Author: Sreelatha M

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Starship test boosts SpaceX’s reusability ambitions

SpaceX has hailed its 13th Starship test flight as a major success and is now aiming to catch the Starship spacecraft with the launch tower’s mechanical arms during its next mission.

The latest flight successfully deployed 20 next-generation Starlink satellites, restarted a Raptor engine in space and completed a controlled splashdown in the Indian Ocean.

Although the Super Heavy booster was lost during landing, the mission provided valuable data on Starship’s heat shield and reusability.

The progress brings SpaceX closer to its goal of developing a fully reusable rocket for future Moon and Mars missions. Read More

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Beyond

Oil prices drop 5% after US-Iran attack pause

Global oil prices fell sharply on Monday after the United States and Iran agreed to temporarily halt military attacks, raising hopes of a diplomatic breakthrough and easing concerns over potential disruptions to global crude oil supplies. The development triggered a broad sell-off in the energy market, with Brent crude and West Texas Intermediate (WTI) both posting their steepest single-day declines in weeks.

The latest correction came after several sessions of strong gains driven by fears that escalating tensions between Washington and Tehran could threaten oil production and exports from the Middle East. With both countries signalling a pause in hostilities, traders moved quickly to unwind positions that had factored in a significant geopolitical risk premium.

Brent crude, the international benchmark for crude oil prices, dropped nearly 5% to trade around $91 per barrel, while WTI crude also fell sharply to about $87 per barrel. The decline reversed a large part of last week’s rally, when crude prices surged amid concerns that the conflict could spill over into the broader Gulf region.

The Middle East accounts for a significant share of global oil production, making any military escalation in the region a major concern for energy markets. Investors had feared that continued attacks could disrupt supplies from key producers or threaten shipping through the Strait of Hormuz, one of the world’s busiest energy corridors. Nearly one-fifth of the world’s crude oil passes through the strategic waterway, making it vital to global energy security.

The temporary suspension of military strikes has eased those fears, at least for now. Although the agreement is not a formal ceasefire, it has reduced immediate concerns about supply disruptions and encouraged investors to shift their focus back to market fundamentals.

Energy analysts said the sharp decline in Brent crude prices reflects improving market sentiment rather than weakening demand. Over the past week, traders had added a substantial geopolitical premium to oil prices in anticipation of possible disruptions to exports from the region. Monday’s decline suggests much of that premium has now been removed following signs of de-escalation.

Market participants, however, remain cautious. Analysts warn that the situation remains fragile, and any renewed military action could quickly send oil prices climbing again. The conflict has not been resolved, and the current pause is viewed as a temporary step rather than a lasting peace agreement.

Apart from geopolitical developments, investors are also monitoring the global economic outlook. Stronger economic activity generally boosts demand for crude oil, while slowing growth can weigh on prices. This week, traders are expected to closely watch economic indicators from the United States and China, the world’s two largest economies, for fresh clues about future energy demand.

Another key factor influencing the global oil market is the production strategy of the OPEC+ alliance, led by Saudi Arabia and Russia. The producer group has maintained disciplined output cuts over the past several months to support prices despite concerns over slowing demand. Analysts believe any future changes to OPEC+ production targets could have a significant impact on the direction of crude oil prices.

For India, the world’s third-largest importer of crude oil, the latest decline comes as welcome relief. The country imports more than 85% of its crude oil requirements, making it highly sensitive to fluctuations in international oil prices. A sustained fall in Brent crude could help reduce India’s import bill, narrow the current account deficit and ease inflationary pressures.

Lower crude oil prices also have wider economic benefits. Industries such as aviation, logistics, shipping, manufacturing and chemicals rely heavily on petroleum products, and lower input costs can improve profitability. Reduced fuel costs may also help bring down transportation expenses, potentially easing the prices of several goods and services over time.

However, consumers should not expect an immediate reduction in petrol and diesel prices. Retail fuel prices in India depend on several factors, including international crude prices, exchange rates, taxes, freight costs and refining margins. Oil marketing companies typically assess these variables before making any revisions to pump prices.

Global equity markets responded positively to the easing geopolitical tensions, with investors viewing the development as a sign that a broader regional conflict may be avoided. At the same time, energy stocks faced pressure as falling oil prices are generally expected to reduce earnings for exploration and production companies.

Financial analysts believe volatility in the energy market is likely to persist over the coming weeks. While the pause in attacks has improved sentiment, the geopolitical situation remains unpredictable. Any breakdown in diplomatic efforts or fresh military escalation could quickly restore the risk premium that had supported oil prices in recent days.

The latest market movement highlights how closely crude oil prices, Brent crude, WTI crude, global energy markets, Middle East tensions, US-Iran relations, and oil supply concerns are interconnected. Even a temporary easing of hostilities was enough to trigger a sharp correction, underscoring the sensitivity of commodity markets to geopolitical developments.

For now, traders appear cautiously optimistic that diplomacy will prevail over conflict. If negotiations continue and tensions remain under control, oil prices may stabilise in the near term. However, with geopolitical uncertainty still looming over one of the world’s most critical oil-producing regions, the global crude oil market is expected to remain highly volatile, keeping investors, governments and businesses on alert.

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Corporate

HCLTech announces ₹14,250 cr AI investment in Odisha

HCLTech has announced a massive investment of ₹14,257 crore to set up its first artificial intelligence (AI) data centre in Odisha, marking one of the biggest private sector investments in India’s AI infrastructure. The project, being developed in partnership with AI startup Sarvam and the Odisha government, is expected to strengthen India’s sovereign AI capabilities while positioning the state as a major technology and innovation hub.

The announcement was made during the Odisha AI Summit 2026, where HCLTech signed a memorandum of understanding (MoU) with the state government. The proposed AI data centre will be established at the upcoming Odisha Sovereign AI Park in Bhubaneswar, a dedicated technology ecosystem designed to support next-generation AI research, computing and innovation.

The investment is seen as a significant step towards building India’s own AI infrastructure at a time when governments and businesses are increasingly looking for secure, locally hosted computing facilities. The project also aligns with the Centre’s broader push for Digital India, AI innovation, and data sovereignty, reducing dependence on overseas infrastructure for critical AI workloads.

According to HCLTech, the ₹14,257-crore project includes support and incentives from the Odisha government. The company said the facility will provide advanced computing power required for training and deploying large AI models while enabling enterprises, startups and public institutions to build AI-powered applications within India.

Unlike conventional data centres that mainly provide cloud storage and computing services, the new AI data centre will be equipped with specialised high-performance computing systems capable of handling complex generative AI models and large-scale machine learning applications. These capabilities are becoming increasingly important as organisations adopt AI across sectors such as healthcare, banking, manufacturing, education, agriculture and governance.

The project will combine HCLTech’s expertise in enterprise technology services with Sarvam’s indigenous AI foundation models. Sarvam, one of India’s leading AI startups, has been working on developing multilingual large language models and AI systems tailored to Indian languages and local use cases.

Together, the two companies plan to create AI solutions that address the specific needs of Indian enterprises and government agencies. The focus will be on delivering secure AI services while ensuring that sensitive data remains within the country, an important requirement for sectors dealing with confidential public and financial information.

HCLTech Chairperson Roshni Nadar Malhotra described the investment as a landmark initiative that reflects the company’s commitment to India’s AI ambitions. She said HCLTech has played a key role in India’s technology journey over the years and now aims to contribute to the country’s emerging sovereign AI ecosystem through long-term investments and strategic partnerships.

She added that the collaboration with the Odisha government and Sarvam would help create an AI ecosystem that supports innovation while enabling India to develop world-class technology capabilities.

HCLTech CEO and Managing Director C. Vijayakumar said the project represents a major milestone in the company’s full-stack AI strategy. He noted that enterprises worldwide are rapidly increasing investments in artificial intelligence, creating strong demand for reliable AI infrastructure.

According to him, Odisha has emerged as an attractive destination for advanced technology investments because of its progressive industrial policies, skilled workforce and improving digital infrastructure. He said the company looks forward to building a robust AI ecosystem in the state that can support customers across India and global markets.

Sarvam Co-founder Vivek Raghavan said the partnership would help accelerate India’s journey towards becoming a global AI leader. He noted that access to domestic computing infrastructure is essential for developing AI models designed specifically for India’s languages, businesses and public services.

Industry experts believe the project will play a crucial role in reducing India’s dependence on foreign AI infrastructure. Most advanced AI models today rely on expensive computing facilities located outside the country. Building high-performance AI infrastructure within India is expected to improve data security, lower operational costs and encourage domestic AI innovation.

The Odisha government has also described the investment as a milestone in its efforts to transform the state into a major technology destination. Officials believe the AI data centre will attract additional investments in cloud computing, semiconductor technologies, AI research and digital services, creating a larger innovation ecosystem around Bhubaneswar.

Alongside the AI data centre, HCLTech has signed a separate agreement with the state government to establish a Global Technology Center in Bhubaneswar. The new campus will have the capacity to accommodate around 5,000 technology professionals and is expected to become operational by 2028.

The technology centre will support software engineering, AI development, cloud services and digital transformation projects while creating high-skilled employment opportunities for engineers and technology graduates from Odisha and neighbouring states.

The twin projects are expected to significantly boost the state’s digital economy while encouraging startups, research institutions and academic organisations to collaborate on AI innovation. Industry observers believe the presence of advanced computing infrastructure will make it easier for Indian startups to build and test AI products without relying heavily on overseas cloud providers.

The announcement also follows HCLTech’s recent strategic investment in Sarvam, reinforcing the company’s ambition to expand beyond traditional IT services into AI platforms, enterprise AI applications and next-generation digital infrastructure.

Also Read: India eases FDI rules for e-commerce exports

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Corporate

Bank of Baroda posts 72% profit decline in Q1

State-owned Bank of Baroda (BoB) reported a sharp 72% year-on-year decline in standalone net profit for the first quarter of FY27, as a one-time legal settlement linked to the NMC Health case significantly impacted its earnings. Despite the steep drop in profit, the bank delivered a healthy operational performance, with steady growth in net interest income (NII), loans and deposits, highlighting the strength of its core banking business.

The public sector lender posted a standalone net profit of ₹1,278 crore for the April-June quarter, compared with ₹4,541 crore in the corresponding period last year. On a sequential basis as well, profit declined sharply from the March quarter. However, the fall was not due to weakness in lending or business operations but was largely driven by an exceptional one-time expense.

The biggest factor behind the earnings decline was a ₹5,680 crore exceptional charge that the bank recognised during the quarter after reaching a settlement in the long-running NMC Health litigation. Earlier this month, Bank of Baroda agreed to pay $600 million under an out-of-court settlement to resolve claims related to the collapse of UAE-based healthcare company NMC Health.

The bank clarified that entering into the settlement does not amount to an admission of liability or wrongdoing. Instead, it said the agreement was aimed at bringing closure to a legacy legal issue that had remained unresolved for several years. The settlement removes a major overhang that had created uncertainty for investors and allows the bank to move forward without prolonged legal proceedings.

Although the exceptional charge weighed heavily on profitability, the bank’s underlying business continued to perform well. Net Interest Income (NII), which measures the difference between interest earned on loans and interest paid on deposits, increased by around 10% year-on-year. The growth reflected healthy credit demand and the bank’s ability to expand its interest-earning assets despite a competitive banking environment.

Bank of Baroda also recorded strong business growth during the quarter. Gross advances rose 17.4% year-on-year, supported by healthy demand across retail, corporate, agriculture and overseas loan segments. The retail portfolio continued to remain a key growth driver, while corporate lending also showed resilience amid improving economic activity.

Deposits also maintained a healthy trajectory, increasing 13.8% year-on-year. The steady rise in deposits indicates continued customer confidence and provides the bank with a strong and stable funding base to support future lending growth. Strong deposit mobilisation remains a key focus area for banks as competition for low-cost deposits continues across the sector.

The bank reported total income of ₹36,681 crore during the quarter, registering modest growth over the previous year. Higher interest income contributed to the increase, although operating profit came under pressure because of the exceptional settlement cost and higher operating expenses.

Another encouraging aspect of the quarterly performance was the bank’s asset quality, which remained stable. Gross and net non-performing asset (NPA) ratios continued to stay under control, reflecting prudent lending practices and effective credit monitoring. Stable asset quality is particularly significant at a time when banks are balancing strong credit growth with cautious risk management.

In another important development, the bank’s board approved an increase in the borrowing limit for its overseas operations. The ceiling for raising funds through international borrowings has been doubled from $5 billion to $10 billion. The enhanced limit is expected to provide greater flexibility in accessing global funding markets and supporting the bank’s expanding international business.

Market analysts said the June-quarter results should be viewed in the context of the one-time settlement rather than as a reflection of the bank’s operational performance. Excluding the exceptional charge, the lender’s core fundamentals remain healthy, supported by steady loan growth, improving business volumes and stable asset quality.

Investors are now expected to closely monitor key financial indicators such as net interest margin (NIM), credit growth, deposit mobilisation, operating profitability and asset quality in the coming quarters. These metrics will provide a clearer picture of the bank’s earnings trajectory after the impact of the settlement fades.

The resolution of the NMC Health litigation is also being viewed positively by several market observers. With the legal uncertainty behind it, Bank of Baroda can now focus more aggressively on business expansion, digital banking initiatives, customer acquisition and improving shareholder returns. The removal of this legacy issue is expected to strengthen investor confidence over the medium term.

Industry experts believe the exceptional charge is unlikely to have a lasting impact on the bank’s long-term growth story. India’s banking sector continues to benefit from healthy credit demand, improving economic activity and rising consumption, creating favourable conditions for lenders with strong balance sheets and diversified loan portfolios.

While the June-quarter profit numbers may appear weak at first glance, the broader picture remains far more encouraging. Bank of Baroda’s strong loan growth, healthy net interest income, stable asset quality and expanding deposit base demonstrate that its core banking franchise remains resilient. With the NMC settlement now behind it and a major legal uncertainty resolved, the public sector lender is expected to focus on strengthening profitability, expanding its lending business and delivering sustainable growth in the quarters ahead.

Also Read: Adani Group rejects airline venture speculation

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EU slaps $1 bn fine on Google again

Google has been fined €1.02 billion (around $1.18 billion) by the European Union for violating the bloc’s Digital Markets Act (DMA), marking one of the biggest penalties imposed under the landmark tech regulation.

EU regulators said the company abused its dominant market position by giving preferential treatment to its own services, undermining fair competition. Google said it disagrees with the decision and plans to challenge the fine.

The ruling adds to the company’s ongoing regulatory challenges in Europe and reinforces the EU’s efforts to curb anti-competitive practices among major technology firms and promote fair digital markets.

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Corporate

Sensex falls 330 points, Nifty nears 23,770

Indian equity markets ended lower on Friday as investors booked profits amid weak global cues and cautious sentiment ahead of key economic developments. Selling in heavyweight banking and information technology stocks dragged the benchmark indices lower, outweighing gains in select pharmaceutical shares.

The BSE Sensex declined 331 points, or 0.43%, to settle at 76,059, while the NSE Nifty 50 slipped 102 points, or 0.43%, to close at 23,767. The benchmarks traded in negative territory for most of the session as investors remained cautious amid mixed global signals and corporate earnings.

Among the top gainers on the Sensex were Cipla, Sun Pharma, Asian Paints and Nestle India, supported by buying in defensive sectors such as pharmaceuticals and consumer goods. These stocks attracted investor interest as markets turned risk-averse.

On the other hand, Infosys, HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Axis Bank were among the biggest losers of the day. Selling in these heavyweight stocks put significant pressure on the benchmark indices and prevented any meaningful recovery during the session.

Market experts said profit booking after the recent rally, coupled with weak global sentiment, prompted investors to reduce exposure to large-cap stocks. Banking and IT shares witnessed the sharpest selling as traders turned cautious ahead of upcoming global economic data and further corporate earnings announcements.

Global markets also offered little support. Asian equities largely closed lower following mixed cues from Wall Street, while uncertainty surrounding global growth, trade developments and interest rate expectations kept investor sentiment subdued. Volatility in crude oil prices also added to market concerns.

Higher crude oil prices remain a key risk for India, as rising import costs can increase inflationary pressures and impact corporate margins. Investors therefore remained cautious despite strong domestic economic fundamentals.

The broader market mirrored the weakness seen in benchmark indices. Mid-cap and small-cap stocks also witnessed selling pressure, although declines were relatively contained in some sectors. Analysts noted that investors preferred quality large-cap stocks with strong earnings visibility while avoiding riskier bets.

Sector-wise, banking, financial services and information technology emerged as the biggest losers, while pharmaceutical and FMCG stocks outperformed the broader market. Defensive buying in healthcare shares helped limit the overall decline.

Foreign institutional investors (FIIs) continued to adopt a cautious stance amid global uncertainties, while domestic institutional investors provided selective support. Analysts believe institutional fund flows will remain an important driver of market direction in the coming weeks.

Investors are also closely tracking the ongoing corporate earnings season, with quarterly results expected to influence stock-specific movements. Strong earnings from select companies could help improve market sentiment, while weaker-than-expected numbers may keep volatility elevated.

The primary market, meanwhile, continues to remain active, with several large IPOs attracting healthy investor interest. Market participants believe robust participation in public issues reflects confidence in India’s long-term economic growth despite short-term fluctuations in secondary markets.

Analysts said Friday’s decline should be viewed as a normal market correction rather than a sign of weakening fundamentals. India’s economy continues to benefit from strong domestic consumption, steady infrastructure spending and improving corporate performance, which are expected to support equities over the long term.

Going forward, investors will monitor global market trends, crude oil prices, foreign fund flows, inflation data and central bank commentary for fresh cues. Corporate earnings and macroeconomic indicators are also expected to determine the near-term direction of the stock market.

Market participants will now turn their attention to upcoming corporate earnings, FII flows, global cues and crude oil prices for fresh direction. Analysts expect these factors to shape investor sentiment and determine whether the benchmark indices can regain momentum in the week ahead.

Also Read: Infosys names Ashiss Kumar Dash CEO-Designate

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Adani Group rejects airline venture speculation

The Adani Group has categorically denied reports claiming that it is preparing to launch an airline in India, calling the speculation “factually incorrect” and without any basis. The clarification came after media reports suggested that the conglomerate was exploring an entry into the commercial aviation business.

In an official statement issued on Thursday, an Adani Enterprises spokesperson said the company is not considering or evaluating any proposal to start an airline. The group stressed that the reports circulating in sections of the media and on social platforms were inaccurate and urged stakeholders not to rely on unverified information.

The statement puts an end to speculation that had gained momentum over the past few days. Reports had claimed that the Adani Group was planning to establish a new airline or acquire a stake in an existing carrier to expand its footprint in the aviation sector. Some reports also suggested that the company had sought regulatory changes that could make such a move possible.

However, the company has now made it clear that there are no plans to enter the airline business at present. It described the reports as entirely baseless and reiterated that no proposal is under discussion within the group.

The speculation attracted widespread attention because Adani has become a major player in India’s aviation infrastructure over the last few years. Through Adani Airports Holdings Ltd, the group manages several key airports across the country, making it India’s largest private airport operator. This strong presence had fuelled expectations that the conglomerate could eventually expand into airline operations as well.

Despite rejecting the airline reports, the Adani Group reaffirmed its commitment to developing airport infrastructure. The company continues to invest heavily in upgrading airport facilities and creating integrated airport ecosystems aimed at improving passenger experience while boosting commercial activity.

Recently, Adani Airports announced plans to invest over ₹20,000 crore in the first phase of developing airport cities across its network. These projects will include hotels, office spaces, shopping centres, logistics hubs and other commercial infrastructure, transforming airports into larger business and economic centres.

Industry experts point out that running airports and operating airlines are fundamentally different businesses. Airport operators earn revenue through passenger services, retail outlets, parking, cargo operations and commercial leasing, while airlines face significant operational challenges such as volatile fuel prices, fleet costs, intense competition and fluctuating demand.

India’s aviation industry has witnessed rapid growth in recent years, supported by rising domestic travel, expanding regional connectivity and increasing disposable incomes. At the same time, the sector has remained highly competitive, with several airlines facing financial stress over the years due to high operating costs and thin profit margins.

The reports about a possible Adani airline had sparked discussions among investors and aviation analysts about how such a move could reshape the country’s airline market. With the Adani Group already managing airports serving millions of passengers annually, many believed an airline venture could create a significant new competitor for existing carriers.

However, the group’s latest clarification leaves little room for speculation. By issuing a direct denial, Adani has sought to reassure investors and remove uncertainty surrounding its business strategy.

Instead of entering airline operations, the conglomerate appears focused on strengthening its presence in sectors where it already has a significant footprint. Besides airports, the group continues to expand its businesses across ports, logistics, renewable energy, power transmission, data centres, defence and infrastructure.

The swift clarification also highlights the importance of official corporate communication in addressing market rumours, particularly for large listed companies whose announcements can influence investor sentiment.

For now, the Adani Group has made its position clear. While aviation remains an important part of its long-term infrastructure portfolio through airport development, launching an airline is not on the agenda. The company says its priority is to build world-class airport infrastructure and integrated airport cities rather than venture into commercial airline operations.

The statement is expected to put an end to recent speculation and reinforce the group’s focus on expanding its core infrastructure businesses instead of entering India’s competitive airline market.

Also Read: Manipal Health launches ₹9,275 cr IPO next week

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Fintechs oppose NPCI’s default UPI plan

India’s digital payments ecosystem is witnessing fresh tensions as several fintech companies have raised strong objections to a proposed NPCI feature that would allow users to complete Unified Payments Interface (UPI) transactions using a pre-selected default payment app with a single click. Smaller payment firms argue that while the move promises greater convenience, it could significantly strengthen the dominance of market leaders such as PhonePe and Google Pay, making it harder for smaller players to compete.

The proposal, currently being evaluated by the National Payments Corporation of India (NPCI), is part of a broader initiative to simplify UPI payments by reducing the number of steps required during online checkouts. Under the plan, users would choose a preferred UPI app once, and future transactions on participating merchant platforms would automatically open that app instead of displaying a list of available payment applications.

Several fintech companies have urged NPCI to reconsider the proposal, warning that it could reshape India’s highly competitive digital payments market in favour of the biggest platforms. According to industry executives, most smartphone users are unlikely to change their default payment app once it is set. As a result, larger apps with an established customer base could attract an even bigger share of transactions, leaving smaller UPI applications with fewer opportunities to acquire or retain users.

Industry participants believe the proposal may unintentionally create a “winner takes most” environment. They argue that the current UPI checkout process, which allows users to choose from multiple payment apps for every transaction, encourages healthy competition by giving all apps equal visibility. Removing that choice at the payment stage, they say, could gradually reduce traffic to emerging fintech platforms.

Companies opposing the proposal include smaller UPI service providers and payment startups that have written to NPCI, expressing concerns over its potential impact on innovation and market diversity. They have suggested that instead of introducing a permanent default option, NPCI should preserve user choice or explore alternative methods that do not favour larger players.

The issue comes at a time when PhonePe and Google Pay together account for the overwhelming majority of UPI transactions in India. According to industry data, the two platforms collectively process more than 80 per cent of all UPI payments, while the remaining market is shared among Paytm, Cred, Amazon Pay, Navi, Super.money and several other payment apps. Smaller firms fear the proposed feature could widen this gap even further.

Supporters of the proposal, however, argue that it would improve the user experience by making digital payments faster and more seamless. A one-click checkout could reduce transaction time, eliminate the need to select an app repeatedly and lower the chances of users abandoning purchases during the payment process. Merchants are also expected to benefit from quicker checkouts and potentially higher payment completion rates.

NPCI has reportedly described the feature as an optional convenience rather than a mandatory system. Users would still be able to change their preferred payment app whenever they wish. However, critics believe that in practice, very few customers regularly revisit default settings, meaning early market leaders would enjoy a lasting advantage.

The debate highlights a broader challenge facing India’s rapidly expanding digital payments ecosystem: balancing innovation with fair competition. UPI has become the backbone of the country’s digital economy, processing billions of transactions every month across online shopping, bill payments, peer-to-peer transfers and merchant payments. Any change to the payment flow therefore has far-reaching implications for consumers, merchants and fintech companies alike.

Industry experts say maintaining an open and competitive UPI ecosystem has been one of the key reasons behind its remarkable success. Since its launch, UPI has enabled both established companies and startups to build innovative payment solutions on a common platform. Many fintech firms now worry that reducing visibility for smaller apps could discourage future innovation and investment.

NPCI has not announced a final decision on the proposal and is understood to be reviewing feedback received from stakeholders across the payments industry. The organisation is expected to hold further consultations before deciding whether and how the feature should be rolled out.

For consumers, the proposal presents a trade-off between convenience and choice. While faster one-click payments could simplify everyday transactions, industry players believe preserving a level playing field is equally important to ensure continued innovation, competitive pricing and better digital payment services. As India’s UPI ecosystem continues to evolve, the outcome of the discussions could shape the future of the country’s digital payments landscape for years to come.

Also Read: Google’s Gemini surges to 950 mn monthly users

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Corporate

Shadowfax shares slide after ₹1,047 cr block deal

Shares of Shadowfax Technologies came under heavy selling pressure on Thursday after a ₹1,047 crore block deal changed hands in the market, triggering concerns over stake dilution and prompting investors to book profits. The stock fell as much as 7% during intraday trade before recovering some losses to close lower, making it one of the biggest laggards of the session.

According to market reports, around 1.98 crore shares, representing nearly 5.4% of the company’s equity, were traded through multiple block deals. The transactions were executed at an average price of around ₹530 per share, which was at a discount to the previous day’s closing price. The discounted sale put pressure on the stock soon after trading began.

While the identities of all buyers were not immediately disclosed, reports suggested that Flipkart, one of Shadowfax’s early investors, was among the likely sellers. Some other existing shareholders were also believed to have participated in the transaction as part of their portfolio rebalancing. However, there was no official confirmation from the company or the investors regarding the exact participants in the deal.

The block deal sparked a sharp reaction on Dalal Street, with investors interpreting the large share sale as a sign of profit booking by early backers following the company’s recent stock market debut. Analysts noted that such transactions are common after the expiry of lock-in periods, allowing early investors to monetise part of their holdings.

Despite Thursday’s decline, market experts said the block deal does not necessarily reflect the company’s operational performance or long-term growth prospects. Instead, they described it as a financial decision by existing shareholders seeking to partially exit their investment after years of holding the stock.

Shadowfax, one of India’s leading logistics and last-mile delivery companies, has built a strong presence in the fast-growing e-commerce and quick commerce sectors. The company provides delivery solutions for online retailers, direct-to-consumer brands, grocery platforms and businesses across the country.

Over the past few years, Shadowfax has expanded rapidly by leveraging technology, a large delivery partner network and increasing demand for faster deliveries. The company has benefited from the continued growth of India’s digital economy, where online shopping and hyperlocal delivery services have become increasingly popular.

Investors have closely tracked the company’s performance since its listing, viewing it as a play on India’s expanding logistics and supply chain sector. However, Thursday’s large block transaction temporarily overshadowed the company’s business fundamentals, leading to increased selling pressure during the trading session.

Market analysts explained that block deals involving large institutional investors often create short-term volatility because of the significant volume of shares changing hands at discounted prices. Such transactions can temporarily impact investor sentiment even when the company’s underlying business remains unchanged.

Some experts also pointed out that early investors, including venture capital and private equity firms, typically reduce their holdings gradually after a company goes public. These exits help investors realise returns while improving the stock’s public float and liquidity over time.

Despite the sharp fall, analysts believe Shadowfax remains well positioned to benefit from India’s growing logistics market. Rising e-commerce penetration, increasing online consumer spending and the rapid expansion of quick commerce platforms continue to drive demand for efficient delivery services across urban and semi-urban markets.

The company has also been investing in technology, automation and network expansion to strengthen its delivery capabilities. These initiatives are expected to support long-term growth as businesses increasingly rely on organised logistics providers for faster and more reliable deliveries.

For investors, Thursday’s decline serves as a reminder that large institutional stake sales can create short-term market volatility, even when there are no changes to a company’s business outlook. Analysts advise investors to focus on fundamentals such as revenue growth, profitability, competitive positioning and future expansion plans rather than reacting solely to block deal activity.

While the ₹1,047 crore block deal weighed on the stock in the near term, market participants will now watch whether fresh institutional buying emerges in the coming sessions. The company’s long-term prospects are expected to depend more on its ability to capitalise on India’s booming logistics industry than on temporary movements caused by shareholder exits.

Also Read: Adani Group rejects airline venture speculation

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Beyond

Madhya Pradesh signs ₹6,200 cr semiconductor deal

Madhya Pradesh has taken a significant step towards strengthening India’s semiconductor manufacturing ecosystem by signing a ₹6,200 crore Memorandum of Understanding (MoU) with Paras Semiconductors to set up a new chip manufacturing facility in the state. The project is expected to boost domestic electronics production, create skilled jobs and support India’s ambition of becoming a global semiconductor hub.

The agreement was signed in the presence of senior state government officials and company representatives as part of Madhya Pradesh’s efforts to attract high-value investments in advanced manufacturing. The proposed facility will focus on semiconductor production and related technologies, supporting India’s growing demand for locally manufactured electronic components.

The investment is expected to generate thousands of direct and indirect employment opportunities across engineering, manufacturing, research and support services. Officials believe the project will also encourage the growth of ancillary industries, helping create a broader semiconductor ecosystem in the region.

The new facility is part of the state’s strategy to position itself as a preferred destination for technology and electronics investments. Madhya Pradesh has been actively promoting industrial growth through investor-friendly policies, improved infrastructure and faster project approvals.

Paras Semiconductors, part of the Paras Defence and Space Technologies group, plans to establish a modern manufacturing facility equipped with advanced technologies. The project is expected to contribute to India’s efforts to reduce dependence on imported semiconductor components while strengthening the country’s electronics supply chain.

Semiconductors are essential components used in smartphones, computers, automobiles, defence equipment, telecommunications systems and consumer electronics. As global demand for chips continues to rise, countries around the world are investing heavily in domestic manufacturing to secure reliable supply chains.

India has also intensified its focus on semiconductor production through policy support and financial incentives. The Central government’s India Semiconductor Mission aims to attract global and domestic investments while building a competitive chip manufacturing ecosystem.

Officials said the proposed project aligns with the country’s broader vision of promoting ‘Make in India’, Digital India and Atmanirbhar Bharat by expanding domestic manufacturing capabilities in strategic sectors.

Industry experts believe the investment could help attract additional semiconductor and electronics companies to Madhya Pradesh. Large manufacturing facilities often encourage suppliers, component manufacturers and logistics providers to establish operations nearby, creating an integrated industrial cluster.

The project is also expected to enhance collaboration between industry and academic institutions by creating opportunities for research, innovation and skill development. Engineering graduates and technical professionals may benefit from increased demand for specialised semiconductor manufacturing expertise.

Following the announcement, shares of Paras Defence and Space Technologies gained nearly one per cent, reflecting positive investor sentiment towards the company’s expansion into semiconductor manufacturing.

The agreement comes at a time when semiconductor production has become a strategic priority for governments worldwide. Supply chain disruptions experienced in recent years highlighted the importance of developing local manufacturing capacity for critical electronic components.

State government officials expressed confidence that the investment would strengthen Madhya Pradesh’s industrial base while supporting India’s long-term technology ambitions. They said the project demonstrates growing investor confidence in the state’s infrastructure, policy framework and business environment.

For Paras Semiconductors, the proposed facility represents a major expansion into one of the world’s fastest-growing technology sectors. The company expects the investment to support future demand from industries including defence, automotive, telecommunications, healthcare and consumer electronics.

With the latest investment, Madhya Pradesh joins a growing list of states competing to become semiconductor manufacturing hubs. The success of the project will now depend on timely approvals, infrastructure development and its ability to attract related industries to the region.

Also Read: HPCL shares drop 5% after Q1 loss