🚗 Tariffs Hit $7B in Auto Parts — India’s Trade Juggle Begins

☀️ Good morning, it’s Thursday aka Friday Juniorrr!

Markets are buzzing on an inflation cool-off, the US is swinging tariff hammers, China is tossing olive branches (and fertiliser), and India Inc. is in expansion overdrive — from EVs in the UK to ice cream spin-offs at home. Let’s stir it all together.

🫖 Chai Shots

• 🚗 Tariff tremors in auto parts trade: The US’s new duties will directly hit $7B worth of Indian auto component exports, which make up over a quarter of our shipments in this sector. Analysts warn that 15–20% of exports to America could vanish in the short term, especially from SMEs supplying parts for cars, trucks, and farm equipment. Many small players fear US customers may shift orders to lower-tariff countries like Japan or Vietnam, squeezing margins.

• 🍦 HUL shareholders approve Kwality Wall’s spin-off: Hindustan Unilever’s ice cream business will soon operate as a separate listed company. Shareholders voted almost unanimously in favour, securing a 1:1 share swap in the new entity. Brands like Cornetto, Magnum, and Feast will now have their own stock market presence, with the demerger expected to complete by FY26.

• 🏍 Ola Electric to rev up sports scooter entry: Sources say Ola will reveal a performance-focused scooter on August 15, potentially with AI features powered by Ola Krutrim. The move targets India’s growing sports scooter market, now led by models like the TVS Ntorq, Yamaha Aerox, and Aprilia SR160.

• 🌏 India’s economic balancing act: Between US tariff shocks, renewed China ties, and bold global expansion moves, India is walking a fine line to secure its growth story. More in the Big Brew 👇

📈 Market Masala

• 📊 Inflation dip powers markets: The Sensex rose 304 points to 80,539.91 and the Nifty added 132 points to 24,619.35 as July retail inflation fell to 1.55% — an 8-year low and well below the RBI’s 2–6% target range. The decline, driven by a drop in food prices, has boosted investor hopes for rate cuts later this year.

• 🏥 Apollo Hospitals leads Nifty rally: Shares surged 8.2% after Q1 consolidated profit jumped 41.8%. Hindalco gained 5.09%, Dr. Reddy’s rose 2.71%, Cipla added 2.52%, and Hero MotoCorp advanced 2.35%. On the flip side, IndusInd Bank dropped 1.26% after news of an EOW probe into a past accounting lapse.

• 🏦 SBI cashes in on JSW Cement IPO: The bank booked a ₹78 crore profit — a 125% return — before listing, selling part of its stake at a hefty premium to its original purchase price of ₹65.45 per share.

• ⚡ Mahindra eyes EV exports to UK: Riding the India–UK free trade pact, Mahindra plans to export EVs designed at its Oxfordshire facility. CEO Anish Shah says EVs could make up 30% of Mahindra’s sales by 2030 and that global competition from Tesla and Vinfast will only make the company stronger.

🌏 Global Masala

• 📈 European markets extend gains: The Stoxx 600 rose on the back of record Wall Street closes and hopes for a Fed rate cut. Defence supplier Renk led the index, surging 4.9% after a record order intake and strong H1 earnings.

• 🎮 Tencent levels up with AI and gaming: Q2 revenue climbed 15% YoY to $25.7B, driven by hits like “PUBG Mobile” and “Delta Force” plus AI upgrades to its ad platform and Weixin ecosystem. Domestic game sales rose 17%, while international gaming revenue soared 35%.

• 📊 Nikkei 225 breaks another record: Japan’s benchmark closed above 43,421 points for the first time, buoyed by US inflation data pointing to a likely Fed rate cut in September and a 90-day pause on new US tariffs against China.

☕ The Big Brew — India’s Economic Juggle: Tariffs, Trade Thaws & Global Gambits

India is juggling a complex mix of external pressures and internal ambitions — balancing between defending its turf in global trade and chasing growth opportunities worldwide.

🚨 Tariffs from the US

• Washington’s new duties target $7B in Indian auto components, risking a 15–20% drop in exports to America. While big OEMs may pivot to other markets, SMEs could lose long-standing US clients to lower-tariff rivals.

🤝 China extends an olive branch

• After years of frosty ties, Beijing has eased urea export restrictions to India — vital for our agriculture sector. India has reciprocated by restoring tourist visas for Chinese visitors and planning to resume direct flights.

• Corporate overtures are also in play, with Adani exploring a battery manufacturing partnership with Chinese EV giant BYD.

🌍 Expansion mode abroad

• Mahindra will use the India–UK FTA to export EVs to Britain, leveraging its Oxfordshire design hub.

• Tata Motors has entered the Dominican Republic with a portfolio ranging from mini-trucks to 71-seater buses.

• The government is preparing to allow private firms to mine, import, and process uranium — a game-changer for meeting its goal of a 12x nuclear capacity boost by 2047.

📈 Domestic corporate momentum

• HUL is unlocking shareholder value with a Kwality Wall’s spin-off.

• BPCL and Muthoot Finance delivered profit surges despite sector headwinds.

• SBI booked triple-digit returns in the JSW Cement IPO before the stock even hit the market.

💡 What does this mean?

• India is signalling that it won’t be overly reliant on any single partner, using trade diversification and sectoral reforms to keep momentum.

• The mix of strategic diplomacy and bold corporate plays could insulate growth — but execution and geopolitical shifts remain the wildcards.

🚀 Startup Scoop

• 🛫 StampMyVisa snaps up Teleport: Mumbai-based AI visa processing platform acquires Bangalore’s Teleport to expand across South India. With a 99.5% success rate, it’s processed over 50K visas in just six months and is eyeing a $3M raise.

• 🔬 Olee Space raises $3M for defence photonics: Pune startup developing laser-based quantum communication and directed energy weapons for aerospace and national security secured funding from Rockstud Capital and global investors.

• 🏥 Arintra bags $21M Series A: San Francisco-based AI medical coding platform helps hospitals secure accurate reimbursements by spotting documentation gaps and creating payer-specific claims. Backed by Peak XV Partners and others.

🤓 Chai Break Trivia

Did you know 🧇: The Belgian Waffle Co — which began as a single kiosk in 2015 — now runs 650 outlets across 200+ Indian cities. It’s currently in talks with Norwest Venture Partners for a minority stake sale valuing the chain at up to ₹500 crore.

🔮 What’s Brewing Next

• 💍 BlueStone IPO fever: Jewellery brand’s issue oversubscribed 2.6x, with QIB bids at 4.2x and retail at 1.24x.

That’s your Thursday cup — rich, layered, and full of moving parts. Tariffs may be tightening in one direction, but trade ties and corporate ambitions are expanding in another. See you tomorrow for more stories worth sipping.