⚡️ Delhi’s power surge

Good morning. It’s a shorter NL today so no excuses to get into it.

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• ⚡️ Delhi’s Power Surge

• 🏭️ India moves to tighten the reins on foreign ownership

• 🧑‍🍳 What else is cookin’?

MARKETS

🇮🇳 India

• Indian stocks declined for a second day as profit-taking and weakness in IT and FMCG weighed on sentiment. Broader indices outperformed, with smallcap and midcap segments posting gains, while realty and PSU banks led sectoral advances.

🌍️ International

• US stocks posted modest gains despite early volatility after Moody’s downgraded the US credit rating. Investors looked past the downgrade as Treasury yields eased later in the session, with UnitedHealth rebounding and tech shares mixed.

TECHNOLOGY

⚡️ Delhi’s Power Surge

As the mercury rises in the capital, so too does the demand for electricity. On May 19, Delhi recorded a scorching power peak of 7265 MW, the highest for the May 1–19 window in the last four years. This figure surpassed previous years’ highs—7174 MW in 2024, 5953 MW in 2023, and 7070 MW in 2022—signaling both the intensifying summer and the city’s growing energy needs.

This record-breaking spike came at 3:29 PM, a time when air conditioners and cooling systems across homes and offices were likely in overdrive. But despite the heat, Delhi's power infrastructure held steady.

Power distribution companies (discoms) rose to the challenge. BSES discoms—BRPL and BYPL—handled 3227 MW and 1596 MW respectively in their zones, while Tata Power Delhi Distribution Limited (TPDDL) reported its highest seasonal peak of 2136 MW, managing it without any supply disruptions or strain on the grid.

How did they do it?

The key lies in strategic foresight and robust planning. TPDDL credited its uninterrupted service to a layered power procurement strategy: long-term bilateral agreements, reserve shutdown capacity, and real-time trading on the power exchange. Similarly, BSES emphasized the use of advanced technology for demand forecasting and support from interstate banking arrangements to ensure consistent supply to its over 50 lakh consumers across South, West, East, and Central Delhi.

As Delhi prepares for even hotter days ahead, the city’s energy resilience will continue to be tested. For now, though, the lights—and air conditioners—stay on.

Read more: Economic Times

FDI

🏭️ India moves to tighten the reins on foreign ownership

In a move poised to reshape the investment landscape, India is set to introduce stricter regulations for companies with foreign ownership, signaling a clampdown on indirect control structures used to navigate around existing foreign direct investment (FDI) rules.

According to government sources, the proposed changes aim to enhance oversight of foreign-owned and controlled entities (FOCEs)—a newly defined category that would include Indian firms with indirect foreign investment or foreign control, even if they appear domestic on paper.

The core principle guiding this shift: what cannot be done directly should not be allowed indirectly. This reflects growing concern that layered corporate structures and offshore investment vehicles are being used to sidestep sectoral caps and FDI restrictions.

Under the proposed framework, even internal share transfers or corporate restructurings involving a FOCE could trigger FDI compliance obligations. These would include mandatory reporting, adherence to sector-specific foreign investment caps, and conducting transactions at fair market value.

Sectors likely to feel the immediate impact include e-commerce and pharmaceuticals, where foreign capital often flows through complex structures. The rules are being drafted by the Finance Ministry in consultation with the Reserve Bank of India (RBI), which has reportedly signaled its support.

This policy rethink also aligns with broader geopolitical concerns. Since 2020, India has required government approval for FDI from countries sharing a land border, including China. By targeting indirect routes of control, the FOCE classification could make it more difficult for such investors to access regulated sectors through backdoor methods.

While the new rules are still under final discussion, their direction is clear: India is working to close loopholes and reinforce the integrity of its FDI regime, ensuring that foreign influence—direct or indirect—remains within the boundaries of national policy.

Read more: Economic Times

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• Rasna acquires Jumpin from Hershey's to expand into ready-to-drink category.

• Apple partner Hon Hai injects $1.5 billion into India unit.

• A Brexit reset deal underway: A TBC agreement with a lot still to be worked out with EU

• Denzel Washington Surprised With Honorary Palme d’Or at Cannes.