- Indian stock markets dip as investors grow cautious before the US-India trade talks and earnings season.
- SEBI unveils Jane Street’s Rs 735 crore profit from alleged Bank Nifty manipulation.
- Foxconn posts record Q2 revenue driven by AI, but warns of geopolitical and currency risks.
Indian stock markets ended the week lower, with both the Sensex and Nifty declining by 0.7% as global uncertainties and looming trade decisions subdued investor sentiment.
In a parallel development, the Securities and Exchange Board of India (SEBI) exposed high-frequency trading firm Jane Street Group for allegedly manipulating the Bank Nifty index.
From Market Caution to AI Surge: Trade Fears, Jane Street Probe, and Foxconn’s Record Quarter
Foxconn, the world’s leading electronics contract manufacturer, reported its highest-ever Q2 revenue, fueled by strong demand for AI and cloud infrastructure products. The company’s earnings, driven by clients like Nvidia, surged 15.82% year-on-year to T$1.797 trillion, beating analyst estimates. However, Foxconn remains wary of escalating geopolitical tensions and exchange rate fluctuations that could disrupt growth in the coming quarters.
Domestically, investors took a defensive stance ahead of key macro triggers, including potential US tariffs and the Q1 earnings season. Domestic institutional investors (DIIs) continued to lend support, partially offsetting foreign investor outflows. Analysts noted the market is entering a consolidation phase, with technical indicators pointing to support around 25,150 on the Nifty and resistance near 25,740.
SEBI’s action against Jane Street underscores growing scrutiny of algorithmic trading practices in Indian markets. The case has reignited the debate on the need for tighter surveillance systems to detect sophisticated manipulation. Regulatory bodies are now expected to enhance oversight mechanisms for index derivatives and options trading, particularly by foreign institutional entities.
While markets remain range-bound, India’s macro fundamentals — including steady tax revenues, fiscal discipline, and policy continuity — offer medium-term resilience. Defence sector stocks outperformed, boosted by high-value procurement deals. As global markets navigate volatility, India’s relatively strong economic indicators may provide a cushion in the months ahead.
The week highlighted the complex interplay between global trade tensions, regulatory oversight, and tech-driven growth. As markets digest evolving risks, investor caution and policy vigilance will shape the near-term trajectory.
“In investing, what is comfortable is rarely profitable.” — Robert Arnott
