Day: August 28, 2025

Nvidia continues to dominate the AI landscape, reporting a 56% year-over-year revenue surge to $46.7 billion in its latest quarter. The company’s leadership in AI chipmaking has made it a cornerstone of the global tech ecosystem, even as it faces mounting geopolitical challenges.

Record-Breaking Performance

• Data center revenue reached $41.1 billion, up 56% from last year.
• Nvidia recently became the world’s first $4 trillion company, reflecting its central role in powering AI infrastructure.
• CEO Jensen Huang highlighted a projected $600 billion annual spend on AI by major tech firms, including Meta and OpenAI.

Geopolitical Headwinds

Despite its strong financials, Nvidia is navigating complex trade dynamics:

• The U.S. government imposed export restrictions on high-end AI chips to China, temporarily halting shipments of Nvidia’s H20 chips.
• After lobbying efforts, the ban was lifted, but shipments have not yet resumed.
• The U.S. now expects 15% of Nvidia’s revenue from licensed H20 sales.

China’s Strategic Shift

• China is encouraging domestic chipmakers to reduce reliance on Nvidia, potentially creating long-term competition.
• Nvidia’s current-quarter outlook excludes H20 sales, reflecting continued uncertainty.

Investor Sentiment

• Nvidia’s stock dipped 3% in after-hours trading, as investors weighed geopolitical risks against high growth expectations.
• Analysts caution that sustaining this pace may be difficult amid regulatory scrutiny and global competition.

Conclusion

Nvidia’s performance underscores the explosive growth of the AI sector. Its chips remain essential to generative AI, robotics, and data centers worldwide. But as geopolitical tensions rise, the company must balance innovation with diplomacy.

The AI race is accelerating—and Nvidia is still leading. But the path forward may be more complex than ever.

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In a strong and timely statement, Maruti Suzuki India Chairman R.C. Bhargava has called on the nation to stand firm and united in the face of the United States’ newly imposed 50% tariffs on Indian exports. Speaking at the company’s 44th Annual General Meeting, Bhargava described the move as a form of “economic bullying” and urged Indian industry and policymakers to respond with dignity and resolve.

A Call for National Unity

Bhargava emphasized that India must not give in to pressure tactics and should instead protect its economic sovereignty.

“It is our duty as Indians to do our very best to promote and maintain our dignity and respect and not give in to any kind of bullying in this matter… the nation has to stand united,” he said.

The tariffs, which came into effect on August 27, are expected to hit several labor-intensive sectors hard, including shrimp, apparel, diamonds, leather, footwear, and gems and jewellery. These industries not only contribute significantly to India’s export earnings but also support millions of jobs.

Global Uncertainty and Trade Disruption

Bhargava noted that the tariffs have triggered upheaval across global markets and forced countries to rethink traditional trade relationships.

“President Trump has in many ways forced nations to rethink conventional policies and relationships. Personal use of tariffs in diplomacy is being seen for the first time,” he told shareholders.

The remarks come amid growing concern that unilateral trade actions by the U.S. could destabilize emerging economies and disrupt supply chains.

GST Reform: A Ray of Hope

In addition to addressing the tariff issue, Bhargava welcomed the government’s proposal to restructure the Goods and Services Tax (GST). He expressed optimism that the GST on small cars could be reduced from 28% to 18%, making them more affordable for middle-class consumers and first-time buyers.

“We are all hopeful that the proposal which the Prime Minister made will result in the GST of small cars reducing to 18 per cent, but we have to wait till the official announcement is made,” he said.

The proposed two-tier GST structure—5% and 18%, with a special 40% rate for select items—is seen as a major reform that could stimulate demand and boost industrial activity.

Implications for the Auto Sector

Maruti Suzuki, India’s largest carmaker, has long been a champion of affordable mobility. Bhargava argued that lowering taxes on small cars would not only revive demand but also support job creation and economic growth.

He also highlighted the need for taxation parity between electric and hybrid vehicles, suggesting that all clean technologies should be incentivized equally to promote sustainability and reduce dependence on fossil fuels.

Conclusion

R.C. Bhargava’s remarks reflect a broader sentiment within Indian industry—that the country must respond strategically to external pressures while continuing to push for domestic reforms. As India navigates a complex global trade environment, unity and resilience will be key.

The message is clear: India must protect its economic dignity, support its industries, and stand up to unfair trade practices. And leaders like Bhargava are helping shape that narrative.

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The Indian stock market closed sharply lower on Thursday, wrapping up the August derivatives series with its second consecutive monthly decline. The benchmark indices—Nifty 50 and Sensex—were weighed down by global trade tensions, disappointing Q1 earnings, and expiry-day volatility.

Market Overview

• Nifty 50 ended at 24,500.90, down 211.15 points or 0.85%
• Sensex closed at 80,080.57, losing 705.97 points or 0.87%
• Investors saw a wipeout of nearly ₹3.9 lakh crore in market capitalization

This marks a steep fall from Nifty’s recent high of 25,153, with over 650 points lost in just five sessions.

Major Factors Behind the Decline

1. Tariff Shock from the US

The biggest trigger was the implementation of a 50% tariff on Indian exports by the United States, effective August 27. This sudden move hit investor sentiment hard, especially in export-driven sectors like IT, pharma, and manufacturing.

• All 15 NSE sectors ended in the red
• Nifty IT, Realty, and Defence were the worst performers
• Stocks like Infosys, HCL Tech, and Shriram Finance saw sharp declines

2. Weak Q1 Earnings

Quarterly results from major companies failed to meet expectations, adding to the bearish tone. Banking and financial services were particularly weak.

• HDFC Bank, ICICI Bank, and TCS were among the top drags
• Broader markets underperformed, with BSE Midcap down 1.09% and SmallCap down 0.96%

3. Expiry-Day Volatility

Thursday marked the monthly and weekly derivatives expiry, which typically brings heightened volatility. Traders squared off positions, adding to the downward pressure.

Sector Performance

Sector	Performance
Nifty IT	-2.1%
Nifty Realty	-1.8%
Nifty Financial Services	-1.5%
Nifty Auto	+0.6%
Nifty Pharma	-1.3%

Nifty Auto was the only sector to close in the green, supported by strong sales data and optimism around festive demand.

Top Movers

Decliners:

• Shriram Finance
• HCL Technologies
• Infosys

Gainers:

• Titan Company
• Adani Enterprises
• Hero MotoCorp

Technical View

Nifty is now trading below its 20-day, 50-day, and 100-day exponential moving averages, indicating short-term bearish momentum. Analysts suggest caution as the index struggles to hold key support levels.

Global Trade Tensions

The tariff decision by the Trump administration has created uncertainty across global markets. While some officials hint at future negotiations, others continue to escalate trade rhetoric. This lack of clarity is making investors nervous.

Ajay Bagga, a market expert, noted: “Tariffs happened, truce did not. Conflicting signals from the US administration are adding to policy chaos.”

What’s Next

All eyes are now on India’s Q2 GDP data, expected Friday. A positive surprise could help stabilize sentiment, but until there’s clarity on trade and policy direction, volatility is likely to persist.

Conclusion

The August series ended on a sour note for Indian equities. Tariff shocks, weak earnings, and expiry-day volatility combined to drag the markets lower. While some pockets like auto showed resilience, the broader trend remains cautious.

For traders and investors navigating this uncertain environment, expert guidance is more important than ever. Firms like Eqwires continue to offer valuable insights and strategies to help manage risk and seize opportunities.

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