India's Semiconductor Ambition

Good Morning & Market Recap

Global weakness weighs on Indian markets as GIFT Nifty signals a negative start, trading 40 points lower at 24,626. Overnight, Wall Street extended losses with the Dow falling 0.55%, S&P 500 down 0.69%, and Nasdaq dropping 0.82%. The selloff was triggered by rising Treasury yields and renewed concerns over Trump's tariff policies following a federal appeals court ruling that deemed most tariffs illegal.

Commodities & Currency

• USD/INR: The Rupee closed at ₹88.08 against the US Dollar on September 2.
• Gold: The price for 24-karat gold in India is trading around ₹105,851 per 10 grams this morning.
• Crude Oil: Brent crude is hovering near $66.59 per barrel, while WTI crude is near $63.88, as markets weigh supply decisions against global growth fears

Tech Pulse

Semiconductor surge continues as PM Modi announced India will produce its first domestically manufactured chip by end-2025, using 28-90 nanometer technology. The government has committed ₹62,900 crores (97% of allocated funds) across 10 approved projects, including fabs, 3D packaging, and OSAT facilities ahead of Semicon India 2025 event.

IT stocks mixed performance with TCS expanding its strategic partnership with Scandinavian insurer Tryg in a €550 million, seven-year deal. However, Wipro faced pressure, declining 3.53% in recent sessions. The sector remains cautious amid second-order effects from US tariff uncertainties affecting client sentiment.

Funding Radar

VC funding momentum builds with Indian VC fundraising crossing $3 billion in 2025, surpassing 2024's $2.7 billion total. 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.

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

Sectoral ripple effects: Financial services IPOs gaining traction as retail investor appetite remains strong, with over 50 mainboard IPOs already launched this year.

Market Movers & Watchlist

Notable gainers include Shriram Finance (+2.86%), Cipla (+2.58%), Hero MotoCorp (+1.43%). Major losers feature Kotak Mahindra Bank (-7.44%), Bajaj Finance (-3.64%), and Wipro (-3.53%).

Banking sector under pressure with Bank Nifty at 54,057, facing headwinds from rising yields and asset quality concerns. Power Grid (+2.20%) and Nestle (+2.22%) emerged as defensive plays.

Actionable watch levels: Nifty support at 24,580, resistance at 24,850. Bank Nifty critical support at 53,500.

What to Watch Today

• New Listings: Keep an eye on the market debut of several companies, including Vikran Engineering and Anlon Healthcare.
• Global Cues: Continued market reaction to the U.S. tariff ruling and its impact on trade-sensitive sectors.

Quick Bytes (Global/Off-Radar)

• Gold hysteria: Precious metal hits record $3,527.50 as Fed rate cut bets intensify to 90% probability for September 17.
• European surprise: Greece leads global equity gains 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 experiencing a generational shift with the government's ₹76,000 crore incentive package yielding tangible results. The Design Linked Incentive (DLI) scheme has enabled 23 chip design projects, with startups like Vervesemi Microelectronics developing chips for defense, aerospace, and EVs.[4]

Global talent migration from Taiwan, Singapore, and Malaysia is strengthening India's capabilities, while the CG-Semi facility in Gujarat prepares to roll out the first 'Made-in-India' chip. Projects span Gujarat, Assam, UP, Punjab, Odisha, and Andhra Pradesh with cumulative investments exceeding ₹1.6 lakh crore.

What to Watch Today

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

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 (September 2, 2025)

Chart of the Day

GIFT Nifty Futures Trend: Currently at 24,626 (-40 points, -0.16%), indicating weak opening for domestic markets. Key resistance at 24,700, support at 24,550.

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

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