Morning Scan: All the big stories to get you started for the day

China’s Tencent Holdings will sell its stake in Dream11 parent Sporta Technologies as the gaming unicorn moves to comply with regulations on Chinese investments, the Mint reported. Singapore-based Tiga Investment will buy Tencent’s shares for over $150 million.

Why it’s important: The Indian government restricted investments from China after a border standoff in 2020. Indian startups have largely shied away from Chinese investments. Tencent had also changed its strategy to invest in India via debt.

#3. Carlyle Group’s Sequent Scientific and Viyash Life Sciences in talks for Rs 8,000 crore merger

Carlyle Group portfolio companies Sequent Scientific and Viyash Life Sciences are in advanced discussions for a potential Rs 7,000-8,000 crore merger, the Economic Times reported. Boards of both companies are likely to discuss the possibility in the coming week. There is no certainty a transaction will materialise.

Why it’s important: Private equity firms have been actively interested in India’s pharmaceuticals space in recent years and some have seen remarkable returns on investments. The deal activity is likely to continue.

#4. French food giant Danone wants to go big in India to stay globally relevant, CEO says

French food MNC Danone will be irrelevant as a global player if it is not committed to and does not have a strong presence in India, chief executive Antoine de Saint-Affrique told the Economic Times. “In terms of priority, India is at the very top,” he said. “If we are not big in India in 10, 15 or 20 years, we will be irrelevant as a global player. It’s as simple as that.”

Why it’s important: India is fast emerging as one of the world’s largest markets and growth drivers for several consumer goods multinationals. This trend is set to continue as domestic demand increases.

#5. Jaguar Land rover to invest £500 in Halewood factory to support electric vehicle production

Luxury carmaker Jaguar Land Rover, owned by Tata Motors, will invest £500 million to transform its Halewood facility in England to support the production of electric vehicles alongside existing combustion and hybrid models, the Hindu Businessline reported. It has already invested £250 million and has extended the facility to produce midsized electric luxury SUVs.

Why it’s important: Halewood will be Jaguar Land Rover’s first all-electric production facility. The tech and processes developed at the facility could eventually feed into Tata Motors’ electric cars elsewhere as well.

#6. Listed financial sector companies underperform on bourses despite leading earnings growth

Companies in the banking, finance sector and insurance sector have underperformed on the broader stock exchanges despite leading the earnings growth charts in the post-pandemic period, The business Standard reported. Their valuation discount over non-BFSI companies and the broader market is now the highest since at least 2011.

Why it’s important: this indicates that the BFSI segment has become expensive over the years, but the valuation re-rating has been much sharper in sectors such as IT, automotive, consumer goods, defense, industrials and metals. Banks, NBFCs and insurers saw only a modest rise in their valuation in recent years.

#7. Swiggy investors Accel, Alpha Wave, Elevation and Prosus to sell some stake in upcoming IPO

Swiggy’s early investors, which include Accel, Alpha Wave, Elevation Capital and Prosus, will sell some of their stake under the offer for sale option in the food delivery startup’s upcoming IPO, the Mint reported. The public listing involves a combination of fresh issue of equity shares worth Rs 3,750 crore and an offer for sale of 185.3 million equity shares by the existing shareholders.

Why it’s important: Sqiggy’s IPO is much anticipated as it follows its close rival Zomato to list publicly. The two companies dominate the fodd delivery market and have made strides in quick commerce as well.

#8. Promotors of small and midcaps scrips dilute stake at highest rate since 2008 financial crisis

Over 20 percent of firms listed on BSE MidCap and BSE SmallCap gauges have seen a decline in promoter holdings for five consecutive quarters, the Business standard reported, citing data from DSP Mutual Fund. In the June quarter, the figure stood at 22.6 percent. Similar levels were last seen in 2026-07. Both the midcap and smallcap indices reached all-time highs in September.

Why it’s important: Some promoters could be selling to convert locked-in wealth into more easily accessible capital while offloading by some indicates that a section feels their companies are overvalued.

#9. WeWork’s plan to sell stake in India unit and exit country collapses on valuation mismatch

WeWork plan to sell its 27 percent stake in its Indian unit has collapsed even after the Competition Commission of India approved the proposal, the Economic Times reported. The coworking firm’s local partner Embassy Group was also slated to divest a 13 percent stake in WeWork India.

Why it’s important: The transaction may have collapsed due to a valuation mismatch even after the regulatory nod. The development comes on the back of a successful public offering by WeWork India’s rival Awfis in May, which signals a turnaround in the sector.

#10. New US tariffs on Chinese goods could see increased influx and dumping into India

India faces the risk of an influx of Chinese products as US tariffs on a range of Chinese goods, including solar panels, electric vehicles, lithium-ion batteries, syringes and steel, take effect from September 27, the Business Standard reported. With higher tariffs reducing China’s access to the US market, there are concerns that China may divert its exports to other markets, including India, which could lead to potential dumping of goods.

Why it’s important: An increase influx of Chinese products could pose a challenge to local industries, particularly in sectors where competition with Chinese goods is already fierce. This could need some shielding support from the government.