📊 India stays steady amid global storms

Good morning. It’s a great day - let’s go after it!

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 📊 India stays steady amid global storms

• 🇮🇹 India, Italy team up for a future-ready economy

• 🗞️ Bite-sized summaries

  • 🧑‍🏭 More workforce cuts

  • 🏦 Morgan Stanley still bullish on Instamart

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian shares rebounded. Banks and auto stocks led the advance, while IT shares lagged. Sentiment improved as investors bought into beaten-down sectors, despite lingering concerns over foreign outflows and election-related volatility.

🌍️ International

• Wall Street ended mixed on Wednesday, a few stocks buoyed by gains in technology and energy shares. Investors remained cautious ahead of key US jobs data, while Nvidia and other chipmakers extended their rally.

INDIA

📊 India stays steady amid global storms

Despite rising global tensions and tariff shocks, Indian companies are showing resilience, pragmatism, and a firm eye on the future.

A joint assessment by Moody’s and ICRA Ratings paints a cautiously optimistic picture of India:

• While global headwinds—especially from U.S. tariffs and geopolitical strains—are making the investment climate complex, India’s corporate sector remains largely insulated due to its inward-focused economy.

• Most domestic firms derive their strength from robust local consumption rather than exports, shielding them from the immediate brunt of global trade disruptions.

However, this doesn’t mean a spending spree is underway. Companies are expected to take a “measured” approach to capital expenditure (capex). Moody’s estimates about $50 billion in annual investment from non-financial corporates over the next two years—mostly funded by internal profits, not debt. This reflects cautious optimism: firms are building for the future, but with discipline.

Supporting this trend are government policies aimed at boosting consumption, expanding manufacturing, and investing in infrastructure. These moves are expected to counteract weaker global demand and help maintain economic momentum.

Yet challenges persist. Manufacturing faces structural constraints, such as limited skilled labor, evolving logistics, and India’s notoriously complex land and labor laws. Export-heavy sectors like auto parts, diamonds, and seafood may also feel the sting of tariff shifts and falling U.S. demand. Meanwhile, geopolitical flare-ups—like tensions with Pakistan—could temporarily dampen travel and hospitality.

Still, there are silver linings. Urban consumption is forecast to bounce back in 2026, thanks to expected tax relief, interest rate cuts, and easing inflation. This should benefit consumer-facing sectors like automobiles, FMCG, and services. Infrastructure remains another bright spot, especially in ports and data centers, supported by strong government backing and a robust project pipeline—even as road construction sees a brief slowdown.

Overall: Crucially, the long-term vision is anchored in sustainability. To meet its 2070 net-zero goal, India must channel 2% of its GDP into the electricity value chain over the next decade—a bold but necessary step toward energy transition, balancing affordability and security.

Read more: Times of India

GROWTH

🇮🇹 India, Italy team up for a future-ready economy

Union Minister Piyush Goyal’s two-day visit to Italy marks a strategic push to deepen economic ties between India and one of Europe’s key industrial powerhouses. At the heart of this engagement lies a vision to collaborate not just on trade, but on transformative sectors shaping the global economy.

Goyal’s meetings in Milan with top Italian business leaders laid the groundwork for stronger industrial partnerships. From automotive components to refrigeration, lighting to agritech, Indian and Italian enterprises are exploring synergies that reflect a shared commitment to innovation, sustainability, and technological advancement.

The centerpiece of the visit is the 22nd session of the India-Italy Joint Commission for Economic Cooperation (JCEC), co-chaired by Goyal and Italy’s Deputy Prime Minister Antonio Tajani. This high-level dialogue will assess progress under the Joint Strategic Action Plan—a broad framework encompassing ten thematic pillars, with economic cooperation at its core.

• Among the standout focus areas: Industry 4.0, agritech, digitalization, energy transition, and sustainable mobility.

• Italy brings deep expertise in precision manufacturing and green technologies, while India offers scale, market potential, and a rapidly digitizing economy.

• Crucially, the India–Middle East–Europe Economic Corridor (IMEC) is emerging as a flagship initiative.

• Positioned as a modern trade route connecting Asia to Europe via the Middle East, IMEC represents not only infrastructure cooperation but also a geopolitical shift in global trade dynamics—one where India and Europe become central players in redefining connectivity.

Goyal’s participation in the India–Italy Growth Forum in Brescia underscores the practical ambition of this visit. It’s not just about diplomacy—it’s about deal-making. The forum aims to catalyze investment and foster direct business-to-business linkages, especially in sectors that align with climate goals and digital innovation.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🧑‍🏭 More workforce cuts - STMicroelectronics plans to reduce its workforce by 5,000 over the next three years, CEO Jean-Marc Chery announced at a BNP Paribas event in Paris. The cuts include 2,800 layoffs revealed earlier and 2,000 positions lost through attrition and voluntary exits. The chipmaker, which employs 50,000 globally and is partly owned by the French and Italian governments, is facing pressure from Italy to scale back layoffs amid a market downturn. Italy has also accused Chery of insider trading, a claim the company denies. STMicro aims to save hundreds of millions by 2027 and sees early signs of a market recovery.

🏦 Morgan Stanley still bullish on Instamart - Despite widening losses, Morgan Stanley remains optimistic about Swiggy’s quick commerce arm, Instamart. The unit’s gross order value rose 101% year-on-year to ₹4,670 crore, though losses grew to ₹840 crore. Still, Swiggy’s strong balance sheet and infrastructure investments—like 1,000+ dark stores—position it to withstand competition and retain market share. Morgan Stanley raised its estimate for India’s quick commerce market to $57 billion by 2030, noting that existing players like Swiggy are best placed to benefit. With over $1.2 billion expected in cumulative investment before break-even, Swiggy’s stock jumped nearly 9% on renewed investor confidence.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Cricket fraternity offers condolences over stampede says it has cast dark shadow over the game.

• Man sues Disney for $50,000 over injuries on Blizzard Beach waterslide.

• Global Foundries to set up design & testing centre in Kolkata, eyes future fab expansion.

• India needs massive investments for Net-Zero Goal by 2070; Private sector will be vital.

• TikTok suspends #SkinnyTok.

• Venmo unleashes next phase of commerce with the Venmo Debit Card and Venmo Checkout.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Hina Khan gets married to longtime beau Rocky Jaiswal: "Forever Sealed In Love And Law"

• Kamal Haasan's film Thug Life releases today everywhere except Karnataka.

• India cricketer Kuldeep Yadav gets engaged to childhood friend Vanshika ahead of England tour 🥰