June 10, 2026

 

TOP NEWS

 

War Update: IRGC in retaliation to the so called self defense strike from US have attacked the fifth fleet in Bahrain with Drones. Earlier US has carried out self-defense strike against Iran in response to Iranian attacks on US helicopter. Iran said the US had chosen to test our determination and that Iran’s armed forces would leave no attack or threat unanswered stating that leave our region if US wants to be safe. On the other side Israel continues to attack on Southern Lebanon. Asian markets trade negatively in the range of 1-3%. Gift nifty indicates a flattish start with 60 points upsides.

 

Dixon Technologies: Entered a binding term sheet with Taiwan’s Gemtek Technology to set up a JV for manufacturing Optical Transceivers (SFP) and BOSA products. This move pushes Dixon deeper into high-growth data center, 5G, telecom, and AI infrastructure segments. Optical Transceivers are modules that convert electrical signals into light (and vice versa) so data can travel through fiber optic cables. They are plugged into network switches, routers and servers in Data Centers, Telecom Networks, Enterprise IT. BOSA Modules (Bidirectional Optical Sub-Assembly) is the engine inside a transceiver that allows it to send and receive data over a single fiber strand. They are critical for Fiber-to-the-Home (FTTH) and IoT Devices.

 

Quality power: Acquires Winwin Specialty Insulators for an enterprise value of ~₹315 Cr. The move Strengthens Quality Power's position in the high-voltage transmission ecosystem. Adds a product segment with high entry barriers due to utility approvals, testing history, and qualification requirements.

 

Adani Energy: Acquire 100% of IntelliSmart Infrastructure Pvt Ltd for ₹3,050 Cr (equity + redemption of optionally convertible debentures). Post‑deal, AESL becomes India’s largest smart metering platform with a combined portfolio of 4.7 Cr+ smart meters.

FACT: Fertiliser Ministry seeks to double fertilizer subsidy from Rs 1.71 lakh crore budgeted for FY27 as Iran war hits costs. Positive for FACT, Coromandel International, Paradeep Phosphate.

Afcons Infra: The company has secured a massive Letter of Acceptance (LoA) worth Rs 5,301 crore for the Breakwater Project at the Vadhvan Port.

 

Meta Platforms and Reliance Industries Limited (RIL) have announced a joint venture to develop and deploy Llama-based enterprise artificial intelligence solutions in India and select international markets, with an initial combined investment of approximately Rs 855 crore (around $100 million). Under the agreement, RIL will hold a 70% stake in the joint venture while Meta will hold the remaining 30%. The JV will offer two core products: an enterprise AI Platform-as-a-Service that allows organisations to customise, deploy, and govern generative AI models for workflows across sales, IT, customer service, and finance; and a suite of pre-configured AI solutions for both cross-functional and sector-specific use cases. Separately, Reliance will build a 168 MW data centre that Meta will lease, with options to scale capacity.

 

MACRO WRAP

 

·       China's national CPI fell 0.1% MoM in May, after a 0.3% MoM rise in April,. Domestic gasoline swung from +12.6% to -0.3% on international oil-price pass-through; energy CPI moved from +5.7% to -0.1%, shifting its M-o-M contribution from +0.39 percentage points to -0.01 percentage points. Services prices eased from +0.5% to -0.1% as post-May Day travel declined, with the services contribution to MoM CPI moving from +0.22ppt to -0.03ppt; vehicle rental and airfares alone flipped from +8.6% and +29.2% to -6.8% and -6.3%, together reducing MoM CPI by ~0.04ppt. Seasonal summer clothing (+0.6%) and stronger AI-related demand boosting mobile phones (+1.6%) and tablets (+1.1%) added roughly +0.05ppt to May MoM CPI.

·       Middle East geopolitical tensions remain elevated as the US and Iran continue exchanging retaliatory actions, increasing risks to regional stability and investor sentiment. The latest escalation followed fresh US “self-defence” strikes on Iran after an American helicopter was downed, while Tehran reiterated that any attack would be met with a proportional response. Iranian media reported drone strikes targeting a US military base in Kuwait on June 10, following earlier attacks on US facilities in Bahrain and Jordan. Meanwhile, Israel intensified military operations against Hezbollah in southern Lebanon, adding to broader regional uncertainty and sustaining upside risks to energy prices, safe-haven demand, and market volatility.

·       The global market would remain focused on tonight’s US CPI report, The market is pricing 0.5% jump in monthly inflation and headline number is expected to print 4.2% annualised inflation. The Fed funds futures are pricing in 26bp hike by year-end and a total hike of 38bp by September 2027. The Fed is currently in its blackout period ahead of next week's FOMC meeting on 16-17 June. The Atlanta Fed's GDP Now model revised Q2 growth up to 3.3% from 3.0%, reinforcing the resilient US growth narrative.

·       US existing home sales rose 3.2% to 4.17 million annualized, beating expectations despite high mortgage rates. Gains were strongest in the Midwest and South, modest in the Northeast, and flat in the West. Inventory rose 3.3% to a 10month high, reaching 4.5 months of supply.

·       The US trade deficit narrowed to $55.9 billion in April from $56.6 billion, beating expectations. Exports rose 2.6% to a record $327.1 billion, led by capital goods, industrial supplies, and consumer goods, while services slipped. Imports increased 2.0% to $383.0 billion, driven by higher capital goods and service purchases.

·       Japan’s producer prices rose 6.3% y-o-y in May, up from 5.3% and above the 5.5% forecast, the fastest since March 2023 amid higher energy costs. Month-on-month, prices rose 0.9%, down from April’s revised 2.8%.

·       US private employers added an average of 29,000 jobs per week in the four weeks to May 23, down from 30,500 and marking a third week of easing growth. Still, ADP’s May report showed a solid 122,000 net job gain, with hiring more broad-based and momentum intact into summer.

·       The DJIA rose 0.2% while the S&P500 and the Nasdaq Composite fell 0.3% and 1.0% respectively. The Eurostoxx 50 fell 0.2%. The Dollar Index dipped 0.1% to 99.91. EUR-USD was a touch higher around 1.1540. The US 2Y yield fell over 4bp to 4.12% and the US 10Y yield declined nearly 5bp to 4.52%. The German 10Y yield dipped 2bp to 3.04%. The UK 10Y yield fell 4bp to 4.90%. Brent crude oil prices fell 3.0% to USD91.45. Gold fell 1.6% to USD 4,261.

·       Data Watch: The key focus will be on May US CPI print (Bloomberg est 0.5% m/m, 4.2% y/y), which carries significant implications for the Federal Reserve's Jun meeting and the trajectory of rate hikes now being priced by bond markets.

 

 

OTHER NEWS


China's steel exports fell by ~3% YoY to 10.3 MT in May'26, with CY26 YTD shipments reaching 44.6 MT (down by 8% YoY). While the YoY reduction in Chinese steel export is promising, it rose 9% sequentially. This is a positive development for domestic players.

 

TCS chairman N Chandrasekaran said the IT industry will no longer hire at the scale seen over the past two decades as AI takes over parts of traditional work, signalling a structural shift for India’s $315 billion technology sector. “The company will not be hiring the kind of number it used to hire,” Chandrasekaran said at TCS’s 31st annual general meeting held virtually on Tuesday.