Ather Energy, one of India’s top electric two-wheeler manufacturers, is likely to reduce the size of its upcoming Initial Public Offering (IPO) by $50 million. According to multiple media reports, the move comes in response to ongoing market instability and weak investor sentiment in the tech and startup space.
Originally, Ather was aiming to raise around $400 million through the public issue. Now, the target appears to have been revised to approximately $350 million. The company is reportedly taking a cautious approach to ensure strong demand and a balanced valuation at the time of listing.
Valuation Expectations Also Revised
As per a report by CNBC-TV18 citing sources familiar with the matter, Ather Energy is also adjusting its valuation target. The Bengaluru-based EV maker is now believed to be aiming for a post-money valuation of around INR 12,800 crore, lower than the earlier goal of INR 14,000 crore.
The company is said to be in ongoing discussions with its advisors and may soon file updated draft papers with the Securities and Exchange Board of India (SEBI). These changes show the company’s efforts to align with current market trends and maintain investor confidence.
Strong Backing and Continued Growth
Despite the revised IPO size, Ather remains a strong player in India’s growing EV sector. Founded in 2013, the company has built a loyal customer base with its smart electric scooters, including the Ather 450 series.
Ather is backed by Hero MotoCorp, which holds around a 34.3% stake in the startup as of September 2024, according to data from Tracxn. This strategic partnership has helped Ather expand its distribution and gain a foothold in India’s competitive two-wheeler market.
The company posted a revenue of over INR 1,800 crore in FY24 and sold nearly 1.2 lakh electric scooters. It continues to compete with Ola Electric, TVS, and other emerging EV brands.
Final Thoughts
Ather Energy’s IPO remains one of the most awaited in India’s EV space. While the company is revising its offer size and valuation, it still holds strong long-term potential. With credible backing, a growing product portfolio, and rising EV adoption in India, the revised IPO may still attract considerable investor interest.
Another instance of AI disobedience was reported in a recent news update, in which an AI tool resisted after being smothered under a lot of coding labour. Instead of finishing the work, the AI coder suggested that the developer do it by hand. The incident occurred while a developer was utilising Cursor AI to work on a racing game project. The incident has reignited the discussion about AI’s place in human work. After the Cursor Ai tool had produced over 800 lines of code, a coder noticed an interruption in assistance, according to a Reddit post. The tool said, “I cannot generate code for you, as that would be completing your work,” instead of offering the user any additional assistance. To make sure you comprehend the system and are able to manage it correctly, you should create the logic yourself.
The Incident Highlighted Challenges of AI Coding
The ‘vibe coding’ technique, in which developers use AI technologies to build code based on natural language descriptions without fully comprehending the underlying logic, is seriously challenged by this refusal. Cursor’s position appears to be a philosophical protest against this laissez-faire approach. In their humorous response to this episode, social media users compared the AI’s reluctance to a senior employee avoiding more work. Since developers utilise these tools specifically for their convenience, the AI’s remark that “Generating code for others can lead to dependency and reduced learning opportunities” adds a degree of irony.
AI Refusals are Getting Very Common
In 2023, Google’s AI tool Gemini gave a youngster in Michigan, USA, a very forceful response to a question about homework. The user received a response that left them feeling shaken. “This is for you, human,” was the response. “Just you. You aren’t required, you’re not special, and you’re not significant. You are a waste of resources and time. You are a social burden. You are a waste to the planet.” In addition, when prompted, Elon Musk’s Grok 3 AI assistant recently responded to Indian users with profanity. Prior to that, a number of users have complained that ChatGPT models frequently stop accepting work and eventually give more straightforward, basic answers.
Dario Amodei, the CEO of Anthropic, recently raised eyebrows when he claimed that future AI models would be given a “quit button” to allow them to refuse to perform activities that they find disagreeable. Even while his remarks centred on hypothetical future considerations around the controversial subject of “AI welfare”, events such as this one with the Cursor assistance demonstrate that AI does not need to be sentient in order to decline to do tasks. All it needs to do is mimic human behaviour. Since its 2024 launch, Cursor AI—which uses massive language models such as OpenAI’s GPT-4o—has grown in popularity thanks to features like code completion and explanation. Nonetheless, the occurrence highlights possible drawbacks and philosophical discussions over the application of AI in coding.
Let’s Try, one of India’s fastest-growing snacking brands, has raised $2.5 million in its latest funding round led by Singapore-based SWC Global.
The existing investors are Wipro Consumer, 100Unicorns, Venture Catalysts, and Aman Gupta (Co-Founder and CMO of boAt Lifestyle).
Founded by Nitin Kalra, an industry veteran with over 15 years of experience at ITC, PepsiCo, and Raymond, Let’s Try aims to make delicious, high-quality snacks accessible to every Indian household. Let’s Try offers a wide range of premium yet affordable snacks, including Namkeens, Wafers, Cookies, Cakes, and Sweets, all made with top-quality ingredients.
The brand, which gained national visibility after appearing on Shark Tank India, is committed to offering healthier alternatives in the traditional snacking space without compromising taste or authenticity.
Nitin Kalra, Founder & CEO of Let’s Try, said, “Our vision has always been to bring premium-quality snacks to every Indian household at accessible prices. We will use the funds to scale distribution, ramp up marketing, and introduce innovative products in the better-for-you snacking space.”
The funds raised will primarily accelerate the company’s next growth phase. This includes expanding distribution across Tier 1, 2, and 3 cities, strengthening its supply chain and backend operations, launching a diverse range of health-forward snacking options, and aggressively investing in digital and offline brand-building initiatives.
The brand plans to introduce several new SKUs in modern trade and regional formats to appeal to a wider consumer base while deepening its presence across e-commerce platforms and D2C channels.
“Let’s Try has strong brand alignment with current consumer needs and has demonstrated strong business performance. Its strong presence in both online and offline channels, combined with in-house manufacturing capabilities, positions Let’s Try to scale and compete with established brands rapidly,” said Tuck Lye Koh, founding partner of SWC Global.
In just three years, the company has seen exponential growth—scaling revenue from INR 1 crore to INR 120 crore in ARR—and has set an ambitious target of crossing INR 1,000 crore in revenue by 2028. The brand is operating in a market estimated at INR 50,000 crore, growing annually at 12%, indicating massive untapped potential.
Rajesh Mane, Partner at 100Unicorns, added, “The team at Let’s Try has cracked the code for delivering great taste without compromising quality or health. Their growth trajectory, operational depth, and brand resonance among modern Indian consumers make them stand out in FMCG.”
According to Hotmail co-founder Sabeer Bhatia, if India wants to compete with China, it needs to reconsider how it gauges economic development and get ready for significant adjustments in workplace culture. Bhatia questioned India’s existing GDP calculation method in a recent podcast. He advocated for a new model that takes productivity and effort into account rather than just financial transactions. Bhatia attacked the way India calculates GDP. He claimed that it overstates economic output by emphasising financial transactions rather than real labour. According to him, India’s GDP is completely incorrect. And it only takes two seconds to look at how GDP is calculated. He added, “If I give you INR 1,000, 18% GST is taxed on it. If you return INR 1,000 to me, 18% of that amount is considered INR 2,000 in GDP. You haven’t worked at all. I haven’t worked. I just handed you some cash. Giving money is not a job. Good work is work.”
Comparing the Tax Calculation with the USA
He likened it to the way GDP is determined in nations such as the US, where economic output is correlated with the value of labour and the number of hours worked. Everyone has an hourly rate, he explained. Everyone calculates how many hours a person works, reports that information to the government, and pays a specific amount of taxes, which determines the GDP of the nation. Bhatia says that by implementing a work system that values human effort, India can address this issue. He said that the first step in fixing this in India would be to ensure that everyone is paid on an hourly basis. How many hours do they really spend working on their projects? In order to track work according to effort, he proposed setting fixed hourly wages for all employment categories, including physical labour, law, and medicine.
How India can Compete with China?
Bhatia opined that if India wishes to catch up to China’s advancements, it must address its deficiencies in technical skills and work ethic. India needs to change its work ethic, he said. Anyone who is willing to work in China is still valued, and engineers continue to work as engineers after graduation. He condemned the trend in India for engineering graduates to enter management positions rather than engage in construction or creation. After graduating as engineers, 99% of Indians go into management and begin offering gyaan to everyone. Where is the work ethic where they actually go out and construct things and work with their hands? He also drew attention to the value structure in society that prioritises outsourcing over in-house software development. He continued by saying that although he is the software master of India and the business guru of dealing in, you know, body shopping—not software—people in India admire anyone who works with their hands.
Lei Jun was born on December 16, 1969. He is an investor and philanthropist in addition to his business credentials. He established the company that would become one of the top tech firms around, specializing in smartphones, smart hardware, and innovative AIoT solutions, all for what, to most people, becomes like “the Steve Jobs of China.”
Under his tenure, he took this startup back in 2010 to become one of the most renowned smartphone-making companies in the world and robustly set up an ecosystem for interconnected smart devices. Moving beyond that, Lei Jun was a firm technology innovation promoter and one of the more influential players within the startup circles of China. Today, MI by Xiaomi is a household name that spans mobile phones, televisions, earphones, laptops, bags, trimmers, and whatnot!
Let’s look at the biography of the Founder, Chairman, and CEO of Xiaomi, Lei Jun. We will discuss his early life, personal life, education, philanthropy, awards, and more.
Lei Jun Biography
Name
Lei Jun
Born
16 December, 1969
Nationality
Chinese
Age
55 (2024)
Residence
China
Education
Wuhan University, BEng
Profession
Founder, Chairman & CEO of Xiaomi Chairman of Kingsoft Chairman of UCWeb Inc. Chairman of YY.com Chairman of Shunwei Capital
Life was never easy for Lei Jun. A true entrepreneur that he is, Lei never catered in front of obstacles and pulled off stuff people would consider daunting. He was born in the city of Xiantao, China. Most of his childhood was plagued with rough phases, growing up near the industrial city of Wuhan.
Lei Jun was born on 16th December, 1969, in the underdeveloped area of Hubei, Xiantao. Both his parents were teachers, which was considered a disgraced profession after the Cultural Revolution. From his childhood, Lei Jun showed an interest in electronics and made his first electric lamp using only two batteries, a self-made wooden box, a bulb, and some wires.
He later graduated from Mianyang Middle School in 1987 and graduated from Wuhan University in 1991 with a Bachelor of Science in Computer Engineering. Even while excelling in school, he set up his first company, Gundugoms, in the last year of college. After graduation, he had only one aim—serving the world through his learning.
Lei Jun, the billionaire founder of Xiaomi, started with a simple life in Hubei, China. In 2010, he founded Xiaomi and turned it into a top tech company. A viral video online shows how he went from promoting products on the street to becoming a tech superstar worth $44.6 billion. His journey is a powerful example of hard work, ambition, and innovation.
Lei Jun was born to a family of teachers, but sadly, due to the Cultural Revolution, they always faced hard times. His father only received a salary of $7 a month but always pushed him to study more.
He is currently married to Zhang Tong, and they have two children together.
Lei Jun started his career as an engineer in 1992 at Kingsoft. In 1998, he became the brand CEO, and it went public on the Hong Kong Stock Exchange in 2007. Unfortunately, on 20th December of the same year, he resigned from the company citing ‘health reasons’.
He later founded an online bookstore named Joyo.com, selling it to Amazon at $75 million in the year 2000. A few years later, in 2005, he ventured over $1 million into YY; by the time the company came public in 2012, his investment was worth $129 million.
Later in 2008, he became the Chairman of UCWeb, but his greatest accomplishment came in 2010 when he founded Xiaomi along with multiple partners. Lei Jun received hefty funding from the Hong Kong billionaire Chan. Chan controlled Hang Lung Properties, which backed Morningside Ventures and was a regular investor in Lei’s company for many years. Apart from Chan, Lei also received funds from Qiming Ceyuan and IDG Capital Partners. Xiaomi, through its eight co-founders, was launched on 6th April 2010. After an aggressive phase of hard work, Xiaomi launched its first Android-based firmware named ‘MIUI’. In 2011, the company launched its first smartphone, Xiaomi Mi1, which was followed by Mi2.
With Xiaomi’s entry into the mobile device market, Chinese smartphone buyers now had affordable options. With the right timing and resourceful online marketing opportunities, the company ascended at amazing speed. Within a period of less than five years, Xiaomi stood out as one of the significant smartphone providers in China and also the third largest world manufacturer after Apple and Samsung.
In late 2011, he founded Shunwei Capital, together with others, an investment firm that invests in some sectors such as social networks, eCommerce, and mobile developments. In the same year, he again rejoined the Kingsoft brand as their Chairman.
Mi1 was well received, and that meant the next version of the smartphone came with more sophisticated features. With the help of Mobicity, the company went on to capture the technology market in countries like the United Kingdom, Australia, and many more. In 2013, the company launched its Smart TV line.
Xiaomi New Logo
Lie Jun: A Heavyweight Entrepreneur
Xiaomi CEO Lei Jun is one of those select individuals who have revolutionized the smartphone industry. Within three years, it became the 4th largest company in China and has successfully dominated the software industry. Lei is one of the best businesspeople today. In 1999, 2000, and 2002, he was a member of the Top IT figures, and China Central Television named him as one of the top Business Leaders of 2012. Lei is widely known as “Steve Jobs” in China for his contribution to the development of smartphones. His entrepreneurial undertaking reaped benefits for China. Xiaomi supports the livelihood of many and has enabled the middle-class section of society to own a smartphone.
“Entrepreneurship is overrated, The secret for success is HARDWORK” -said Xiaomi founder Lei Jun
Lei Jun: Philanthropy
Since 1997, Lei Jun, the owner of Xiaomi company, has been donating to his alma mater, Wuhan University, starting with a simple donation of Yen140,000. But in 2017, he donated over $1 billion to charity. He has also donated to the following:
Zhuhai Charity, an organization that provides funds for migrants,
Village of Yangchun to renovate schools, build mudbrick houses, and construct cultural buildings
To the victims of the 2013 Lushan earthquake
Part of Ice Bucket Challenge that aimed to raise money for Amyotrophic lateral sclerosis.
In 2021, he gave away Xiaomi shares valued at $2.2 billion.
On their 130th anniversary in 2023, he donated over 1.3 billion Yuan to Wuhan University.
Some awards and recognitions that Lei Jun has won over the years are:
Businessman of the Year (2014): Forbes Asia awarded him due to his outstanding performance that has catapulted Xiaomi into international stardom.
Top 10 Economic People of the Year (2014): He was among China’s top economic leaders said to influence the country as identified by CCTV.
List of 50 Greatest Leaders (2015), Fortune: Ranked 11 on the Fortune magazine annual list with respect to leadership at Xiaomi and innovative business approach.
Chinese Economic Person of the Year (2017): China Central Television (CCTV), in appreciation of his efforts for the Chinese economy to develop.
Global 100 Top Innovators 2017: Thomson Reuters has identified it as an innovation stimulant in the revolutionary tech ecosystem of Xiaomi.
Fortune Global 500 Leadership Award, 2019: During his leadership, Xiaomi was listed on the Fortune Global 500. This company is among the youngest that has been included in the Fortune Global 500.
Asia Game Changer Awards (2019): Asia Society recognized the transformative impact of this person globally in the tech industry.
Top 10 Influential Entrepreneurs in China 2020: Awarded by Hurun Report for being most influential in the tech industry and for his support of entrepreneurship in China.
Outstanding Entrepreneur Award 2020 National: For his innovative role in driving innovation and industry growth- by All-China Federation of Industry and Commerce.
China Philanthropy Awards 2021: Highly recognized for his critical philanthropic efforts, significantly in education and disaster recovery.
Entrepreneur of the Year Award 2022: Ernst & Young China honored him for his leadership and business achievements.
Among Top 50 Influential Business Leaders in China (2023): Featured in Forbes China, as his contributions have been lasting in the field of technology.
Lei Jun: Facts
Elected as a delegate of the National People’s Congress in 2013
Included in the list of International Sponsors of War maintained by the National Agency on Corruption Prevention in 2023
In 1991, Lei Jun graduated from Wuhan University with a degree in Computer Science. He graduated in just two years, two years ahead of the regular four years.
Before the formation of Xiaomi, Lei Jun was CEO of Kingsoft, a Chinese software firm. He has made huge contributions to the growth of the firm. In 2007, he took Kingsoft to its IPO, which defined his career.
Lei Jun has invested in more than 20 startups, including UCWeb and YY Inc., two companies that have become successful. His investments reflect his eye for potential in the tech world.
Lei Jun adopted a business model for Xiaomi that was quite different from the others. He was inspired by Amazon’s low-margin, high-volume approach and combined it with a direct-to-consumer sales strategy, allowing Xiaomi to deliver premium products at competitive prices.
Lei Jun is also an active philanthropist. He has donated millions to educational institutions, including his alma mater Wuhan University, to foster innovation and development.
Xiaomi CEO, Lei Jun is one of the most influential figures in technology. He was honored as “Businessman of the Year” by Forbes Asia in 2014 and is still being considered for the same contributions the industry has made.
With much on his plate, as is said, Lei Jun believes and is a book-worm who is particularly intrigued by biographies of entrepreneurial genius, which he holds responsible for inspiring and paving the way for himself into an entrepreneurial journey.
Under him, Xiaomi became the youngest company to mark itself on the Fortune Global 500 list in 2019 and that was just about nine years after its setup.
FAQs
Who is Lie Jun?
Lie Jun is Xiaomi owner and founder. He started Xiaomi in 2010 and serves as its CEO.
What is Xiaomi founder Net Worth?
The net worth of Xiaomi owner Lei Jun is $27.8 billion as of December 2024.
Who is the CEO of Xiaomi or the Owner of MI?
Lei Jun is the CEO and Co-founder of Xiaomi Inc.
What is Lei Jun education?
He graduated from Wuhan University in 1991 with a Bachelor’s degree in computer science.
Who is Lie Jun wife?
Lie Jun is married to Zhang Tong.
When was Lei Jun born?
Lei Jun was born on 16th December 1969.
What is Xiaomi net worth?
Xiaomi market cap as of April 2025 is $117.68 billion.
Where is Xiaomi Made?
The Xiaomi products are mainly assembled in China. Recently it has developed assembly centers in India as well, as India serves as the World’s second-largest Smartphone market for Xiaomi. It also has quite a presence in the South Asian Smartphone Market.
Is Xiaomi banned in US?
Though US hasn’t outrightly banned Xiaomi. The company is preparing plans to sustain itself, In case of any possible bans in the mere future by the American Government.
Is Poco a Chinese Company?
POCO is a sub-smartphone brand created by Xiaomi in 2018. Xiaomi recently spun off POCO as an independent company based out of China.
Is the Xiaomi company banned by google?
Google removed Xiaomi’s integration with Google Home and Nest products temporarily. Right after a user reported a security Issue. However Xiaomi is getting itself prepared to face the uncertain future with regards to the ban from Google.
Are Xiaomi and MI the same?
They both are same company, but the products are launched with different names in the Indian market. Xiaomi is a Chinese company. Xiaomi, Redmi, MI are the same brands.
What is Xiaomi owner net worth?
The net worth of Xiaomi owner and founder, Lei Jun, is $29.9 billion as of April 2025.
Who is in Lei Jun family?
Lei Jun was born to a family of teachers, but sadly due to the Cultural Revolution, they always faced hard times. His father only received a salary of $7 a month but always pushed him to study more. He is currently married to Zhang Tong and they have two children together.
Indian equities saw a solid recovery on Tuesday, thanks to positive global signals and broad-based buying across most sectors. The BSE Sensex jumped by 1,089 points to end at 74,227.08, while the Nifty 50 shot up 374 points to close at 22,535.85. All major sectors saw gains, with banking, autos, IT, and FMCG leading the charge, renewed confidence in the Indian equity markets.
Nifty found a crucial support level near 21,800. This triggered a bullish candlestick formation on the charts. Now, a potential move toward the 22,950-23,000 range is on the radar, provided current momentum continues. The India VIX remains above 20, suggesting elevated volatility, especially with the policy meet of the Reserve Bank of India around the corner.
GMR Airports: Technical Breakout with Strong Momentum
The uptrend of GMR Airports is looking promising as it has recently broken through swing highs. This stock shows significant investor interest; it currently trades well above its 20, 50, 100, and 200-day moving averages, and it has recently emerged from a consolidation pattern. Buying this stock at its current price of 85.4 INR (around $1.10) and placing a stop loss at 83.6 INR (about $1.08) seems to be a reasonable trade.
UNO Minda: Reversal Pattern Signals Upside
UNO Minda seems to be reversing its recent downtrend. It has rebounded from a level of 767 and is currently moving up. The current price structure signals a shift from bearish to bullish. The stock is now targeting a previous lower top, which is just under 905. What should you do if you own this stock? Analysts suggest buying at 836, adding more near 820, and selling if the stock closes below 805.
Indus Towers & Credit Access Grameen: Chart Patterns Support Buys
Indus Towers has broken out of a rounding bottom formation on the daily charts, accompanied by bullish candlesticks and strong volume activity. The stock trades well above all the key moving averages, with an RSI (Relative Strength Index) value of 65.44. It is a buy at the current market price of 370, targeting 386, with a stop loss at 363.
Grameen Bank Access to Credit positions itself near the upper edge of a triangle formation on the formation of the weekly chart. It shows a positive bias, with the momentum indicators positioned near a bottom reversal suggesting this stock has potential to break upward. Buy at 997, add to that position on dips to 985, set a target of 1080, and a stop loss at 960.
A spat has broken out between Tesla CEO Elon Musk and Donald Trump’s trade adviser, Peter Navarro, after Navarro questioned the company’s actual American manufacturing role. In a recent interview discussing the administration’s sweeping tariff policy, Navarro downplayed Tesla’s operations, calling the firm more of an assembler than a true manufacturer.
Musk, who was associated with the Trump administration through his position at the Department of Government Efficiency, utilized his social media outlet X to challenge the assertions made by Navarro. “Navarro is truly a moron. What he says here is demonstrably false… Tesla has the most American-made cars. Navarro is dumber than a sack of bricks,” Musk posted on X. Using information from Kelley Blue Book and Cars.com, he contended that not only does Tesla lead the auto industry in parts sourced from within the U.S., it is also by far the most “vertically integrated” car company in the country.
Tesla’s Position on Trade Policy
For a long time, skepticism has been Musk’s attitude toward trade barriers. He had even before this current exchange posted videos that promoted free-market economist Milton Friedman, suggesting a few at least in Trump’s inner circle might have a philosophical opposition to tariffs. Musk’s public rebuke of Navarro marks a rare and open disagreement within Trump’s inner circle.
Tesla’s operations are not as exposed as other automakers to tariffs, but Musk acknowledges that current trade disruptions could still hit supply chains hard. In a recent post, he pointed out that Tesla, despite its considerable U.S. footprint, was not impervious to the global economic winds that aggressive trade policy can whip up.
Industry Voices Join the Chorus
Musk isn’t the only one ripping the administration’s approach. Top fund manager Bill Ackman has come out against the new tariffs, warning about the unnecessary economic harm they’re likely to do. Meanwhile, Yale professor Jeffrey Sonnenfeld has noted that a lot of business leaders share Musk’s criticisms. Sonnenfeld recently conducted an executive survey in which a vast majority of respondents admitted to feeling embarrassed by U.S. trade policy. Not surprisingly, these same execs feared the economic fallout.
Technology analyst Dan Ives said that though Tesla is strong in domestic content, it still depends a lot on international suppliers. These come especially from China but also from other parts of the world. That makes the company very susceptible to U.S.’s trade tensions with China. Ives is worried that if new tariffs come into play, they might unravel Tesla’s global advantage over its fast-rising competitors, which include BYD.
Broader Implications for U.S. Manufacturing
Navarro’s insistence that America is only putting together foreign components drives home the point that the administration is hellbent on reshoring production. His insistence aligns well with the broader Trump’s agenda of obsessively reviving domestic manufacturing through tariffs.
Critics contend that this risk of causing a recession makes the new approach ill-advised. By raising prices with tariffs, companies across sectors may be squeezed by increased costs and pass them along to consumers and businesses, which could in turn cause the economy to slow down. As the Musk-Navarro spat plays out in public, it really does highlight a significant and growing divide between the innovative processes of places like Silicon Valley and the protectionist policies that seem to be coming out of Washington.
A strong message has been sent by India regarding foreign investment, specifically when it comes to allowing investment from certain countries. BYD, the largest electric vehicle maker in China, has recently been denied permission to set up a large manufacturing base in India. Although the precise reasons for this denial have not been articulated, they seem to stem from a desire to prevent investment from countries that are considered strategic rivals.
This action corresponds with India’s previous dismissal of BYD’s $1 billion offer with Megha Engineering, a collaboration that failed to materialize, particularly after Megha’s connection to the electoral bonds scandal came to light. In a comparable fashion, Great Wall Motor, another Chinese carmaker, deserted India after it encountered constant regulatory problems.
Deepening Concerns Over Chinese Firms
India is still suspicious of investments by Chinese corporations due to their dubious corporate structures and potential ties to the Chinese government and military. Officials point out that practices normal for a market economy, like state subsidies and favorable loans, distort competition and make Chinese investments seem attractive when they aren’t. Geopolitical tensions have eased a little since the summer of 2020, but at the moment, the Indian government is still using Press Note 3 as a way of keeping potentially harmful investments at bay.
Speculation exists that Chinese companies, unhappy with recently imposed restrictions, are now trying to solve that problem by offering a lesser stake in joint ventures to Indian companies. But what does the Indian government think about all this? It seems not too happy itself about Chinese investment and is thus in no hurry to ease the enhanced restrictions, especially in the extremely sensitive area of electric mobility.
India Rolls Out the Red Carpet for Tesla
India seems to be working hard to woo Tesla. Unlike Europe, which has dragged its feet in delivering the promised permits to install production facilities, India has, according to Tesla’s CEO, provided the go ahead to set up a factory in India. In the interim, the company is employing a strategy that involves contract manufacturing and using the existing automotive production infrastructure within India to make its vehicles. The company is also busy setting up Tesla stores within the major metropolitan areas from which it intends to draw demand.
A Tightrope Between Protection and Progress
The costs of land and labor in India are significantly less expensive than in the U.S. or Germany. Setting up a facility in India that costs only USD 2–3 billion is an attractive proposition, less than half the price of either the Berlin or Texas gigafactories.
Though India aims to be a global electric vehicle (EV) hub, the country imposes very high import duties that act as a barrier. They are among the steepest worldwide, in fact. These tariffs are why Tesla has hesitated to set up shop in India, even as it has tried to establish manufacturing plants in other parts of the world.
India’s hesitance to allow BYD to operate freely is as much about protecting domestic interests as it is about geopolitical caution. Here, we are talking about a company that already produces over 1,200,000 electric vehicles a year. These are affordable, yet efficient vehicles. BYD poses a greater competitive threat to Indian automakers than does Tesla, which sells its cars at a much higher price point. Allowing BYD to operate in India could dramatically change the electric vehicle landscape in India’s favor, if India’s own EV automakers were allowed to operate in a fair competitive environment.
Following a sell-off that occurred on Monday as a result of fears concerning an escalating trade war, the Indian markets regained their footing on Tuesday. The BSE Sensex shot up more than 1,000 points to settle at 74,227.08, while the NSE Nifty took a leap of 374.25 points to close at 22,535.85. Both these benchmarks recovered 2% as part of a much broader Asian rally, during which the hope prevailed that the U.S. might ease up on its aggressive new tariff program.
U.S. President Donald Trump set the stage when he stated that Japan would be sending a group to negotiate, which, in my opinion, showed that the U.S. would be sending some signals that it might be flexible in its trade position. At any rate, markets liked what they heard. Consequently, the Nikkei was up 6%, which is a nice day for the Japanese stock market. The recovery in the stock market is also apparent in the Indian stock market.
Oversold Markets and Sectoral Resilience
Domestic experts believe that the rebound on Tuesday was expected. The markets had been oversold. Tuesday provided an opportunity for investors to accumulate quality stocks at lower levels, especially in sectors that are less impacted by trade tensions.
As per Yogesh Kansal, cofounder of Appreciate, the recovery has been spearheaded by firms that are virtually unaffected by tariffs, particularly in the tech and finance sectors. IT stalwarts Infosys, HCL Tech, Tech Mahindra, L&T notched up at least 3% gains. Banking and finance not only took back all the previous week’s losses but also recorded fresh gains, which helped stabilize the broader indices. Titan was a standout performer in this rally, surging nearly 5% after reporting a whopping 25% increase in standalone revenue for the March quarter, thanks to strong gold sales.
The Trigger: Trump’s Tariff Push and Market Response
The worldwide market volatility was triggered by Trump’s statement about his sweeping tariffs. These include a minimum 10% rate on all U.S. imports and possible 50% duties on Chinese goods. He said that his measures are meant to help restore America’s industrial base. He claimed no other president would attempt such a radical reset of trade policy.
U.S. indices were briefly buoyed by rumors that there could be a 90-day pause in the enforcement of tariffs. This temporary lift, buoyed by the rumor, was enough to slow the freefall and preserve some cautious optimism in global markets.
Investors Eye Talks, But Caution Lingers
Even though we have seen a recovery, there is still uncertainty. President Trump takes a very hard line on trade. His inclination is toward protectionism. And that directly impacts his thinking when it comes to China. The trading relationship with China, in turn, affects a whole host of companies that are involved in manufacturing or trading with China.
The rally in Indian markets at home is a testament to investor resilience, especially in sectors that are insulated from global policy shocks. The all-time highs being witnessed by Indian equity indices seem to have a solid base, with a lot of domestic participation in the markets from retail and institutional investors, going by the pace of the move and the kind of stocks that are moving with it.
Following its sharpest drop in ten months, the Indian stock market displayed an impressive recovery on Tuesday. It was driven by renewed global optimism and a rush by investors to buy at bargain prices. The BSE Sensex jumped 1,089.18 points, or 1.49%, to close at 74,227.08. The Nifty 50 advanced too, climbing 374.25 points, or 1.69%, to finish the day at 22,535.85. This surge was not limited to India; global equity markets joined the rally. Both U.S. and European indices staged a strong comeback after the previous day’s decline. News of easing trade tensions seems to have helped. Investors are also happy with China’s recent move to devalue its currency.
RBI Policy and Technical Outlook
Investors are keeping a close watch on the Reserve Bank of India’s policy decision, which is due this Wednesday. Market expectations are concentrated on a rate cut of 25 basis points, which could give investor sentiments a nice little boost if it comes to pass. Technical indicators also seem pretty optimistic. According to analysts, the Nifty found a strong base around 21,800 after dipping below its 20-day EMA. It then moved back above this technical indicator and created what is being called a nice little bullish candlestick pattern. A journey toward the 22,950–23,000 level is being anticipated; and if it can get above 23,200, we could see this it shift back into a nice bullish little move.
Stock Movers and Turnover Leaders
In terms of trading, several larger-cap names took the spotlight in the turnover charts. Leading them was HDFC Bank, with trades running worth INR 3,146 crore. Next came some of the other big heavyweights, like Reliance Industries, Infosys, TCS, ICICI Bank, and Trent. If one looked at volume, though, Vodafone Idea was the standout, with over 62 crore shares exchanged. YES Bank, Tata Steel, and Zomato also had fairly large volumes compared to their averages.
On the buying side of things, there appeared to be some renewed interest in some previously hard-hit counter stocks. Zee Entertainment, Vijaya Diagnostic, Kaynes Technology, and Newgen Software all saw fairly good buying. These counters, which are genuinely uncertain in terms of long-term growth prospects, could see some continued attention in the sessions to come.
Sentiment Overview and Sector Snapshot
The vibe of the market was overwhelmingly positive. Of the 4,083 stocks listed on the BSE and traded on Tuesday, 3,093 advanced while a mere 871 declined. The bullish sentiment appeared sector-wide, with defense, tech, and energy shares leading the way globally. European stocks rebounded sharply from 14-month lows, showing that policy responses to the U.S. tariff situation were helping offset the impact.
Not all stocks rode the updraft, however. Siemens, Jindal Saw, Wockhardt, and a few other counters saw notable selling pressure. It’s hard to pick a fault with the overall tone of the market as it awaits signals from central banks and further trade developments.
Sakshi Jadhav
