adoption are likely to have a greater impact on profitability than monetary policy alone. According to him, the key differentiator going forward will be how effectively banks leverage technology to reduce costs and improve efficiency.Discussing public-sector banks, Srivastava admitted that their low valuations continue to puzzle him. Although he expects certain private sector banks with strong institutional ownership to outperform, he does not believe investors should dismiss PSU banks outright. At current valuations, he suggested that downside risks appear limited, even if return potential may not be as attractive as some private-sector peers.

On the issue of expected credit loss (ECL) norms, Srivastava downplayed concerns about a significant impact on bank valuations. He believes any implementation is likely to be gradual, allowing banks sufficient time to adapt. More importantly, he argued that investors should focus on broader factors such as interest rates, economic growth, operating efficiency, and competitive dynamics rather than regulatory changes alone.

Perhaps his strongest message was directed at Indian investors’ portfolio allocation strategies. Srivastava pointed out that most Indian investors remain overwhelmingly concentrated in domestic assets and have limited exposure to global opportunities. He criticized restrictions on overseas investments by mutual funds, arguing that these constraints prevented Indian investors from participating meaningfully in the global AI boom. According to him, access to international markets is essential for long-term wealth creation, especially as many of the world’s most innovative companies continue to emerge outside India.

He believes investors should think beyond short-term market movements and focus on building diversified portfolios that include exposure to global growth themes. With new technology leaders and disruptive businesses continuing to emerge around the world, Srivastava argues that limiting investments to a market that represents only a small share of global market capitalization may not be the most effective strategy for future wealth creation. His message is clear: global markets remain strong, AI represents a transformational opportunity, and Indian investors must embrace both technological change and global diversification to fully participate in the next phase of economic growth.

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The South West transport hub will offer two direct departures from Newquay

Cornwall Airport Newquay is planning to launch a direct-flight package holiday programme to Tenerife in March next year, it has announced.

The South West transport hub has partnered with Murray Travel on the programme which will offer two direct departures from Newquay to Tenerife on Friday, March 5 and Friday March 12.

The new charter operation has been developed in response to sustained passenger demand for extra winter sun destinations and package holiday options from Cornwall, the airport said.

“Feedback from passengers, route requests and booking trends across the airport’s leisure network have consistently highlighted the Canary Islands as one of the most sought-after destinations,” the transport hub said.

The initiative forms part of Cornwall Airport Newquay’s wider strategy to strengthen regional connectivity by providing more choice and convenience for passengers while reducing reliance on airports outside the region.

Nigel Scott, commercial director at Cornwall Airport Newquay, said: “Our role is about more than operating flights; it’s about strengthening regional connectivity and ensuring people across Cornwall and the wider South West can access the destinations they want, directly from their local airport.”

He said that by partnering with Murray Travel to offer direct flights to Tenerife, it would make it easier for local people to travel and reduce the need for “lengthy journeys to airports outside the county”, while keeping “more travel spend” within the region.

“It’s another example of how we’re working with partners to expand opportunities for our passengers while supporting Cornwall’s long-term connectivity and economic resilience,” he said.

The airport has experienced significant international growth in recent years, with international passenger numbers rising from 74,069 in 2022 to more than 203,900 in 2024.

In April, international passengers from Cornwall accounted for 66 per cent of total traffic – up from 54 per cent a year earlier – the airport said.

Scott Murray, director at Murray Travel, said: “Tenerife remains one of the UK’s favourite holiday spots, so we’re really pleased to be able to offer this short trial programme and give customers in Cornwall and the surrounding area the chance to fly straight from their local airport.”

He added: “The response to our Lapland day trip from Newquay has been incredible, and it has shown us just how much appetite there is locally for convenient, direct flights to exciting destinations.”

Earlier this week, a Cornwall Council corporate finance committee meeting heard that “quite serious” cost-cutting measures would be likely at Newquay airport.

The council’s decision earlier this year to scrap the government-subsidised – through a Public Service Obligation (PSO) – service from Cornwall to London Gatwick has seen a drop in income at the council-owned airport.

SYDNEY — The Kia K4 has been named Australia’s best affordable small car in the 2026 CarExpert Choice Awards, beating out strong competition from the Hyundai i30 Sedan and Mazda 3 in a closely watched annual evaluation of new vehicles.

The award marks a significant achievement for Kia, which improved upon its runner-up position from the inaugural awards last year. Judges praised the K4 for its stylish interior, advanced technology, refined driving dynamics and value across its full model range, from the entry-level S grade to the flagship GT-Line.

Since the previous awards, Kia has introduced a more efficient and smoother base powertrain for the K4, along with a practical and distinctive hatchback body style that expands its appeal. The updates have helped the K4 stand out in a competitive segment where buyers seek a balance of practicality, comfort and modern features without premium pricing.

The K4 impressed evaluators with its well-appointed cabin that feels more upscale than its price point suggests. High-quality materials, intuitive infotainment systems and generous standard equipment across all grades contributed to its strong showing. Whether equipped with the base engine or the more powerful turbocharged option in higher trims, the K4 delivers composed handling and a comfortable ride suitable for both daily commuting and longer journeys.

CarExpert’s judging panel highlighted the K4’s versatility. The sedan and hatchback variants offer flexible cargo space and passenger comfort, making the model suitable for young families, first-time buyers and urban professionals. Advanced driver assistance systems, including adaptive cruise control and lane-keeping features, come standard or as affordable options, enhancing safety and convenience.

The win comes at a time when the affordable small car segment is evolving rapidly. Buyers increasingly demand vehicles that combine efficiency, technology and style while remaining accessible. The K4’s success demonstrates Kia’s ability to meet these expectations through thoughtful design and engineering improvements.

In comparison, the Hyundai i30 Sedan, last year’s winner, remains a formidable contender with its refined ride and strong value proposition. However, judges noted the K4’s fresher interior design and updated powertrain gave it a slight edge in overall refinement and feature content. The Mazda 3, known for its premium feel and engaging dynamics, finished as a finalist but was edged out by the K4’s broader practicality and technology offerings.

Kia has positioned the K4 as a direct rival to established players in the small car market. Its bold exterior styling, inspired by the brand’s evolving design language, helps it stand out visually. Inside, the cabin benefits from a minimalist yet functional layout with high-resolution displays and seamless smartphone integration.

Fuel efficiency has also improved with the new base engine, appealing to cost-conscious buyers facing rising operating expenses. Higher-grade models with the turbocharged engine offer stronger performance for those seeking more engaging driving dynamics without sacrificing everyday usability.

The CarExpert Choice Awards evaluate vehicles across multiple criteria, including value for money, driving experience, interior quality, safety features and ownership costs. The judging process involves extensive real-world testing and comparison across categories to identify standout models in each segment.

This year’s awards reflect shifting consumer preferences toward vehicles that offer more than basic transportation. Buyers in the affordable small car segment increasingly prioritize technology, comfort and design, areas where the K4 excels. Its comprehensive warranty and strong resale value further enhance its attractiveness.

Kia’s success with the K4 builds on the brand’s broader momentum in Australia. The company has gained market share through consistent product improvements and competitive pricing strategies. The K4’s award is expected to boost its visibility and sales in a segment that remains popular among first-time buyers and downsizers.

Industry analysts note that the small car category faces challenges from the growing popularity of crossovers and SUVs. However, models like the K4 continue to attract buyers who prefer the handling and efficiency of traditional sedans and hatchbacks. Its competitive pricing positions it well against both domestic and imported rivals.

The K4’s interior stands out for its attention to detail. Soft-touch materials, ambient lighting and ergonomic seating create a premium atmosphere. Technology features such as wireless charging, a large touchscreen infotainment system and over-the-air update capability keep the model feeling contemporary.

Safety remains a priority. The K4 includes a full suite of advanced driver assistance features, contributing to strong ratings in independent safety assessments. This focus on protection appeals to families and safety-conscious buyers in the segment.

Driving impressions highlight the K4’s balanced chassis tuning. It offers a comfortable ride over varied road surfaces while maintaining composure during cornering. The steering provides good feedback, and the available turbo engine delivers responsive performance when needed.

For buyers considering the K4, the full model range offers options to suit different budgets and needs. Entry-level variants provide excellent value with generous standard equipment, while higher trims add luxury touches and performance enhancements.

The CarExpert Choice Awards serve as an important guide for Australian car buyers. By recognizing standout models in each category, the awards help consumers navigate an increasingly complex market filled with choices across brands and vehicle types.

Kia’s victory in the affordable small car segment underscores the brand’s commitment to continuous improvement. The K4’s success is likely to influence competitors to refine their offerings in response to changing buyer expectations.

As the automotive industry evolves toward greater efficiency and technology integration, models like the K4 demonstrate that affordable small cars can deliver premium experiences without premium prices. Its recognition in the 2026 CarExpert Choice Awards cements its position as a leader in the segment.

Australian buyers seeking a stylish, well-equipped and enjoyable small car now have a clear recommendation in the Kia K4. Its combination of design, technology and driving refinement makes it a compelling choice for those entering the market or upgrading from older vehicles.

The awards process involved detailed testing and comparison by experienced automotive journalists. Their assessment considered real-world usability, long-term ownership costs and overall value, ensuring the winner represents a well-rounded recommendation for consumers.

Kia has expressed pride in the K4’s achievement. The company views the award as validation of its product development strategy and commitment to the Australian market. Strong sales are expected to follow as awareness of the K4’s capabilities grows.

For the broader automotive sector, the K4’s success highlights the ongoing relevance of small cars in a market shifting toward SUVs. Manufacturers that deliver engaging, practical and affordable options continue to find success among discerning buyers.

As 2026 progresses, the K4 will face continued competition from updated rivals. However, its current strengths position it well to maintain leadership in the affordable small car segment.

The CarExpert Choice Awards continue to serve as a trusted resource for Australian car buyers. By highlighting excellence across categories, they help consumers make informed decisions in an ever-evolving automotive landscape.

The Kia K4’s victory in the best affordable small car category for 2026 reflects its ability to exceed expectations and deliver meaningful improvements over its predecessor. For buyers in this segment, it represents a smart, stylish and satisfying choice.

ICICI Bank is well-positioned to sustain sector leadership with a healthy growth outlook and robust asset quality, said Motilal Oswal Financial Services while naming the heavyweight private lender its top ‘Buy’ within the banking sector even after the stock tumbled 10% in six months.

The shares of ICICI Bank gained over 1% on Thursday to trade at Rs 1,258.40 apiece on NSE. The stock has however fallen over 1% in one week and 6% in 2026 so far. The stock has fallen more than 12% in one year.

Despite the muted returns, Motilal Oswal maintained its bullish call for the shares of ICICI Bank. The domestic brokerage said that the private lender is well-positioned to sustain its growth momentum while maintaining profitability benchmarks. It expects the bank to deliver a 16% loan CAGR over FY26-FY28, led by strong growth in business banking and PL, while the corporate segment is also expected to witness healthy traction, supported by working capital demand.

ICICI Bank’s liability franchise continues to remain best-in-class, supported by diversified acquisition engines and a rapidly expanding physical network, Motilal said. With a domestic CD ratio of 85.5% and LCR of 126%, the brokerage added that the bank is well placed to capitalize on growth opportunities compared to peers.

“ICICI Bank is likely to maintain cost leadership despite meaningful investments in technology, customer delivery, analytics, and talent. ICICIBC’s asset quality remains robust, supported by disciplined underwriting, continued monitoring, and strong recoveries, while the bank maintains a healthy contingency buffer (0.9% of loans). The bank currently does not face additional portfolio stress from the West Asia crisis or ECL transition. Credit costs are, thus, expected to remain contained, with GNPA/NNPA improving to ~1.4%/0.3% by FY28E,” Motilal said.

Motilal Oswal on ICICI Bank share price

The brokerage acknowledged that ICICI Bank shares have delivered tepid performance over the past year, reflecting broader derating across large banking stocks amid persistent FII selling. However, with operating performance holding strong and sustained market share gains across key lending segments, Motilal expects a gradual rerating.

It maintained its ‘Buy’ call on the stock, with a target price of Rs 1,750 apiece. This implies an upside potential of nearly 41% from the stock’s previous closing price of Rs 1,242 apiece on NSE.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The closure will be in effect from late July until early September

A vital road crossing the Somerset Levels is set to close for the entire summer holidays to enable the replacement of traffic lights. The A361 serves as a crucial link between Taunton and numerous Somerset villages, connecting with both the A39 to Street and Glastonbury and the A372 towards Langport.

As part of its continuing programme to upgrade traffic signals across the county, Somerset Council plans to close the A361 Main Road in the village of Burrowbridge, in order to replace the lights on the bridge spanning the River Parrett.

The closure will be in effect from late July until early September – covering the entire summer school holidays – and will require a considerable diversion for motorists.

The existing traffic signals on both approaches to the bridge are over 30 years old and are nearing the end of their operational lifespan – as was the case with the lights at the Dunster Steep junction near Minehead and on the A39 Westway in Street, both of which were recently upgraded.

Without replacement, the lights risk failing and causing significant disruption for both drivers and pedestrians on one of rural Somerset’s busiest roads.

Councillor Richard Wilkins, portfolio holder for highways and transport, said: “This is about replacing end of life equipment, so doing nothing is not an option.

“There is never a good time to do this. During the summer holidays when schools are not operating and the route is quieter is the most suitable time.”

The council’s highways team hosted a public drop-in event at Burrowbridge Coronation Hall on Tuesday (June 2), giving local residents further information about the proposed scheme.

Under the plans, a section of the existing kerbs near the bridge will be widened, creating additional space for pedestrians where the main road meets the River Parrett Trail long-distance walking route.

The existing signalised crossing on the western side of the bridge is set to be replaced and upgraded, while battered kerbs on the eastern approach to the bridge will also be repaired or renewed.

A lengthy stretch of the A361 will be resurfaced upon completion of the scheme, offering motorists a smoother drive through the village and on the approach to Burrow Mump (which is operated by the National Trust).

Work is due to start on June 29, under temporary traffic lights, with access maintained as usual in all directions.

During this initial phase, occasional closures will be necessary between 6pm and 6am, which will be publicised in advance.

Between July 23 and September, this entire section of the A361 will be shut in both directions continuously – though crossing facilities will remain in place and access for residents and businesses (including The King Alfred Inn) will be maintained at all times.

Mr Wilkins (who represents the neighbouring Curry Rivel and Langport division) added: “We know businesses and residents will be concerned about the potential disruption caused, and we will be ensuring signage is in place underlining that Burrowbridge businesses are open as usual during these works.

“Rest assured out team will be working at pace to get this work done and to minimise disruption as much as possible.”

For the duration of the road closure, traffic seeking to reach villages east of Burrowbridge will be redirected along the A361 to the Walford Cross junction, turning right onto the A38 through North Petherton, continuing through Bridgwater town centre before taking the A372 towards Westonzoyland and Othery.

Motorists heading to Taunton from the eastern side of Burrowbridge will follow the same diversion in reverse, adding up to 21 miles to journeys in each direction.

While smaller vehicles may be able to navigate local roads for a shorter route, these alternatives will not be officially promoted as part of any formal diversion.