Newsletter
Apple's rare bet, Insulin win, and Zomato flies high.
š Morning, folks!
Markets shook off a jittery start on Wednesday and ended the day in the green. After a sluggish open, bulls found their footing, helped by steady foreign inflows, cooling volatility, and some IT buying.
Nifty and Sensex ended slightly higher, joined by gains in broader indices.
Sector check: Metals and Pharma lagged, but Realty, Auto, IT, PSU Banks, and Media flexed up to 1.3%.
š” Spotlight: in a move that could set the tone for future trade relations, President Trump hinted that Indiaās upcoming trade deal might follow the same playbook as Indonesiaās.
Earlier this week, the US unveiled a new agreement with Indonesia: a 19% tariff on certain imports in exchange for increased American exports, part of Trumpās broader effort to rebalance trade terms and shrink the US deficit.
Coincidentally (or not), a delegation from Indiaās Commerce Ministry is currently in Washington for a 4-day negotiation round, wrapping up Thursday.
With Trump drawing comparisons, markets are watching closely to see whether India agrees to a similar give-and-take deal.
1 Big thing: ITC Hotels checks in strong in Q1 šØ
ITC Hotels posted a strong summer quarter, boosted by rising domestic travel, weddings, and post-COVID momentum.
This marks the companyās third earnings report since it spun off from ITC Ltd, and things are moving in the right direction.
By the numbers:
- Revenue up 15% at ā¹815 crore YoY
- Net profit up 54% at ā¹133 crore YoY
- Margins at 30% vs 29.03% last year
The deets: business is picking up fast, both revenue and profits saw double-digit growth. The hotel chain now runs 140 properties with 13,000 keys, and is aiming for 200+ hotels and 18,000+ keys by 2030, with a big push toward managed properties.
Zoom out: ITC Hotelsā performance mirrors the broader rebound in Indiaās hotel industry.
Domestic tourism, MICE (Meetings, Incentives, Conferences, and Exhibitions), and weddings are fueling demand across metros and Tier-2 cities. As a result, most hotel chains are reporting strong revenue growth and improving margins.
With better air connectivity, rising incomes, and global players doubling down on India, the hotel industry is projected to grow 8ā10% annually. Most chains, including ITC, are shifting toward managed/franchise models to scale faster and boost margins.
2. Apple bets big on rare earths with $500 million investment š§²
Apple is investing $500 million in MP Materials, the only company currently operating a rare earths mine in the US, in a bid to secure its magnet supply chain.
Rare earths are a group of 17 metals that make high-powered magnets, used in everything from EVs and wind turbines to smartphones and fighter jets.
MP recently signed a multi-billion dollar deal with the US Department of Defense to scale up domestic magnet production. Apple will now source made-in-America magnets from MPās Texas facility, the companyās first major supply agreement since the government stepped in to fund it.
MP already mines and processes rare earths. By the end of this year, it expects to begin full-scale magnet production in Texas, while also building a second factory and a recycling plant near its California mine in Mountain Pass.
Why it matters: rare earth magnets have long been a pressure point in US-China trade relations. A deal in Geneva this June saw China agree to resume magnet exports in exchange for lighter US tech restrictions. Still, the US is pushing hard to reduce its dependence on China.
The impact: MPās stock has doubled in just four trading sessions, jumping 50% after the Pentagonās $400M investment announcement.
Where India stands: weāve got the rare earths but not the processing capabilities. IREL (India) Ltd is now tasked with scaling local output, and new exploration projects are underway in Andhra Pradesh and Odisha. The clockās ticking to close the gap.
3. Dixon expands its lens with Q Tech acquisition š¤
Dixon Technologies shares were up nearly 2% after it inked a deal to acquire a 51% stake in Q Tech India from its parent company Q Technology Company Limited.
Q Tech India produces high-tech components, cameras and fingerprint sensors that power everything from phones and IoT gadgets to cars.
Whatās happening: the deal will help Dixon enhance its capabilities in critical components by gaining access to technology, high precision manufacturing, and a strong talent pool.
Why it matters: the partnership aims to boost manufacturing, sale and distribution of camera and fingerprint modules for mobile handsets, internet of things and automotive applications.
Zoom out: as India ramps up its efforts to become a global electronics manufacturing hub under the Production Linked Incentive scheme, Dixonās acquisition reflects a broader trend of Indian players strengthening their upstream supply chains.
While we are on deals,
Schneider eyes full India control ā”
French giant Schneider may buy Temasekās 35% stake in its India arm for $1Billion.
Schneider, one of Franceās oldest industrial names, has moved beyond electrical hardware. Itās now a major player in automation and smart systems for data centers, buildings, and factories and Indiaās a key growth market in that playbook.
The deal could value the joint venture at $5 billion, including debt.
Flashback: the joint venture was born in 2020 when Schneider merged its Indian low-voltage and automation business with L&Tās electrical and automation unit. Since then, Schneider has owned 65%, and Temasek the rest.
The why: Temasek has been looking to exit the venture, either by selling to Schneider, another buyer, or even exploring an IPO route. But a direct sale to the parent now looks most likely.
4. Lamtuf IPO to debut in niche composite sector š
Industrial laminates maker Lamtuf is hitting the markets with a fresh issue + OFS combo.
Lamtuf makes tough, layered materials that go into things like trains, cars, and defence equipment to make them stronger and more durable.
Worth noting: Lamtuf will be the first company in Indiaās industrial laminates and composites manufacturing space to go public.
The deets: the IPO includes a fresh issue of 1 crore shares and an Offer-For-Sale of 20 lakh shares by existing promoters.
Zoom out: in India, the industrial laminates and composite materials sector is still a niche space, but itās gaining traction fast. The domestic market for industrial laminates is estimated to be worth ā¹3,000-3,500 crore, driven by demand from electricals, railways, and auto components.
Most players in the space are either private or MSMEs, with no major listed companies offering the same product mix as Lamtuf, making its IPO one of the first of its kind in this segment.
5. Stocks that kept us interested š
1. Bioconās insulin game just got bigger š
Biocon shares rose after its arm Biocon Biologics got approval from the United States Food & Drug Administration to launch Insulin Aspart in the US, which the company brands as Kirsty.
Kirsty is a rapid-acting insulin analog that helps manage blood sugar in both adults and children with diabetes.
The deets: the FDAās green light for Kirsty adds another important insulin product to Biocon Biologicsā offerings. Kirsty has been available in Europe and Canada since 2022, indicating a proven track record outside the demanding US market.
Zoom out: the US diabetes market presents a substantial opportunity for Biocon Biologics. With 38.4 million people living with diabetes, representing nearly 11.6% of the American population, Kirsty is poised to address a significant unmet need for affordable treatment options.
2. Export order ignites Premier Explosives rally š„
Premier Explosives shares rose after the company bagged a nearly ā¹105 crore export order.
Premier Explosives manufactures industrial explosives and detonators used in mining, infrastructure, defence, and space applications.
The deets: the company has secured an export order from an international client for the manufacture and supply of defence-grade explosives. The order will be executed over the next 12 months.
Premier Explosives is also a supplier to major missile programs including Akash, Astra, and LSRAM.
Zoom out: as India ramps up its defence exports under the Atmanirbhar Bharat and āMake-in -Indiaā push, companies like Premier Explosives stand to benefit from rising global demand for cost-effective, reliable defence supplies.
6. Story in data: Option overload š
The National Stock Exchange (NSE) clocked a staggering 125.1 billion derivative contracts in 2024, more than the next 7 global exchanges combined. Even BSE ranked second globally with 30.8 billion contracts.
This explosion in volumes is being fueled by rising retail participation, easy access through mobile brokers, and the dominance of index options like Nifty and Bank Nifty.
Meanwhile, legacy giants like the CME Group, Intercontinental Exchange, and NASDAQ are far behind.
For a market once considered fringe, Indiaās derivatives ecosystem is now setting the pace for the world.
And itās only getting started.
What else are we snackinā šæ
š Passive punch: Jio BlackRock got SEBI approval to launch four new index-based mutual fund schemes.
š©ļø Jet set go: Deepinder Goyal-backed LAT Aerospace parks its new Bombardier Global jet at Delhi airportās VIP bay.
š« Ola roadblock: Maharashtra orders closure of Ola Electric showrooms running without valid trade certificates.
Thatās a wrap! Donāt let the weekday blues get to you.
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