♠️ Trump bets on long game for Ukraine peace

Good morning. Zakir Khan - what a guy 🔥 👏 

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• ♠️ Trump bets on long game for Ukraine peace

• 🪷 India bets on growth over gaps

• Bite-sized summaries

  • 🤖 Perplexity brings live earnings calls to India

  • 💰️ Taxman probes who’s really running Jane Street India

• 🧑‍🍳 What else is cookin’?

MARKETS

🇮🇳 India

• Indian stock markets rallied, driven by expectations of GST reforms and a sovereign credit rating upgrade. FMCG, auto, and cement stocks led the rally as traders welcomed potential tax cuts. Metals surged, while IT and oil sectors lagged slightly.

🌍️ International

• US markets ended the day little changed, remaining close to record highs. Investors were cautious ahead of key Fed signals at the Jackson Hole summit and upcoming retail earnings, with sector moves muted in a wait-and-see environment.

POLITICS

♠️ Trump bets on long game for Ukraine peace

As tensions rise over India’s oil purchases from Russia, former US ambassador Nikki Haley has stepped into the fray with a warning for Washington.

In a strongly worded post on X, Haley said the US must not “burn its relationship with a strong ally like India” while giving a free pass to China, which remains the largest buyer of Russian and Iranian oil. Her remarks come just as Donald Trump doubled down on his criticism of India, vowing to hike tariffs “very substantially” in the next 24 hours over its continued energy trade with Moscow.

Haley, who served as UN Ambassador during Trump’s first term, acknowledged that India buying Russian oil isn't ideal. But she pointed out the double standard: India faces tariff threats, while China gets a 90-day pause. “Don’t give China a pass,” she urged.

India, in response, mounted an unusually sharp counterattack, calling out the US and EU for “unjustified” targeting of its energy strategy. Indian officials argue that its oil imports are driven by price and national interest, not politics.

Meanwhile, Trump struck a friendlier tone with China, saying he’s “getting along very well” with Xi Jinping and might meet him by year-end - if a trade deal materialises.

The broader picture? US foreign policy is entering choppy waters, with allies and adversaries being judged by inconsistent standards. For India, which has walked a tightrope between Washington and Moscow, Haley’s comments are a rare voice of support and a reminder that not all of DC sees red.

Read more: Economic Times

FINANCE

🪷 India bets on growth over gaps

India’s government is confident it can deliver on its FY 2025–26 fiscal deficit target of 4.4% of GDP, even as it rolls out sweeping consumption tax cuts under the biggest GST reform since 2017. Prime Minister Narendra Modi is steering a “double Diwali” of sorts slashing GST rates to make essentials and electronics cheaper, while ending the GST compensation cess by December to streamline state payouts and soften revenue shocks.

Instead of trimming public spending, the government leans on fiscal flexibility pointing to both central and state-level buffers to cushion any shortfall in revenue. That confidence hinges on internal mechanisms, though specifics remain under wraps and the finance ministry has kept silent so far.

Beyond consumer payoff, the tax overhaul is smart economics. Analysts expect a modest 0.6 percentage-point lift to GDP growth, plus a jolt to market sentiment. Companies like Nestlé and Samsung may benefit from cheaper household goods and electronics, while the cuts also play well politically ahead of key state elections.

Of course, imposing cuts while staying on track with the fiscal deficit is a high-wire act not without risk. But for now, the government projects smooth sailing, betting that growth, budget levers, and perhaps some unseen fiscal handshakes will balance the books and win public approval along the way.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🤖 Perplexity brings live earnings calls to India - Perplexity, the U.S.-based AI firm, is expanding its Finance dashboard to provide live transcriptions of earnings calls for Indian companies, along with a schedule of upcoming calls. The feature, announced by CEO Aravind Srinivas, builds on Perplexity’s earlier rollout of free Indian stock and crypto data, aiming to give investors, analysts, and market watchers easier access to primary market intelligence. The move comes after its partnership with Airtel, which made the AI-powered search engine Perplexity Pro available at no cost to roughly 360 million Airtel users. By combining real-time financial insights with its growing user base in India, Perplexity is positioning itself as a key player in making equity research more transparent and accessible in one of the world’s fastest-growing markets.

💰️ Taxman probes who’s really running Jane Street India - Indian tax authorities have launched a probe into U.S. investment firm Jane Street’s India operations, focusing on who really holds the reins. After a six-day survey failed to unlock crucial offshore data, the Income Tax Department summoned Ernst & Young (the auditor of Jane Street's Indian subsidiary) and collected sworn statements from two employees and one director of the local entity. The investigation aims to determine where the trading instructions and decision-making power originate raising questions about whether operational control resides in India or offshore. Understanding the locus of control could reshape tax and regulatory obligations, particularly around transfer pricing, permanent establishment, and treaty benefits.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Intel shares jump as Softbank to buy $2bn stake in chip giant.

• Paytm founder Vijay Shekhar Sharma to appear on The Great Indian Kapil Show.

• Zakir Khan becomes first Indian to perform a hindi comedy show at iconic Madison Square Garden.