Handpicked updates about India’s business and the business of India
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.
Markets 🔔🐂🐻
As of the Indian market closed on Dec 5
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%).
Tech and Geopolitics
Putin in Delhi: India–Russia Summit Opens
Image credit: BBC
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.
Tech and Crisis
IndiGo Flight Cancellations Surge
Image credit: Hindustan Times
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.
Business India: Dhanda Hai Yeh!
Image Credit: Master Investor
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.
World 🌏
Nvidia's Valuation Sparks Debate
Image Credit: Tech Cabal
AI Mania vs. Math: Nvidia, a leading chipmaker, has seen its valuation soar past $5 trillion, sparking debate among investors and analysts. While some believe no business model can sustain such a figure, others argue that the potential of artificial intelligence (AI) is limitless. Nvidia's rapid growth mirrors past tech booms, such as Microsoft's surge in the late 1990s.
Revenue Break-Even: Aswath Damodaran, a renowned valuation expert, delved into Nvidia's valuation, which he owns since 2018. He reverse-engineered the financials required for Nvidia to justify its market cap, calculating that with its 53% net margin and an 8% cost of equity, Nvidia would need about $483 billion in annual revenue if it were a mature company. Considering Nvidia's high-growth phase, the breakeven could rise to $678 billion.
The AI Hype Curve: Nvidia's valuation is part of a broader trend where AI companies achieve astronomical valuations despite limited revenues. OpenAI, for instance, was valued at $500 billion on $13 billion revenue, while Anthropic fetched $350 billion on $7 billion sales. The collective valuation of large language model (LLM) companies is pegged at $1.5 trillion, despite combined revenues below $100 billion. Damodaran warns that while a few firms may justify these valuations, it is improbable for all to succeed at the projected scale, highlighting the "Big Market Delusion" prevalent in AI.
What's Next: Damodaran advises caution, noting that as valuations rise, governance risks grow, particularly when founders have significant control. He cites Meta's metaverse investments as an example of potential overreach. In AI, figures like Sam Altman and Elon Musk wield considerable autonomy, resembling "emperors more than CEOs." Investors should base their decisions on data rather than narratives and remain flexible to adjust beliefs as new evidence emerges.
DuniyaDIARY 🌏📒
Image Credit: CNN
UK Inquiry Blames Putin for Nerve Agent Attack: A UK public inquiry found Russian President Vladimir Putin authorized the 2018 Novichok nerve agent attack on Sergei Skripal in Salisbury, leading to the death of Dawn Sturgess. The report highlights Russia's "reckless" disregard for innocent lives and accuses the GRU of carrying out the attack. Russia denies involvement, calling the accusations propaganda.
US Military Strike in Pacific: On Thursday, the US military killed four people in a strike on a suspected drug-trafficking vessel in the eastern Pacific, part of a counter-narcotics campaign under scrutiny. The operation, ordered by Defence Secretary Pete Hegseth, targeted a boat linked to a "designated terrorist organization." This incident highlights global tensions over U.S. drug enforcement efforts, which some critics say are used to exert political influence in regions like Venezuela.
Eurovision Boycott: Ireland, Spain, the Netherlands, and Slovenia will boycott the 2026 Eurovision Song Contest after Israel was allowed to compete despite calls for exclusion over the Gaza conflict and voting concerns. The European Broadcasting Union decided against a vote on Israel’s participation, stating the contest should remain neutral.
Peace Deal Signed Amid Tensions: The Democratic Republic of Congo and Rwanda signed a peace deal in Washington, hosted by US President Donald Trump, aiming to end long-standing conflict. However, analysts doubt its impact as fighting continues, with renewed clashes reported in DR Congo. The US highlights potential economic benefits from peace, given DR Congo's vast mineral resources. Both countries accuse each other of violating terms, raising questions about the deal's effectiveness.
Strategic Route Offer: Pakistan has proposed to Kyrgyzstan the shortest route to the Arabian Sea, with Presidents Zardari and Zhaparov meeting in Islamabad. This development could enhance trade and connectivity in the region, impacting global commerce routes. The leaders also discussed expanding direct flights and strengthening economic ties. They emphasized the need for increased trade and cooperation in multiple sectors.
Aur Batao 📰
Putin Visits India, Aims to Bolster Ties: Russian President Vladimir Putin is in India for the 23rd India–Russia Annual Summit, marking his first visit since the Ukraine conflict began. On Friday, he will meet Prime Minister Narendra Modi and attend discussions on defense deals, civil nuclear cooperation, and the Ukraine war. Up to 10 intergovernmental documents and over 15 agreements are expected to be signed. Putin will also address the India–Russia Business Forum before departing for Moscow.
Soyab's Custody Extended in Terror Probe: A Delhi court has extended the National Investigation Agency's custody of Soyab by 10 days. Soyab, from Haryana's Faridabad, is accused of providing logistical support to a terrorist linked to a Delhi bomb blast. The court proceedings were held amid tight security, with media barred from coverage.
Australia Leads England by 44 Runs in 2nd Ashes Test: On Day 2 of the second Ashes Test in Brisbane, Australia took a 44-run lead over England. Jake Weatherald, Marnus Labuschagne, and Steve Smith led the charge with half-centuries, as Australia closed at 378/6. England's Brydon Carse and Ben Stokes claimed five wickets between them.