Author: Staff Writer

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Beyond

US plans $12 bn critical minerals

The United States has announced plans to create a $12 billion strategic stockpile of critical minerals, as President Donald Trump moves to reduce the country’s heavy dependence on China for materials essential to modern industry, clean energy, and national security.

The initiative, unveiled on February 2, will function on the lines of the Strategic Petroleum Reserve but will focus on minerals instead of oil. It is designed to protect American companies from supply disruptions, price shocks, and geopolitical risks linked to China’s dominance in the global minerals market.

Under the plan, funding will come from a mix of government-backed financing and private investment. The US Export-Import Bank is expected to provide the bulk of the support, while private companies will participate by committing to buy minerals from the reserve. The stockpile will include materials such as rare earth elements, lithium, nickel, cobalt, gallium, and graphite, all of which are critical for manufacturing electric vehicles, semiconductors, renewable energy equipment, electronics, and defence systems.

China currently controls a large share of the world’s mining and, more importantly, processing capacity for many of these minerals. Recent Chinese export controls and trade tensions have raised concerns in Washington about supply security. US officials say the new reserve is meant to ensure that American manufacturers are not left vulnerable during political disputes or global supply chain disruptions.

Several major US companies, including firms from the automotive, aerospace, technology, and energy sectors, have expressed interest in participating in the programme. Commodities trading firms will help procure, store, and manage the materials, ensuring they are available when needed.

According to officials, the stockpile is expected to hold around two months’ supply of selected critical minerals. While the move is seen as an important step, experts note that stockpiling alone will not solve long-term challenges. Expanding domestic mining, improving processing capacity, and building reliable supply partnerships with allied countries will remain crucial.

Also Read: Elon Musk’s SpaceX buys xAI in $1.25 trillion merger

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Leaders

Elon Musk’s SpaceX buys xAI in $1.25 trillion merger

Elon Musk has brought his two biggest futuristic bets closer together. His space exploration company SpaceX has acquired his artificial intelligence firm xAI in a deal that values the combined private entity at around $1.25 trillion, according to reports.

The merger brings xAI, the company behind the AI chatbot Grok, fully under SpaceX, creating a single organisation that blends space technology, satellite networks and advanced artificial intelligence. While SpaceX is estimated to be worth about $1 trillion, xAI’s valuation is pegged at roughly $250 billion.

Musk said the deal is aimed at solving one of the biggest challenges facing AI today: infrastructure. Modern AI systems rely on massive data centres that consume huge amounts of electricity and water for cooling. Musk has argued that this model is unsustainable in the long run.

His solution is ambitious, move AI data centres into space.

By placing large-scale computing infrastructure in orbit, Musk believes AI systems could run on near-constant solar energy, reduce strain on Earth’s power grids and avoid many land-based environmental constraints. Space-based data centres could also operate at scale without competing with cities and industries for electricity and water.

As part of this broader vision, SpaceX has reportedly applied to US regulators for permission to launch up to one million additional satellites in the coming years. These satellites could form a vast network capable of supporting AI processing, data transfer and global connectivity from space.

The merger also strengthens the link between xAI and Musk’s social media platform X, which already uses AI tools such as Grok for content analysis and real-time information. Integrating these systems with SpaceX’s satellite and launch capabilities could give Musk an edge in building a global AI-powered communications ecosystem.

The deal comes at a time when SpaceX is preparing for a potential initial public offering (IPO), expected later in 2026. Analysts say combining AI and space infrastructure under one roof could significantly boost investor interest, while also positioning the company as a competitor to major cloud and AI firms.

Also Read: Snowflake, OpenAI seal $200 million AI deal

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Beyond

Gold up at ₹1,53,160, Silver stands at ₹2,99,900

Gold and silver prices in India eased slightly on Tuesday after a week of sharp swings in domestic and global markets.

Gold for 10 grams slipped ₹10, trading near ₹1,53,160, while silver fell ₹100 to ₹2,99,900 per kilogram, according to market sources. The modest decline comes after both metals reached record highs earlier this week, followed by a sharp correction. Tuesday saw a small rebound as investors looked for buying opportunities at lower price levels.

Analysts said the current trend reflects a mix of domestic and international factors. The Union Budget 2026 has been a key driver, with traders cautious about possible changes in gold import duties and other policy measures affecting bullion demand. At the same time, international markets remain volatile, influenced by a stronger US dollar, changes in US interest rate expectations, and ongoing geopolitical developments.

Investor sentiment is mixed. Some market participants see the recent dip as an entry point for long-term buying, while others prefer a wait-and-watch approach, waiting for more clarity on both domestic and global cues.

City-wise, gold and silver prices showed minor variations, but the overall trend was a small decline from recent highs. Traders expect volatility to continue in the near term, as domestic investors digest the Budget announcements and international markets respond to global economic developments.

Also Read: Trump announces India–US trade deal

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Corporate

Trump announces India–US trade deal

US President Donald Trump has said that the United States and India have agreed on a new trade deal that would change how goods move between the two countries. As per Trump’s statement, American products would be allowed into India without paying any tariffs, while Indian exports to the US would attract an 18% charge.

Trump said the move is aimed at making trade more balanced and fair for American businesses. He claimed that US companies have long faced higher duties in India and that the new arrangement would open up greater opportunities for American manufacturers, farmers, and technology firms.

Under the proposed deal, India would continue to export to the US, but at a fixed tariff rate of 18%. Trump described this as a reasonable level that still allows Indian goods access to the American market while offering better protection to US industries and jobs.

The announcement comes amid ongoing global trade uncertainty and renewed focus on protecting domestic industries. India and the US are among each other’s key trading partners, with strong links in sectors such as IT services, pharmaceuticals, energy, defence, and manufacturing.

However, no official confirmation or detailed response has yet come from the Indian government. Trade analysts say the impact of the deal, if finalised, could be uneven. While US exporters may gain from duty-free access to India, Indian exporters, especially in labour-intensive sectors, could see higher costs and tighter margins in the US market.

Also Read: India–US deal cheer lifts Sensex 2,250 points, Nifty above 25,750

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Corporate

India–US deal cheer lifts Sensex 2,250 points, Nifty above 25,750

markets surged on Tuesday as investors welcomed the long-awaited India–US trade agreement, sparking strong buying across most sectors and lifting overall market sentiment.

The BSE Sensex jumped over 2,000 points, while the Nifty 50 climbed close to 3%, supported by broad-based participation. Early signals from Gift Nifty had indicated a positive opening, but the rally gathered pace as the session progressed, driven by heavyweight stocks and renewed foreign inflows.

Export-linked sectors emerged as the biggest winners. Stocks in metals, engineering, automobiles and information technology rallied sharply, benefiting from the announcement that the US will cut tariffs on Indian goods to 18% from earlier levels of around 50%. Banking stocks also saw strong buying, with large private lenders and PSU banks gaining as improved trade prospects lifted growth expectations.

Among index heavyweights, oil and gas majors and infrastructure stocks advanced on hopes of higher global demand and improved investment sentiment. The positive momentum was further supported by a stronger rupee, which appreciated more than 1% against the US dollar, signalling renewed confidence among overseas investors.

However, not all stocks joined the rally. FMCG and pharmaceutical stocks underperformed, with investors turning cautious on defensive sectors amid the risk-on mood. Select consumer staples and healthcare counters slipped or remained range-bound as traders rotated funds into cyclical and export-oriented names. A few mid-cap pharma exporters also faced pressure due to concerns over pricing and regulatory costs.

Market analysts said the trade deal helped remove a key uncertainty that had weighed on Indian equities in recent weeks, encouraging foreign institutional investors to return to the market. Improved clarity on tariffs and trade rules is expected to support corporate earnings, particularly for export-driven industries.

Also Read: Viksit Bharat banking panel proposed in Union Budget

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Corporate

Sensex jumps 944 points, Nifty above 25,050

Indian stock markets staged a strong recovery on Monday as the BSE Sensex rose about 944 points to close near 81,666, while the Nifty 50 climbed over 260 points to settle above the 25,000 level.

The rebound came as investors digested the Union Budget proposals more calmly after an initial negative reaction on Sunday. Concerns over higher taxes on derivatives trading had triggered sharp selling earlier, but bargain buying and improved sentiment helped markets recover.

Infrastructure and energy stocks led the gains. Power Grid Corporation emerged as the top gainer, jumping over 7%. Other key stocks that supported the rally included Larsen & Toubro (L&T), Adani Ports, and Reliance Industries, all of which saw healthy buying. Pharma major Dr Reddy’s also ended the session higher.

On the losing side, Shriram Finance was the biggest drag on the index, falling more than 3%. Stocks such as Max Healthcare, Trent, Bajaj Auto, Cipla, Infosys, ITC, and Titan also closed lower as investors booked profits and rotated funds into sectors showing stronger recovery.

Sector-wise, infrastructure stocks outperformed, reflecting optimism around government spending and long-term projects. IT stocks lagged, slipping slightly due to weak global cues and cautious outlook for technology spending.

Global markets remained mixed, with some pressure seen in US and European indices. Despite this, Indian equities outperformed on the back of strong domestic buying and a mild rise in the rupee against the US dollar.

Also Read: Bitcoin faces sharp fall during market chaos

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Beyond

Defence budget nears 2% of GDP, gets ₹7.85 lakh cr

The Union Budget 2026-27 has delivered a strong push to India’s defence preparedness, with Finance Minister Nirmala Sitharaman announcing an allocation of ₹7.85 lakh crore for the Ministry of Defence. The outlay marks a 15 per cent increase over the previous year and brings defence spending close to 2 per cent of the country’s GDP, a level long recommended by strategic and military experts.

Defence continues to remain the single largest item in the Union Budget, accounting for nearly 15 per cent of total government expenditure. The increase reflects India’s intent to strengthen its armed forces amid evolving regional security challenges and rising geopolitical uncertainties.

A major highlight of the allocation is the sharp rise in capital expenditure, which is aimed at acquiring new platforms, weapons and military infrastructure. Around ₹2.19 lakh crore has been earmarked for modernisation, supporting purchases of fighter aircraft, aero engines, naval vessels and advanced equipment for the Army, Navy and Air Force.

The budget also reinforces the government’s commitment to Atmanirbhar Bharat in defence. Nearly three-fourths of the capital procurement budget has been reserved for domestic manufacturers, providing a strong boost to India’s defence industry and reducing reliance on imports. This move is expected to encourage private sector participation and strengthen defence exports.

Support for research and innovation has also been enhanced. Funding for the Defence Research and Development Organisation (DRDO) has been increased by about 9 per cent, underlining the focus on indigenous technology development and next-generation defence systems.

Apart from capital spending, a significant portion of the defence allocation will go towards revenue expenditure, including salaries, pensions, training, operations and maintenance, ensuring operational readiness and troop welfare.

Also Read: FedEx CEO warns of global trade shift

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1 Minute-Read

EV scheme funding slashed in budget 2026

The Union Budget 2026‑27 has significantly reduced funding for India’s electric mobility programs, with a total cut of over ₹3,700 crore compared to previous allocations.

Key schemes affected include the PM Electric Drive (PM E‑DRIVE) and the PM e‑Bus Sewa Scheme, aimed at boosting electric vehicle adoption and charging infrastructure.

Analysts say the cuts may slow the pace of EV adoption, even as the government continues to support manufacturing and long-term sustainable transport goals. This marks a notable shift in budgetary focus for the transport sector.

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Corporate

Oracle plans massive layoffs through AI funding crunch

US technology company Oracle is reportedly planning to cut 20,000 to 30,000 jobs as part of efforts to manage costs while expanding its AI-focused data‑centre network, according to industry sources. This would be one of the largest layoffs in the company’s history.

The job reductions are part of a broader plan to free up $8 billion to $10 billion in cash flow, which Oracle intends to use for building and operating large-scale data centres that can handle advanced AI workloads. The company’s AI push involves collaboration with major partners, including OpenAI.

Oracle’s ambitious expansion comes with a significant price tag. Analysts estimate that the company may need more than $150 billion over several years to fund the new AI infrastructure. Several US banks have reportedly pulled back from lending, citing concerns about the high capital requirements and rising debt levels. This has increased the company’s borrowing costs and created uncertainty around financing its AI data‑centre projects.

To manage these challenges, Oracle is exploring alternative strategies beyond workforce reductions. This includes the potential sale of its Cerner healthcare software unit, acquired for $28.3 billion in 2022, and adopting new models like “bring your own chip” (BYOC), where customers provide their own hardware, reducing Oracle’s capital burden.

The tech giant has already tapped debt markets and raised billions to fund data centres in states such as Texas, Wisconsin, and New Mexico, but these funds cover only a fraction of the total investment needed for AI infrastructure.

If confirmed, these layoffs would surpass Oracle’s previous workforce cuts in late 2025, when about 10,000 employees were let go as part of a $1.6-billion restructuring plan.

Also Read: New Income Tax law from April to ease compliance

Categories
Beyond

Gold at ₹1,60,570, Silver slides to ₹3,49,900

Gold and silver prices remained weak on 2 February 2026, extending losses after a sharp correction from recent record levels amid volatile market conditions.

On the Multi Commodity Exchange (MCX), gold traded lower at ₹1,60,570 per 10 grams, slipping further as investors continued to book profits. Silver prices also declined to ₹3,49,900 per kilogram, reflecting sustained selling pressure following last week’s steep rally.

The decline comes after both metals touched historic highs, driven by strong global cues and safe-haven demand. However, the rapid rise was followed by an equally sharp pullback as traders chose to lock in gains, triggering heavy volatility across commodity markets.

The sell-off spilled over into the equity segment as well. Gold and silver exchange-traded funds (ETFs) extended their losses, with silver ETFs bearing the brunt of the fall. Some silver-linked funds dropped close to 20 per cent, while gold ETFs fell by up to 10–11 per cent, mirroring the sharp correction in underlying prices.

Market analysts attributed the weakness to profit-taking, global uncertainty and movements in the US dollar, which tends to influence prices of dollar-denominated commodities. They noted that prices had risen sharply in a short period, making a correction unavoidable.

Also Read: Sensex up over 100 points, Nifty above 24,800