Newsletter
L&T’s Telangana bet, Pharma feels tariff heat, and EV deals roll in.
🗓 Morning, folks! It’s a new week.
After last week’s market bloodbath, Dalal Street could use a breather. Here’s hoping this week brings calmer waters and fewer bruises.
💡 Spotlight: Pharma stocks catch Trump flu 📉
Indian pharma stocks tanked after US President Donald Trump slapped 100% tariffs on imported branded and patented medicines.
Biocon fell 5%, Sun Pharma 3%, while Lupin slid 2%. The Nifty Pharma index sank more than 2%.
However, generic drugs are exempt which is a relief for many Indian exporters. But the sword hangs over companies without US plants, as Trump’s rule spares only those “building” factories in America. Investors fear fresh compliance costs and shifting supply chains, leaving the sector jittery.
The US makes up a little over one-third of India’s pharma exports, driven largely by low-cost generic drugs.
Let’s hit it!
1 Big thing: India eyes early conclusion of US trade talks 🤝
India, US have agreed to continue discussions to finalise a beneficial trade agreement which both nations aim to achieve early.
This comes after a delegation led by Commerce and Industries Minister Piyush Goyal visited the US from September 22–24. The trip happened as India navigates 50% tariffs imposed by President Trump on its exports.
Background: six formal rounds have happened so far, but the August round in New Delhi was scrapped amid a tariff spat.
What’s going on: experts see scope for early wins with tariff cuts on some goods, easier visa norms for Indian IT, and broader market access for US agri products. But uncertainty looms.
Trump’s new protectionist streak means pharma and textiles could stay under pressure, and analysts doubt steep tariffs will vanish anytime soon. Instead, small step-by-step relief looks more likely.
Current situation: the talks come just days after Trump slapped 100% tariffs on branded and patented medicines, rattling Indian pharma stocks. While generic drugs were spared, the move highlighted the risks Indian exporters face.
Add in the $100,000 visa petition fee and steep duties on Indian imports, and it’s clear India’s early wrap-up pitch is about damage control.
2. Exide Industries invest ₹80 crore to propel India’s EV market 🔋
Exide Industries has invested ₹80 crore in a lithium-ion cell plant in Bengaluru.
The Kolkata-based company manufacturers and sells lead acid storage batteries required in sectors like telecom, infrastructure, and railways. The company also provides end-to-end services of installation, operation, and maintenance.
The deets: the company is making an investment in its arm Exide Energy Solutions as equity share capital. This will take the company’s total investment in EESL to ₹3,882 crore.
Why it matters: lithium-ion batteries power most of the electric vehicles and consumer electronics today. Investments like these will help India achieve the projected capacity of 150 Gwh by 2030.
Big theme: India’s lithium-ion battery market is gearing up for explosive growth. Valued at around $3.2 billion in 2024, it could touch $9.5 billion by 2033, with annual demand rising from just 10.8 GWh in 2022 to 160+ GWh by 2030.
3. TVS Motors buys Italy-based firm to set up global design centre 🇮🇹
TVS Motor has announced the acquisition of Italy-based Engines Engineering for around ₹50 crore.
Engines Engineering is an Italian firm specialising in motorcycle and small vehicle design, prototyping, testing, and full-cycle development services.
The deets: the deal is a part of its plan to establish a global Centre of Excellence (CoE) in Bologna, Italy.
In simple terms, a Global Centre of Excellence is a dedicated unit within an organisation that unites experts, tools, and best practices to set high standards, drive innovation, and share knowledge across the company worldwide.
The company will acquire 100% ownership of EE, the deal covers 1 million equity shares at €5.05 per share.
The CoE will act as a concept-to-product innovation hub, combining Engines Engineering’s expertise with TVS Motor’s global R&D capabilities. This integration will strengthen TVS’s premium vehicle pipeline and support TVS-owned Norton Motorcycles in developing future-ready designs.
4. L&T gains as Telangana takes over ₹15,000 cr metro deal 🚇
L&T shares climbed over 2% to a 9-month high after the Telangana government agreed to take over Phase-I of the Hyderabad Metro. The state will pay ₹2,000 crore to L&T for its equity and assume the project’s ₹13,000 crore debt.
Context: the Hyderabad Metro is India’s largest public-private partnership in urban transport.
Earlier this year, fares were hiked by 20% to shore up revenue. With Phase-2 awaiting the Centre’s nod, the state’s control is expected to fast-track expansion.
What’s the deal: for L&T, this is a welcome exit from a loss-making venture. The metro had been bleeding with operational and accumulated losses, and the company had been looking to divest its stake.
By transferring it to the state, L&T not only recoups its equity investment but also wipes out a ₹13,000 crore debt load.
4. MARKET BITES THIS WEEK
India’s health-aware professionals are biologically burning out, with stress, deficiencies, and lifestyle risks quietly eroding the country’s demographic dividend.
Long hours, endless screens, and pressure to always be “on” are leaving them underslept and overstressed.
Nearly half carry cardiovascular red flags, while two-thirds are Vitamin D deficient despite popping supplements.
Women face anemia and PCOS at alarming rates, while men silently stack up liver and cholesterol risks. Stress cuts across income brackets, with junior staff battling financial anxiety and executives buckling under leadership pressure.
Add caffeine, nicotine, and alcohol as coping tools, and the picture sharpens: a workforce biologically burning out.
If this trajectory continues, India’s so-called demographic dividend may turn into a health liability.
Full story here
6. Stocks that kept us interested
1. RITES bags $18 million South Africa loco deal 🚂
RITES bagged a $18 million order from Talis Logistics, South Africa to supply overhauled locomotives. The stock jumped 6% at one point after the news broke.
Overhauled locomotives are old trains that have been repaired, upgraded, and made fit to run like new again.
The deets: the order covers in-service cape gauge ALCO diesel-electric locomotives, renewed and ready to roll.
In-service cape gauge ALCO diesel-electric locomotives are used train engines, built for South Africa’s narrower tracks, that run on diesel fuel to power electric motors.
Why it matters: this is a part of a bigger story of how India is becoming Africa’s go-to rail partner. From locomotives to coaches, Indian firms are shipping out railway muscle. Just last year, India announced plans to export 150 locomotives to Guinea in a ₹3,000+ crore deal.
2. Ceigall bags order worth ₹509 crore in Punjab 🛣️
Ceigall India received an order worth ₹509 crore from the Greater Mohali Area Development Authority (GMADA) to construct roads in Mohali. The contract will be a joint venture with JSP projects.
Ceigall India is an infrastructure company that specialises in the construction of overpasses, roadways, flyovers etc.
The deets: the contract is to be executed in 24 months. Ceigall will have 80% stake in the project while JSP will have the rest 20%.
Big picture: the news comes at an interesting time in the construction space as the Indian government is looking to redefine the sector with initiatives like the Bharatmala Pariyojana and other corridors.
The road construction market is also growing at the rate of 10.2% and is poised to reach a valuation of $341.3 billion by 2033.
What else are we snackin’ 🍿
📉 Pink slips: Germany’s Robert Bosch will cut 13,000 jobs by 2030 as auto market slowdown and competition force restructuring.
⚖️ Steel deal: after years of tug-of-war, the Supreme Court has greenlit JSW Steel’s ₹19,700 crore takeover of Bhushan Power & Steel, brushing aside creditor protests and stamping the committee’s call as final.
💳 Prime crime: Amazon will pay $2.5 billion in a settlement with the Federal Trade Commission, accused of tricking customers into Prime signups and complicating cancellations.
That’s a wrap! Don’t let the Monday blues get to you.
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