Week of 9-13 Dec’25
A note for readers
This weekly note is for anyone who missed our daily updates. It captures every material development from the week, explains why it matters, and closes with Eiko’s synthesis. Nothing important is left out.
The week, in one view
This week reinforced a quiet but important pattern. India’s long-cycle build-out continues across energy, nuclear power, defence manufacturing, AI infrastructure, logistics, and advanced manufacturing, even as global uncertainty remains elevated.
AI moved further from narrative to execution. IT services saw deal momentum revive, enterprise adoption deepened, and the supporting infrastructure stack, from semiconductors to power efficiency, became more visible. Healthcare and commodities threw up clean demand-supply signals, while media and OTT economics began to reset toward discipline.
1. Capex, infrastructure, & long-cycle investment
Luxury housing expands beyond metros
Luxury housing now accounts for 27 percent of India’s housing market, up from 16 percent, as developers push large-format premium homes into non-metro markets. This mirrors the broader luxury market, projected to grow from $17 billion in 2024 to $103 billion by 2030, driven by jewellery, watches, automobiles, and housing.
Telangana emerges as a capex hub
Telangana signed ₹5.75 lakh crore worth of MoUs, with nearly half linked to energy. Announcements spanned AI data centres, power infrastructure, and digital capacity creation, aligned with the state’s Vision 2047 ambition of building a $3 trillion economy.
Nuclear power opens up structurally
India’s nuclear capacity of 8.78 GW is targeted to rise to 22.38 GW by FY32, with a long-term ambition of 100 GW by 2047. Proposed amendments to the Atomic Energy Act and the Civil Liability Act would allow private-sector participation across the nuclear value chain.
2. Technology, AI & digital infrastructure
IT services and enterprise AI move into execution
Deal momentum revived, with Q2 deal values up 26 percent YoY and a 2.8 percent QoQ recovery after a weak prior quarter. AI workloads are moving beyond pilots, with monetisation expected to scale over the next few years. Europe is emerging as the faster-moving geography, while US deal cycles remain slower.
Large-scale enterprise adoption continued, with 200,000 Copilot licences rolled out across major Indian IT firms, positioning them as global execution partners for enterprise AI.
AI infrastructure, chips & power efficiency
Signals strengthened across the AI infrastructure stack. Strategic partnerships to accelerate GaN and SiC power semiconductor adoption highlight rising demand for high-voltage, high-power electronics as compute density increases.
A key framing emerged around power efficiency as the binding constraint for AI, directly linking compute efficiency to economic outcomes.
Supercomputing, deep tech & space IP
India reiterated its push toward compute sovereignty, targeting fully indigenous high-performance computing systems by 2030. Indigenous content already stands at 50 percent, with 90 petaflops of capacity targeted by March 2026.
In parallel, space and deep-tech IP commercialisation expanded through structured technology transfer initiatives to startups and MSMEs.
3. Defence, aerospace & strategic manufacturing
Defence sustainment and MRO scale up
A new C-130J MRO facility broke ground in Bengaluru, strengthening domestic lifecycle support for the Indian Air Force and reducing long-term reliance on overseas maintenance.
Manufacturing partnerships deepen
The defence ecosystem continues to shift from procurement toward joint development and local manufacturing, as global partners increasingly look to India for diversification and execution capability.
Automation becomes central to defence manufacturing
A fully automated, 100 percent Make-in-India defence production line was commissioned, highlighting how automation, throughput, and cycle-time discipline are becoming critical to competitiveness.
4. Logistics, mobility & physical networks
Autonomous logistics moves into validation
Autonomous logistics crossed an execution milestone with a successful end-to-end drone delivery test for medical supplies. Larger payload platforms with higher indigenisation are under development, with long-term implications for rural connectivity and time-critical logistics.
Aviation logistics unlock
Regulatory clearance for passenger-to-freighter aircraft conversions in India supports the fast-growing e-commerce and express cargo market, offering a significantly lower-cost alternative to new freighters.
5. Healthcare & GLP-1 adoption
India’s anti-obesity drug market showed strong price sensitivity. Following price reductions, volumes jumped sharply within weeks, lifting market share meaningfully. Despite this, one global player continues to dominate overall sales.
The signal is clear. Affordability will be the key driver of GLP-1 adoption, setting up a multi-year healthcare opportunity as access improves.
6. Media, sports & OTT economics
Cricket rights reset toward discipline
Broadcasters are reassessing cricket media rights amid weaker ad budgets, streaming losses, and industry consolidation. With leadership consolidated, future bidding cycles are expected to be more disciplined.
Sports remain the OTT differentiator
As content libraries deepen, live sports continue to be the primary competitive lever for Indian OTT platforms. Over time, additional sports formats are likely to gain prominence alongside cricket.
7. Commodities, energy & macro signals
Silver supply tightness persists
Global silver markets remain in a structural deficit, driven by demand from solar, EVs, and AI-related applications. Shrinking inventories and lagging mine supply suggest the rally is fundamentally driven.
Energy transition realism sets in
Capital allocation is adjusting to reality, with low-emission alternatives still significantly more expensive than conventional fuels. This is supporting continued investment in traditional energy even as transition pathways evolve.
Macro liquidity tailwinds improve
Global liquidity improved following renewed monetary easing. While currency pressures persist, easing rate differentials could support portfolio inflows into Indian markets over the coming year.
8. Geospatial intelligence & digital twins
A major step was taken in subsurface 3D mapping and digital twin creation, with advanced ground-penetrating radar deployed across large infrastructure assets. This lays the foundation for safer construction, smarter planning, and long-term asset digitisation.
9. Space economy & next-frontier infrastructure
The space economy continues to converge with defence, data, and AI infrastructure. Preparations for a major space-sector public offering highlight growing focus on space-based data and compute infrastructure, positioning space as critical economic infrastructure rather than exploration alone.
Eiko’s POV
This week reinforced a consistent message. India’s transformation is compounding quietly, not linearly.
Capex momentum is broadening across energy, nuclear power, defence, aerospace sustainment, AI infrastructure, logistics, and advanced manufacturing. AI is no longer a narrative theme. It is showing up in deal wins, enterprise deployment, power-efficiency constraints, semiconductor partnerships, and compute policy.
For investors, opportunity remains concentrated in three lanes:
• Long-cycle capex and national capability build-out
• AI enablers across IT services, power electronics, semiconductors, and compute
• Select healthcare and commodity themes with structural tailwinds
India is firmly in a multi-year build phase. Outcomes will be driven by execution quality, balance-sheet strength, and patience, not broad exposure.
About Eiko
Eiko is a SEBI-registered investment advisory focused on long-term wealth creation through disciplined research and portfolio construction.
If our way of thinking resonates, you can learn more about our advisory approach here:
https://www.eikoquantum.com/investment-philosophy