September 3, 2025 | Yield Pressures, Tariff Uncertainty, and Semiconductor Ambition.

Good Morning & Market Recap

Global weakness weighed on Indian markets as GIFT Nifty signaled a negative start, trading nearly 40 points lower at 24,626. Overnight, Wall Street extended losses with the Dow down 0.55%, S&P 500 lower by 0.69%, and Nasdaq declining 0.82%.

The selloff was triggered by rising US Treasury yields and renewed uncertainty around Trump-era tariff policies, following a federal appeals court ruling that deemed most tariffs illegal.

Commodities & Currency

• USD/INR: Rupee closed at ₹88.08 against the US dollar on September 2
• Gold: 24-karat gold trading near ₹105,851 per 10 grams
• Crude Oil: Brent near $66.59/barrel, WTI around $63.88, as markets balance supply decisions against global growth fears

What’s Different Today?

Markets are approaching a critical inflection point as 30-year US Treasury yields near the psychologically important 5% level (currently around 4.97%), a zone not seen since July.

Domestically, the two-day GST Council meeting begins today, with expectations building around long-awaited rationalization of India’s multi-rate indirect tax regime.

Key Watch Factors

• US jobs data and the Fed’s Beige Book release
• Eurozone PPI and China Services PMI
• Domestic data: HSBC India PMI for August and money supply figures

Tech Pulse

India’s semiconductor momentum continues to build after PM Modi announced that India’s first domestically manufactured chip will be rolled out by end-2025, using 28–90 nanometer technology.

The government has committed ₹62,900 crore (97% of allocated funds) across 10 approved projects, spanning fabs, 3D packaging, and OSAT facilities, ahead of Semicon India 2025.

IT Sector Update:
IT stocks showed mixed performance. TCS expanded its strategic partnership with Scandinavian insurer Tryg through a €550 million, seven-year deal, while Wipro remained under pressure, declining 3.53% in recent sessions. The sector remains cautious amid second-order effects of US tariff uncertainty on client decision-making.

Actionable Trigger: Watch announcements from Semicon India 2025 (Sep 2–4) and TCS management commentary on large-deal momentum.

Funding Radar

VC fundraising momentum strengthened in 2025, with Indian VC funds raising over $3 billion, surpassing 2024’s $2.7 billion total.

IPO Watch:

• Tata Capital’s ₹17,200 crore IPO roadshow has commenced, positioning it as 2025’s largest public offering, with listing expected in the week of September 22.

Secondary Transactions:
Urban Company secondary deals are progressing, with SBI Mutual Fund, Permira, and others in advanced talks for ₹450 crore worth of shares, valuing the company at $1.8 billion.

Sectoral Ripple: Financial services IPOs are gaining traction, supported by strong retail participation, with 50+ mainboard IPOs launched so far this year.

Market Movers & Watchlist

Notable Gainers

• Shriram Finance: +2.86%
• Cipla: +2.58%
• Hero MotoCorp: +1.43%

Major Losers

• Kotak Mahindra Bank: -7.44%
• Bajaj Finance: -3.64%
• Wipro: -3.53%

Sector View:
Banking stocks remain under pressure, with Bank Nifty at 54,057, weighed down by rising yields and asset-quality concerns. Power Grid (+2.20%) and Nestle (+2.22%) emerged as defensive outperformers.

Actionable Levels

• Nifty: Support at 24,580 | Resistance at 24,850
• Bank Nifty: Critical support near 53,500

What to Watch Today

• New listings: Market debut of Vikran Engineering and Anlon Healthcare
• Global cues: Ongoing reaction to US tariff rulings and trade-sensitive sectors

Quick Bytes (Global / Off-Radar)

• Gold hysteria: Precious metal surged to a record $3,527.50, as September Fed rate-cut odds climb to 90%
• European surprise: Greece leads global equity performance with nearly 60% YTD returns, outperforming US markets
• Oil balancing act: Crude stabilizes around $68–69/barrel amid OPEC+ supply increases and seasonal demand shifts

Deep Dive – India’s Semiconductor Ambition

India’s semiconductor ecosystem is undergoing a generational shift, with the government’s ₹76,000 crore incentive package translating into tangible execution.

The Design Linked Incentive (DLI) scheme has enabled 23 chip design projects, including startups such as Vervesemi Microelectronics, which are developing chips for defense, aerospace, and EV applications.

Global talent migration from Taiwan, Singapore, and Malaysia is strengthening India’s design and manufacturing capabilities. The CG-Semi facility in Gujarat is preparing to roll out the first “Made-in-India” chip, with projects spanning Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh, and cumulative investments exceeding ₹1.6 lakh crore.

Investor Takeaway: The semiconductor theme offers a multi-year structural growth opportunity. Focus on Tata Electronics, listed semiconductor equipment players, and emerging fabless startups receiving VC backing.

What to Watch Today

• Earnings: Borosil Renewables, Eros International Media, Taylormade Renewables
• Corporate actions: Clean Science & Tech (ex-dividend ₹40), Olectra Greentech (₹1 per share)
• Global data: US jobless claims, Eurozone PPI, China Services PMI
• Domestic data: HSBC India PMI (August), money supply figures

Quote of the Day

“The combination of a weakened economic outlook and anticipation of U.S. rate cuts is enhancing the appeal of precious metals. There is also a growing crisis of confidence in dollar assets.”
— Kyle Rodda, Financial Market Analyst, Capital.com

Chart of the Day

GIFT Nifty Futures Trend: Trading near 24,626 (-40 points, -0.16%), indicating a weak opening bias. Key resistance stands at 24,700, with support near 24,550.

Disclaimer

This newsletter is for informational purposes only and should not be construed as investment advice. Please consult qualified financial advisors before making investment decisions. Past performance does not guarantee future results.

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