The market's mood this week has been a study in selectivity. Wall Street sold hard on Thursday even as oil eased, yields cooled and growth data stayed firm, because Alphabet's shares cratered after the company flagged a sharp step-up in AI capital expenditure. Nearly half a trillion dollars of value evaporated in a day. The message was not that investors have turned anti-AI; it was that they have become picky about who is allowed to burn cash to get there. Oracle, by contrast, rose for doing the opposite - capping external financing and pointing to positive cash flow later. Intel and Amazon told similar stories of solid underlying numbers undermined by heavy spending or cautious guidance. The AI trade is not dead. It is simply being priced more carefully.
That same choosiness is why India continues to look different. From June to now our total market capitalisation has been essentially flat while pure-play AI proxies elsewhere have been punished. We are not the funding source for the global reallocation, and that has mattered. Corporate India, meanwhile, has kept delivering. Deepak Nitrite more than doubled earnings before interest, taxes, depreciation, and amortisation and nearly tripled profit on a 62% revenue jump. Greenply, Milky Mist, KRN Heat and several others posted strong prints. Even in a difficult consumer backdrop, pockets of volume and margin expansion are visible. L&T beat on profit and revenue. The defence side saw the largest DAC approval of the year so far - Rs 2.1 lakh crore, with the bulk earmarked for domestic industry and a clear tilt toward unmanned systems and air defence. Order visibility for BEL, HAL and the broader ecosystem improves into the late years of the decade. These are not abstract themes; they are showing up in numbers.
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Did you know?
India's tiger population has more than doubled in two decades to nearly 3,700, enough for the country to begin exporting the animals to Cambodia, where they had gone extinct. It is a small but striking illustration of what sustained institutional effort can achieve. The same week brought evidence that hospitals using AI heavily in the United States have seen mortality rates fall sharply—roughly 40% lower than lower-AI peers over three years. In India the Supreme Court has been pressing the government on drug pricing, dismissing a 30% trade-margin cap on a limited list of cancer medicines as “hardly anything to be happy about” and floating the idea of a uniform 16% margin above price-to-retailer for non-patented medicines. Policy is still catching up to outcomes, but the direction of both technology and regulation is at least being debated in public.
Geopolitics kept the oil market honest
Brent held around $115 as Iranian and regional officials discussed conditions to end the conflict and Saudi defence figures met counterparts in Tehran. Trump mused about Venezuela becoming the 51st state and, in a characteristic flourish, said he was banning the terms “Artificial Intelligence” and “AI.” Israel's exit polls pointed to another deadlock. In Brazil, markets were still digesting Lula's re-election and the flight of Flávio Bolsonaro. Indonesia cut gas flows to Singapore, a reminder that even close neighbours can weaponise supply when domestic politics require it. None of this has broken the global economy yet, but it keeps a floor under energy prices and a premium on anything that reduces external vulnerability.
A few other markers
The UK now hosts more companies on the Fortune 500 Europe ranking than Germany. From nowhere in 2020, China became the world's largest auto exporter by 2023 and may this year ship roughly as many cars as the rest of the world combined. Binance froze more than $2.5 billion amid a reported major security incident, another reminder that crypto's plumbing remains fragile. SK Hynix reported a seven-fold profit surge and outlined large shareholder returns while warning that shortages of key AI components will persist through at least 2030. In India, the government is looking at simpler Press Note 2 compliance to ease investments from China and elsewhere, Jio shares were indicated higher in grey-market trading, and the GST clarification on brokerage paid from repatriable accounts by FPIs should modestly lower the cost of foreign participation.
None of this means the path is smooth. Entry-level two-wheeler demand faces drought risk. Valuation concerns remain real in pockets of consumer and retail. Global rates, oil and the midterm calendar in the United States will continue to set the tone for risk appetite. But the contrast with pure AI leverage elsewhere is becoming clearer: India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available, and its structural themes—manufacturing scale, defence localisation, digital infrastructure, formalisation—keep compounding underneath the noise.
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What are the Richie Rich doing?
The new status symbol is doing something no one has done before. Bloomberg met adventurers paying up to $2.4 million to dive previously undiscovered shipwrecks, ascend unclimbed peaks and attempt the first snowmobile crossing of Antarctica. Meanwhile, as Indian will celebrate late nights, golfers in Vietnam are flying thousands of miles to play championship courses carved into the sandy dunes along its 2,000-mile coastline, where expert caddies read the greens, advise on club selection and keep cold drinks at hand in the tropical heat. More than 50 new venues are in the works as Vietnam becomes one of the world's fastest-growing golf markets. Clearly, Private jets, superyachts, exclusive resorts and basic gold courses are no longer enough!
Markets will keep testing the difference between cash burn and cash generation, between geopolitical premium and actual supply disruption, between temporary earnings beats and multi-year order books. India's advantage right now is that a larger share of its story sits in the second category. The tiger numbers are a reminder that long cycles of institutional work can reverse outcomes that once looked permanent. The same patience is required of investors.
Have a super weekend,
Niraj
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