🤖 Personal superintelligence

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

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 📉 Why India shouldn't rush into more Rate Cuts

• 🤖 Personal superintelligence

• Bite-sized summaries

  • 🤝 India defends Russian oil buys

  • 🇮🇳 Pharma exporters hope for Trump tariff relief

• 🧑‍🍳 What else is cookin’?

MARKETS

🇮🇳 India

• Few Indian stocks closed slightly higher on Wednesday. However, broader market indices like midcap and smallcap ended lower, and sector performance was mixed - T, pharma, and FMCG rose, while realty and auto lagged. Overall, market action reflected selective gains amid a cautious backdrop and volatile trading.

🌍️ International

• US markets closed mixed. Stocks retreated from session highs after Fed Chair Powell signaled it's too soon to consider a September rate cut, causing Treasury yields to rise. Investors eyed further earnings and economic data for direction.

MACROECONOMICS

📉 Why India shouldn't rush into more Rate Cuts

There’s a school of thought in India’s financial corridors, nicknamed the SoBo-BKC school, that believes interest rates should always go lower.

Inflation high? Cut rates. Inflation low? Cut again.

But that logic might be more flawed than flashy.

Here's the current landscape:

• Inflation clocked in at 2.1% this quarter, the lowest since 2019. Sounds like a green light for rate cuts, right? Not so fast. That drop is mostly a statistical illusion caused by last year’s high base.

• Onion and arhar dal prices, for instance, are still higher than in 2023. Consumer perception of inflation hovers around 7-8%, despite what the CPI says.

Meanwhile, core inflation, the kind monetary policy actually impacts, is inching upward to 4.4%. And economic indicators like GST collections, PMI, and e-way bills are looking healthy.

So why the rush to cut rates again?

• Since February, the RBI has already delivered a 100 basis point cut.

• Over 60% of new loans are linked to repo rates, meaning the impact is already trickling in.

• But credit growth is still tepid, and that’s because businesses borrow when demand rises, not just because loans are cheap.

Overall: With inflation expected to rise to 4.4% by year-end, a hasty rate cut could box the RBI into a corner. Instead of reacting to momentary data dips, the smarter move is patience. Let the economy absorb previous cuts before rushing into more.

Sometimes, the best action is inaction.

Read more: Economic Times

ARTIFICIAL INTELLIGENCE

 🤖 Personal superintelligence

Mark Zuckerberg doesn’t just want you scrolling through Reels - he wants to give you your own AI-powered superbrain.

In a new post, the Meta CEO unveiled plans to build “personal superintelligence” for everyone. Unlike other tech giants chasing workplace automation and enterprise AI, Zuck says Meta’s focus will be on AI that helps you, as a person, live better. Think less spreadsheet, more self-actualization.

Meta’s version of AI won’t just answer emails or summarize documents. Instead, it’ll help you set personal goals, boost creativity, and be a better friend, partner, or parent. And it won’t just live in your phone - Zuckerberg imagines future devices like smart glasses that see and hear what you do, offering real-time support tailored to your life.

This isn’t just vaporware. Meta’s been on a hiring spree, poaching elite talent from OpenAI, Apple, GitHub, and Scale AI, and backing it with massive infrastructure investment. The new Meta Superintelligence Lab includes AI heavyweights like Alexandr Wang and Nat Friedman, hinting that this is more than just a vision board.

The takeaway? While most tech firms are focused on AI that makes companies more efficient, Meta is betting big on AI that makes individuals more capable, creative, and connected.

Personal superintelligence may sound like sci-fi today — but Zuckerberg wants to make it your next reality.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🤝 India defends Russian oil buys - India’s High Commissioner to the UK, Vikram Doraiswami, hit back at Western criticism over New Delhi’s purchase of Russian oil, bluntly stating that India “can’t switch off its economy” just because of geopolitical pressure. Speaking to Times Radio, Doraiswami pointed out the hypocrisy of European nations condemning India while continuing to source rare earths and energy from the same nations India is discouraged from dealing with. He explained that India only turned to Russia after being pushed out of traditional energy markets, stressing that as the world’s third‑largest energy consumer importing over 80% of its needs, the country must prioritize affordable, reliable supply.

🇮🇳 Pharma exporters hope for Trump tariff relief - Indian pharmaceutical exporters are cautiously optimistic that the newly announced U.S. tariffs may fall more lightly on their sector, with hopes that the Trump administration will either exempt generic drugs or limit tariffs to around 10% given their crucial role in supplying affordable medicines to Americans. Major Indian pharma firms like Dr Reddy’s, Cipla, Sun Pharma and others derive up to half their revenues from the U.S., which imports roughly 40% of its drugs from India in volume, despite export value being just around $9 billion compared to Europe’s much larger share. Analysts warn that even modest tariffs could dent earnings by 3–5% in FY27. Industry insiders are mapping contingency plans to mitigate financial hits, while banking on diplomatic ties and U.S. health system needs to tilt policy in their favor.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• 'India willing to cut duty substantially': Trump after 25% tariff, penalty.

• Sebi confirms ban on Gensol, Jaggi brothers in fund diversion case.

• India issues tsunami advisory for citizens in US West Coast and Hawaii after massive Russia quake.

• Karnataka IT/ITeS Employees Union seeks action against TCS over job cuts.