Market Munch – June 12, 2025

The Singapore state investment company has joined AI Infrastructure Partnership, a group that also includes BlackRock's Global Infrastructure Partners, the slides showed.

Vikram Misri and Sun Weidong met in New Delhi to improve India-China relations. They focused on people-centric engagements and resuming direct flights. Progress since their last meeting in Beijing was reviewed. Misri appreciated China's help in restarting the Kailash Manasarovar Yatra. Discussions included sharing hydrological data on trans-border rivers. Both sides aimed to ease visa procedures and promote exchanges.

Amid escalating Israel-Iran tensions, Adani Ports and 12 other Indian companies with Israeli ties have come under the spotlight. Adani Ports fell 3% due to its Haifa Port exposure, while firms like TCS, L&T, Sun Pharma, and ONGC also saw market action.

An Air India flight AI 379, en route from Phuket to Delhi, executed an emergency landing in Phuket after a bomb threat was received shortly after departure. The aircraft safely returned to Phuket International Airport, where emergency protocols were immediately activated.

Delivering the keynote address at ETCFO NextGen Summit 2025, Ananth Narayan said there are some perceived challenges around valuations including a perceived conflict of interest, “valuation shopping”, and wide divergence in valuations due to differing assumptions.

Uttar Pradesh's new GCC policy aims to establish the state as a prominent office space hub, generating over 2 lakh high-paying jobs in five years. The policy offers substantial subsidies on land costs, capital investments, and stamp duty exemptions, incentivizing job creation and technological innovation.

The Finance Ministry’s denial of plans to reintroduce MDR on UPI payments has dampened fintech firms’ monetisation hopes, leading to a drop in their stock prices. Industry players had anticipated MDR's return for large transactions, which could boost revenues, especially ahead of several upcoming fintech IPOs.

Google has resolved a global outage that disrupted services including Gmail, Google Drive, Spotify, and Discord. The disruption, beginning around 1:50 p.m. ET, affected thousands of users. While most services have recovered, some residual impact remains. Google will release a full analysis following its internal investigation.

Iran-Israel War news: In a dramatic escalation, Israel launched Operation Rising Lion, striking nuclear and military infrastructure deep within Iran, citing concerns over Iran's nuclear weapons program. Prime Minister Netanyahu declared it a necessary act for Israel's survival and regional defense. The strikes have heightened tensions, raising fears of broader conflict and significant impacts on global trade and diplomatic relations.

Stock Market Crash: Indian stock markets crashed early Friday following Israeli strikes on Iran. This mirrored losses in Asian markets. The BSE Sensex and Nifty50 both saw significant drops. The oil & Gas sector suffered the most. Broader market indices also declined. Market capitalisation decreased substantially. The Israeli strike and surging oil prices are key factors. Brent crude and U.S.

Richard Harris from Port Shelter Investment discusses market fragility amidst geopolitical tensions, particularly between Iran and Israel. While markets have shown resilience, factors like upcoming tariff deadlines and concerns about unemployment contribute to instability. Harris suggests gold as a potential safe haven asset, anticipating short-term market reactions to global events before a likely return to normalcy.

An Air India Boeing 787-8 Dreamliner crashed shortly after takeoff from Ahmedabad, killing all 242 on board. The incident intensifies scrutiny on Boeing, already facing controversies over safety and production quality following past 737 MAX crashes and other issues.

Oil prices dramatically surged following Israel's strikes on Iranian military and nuclear sites, escalating fears of a broader conflict in the Middle East. West Texas Intermediate soared by 12.6 percent, while Brent crude jumped 12.2 percent.

The Air India crash in Ahmedabad is expected to result in India's costliest aviation insurance claim, with estimates exceeding $120 million. The aircraft's hull loss alone is pegged at around $80 million, while passenger liability may range from $30–100 million due to high-net-worth passengers. Tata AIG is the lead insurer, with others like New India Assurance holding minor stakes. Most of the risk is covered by global reinsurers. The crash is likely to push up global aviation insurance rates, especially in India.

Sinha clarified that hybrid vehicles, which combine petrol/diesel engine with an electric motor to improve fuel efficiency and lower emissions, are welcome and will not be “penalised” by the central government.

India’s own magnet demand has soared. From 12,400 tonnes in FY2021, usage has quadrupled to nearly 54,000 tonnes in FY2025, according to government estimates. The spike is a direct consequence of policy initiatives that promote green mobility, solar and wind capacity, and Make-in-India electronics. But infrastructure without inputs is futile.

There has been a surge in private investments in the last 11 years, with Indian startups and emerging entities attracting significant private funding to the tune of over $150 billion in the past decade, Commerce and Industry Minister Piyush Goyal said on Thursday.

Chandrasekaran said the airline is doing everything to assist the emergency response teams at the site and provide all necessary support and care to those impacted

Zensar Technologies has been hit with a Rs 1.76 crore tax penalty over service tax return discrepancies. The company, part of the $4.8 billion RPG Group, says the penalty won't impact operations.

A devastating Air India Dreamliner crash near Ahmedabad airport has claimed lives shortly after takeoff. The London-bound flight AI171, carrying 242 people, crashed in a residential area, triggering a massive explosion. Rescue operations are underway, with NDRF teams deployed and Gujarat CM directing immediate assistance.