September 2, 2025 | GDP Surprise, Bank Strength, and AI Infrastructure Momentum.

Good Morning & Market Recap

Indian markets snapped a three-day losing streak on Monday, with benchmark indices posting strong gains. The Nifty 50 surged 0.81% to close at 24,625.05, while the Sensex rose 0.70% to 80,364.49.

Asian markets opened weaker this morning, while US futures point to a potential rebound after last week’s tech-led sell-off.

What’s Different Today?
India’s Q1FY26 GDP growth surged to 7.8%, a five-quarter high and well above the RBI’s 6.5% forecast. Manufacturing PMI also strengthened to 59.3 in August, reinforcing the narrative of sustained domestic economic momentum.

A key divergence is the resilience of Indian banking stocks, which hit record highs despite global uncertainty. This highlights strong domestic sentiment even as international markets remain cautious around US tariff policies and upcoming jobs data.

Key Watch Factors

• Federal court ruling on Trump-era tariffs, adding uncertainty to global trade flows
• Fed independence concerns, as legal battles involving Lisa Cook intensify
• OPEC+ meeting this week on production policy amid rising geopolitical risk
• Commodities: Gold remains near record highs, signaling continued safe-haven demand

Tech Pulse

Global Tech Headlines

• OpenAI’s India Expansion: The ChatGPT parent is scouting local partners for a 1-gigawatt data center in India, coinciding with rising US–India trade tensions
• Semiconductor Setback: Samsung and SK Hynix shares fell after Washington revoked approvals for sourcing US chip-making equipment for China plants
• Chinese Tech Surge: Alibaba jumped nearly 19% in Hong Kong, its biggest single-day gain since early 2022, on cloud optimism and reports that DeepSeek selected Huawei chips for AI training

Sector Impact: The Indian IT sector gained 1.59% yesterday, supported by global AI infrastructure investments and positive spillovers for domestic tech names.

Actionable Trigger: Track announcements around OpenAI’s India partnerships and any regulatory response related to data localization.

Funding Radar

Active IPO Pipeline

• Anlon Healthcare: Opens today (September 2) with a ₹86–91 price band
• Vikran Engineering: Recently closed, trading at ₹118 in the grey market (+21.65% premium)
• SME Segment: Heavy activity, including Anondita Medicare (443.5x oversubscribed)

Deal Flow Update:
CityMall raised $47 million at a flat valuation, while Elev8 Venture Partners closed its maiden $160 million fund. Overall, August startup funding fell 48% YoY to $914 million.

Global M&A Pulse:

• Keurig Dr Pepper plans to acquire JDE Peet’s for €18.7B, lifting JDE shares by 17%
• Puma surged 16% on reports of a potential sale

These deals signal that strategic consolidation remains a dominant global theme, with ripple effects expected across consumer and retail sectors.

Sectoral Impact: Healthcare and engineering names are seeing renewed investor interest via the SME route.

Market Movers & Watchlist

Yesterday’s Leaders

• Mahindra & Mahindra: +2.87% to ₹3,290
• Bajaj Auto: Strong auto momentum (+2.8%)
• Trent: Consumer discretionary strength
• Transport Sector: Led gains with +3.19%

Laggards

• Sun Pharma: Mild pharma weakness
• ITC: Consumer staples pressure
• Hindustan Unilever: FMCG concerns

Key Levels to Watch

• Nifty: Support at 24,500 | Resistance at 24,850
• A decisive breakout above 24,850 could open the path toward 25,250–25,500

Banking Theme in Focus:
The rally in Indian bank stocks is structurally driven rather than tactical. RBI’s decision to allow lower-than-expected rates on certain deposits and reduce the run-off rate for wholesale deposits directly supports profitability. According to IIFL Capital, these measures could lift bank net profits by 1%–4%.

Investor Takeaway: Compared to global peers facing economic headwinds, Indian banks remain in a sweet spot, supported by strong domestic credit growth and favorable regulation. Focus remains on large-cap PSU and private banks within the Nifty Bank index.

Quick Bytes (Global / Off-Radar)

• Europe: STOXX 600 aerospace & defense index jumped 2.1% after EU comments on Ukraine troop deployment
• Precious Metals: Gold rose for the sixth consecutive session, the longest streak since April 2024
• Australia: Social media age-verification trials flagged accuracy issues ahead of proposed teen bans
• Japan: Japan Post Bank plans to launch a digital yen by FY2026

Deep Dive – India’s AI Infrastructure Boom

OpenAI’s proposed 1-gigawatt data center marks a watershed moment for India’s digital infrastructure ambitions. The scale rivals some of the world’s largest facilities and reflects confidence in India’s regulatory environment despite global trade tensions.

Key Statistics

• India’s data center capacity expected to triple by 2030
• Government’s ₹76,000 crore semiconductor incentive package gaining traction
• 59.3 Manufacturing PMI underpins a strong industrial base

Peer Comparison: As China faces tighter chip restrictions, India is emerging as a preferred AI infrastructure hub for Western technology companies.

Investor Takeaway: Structural long-term opportunity across IT services, data-center real estate, and power infrastructure stocks.

What to Watch Today

Macro Calendar

• US markets reopen after Labor Day
• China services PMI release
• RBI Governor Das speech at 2:30 PM IST

Earnings / Corporate

• Multiple SME IPO listings
• Market digestion of Q1 GDP surprise into sector allocations

Regulatory

• Fed Governor Lisa Cook’s legal arguments presentation
• Stephen Miran’s confirmation hearing (Thursday)

Quote of the Day

“Gold has been quietly but consistently moving higher… spurring expectations that the FOMC will cut rates and keep them lower for longer, which is good for gold.”
— Tai Wong, Independent Metals Trader

Chart of the Day

Indian GDP Growth Trajectory
India’s Q1FY26 GDP growth of 7.8% marks the strongest print in five quarters, significantly outpacing the RBI’s 6.5% forecast and reinforcing economic resilience amid global uncertainty.

Disclaimer

This newsletter is for informational purposes only and does not constitute investment advice. Market data is sourced from multiple exchanges and verified through cross-referencing. Past performance does not guarantee future results. Please consult qualified financial advisors before making investment decisions. Oorjita FinAI Services does not guarantee the accuracy of third-party data and is not liable for any trading losses.

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