📉 Markets Slide on Tariff Jitters

☀️ Good morning! It’s Friday — and we’re back with a full tank of chai.

While global markets brace for more tariff turbulence, Tata just dropped the mic with a global power play. Sit back, sip up, and let’s unpack the week’s spiciest stories.

🫖 Chai Shots

• 🛑 Markets tumble on Trump tariff fears: The Sensex dropped 296 points and Nifty slipped below 25,000 as Trump’s 25% tariff plan spooked investors. Heavyweights like RIL, Tata Steel, and Sun Pharma dragged the indices down, while HUL jumped 3.5% post-earnings.

• 📱 Apple’s India iPhones spared — for now: Trump’s new tariffs won’t hit smartphones yet, which means Apple’s India-made iPhones continue shipping to the US tariff-free. But if exemptions are rolled back, prices could spike.

• 🌾 India vows to shield farmers as Trump tariffs loom: With the 25% US tariff deadline just hours away, Trade Minister Piyush Goyal told Parliament that India will not compromise on agriculture, MSMEs, or local entrepreneurs.

• 🛻 We mentioned it yesterday, but here's the full breakdown today: Tata Motors is buying Iveco’s truck unit for €3.8B in a blockbuster deal to expand its global CV footprint. More in the Big Brew 👇

• 🥘 Swiggy’s losses explode despite delivery growth: The quick commerce major reported a ₹1,197 Cr loss for Q1 FY26 — a 96% YoY spike — even as revenue soared 54% to ₹4,961 Cr. Sky-high expenses from expanding Instamart are weighing heavy.

📈 Market Masala

• 🛑 Indices drop as tariffs dominate sentiment: The Sensex closed 296 points lower at 81,185, while the Nifty shed 84 points to end at 24,968. Major laggards included Tata Steel, Sun Pharma, RIL, and Adani Ports. Meanwhile, HUL bucked the trend with a 3.5% jump on solid earnings.

• 📉 FII outflows return amid global jitters: Foreign investors sold ₹850 Cr worth of Indian equities as trade uncertainty and weak global cues pressured sentiment.

• 💊 Pharma stocks tread cautiously on tariff risk: Experts warn Trump’s 25% duties on Indian exports could raise US healthcare costs and squeeze margins for Indian pharma companies, though generics may remain shielded due to US dependence.

• 🧲 Copper tariffs kick in, India faces mild impact: The US now imposes a 50% tariff on all semi-finished copper products. While India’s exposure is small (~$360M exports), its scrap trade may see ripple effects.

🌍 Global Masala

• 🌩️ Amazon tanks, Apple pops after earnings: Amazon shares fell over 7% in after-hours trading due to weak profit guidance, while Apple gained 2% after beating both revenue and earnings expectations.

• 📊 S&P 500 futures flat ahead of US jobs data: Investors are holding breath before the July jobs report and Trump’s reciprocal tariff deadline. Big Tech is flying, but market anxiety is real.

• 🧠 Microsoft joins the $4T club: With booming Azure cloud revenue and surging AI demand, Microsoft crossed the $4 trillion valuation mark, becoming the second public company to do so after Nvidia.

• 🌩️ Amazon & Microsoft face UK scrutiny over cloud practices: The UK’s competition watchdog flagged the duo for anti-competitive behavior, citing lock-in tactics and unfavorable licensing under new digital laws.

🍵 The Big Brew: Tata’s €3.8B Iveco Deal Is a Global Power Play

Tata Motors just made its boldest global bet yet — acquiring Italy’s Iveco commercial vehicles business for €3.8 billion in cash, while Leonardo snaps up Iveco’s defense arm for €1.7 billion. The deal not only expands Tata’s global footprint but marks a major milestone in India Inc’s manufacturing playbook.

Here’s the full story:

• 🛻 A giant leap beyond India: With this move, Tata Motors gets instant access to the European market and a portfolio that includes trucks, buses, and advanced transport tech. Combined revenues of the new entity? Over €22 billion annually.

• 🔋 Unlocking green tech: Tata will gain access to Iveco’s electric and hydrogen-powered vehicle platforms — critical to keeping pace with global decarbonization and EV trends.

• 🏭 Two strong home markets: The new group will have dual engines — India and Europe. Half of its revenue will come from Europe, 35% from India, and 15% from the Americas.

• 🧠 No layoffs, full integration: Iveco’s HQ will remain in Turin, and Tata will preserve the local leadership and ESG commitments — a move aimed at smooth cultural integration.

• 💰 Smart financing, no equity dilution: Tata is funding the deal via a fully underwritten €3.8B bridge loan, keeping its shareholding structure intact and avoiding shareholder dilution.

• 🔒 Prudent structure: The deal is conditional on shareholder approval and regulatory clearances. Leonardo’s acquisition of the defense arm paves the way for Tata’s takeover of the commercial unit.

What does this mean?

Tata’s biggest bet since JLR could reshape the global commercial vehicle industry. It gives Tata the scale to compete with Daimler and Volvo, the tech to fast-track decarbonization, and a European footprint to diversify risk. But it’s also a test of post-pandemic cross-border M&A. If Tata pulls it off, this could be the playbook for Indian multinationals looking to go global without going broke.

🚀 Startup Scoop

• 💤 The Sleep Company kicks off Series D with an 80% valuation surge: With ₹105 Cr from investors like Saffron and Carillon, the D2C mattress brand now sits at a ₹2,745 Cr valuation. The funds will go into expansion and new product lines.

• 📦 Metaforms raises ₹79 Cr to automate agency workflows: Bengaluru-based Metaforms secured $9M in Series A funding to expand its AI-powered research automation platform, with plans to scale its engineering and R&D teams rapidly.

🧠 Chai Break Trivia

Did you know 🤯: The earliest known alarm clock was invented in Ancient Greece… and it used water! As the vessel filled, pressure forced air through a whistle, waking up its owner with a stream-powered psssht. Now that’s liquid motivation.

🔮 What’s Brewing Next

• 🗓️ August 1 tariff deadline hits today: Trump’s new 25% duties on Indian goods officially begin today. Markets are waiting for India’s counter-move — and clarity on penalties tied to Russian oil trade.

🥤 That’s a wrap!

As tariffs fly and Tata expands, one thing’s for sure: chai pairs best with bold moves and even bolder headlines. Enjoy the weekend, and remember — the markets may snooze, but Masala Chai never sleeps.

☕ Until next time, stay sharp and sip strong.