☕ Good morning and happy Monday, chai fam!

The final Monday of September is here 🍂. While the festive season heats up, markets are bracing for RBI’s big call, startups are stacking up IPO war chests, and Trump is throwing pharma into a tariff storm. Buckle up — this week starts strong.

⚡ Chai Shots

• 🚗 India’s big auto push: New Delhi is drafting its Automotive Mission 2047, which envisions doubling annual vehicle output to nearly 50 million by 2030, and eventually scaling up to 200 million by 2047. The plan will emphasize EVs, hydrogen, CNG, and biogas but won’t ban petrol or diesel cars in the near term. Exports are central to the strategy, with nearly a third of passenger vehicles targeted for overseas markets by 2030.

• 💊 US’s pharma tariffs sting: From October 1, the US will impose a 100% tariff on branded and patented drugs, doubling import costs. Indian generic drugmakers will avoid the harshest blow, but the move adds to earlier 50% duties Trump placed on Indian goods this year. More in the Big Brew 👇

• 🎮 EA buyout buzz: Electronic Arts, maker of FIFA and Madden, is in talks for a $50 billion leveraged buyout led by Silver Lake and Saudi’s Public Investment Fund. If completed, it would be one of the largest gaming deals ever, underscoring the sector’s push toward consolidation amid slower post-pandemic growth.

• 🕵️ IndusInd whistleblower saga: Former CFO Gobind Jain has accused senior management and board members of concealing years of accounting irregularities and claims he was forced to rewrite his resignation. Multiple top leaders have since stepped down, and the Economic Offences Wing has questioned 13 individuals.

📉 Market Masala

• 📊 Volatile week ahead: After tumbling 2.7% last week on latest tariffs and heavy FII selling, markets face a holiday-shortened stretch packed with macro triggers. The Nifty closed at 24,655, Sensex at 80,426, while midcaps and smallcaps dropped 4–5%.

• 🛒 Flipkart preps IPO: Walmart-owned Flipkart is relocating its HQ from Singapore to India, clearing regulatory hurdles to list domestically as early as 2026. Last valued at $36B, it’s the biggest startup yet to make this move.

• 💊 Pharma shake-up: Trump’s 100% levy on branded drugs rattled pharma stocks worldwide. India’s pharma index dropped 2%, with Sun Pharma sliding 3%. Global giants like Novartis, Roche, Bayer, and Merck also saw losses, though most Indian generics may escape due to US manufacturing footprints.

• 💸 IPO rush: Indian markets are bracing for 21 new issues worth ₹4,450 crore this week, including Glottis, Fabtech, Om Freight, Advance Agrolife, and WeWork India. The SME segment alone will launch 16 IPOs in just two days.

• 👶 FirstCry fined: The CCPA penalized FirstCry ₹2 lakh for advertising products as “tax-inclusive” but adding GST at checkout, calling it a deceptive practice.

🌍 Global Masala

• 📈 Wall Street’s “new normal”: With the S&P 500 near record highs, strategists say lofty stock valuations may be here to stay, supported by AI-driven productivity and resilient earnings. Fed Chair Powell admits markets look “highly valued,” echoing Greenspan’s 1996 warning, but history suggests timing a top often leads to missed rallies.

☕ The Big Brew: Trump’s Pharma Tariff Shock

From October 1, the US will slap a 💯% tariff on branded and patented drugs, unless the company is already 🏗️ building a plant in America.

💊 For India, which supplies a third of US medicine imports, the impact is more sentiment than substance. Most of our exports are low-cost generics, not branded drugs — but the news still rattled investors. The Nifty Pharma index sank 2%, with Sun Pharma (-3%), Biocon (-4.6%), and Laurus Labs (-6%) sliding.

📉 Analysts warn the real risk isn’t today’s tariff but what could follow:

• 🧬 Tariffs on complex generics or biosimilars would hit India hard.

• 🏭 US is pushing drugmakers to manufacture locally, squeezing contract drug makers.

• 💵 Global giants are rushing to announce multi-billion-dollar US plants to dodge tariffs.

🔎 What does this mean?

• 📊 For Indian pharma investors: Expect volatility, not collapse — generics are safe for now.

• 🌏 For India’s exporters: The US remains our biggest pharma buyer. If tariffs expand, the damage could be real.

• 💸 For American patients: Tariffs won’t cut drug prices — they could actually push costs up.

🚀 Startup Scoop

• 🚁 DroneAcharya turbulence: DroneAcharya slipped into a ₹15.1 crore H2 loss as revenue fell 72% sequentially. Expenses surged, disclosures were delayed, and SEBI issued notices. Shares fell nearly 3%, highlighting investor unease.

• 🌿 Kapiva bags $60M: D2C Ayurveda brand Kapiva raised $60 million (₹532 crore) in Series D funding, led by 360 ONE Asset and Vertex Growth. Funds will go toward R&D, manufacturing, marketing, and overseas expansion.

• 🍸 Quorum rebrands: Luxury members’ club The Quorum is now Q Collective and plans to invest ₹500–600 crore to expand into Bengaluru, Goa, Pune, and NCR, evolving into a lifestyle hospitality business beyond its existing clubs.

• 🛠 GaadiMech gears up: Jaipur-based GaadiMech secured ₹1.5 crore pre-seed from AJVC at a $2M valuation. It promises 90-minute express servicing with live tracking and genuine parts, and aims to expand beyond Rajasthan with an asset-light model.

🤔 Chai Break Trivia

🎲 Did you know The game of Monopoly was originally created to warn about the dangers of real estate monopolies — not to celebrate them. Ironically, it went on to become one of the best-selling board games in history.

🔮 What’s Brewing Next

• 🏦 RBI policy decision on October 1, with repo rate guidance in focus.

That’s a wrap on your Monday brew ☕✨. As September winds down, markets are bracing, startups are hustling, and tariffs are shaking things up. Take a deep breath, sip that chai, and remember — the week’s just getting started. See you tomorrow with more spice and stories! 🌶📩