September 4, 2025 | Deep Tech Capital, Domestic Breadth, and Semiconductor Renaissance.

Good Morning & Market Recap

Global markets traded with mixed sentiment overnight. US markets closed unevenly, with the Dow declining while the S&P 500 edged higher, supported by a favorable antitrust ruling for Alphabet. European equities closed higher, stabilizing after the recent bond-led selloff.

What’s Different Today?
The spotlight shifts decisively to India’s deep tech ecosystem. A landmark $1 billion+ alliance between major US and Indian venture capital firms has been formed to accelerate innovation in this space. This private capital push comes alongside the Indian government earmarking an additional ₹10,000 crore for deep tech growth, creating a powerful dual engine for long-term innovation.

Indian markets also closed with strong breadth yesterday, with the Nifty reclaiming the key 24,700 level amid triple-digit gains. Market internals remained healthy, with the NSE advance–decline ratio favoring bulls. Nearly 60% of Nifty 50 stocks have been upgraded since the start of 2025, pointing to improving fundamentals.

Key Watch Factors

• GIFT Nifty near 24,812, indicating a flat to mildly positive opening
• Mixed Asian cues: Nikkei down 0.35%, Hang Seng up 0.08%
• Flows: FII outflows of ₹1,666.46 crore, offset by strong DII buying of ₹2,495.33 crore

Tech Pulse

Top Stories

US–India VCs Form $1B+ Deep Tech Alliance
Eight major US and Indian venture capital firms, including Accel and Blume Ventures, have launched the India Deep Tech Investment Alliance, committing over $1 billion to fund deep tech startups. The initiative aims to bridge the long-standing funding gap and strengthen US–India technology collaboration.

Impact: Strongly positive sentiment for advanced technology startups.
Actionable Trigger: Watch for higher deal flow and valuation re-rating in unlisted deep tech companies.

Government Doubles Down on Deep Tech
The government has allocated an additional ₹10,000 crore under its Fund of Funds framework to support deep tech startups. This state-backed capital provides a safety net and accelerant for early-stage innovation.

Actionable Trigger: Monitor policy guidelines to identify priority sub-sectors.

Corporate Tech Developments

• Cashify–Google partnership expected to significantly expand Pixel’s footprint in India
• Cognizant’s agentic AI push: Deployment of 1,000 context engineers to industrialize AI adoption

Sectoral Impact:
IT hiring demand declined 10% in August, reflecting near-term caution. However, Technopark exports reached ₹14,575 crore in FY25, growing 10% YoY.

Actionable Watch: Track Urban Company’s IPO price band (likely ₹98–103) and IT management guidance in upcoming earnings calls.

Funding Radar

Significant Deals (Last 24 Hours)

• Urban Company: ₹1,900 crore IPO filing confirmed
• Jay Ambe Supermarkets: SME IPO scheduled for September 9–11 at ₹74–78
• Warburg Pincus: Exploring an ₹850 crore stake in Kalyan Jewellers’ Candere subsidiary

Sectoral Ripple: Retail and consumer services remain active, led by Urban Company. Jewelry is seeing renewed PE interest following Warburg’s move.

While no major tech IPOs emerged in the last 24 hours, listings from Current Infraprojects and Vikran Engineering kept primary markets active.

Market Movers & Watchlist

Yesterday’s Standouts

• Sectoral leaders: Capital Markets (+0.97%), Defence (+0.35%), Banking (+0.76%)
• Stock-specific: Syrma SGS surged 5% on Italy JV news; Kalyan Jewellers gained 2% on PE interest

Today’s Watchlist

• Borosil Renewables: Q1 results today
• TCS, RIL, JIOFIN: Strong technical setups
• Biocon, Coforge, Dabur: F&O strength

Key Levels:

• Nifty: Support at 24,400 | Resistance at 24,800

Data-Driven Watchlist (Not Recommendations)

• Autos / Consumption (GST): Screen names with high 12% / 28% exposure ahead of the September 22 effective date
• Metals: China output narrative aiding spreads; track delivery volumes
• Select Banks: Bank Nifty leading on bounce; prefer defined-risk structures

Illustrative Options (Contextual, Not Advice)

• Nifty: 24,700–24,900 call spread funded by 24,300 put sale only with strict risk management
• Bank Nifty: 54,000–54,600 call spread on sustained OI build above 54,000; avoid if VIX drops below 11 and breadth weakens

Quick Bytes (Global / Off-Radar)

• Japan: Nikkei 225 recovered above 42,400 on a tech rebound
• Bonds: Japan’s 10-year yield pulled back from 17-year highs, supporting equities
• BoJ: Governor Ueda reiterated rate-hike stance if growth and inflation play out as expected
• Gold: Trading near record highs at $3,383/oz, up 28.81% YTD

Deep Dive – India’s Semiconductor Renaissance

India has approved its sixth semiconductor manufacturing facility, an HCL–Foxconn joint venture, under the India Semiconductor Mission. Five additional units are already in advanced construction.

Key Data Points

• ₹629 billion (97% of allocated funds) committed
• 10 projects approved across fabs, 3D packaging, and OSAT
• First India-made chip expected by end-2025

Peer Comparison: Unlike China’s state-led model, India’s approach emphasizes private partnerships with global leaders such as Foxconn and Micron.

Investor Takeaway: Focus on electronic manufacturing services, infrastructure players supporting fab construction, and watch for sector rotation during Semicon India 2025 (Sep 2–4).

What to Watch Today

Macro Calendar

• No major domestic macro releases
• Global focus on US labor market data and China PMI trends

Earnings / Corporate

• Borosil Renewables Q1 results
• Multiple concalls including PVR Inox and JSW Cement

Regulatory / Events

• NSE options OI trends ahead of expiry
• RBI intervention watch around USD/INR

Quote of the Day

“Current volatility will not pose a big threat to the Indian market, and India will not experience a recession.”
— Satya Santosh, Market Analyst

Chart of the Day

FII vs DII Cash Flows (September MTD)
Despite three consecutive FII net selling sessions, DII buying kept headline indices positive, with improving breadth versus the prior session.

• FII Net: -₹4,255.65 crore
• DII Net: +₹9,389.77 crore
• Trend: Domestic institutions absorbing foreign selling pressure

Market Sentiment Indicators

• Put–Call Ratio: Neutral to mildly bullish
• India VIX: Elevated but stabilizing
• Breadth: Strong, with 60% of Nifty stocks upgraded YTD

Options Positioning: Watch 24,700–24,800 call concentration as a resistance zone.

Data-Driven Trade Ideas

Top Stocks to Watch

• TCS: Chart strength and IT reset potential
• Borosil Renewables: Q1 results catalyst
• Urban Company: IPO momentum
• Syrma SGS: Manufacturing JV with Elemaster (Italy)
• Kalyan Jewellers: PE-driven sentiment

Options Strategy: Nifty 24,700–24,800 call spread for a range-bound setup with defined risk.

Closing Remarks & Engagement

Forward Levels: Nifty must sustain above 24,700 for a move toward 25,000. Bank Nifty around 54,067 reflects ongoing sector rotation.

Tomorrow’s Focus: Monitor DII buying sustainability and global tech momentum post Alphabet-led rally.

Engage With Us:
What’s your view on India’s semiconductor opportunity? Share your thoughts for tomorrow’s Deep Dive.

Disclaimer

This newsletter is for informational and educational purposes only and does not constitute investment advice. Provisional data is subject to revision. Please consult a financial advisor before making investment decisions. Audit trails and source references are maintained for verification purposes.

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Audit Trail: All source links and data screenshots maintained for verification purposes.

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