IndusInd Shares Crash, Trump's Tesla Promotion, Starlink’s India Entry and Sensex 1,05,000 Target | Business News Wrap

₹19,000 crore lost in a day. What triggered this massive sell-off?

Hi, I’m Avni Raja, and over the next few minutes, I’ll take you through the Hook business news wrap for the week.

The top business story this week is the meltdown of IndusInd Bank’s stock. Shares of the private sector lender tanked 27 per cent on March 11, wiping out nearly ₹19,000 crore in investor wealth. This came after the bank uncovered discrepancies in its derivatives portfolio, potentially leading to significant losses. An internal review revealed inconsistencies in certain account balances, which the bank estimates could erode 2.35 per cent of its net worth, leading to a ₹1,500 crore loss. The bank has also initiated an external review into the matter. However, the bank’s MD & CEO, has assured investors that it will remain profitable this quarter and that this is a one-off event not a recurring issue. Meanwhile, the bank’s shares saw some recovery following Tuesday’s sharp decline.

Let’s shift gears from banking to telecom—and the big story here is Elon Musk’s grand entry into the Indian market. Arch-rivals Jio and Bharti Airtel, have now teamed up with Musk’s SpaceX to bring Starlink satellite internet to India. However, these tie-ups are subject to government approvals. Once Starlink’s space-powered connectivity is rolled out, it will ensure no dead zones—places without internet—exist in the country. This means that even the most remote corners of India could get 200 Mbps speeds, scaling up to 1 Gbps.

Speaking of Elon Musk’s businesses—his car company Tesla got a major endorsement from none other than US President Donald Trump. On March 11, Trump turned the White House South Portico into a Tesla hype zone and bought a red Model S. He did this to show his support for his billionaire ally, who is under fire for his role at the Department of Government Efficiency. Musk has been facing political criticism and Tesla boycott calls after mass firings and a shake-up in the US bureaucracy. Tesla’s shares, which had plunged earlier this week, later recovered following Trump’s display of support.

Back home, there’s some positive news on the macroeconomic front. India’s retail inflation dropped to 3.6 per cent in February, down from 4.3 per cent in January. This marks a seven-month low and is now below the Reserve Bank of India’s medium-term target of 4 per cent. Lower food prices, which play a crucial role in determining overall inflation, were a major factor in this decline.

While prices eased, India’s industrial growth strengthened in January—and at a better-than-expected pace. The country’s industrial output, measured by the Index of Industrial Production or IIP, expanded by 5 per cent in January, up from 3.2 per cent in December 2024. This surge was driven by strong performances in the manufacturing and mining sectors.

And speaking of the economy, Morgan Stanley is bullish on India’s growth prospects. The global brokerage firm believes consumption in India is set to rise, driven by tax cuts boosting urban spending and strong rural demand. As a result, Morgan Stanley expects the Sensex to recover from current levels and reach 93,000 by December 2025 in its base-case scenario—a gain of around 25 per cent. However, in its bull-case scenario, the brokerage house predicts the Sensex could soar over 40 per cent to one lakh five thousand.

Speaking of markets, Indian equities remained largely flat this week. Both the Sensex and Nifty saw minor declines in a truncated trading week, as markets remain closed for Holi on Friday.

With that, it’s a wrap on this week’s business headlines. Wish you all a very happy Holi! We will be back with more next week.