August 28, 2025 | Cautious Open, Nvidia in Focus, and AI Regulation Signals

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Oorjita FinAI– Morning Market Brief

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Thursday, August 28, 2025 | 8:08 AM IST

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Good Morning & Market Recap

Indian markets may open cautiously today, as global signals appear mixed. GIFT Nifty futures point to a flat or slightly negative start, trading near 24,649, while Tuesday’s Nifty closed around 24,700. Today’s focus will be on Nvidia’s earnings and global tech sentiment, as well as how Indian IT stocks respond. The rupee remains steady at 87.17 against the dollar, providing some reassurance despite international uncertainties.

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Highlights from the last 24 hours:

• S&P 500 reached a record close; investors are watching Nvidia and upcoming US data releases.

• Asia started cautiously; Indian markets look to GIFT Nifty’s mild upward bias after Tuesday’s tariff-driven selling.

• The US has doubled tariffs on Indian goods (up to 50%), keeping pressure on the INR ahead of F&O expiry.

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Key watch factors:

• US Federal Reserve commentary following Powell’s recent speech

• Nvidia’s AI guidance and its effect on Indian tech stocks

• Progress of monsoon withdrawal, influencing rural demand stocks

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Tech Pulse

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Global Tech Highlights:

• Nvidia exceeded expectations, though uncertainty remains regarding China as trade tensions continue.

• Google is investing an additional $9 billion in Virginia AI infrastructure through 2026.

• HP Inc. surpassed Q3 estimates, boosted by AI PC adoption and the Windows 11 upgrade cycle.

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Indian Tech Developments:

• HCLTech chairman Roshni Nadar has stated that AI will enhance jobs, not replace them, in contrast to sector-wide layoffs.

• TCS has appointed Amit Kapur to lead its new AI and services transformation unit.

• Technopark recorded ₹14,575 crore in exports for FY25, posting 10% growth with over 500 IT companies.

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Sector sentiment is mixed:

Global AI optimism is balanced by domestic job concerns. Key stocks to
watch include TCS, Infosys, and HCLTech as they respond to Nvidia’s guidance.

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Funding Radar

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Notable Recent Deals:

• QpiAI raised $32 million in Series A funding for AI and quantum computing solutions.

• MedGenome secured $47.5 million in Series E for healthcare genomics.

• Jumbotail completed a $120 million Series D to expand its B2B marketplace.

• BhaoBhao (pet-grooming at-home services): Completed a $200k angel round and plans to expand.

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IPO Activity:

Recent listings have shown mixed results: Sawaliya Food rose 98% post-listing, while Studio LSD dropped 28%. Healthcare and AI startups are drawing premium valuations, but traditional sectors face pricing pressures.

• Classic Electrodes (SME): Allotment basis expected today; GMP around 20%.

• Ardee Engineering: SEBI has approved a ₹580 crore IPO (₹500 crore fresh + ₹80 crore OFS).

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Market Movers & Watchlist

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Index Levels:

• Nifty 50: Trading in the 24,700–24,970 range (NSE: 24,967.75; Trading data: 24,700.40)

• Sensex: Around 80,787

• Bank Nifty: 55,139.30

Sector Focus:

• IT stocks reacting to Nvidia’s earnings

• Banking sector anticipated to move on credit growth data

• Auto sector ahead of monthly sales numbers

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Key levels to watch:

Nifty support at 24,650 and resistance at 24,850. Export-focused sectors (textiles, gems & jewelry, select chemicals) face tariff pressure and may see declines during rallies. IT exporters benefit from rupee weakness, despite softening global conditions; monitor commentary and order books from Infosys and TCS.

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Quick Bytes (Global/Off-Radar)

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• YouTube and Fox have reached a short-term extension, preventing service disruption for subscribers.

• Snowflake raised its fiscal 2026 revenue forecast on strong demand for AI data analytics.

• EchoStar shares surged 80% following AT&T’s $23 billion wireless spectrum deal.

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Deep Dive – India’s AI Regulatory Framework Evolution

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• The government's cabinet-approved chip program now totals approximately ₹1.6 lakh crore across about ten projects, including fabs and OSAT units. The flagship Tata-Powerchip fab at Dholera (Gujarat), together with OSAT capacity expansions, is drawing investor interest in specialty gases, chemicals, clean-room EPC, power infrastructure, and advanced packaging.

• Actionable: Investors should watch Indian EMS, ATMP/OSAT proxies, precision tooling, and utility EPC companies with clear state incentives.

• The RBI’s new AI framework requires banks to reassess model governance and risk controls - expect spending to shift to AI operations and compliance tools. Watch for bank disclosures on AI audits.

• The Online Gaming Bill is awaiting presidential assent, with real-money gaming operators monitoring compliance timelines. Watch for official notifications from the Gazette and MeitY.

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Key Regulatory Developments:

• March 2024 directive mandating government approval for deploying AI models

• Draft AI regulation report is prepared but not yet published

• Tiered compliance framework under consideration based on platform scale

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Investment Outlook:

Companies with robust AI governance are well positioned to benefit as regulations become clearer. India’s approach to AI regulation is similar to the EU’s measured stance, in contrast to China’s restrictive policies.

In the long run, established IT services firms with compliance capabilities stand to gain, while pure AI startups may face challenges.

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What to Watch Today

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Macro Events:

• US economic data releases (jobless claims)

• Comments from European Central Bank officials

• India’s core sector data expectations

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Earnings/Corporate:

• IT sector management commentary on Nvidia’s impact

• Auto sector monthly sales updates

• Banking sector credit growth metrics

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Quote of the Day

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“Almost 40–50% of white-collar jobs that exist today might cease to exist. This could signify the end
of the middle class and the consumption narrative.”

— Arindam Paul, Founder, Atomberg Technologies (on AI’s impact on India’s middle class)

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Disclaimer:

This newsletter is for informational purposes only and should not be considered investment advice. Please consult your financial advisor before making investment decisions. Market data may change; always verify with official sources before trading.

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