🇮🇳🇬🇧 India & UK Restart Trade Talks – What’s the Catch? (Feb 25)

🌞 Good morning! It’s Tuesday, which means you survived Monday’s market meltdown—barely. While the Sensex tumbled, Samsung gave out bonuses, and Trump fired more tariff shots, at least we have some good news brewing (PV Sindhu investing in KiranaPro, Havells charging up the EV game, and Apple betting big on the US).

📉 If Monday was a stock market horror show, let’s hope Tuesday is the plot twist that saves our portfolios. Now, let’s dive into what’s making waves today! 🚀

📰 Chai Shots

• 📉 Sensex, Nifty Slide Again – Benchmark indices ended with over 1% losses, dragged down by IT and financial stocks. Nifty 50 closed at 22,553, while Sensex settled at 74,454.

•  🇮🇳🇬🇧 India & UK Restart Trade Talks: After a year-long pause, India and the UK have resumed Free Trade Agreement (FTA) negotiations with hopes of doubling trade within a decade. Sticking points include India’s tariffs on British goods and easier business visas for Indian professionals.

• ⚖️ BR Shetty’s ₹1,000 Cr Legal Battle with ICICI Bank ⚖️ The former billionaire and founder of NMC Healthcare claims his signature was forged on loan documents that led to a Dubai court ordering him to pay ₹1,000 crore to ICICI Bank. Handwriting experts have, however, confirmed the signatures are his.

• 🏢 Microsoft’s AI Data Center Slowdown 🖥️ Microsoft has reportedly canceled leases for large AI data centers in the US, raising concerns about overcapacity in AI infrastructure. This follows similar moves by Meta and Google, signaling that Big Tech might be reevaluating the AI investment frenzy. The stock fell 1%, dragging the broader Nasdaq down 1.21%.

• ✈️ IndiGo Flies High on Maha Kumbh Demand 🛫 Citi has raised IndiGo’s stock target from ₹5,100 to ₹5,200, citing an unprecedented surge in air travel due to Maha Kumbh 2025. Prayagraj Airport saw scheduled flights increase from 16 to 120 daily.

📈 Market Masala

• 📉 Indian Markets Keep Falling – Nifty and Sensex dropped over 1% for the fifth straight session, weighed down by tech and financial stocks. The broader indices also saw sharp declines, with Midcaps down 0.95% and Smallcaps down 1.21%. Heavy selling in IT & financial stocks drove the decline, with Infosys, TCS, and HDFC Bank among the biggest losers.

• 💰 Hornbill Capital’s Big Move – The hedge fund has bid $200 million for stock trading platform Dhan, valuing it at $1.25 billion—a deal that could make Dhan India’s first unicorn of 2025.

• 🏦 RBI’s Rate Cut Explained – The RBI’s surprise repo rate cut was triggered by a manufacturing slowdown, as job creation and private investments failed to pick up. With inflation cooling, the central bank acted early to support economic growth.

• 🌎 India Among Top US Tariff Targets 🇮🇳 – S&P Global warns India, South Korea, and Thailand are most vulnerable to Trump’s trade war. If implemented, US tariffs could shrink India’s GDP growth by 0.1-0.6 percentage points.

• 🔋 Taiwan’s Delta Electronics Invests in India – The firm is committing $500 million to expand manufacturing and R&D in India, aligning with the government’s Make in India push.

🌍 Global Masala

• 🇺🇸 Wall Street Drops as Nasdaq Turns Negative for 2025 📉 The S&P 500 slipped 0.5%, while the Nasdaq tumbled 1.2%, officially moving into negative territory for the year. Tech stocks dragged the market lower, with Microsoft down 1% after concerns about data center spending cuts, and Nvidia dropping 3%.

• 🌍 Europe Slips as German Election Results Sink In 🇩🇪 European markets ended lower, with the Stoxx 600 down 0.08% as traders digested Germany’s federal election results.

• 📉 Europe’s Luxury Market Bounces Back – Brands like Hermès and Cartier-owner Richemont posted strong earnings, but concerns over China’s weak demand and US tariff threats still loom over the sector.

• 🚗 Vietnam Slaps Tariffs on Chinese Steel – The country will impose 27% duties on Chinese steel imports, following South Korea and Brazil in curbing Beijing’s export dominance.

• 🍏 Apple Commits $500 Billion to US Manufacturing: Apple will invest $500B in manufacturing and AI, but faces tariff-related challenges as Trump pressures tech firms to shift production.

• 🔥 Samsung’s Wage Hike to Ease Labor Tensions 💰 Samsung Electronics has agreed to a 5.1% wage hike for 2025 after tensions with its labor union led to the company’s first-ever strike last year. Along with this, employees will receive 30 Samsung shares (worth ~$1,200) and discounted company products worth $1,400.

🍵 The Big Brew: India & UK Rekindle Trade Talks 🇮🇳🇬🇧

After a year-long pause, India and the UK have resumed negotiations for a Free Trade Agreement (FTA), aiming to double bilateral trade within a decade. UK Business Secretary Jonathan Reynolds met Indian Commerce Minister Piyush Goyal in Delhi, with both sides pushing for a “balanced and ambitious” deal.

🔍 What’s Holding Up the Deal?

• Tariff Tussle: India’s high duties on Scotch whisky and British cars remain a major sticking point.

• Visa & Mobility: India wants easier business visas for professionals, while the UK is reluctant to include this in trade talks.

• Market Access: The UK seeks better access to India’s financial, dairy, and professional services sectors.

🔥 Why Now?

With Trump’s tariff threats creating uncertainty, both nations are looking to secure stable trade relationships. The UK also sees India as a key economic partner post-Brexit.

While no deadline has been set, officials are hopeful that 2025 could finally see a breakthrough in the long-pending trade deal. 🤝✨

🚀 Startup Scoop

• ⚡ Havells to Enter EV Charging Market in 6 Months ⚡ Havells is developing EV chargers to support India’s booming electric vehicle industry, with Tesla’s entry into India further fueling demand.

• 🏸 PV Sindhu Invests in KiranaPro – The badminton star is now an investor and brand ambassador for KiranaPro, a quick-commerce platform for small retailers.

• 💸 Oxyzo Raises ₹100 Crore – The fintech unicorn secured a ₹100 crore debt round from AK Capital, aimed at strengthening long-term resources.

⏩ What’s Brewing Next? – Upcoming Events & Trends

• 📊 India Q3 GDP Data: India's economic growth is expected to slow to 6.2-6.4%, marking a four-year low. The official GDP data for Q3FY25 will be released on Friday, February 28, at 4:00 PM.

• 📊 US Inflation Data (PCE Index) Releases Friday: Markets will react sharply if the data signals higher inflation, impacting rate cut expectations.

🧐 Chai Break Trivia

Did you know Karnataka is the largest producer of Scotch-style whisky in the country? 🥃🔥 Home to world-renowned brands like Amrut and Paul John, this state has put Indian single malts on the global map! 🌍🏆 Cheers to that! 🍻

Tuesday’s market vibes: Like a suspense thriller—you don’t know if the market is about to recover or fall off a cliff. 🎢 With Trump’s tariffs, falling gold imports, and a volatile Sensex, investors are on high alert.

This week’s mantra? Stay caffeinated, stay invested, and stay informed. 🚀

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