Scam 2026 incoming…? 🧐
Global tie-ups, fresh entertainment listing, and Ola’s reality check.
🗓️ Morning, folks and Happy Fridayyyy! ☀️
It was a quiet but positive Thursday for Dalal Street.
Sensex and Nifty ended slightly higher after a choppy session. Financial stocks did most of the heavy lifting, with a few heavyweight names helping the benchmarks stay in the green.
However, IT and metal stocks remained under pressure.
Investor sentiment also got a small boost after the government approved an ordinance to ease tax rules for certain foreign investors.
Now, all eyes are on RBI’s policy decision. 👀
💡 Spotlight: India eyes closer energy ties with Venezuela 🛢️
Venezuela’s Acting President Delcy Rodriguez met Prime Minister Narendra Modi yesterday, and one topic dominated the conversation: energy.
Venezuela has already become India’s third-largest crude oil supplier this month, as India looks to diversify its energy sources amid global supply disruptions.
Venezuela is also home to the world’s largest proven oil reserves, and is also pitching opportunities in mining, pharmaceuticals, automobiles, agriculture, and transportation.
For India, it could mean access to critical resources and new export markets.
For Venezuela, India offers something equally valuable: a large, long-term customer as one of the world’s biggest energy importers.
Let’s hit it! 💪🏻
1 Big thing: Rajesh Exports under SEBI’s lens 🔻
SEBI has accused Rajesh Exports of significantly overstating its business operations over several years.
What’s going on: according to the regulator, the alleged revenue misrepresentation adds up to a whopping ₹15.15 lakh crore.
The Bengaluru-based company built its reputation as a global gold powerhouse, refining precious metals and exporting jewellery across the world.
The company is now under some intense scrutiny.
Market action: Rajesh Exports’ shares hit the 4.99% lower circuit after the market regulator barred the company and its chairman, Rajesh Mehta, from accessing the securities market until the investigation is complete.
According to SEBI, nearly every rupee of revenue reported by Rajesh Exports came from its foreign subsidiaries, particularly Swiss company Valcambi SA.
Because these subsidiaries generated such a large share of the company’s business, regulators are taking a close look at how their numbers were reported.
SEBI has further alleged that the company misstated standalone revenues worth ₹12,557 crore between FY21 and FY24.
Not the first time: the company has faced scrutiny before, including a SEBI ban in the early 2000s, investigations into alleged circular trading, and repeated questions from stock exchanges over compliance and disclosure issues.
Why it matters: one of Rajesh Exports’ largest shareholders is state-owned Life Insurance Corporation of India (LIC), which owns about 10.8% of the company.
And that’s important because LIC’s investments are ultimately backed by policyholders’ premiums. In other words, many households may have indirect exposure to Rajesh Exports through their insurance savings.
Speaking to Moneycontrol, Chairman and Managing Director Rajesh Mehta dismissed the allegations, saying the order is only interim in nature and that ‘nothing in it is true.’
We also broke this down on video.
2. Can Taiwan power Dixon’s next leap? 🚀
Dixon Technologies gained more than 2% after it teamed up with a Taiwanese technology giant to manufacture laptops, desktops, and data centre hardware in India.
The company is setting up a new manufacturing facility in Chennai.
The why: until now, Dixon has largely been known for manufacturing these electronics items. But the company sees the next big opportunity in data centres and IT hardware.
Why it matters: Taiwan sits at the heart of the global AI supply chain and the AI boom has transformed the country’s economy.
Every AI model needs servers, data centres, networking equipment, laptops, and computing hardware.
Big picture: according to the International Energy Agency (IEA), data centres are expected to drive an additional 530 terawatt-hours (TWh) of global electricity demand between 2024 and 2030.
In fact, data centres are expected to become one of the fastest-growing sources of power demand globally, alongside electric vehicles and cooling systems.
3. Govt’s new pitch to foreign investors 💸
The Union Cabinet approved a proposal to relax tax rules for certain foreign investors, making it easier and more attractive for them to invest in Indian securities.
What’s happening: according to The Times of India, the government is planning to make it cheaper for foreign investors to invest in Indian government bonds (G-Secs).
At present, foreign investors pay a 12.5% tax on profits earned from these bonds and a 20% tax on the interest income they receive.
Under the proposed changes, the government may completely remove the tax on profits from G-Sec investments and could also reduce or scrap the 20% tax on interest income.
Some foreign investors may even be exempt from all taxes on these investments.
The main trigger: the proposed tax relief comes at a time when India is facing sustained pressure on both the rupee and foreign investment flows.
So far this year, foreign portfolio investors (FPIs) have pulled out ₹2.47 lakh crore from Indian markets. At the same time, the rupee has weakened by around 6% against the US dollar and briefly touched a record low of 96.96 per dollar in May.
4. Kuku, say hello to Dalal Street 💰
Kuku Technologies, the company behind Kuku FM and Kuku TV, is looking to raise ₹2,500-3,500 crore through its IPO and could be valued at up to ₹15,000 crore ($1.8 billion). The company has filed confidential papers with SEBI for the same.
Founded in 2018, Kuku Technologies operates Kuku FM, an audio content platform, Kuku TV, a short-video app, and Guru, an edutainment platform.
The company has raised over $150 million from investors including MS Dhoni, Krafton, Vertex Ventures, and 3one4 Capital.
We also went on ground to unpack the business behind Kuku in our latest episode of This Is Business.
Want to know what makes the company tick before its IPO? Hit the link to watch.
5. South Korea had its Nvidia moment! 🫡
Samsung is now worth more than Reliance, HDFC Bank, Airtel, TCS and SBI combined.
Even more surprisingly, South Korea's stock market has overtaken India's, despite having a population that's nearly 30 times smaller.
The reason has very little to do with smartphones. Samsung and fellow Korean giant SK Hynix have become two of the world's most important suppliers of advanced memory chips used in AI data centres.
As companies like Nvidia, Microsoft, Amazon and Google spend hundreds of billions of dollars on AI infrastructure, demand for these chips has exploded.
6. Stocks that kept us interested 🚀
What went up ⬆️
📈 Shares of Agarwal Industrial Corporation hit 20% upper circuit after it secured a major supply contract of ₹477.5 crore from Hindustan Petroleum Corporation.
🚌 JBM Auto jumped over 3% after the company recorded 157 electric bus registrations during the month, the highest in the industry.
✅ Drone manufacturing company ideaForge Tech got board approval to raise up to ₹500 crore through a mix of equity and debt. The stock hit 5%.
⛽ Shares of Hero MotoCorp gained after the company launched two flex-fuel motorcycles compatible with E20-E85 fuel.
💪 PhysicsWallah zoomed over 15% after dropping plans to lend directly to students and instead partnering with NBFCs, reducing financial and credit risks.
🛫 US-based investment firm GQG Partners sold a 1.8% stake in airports operator GMR Airports to Fidelity International for ₹1,906 crore. The stock went up 3%.
☀️ Shares of Suzlon Energy jumped over 2% after the company said it is diversifying into solar, battery energy storage systems (BESS) and other businesses.
🔼 Shares of Tejas Networks rallied over 5% on optimism surrounding artificial intelligence-led infrastructure buildout.
What went down ⬇️
🔻LIC shares slipped 1% as it holds a 10.8% stake in Rajesh Exports.
📉 Lenskart shares fell after SoftBank sold ₹2,873 crore worth of stock, continuing its exit from the eyewear retailer.
What else are we snackin’ 🍿
⚖️ ED probe ends: Vedanta said the ED has concluded FEMA-related search operations with no penalties, restrictions, or impact on its business operations.
📉 Valuation cut: Vanguard slashed Ola Consumer’s valuation to $70 million, marking another steep markdown amid ongoing challenges in the ride-hailing business.
🧬 Biologics push: Aurobindo Pharma entered the biologics manufacturing business with a new Hyderabad facility, expanding into a fast-growing global healthcare segment.
⚡ Nigeria order: BHEL secured a ₹2,500 crore international order from Nigeria’s Dangote Petroleum Refinery, boosting its overseas project portfolio.
And that’s a wrap. Pour yourself an extra one this weekend. 🥂
We’ll be back like clockwork on Monday!
Hit that 💚 if you liked this issue.