Author: Staff Writer

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Leaders

IBM CEO faces toughest test yet

IBM CEO Arvind Krishna is facing the toughest challenge of his leadership after the company’s shares plunged nearly 25% in a single trading session, wiping out around $70 billion in market value. The sharp decline followed weaker-than-expected preliminary second-quarter results, triggering concerns about IBM’s ability to keep pace with the rapidly evolving artificial intelligence (AI) market.

The company expects second-quarter revenue of $17.2 billion, missing analysts’ forecasts. Its earnings also fell short of market expectations, disappointing investors who had anticipated stronger growth.

Krishna admitted that IBM had a difficult quarter, saying several large customer deals were delayed and failed to close on schedule. He also acknowledged that many businesses are shifting their technology spending towards AI infrastructure, including servers and data centres, instead of software and IT services, where IBM earns a significant share of its revenue.

The disappointing update led to IBM’s worst-ever single-day stock decline, raising fresh questions about how traditional technology companies are adapting to the AI boom. While the stock recovered some losses later, investor confidence took a major hit.

The sell-off also affected several enterprise software companies, as markets worried that corporate technology budgets are increasingly moving away from software and towards AI hardware investments.

Krishna, who has led IBM since 2020 and helped reposition the company around hybrid cloud and AI, now faces mounting pressure to restore growth and reassure investors. IBM still has strong technological capabilities and a loyal enterprise customer base, but it must move faster to capitalise on the AI opportunity.

Also Read: Cabinet clears ₹1.9 lakh cr semiconductor push

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Beyond

Gold falls to ₹1.41 lakh, silver below ₹2.20 lakh

Gold and silver prices declined on Thursday as weak global cues and renewed geopolitical tensions dampened investor sentiment, pushing bullion lower in both domestic and international markets.

On the Multi Commodity Exchange (MCX), gold August futures fell 0.39% to ₹1,41,301 per 10 grams, while silver September futures slipped 0.44% to ₹2,19,650 per kg during the morning trade.

The decline follows increased uncertainty in global markets after fresh tensions in the Middle East lifted crude oil prices and strengthened the US dollar. A stronger dollar typically makes gold more expensive for overseas buyers, while expectations of higher interest rates reduce the attractiveness of non-yielding assets such as gold and silver.

International bullion prices also remained under pressure, with traders closely watching upcoming US economic data and comments from Federal Reserve officials for fresh clues on the interest rate outlook. Market participants believe that persistent inflation risks could delay any policy easing, adding to the pressure on precious metals.

The weakness in futures prices was reflected in the retail market as well. Gold rates edged lower across major Indian cities, with prices of both 22-carat and 24-carat gold witnessing a modest decline. Silver prices also softened in line with the movement in global markets.

Despite the latest fall, experts believe gold’s long-term outlook remains supported by geopolitical uncertainty, central bank purchases and its traditional role as a safe-haven investment during periods of market volatility. However, they expect prices to remain volatile in the short term, with every major economic or geopolitical development likely to influence investor sentiment.

Also Read: Sensex climbs over 250 points, Nifty tops 24,100

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Leaders

Fed Chief Warsh reaffirms strong fight against inflation

US Federal Reserve Chair Kevin Warsh has assured lawmakers that the central bank remains firmly committed to bringing inflation under control, saying it has “no tolerance” for persistently high price growth.

Testifying before Congress, Warsh said keeping inflation low and stable remains the Federal Reserve’s top priority because rising prices reduce household purchasing power and create uncertainty for businesses. He stressed that the central bank will continue to make policy decisions based on incoming economic data rather than short-term market expectations.

Warsh acknowledged that inflation has eased significantly from its recent highs but said the Fed cannot become complacent. He noted that while progress has been encouraging, policymakers need greater confidence that inflation is moving sustainably towards the central bank’s long-term target before considering major policy changes.

The Fed chief also highlighted the resilience of the US economy, pointing to a strong labour market and steady consumer spending. However, he cautioned that global uncertainties and trade-related developments continue to pose risks to the economic outlook.

During the hearing, lawmakers questioned Warsh on interest rates, employment and the broader direction of monetary policy. He reiterated that the Federal Reserve’s decisions will remain independent and guided by its dual mandate of maintaining price stability and supporting maximum employment.

Warsh also addressed concerns about financial markets, saying the central bank is closely monitoring economic conditions while ensuring that monetary policy supports long-term stability rather than reacting to short-term fluctuations.

For households and businesses, the message was straightforward: while inflation has moderated, the Federal Reserve believes the fight is not yet over. Warsh stressed that restoring lasting price stability remains essential for sustainable economic growth, stronger consumer confidence and a healthy financial system.

Also Read: IBM misses revenue estimates on weak client spending

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Corporate

Sensex rises 130 points, Nifty tops 24,050

Stock market indices ended higher on Wednesday as gains in banking and information technology stocks outweighed weakness in select auto and consumer shares.

The BSE Sensex advanced 130 points to close at 77,185, while the NSE Nifty 50 added 26 points to settle at 24,078, extending its hold above the 24,050 level.

Among the top gainers on the Sensex were Infosys, HDFC Bank, ICICI Bank, Tech Mahindra and Axis Bank, supported by buying in IT and financial stocks. On the losing side, Tata Motors, Trent, Titan Company, Mahindra & Mahindra and Sun Pharma ended lower, limiting the day’s gains.

Markets traded in a narrow range for most of the session as investors remained cautious ahead of more June-quarter earnings announcements. Strong interest in banking counters and expectations of healthy earnings from large IT companies helped keep sentiment positive despite mixed global cues.

Analysts said investors are closely tracking corporate earnings for signs of demand recovery and profit growth across sectors. Management commentary over the next few weeks is expected to influence market direction.

Global sentiment remained mixed as investors assessed developments related to trade, interest rate expectations and geopolitical tensions. Despite these uncertainties, domestic equities continued to find support from institutional buying and confidence in India’s economic outlook.

The broader market witnessed stock-specific action, with financial and technology counters attracting buying while profit booking emerged in parts of the automobile and consumer sectors.

Also Read: TCS chosen to power JFK Airport’s new terminal

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Corporate

DeepSeek eyes fresh funding after $7 bn

Chinese artificial intelligence startup DeepSeek is reportedly looking to raise fresh funds just weeks after completing a major $7 billion funding round, highlighting the company’s rapid expansion plans in the highly competitive AI race.

The Hangzhou-based AI firm has started early discussions with potential investors for another fundraising round that could value the company at around $71 billion before the investment, according to reports. This comes soon after DeepSeek’s first external funding round, which valued the company at about $52 billion.

DeepSeek became a global name after its V3 and R1 AI models attracted attention for delivering strong performance while using fewer computing resources compared with some rival systems. The company’s progress challenged the belief that only Silicon Valley firms could lead advanced AI development.

The new funds are expected to support DeepSeek’s growing technology needs, including expanding computing capacity, building infrastructure and strengthening research efforts. Like other leading AI companies, DeepSeek faces rising costs as demand for powerful chips, data centres and skilled researchers continues to increase.

Alongside fundraising plans, reports suggest DeepSeek is also preparing for a possible initial public offering (IPO) as early as this year. The company is reportedly exploring a listing route that could help it secure more capital while maintaining its focus on long-term AI research.

DeepSeek is also working towards reducing its dependence on external chip suppliers by developing its own AI processors. The move reflects a broader push by Chinese technology companies to build more self-reliant AI ecosystems amid global competition.

Also Read: Udaan secures $160 mn ahead of planned IPO

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Beyond

FDA suspends licences of 3 iconic Mumbai eateries

Maharashtra Food and Drug Administration (FDA) has suspended the food business licences of three well-known Mumbai eateries after inspections found serious violations of food safety and hygiene regulations.

The action was taken against Shalimar Restaurant, Noor Mohammadi Hotel and Rehmania Restaurant, all popular dining destinations with long-standing reputations in the city. The inspections were carried out as part of the FDA’s ongoing drive to improve food safety standards and ensure that restaurants comply with the Food Safety and Standards Act.

According to the FDA, officials discovered multiple lapses during inspections, including poor hygiene practices, inadequate sanitation, improper food storage and conditions that could pose health risks to customers. The violations were considered serious enough to warrant the immediate suspension of the establishments’ food business licences.

The restaurants have been directed to stop food operations until they address the shortcomings identified by the authorities. They will be allowed to resume business only after implementing the required corrective measures and obtaining approval from the FDA following a fresh inspection.

The latest enforcement comes as the Maharashtra FDA intensifies checks on food establishments across the state. Officials have been carrying out surprise inspections at restaurants, hotels and food outlets to ensure compliance with food safety norms and protect public health.

The action has drawn attention because the three restaurants are among Mumbai’s most recognisable eateries, attracting both local residents and tourists. Their temporary closure highlights the regulator’s stricter approach towards food safety, regardless of an establishment’s popularity or legacy.

FDA officials said maintaining hygienic kitchens, proper food handling practices and safe storage conditions is essential to prevent contamination and food-borne illnesses. They urged food business operators to strictly follow prescribed standards and conduct regular internal checks to ensure compliance.

Also Read: India, UK seal CETA

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Beyond

India, UK seal CETA

India and the United Kingdom have signed the Comprehensive Economic and Trade Agreement (CETA), marking a major milestone in their economic partnership. The landmark pact is expected to increase bilateral trade, attract fresh investments and create new opportunities for businesses and workers in both countries.

The agreement aims to raise two-way trade to nearly $100 billion by 2030, with officials and industry leaders describing it as one of India’s most significant bilateral trade deals in recent years. It is expected to reduce trade barriers, improve market access and make it easier for companies to do business across both markets.

For Indian exporters, the deal opens duty-free or lower-duty access to the UK for products including textiles, garments, leather goods, engineering products, auto components, marine products, gems and jewellery. These labour-intensive sectors are expected to benefit from stronger demand, potentially leading to higher production and more employment.

Indian consumers, meanwhile, are likely to see lower prices on a range of premium British products as import duties are reduced in phases. Items such as Scotch whisky, gin, luxury cars, chocolates, cosmetics and selected consumer goods are expected to become more affordable over time.

The agreement is also expected to encourage British companies to invest more in India. Sectors such as manufacturing, financial services, clean energy, technology and innovation are likely to attract greater investment as the pact provides businesses with improved certainty and a more predictable trade environment.

Trade experts say the agreement goes beyond tariff reductions. It includes measures to simplify customs procedures, improve regulatory cooperation and strengthen supply chains, making it easier for businesses—especially small and medium enterprises—to expand into new markets.

For millions of people, the impact could be felt in everyday life. Export-oriented industries may create more jobs, consumers could enjoy a wider choice of products at competitive prices, and businesses may find it easier to collaborate across borders.

Also Read: Elevation Capital raises $500 mn to back AI startups

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Corporate

Elevation Capital raises $500 mn to back AI startups

Venture capital firm Elevation Capital has launched its ninth India-focused fund with a corpus of $500 million, reaffirming its long-term commitment to backing the country’s next generation of entrepreneurs. The new Fund IX will primarily invest in seed and Series A startups, with a strong focus on artificial intelligence (AI)-led businesses and deeptech ventures.

The fund arrives at a time when AI is rapidly reshaping industries worldwide and attracting a growing share of venture capital. Elevation Capital believes India is well-positioned to build globally competitive AI companies, despite concerns that much of the world’s AI investment is currently concentrated in the United States. According to the firm, India’s digital infrastructure, entrepreneurial talent and expanding technology ecosystem create a strong foundation for the next wave of innovation.

Fund IX will back startups developing AI-powered solutions for sectors such as healthcare, education and financial services, where technology can help solve large-scale operational challenges. The firm also plans to invest in AI software products built in India for global markets, alongside deeptech startups working in areas including robotics, defence, manufacturing, space technology and energy.

Unlike its previous fund, which invested across multiple stages, the new vehicle will concentrate on early-stage companies. Later-stage investments will continue through Elevation Capital’s separate $400 million Holdings Fund, taking the firm’s total deployable capital to around $900 million.

The fund has received overwhelming support from existing limited partners, reflecting investor confidence in Elevation Capital’s investment strategy and India’s startup ecosystem. The firm has previously backed several successful startups, including Swiggy, Urban Company, Meesho, NoBroker and Paytm, and now expects AI-led businesses to drive the country’s next phase of startup growth.

Elevation Capital said the AI revolution represents a once-in-a-generation opportunity for Indian founders.

Also Read: Gold falls to ₹142,170, Silver slips to ₹222,620

Categories
Beyond

Gold falls to ₹142,170, Silver slips to ₹222,620

Gold and silver prices witnessed a decline in India’s retail bullion market on Wednesday, with both precious metals trading lower in early deals amid weak global cues and cautious investor sentiment.

According to data released by the Bullion Association of India (BAI), the price of 999 purity (24K) gold fell by 0.57%, or ₹820, to ₹142,170 per 10 grams. The decline comes after recent volatility in international bullion markets, where investors continue to monitor economic indicators, central bank policy expectations, and geopolitical developments that influence demand for safe-haven assets.

Silver prices also moved lower during the session. The rate of 999 fine silver declined 0.47%, with the metal trading at approximately ₹222,620 per kilogram in the domestic retail market. The fall in silver prices mirrored the broader weakness seen across precious metals, reflecting subdued global market sentiment.

Bullion prices in India are influenced by several factors, including international spot prices, movements in the US dollar, import duties, GST, and fluctuations in the rupee against the US dollar. Domestic retail prices may also vary across cities due to local taxes, transportation costs, and jewellers’ margins.

Also Read: Sensex jumps over 500 points, Nifty tops 24,200

Categories
Corporate

Sensex jumps over 500 points, Nifty tops 24,200

Indian benchmark indices bounced back strongly on Wednesday, recovering a large part of the previous session’s losses as investors cheered softer US inflation data and renewed buying in banking and financial stocks.

During the session, the BSE Sensex surged over 500 points to trade above 77,500, while the NSE Nifty reclaimed the 24,200 mark. Financial heavyweights led the rally, with HDFC Bank, ICICI Bank, Axis Bank, Bajaj Finance and Shriram Finance emerging among the top gainers. On the losing side, ONGC, Tata Consumer Products, Coal India, NTPC and Power Grid traded lower as investors remained cautious about rising energy prices and global uncertainties.

The recovery followed Tuesday’s sharp sell-off, when the Sensex had fallen 561 points to close at 77,054.94, while the Nifty slipped 159 points to settle at 24,052, wiping out nearly ₹3 lakh crore in investor wealth. Rising crude oil prices, foreign institutional investor (FII) selling and escalating geopolitical tensions had triggered broad-based weakness across sectors.

Investor sentiment improved after US inflation came in lower than expected, raising hopes that the US Federal Reserve may slow the pace of future interest rate hikes. The easing inflation outlook supported global equities and encouraged investors to return to Indian markets, particularly large-cap financial stocks.

However, market participants remain watchful as tensions involving the US and Iran continue to fuel concerns over possible disruptions to global crude oil supplies. Higher oil prices could increase India’s import bill, add to inflationary pressures and impact corporate profitability if the rally in crude sustains.

Also Read: Tata Capital buys 88.6% stake in Yogloans