Dec 06: India–Russia Summit Opens, Indigo Brews Chaos

A bride and groom dressed to impress, only for IndiGo to ghost their flights. A Hubballi couple's reception turned into a digital affair on December 3, 2025 when Medha and Sangam, caught 1,400 km away in Bhubaneswar, joined their own wedding reception via video call. The bride’s parents became the stunt actors on the chairs while the original couple were broadcast on a large screen. Truly a Digital India.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 7 mins.

The Indian equity benchmarks settled higher after the RBI’s Monetary Policy Committee cut the repo rate by 25 basis points to 5.25%. The decision boosted the market, with the Sensex closing 447 points higher (up 0.5%), and the Nifty rising 152 points (up 0.5%).

The Core Issue: Russian President Vladimir Putin is in India for the 23rd India-Russia Annual Summit, marking his first visit since December 2021. Prime Minister Narendra Modi, breaking protocol, welcomed him personally at Palam airport, with the two sharing a private dinner at Modi's residence. The summit, taking place in New Delhi, is set to focus on trade, defense, and energy cooperation. The visit is significant as it happens against the backdrop of the ongoing Ukraine conflict, which began in February 2022, and Donald Trump's recent return to the White House.

The Agenda: The summit agenda includes several key topics. Discussions will likely cover the sale of additional Russian S-400 missile systems and the potential acquisition of Su-57 stealth fighters by India. The talks will also explore civil nuclear cooperation, trade agreements, and cultural exchanges between the two nations. Moreover, the Ukraine war is expected to be a major point of discussion, given its ongoing impact on global geopolitics.

The Numbers: During Putin's visit, up to 10 intergovernmental documents and more than 15 agreements and memorandums between commercial and non-commercial entities are anticipated to be signed. These agreements aim to strengthen bilateral ties across various sectors, including economic and academic collaboration. The summit will feature a meeting at Hyderabad House and Putin's participation in the India-Russia Business Forum. Additionally, Putin is expected to attend the launch of RT TV's India operations, further highlighting the broadening of media cooperation.

Looking Ahead: The outcomes of this summit could significantly influence India-Russia relations in the coming years. Strengthened defense ties would reinforce India's military position, while expanded trade and energy cooperation could boost economic growth for both countries. The handling of the Ukraine conflict in the talks might also impact international diplomatic efforts. As Putin concludes his visit with a dinner at Rashtrapati Bhavan before returning to Moscow, the agreements reached during these discussions will likely set the tone for future engagements between the two nations.

The Core Issue: IndiGo, India's largest airline, is facing a severe operational crisis, with its on-time performance plummeting to just 8.5% at six major metro airports. This disruption, marking the fourth consecutive day of chaos, saw IndiGo cancel over 400 flights on Friday, further aggravating the situation for passengers across the country. The airline suspended all flights departing from Chennai and Delhi, leaving travelers stranded and airports overwhelmed. This comes after IndiGo cancelled more than 550 flights just a day earlier, sparking widespread frustration and logistical challenges.

Compounding Issues: The ongoing crisis has prompted the Directorate General of Civil Aviation (DGCA) to intervene, demanding IndiGo provide a detailed plan addressing pilot hiring, training, and safety assessments. The regulator now requires IndiGo to submit progress reports every 15 days. IndiGo, which operates over 400 aircraft and more than 2,300 flights daily, has promised to restore normal operations by February 2026. The airline's operational issues are compounded by new Flight Duty Time Limitations (FDTL) rules, which have increased crew requirements and restricted night landings.

The Numbers: On Friday, IndiGo cancelled 118 flights in Mumbai, 100 in Bengaluru, 75 in Hyderabad, 35 in Kolkata, 26 in Chennai, and 11 in Goa, among others. The airline, which controls around 65% of India's domestic market, has 2,357 captains and 2,194 first officers available, but recent FDTL changes have pushed crew needs to 2,422 captains and 2,153 first officers in November. Meanwhile, IndiGo increased its domestic flights by 6% for the winter schedule, exacerbating the mismatch between flight capacity and available pilots, leading to mass cancellations and rising fares.

Looking Ahead: IndiGo's operational crisis is impacting not only its passengers but also other carriers as the disruptions ripple across India's air travel market. The DGCA's involvement aims to address these issues, but the road to recovery may be lengthy. Passengers face uncertainty and inconvenience, with long queues at airports and difficulty rebooking flights. As IndiGo works towards restoring stability, the DGCA's oversight and the airline's strategic adjustments will be crucial in mitigating further disruption and ensuring reliable service in the future.

British American Tobacco to Sell 7% Stake in ITC Hotels for ₹3,000 Crore: British American Tobacco (BAT) plans to sell a 7% stake in ITC Hotels, valued at ₹3,000 crore, as part of its strategy to exit non-core investments and reduce debt. The sale is priced at ₹205.7 per share, a 1% discount to Thursday's closing price on the NSE. BAT, which owns 15.3% of ITC Hotels, aims to streamline its portfolio, having already sold stakes in ITC earlier this year.

US Tariffs Slash Indian Exports By 28.5%: India's exports to the U.S., its largest foreign market, fell by 28.5% from $8.83 billion to $6.31 billion between May and October 2025 following hefty tariff hikes. Starting at 10% in April, the tariffs rose to 50% by August, significantly impacting Indian goods. Despite this, RBI Governor Sanjay Malhotra views the tariffs as a chance for export sector growth, citing minimal overall economic impact due to domestic demand.

Nifty500 Stocks Show Bullish Signal, Rising Over 1% Above VWAP: On December 4, five stocks from the Nifty500 index closed over 1% higher than their Volume Weighted Average Price (VWAP), according to stockedge.com. This shift above VWAP is often seen as a bullish indicator, suggesting positive market sentiment. When a stock's closing price exceeds its VWAP, it indicates stronger buying interest, which could attract more traders and investors looking for potential gains.

Ola's Stock Plummets 64% Amid Sector Gains: Ola's stock has plummeted 64% in the past year, marking the steepest fall among peers despite the Nifty Auto index rising 17% over the same period. The decline coincides with Ola's drop to fifth in market share and ongoing losses, with a September quarter net loss of Rs 418 crore. Institutional investments show mixed trends, with a decrease in FII holdings but an increase in mutual funds' stake.

HUL Spins Off Ice-Cream Business, Sets Listing Date: Hindustan Unilever Ltd (HUL) plans to demerge its ice-cream unit, Kwality Wall's, into a standalone business, with listing expected in February 2026. Shareholders will get one Kwality Wall's share per HUL share held by December 5. The move aims to unlock value, with Magnum Ice Cream acquiring 61.9% from Unilever Group.