Newsletter
Defense stocks rally, Vodafone's new bet, and Flying taxis are back.
☀️ Good morning.
NASA astronauts Sunita Williams and Butch Wilmore finally made it back to Earth, splashing down off Florida’s coast. Originally intended to be an eight-day mission, their stay on the International Space Station lasted 286 days due to technical issues with the spacecraft that carried them up to the ISS.
Markets kept the momentum going for a third straight session, with Sensex at 0.19% Nifty edging up 0.34%.
The real action, though, was in the Midcap Index, which surged nearly 3%.
Spotlight: Steel stocks rallied after the Directorate General of Trade Remedies (DGTR) proposed a 12% safeguard duty on steel that is imported into India.
A safeguard duty is a temporary tariff designed to protect domestic manufacturers from a surge in low-cost imports.
JSW Steel, Tata Steel, and SAIL saw strong gains as investors welcomed the move, which could boost pricing power and keep local producers competitive.
1 Big Thing: Vodafone joins the satcom race 🛰️
Vodafone Idea (Vi) is testing the satellite internet waters, confirming that it’s in "exploratory talks" with Starlink and Amazon Kuiper to bring satellite-based internet to its network.
The deets: Vi’s talks with Starlink come just days after Airtel and Jio partnered with SpaceX to bring Starlink’s high-speed satellite internet to India. While Vi hasn’t locked in any deals yet, it’s keeping its options open.
What’s happening: Vi has been losing subscribers, with its smaller 4G coverage pushing users toward Airtel and Jio. To fight back, it’s rolling out competitive 5G pricing, undercutting rivals with cheaper plans. It’s also planning to deploy 75,000 5G sites across 17 regions over the next three years, starting with Mumbai.
Why it matters: Satellite connectivity is becoming a game-changer for telecom, expanding internet access where traditional networks fall short. For India, broader satellite adoption could bridge the digital divide, improve access to healthcare and education, and even strengthen defense and disaster response.
2. Defence stocks rise, thanks to Germany 🚀
It was a strong day for India’s defence and shipping stocks, with Garden Reach, Cochin Shipyard, and Hindustan Aeronautics rallying up to 20%.
The rally was driven by Germany’s approval of a $547 billion fund to ramp up infrastructure and defence spending, as Europe scrambles to fortify its military capabilities.
What triggered it: with ongoing security threats and the war in Ukraine, European nations are stepping up their defence investments. Germany, in particular, is loosening borrowing limits to increase military funding beyond 1% of GDP, marking a major shift in strategy.
Why it matters: India’s growing defence partnerships with Europe are opening doors for joint ventures and tech collaborations.
Companies like HAL and Bharat Forge stand to benefit as European nations look for reliable defence suppliers outside of the U.S.
India’s defence exports jumped 32% to ₹21,000 crore in FY24, with over 100 countries—including the U.S., France, and Armenia—sourcing military equipment from Indian firms.
3. Allianz eyes a rebound 💔
After breaking up with Bajaj, Allianz is looking to court Jio Financial Services (JFSL) to re-enter India’s insurance market.
Backstory: two days ago, Allianz sold its 26% stake in Bajaj Allianz Life and General Insurance back to Bajaj for $2.8 billion, ending a partnership that lasted 24 years.
Allianz has been exploring a new India play since last year, and discussions with JFSL have been ongoing for months.
Why it matters: for Jio Financial, this partnership supercharges its push into insurance, allowing it to leverage Jio’s vast digital ecosystem for low-cost, tech-driven insurance solutions.
Zoom out: with 100% Foreign Direct Investment now allowed in insurance, global insurers are actively looking for local partners.
4. BPCL bets on hydrogen-powered flying taxis 🚁
Bharat Petroleum Corporation Limited (BPCL) teamed up with BluJ Aerospace, ANERT, and Cochin International Airport to roll out hydrogen-powered flying taxis, a first for India.
The deets: these Vertical Take-Off and Landing (VTOL) aircraft will operate like helicopters, taking off and landing vertically. The project is still massively ambitious and remains in the experimental stages.
Who’s involved: BluJ Aerospace specializes in sustainable aviation and urban air mobility solutions.
ANERT, a Kerala government agency, is promoting renewable energy innovations, while Cochin International Airport—India’s first fully solar-powered airport—is backing the initiative.
BPCL ended more than 1% higher yesterday.
5. Story in data: More money, better cars 📈
India’s rising disposable incomes are fueling a shift in the auto market.
As buyers upgrade, SUVs are taking over the roads, outpacing hatchbacks and sedans. With automakers doubling down on SUV production, the segment’s dominance is only getting stronger.
What else are we snackin’ 🍿
🚀 AI boost: Nvidia unveiled its latest AI chips, Blackwell Ultra and Rubin, designed to power and run advanced AI models.
🏍️ Leadership shuffle: Hero MotoCorp saw five senior-level exits, and is undergoing a major leadership revamp.
🇸🇬 UPI expands: NPCI International is teaming up with Hitpay to boost UPI acceptance in Singapore.
🏍️ Safer rides: Uber is rolling out new safety measures for its two-wheeler service, Moto, including AI-powered helmet selfies for drivers and in-app nudges for riders.
That’s a wrap! Don’t let the weekday blues get to you.
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