💰 CRED’s Big Bet & Paytm’s ₹1.8 Cr Fine (Feb 5)

Happy Wednesday! We’re halfway through the week, and the markets are serving up a mix of diamonds, discounts, and disruptions.

From India overtaking China in the diamond game to Paytm’s latest tax troubles, we’ve got all the top stories wrapped up for you. Let’s dive in! 🚀

☕ Chai Shots

• 💎 India Overtakes China in Diamond Market: De Beers CEO says India's domestic diamond market is now the second largest globally, growing at double-digit rates.

• 🏦 RBI Governor’s First MPC Meet: All eyes on the February 7th decision—experts expect a 25 bps rate cut as the economy looks for a boost.

• 🏨 OYO Investing £50M in UK: The hospitality giant plans to expand its premium hotel portfolio, creating 1,000 jobs in the UK.

• ⚖️ Elon Musk’s lawsuit against OpenAI moves closer to trial, as a U.S. judge hints that some parts of the case will go before a jury.

• 🏥 SEBI Algo Greenlights Retail Algo Rrading, allowing individuals to use automated strategies for faster execution.

📈 Market Masala: Bulls Back in Action

📉 Sensex & Nifty Surge: Markets rallied, with Sensex jumping 1.8% and Nifty reclaiming 23,700, fueled by strong gains in banking, capital goods, and energy stocks.

🔍 Why the Rally? Global optimism soared as Trump delayed tariffs, RBI rate cut hopes (25 bps) grew, and FIIs returned with ₹809 Cr buying spree while DIIs sold ₹431 Cr. 📈🚀

💰 Stock Spotlight:

• Larsen & Toubro: Shares jumped 4% on plans for a pellet and DRI plant in MENA.

• Samvardhana Motherson: Up 5% after Trump paused Mexico and Canada tariffs.

• Tata Chemicals: Fell 3% after posting a ₹21 crore Q3 loss.

• Swiggy Shares Drop 5% Intraday 📉: Swiggy’s stock fell nearly 5% to ₹437.05 on the BSE, bringing its market cap down to ₹99,406 crore. The dip follows a recent rally after Kotak Institutional Equities gave it a ₹500 fair value target. Despite this, Swiggy expects adjusted EBITDA profitability by Q3 FY26.

• Zomato Gets Partial Relief from GST Authorities ✅ The food delivery giant won a ₹5.9 crore GST waiver for unpaid dues from 2017-2021 after a favorable ruling. However, it is still appealing a much larger ₹803 crore tax demand for 2019-2022.

🌍 Global Masala: Trade Wars & Tech Tussles

• 📈 US stock markets rebound: Dow (+0.3%), S&P 500 (+0.7%), Nasdaq (+1.3%) after China retaliated with tariffs but left room for compromise.

• 🛑 China Strikes Back: Beijing retaliated against Trump’s tariffs, slapping duties on US crude oil, autos, and farm equipment.

• 🌊 UK’s £2.65 Billion Flood Defense Plan: With extreme weather on the rise, the UK is investing big in flood infrastructure.

• 📈 Asia Markets Rebound: Despite tariff tensions, markets in Japan, South Korea, and Australia opened higher.

• 🎧 Spotify's First Profitable Year: Shares jumped 13% as the company reported €1.14 billion in net income—its first full year in the green.

• 📉 Estee Lauder is trimming the fat—7,000 jobs to be cut as sales decline amid a slowing Chinese luxury market.

☕ The Big Brew: RBI’s Balancing Act – Growth, Inflation & Global Uncertainty

The RBI’s Monetary Policy Committee (MPC) is in deep contemplation about a rate cut. With inflation cooling and growth sluggish, experts believe the RBI has room to slash the repo rate by 25 bps.

💡 What’s Influencing the Decision?

• Fiscal prudence: The Budget focused on stability, leaving the RBI to do the heavy lifting for growth.

• Inflation cooling: January inflation is hovering near 4%, making a rate cut feasible.

• Trade war jitters: U.S.-China tariffs are creating uncertainty—cutting rates now could help India stay competitive.

• Market impact: A cut could boost bank lending, lower borrowing costs, and support stock market momentum.

🔮 Will the RBI Cut?
Many analysts believe it should cut rates now, despite the rupee's weakness. A competitive rupee + lower rates could help India's exports and push economic growth to 7%. Let’s see what the RBI decides on February 7th!

🚀 Startup Scoop: Fintech & Diamonds Shine Bright

• CRED Pumps ₹550 Cr into NBFC Newtap Finance 💳: Kunal Shah’s fintech giant is doubling down on lending, with ₹19,000 crore in assets under management.

• COLUXE: India’s First National Lab-Grown Diamond Brand 💎: Priyanka Gill is redefining luxury with affordable, ethical fine jewelry—launching in May 2025.

• Paytm Slapped with ₹1.8 Cr GST Fine 💰: The Delhi tax department penalized CEO Vijay Shekhar Sharma and One97 Communications over invoice violations.

• 💳 MobiKwik to launch RuPay credit card, doubling down on UPI growth.

🧐 Chai Break Trivia

💎 Did You Know? Lab-grown diamonds are chemically identical to natural diamonds and cost 30-40% less—making them an increasingly popular choice for consumers worldwide.

⏭️ What’s Brewing Next?

• February 7th: RBI’s Monetary Policy Decision—Will rates finally be cut?

• Disney Earnings Tomorrow 🎬—Streaming & theme parks in focus.

👋 That’s a Wrap!

That’s your midweek market fix—big moves, big investments, and some unexpected financial drama.

☕ Enjoyed your sip of Masala Chai? Share the brew with your friends and help us spread the word—because good chai (and good news) is best enjoyed together! 💌🔥