India's capital markets presented a study in divergence this week. Foreign portfolio investors (FPIs) demonstrated marked caution, contrasting with the sustained absorption of domestic mutual funds. FPIs withdrew a net US$933mn (million) from Indian equities in the initial three days of December alone—more than double the US$425mn net outflows recorded for November. This persistent selling, driven by elevated valuations, limited upside potential and persistent uncertainty over a pending United States (US)-India trade agreement, has pushed the Indian Rupee (₹) past the 90 mark against the US dollar for the first time. Despite a robust primary market commitment of US$7.6bn (billion) in 2025, which underscores a preference for new listings, FPIs reversed October’s inflows with a sharp US$1.8bn pull-back from the secondary market in November. Their cumulative withdrawal for the fiscal year now stands at US$17.33bn. This cautious stance is also reflected in a sharp decline in debt segment inflows which dropped from US$527mn in November to US$303mn. Counter-balancing this trend, domestic mutual funds purchased ₹38,173.8 crore in November and have bought ₹4.5 lakh crore in 2025, surpassing last year’s total.
The Russo-Indian Pivot and Strategic Autonomy
India and Russia are deepening strategic and trade ties, seeking to rebalance the bilateral trade deficit of roughly ₹59,000 crore. New Delhi is pushing for expanded exports of pharmaceuticals, chemicals and engineering goods to the Russia-led Eurasian Economic Union (EAEU). While India’s crude oil imports from Russia remain robust, benefiting from competitive pricing, trade data show that India’s imports from Russia totalled approximately US$4.88bn in the last fiscal year, with petroleum products accounting for 74.25%. India’s exports to Russia, by contrast, represent just 1.02% of its total exports.
In a move set to enhance India’s logistics infrastructure, Russia’s State-affiliated Delo group is eyeing joint ventures (JVs) with Indian shipyards for terminal and shipbuilding ventures at strategic ports like Mormugao in Goa. President Vladimir Putin’s visit is expected to culminate in a memorandum of understanding (MoU) on nuclear energy cooperation and a strengthening of bilateral defence ties. This geopolitical pivot aligns with India’s broader maritime strategy, with the Indian Navy set to induct over 30 new warships by 2027, pushing its fleet strength beyond 165 vessels and reinforcing its influence in the Indo-Pacific.
Deepening the Domestic Footprint
India is strategically deepening its semiconductor footprint, with its engineering services sector poised to more than double its global outsourcing share from US$1.4bn to US$3bn–US$3.5bn by 2030. This growth is driven by chipmakers’ increasing expenditure on artificial intelligence (AI) and the global trend of supply chain diversification away from China. In a significant step towards self-reliance, the Tata group and US-based Applied Materials have secured mandates to spearhead a ₹4,500 crore project to modernise the Mohali semiconductor fabrication plant. The upgrade aims to transition the plant towards producing advanced 180- nm (nanometre) to 28nm-65nm chips.
Suzlon Energy, India’s largest wind turbine manufacturer, is investing approximately ₹550 crore annually as part of a multi-year smart factory programme and is set to commission three new AI-enabled smart blade factories to execute its 6.2GW (gigawatt) order-book. Meanwhile, in the defence sector, the JSW group is investing US$90mn (₹809 crore) in a partnership with US- based Shield AI to establish a military drone manufacturing facility in Hyderabad, aiming to produce V-BATs for the Indian armed forces and as a global production hub.
Auto Sector Green Shift
The automotive sector remains robust, with the Nifty Auto index hitting record highs, buoyed by post-festival demand, goods and services tax (GST) rate cuts and a strong wedding cycle. Passenger vehicle (PV) sales surged by 19%-21% year-on-year (y-o-y) in November 2025 and market leaders like Maruti Suzuki (21% rise to 170,971 units) and Tata Motors (22% growth) continued their ascent. The two-wheeler (2W) segment also saw strong momentum, with TVS Motor Company’s sales increasing 20% and Royal Enfield’s volumes rising 25%. Forecasts anticipate 7%-10% volume growth in the high teens y-o-y.
Vietnamese electric vehicle (EV) manufacturer VinFast is set to invest an additional US$500mn (₹4,496 crore) in Tamil Nadu to expand its manufacturing footprint for electric scooters and buses. Maruti Suzuki has also committed to aggressively compete, investing ₹250 crore to build charging infrastructure and plans to install 100,000 EV charging points over five years, coinciding with the launch of its first electric model, the e-Vitara SUV (sports utility vehicle). Despite its global dominance, Tesla’s entry into India's luxury EV market remains tepid, with only 91 units sold between September and November, trailing rivals BMW (267) and Mercedes-Benz (157).
The shift to EVs continues, with Indian e-two-wheeler (e2W) registrations surpassing 1.18mn cumulatively between January and November. Electric 2W) sales in India fell 21% in November to 110,761 units, as global players enter and domestic competition intensifies. Hero MotoCorp rose to third place with 11,795 registrations, surpassing Ola Electric which slipped to fourth with 8,254 units. Bajaj Auto and Ather Energy hold the second and fifth spots. Hero's strategy of building its own EV brand, Vida, contrasts with Ather's. Meanwhile, Yamaha and Suzuki plan new launches and River Mobility aims to develop e-scooters for India and overseas, signalling growing EV market diversification.
Shipbuilding & Naval Expansion
The Indian Navy is embarking on a significant expansion phase, planning to induct over 30 new warships by 2027, pushing its fleet strength beyond 165 vessels. This growth is anchored in the government's AatmaNirbhar Bharat initiative to enhance India’s maritime combat and support capabilities across the Indo-Pacific. The vice chief of naval staff confirmed that 19 warships are slated for induction in 2026 and an additional 13 in 2027, marking the peak of India’s indigenous shipbuilding momentum. Key additions include the anti-submarine warfare shallow water craft (SWC) and P17A frigates featuring advanced stealth design and BrahMos missile capability. The Navy is also developing new indigenous diving support vessels and next generation missile vessels. This fleet expansion, supported by shipyards like Mazagon Dock Shipbuilders and Cochin Shipyard Limited, aims to safeguard vital sea lanes, bolster coastal security and align with India’s blue-water operations strategy.
Pharma Sector: CDMO and Patent Litigation
The Indian bulk drug manufacturing sector is strategically pivoting toward the higher-value contract development and manufacturing organisation (CDMO) services to capture global supply-chain diversification away from China. The domestic CDMO market is projected to reach US$22bn–US$25bn (₹1.8 lakh crore–₹2.1 lakh crore) by 2035. This shift is driving strong investor appetite, with new entrants like Anthem Biosciences commanding high price-to-earnings (P/E) multiples. Firms like SupriyaLifescience and Granules India are making capital investments and strategic acquisitions to target this niche demand. In a significant legal development, the Delhi High Court permitted Dr Reddy’s Laboratories (DRL) to manufacture and export a generic version of the diabetes and anti-obesity drug semaglutide (marketed by Novo Nordisk as Wegovy/Ozempic) to countries where the patent does not apply. While DRL is barred from domestic sales until March 2026, the ruling highlights India’s role as a global generic manufacturing hub and sets a potential precedent in balancing intellectual property rights with public health imperatives, echoing a similar decision concerning Natco Pharma.
Aviation Meltdown
India’s largest airline, IndiGo, has faced a major operational disruption, cancelling over 300 flights in two days and delaying hundreds more due to a pilot shortage exacerbated by the strict enforcement of new flight duty time limitation (FDTL) rules. Data from the ministry of civil aviation showed that 7% of IndiGo’s services were scrapped, with 61% of all flight cancellations last month attributed to FDTL compliance issues. The resulting drop in on-time performance to 35% highlights the difficulty Indian carriers face in balancing regulatory compliance with operational efficiency amidst a recovering aviation sector. IndiGo has initiated schedule adjustments to mitigate the disruptions.
Kaynes Technology Governance Issue
Kaynes Technology shares slid extending a sharp two-day decline as investors remained wary, despite the management’s detailed clarification on governance and accounting concerns flagged by Kotak Equities. Missing related-party disclosures, acquisition accounting gaps, rising working-capital stress and mismatches in Iskraemeco’s reported transactions. The company responded that 1) admitted lapses were ‘inadvertent’, 2) consolidated accounts were accurate, 3) goodwill/intangible treatment under Ind AS 103, 4) explained contingent liabilities (₹520 crore, 18% of net worth) and 5) pegged effective borrowing costs closer to 10%. Investec reiterated its ‘Sell’ rating citing ballooning receivables, ₹550 crore doubtful debt provision, slowing Electronics Manufacturing Services (EMS) business and heavy reliance on Iskraemeco. It warned that if working capital does not improve or government subsidies are delayed, Kaynes may be forced to raise additional funds.
The trends of the major indices in the course of the week's trading are given in the table below:
News
Wockhardt announced that US food and drug administration (US FDA) formally accepted its new drug application (NDA) for Zaynich, a pioneering antibiotic. Filed on 30 September 2025, this marks the first NDA acceptance for a new chemical entity (NCE) by an Indian company. The milestone underscores Wockhardt’s strength in innovation-led drug development, advanced research and regulatory excellence, meeting the highest global standards.
Arvind SmartSpaces (ASL) acquired a residential high-rise project in Vastrapur (Ahmedabad) with a saleable area of 360,000sqft (square feet) and a top-line potential of around ₹400 crore.
L&T Technology Services (LTTS) unveiled an AI-powered digital twin platform to enhance respiratory diagnostics and lung navigation procedures. The solution integrates LTTS’ expertise in medical imaging and AI diagnostics with NVIDIA’s computing stack, enabling low latency, scalable workflows for clinicians.
Veefin Solutions secured a mandate from Bank of the Philippine Islands (BPI), marking its first entry into the Philippines and the global debut of its deep tier finance capability. BPI will adopt Veefin’s end-to-end supply chain finance platform.
Biocon Biologics (BBL), a subsidiary of Biocon (+1.14%), finalised a settlement agreement with Amgen Inc, paving the way for the commercial launch of its Denosumab bio-similars—Vevzuo® and Evfraxy®—in Europe and other international markets.
InterGlobe Aviation (IndiGo) received a ₹117.53 crore penalty order from the joint commissioner of central tax and central excise, CGST Kochi Commissionerate. It involves denial of input tax credit (ITC) claims and alleges improper availing by the airline.
Apollo Micro Systems secured a major boost to its defence roadmap with Department for Promotion of Industry and Internal Trade (DPIIT) granting an industrial explosives and manufacturing licence. This approval from the ministry of commerce & industry strengthens the company’s position in India’s defence manufacturing ecosystem.
Coforge expanded its AI portfolio with the launch of new accelerators on the Quasar AI platform. The accelerators aim to enhance workflow integration, strengthen responsible AI governance and scale enterprise adoption. Since launch, Quasar AI has achieved 300+ paid deployments, 200+ industry solutions and 20+ strategic partnerships, offering secure, governed access to AI models.
Bajaj Auto received a tax demand of ₹34.74 crore plus a penalty of ₹3.47 crore from the deputy commissioner, Rudrapur, under Section 73 of the CGST Act, 2017. The order alleged misclassification of spare parts, with authorities insisting they be treated as auto parts rather than under Bajaj’s long-applied classification rules.
Tata Elxsi announced a global collaboration with the University of Illinois Urbana-Champaign and OSF HealthCare to transform healthcare delivery in rural America. The initiative will deploy hyper-local digital health kiosks powered by Tata Elxsi’s TEngage platform, running on AWS cloud infrastructure. These kiosks will integrate IoMT, hospital information systems, telehealth, remote monitoring and secure data workflows, targeting underserved regions with advanced digital health solutions.
ABB India expanded its all-compatible drive portfolio with the launch of the ACS380‑E drive, tailored for automation-focused machine building. The solution supports India’s digitalisation and smart-factory transition with stronger connectivity, simplified integration and cyber‑security features. Designed for textiles, plastics, cable & wire, intra-logistics and other industries, it reduces commissioning time via embedded dual Ethernet ports and multiple communication protocols, eliminating extra modules and setup complexity.
Gujarat Pipavav Port signed a non-binding MoU with NYK India to enhance its Roll-on/Roll-off (RoRo) infrastructure. The partnership envisions facilities capable of handling up to 500,000 cars annually, supporting India’s growing vehicle and EV exports. The upgrade aims to reduce dwell time, improve vessel rail coordination and strengthen multimodal connectivity at Pipavav Port.
Arfin India launched a new medium voltage covered conductor (MVCC/PVC covered conductor) line under its conductor & cable division. It product targets the power distribution and utilities sector, where supplier presence is limited but demand is rising. It projects ₹100 crore additional revenue over three years, with margin improvement and portfolio diversification.
E2E Networks started execution of the Graphic processing unit (GPU) resource allocation under the India AI Mission, following MeitY’s approval for GNANI AI. The order is valued at ₹177 crore, marking a significant step in deploying high-performance GPU infrastructure. This initiative strengthens India’s national AI ecosystem and supports GNANI’s advanced AI workloads.
Lupin signed an exclusive licensing agreement with US-based Valorum Biologics for the rollout of its bio-similar Armlupeg™ (pegfilgrastimunne) in the US. The deal combines Lupin’s manufacturing strength with Valorum’s commercialisation expertise in the American bio-similars market. This partnership positions Lupin to expand its oncology bio-similars footprint in the US.
Zydus Lifesciences received the US FDA establishment inspection report (EIR) for its Jarod injectable facility in Vadodara. The site has been classified under voluntary action indicated (VAI), meaning observations were noted but no immediate enforcement action is required.
Granules India’s US subsidiary, Granules Consumer Health, LLC, has cleared a US FDA good manufacturing practices (GMP) inspection with zero observations. This marks its second successful audit, after the March 2023 review that ended with a no action indicated (NAI) classification. The milestone reinforces the facility’s strong compliance track record with US regulatory standards.
RateGain Travel Technologies launched Rev‑AI Clarity, a new AI-powered revenue assistant for the car rental industry. Part of its Rev‑AI suite, the tool simplifies how operators track demand, pricing trends and performance data. Designed for revenue and commercial teams, it replaces manual dashboard analysis with instant conversational answers on demand forecasts, city-specific pricing and monthly performance pacing.
Hexaware Technologies expanded its global footprint with a new delivery centre in Cairo. The facility launches with around 100 professionals, serving clients across Egypt, the Middle East and major European markets. Located in a leading Cairo technology park, it leverages Egypt’s talent pool, multilingual capabilities (Arabic, English, European languages), and favourable time zone—strengthening Hexaware’s CX and IT service delivery hub strategy.
Orders
BEML received a ₹414 crore order from Bangalore Metro Rail Corporation for phase-2 trainsets. The contract aligns with its role as a key rolling stock supplier to metro projects nationwide. This addition supports expanding Bengaluru metro capacity to meet rising passenger traffic on extended routes. BEML (-0.55%) secured a ₹157-crore order from Loram Rail Maintenance India for switch rail grinding machines. The machines will be supplied to Indian Railways for track maintenance operations. BEML confirmed the contract is part of its normal course of business.
Mahindra & Mahindra disclosed that its subsidiary Mahindra Overseas Investment Company (Mauritius) Ltd (MOICML) sold 3.58% of CIE Automotive SA (CIE Spain). The stake sale generated about €119mn in proceeds, as per the regulatory filing. CIE Spain remains classified as an associate company of MOICML following the transaction.
Subros secured a ₹52.18 crore order from Indian Railways for a 3‑year cab HVAC maintenance contract. The tender was awarded by Banaras Locomotive Works (BLW), Varanasi, a key Railways unit. The company confirmed the deal follows standard Railways terms with no promoter/related-party involvement.
Transformers and Rectifiers secured a ₹53.33 crore order from Power Grid Corporation of India Ltd. The scope covers repair, erection, testing and commissioning of a 397MVA (megavolt-ampere) high-voltage direct current (HVDC) converter transformer. Delivery is slated for the next financial year, with no related-party involvement from the promoter group.
Insolation Energy, through its subsidiary, Insolation Green Energy, has secured fresh sale orders worth ₹516.05 crore (incl. GST), strengthening its order-book. The order wins include a ₹357 crore order from an independent power producer (IPP) for N-type Topcon solar photovoltaic (PV) modules, highlighting rising domestic adoption of high efficiency technology. Additionally, ₹159.05 crore orders under the PM KUSUM programme will see modules deployed across Andhra Pradesh, supporting decentralised solar power and farmer focused clean energy solutions.
NBCC announced new work orders worth ₹665.38 crore. The projects span redevelopment, renovation and construction assignments. These fall under its normal course of business across multiple Indian cities.
Sterling & Wilson Renewable Energy (SWREL) signed a five-year strategic partnership framework agreement with Adani Green Energy, boosting visibility for future engineering-procurement-construction (EPC) orders. Under this framework, SWREL has already secured its first order worth around ₹1,381 crore (ex‑tax) for the balance of system package across three solar projects at Khavda Renewable Energy Park (Gujarat).
Quick Heal Technologies won ₹64.25 crore, five-year contract from NFSURIC (National Foreignsic and Science University Research and Innovation council). The deal involves deploying integrated cyber security solutions to strengthen NFSU’s digital security framework.
Mahindra Lifespace Developers was selected as preferred partner for a ₹1,010 crore Matunga redevelopment. The 1.53 acre project will transform existing housing into a modern residential community with lifestyle amenities. Strategic location offers connectivity to Shivaji Park, schools, healthcare, retail, metro links and arterial roads.
Investment/ Acquisition / Stake Stale
BCL Industries approved acquiring the remaining 25% stake in Svaksha Distillery Ltd for about ₹55 crore. The move will make Svaksha, which runs a 300KLPD (kilolitre per day) ethanol distillery in Kharagpur, a wholly-owned subsidiary.
Godawari Power & Ispat (GPIL) approved a strategic investment in Deccan Gold Mines Ltd (DGML) via its upcoming rights issue. GPIL will act as a specific investor, subscribing to any unsubscribed shares to ensure at least 90% completion. It may absorb up to 100% of the undersubscribed portion, subject to its group holding not exceeding 25% of DGML’s post-issue capital.
One 97 Communications acquired stakes in Foster Payment Networks (9.99%), Paytm Insuretech (67.55%) and Paytm Financial Services (51.22%), making them 100% subsidiaries. Following the PFSL acquisition, Admirable Software, Mobiquest Mobile Technologies, Urja Money and Fincollect Services became step-down subsidiaries.
Piramal Finance plans to raise ₹675 crore (around US$75.5mn) via the reissue of its 9.30% May 2027 bonds, with bidding set for 1st December. The issue, rated AA by Care Ratings, combines ₹175 crore reissue + ₹500 crore fresh placement, with the coupon to be decided during bidding. Funds will support liquidity and refinancing needs, leveraging strong institutional demand for the May 2027 bonds.
JSW Steel approved a 50:50 JV with Japan’s JFE Steel to operate Bhushan Power & Steel Ltd (BPSL). The entire BPSL business will be transferred to JSW Sambalpur Steel Ltd via a ₹24,483 crore slump sale. Post-transaction, JFE will invest ₹15,750 crore in two tranches for a 50% stake in JSW Kalinga, which will hold BPSL’s steel operations.
Top gainers and losers of the major indices for the week are given in the table below:
