DayStarter

Market snapshot

Equities: Tuesday close

The Nifty opened 43 points lower at 24,176 after weak global cues and continued weakness in the Indian market. It fell towards the 24,120 to 24,130 range around 10:20 am.

The direction changed after 2 pm. Buying increased as oil prices fell around 3%. The Nifty moved above 24,200 by around 2:30 pm and approached 24,250 during the final hour.

A sharp move during the closing auction lifted the index further. The Nifty ended at 24,334.55, close to the day’s high and more than 150 points above its opening level.

The Sensex closed at 77,656.09, up 0.37%. The Nifty Next 50 gained 0.66%, while the Nifty Midcap 150 rose 0.45%. The Smallcap 250 and Microcap 250 ended lower.

Sector performance

Nine of the 12 sector indices tracked in the report ended higher. Consumer Durables was the strongest sector, rising 0.93%. Pharma gained 0.85%, PSU Bank rose 0.75%, and IT gained 0.57%. Bank, Metal and Energy were the only sectors in the table to finish lower.

F&O winners and losers

Vodafone Idea was the strongest F&O stock, rising 7.96%. Paytm gained 5.82%, while Angel One rose 5.21%. Federal Bank was the biggest loser, falling 3.02%.

Commodities

Crude oil futures fell 3.35% to ₹7,862. Natural gas declined 1.83%. Gold and silver also moved lower. Zinc rose 1.32%, while copper gained 0.18%.

In Delhi’s physical market, 99.9% pure gold rose ₹2,700 to ₹1,67,100 per 10 grams. Silver fell ₹3,500 to ₹2.5 lakh per kilogram. In international markets, spot gold fell $11.87, or 0.26%, to $4,639.51 per ounce. Silver fell 1.04% to $67.88 per ounce.

All India Sarafa Association

Currency and bond yields

The rupee closed at 95.44 against the US dollar, 0.32% stronger for the day. India’s 10-year government bond yield fell to 6.85 from 6.87. The US 10-year Treasury yield declined 0.91% to 4.66.

Institutional flows

Foreign institutional investors were net buyers of ₹1,182 crore on 24 August. Domestic institutional investors bought a net ₹2,493 crore.

Across the five sessions from 18 to 24 August, FIIs bought a net ₹2,116 crore and DIIs bought ₹14,708 crore.

Foreign portfolio investors invested more than ₹25,000 crore in Indian equities between 1 and 24 August. This was the strongest monthly inflow since September 2024. July inflows were ₹20,200 crore.

If the August trend continues, FIIs would have bought Indian equities for two consecutive months for the first time this year. March had recorded a monthly outflow of nearly ₹1.2 trillion.

During the first half of August:

• Financial services received ₹6,535 crore after an outflow of ₹2,669 crore in the previous fortnight.
• Automobiles received ₹4,405 crore.
• Consumer services received ₹3,398 crore.
• Telecom recorded an outflow of ₹3,322 crore.
• Capital goods, power and realty also recorded outflows.

India became Asia’s least-preferred equity market in Bank of America’s August survey. India’s weight in the MSCI Emerging Markets Index is around 14%, down from a peak of 21% in late 2024.

NSDL; Bank of America

Macro view

Inflation and the RBI bulletin

The RBI’s August bulletin said India’s domestic economy continues to be helped by strong macroeconomic fundamentals despite geopolitical tension in West Asia and new US tariffs.

The global outlook remains uncertain, but domestic economic activity remains strong. High-frequency indicators point to continued activity in manufacturing and services, while merchandise exports and imports are expanding at double-digit rates.

Retail CPI inflation increased to 4.45% year-on-year in July from 4.38% in June. Food and beverage prices were the main driver. Core inflation remained at 3.9%.

When precious metals are excluded, core inflation increased to 2.7% in July from 2.5% in June. Core inflation excluding jewellery and watches was 1.86% in February 2026. This was 1.5 percentage points below the broader core inflation measure. By July, it had increased to 2.95%, only 1.1 percentage points below the broader measure.

The recovery in the south-west monsoon during July helped kharif sowing move closer to normal levels. Financial conditions also improved. Credit growth remained strong, liquidity was comfortable, government bond yields softened, and capital inflows recovered.

The RBI kept the repo rate unchanged at 5.25% earlier this month. The August monetary policy minutes showed a more hawkish tone, meaning policymakers were showing greater concern about inflation.

Emerging-market scorecard

India ranked first in Mint’s Emerging Markets Tracker for the third consecutive month.

Malaysia moved up four positions to third place. Among the 12 economies covered, India recorded the second-best performance in:

• Stock markets.
• GDP growth.
• Manufacturing PMI.

However, India’s exports and currency ranked among the weakest. India’s GDP grew 7.8% during the January to March quarter. The April to June figure is due later this week. Economists expect growth of around 7.0% to 7.3%.

Manufacturing PMI fell to 53.5 in July from 54.2. Export growth increased to 19.5% in July from 15.4% in the previous month. The rupee depreciated 0.9% month-on-month. It had appreciated 0.6% in the previous month.

India’s import cover increased to 10 months in July from 9.7 months in June. FPI inflows and the RBI’s FCNR(B) deposit scheme helped. Brent crude has mostly stayed around $80 to $90 per barrel and has rarely crossed $100 since May.

South Asian growth

India remains the main growth engine in South Asia. The World Bank expects India to grow around two percentage points faster than the average emerging-market and developing economy. The World Bank raised its India growth forecast to 6.6% in June from 6.5% in January.

Indian merchandise exports increased 0.86% to $441.45 billion in FY26 from $437.70 billion in FY25. For comparison:

• Vietnam’s exports rose 17% in calendar year 2025 to $475.04 billion.
• Cambodia’s exports rose 14.6% to $30.43 billion.

Trade within South Asia is equal to only 0.7% of the region’s GDP. The comparable figure is 3% for Latin America and the Caribbean. India accounts for around 80% to 90% of South Asia’s population and GDP.

Around 22% of jobs in South Asia are exposed to AI under a standard classification. Of these:

• 15% are exposed in a way where AI may complement workers.
• 7% are exposed in a way where AI may substitute for workers.

The comparable substitution share is 15% in other emerging markets.

Japanese investment in India

Commerce and Industry Minister Piyush Goyal held discussions in Tokyo with senior executives from:

• MUFG.
• Development Bank of Japan.
• Mizuho.
• Morgan Stanley.
• Nomura.
• Nippon Life.

The discussions focused on long-term capital flows and Japanese investment in India. India and Japan are targeting ¥10 trillion of Japanese private investment into India over the next decade. Goyal said India grew 7.7% last year and is working towards becoming a $30 trillion economy by 2047.

External commercial borrowings and the RBI swap facility

Indian companies are expected to raise $75 billion to $80 billion through external commercial borrowings in FY27. Citibank had earlier expected up to $65 billion. Companies raised $50 billion in FY26. India has received $72.85 billion through the RBI’s special forex swap facility.

Fresh FCNR(B) deposits under the special swap window are allowed only until 31 August instead of the original 30 September deadline. The separate window for external commercial borrowings and overseas foreign-currency borrowings remains open until 31 December.

Coal India investment

Coal India plans to invest nearly ₹48,000 crore in rail connectivity and mechanised coal evacuation. The company and its joint-venture partners are also committing ₹50,000 crore to three coal-gasification projects. Coal India is targeting annual production of 1 billion tonnes by FY30.

The company accounts for more than 80% of India’s coal production and moves around 65% of its output using Indian Railways. India consumes around 1.2 billion to 1.3 billion tonnes of coal every year. Coal represents around 70% of the country’s energy mix.

Coal India’s infrastructure programme includes:

• 72 first-mile connectivity projects.
• Around ₹24,560 crore of investment.
• Handling capacity of 994 million tonnes a year by FY30, compared with 432 million tonnes now.
• Seven major railway links covering 553 km.
• Around ₹23,463 crore of investment in those railway links.

Mining costs have also increased. Industrial diesel used in mining and logistics rose to as much as ₹155 per litre by the end of May, compared with around ₹92 per litre for retail diesel, before prices eased. Ammonium nitrate prices have risen as much as 70% since February to more than ₹72,000 per tonne.

Onion prices

The all-India average onion price was 32% higher year-on-year in August. Chennai recorded the largest annual increase at 47.4%. Seasonal supply tightness and stronger festival demand contributed to the increase.

The government plans to sell onions in Delhi at a subsidised price of ₹35 per kg. Around 800 tonnes of buffer stock will be moved to Delhi under the Kanda Express initiative.

CMIE

LPG and LNG imports from the US

India has sharply increased LPG and LNG purchases from the US because the West Asia conflict has affected supplies from traditional Gulf suppliers. India imported around 0.62 million tonnes of LPG from the US in August.

Kpler

Merchant fleet expansion

India plans to add 100 vessels to its merchant fleet over the next five years. The goal is to reduce dependence on foreign shipping companies. The plan was discussed at the National Shipping Board’s Sagar Samvad.

Defence technology transfer

India approved the transfer of technology for all conventional missile systems developed by its state-run defence research agency to domestic manufacturers.

Organ-swap rules

India has created standard operating procedures for organ swaps. The guidelines were developed by the National Organ and Tissue Transplant Organization.

India has an active organ-transplant waiting list of around 89,839 to 100,000 patients. The country needs between 125,000 and 200,000 kidney transplants each year. Only 14,477 kidney-transplant procedures were carried out in 2025. India also needs around 180,000 liver transplants each year but performs fewer than 4,000.

Pilot drug testing

The Directorate General of Civil Aviation is considering testing every commercial pilot in India randomly for psychoactive substances at least once each year. The current system requires annual testing of at least 10% of flight crew. India has more than 12,000 commercial pilots.

Respiratory infections

India is seeing a seasonal increase in respiratory infections. Influenza A subtype H1N1 is the main driver.

Indian Council of Medical Research

Corporate action and earnings

TCS and Porsche

TCS will acquire Porsche’s management and IT consulting subsidiary MHP for $373 million. The companies also signed a five-year strategic partnership worth $1.4 billion.

The work will focus on AI-led transformation across Porsche’s:

• Engineering.
• Manufacturing.
• Operations.

The Porsche transaction is TCS’s second mega-deal in less than eight months. At least nine similar client-asset transactions have taken place during the past two decades involving TCS, Infosys, HCLTech, Wipro and WNS. Three took place during the past 12 months.

TCS recorded its first revenue decline since listing in 2004. Revenue ended the year 0.5% lower. Wipro recorded its third consecutive year of decline, with revenue down 0.3%. Infosys reported revenue growth of 4.6%. HCLTech reported growth of 6%.

Federal Bank and Jana Small Finance Bank

Federal Bank shares fell nearly 4% intraday after reports that the bank was in advanced talks to buy a controlling stake in Jana Small Finance Bank. The reported transaction involved promoter Jana Holdings’ 16.9% stake followed by an open offer. Federal Bank later said there was no material event requiring disclosure.

Reliance evaluates aluminium production

Reliance Industries is evaluating a move into aluminium production as part of a broader metals strategy. Adani Enterprises had earlier announced an $11.5 billion investment to enter aluminium. Reliance has won two coal blocks in Andhra Pradesh and plans to develop a coal-gasification project in the state.

The Economic Times reported on 20 August that Reliance proposed investing ₹2.73 trillion over 30 years to create India’s first integrated underground coal-gasification complex in Andhra Pradesh. Reliance did not respond to Mint’s queries before press time.

Domestic aluminium consumption is expected to rise from nearly 6 million tonnes in FY26 to 8.5 million tonnes by FY30 and 28 million tonnes by FY47.

Even after around 4.5 million tonnes per year of announced capacity expansion, India could face a supply gap of around 1.4 million to 1.5 million tonnes per year by FY30. Vedanta Aluminium’s Balco emerged as the preferred bidder for the Karlapat bauxite block with a record auction premium of 175%.

Larsen & Toubro

Larsen & Toubro secured a mega order worth ₹5,000 crore to ₹10,000 crore. The company will develop three battery-energy-storage projects in West Asia.

VA Tech WABAG

VA Tech WABAG formally signed a major desalination project in Kuwait. The plant will have capacity of 60 MIGD, or around 272 MLD. It will be developed on a design-build-operate basis. This is the company’s first project in Kuwait.

Hyundai and Jio-bp

Hyundai Motor India and Jio-bp are integrating their EV charging networks. Hyundai customers will get access to more than 37,000 charging points through the myHyundai app. This includes more than 7,000 Jio-bp charging points across over 300 cities.

Kedaara Capital and Tynor Orthotics

Kedaara Capital Investment Managers invested around $200 million in Tynor Orthotics. Tynor manufactures orthopaedic supports, mobility aids and rehabilitation products. Kedaara had earlier been the leading bidder for a majority stake in the Mohali-based business at a valuation of around ₹3,500 crore to ₹4,000 crore.

Shree Naman Group hotel acquisitions

Mumbai-based Shree Naman Group won bids for two hotels:

• JW Marriott in Bengaluru.
• Crowne Plaza in Pune.

The combined enterprise value is around ₹1,800 crore. Around ₹1,611 crore is allocated to the JW Marriott and ₹189 crore to the Crowne Plaza.

Airbound funding

Bengaluru-based autonomous logistics and delivery-drone startup Airbound raised $37 million in a Series A round. The round was led by Greenoaks. Other investors included:

• DoorDash.
• Physical Intelligence founder Lachy Groom.
• Lightspeed.
• Humba Ventures.

Airbound has now raised almost $50 million in total. India’s deeptech sector has raised $2.2 billion across 187 deals so far in 2026. In 2025, the sector raised $1.6 billion across 487 deals.

Boundless VC

AI-focused venture-capital firm Boundless VC closed its first fund at ₹300 crore, or $35 million. It has invested in 10 companies so far.

Ribbit Capital’s Groww block deal

Ribbit Capital plans to sell up to ₹1,914 crore, or $200 million, of shares in Groww parent Billionbrains Garage Ventures. The block deal includes up to 98.2 million shares, around 1.6% of outstanding equity.

The floor price is ₹195 per share. This represents a 3.95% discount to Groww’s NSE closing price of ₹203.01 on 25 August. J.P. Morgan India is the sole placement agent. The deal is entirely secondary and carries a 30-day lock-in period. Buyers will pay a brokerage commission of 25 basis points.

Welspun Corp block deal

Welspun Investments and Commercials and Welspun Corp managing director and CEO Vipul Mathur plan to sell shares worth up to ₹1,418 crore, or $149 million. The two sellers are offering up to:

• 6 million shares.
• 300,000 shares.

Together, the shares represent around 2.4% of outstanding equity. The floor price is ₹2,250 per share. This is a 4.1% discount to Tuesday’s NSE close of ₹2,345.50. Both sellers will have a 90-day lock-up on their remaining shares.

Hindustan Copper offer for sale

The government’s Hindustan Copper offer for sale was subscribed 3.41 times on the opening day. The Centre therefore decided to exercise the full green-shoe option. The government initially offered a 3% stake, or 29 million shares. It has the option to sell another 3%. The floor price is ₹514 per share. Selling the full 6% could raise around ₹2,982 crore.

Avaada Electro IPO

Avaada Electro may file publicly for an IPO as early as this month. The solar-manufacturing company could raise as much as $800 million. The banks appointed for the potential issue include:

• ICICI Securities.
• Axis Capital.
• HSBC Holdings.
• IIFL Capital Services.
• Bank of America.

Dollar bond plans withdrawn

Yes Bank withdrew a plan to raise around $500 million through three-year dollar bonds after investors demanded higher yields. Federal Bank and RBL Bank have also dropped planned dollar-bond issues.

SoftBank sells Lenskart stake

SoftBank sold a 2.58% stake in Lenskart worth ₹2,888 crore. Buyers included Goldman Sachs and Societe Generale. The transaction was completed through block deals.

Netweb Technologies QIP

Netweb Technologies raised ₹1,200 crore through a qualified institutional placement.

SBI Funds Management pre-IPO round

The family offices of Azim Premji and Sun Pharmaceutical’s promoters participated in SBI Funds Management’s pre-IPO round. India now has more than 300 family offices. There were around 45 in 2018.

Trading volumes in India’s unlisted market have fallen 40% to 70% from their late-2025 peaks. Average IPO listing gains also fell from 28% in FY25 to 8% in FY26 despite record market activity.

Kotak Private Banking; Ionic Wealth

Vishal Mega Mart

Vishal Mega Mart reappointed Gunender Kapur as managing director and CEO. His new term runs from 1 September 2026 to 31 August 2031. The stock fell 1% on Tuesday after rising 10% on Monday.

Q1FY27 revenue increased 19% year-on-year to ₹3,730 crore. Growth was helped by:

• Same-store sales growth of 10%.
• An 11% increase in retail space.
• 24 net new stores.

The company now has:

• 819 stores.
• Presence in 559 cities.
• 13.8 million sq ft of retail area.

Reported EBITDA margin remained at 14.6%. Pre-Ind AS EBITDA margin increased 25 basis points to 10.2%. Mutual fund ownership increased from 4.4% in December 2024 to 30.6% in June. Foreign institutional ownership increased from 4.6% to 20.4%. The stock trades at 42 times estimated FY28 earnings based on Bloomberg consensus.

Navin Fluorine International

Navin Fluorine’s FY26 revenue increased 41% year-on-year to ₹3,314 crore. EBITDA margin increased to 33% from 23% in FY25. Q1FY27 revenue rose 44% to ₹1,045 crore. EBITDA margin was 34%.

The company is adding up to 15,000 tonnes of R32 hydrofluorocarbon capacity. The new capacity is expected to start operations in Q3FY27. Management estimates peak annual revenue potential of ₹600 crore to ₹825 crore from the additional capacity.

PL Capital estimates company revenue of:

• ₹4,219 crore in FY27.
• ₹4,933 crore in FY28.

CDMO revenue increased 82% year-on-year to ₹180 crore in Q1FY27. Management expects CDMO revenue to reach $100 million in FY27. The stock trades at 48 times estimated FY27 earnings based on Bloomberg.

PL Capital; Bloomberg

Hero MotoCorp

Hero MotoCorp’s electric-vehicle sales rose 196% to 144,330 units in FY26. Exports increased 39% year-on-year to 402,744 units during 2025-26. Its premium motorcycle range above 125cc grew 2% to 73,739 units. Total sales increased 7% to 6.06 million units.

Federation of Automobile Dealers Association; Society of Automobile Manufacturers

FedEx India

FedEx India revenue grew more than 40% last year. The company has announced $400 million of investment in India this year. This includes:

• $250 million for a cargo hub at the Adani-operated Navi Mumbai airport.
• $150 million at the GMR Airports-operated Delhi airport.

India’s exports

India’s combined merchandise and services exports during April to July are estimated at $316.42 billion. This is 13.16% higher year-on-year. In July:

• Electronics exports increased 57.40% to $5.92 billion.
• Engineering-goods exports increased 17.71% to $12.24 billion.

Commerce Ministry

Retail derivatives activity

Active retail and individual traders in equity derivatives fell to 78.6 lakh in FY26 from 98.1 lakh in the previous year. Gross turnover fell only 5% to ₹202.26 trillion. Individual futures turnover fell around 20%. Options turnover increased around 16%. Average net loss per trader rose 2.4% to ₹1.17 lakh.

SEBI

Varanium Cloud

SEBI barred Varanium Cloud and promoter Harshawardhan Sabale from the securities market for seven years. SEBI ordered Sabale to disgorge ₹128.77 crore of alleged gains. The company was also directed to return ₹62.51 crore that SEBI found had been diverted from IPO and rights-issue proceeds. The amount must be returned with 12% interest.

SEBI

Subhash Chandra repayment plan

The National Company Law Tribunal’s special bench approved a repayment plan proposed by Zee Group founder and chairman Subhash Chandra. Under the plan, he will pay ₹6.5 crore against admitted creditor claims of around ₹22,006.57 crore. This gives creditors a recovery of around 0.03%. The plan received 80.814% of the voting share in November 2024.

The order shows that the following banks opposed it:

• HDFC Bank.
• Axis Bank.
• Canara Bank.
• RBL Bank.
• Union Bank of India.

Subhash Chandra’s office said it did not want to comment while the matter remained under judicial scrutiny.

Proposed carbosulfan ban

The Centre proposed a complete ban on carbosulfan. Carbosulfan is a widely used insecticide. The proposal cites toxicity risks and the absence of a specific antidote. An expert panel recommended banning its:

• Manufacture.
• Import.
• Transport.
• Distribution.
• Sale.
• Use.

BIS certification for high-tech companies

Commerce and Industry Minister Piyush Goyal said India will ease BIS certification requirements for high-tech companies. The change will include semiconductor and AI companies. The aim is to reduce regulatory hurdles and increase manufacturing investment.

E-bus and e-truck financing

The Ministry of Heavy Industries asked electric-truck and electric-bus manufacturers to provide sales forecasts for the coming years. The government is working on a new scheme involving interest subsidies and credit guarantees. During stakeholder consultations in May, the government considered a budget of ₹9,852 crore.

The programme could help finance:

• 50,000 electric buses.
• 50,000 electric trucks.
• A five-year implementation period.

Only 52 electric trucks had received incentives under the PM E-Drive scheme as of 24 August.

Ministry of Road Transport and Highways

UPI e-mandates

The 10 largest banks processed nearly 1.8 billion UPI e-mandate transactions in July. This was more than three times the 585 million recorded in July 2025.

NPCI

Upcoming events

Economic and corporate calendar

Global pulse

Global markets

Most major markets in the table ended higher. The Nasdaq 100 gained 0.82%, while the Nikkei 225 rose 0.50%. The Hang Seng and FTSE 100 were almost unchanged but ended slightly lower.

Canada retaliates against US tariffs

Canada announced retaliatory tariffs on around $20 billion of US goods. The products include:

• Steel.
• Dairy products.
• Appliances.
• Farm equipment.
• Seafood.
• Cheese.
• Clothing.
• Cosmetics.
• Toilet paper.

Some tariffs will be as high as 50%. The duties take effect on 8 September. Rates will be 15%, 25% and 50% across more than 700 products. Canada is matching the corresponding US tariff rates. The move followed the US imposing 50% tariffs after trade negotiations failed.

Canadian officials said the goal is to protect domestic companies and reduce imports from the US rather than raise tax revenue. US steel imports have already fallen 30% since Canada imposed a 25% tariff.

Canada also announced a support package worth C$7.5 billion, or $5.4 billion, for workers and businesses. Canadian officials said more than C$30 billion, or $21.7 billion, of tariff-related support has been provided since the beginning of 2025.

AP

China and Iran

China signalled that it will resist US pressure over its economic relationship with Iran. The US has sanctioned dozens of Chinese entities and threatened action against an unnamed large financial institution. Chinese foreign ministry spokesperson Lin Jian said China would take all necessary measures to protect its interests. A Trump-Xi meeting is scheduled for 24 September in Washington.

Bloomberg

Strait of Hormuz

US President Donald Trump said all mines had been detonated or removed from international waters in the Strait of Hormuz. He also said Iran had been told that any ship or boat laying new mines would be destroyed.

The US sanctioned four India-based companies for importing petroleum and petroleum products from Iran. The sanctions are part of a new US initiative announced by Treasury Secretary Scott Bessent.

Reuters; US State Department

India-China border talks

India and China agreed to continue dialogue on their border dispute. Both sides said they would seek a fair, reasonable and mutually acceptable settlement. The talks involved National Security Adviser Ajit Doval and Chinese Foreign Minister Wang Yi.

PTI

Crude oil

Brent crude fell around 3% to approximately $89.5 per barrel. This followed a 2.4% fall in the previous session. Signs of diplomatic progress between Iran and the US reduced supply concerns. Pakistan reported progress after its army chief visited Tehran. The latest US sanctions on Iran were also less severe than markets had expected.

LNG prices

Japan-Korea LNG prices rose above $23 per MMBtu. This was their highest level since January 2023. Extreme heat increased electricity demand across Asia while Middle East supply disruptions reduced LNG availability.

Zinc

Zinc prices rose above $3,830 per tonne. This was their highest level since May 2022. Mine disruptions, logistics problems, falling inventories outside China and expectations of weaker global mine output tightened supply.

Bitcoin

Bitcoin rose above $80,000 to a three-month high. The move was helped by a weaker US dollar after the US Treasury increased bond buybacks and by optimism about clearer US crypto rules. Bitcoin has risen 16% since President Trump called on Congress to pass crypto legislation last week.

US Treasury yields

The 30-year US Treasury yield reached 5.34% on 18 August. This was its highest level since 2007. The move came as investors sold bonds after US government debt crossed $40 trillion.

OpenAI’s Jalapeno chip

OpenAI said its new Jalapeno AI chips performed better than Nvidia’s current GB300 lineup during testing. The tests measured:

• AI work completed per unit of power.
• Speed of returning responses.

OpenAI chip chief Richard Ho said the chip performs strongly while using 700 watts. OpenAI plans to start using the chips for its AI models later this year. The chips were developed with Broadcom.

Bloomberg

Amazon semiconductor business

Amazon CEO Andy Jassy said in July that Amazon’s semiconductor operation would generate more than $25 billion of annual revenue if it were a standalone business. Sales are growing at a triple-digit percentage rate.

Bloomberg

AMD and the AI-chip market

AMD’s data-centre revenue more than doubled last quarter to $6.7 billion. AMD CEO Lisa Su expects the total market for AI accelerators to reach $1.4 trillion by 2030. Nvidia still controls around 90% of the accelerator market. Around 150 companies are currently working on more than 200 different AI semiconductor designs. Nvidia shares have gained 15% in 2026. The Philadelphia Stock Exchange Semiconductor Index has gained 66%.

Bloomberg; Jon Peddie Research

Management commentary

On solvency and the deficit

Druckenmiller also said that if the 30-year Treasury must trade at 5.5% to clear the market, that is an invoice rather than a crisis, and that the lasting solution is to address the primary deficit.

On inflation risks and policy

The comment referred to the risk that higher food, fuel and other input costs could spread into broader inflation. The RBI kept the repo rate unchanged at 5.25% earlier this month while its policy minutes showed a more hawkish tone.

On absorbing higher diesel costs

Industrial diesel prices rose as high as ₹155 per litre by the end of May, compared with around ₹92 per litre for retail diesel. Prices have since eased.

Feature: Going global from India

The main route: Liberalised Remittance Scheme

The RBI introduced the Liberalised Remittance Scheme, or LRS, on 4 February 2004 under the Foreign Exchange Management Act, 1999. The original annual limit was $25,000. It has since increased to $250,000 for each resident individual in a financial year.

The $250,000 limit is shared across all permitted LRS uses. These include:

• Education.
• Medical treatment.
• Travel.
• Gifts.
• Maintenance of relatives.
• Investment in foreign securities.

It is not a separate $250,000 limit for each category. The limit applies from 1 April to 31 March and resets every financial year.

LRS is available only to resident individuals. Minors can use it through a guardian. It is not available to:

• Companies.
• Partnership firms.
• Trusts.
• Hindu Undivided Families.

Remittances must go through authorised dealer banks. A PAN is required. Money that returns to India during the year does not restore the LRS limit. If the full $250,000 allowance has been used, no additional LRS remittance can be made during that financial year.

Tax collected at source on LRS remittances

Under Section 206C(1G) of the Income-tax Act, authorised dealer banks collect tax at source, or TCS, on certain LRS remittances. The Finance Act 2025 increased the annual TCS-free threshold from ₹7 lakh to ₹10 lakh from 1 April 2025.

For FY2026-27:

• Investment and other general LRS remittances attract 20% TCS on the amount above ₹10 lakh.
• Self-funded education and medical remittances attract 2% TCS above ₹10 lakh.
• This rate was reduced from 5% under Budget 2026 from 1 April 2026.
• Education funded by a loan covered by Section 80E remains exempt.
• Overseas tour packages attract 2% TCS from the first rupee, with no separate threshold.

TCS is an advance tax, not an additional final tax. It appears in:

• Form 26AS.
• Annual Information Statement.
• Form 27D.

The amount is adjusted against the investor’s final tax liability when the income-tax return is filed. Any excess can be refunded. If PAN is not linked to Aadhaar, or the remitter is treated as a non-filer, Section 206CC can double the applicable TCS rate.

Six routes for investing abroad

Route 1: International mutual funds and fund of funds

Indian mutual funds can invest overseas subject to SEBI limits. The industry-wide cap is $7 billion. Each fund house has a maximum limit of $1 billion. A separate $1 billion limit applies to mutual fund schemes investing in overseas ETFs.

The mutual fund industry reached the $7 billion overseas-investment limit and fund houses were asked to stop accepting fresh subscriptions into overseas schemes from early February 2022. In June 2022, SEBI allowed schemes to accept money again only to the extent that fresh investments would not push utilisation above the level recorded at the end of 1 February 2022. This did not increase the overall limit. Fund houses could invest only to the extent that overseas securities had been sold after 1 February 2022. As a result, not every fund house could reopen subscriptions.

HSBC Mutual Fund reopened subscriptions into some international schemes from 18 August 2026. The limit was ₹2 lakh per PAN per month. Fresh subscriptions had been suspended in December 2025 because of the overseas-investment limits. On 18 August, HSBC opened three overseas funds to new money. On 19 August, Baroda BNP Paribas Aqua stopped accepting new registrations after having reopened earlier in August. Availability can therefore change as investment headroom changes.

Angel One, citing Moneycontrol, reported four schemes accepting fresh investments in late August 2026:

• Baroda BNP Paribas Aqua FoF.
• HSBC Asia Pacific (Ex Japan) Dividend Yield Fund.
• HSBC Brazil Fund.
• HSBC Global Emerging Markets Fund.

The HSBC schemes had a combined cap of ₹2 lakh per PAN each month. Starting a new SIP and continuing an already-running SIP are treated separately and may remain open or close independently.

These investments are made in rupees. They do not use the investor’s $250,000 LRS allowance. They also do not attract Section 206C(1G) TCS because the investor is not making an overseas remittance. The main restriction is the SEBI and AMFI overseas-investment limits.

SEBI; AMFI; Business Standard; Value Research; Angel One

Route 2: India-listed international ETFs

International ETFs listed on Indian exchanges are bought and sold in rupees through an Indian demat and trading account. They do not use LRS. They fall under SEBI’s separate $1 billion limit for Indian mutual fund schemes investing in overseas ETFs. This sits alongside the broader $7 billion overseas-investment limit.

The Invesco EQQQ NASDAQ-100 ETF Fund of Fund falls under the separate overseas-ETF limit. Fresh investments have been suspended since 1 April 2024, when the $1 billion overseas-ETF cap was reported to have been reached.

Route 3: NSE IFSC Receipts at GIFT City

NSE International Exchange launched NSE IFSC Receipts on 3 March 2022. These are unsponsored depository receipts linked to US-listed shares. The product was introduced under the IFSCA regulatory sandbox. It allows Indian retail investors to gain exposure to global stocks through the LRS route.

The receipts are issued by the HDFC Bank IFSC Banking Unit, acting as an IFSCA-recognised custodian. The product covers 50 major US stocks. The receipts are held in the investor’s GIFT City demat account. Settlement takes place on a T+3 basis.

The trades do not attract:

• Securities Transaction Tax.
• Commodity Transaction Tax.
• Stamp duty.

Indian retail investors cannot short-sell NSE IFSC Receipts. NSE India has also completed physical settlement of US stocks through unsponsored depository receipts at GIFT IFSC. Fractional exposure is possible. Some US shares cost hundreds or thousands of dollars, but investors can gain exposure in amounts such as $10 or $20.

Trading hours reported by Zerodha are 8 pm to 2:30 am IST. Under FEMA, GIFT City is treated as offshore. Transactions are made in foreign currency. IFSCA is the regulator rather than SEBI. The route uses the RBI’s LRS and therefore counts against the annual $250,000 limit.

Route 4: Direct overseas brokerage

Buying foreign listed shares directly is a permitted LRS transaction. A resident individual may remit up to $250,000 during a financial year for foreign securities and funds. This personal LRS limit is separate from SEBI’s $7 billion mutual fund industry limit.

Under this route, the investor directly buys shares listed on overseas exchanges rather than depository receipts linked to a limited list of stocks. Investment remittances above ₹10 lakh attract TCS of 20% on the amount above the threshold. The authorised dealer bank collects the TCS when the money is remitted or debited, whichever happens first.

A resident individual cannot use LRS-sourced overseas investments or funds to make a gift to a non-resident. This prevents the annual LRS cap from being bypassed.

Route 5: GIFT City funds and PMS

IFSCA-registered fund-management entities can create funds inside GIFT City that invest in global markets. These vehicles are regulated by IFSCA rather than SEBI’s mutual fund rules. GIFT City fund launches in 2025 included IFSC-based Nasdaq 100 and S&P 500 fund of funds. A reported minimum investment for these products was $5,000.

Route 6: Overseas direct and portfolio investment

The RBI’s Overseas Investment framework separates overseas portfolio investment from overseas direct investment. Resident individuals remain subject to the $250,000 LRS limit. The foreign entity must conduct a bona fide business.

The framework excludes:

• Real-estate businesses.
• Gambling.
• Trading in financial products linked to the Indian rupee.

Round-tripping is also prohibited.

Tax on foreign shares

Foreign shares do not fall under Section 112A. The ₹1.25 lakh exemption available for Indian listed equity therefore does not apply. For foreign shares, the holding period that separates short-term and long-term gains is 24 months.

For foreign shares sold on or after 23 July 2024:

• Long-term capital gains are taxed at 12.5% without indexation.
• Short-term gains are taxed at the investor’s applicable slab rate.

Tax on India-listed international ETFs

For Indian-listed ETFs that invest in foreign securities, the short-term versus long-term holding period is 12 months.

From 1 April 2025:

• Long-term gains are taxed at 12.5%.
• Short-term gains are taxed at the investor’s slab rate.

Foreign dividends and tax credit

Dividends from foreign shares and overseas funds are taxed in India under income from other sources at the investor’s applicable slab rate. Tax may also be withheld in the foreign country.

Where foreign tax has already been paid, an Indian resident may claim:

• Foreign Tax Credit under the relevant Double Taxation Avoidance Agreement.
• Unilateral relief under Section 91 where no treaty exists.

Foreign-asset disclosures

Resident and ordinarily resident individuals must disclose foreign holdings in Schedule FA of the Indian income-tax return. Foreign tax paid is reported in Schedule TR when claiming relief. Income and capital gains from foreign assets must be converted into rupees using the prescribed exchange rate. For dividend income, the relevant exchange rate is the rate on the last day of the month before the month in which the dividend is received.

Main limits by route

The limit that matters depends on the route. For Indian mutual funds and India-listed international ETF routes, the main limits are:

• $7 billion industry-wide overseas limit.
• $1 billion per-AMC limit.
• Separate $1 billion overseas-ETF limit.

For GIFT City and direct overseas brokerage routes, the investor’s own $250,000 annual LRS limit applies. Scheme availability can change frequently because fund houses may run out of overseas-investment headroom.

For investment remittances, 20% TCS applies above ₹10 lakh. TCS is an advance tax and can be adjusted against final tax liability. Foreign shares use a 24-month holding period for long-term capital gains. Indian-listed ETFs investing in foreign securities use a 12-month holding period. Long-term gains in both cases are taxed at 12.5% without indexation under the rules described above.

Resident and ordinarily resident individuals must disclose foreign assets in Schedule FA and foreign tax in Schedule TR. The rupee value of a foreign holding depends on both the price of the asset and the exchange rate used for Indian tax purposes.

RBI; SEBI; AMFI; IFSCA; NSE India; NSE IFSC; Income-tax Act; Zerodha Varsity; Angel One. Regulatory limits, scheme availability and tax rates can change and should be checked against the relevant primary source before acting.

Closing note

Market data: Zerodha AfterMarket Report, 25 August 2026 close. Editorial: Mint Mumbai print edition, 26 August 2026. Feature: named public sources. For information only; not investment advice.