🌞 Good Morning, Chai Fam!

Happy Tuesday! September is here and it’s already brewing drama—US is ranting about trade again, UPI hit a milestone that shows just how cashless India has become, and the markets got their sugar rush from strong GDP numbers. Let’s get into it.

📰 Chai Shots

• 💼 Deutsche Bank May Exit India Retail Arm: The German lender is in talks to sell its 17-branch India retail business, following Citi’s 2021 exit. If completed, it would mark another foreign bank retreating from mass retail in India. More in the Big Brew!

• 📱 UPI Crosses 20B Transactions In August: Digital payments set a new record with ₹24.85 lakh crore exchanged in a single month, up 34% YoY. Peer-to-merchant payments now account for nearly two-thirds of volumes, with Maharashtra leading the charge.

• 🇺🇸 Trump Claims India Offered Zero Tariffs: Trump said India has offered to cut tariffs on US goods to “nothing,” but called it too late after he slapped 50% duties on Indian exports citing Russia oil ties and unfair trade balance. 

• 🎮 Nazara Pulls Out Of PokerBaazi Deal: Nazara canceled its planned stake buy in PokerBaazi’s parent after India’s new Online Gaming Act banned real-money gaming, calling the law a “material adverse effect.”

• 📈 Markets Cheer GDP Boost & Tariff Ruling: Sensex jumped 555 points to 80,364 and Nifty ended at 24,625 after India’s Q1 GDP hit 7.8%, the strongest in five quarters. A US court ruling that most Trump tariffs were illegal also lifted sentiment.

📊 Market Masala

• 📈 Sensex Snaps Losing Streak, Rises 555 Points: After three days of declines, Indian equities bounced back as bargain-hunting in autos, IT, and consumer durables lifted the Sensex by 555 points to 80,364, while Nifty gained 198 to 24,625. M&M, Tata Motors, Infosys, and Asian Paints led the rally, though FMCG majors like ITC and HUL dragged. The rebound came on the back of upbeat Q1 GDP growth at 7.8%, though trade jitters from fresh US tariffs linger.

• 📊 NSE Shifts Expiry To Tuesdays: All NSE F&O contracts will now expire on Tuesdays, ending the 25-year Thursday tradition. Analysts expect sharper Monday–Tuesday volatility, while BSE retains Thursday expiries.

• 🛍️ Flipkart Buys Into Pinkvilla: Flipkart acquired a majority stake in Pinkvilla to tap into Gen Z trends and blend entertainment with e-commerce. With 60M+ readers, Pinkvilla offers rich trend insights to boost Flipkart’s engagement play.

• ✈️ Airport Fees May Depend On Service: AERA has proposed linking airport tariffs to service quality benchmarks like baggage wait times and cleanliness, with incentives for exceeding standards and penalties for lapses.

• 🚚 Goldman Sachs Nets ₹295 Cr In BlackBuck Sale: Goldman Sachs sold 49 lakh shares in BlackBuck for ₹295 crore, with Nomura scooping most of them. BlackBuck’s stock has jumped 130% since IPO, fueled by revenue growth and truck operator expansion.

🌍 Global Masala

• 💹 Europe Rises On Defense & Pharma News: European stocks gained after Norway placed a record £10B warship order from the UK, boosting defense shares. Novo Nordisk also climbed as its drug Wegovy showed stronger heart health benefits than Eli Lilly’s rivals.

• 🥇 Gold Sparkles To Record Highs: Global gold futures surged to $3,557/oz on bets of a September Fed rate cut and concerns over central bank independence, lifting safe-haven demand. In India, this translated to a record ₹1,05,670 per 10g, driven by a weaker rupee, global tariff turmoil, and geopolitical tensions.

☕ The Big Brew: Deutsche Bank’s India Retail Exit — Retreat or Opportunity?

Deutsche Bank is looking to sell its 17-branch retail banking network in India, inviting bids from local and global lenders. The move comes as part of a broader global cleanup—CEO Christian Sewing is cutting 2,000 retail jobs and shutting branches to shift focus to higher-margin businesses.

• 🏦 Strategic Exit: With Q4 2024 profits plunging 77% YoY, Deutsche is trimming low-return units. Citi and Standard Chartered have already scaled back India retail, showing how tough it is for foreign players to compete with local banks.

• 📈 Missed Growth or Smart Timing?: India’s retail banking revenues at Deutsche stood at $278M last year, and the economy is forecast to grow 6.5% in 2025. For buyers, these assets could be an entry point into a market driven by digital adoption and financial inclusion.

• 🔍 Valuation Mystery: Deutsche hasn’t disclosed its asking price, leaving open whether it’s cutting losses at a discount or aiming to cash out at a premium.

What does this mean?

• For India: Local lenders could gain scale and deepen market share.

• For Deutsche: A clean exit saves costs but risks missing future growth.

• For Investors: A reminder that India’s retail banking is both a tough battleground and a tempting long-term prize.

🚀 Startup Scoop

• ☕ Blue Tokai Raises $35M: Coffee brand Blue Tokai bagged $35M led by Verlinvest to triple its footprint from 130 stores to 350 in three years, intensifying India’s specialty café wars.

• 🛒 Unicommerce Secures ₹20 Cr From Parent: SaaS firm Unicommerce will raise ₹20 crore from AceVector to fund acquisitions. Q1 revenue surged 63% YoY, and shares rose 7% after the announcement.

• 💸 LenDenClub Turns Profitable: P2P lending platform LenDenClub swung to a ₹34 crore profit in FY25, up from a ₹14 crore loss, with revenue up 28% to ₹236 crore. Its tech services now contribute 20% of earnings.

🤓 Chai Break Trivia

• 🐢 Did you know: Sea turtles can live for more than 150 years, and females return to the very beach where they were born to lay eggs—navigating back using the Earth’s magnetic field.

🔮 What’s Brewing Next

• 📊 GST Council Meets Sept 3–4: Key reforms could include scrapping the 28% slab and simplifying rates to 5% and 18%.

• 🏦 Deutsche Bank Sale Watch: Bids for its India retail business are under evaluation after the Aug 29 deadline.

🫖 That’s a Wrap!

From Trump’s tariff tantrums to UPI’s record-breaking spree, today’s brew had markets buzzing, banks reshuffling, and startups raising serious cash.

Go hit your Tuesday with the same energy UPI has while clocking 20 billion swipes a month. See you tomorrow, Chai Fam!