India and China Need Each Other - How Trump’s U.S. Policy Could Shift Global Balance

Welcome Back Investor!

The rupee slipped 4 paise, holding firm above the ₹88 mark, as tariff jitters and rising dollar demand shook investor confidence. With global trade uncertainties mounting, all eyes are on how long the currency can weather this storm.

Let’s dive in!

But before we start!

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▪️ Impact News

▪️ Markets

▪️ Everything else you need to know today

▪️ Special

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▪️ Stock Screener to up your game

IMPACT NEWS

Why India and China Need Each Other Now More Than Ever

Since U.S. President Trump launched a trade war targeting both China and India, the two Asian giants have quietly accelerated efforts to mend fences - and they’re not doing it just out of political courtesy. The push appears driven by practical necessity: intertwined supply chains, energy security, and shared ambitions to counterbalance global market turmoil. With Washington’s tariffs rocking economic stability, India and China are finding common ground in cooperation.

Imagine two siblings forced to hold hands when the wind picks up - Trump’s tariffs are that gust, nudging India and China closer despite past tensions.

India - facing hefty duties on its exports in part due to its continued import of discounted Russian oil - has little room to manoeuvre. The U.S.'s sharp “America First” strategy is exposing New Delhi’s need to diversify economic partners. Rather than retreat, India is leaning east, rekindling ties with China.

This isn’t a full thaw - lingering distrust, border disputes, and trade imbalances still simmer. But with U.S. unpredictability on one side and a shifting global order on the other, the stakes have never been higher.

MARKETS

The Indian stock market rallied on September 1, 2025, with Sensex jumping over 550 points and Nifty 50 climbing nearly 200, driven by upbeat GDP growth of 7.8%, a 17.5-year high manufacturing PMI, and relief after a US court struck down most of Trump-era tariffs on Indian goods. Strong buying in IT and auto stocks fueled momentum, supported by expectations of a potential US Fed rate cut.
_{Closing figures as on 01.09.25 (3.30pm IST)}

🔎 In Focus

Stock Performance:

Top Gainers

✅ Kaynes Tech (₹6,600 ▲7.8%): Surged on strong small-cap momentum and risk-on sentiment after GDP beat; no fresh filing, purely flow-driven buying.

✅ Tube Investments (₹3,140.9 ▲6.0%): Auto-ancillary play jumped with sectoral strength and midcap rally; high volumes confirmed trend.

✅ MCX India (₹7,793 ▲5.5%): Shot up as gold & silver hit lifetime highs on MCX, boosting revenue expectations from higher trading activity.

✅ Dixon Tech (₹17,582 ▲5.3%): EMS leader rallied on midcap strength and strong investor appetite; no company update, move was momentum-led.

Top Losers

🔻 Sun Pharma (₹1,563 ▼2.0%): Slipped toward 52-week lows despite firm markets; weakness linked to ongoing US pricing pressure, no new filing today.

🔻 ITC (₹405.9 ▼0.95%): Declined on fresh chatter about higher tobacco cess ahead of GST meet; FMCG defensive lagged broader rally.

🔻 Divi’s Labs (₹6,093 ▼0.63%): Dropped as pharma stocks underperformed today; no fresh corporate trigger, sector rotation drove weakness.

🔻 Avenue Supermarts (₹4,734.9 ▼0.44%): Marginal dip due to mild profit-taking after recent gains; valuations remain stretched, no new news.

INDIA FRONTIER

Everything else you need to know today

🚗 Slowdown: Mahindra’s SUV sales dipped for the first time in over three years, signaling that India’s once red-hot auto demand may be cooling. With tax cut talks looming, all eyes are on whether policy tweaks can reignite the engine - or if this marks the start of a longer skid.

🔋 Charge: Ashok Leyland just committed over $571 million to EV battery production, signaling India’s bold leap into green mobility. By betting big on electrification, the automaker aims to secure a front-row seat in the global race for sustainable transport.

⛽ Denial: India’s Oil Minister has pushed back against reports of the country stockpiling discounted Russian crude, stressing that imports remain balanced. But with global energy politics heating up.

💼 Resilience: Big Tech isn’t slowing down in India. Despite U.S.-India trade tensions, giants like Google, Amazon, and Microsoft recorded their strongest headcount growth in three years. The message is clear: when it comes to tech talent, India remains too critical to ignore.

SPECIAL

Tata Capital IPO: Growth Potential and Key Risks Explained

Tata Capital, the financial services arm of the Tata Group, is preparing for its much-anticipated IPO, marking a significant milestone for the conglomerate’s flagship NBFC. The offering is expected to attract strong investor interest, given Tata’s trusted brand legacy and the surging demand for credit across India’s fast-growing economy.

The IPO comes at a time when India’s non-banking financial sector is expanding rapidly, driven by rising retail credit, infrastructure funding, and SME financing. Tata Capital has steadily built its presence across consumer loans, wealth management, and corporate lending, positioning itself as a strong challenger to established players like Bajaj Finance and HDFC Ltd. For investors, the growth opportunity is clear: India’s NBFC market is projected to expand at a double-digit pace, with Tata Capital well-placed to capture that demand.

But risks remain. The NBFC sector faces regulatory tightening, rising competition from fintech players, and the challenge of maintaining asset quality in a volatile macro environment. Any slip in loan recovery or sudden interest rate shocks could weigh on margins.

Still, Tata Capital’s scale, diversified portfolio, and backing from the Tata Group lend it a unique edge. This IPO isn’t just another market debut - it’s a litmus test of investor appetite for India’s financial sector at a time of global uncertainty.

THE HANOOMAAN INSTITUTE

🏆 Warren Buffett’s 10 Laws of Success

Warren Buffett’s principles of success aren’t just for investors - they’re survival strategies for founders.

How each law applies when you’re building from zero to one:

1️⃣ Discipline: Show up daily. Shipping product beats waiting for “perfect.”
2️⃣ Long-Term Thinking: Unicorns aren’t built in a quarter. Compounding small wins matters more.
3️⃣ Circle of Competence: Build in spaces you deeply understand. Chasing hype markets = wasted years.
4️⃣ Patience: Success is a slow burn. Most “overnight successes” take 10+ years.
5️⃣ Reputation: Protect it like equity. One misstep with users or investors can set you back years.
6️⃣ Continuous Learning: Buffett reads daily; founders should absorb markets, users, and failures relentlessly.
7️⃣ Saying No: Focus is oxygen. Not every partnership, feature, or trend is worth chasing.
8️⃣ Partnerships: Surround yourself with people whose integrity you’d bet your life on. Co-founder fit > funding.
9️⃣ Integrity: Shortcuts may give quick wins, but trust compounds into enduring advantage.
🔟 Passion: Build what excites you. Energy fuels resilience when the money, hype, and luck run thin.

For founders, these aren’t abstract rules - they’re guardrails for the messy, lonely road of building.

🚀 Play the long game. Protect your name. Learn endlessly. That’s how startups endure.

SUPERCHARGE YOUR INVESTING SKILLS

STOCK SCREENER TO UP YOUR GAME

TIME TO BUY
by - Kaushikjgec

Debt to equity< 1 AND
Sales growth 3Years > 12 AND
Profit growth 3Years > 15 AND
Average return on capital employed 3Years > 20 AND
Average return on equity 3Years > 20 AND
Average dividend payout 3years > 10 AND
Market Capitalization > 500 AND
Market Capitalization < 800000 AND
(OPM last year + OPM preceding year) > 15  AND
(NPM last year + NPM preceding year) > 8 AND
((Debtor days < 60) OR ((Inventory turnover ratio * NPM last year)  > 100 ))

Thanks for reading.

Until tomorrow!

Hanoomaan India Business team

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