Gensol’s troubles, the great FII escape & more…

Gensol’s troubles, the great FII escape & more…

In this week’s wrap-up, we go over the roadblocks threatening India’s IMEC trade corridor, a memecoin scam that made a teenager rich overnight, why foreign investors are leaving Indian markets, how the Sudan conflict is shaking up the supply chain for Gum Arabic and why the US suddenly wants to rewrite the definition of GDP.

In this week’s markets edition, we break down the Gensol Engineering saga — why its stock is crashing, why credit ratings agencies are raising alarm bells, and whether there’s a way out of this mess. Click here to read the full markets story.

But before we begin… We’re on the lookout for a Financial Writer!

If you love finance and have a knack for storytelling, this is your chance to join Finshots. We simplify business and finance for 5,00,000+ readers every day, and now, we’re looking for someone who can break down market trends, economic policies and business stories into crisp, engaging reads.

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And with that out of the way, let’s recap what we wrote over the week, shall we?


Can India’s IMEC trade corridor vision become a reality?

India unveiled a grand plan last year — the India-Middle East-Europe Economic Corridor (IMEC). The idea? A seamless trade route connecting Asia and Europe via the Middle East, promising faster, cheaper logistics and stronger energy ties. 

It all sounded perfect… on paper.

Because the corridor runs through politically volatile regions, making smooth cooperation almost impossible. Rail freight is three times more expensive than ocean shipping, which could make costs skyrocket. And a few other such hiccups. 

So is this corridor just a diplomatic flex, or does it stand a real chance? We break it all down in Monday’s newsletter.

Memecoin fraud just became easier

A Canadian teenager made $50,000 overnight. And no, it was not by launching a startup, but by playing the memecoin market like a rigged casino. Using a platform called Pump.Fun, he created a new coin, hyped it up through livestreams, and cashed out just before it crashed. Classic pump-and-dump.

But the surprising bit here was that the US SEC just ruled that memecoins aren’t securities. Meaning, even if you lose money in a scam like this, regulators can’t help you.

But why on earth did the SEC rule something like that. Wouldn’t it mean memecoin fraud is about to explode? Find out in Tuesday’s story.

FIIs are upset. Should you be too?

As you might already know the Indian markets are in turmoil, and foreign investors are running for the exit — ₹1.5 lakh crores have been pulled out in just two months. 

But why? 

Well, India’s returns are lagging behind other emerging markets, the tax system here is a headache for FIIs, and the rupee’s constant depreciation is eating into their profits.

But here comes the big question — should this FII sell-off worry you? Maybe. But we also explain why you shouldn’t panic, and what lessons you can learn from a legendary investor who turned $20,000 into $22 million by keeping things super simple.

Just head on to our Wednesday’s story to know about it.

Are Coca-Cola, Nestlé, L’Oréal fueling a war economy?

Ever heard of Gum Arabic? Probably not. But it’s in your cola, your chocolates, your pet’s food and even your lipstick. And Sudan produces 80% of the world’s supply.

The problem today though? Sudan is in the middle of a brutal civil war, and a powerful paramilitary group now controls Gum Arabic exports. And instead of selling it legally, they’re smuggling it across borders, fuelling the war economy while global brands unknowingly buy up their supply.

So what happens now? Can companies like Nestlé and L’Oréal find ethical sourcing alternatives, or are they trapped in this messy trade? That’s something we look at in Thursday’s newsletter.

The US wants to remove government spending from GDP

The US Commerce Secretary just proposed a wild idea — remove government spending from GDP calculations. His argument?

Government spending doesn’t always mean real economic growth. So inefficient spending shouldn’t really count towards GDP.

Sounds logical, right? But does this idea really hold up?

Maybe. Because past research has shown that when governments reduce spending, their investments to GDP ratio goes up almost immediately. And if the spending cuts focus on trimming government wages, the impact can be even bigger.

But hey, there’s a reason why government spending has always been part of GDP calculations and changing that definition out of the blue, can do more harm than good. Which is exactly what we dived into in Friday’s story.

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Did Reliance steal $1.8 billion worth of ONGC’s gas?

A decade-long battle between India’s energy giants, Reliance and ONGC, just took a dramatic turn. An Indian court overturned an international arbitration ruling, raising serious questions about contracts, investment security, and energy disputes in India.

Did Reliance break the law? Or was it just smart business? Watch this deep dive to find out!