The episode covers steady Indian stock markets despite the rupee hitting a record low, driven by global bond yields and elevated energy prices. Key discussions include oil marketing company losses, the launch of private credit funds in India, and the surprising use of Ajinomoto's byproducts in AI chip manufacturing.
Summarized by Podsumo
The rupee fell to a record low of 96.38 per dollar, while the Sensex and Nifty remained largely flat.
Oil marketing companies are incurring losses of about 500 crore per day due to elevated crude prices, with diesel losses at 7.5 rupees per litre and petrol at 3.2 rupees per litre.
Private credit funds are being launched, with ASK Alternatives' second fund targeting 14–16% gross IRR, focusing on construction, healthcare, and manufacturing sectors.
Global bond yields rose due to oil price inflation fears, with US 10-year yields hitting 4.63% and Japanese yields at record highs.
Ajinomoto’s ABF film, made from MSG byproducts, controls over 95% of the market for insulating AI processors, boosting its stock by 65%.
"The same companies who would have ordinarily gone to the equity market and raised money essentially come to [private credit].” — Shantanu Sahay, ASK Alternatives"
"In order to achieve some kind of parity between what they are spending buying the crude versus what they are getting for selling the refined product... the OMCs would have to look at the prices."
" — Prasanth Vashish, IKRA Limited"