Newsletter
Wholesale inflation eases, acquisition spree picks up & Global tie-ups rise
🗓 Morning, folks!
It was a choppy Tuesday on the street as markets ended lower after a volatile session.
Both Nifty and Sensex dropped around 0.3%, with the broader indices underperforming.
Weakness was broad-based, pharma, consumer durables, and metal stocks fell the most, sliding nearly 1%.
💡 Spotlight: Wholesale inflation cools further in September 📦
India’s WPI inflation eased to just 0.13% in September, down from 0.52% in August. This signals that price pressures across the supply chain remain largely under control.
The moderation came even as food, manufacturing, and transport equipment prices saw mild upticks, while fuel and power costs stayed almost flat. Meanwhile, the manufacturing sector, which makes up the biggest chunk of the index, rose a modest 0.21%.
Policymakers now have more room to breathe as India’s factory and energy prices find their balance.
Let’s hit it!
1 Big Thing: Google’s $15B bet puts Andhra on the AI map 💡
Google announced a $15 billion investment to build a 1GW data centre and AI hub in Andhra Pradesh, its biggest AI facility outside the US.
What’s happening: this investment is said to be Google’s largest investment in India to date and will roll out over the next five years. The upcoming facility will integrate advanced AI infrastructure, large-scale energy systems and an expanded fibre-optic network.
The project also includes building a new undersea internet cable hub on India’s eastern coast in Visakhapatnam. These cables will connect India directly to Google’s vast global network, which already spans more than two million miles around the world.
Note: the search giant is building this AI hub in collaboration with AdaniConneX and Airtel. It says it will be built with the same infrastructure that powers Google products like Search, Workspace, and YouTube.
Why it matters: the new hub will make India’s internet faster and more reliable. By adding new routes to support rising data use, it will ease pressure on existing networks in Mumbai and Chennai and keep connections strong even during peak usage.
2. IREDA powers up with 41% profit jump in Q2 ⚡
IREDA’s September quarter earnings saw a clean sweep across revenue, profit, and asset quality. The stock gained more than 2% following the results.
By the numbers:
- Revenue up 26.2% YoY to ₹2,057 crore vs ₹1,629.6 crore
- Net profit jumped 41.5% YoY to ₹549 crore
The how: the company is also growing its loan book and improving asset quality.
As India pushes toward 500 GW of renewable capacity by 2030, projects like the Leh solar cluster, Gujarat’s hybrid power parks, and upcoming green hydrogen plants in Rajasthan will need billions in financing.
With its expanding loan book and cleaner balance sheet, IREDA is poised to bankroll much of this growth, solidifying its place in India’s clean energy revolution.
Zoom out: India now boasts over 180 GW of installed renewable capacity & investments are pouring in with nearly $16.5 billion in FY24 alone.
3. Dubai-based bank eyeing a majority stake in RBL Bank 🏦
Emirates National Bank of Dubai (NBD) is in advanced talks to acquire a majority stake in RBL Bank for approximately $3 billion.
RBL is a private sector lender established in 1943. While Emirates NBD is one of the largest banking groups in the MENAT (Middle East, Africa, and Turkiye) region by assets.
The deets: the acquisition will first happen through a ₹15,000 crore investment. Emirates first will buy new shares directly from RBL. Eventually they’ll also make an open offer to the public to buy an additional 26% stake.
The acquisition gives Emirates NBD direct access to RBL’s customer base of 15.1 million which would help strengthen its presence in overseas markets like India.
RBL’s lack of a dominant promoter group and its recent financial strain make it a viable takeover target for Emirates NBD. It would also open up doors for more foreign inflows in this sector.
While we are on acquisitions,
Lodha Developers acquired a 100% stake in Chaitanya Bilva for ₹500 crore, making CBPL its wholly-owned subsidiary.
Chaitanya Bilva Private operates in the development and construction of residential real estate projects.
The deets: it also gives Lodha direct access to CBPL’s prime land parcel of 8.37 acres in Bengaluru. The move is a part of planned strategy by Lodha Developers to enhance growth in Tier 1 cities.
Zoom out: the real estate sector in India is poised to reach a market valuation of $1 trillion by 2030. This would largely be driven by the commercial and retail segments. According to reports, India would need 25 million more units of affordable housing to meet its growing urban population’s demand.
4. US-based Tryfacta plans $150 million IPO at GIFT City 🌍
US-based IT and staffing firm Tryfacta is reportedly gearing up to file draft papers for a $100-150 million IPO by the end of this month. This will be one of the first few listings planned on GIFT City’s international exchanges.
GIFT City’s international exchanges let companies raise funds and list shares in foreign currencies from India.
Tryfacta is headquartered in California & provides IT services, tech consulting, and payroll solutions to US government and institutional clients.
The deets: Tryfacta will list on either India INX or NSE IX, the two exchanges operating in GIFT City.
Notably, the only other company to file for a GIFT City IPO so far is Mumbai-based XED, which did so in August.
Zoom out: the IPO planning shows international firms are ready to list and raise capital from Indian soil. If successful, it could open the door for more cross-border tech and service firms to tap Indian investors while staying globally connected.
5. Chara raises ₹52 crore to build rare earth free motors 🚀
Chara Technologies has raised ₹52 crore, in Series A funding led by Arkam Ventures.
Chara Technologies develops rare-earth-free electric motors and controllers, offering efficient, cost-effective, and sustainable solutions for EVs and industrial applications.
What’s brewing: the latest funding is to set up a new factory in Bengaluru, with a testing and validation facility. This will help boost its production capacity fivefold, from 20,000 to 100,000 units a year.
Why it matters: China currently supplies over 80% of the world’s rare-earth elements, and new export restrictions are stirring fresh supply chain concerns.
As India accelerates its shift toward electric mobility, companies like Chara are stepping up to build critical components locally.
While, we are on fundraises,
Edtech company SpeakX has raised $16 million in a new funding round by WestBridge Capital.
SpeakX operates on a subscription-based model that allows users to access interactive English-speaking lessons designed for children and young learners.
Breaking it down: the company aims to build an English learning app that uses voice and AI to help users improve conversational English.
This also marks the company’s first fundraise since its 2023 pivot from YellowClass, a children’s learning platform launched during the pandemic.
6. Stocks that kept us interested
1. India-Israel team up to advance defence tech & exports 🤝
Paras Defence shares were in focus after the company signed a deal with Israel-based Cielo Inertial Solutions.
CIELO makes advanced navigation systems that use sensors and gyros to track direction, movement, and position without relying on GPS.
The deets: Paras brings experience in Indian defence manufacturing and the ability to produce advanced technology locally. CIELO provides cutting-edge navigation sensors, and together they will develop, market, and make high-tech motion-sensing solutions in India.
Big theme: in FY24, Israel was the biggest buyer of India’s defence products, spending $123 million, followed by the US at $53 million.
Israel mainly imports drones, surveillance gear, and other advanced equipment. India is also focusing on making more of its defence products at home. Defence exports hit a record $2 billion in 2024, with a goal of $5 billion by 2025.
2. Cochin Shipyard gains with ₹2,000 cr European vessel order 🚢
Cochin Shipyard gained over 1% after the company announced a ₹2,000 crore mega order from a leading European client.
The deets: the order pertains to building next-gen cargo vessels. It also covers the design and construction of six LNG-powered feeder container ships, each with a capacity of around 1,700 TEUs. These eco-friendly vessels will help reduce emissions in short-sea shipping routes. This is a major step towards cleaner maritime logistics.
A 1,700 TEU capacity means each ship can carry about 1,700 standard shipping containers, the big metal boxes used to transport goods worldwide.
Zoom out: under the government’s Green Shipping Initiative in the Maritime India Vision 2030, India aims to become a hub for sustainable shipbuilding.
What else are we snackin’ 🍿
🚀 Deal boost: OpenAI partnered with Broadcom to build its first in-house AI chips as demand surges for ChatGPT, boosting Broadcom shares over 10%.
💼 Mega win: Infosys clinched a ₹14,000 crore NHS deal to build a workforce management platform for England and Wales.
🪙 Silver storm: silver prices soared to an all-time high as a London supply squeeze fuels chaos in precious metal markets.
That’s a wrap! Don’t let the weekday blues get to you.
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