🤑 How Jane Street made bank off India

Good morning. Apologies for the late edition today!

Hope you are having a great day 🙏 

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🤑 How Jane Street made ₹735 Cr in a day

• 💰️ Indian DeepTech gets more funding

• 🗞️ Bite-sized summaries

  • 🇺🇸 A deal coming to fruition

  • 💵 9.28T economy

• 🧑‍🍳 What else is cookin’?

DALAL STREET

🤑 How Jane Street made ₹735 Cr in a day

On January 17, 2024, US-based trading giant Jane Street pulled off a jaw-dropping one-day profit of ₹735 crore in Indian markets. But what looked like sharp trading turned out to be, according to SEBI, a textbook case of market manipulation.

Let’s break it down.

• The Bank Nifty index opened sharply lower that day, spooked by HDFC Bank’s disappointing results.

• Jane Street stepped in aggressively, buying ₹4,370 crore worth of Bank Nifty stocks and futures in what SEBI calls “Patch I.” This sudden buying propped up prices and gave the illusion of a market rebound.

• Retail and institutional traders took the bait.

• Then came “Patch II,” where Jane Street flipped the script - dumping those same stocks, driving prices down again.

• The kicker? They’d already bet big on the fall using options - loading up on cheap Puts (bets the market would fall) and selling pricey Calls (bets it would rise).

• Their equity losses were easily covered by massive options gains.

• Net profit: ₹735 crore. In. One. Day.

Turns out, they ran this playbook 15 out of 18 times SEBI looked into. Even after warnings, they didn’t stop. The regulator hit back last week, banning Jane Street and freezing ₹4,840 crore of alleged illicit profits.

Why it matters: This isn’t just about one firm. It exposes cracks in India’s fast-growing derivatives market, where hyper-automated global giants can outplay slower retail investors. SEBI’s crackdown is both a warning and a wake-up call - India’s markets are evolving fast, and the rulebook needs to keep up.

Read more: Times of India

GOVERNMENT

💰️ Indian DeepTech gets more funding

India’s deep tech dreams just got a serious top-up.

At IIT Madras’ Sangam 2025 in Bengaluru, Union Minister Piyush Goyal announced a second tranche of ₹10,000 crore to fuel innovation, R&D, and bleeding-edge technologies.

The goal? To supercharge India's growing tech and startup ecosystem.

This fund isn’t just new money - it’s a continuation of India’s flagship Fund of Funds initiative, originally launched in 2016. The first ₹10,000 crore laid the foundation. This second round is about accelerating impact: enabling startups to absorb next-gen tech and convert it into scalable, real-world solutions.

Why now?

• The country is already the world’s third-largest startup ecosystem, trailing only the US and China.

• With one of the youngest populations globally and an increasingly tech-savvy middle class, India’s potential to leapfrog into a deep tech powerhouse is real.

Goyal tied this funding to a broader economic vision: “We’ve gone from the 11th to the 5th largest economy since 2014 - and we’re gunning for #3 by 2027.”

He believes frontier tech will be central to that rise, and he’s counting on institutions like IIT Madras and its 60,000-strong alumni network to lead the charge.

The bottom line: India is signaling to the world that it's not just building apps; it’s building the future. With the right guardrails and execution, this could be the moment India moves from being a startup hub to a deep tech superpower.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🇺🇸 A deal coming to fruition - India and the U.S. are poised to finalize a mini trade deal within the next 24–48 hours, according to CNBC-TV18. Talks on this smaller agreement have concluded, with average tariffs expected at 10%. Negotiations for a broader, long-term trade pact are set to begin after July 9. The mini deal signals progress in bilateral ties and could pave the way for deeper economic cooperation. More details are expected as the situation evolves.

💵 9.28T economy - A new PwC India report estimates that India could generate $9.82 trillion in economic value by 2035 by shifting from traditional sectors to domain-driven models focused on core human and industrial needs—like how we live, move, care, and build. This approach encourages cross-sector collaboration and innovation in areas such as manufacturing, construction, and healthcare. Key drivers include digital innovation, automation, and sustainability. PwC outlines a structured framework to guide businesses through this shift. The report sees this as crucial for India’s ambition to become a $30 trillion economy by 2047, emphasizing resilience and ecosystem partnerships.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Nvidia surges past Apple and Microsoft to become most valuable firm globally.

• Indians can now get UAE's Golden Visa without trade license, property purchase.

• Trump wants the world to squeeze out China. He's starting with Vietnam.

• Eternal appoints Aditya Mangla as food delivery CEO.

• Madhya Pradesh cop draws ₹28 lakh salary without reporting for duty for 12 years.