Government ❤️ startups

Good morning. This weekend Novak Djokovic reached a pinnacle in his career by winning the Olympics men’s singles gold medal.

With this victory DjokerNole completed his collection of major trophies, including all four Grand Slam titles, the ATP Finals, and the Davis Cup.

A fan or not, you have to admit the man is lethal 🥇 🐐 

- Ruchirr Sharma & Shatakshi Sharmaa

TABLE OF CONTENTS

• Government ❤️ startups

• 📱 Apple's record-breaking quarter in India

• 🗞️ Bite-sized summaries

  • 📉 Dramatic drop for chip stocks

  • 🏗️ Semiconductor construction

  • 🧑‍🚀 Indians in space

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• BSE Sensex and NSE Nifty50 closed lower due to weak global cues. Sensex fell 1.08% to 80,982, while Nifty dropped 1.17% to 24,717. Most stocks declined, with auto and metals hit hardest. Pharma stocks showed gains. Broader indices and most sectors also ended in the red.

🌍️ International

• U.S. stocks fell sharply as weak job growth data fuelled recession fears. The Nasdaq entered correction territory, dropping over 10% from its July high. Expectations for a Fed rate cut in September surged. Amazon and Intel declined after disappointing forecasts. Defensive sectors advanced while consumer discretionary led losses.

STARTUP ECOSYSTEM

Government ❤️ startups

Over the years, being a startup founder has become increasingly cool in India, thanks in large part to the Indian government's proactive support.

Why do we say that?

• Over the past five years, the government has empowered more than 10,000 technology startups through various schemes, disbursing a total of ₹580 Cr. in funding.

• The Ministry of Electronics and Information Technology (MeitY) alone has supported over 3,600 tech startups with ₹212Cr..

• Key initiatives like the Fund of Funds for Startups, Startup India Seed Fund Scheme, and Credit Guarantee Scheme for Startups have facilitated investments and loans for startups.

• As a result, India now boasts over 1.43 lakh recognised startups.

MeitY's specific programmes have further bolstered the ecosystem:

1. TIDE 2.0 supports higher learning institutes and R&D organisations

2. SAMRIDH provides accelerator services and matched funding

3. NGIS focuses on tech startups in Tier-2/3 cities

4. 42 Centres of Excellence have been established to boost innovation

Additionally, entrepreneur parks set up in various locations promote innovation in electronic systems and design manufacturing.

Overall: These initiatives demonstrate the government's commitment to fostering a robust startup ecosystem, particularly in the technology sector, across different regions of India. 

The focus on Tier-2/3 cities and specialised areas like medical electronics and chip design highlights efforts to create a diverse and inclusive startup landscape.

Read more: Investing.com

ECONOMY

📱 Apple's record-breaking quarter in India

Despite a 2% decline in overall smartphone shipments in India, Apple has reported a record-breaking quarterly revenue for the third quarter of 2024. 

The reason for this success? Strong sales of iPhones and Mac computers.

Here’s the tea: 

• Apple CEO Tim Cook announced that the company has set quarterly revenue records in over two dozen countries, including India. This performance comes amidst a seasonal slump and heatwave-induced slowdown in the Indian market.

• Globally, Apple achieved a new June quarter revenue record of $85.8B, a 5% year-on-year increase. The company's services revenue also hit an all-time high, growing by 14%.

• In India, Apple's success extends beyond iPhones, with Mac sales showing robust growth, particularly during the back-to-school promotion. The company now holds the third position in India's smartphone market by value, with a 16.3% share.

Overall: Apple's strong performance in India contrasts with a 6.5% year-on-year revenue decline in China.

However, CEO Cook remains confident about long-term opportunities in the Chinese market while highlighting India’s growing importance as a key market for premium tech products.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

📉 Dramatic drop for chip stocks - Intel's shares plunged nearly 30% following job cuts, dividend cancellation, and disappointing earnings announcements. This triggered a global semiconductor stock selloff, affecting major Asian players like Samsung and TSMC, European firms such as ASML, and U.S. companies including Nvidia. The selloff extends to big tech stocks, with most of the "magnificent seven" experiencing declines. This turmoil reflects growing investor concerns about the profitability of AI investments and the impact of potential U.S. trade restrictions on semiconductor technology. The market reaction highlights the tech industry's current volatility as companies grapple with AI development costs and uncertain future returns.

🏗️ Semiconductor construction - Tata Electronics has initiated construction of a ₹27,000Cr. semiconductor facility in Assam's Jagiroad, set to be operational by 2025. The project is expected to create 27,000 jobs, including 15,000 direct positions. Tata Group chairman N Chandrasekaran announced that 1,000 people from Assam have already been employed, with plans to expand and attract semiconductor ecosystem companies. Assam's Chief Minister Himanta Biswa Sarma fully supported the facility's establishment. Additionally, the state signed an MoU with Tata Group firms for hotel infrastructure development in Kaziranga, including a new Taj Resort and Spa.

🧑‍🚀 Indians in space - NASA Chief Bill Nelson congratulated ISRO on selecting astronauts for an upcoming ISS mission, highlighting the growing US-India space collaboration. ISRO's Human Space Flight Centre signed an agreement with Axiom Space for the Axiom-4 mission, marking India's first manned ISS flight. Group Captain Shubhanshu Shukla was chosen as the prime astronaut, with Group Captain Prasanth Balakrishnan Nair as backup. Shukla, a fighter pilot with 2,000 hours of experience, will be the first Indian in space in 40 years. This milestone follows Prime Minister Modi's commitment to send an Indian astronaut to the ISS, strengthening US-India space ties.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• With smugglers and front companies, China is skirting US AI bans.

• Record 7.3 crore I-T returns filed till July 31.

• Forex reserves drop $3.47B to $667B.

• Govt sanctions Rs 990 crore for 10-storey Civil Hospital.

• Airtel & Jio may invest $2 bn in 5G gear to boost mobile broadband.

• Employers in the US added just 114,000 jobs in July as unemployment jumped to 4.3%.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Olympics updates:

  • View the complete medal tally here.

  • Denmark’s Viktor Axelsen beats India’s Lakshya Sen 22-20, 21-14 to end Lakshya Sen’s sensational Olympic run.

  • China’s Li Qian beats India’s Lovlina Borgohain 4-1 in the Women’s Middleweight Boxing quarterfinal.

  • Mexico’s Marco Verde beats India’s Nishant Dev 4-1 in the Men’s Welterweight Boxing quarterfinal.

  • Indian Men’s Hockey beat team GB 4-2 in penalties in the quarterfinal round.