Category: Beyond

Categories
Beyond

HAL shares drop 8% after key fighter jet program setback

Shares of Hindustan Aeronautics Ltd (HAL) fell nearly 8% on Wednesday after reports confirmed that the company was not shortlisted for India’s Advanced Medium Combat Aircraft (AMCA) programme. The drop reflects investor concerns over HAL’s growth prospects amid rising competition in the defence sector.

The AMCA is India’s ambitious fifth-generation stealth fighter jet project, expected to strengthen the country’s air combat capabilities by the mid-2030s. Initially, HAL was considered the frontrunner to lead the programme, given its long-standing experience in aircraft manufacturing. However, the government shortlisted private players such as Larsen & Toubro, Bharat Forge, and Tata Advanced Systems to develop prototypes, leaving HAL out of the initial phase.

It is said that HAL’s exclusion signals a shift in India’s defence strategy, which increasingly encourages private sector participation under the Atmanirbhar Bharat initiative. While HAL remains a key PSU in defence manufacturing, missing out on the AMCA programme could impact near-term revenue visibility and investor sentiment.

HAL shares opened lower and quickly slid to intraday lows, reflecting uncertainty in the market. Other defence stocks showed mixed trends, with the sector digesting the news of greater private competition. Analysts note that while HAL’s long-term position remains strong, the company will need to adapt to new competitive pressures and evolving procurement norms to maintain its market share.

Also Read: SEBI rules out immediate futures and options curbs

Categories
Beyond

Gold up ₹1,53,940, Silver slips to ₹2,79,900

Gold prices in India edged higher on Wednesday, while silver saw a marginal decline, reflecting continued volatility in the precious metals market. According to latest market data, 24-carat gold rose by ₹10 to ₹1,53,940 per 10 grams, while silver prices fell by ₹100 to ₹2,79,900 per kilogram.

The modest rise in gold comes after a period of intense price fluctuations. In recent weeks, gold prices surged to record highs, driven by strong safe-haven demand amid global uncertainty. However, those gains were followed by bouts of profit-booking, leading to sharp intraday corrections. Despite these swings, gold continues to trade at historically elevated levels, signalling sustained investor interest.

Market participants said gold’s resilience is linked to ongoing concerns around global economic growth, currency movements, and geopolitical tensions. When uncertainty rises, investors often turn to gold to protect value, helping the metal recover quickly even after short-term corrections. Traders noted that buying interest remains intact, especially on dips, keeping prices supported above the ₹1.5-lakh mark.

Silver, meanwhile, showed mild weakness in today’s trade. After witnessing steep rallies earlier this year, at times nearing ₹3 lakh per kilogram, silver prices have been more volatile than gold. Analysts attributed the latest dip to profit-taking by traders and cautious sentiment after recent sharp moves. Changes in global trading margins and reduced speculative positions have also added pressure on silver prices.

On the Multi Commodity Exchange (MCX), both metals have seen wide intraday movements over the past few sessions, underlining nervous market conditions. Experts say silver, being both a precious and industrial metal, tends to react more sharply to changes in global demand outlook, making it more prone to sudden price swings.

Also Read: Sensex swings in range, Nifty breaches 25,750 mark

Categories
Beyond

Oil slides as US-Iran talks ease supply fears

Global oil prices declined sharply after fresh signals suggested a possible easing of tensions between the United States and Iran, calming fears of supply disruptions that had driven prices higher in recent weeks.

Brent crude futures slipped by nearly 5%, falling back to around $66 a barrel, while US West Texas Intermediate (WTI) crude also dropped by a similar margin. The decline marked one of the steepest daily falls this year, as traders rushed to lock in profits after a strong rally in January.

The sell-off followed comments from US President Donald Trump indicating that Washington and Tehran were “seriously negotiating” over Iran’s nuclear programme. These remarks raised hopes that diplomatic engagement could replace confrontation, lowering the risk of conflict in the Middle East, a region critical to global oil supplies.

Until now, oil prices had been supported by fears that escalating tensions could disrupt shipments through key routes such as the Strait of Hormuz. Those concerns eased after there were no new military developments over the weekend and no signs of immediate escalation from either side.

Market analysts said the fall was driven by a sharp unwinding of the geopolitical risk premium that had been built into crude prices. Brent and WTI had climbed more than 10% last month amid worries over potential supply shocks.

A stronger US dollar also weighed on oil prices, making commodities more expensive for buyers using other currencies. In addition, broader commodity markets softened, with gold and silver giving up recent gains as investors moved away from safe-haven assets.

Supply-side factors added to the pressure. OPEC and its allies, including Russia, have signalled no immediate change to production plans, reducing concerns about tighter supply in the near term. Meanwhile, expectations of steady global demand growth have kept traders cautious about pushing prices higher.

Despite the decline, analysts warned that oil markets remain highly sensitive to geopolitical headlines. Any setback in talks or renewed tensions could quickly reverse the current trend.

Also Read: Capgemini to exit US unit linked to migrant tracking

Categories
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

Categories
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

Categories
Beyond

Bitcoin faces sharp fall during market chaos

Bitcoin has fallen to its lowest level since the 2025 tariff shock, dropping roughly 7% to $76,500 before slightly recovering to $78,000, about 11% below early-year levels.

The decline highlights growing caution among investors as geopolitical tensions and expectations of tighter monetary policy weigh on markets.

Long seen as “digital gold,” Bitcoin is increasingly behaving like a risk-sensitive asset. The downturn has also affected major altcoins, prompting corporate and institutional investors to carefully reassess exposure and balance potential opportunities against market volatility.

Categories
Beyond

Viksit Bharat banking panel proposed in Union Budget

In her Union Budget 2026–27 speech, Finance Minister Nirmala Sitharaman announced the formation of a High-Level Committee on Banking for Viksit Bharat. The panel will conduct a comprehensive review of India’s banking sector and align it with the country’s long-term economic vision, especially towards 2047, the centenary of independence.

Sitharaman highlighted that India’s banks have made significant progress, demonstrating strong balance sheets, record profitability, better asset quality, and extensive financial coverage across the population. These achievements provide a solid foundation for further reforms.

The committee will focus on the banking sector’s structure, governance framework, credit delivery, technological adoption, risk management, and financial inclusion. Ensuring consumer protection while maintaining stability is also a priority.

The minister stressed that the panel’s recommendations will help design a reform roadmap for banks capable of supporting a larger, technology-driven economy, guiding future policy and regulatory decisions.

The budget also includes measures for non-banking financial companies (NBFCs), which are crucial in providing credit to underserved segments. It proposes restructuring major public sector NBFCs, including the Power Finance Corporation and Rural Electrification Corporation, to boost efficiency and scale.

Also Read: India extends GIFT City tax holiday to 20 years

Categories
Beyond

Seven new high‑speed rails announced in budget

The Union Budget 2026–27 unveiled an ambitious plan to build seven new high‑speed rail corridors, marking one of the largest infrastructure initiatives in recent years. Finance Minister Nirmala Sitharaman highlighted the corridors as a step toward faster, safer, and environmentally sustainable travel between India’s major cities.

The proposed routes include Mumbai–Pune, Pune–Hyderabad, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi, and Varanasi–Siliguri, covering nearly 4,000 kilometres in total. Officials describe these lines as “growth connectors,” expected to boost regional economic activity while reducing congestion on highways and flights.

The total estimated cost for these projects is ₹16 lakh crore, demonstrating the government’s focus on modernizing inter‑city transport. The corridors will slash travel times significantly; for example, Chennai to Bengaluru could take about 1 hour 15 minutes, while Bengaluru to Hyderabad may take around 2 hours.

The Budget allocates ₹2.93 lakh crore to Indian Railways, with ₹1.20 lakh crore earmarked for safety improvements, including advanced signalling systems, electrification, and automatic train protection technologies.

Alongside passenger corridors, the government announced a 2,052-km East–West Dedicated Freight Corridor connecting Dankuni in West Bengal with Surat in Gujarat, aimed at enhancing cargo efficiency and reducing congestion on passenger lines.

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

Categories
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

Categories
Beyond

India offers tax-free AI cloud incentive until 2047

The Union Budget 2026–27 unveiled a major tax incentive to attract foreign cloud providers and AI firms to India. Under the new policy, companies operating AI and cloud services from Indian data centres will pay zero corporate tax on revenues until 2047, provided they serve Indian customers through a locally incorporated reseller.

The government has also introduced a 15% safe-harbour tax regime for Indian data centre operators serving foreign clients. This ensures predictability for investors and encourages long-term infrastructure expansion. The measures are aimed at strengthening India’s digital backbone, boosting cloud and AI capacities, and making the country a global hub for advanced computing services.

Industry leaders have welcomed the move as a significant step to attract multinational technology firms to set up or expand data centre operations in India. Analysts predict that the policy could generate thousands of jobs, enhance technology transfer, and position India competitively against established AI and cloud markets in the US, Europe, and Asia.

However, experts have also flagged potential challenges, including ensuring sufficient power and water supply, handling cooling requirements, and streamlining regulatory approvals. The government will need to address these infrastructure and operational hurdles to make the policy fully effective.

By offering a 21-year tax holiday, India aims to provide certainty and long-term incentives for global firms to invest in local infrastructure, secure local market participation, and establish a durable technological presence.

This initiative is part of a broader push to expand India’s digital ecosystem, encourage private investment in data centres, and foster growth in emerging technologies such as AI, cloud computing, and machine learning.

Also Read: Oracle plans massive layoffs through AI funding crunch