Is the AI trade losing steam? 🤖
Logistics going global, pharma handshakes, and fashion's next chapter.
🗓️ Morning, folks! ☀️
A rough start to the week for Dalal Street.
Selling pressure intensified as the session progressed, dragging both the Sensex and Nifty down nearly 1%.
Investors remained cautious amid rising geopolitical tensions, while a sharp jump in crude oil prices and continued foreign investor selling added to the pressure.
Both benchmark indices also closed at their lowest levels in nearly two months.
The Middle East is heating up again.
Israel and Iran have exchanged fresh missile attacks, while Yemen’s Houthi rebels fired a missile at Israel and threatened to disrupt shipping in the Red Sea.
The flare-up marks the most serious escalation since a ceasefire was reached two months ago.
Israeli authorities said Iran launched three waves of missiles, with explosions heard across central Israel as air defence systems intercepted the attacks.
US President Donald Trump has urged both sides to stop firing, while Iran has accused Washington of being partly responsible for repeated ceasefire violations.
💡 Spotlight: is the AI trade losing steam? 🤖
AI and data centre stocks saw heavy selling on Monday, with companies like Netweb Technologies, E2E Networks, and Anant Raj among the biggest losers.
Nasdaq fell more than 4.5% last week, while AI-linked giants such as Samsung, SK Hynix, TSMC, and Foxconn also came under pressure.
Investors are increasingly questioning whether AI-related stocks have run too far, too fast.
While the long-term AI story remains intact, the latest correction is a reminder that even the hottest themes can cool down when valuations start looking stretched.
Let’s hit it! 💪🏻
1 Big thing: Nvidia and SK Hynix team up 🤖
Okay, so two of the biggest companies in the AI world have decided to work even more closely together.
What’s brewing: Nvidia and South Korea’s SK Hynix have announced a multi-year partnership to build the next generation of AI hardware.
Now when we say next generation, it means if Nvidia is the company designing the brains behind AI, then SK Hynix is helping build the memory that allows those brains to think faster.
This memory, called High Bandwidth Memory (HBM), has become one of the hottest products in tech because every AI model needs enormous amounts of it.
The big plan: the two companies will jointly develop memory for Nvidia’s future AI supercomputers, AI PCs, and even robots. They will also use AI to design better chips and improve semiconductor manufacturing itself.
Why this is such a big deal: the world is currently facing a race to build what Nvidia CEO Jensen Huang calls ‘AI factories’, massive data centres filled with AI chips.
The challenge is that advanced memory chips can take years to develop and billions of dollars to manufacture. By locking in a long-term partnership, Nvidia is ensuring it has enough supply to keep up with the demand.
2. Sailing into a new continent ⛵
Adani Ports has won a 10-year contract linked to Argentina’s first LNG (liquefied natural gas) export project, marking its entry into South America.
The deets: the deal was secured through Adani Harbour International, a subsidiary of Adani Ports, in partnership with Argentina-based Meridian Group.
The company will help run the marine operations supporting the Southern Energy FLNG project.
The Southern Energy FLNG project is being developed by SESA, a joint venture between Golar LNG and Pan American Energy (PAE).
To make this happen, the consortium plans to deploy a fleet of specialised vessels and invest around $70 million.
Why it matters: Argentina is aiming to export up to 10 million tonnes of LNG a year to India by 2027, potentially creating a new energy corridor between the two countries. The deal also shows how Adani Ports is becoming much more than a port operator.
With the capacity to handle 653 million tonnes of cargo annually, Adani Ports already manages around 27% of India’s port cargo volumes. By 2030, it wants to push that figure to 1 billion tonnes.
More on deals 💸,
Alembic Pharmaceuticals shares gained after it announced plans to strengthen its presence in Canada.
What’s going on: the company has signed a deal to invest in a newly formed Canadian entity, which will focus on developing, marketing and distributing pharma products in the country.
That’s not all, 👀
Viyash Scientific, through its subsidiary Alivira Animal Health, has signed a deal to buy 100% of BioForLife Italia Srl, a Milan-based pet care company, for ₹188 crore.
Why it matters: the deal will help expand Alivira’s animal health business and strengthen its presence in Europe, especially Italy, which is one of the region’s fifth largest animal health markets.
3. Indian defence maker lands major North America order 🛡️
Hyderabad-based Sigma Advanced Systems has secured a ₹208 crore contract from a North American customer to manufacture and supply 40,000 units of 155 mm M107 artillery shell bodies.
What it means: a 155 mm artillery shell body is the main metal casing used in large military ammunition fired by long-range artillery guns.
Why this matters: for Sigma, the deal signals growing global demand for Indian-made defence products and highlights the country’s rising capabilities in precision manufacturing.
More on orders, 🤝
Dynacons Systems has secured a ₹125.88 crore contract from the Central Bank of India to upgrade the bank’s core technology infrastructure.
What’s happening: the project involves expanding the bank’s private cloud infrastructure and setting up advanced computing systems powered by NVIDIA H200 Blackwell GPUs.
These are high-performance chips widely used to run AI applications and process large amounts of data quickly.
4. Can India keep its taps running? 💦
When the Jal Jeevan Mission was launched in August 2019, only 3.23 crore households had tap water connections, just 16.7% of India’s 19.35 crore rural households.
Since then, over 12.62 crore households have been connected to tap water under the mission. As of now, 15.86 crore households, or 81.9% of all rural households, have access to tap water.
That’s one of the fastest infrastructure rollouts India has seen in recent years. But, progress hasn’t been uniform, with some states racing ahead while others lag behind.
Quick bite: Prime Minister Narendra Modi will complete 12 years in office on June 10, becoming India's longest-serving Prime Minister after Pandit Jawaharlal Nehru.
5. Fashion is preparing for the Ozempic body 👗
Drugs like Ozempic, Wegovy and Mounjaro are helping millions lose weight, and that’s creating an unexpected challenge for fashion retailers.
In the US, 12% of adults have used a GLP-1 drug, and 80% of users expect to buy new clothes because of body-size changes.
But while wardrobe refreshes can boost sales, they also make it harder for retailers to predict which sizes customers will need.
It is estimated that apparel retailers could face nearly ₹42,000 crore ($5 billion) in inventory mismatches by 2027 if they fail to adapt.
6. Stocks that kept us interested 🚀
What went up ⬆️
🏗️ Reliance Infra hit the 5% upper circuit after announcing new AI-focused subsidiaries.
💡Creative Newtech jumped 14% after the company bagged advance work order worth ₹3,000 crore from BSNL.
🛣️ HG Infra gained nearly 3% after the company received completion certificate for ₹4,971 cr Ganga Expressway project.
What went down ⬇️
📉 Asian Paints, BPCL, Eternal, other crude-sensitive stocks fell up to 4% as Brent crossed $97.
✈️ IndiGo slipped nearly 3% amid crude oil spike and Airbus delivery concerns.
🕵️ CBI conducted searches in ₹661 cr IDFC First Bank-AU Small Finance Bank fraud case, both stocks down up to 2%.
🏭Tata Steel tumbled 2% as UK project may face 6-8 month delay amid electricity access issues.
What else are we snackin’ 🍿
🍽️ IPO delay: Curefoods has put its ₹800 crore IPO plans on hold amid volatile market conditions, joining other startups delaying public listings.
🤖 AI deal: TCS has secured a multimillion-euro AI-powered deal with Canada Life and will expand its infrastructure services workforce across Europe.
🍺 IPO plans: Carlsberg is preparing to file draft papers for an IPO of its India unit, aiming to raise up to $700 million.
🧬 Biotech funding: Immuneel Therapeutics has raised over ₹100 crore in a Series B round to expand cancer cell therapy manufacturing, commercialisation, and international growth.
That’s a wrap! Don’t let the weekday blues get to you.
And if you’d like to place your brand on this newsletter, let us know.
Hit that 💚 if you liked this issue.
Worth separating two clocks that look like one. The AI equity trade can lose steam while the AI labor market keeps running hot, and right now they are diverging. Naukri's JobSpeak had AI-related hiring up about 32% year on year into mid-2026, and Zinnov pegs the premium for AI, cloud and cyber skills at roughly 1.7x adjacent roles. None of that moves with the Nifty's two-month low. The equity market is repricing AI hype and valuation risk. The labor market is repricing skill scarcity, and that one compounds slower and reverses slower. For anyone reading this as a career signal rather than a trade: a cooling AI index is not a cooling AI skills premium. Which one were you actually betting your next two years on?
Zia. itszia.ai
if they collected all the wealth& licked systems in they would pretend its losing steam fir bext few years& then monopolise…
its just a manufactured system…