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The shares of IT companies surged up to 5% on Wednesday, amid overall optimism on Dalal Street and Wall Street following hopes for fresh Iran-US talks, along with easing concerns about AI-led disruption.

After taking a significant beating earlier this year due to AI worries and war-led inflationary concerns, the stocks have partially recovered so far in April. Nifty IT jumped more than 2% to emerge as one of the top sectoral gainers on the markets today.

Fresh hopes for Iran-US peace talks

Pakistani officials cited by the Associated Press indicated on Tuesday that Islamabad has proposed a second round of talks to the United States and Iran, while US Vice President JD Vance earlier said negotiations with Iran “did make some progress” and US President Donald Trump said earlier “we’ve been called by the other side” and “they want to work a deal.”Trump hinted at the second round of talks, saying Iran talks ‘could be happening over the next two days’ in Pakistan, as quoted by Reuters, citing the NY Post. He said that Washington was more ‘inclined’ to go to Pakistan for the peace talks that could possibly bring an end to the nearly seven-week-long war in the Middle East. The renewed hopes for fresh peace talks, after the previous round collapsed over the weekend, boosted investor sentiment.

Earlier, the raging war in the oil-rich Middle East and the subsequent rally in energy prices had led to inflationary worries in the US. IT companies derive a major portion of their revenue from the US economy, inflationary worries and concerns around subsequent lower demand impacted IT stocks back home on Dalal Street. However, the renewed optimism has boosted investor sentiment.

AI worries

Before the Middle East war, it was artificial intelligence that dampened sentiment for the IT stocks earlier this year. The tech stocks saw a massive decline in February with the launch of new and innovative artificial intelligence tools by AI startup Anthropic, which triggered worries around disruption in the software services. Back on Dalal Street, shares of Infosys, Wipro, TCS, HCLTech and other IT companies, saw a sharp selloff.However, while some doomsday prophets painted a grim picture for IT shareholders, some analysts were quick to point out that an overall replacement of software engineers by AI is unlikely. The new technology would instead increase efficiency across the companies, boosting margins, according to them.

Goldman Sachs released its Q1 earnings on Monday. During an analyst’s call, David Solomon, Chairman and CEO of Goldman Sachs, said he is hugely forward-leaning on the power of artificial intelligence to accelerate growth at the bank. “Whenever you have accelerations in new technology, there are going to be bumps, there will be risk issues, and recalibrations. But the power of this technology to use it in an enterprise to increase efficiency is incredibly constructive,” he added. Entrepreneur and financial expert Gurmeet Chaddha highlighted that Solomon claimed that AI taking over enterprise software is not easy.

IT shares rally

Tata Consultancy Services (TCS) shares, which recently fell after its Q4 results, gained more than 3% today to trade at Rs 2,551 apiece.

Infosys, LTIMindtree, Wipro and Persistent Systems shares gained nearly 3% each, while Mphasis, Tech Mahindra and Coforge shares jumped around 2% each. Oracle Financial Services Software shares rallied around 5% in the morning.

Wall Street ended higher yesterday, with the S&P 500 jumping more than 1% to close near the record high level it had hit in January. Tech-heavy Nasdaq Composite gained nearly 2% while Dow Jones Industrial Average rose 0.7%. Microsoft shares gained more than 2%, while Amazon rallied nearly 4%.

Calm before the storm?

Despite the optimism, some caution is warranted. After previous Claude models rattled investor confidence in the sector, Anthropic’s latest release, a preview of a model called Mythos is spooking investors. “Mythos’ significant improvement in software engineering-related tasks is a departure from the trend of incremental improvements between consecutive frontier models,” Kotak Institutional Equities said in a note. “These developments could have implications for IT services firms.”

Additionally, Trump is notorious for his decision flip flops and the peace talks have already once failed, keeping investors on the edge and sentiment fragile.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

REKK’s founders will stay with expanded business

A Greater Manchester waste management group backed by private equity firm Palatine has made its third acquisition in a year. Papilo has acquired REKK Recycling, which is based in Uddingston near Glasgow, in a move that also expands its reach across the UK.

REKK founders, Steven Dodds and John Byrne, will stay with the business as it joins Papilo, which has been backed by Palatine’s Impact Fund. It follows February’s deal by Papilo for Midlands-based Allwood Recycling and last year’s deal for North West-based Silverwoods Waste Management.

Michael Gibson, who joined Swinton-based Papilo as CEO earlier this month, said: “REKK is an excellent strategic addition for Papilo and enhances our geographical presence into Scotland.

“Like ourselves, the company’s ethos is built on best-in-class customer service and on supporting better environmental outcomes through recycling. Founders Steven and John have done a fine job in building the business and I am pleased that along with their team they are remaining with the group for the next phase of growth.”

Greg Holmes, senior investment director at Palatine Impact Fund said: “REKK is an excellent fit for Papilo – not just geographically, but in its shared commitment to diverting waste from landfill and supporting clients to take a more responsible approach to resource management.

“This is Papilo’s third acquisition in under a year as we build a business of true scale in the circular economy in partnership with the ambitious management team and we are well-positioned to continue that growth through further strategic M&A.”

The transaction, whose value was not disclosed, was funded by Kartesia and Virgin Money. Papilo was advised by Gateley (legal), Fellwood Advisory (debt advisory), MHA Smalley (financial and tax due diligence) and Luminii Consulting (commercial due diligence). Advisers to REKK included KBS (corporate finance) and Mackrell (legal).

Federal Budget

The Federal Government publishes the spending and revenue numbers on a monthly basis. The charts and tables below give an in-depth review of the Federal Budget, showing where the money is coming from, where it

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GQG Partners, which has been bullish on the Adani group for quite some time, selectively increased its exposure to key group companies during the January-March quarter, even as stock performance was mixed. Foreign institutional investors (FIIs) and domestic institutional investor Life Insurance Corporation (LIC) largely held steady or trimmed their stakes.

Shareholding data for the March quarter shows GQG marginally increasing its stakes in multiple Adani companies. Its holding in Adani Energy Solutions rose from 4.79% to 4.88%, while in Adani Green it increased from 4.31% to 4.54%. In Adani Enterprises, the group’s flagship entity, GQG’s stake edged up from 3.87% to 3.90%.

These incremental increases signal continued conviction from the marquee investor, which had emerged as a key backer of the Adani group during periods of heightened volatility.

However, in Adani Power, GQG’s stake saw a slight dip from 4.82% to 4.8%, while in Adani Ports, it remained broadly stable at around 2.26%.

In contrast, FIIs showed signs of caution. Their holdings declined in several key companies during the quarter. In Adani Energy Solutions, FII ownership dropped sharply from 13.47% to 12.23%. Adani Enterprises also saw a reduction from 11.64% to 10.8%, while Adani Green witnessed a slight dip from 11.42% to 11.1%.

The trimming was in line with the broader sentiment of foreign investors in Indian stocks, which they have been dumping for the past year.
LIC, one of the largest domestic institutional investors, largely maintained its positions across most Adani companies, with only minor adjustments. Its stake in Adani Ports declined slightly from 6.79% to 6.63%, while holdings in companies such as Adani Enterprises, Adani Energy and Adani Green remained unchanged. This steady stance reflects a long-term holding approach rather than tactical allocation shifts.Mutual funds, meanwhile, showed renewed commitment with increasing exposure across several stocks. Holdings in ACC rose from 7.84% to 8.01%, while Ambuja Cements saw a notable jump from 8.15% to 8.92%. Adani Power and Adani Green Energy also recorded modest increases.

Despite these shifts in ownership, stock performance across the Adani group has been mixed so far in CY26. Adani Power has been a standout, delivering gains of around 22.9%, supported by strong sectoral tailwinds in thermal power. Adani Energy has also performed well, rising about 12.5%, while Adani Green is up nearly 7%.

On the other hand, several key stocks have lagged. ACC has declined about 18%, while Ambuja Cements is down roughly 20%, reflecting weakness in the cement segment and margin pressures. Adani Enterprises has slipped around 6.8%, and NDTV has seen a similar decline of about 20%. Adani Ports has remained largely flat, indicating a lack of strong directional momentum.

GQG’s continued accumulation in select Adani stocks appears to be a strategic bet on long-term fundamentals, particularly in infrastructure and energy-linked businesses. At the same time, the cautious stance of FIIs suggests that global investors are still evaluating risk-reward dynamics, especially given the group’s capital-intensive expansion plans and evolving regulatory landscape.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

SYDNEY — Australia’s fuel crisis, triggered by disruptions from the US-Israel conflict with Iran and the effective closure of the Strait of Hormuz, continued into mid-April 2026 with hundreds of service stations still reporting shortages, diesel prices exceeding $3 per litre in many areas and economists warning of growing recession risks if supply restrictions become necessary later this year.

Energy Minister Chris Bowen stated this week that Australia holds approximately 38-39 days of petrol reserves, 29-31 days of diesel and about 30 days of jet fuel, with 57 ships carrying more than 4.1 billion litres of fuel secured through May. However, regional areas and the transport sector face ongoing pain, with diesel shortages particularly acute for farmers, truck drivers and miners who keep the economy moving.

As of early April, the number of service stations without diesel had fallen from peaks above 400 to around 173-312 nationwide, depending on daily reporting, with New South Wales hardest hit at times with over 180 stations affected. Hundreds more ran dry on unleaded petrol in rural and outer suburban locations. Panic buying earlier in the crisis exacerbated the situation, though government appeals for normal purchasing habits helped stabilise some queues.

The crisis stems from Australia’s heavy reliance on imports. The nation sources about 90% of its refined fuel from Asian refineries that depend on crude oil passing through the Strait of Hormuz, which handles roughly one-fifth of global supply. Disruptions since late February or early March, including cancelled or delayed shipments and reduced refinery output in Singapore, South Korea and Malaysia, created a lag effect now biting into domestic availability. Even with a reported ceasefire in the Iran conflict, experts say repairs to damaged infrastructure mean full supply recovery could take months.

Petrol prices surged from around $1.80 per litre pre-crisis to averages near $2.20-$2.50, while diesel climbed sharply toward or past $3 in affected regions — a jump of 50% or more in weeks. A typical family’s weekly fuel bill rose by $20-$30 or higher, adding thousands annually for heavy users. The government halved fuel excise tax for three months, providing roughly 26-32 cents per litre relief at the pump, and released portions of national stockpiles while temporarily relaxing fuel quality standards to broaden import options.

Prime Minister Anthony Albanese’s administration activated elements of its four-stage National Fuel Security Plan. The country currently operates in a heightened “plan and prepare” or voluntary conservation phase, encouraging carpooling, reduced unnecessary travel and efficient driving. Stage three could involve prioritising fuel for essential services such as emergency vehicles, food transport, agriculture and mining if shortages worsen. The government has underwritten spot-market purchases by major suppliers Ampol and Viva Energy at inflated prices and holds powers to direct distribution toward vulnerable regions.

Farmers and the transport industry bear the brunt. The National Farmers’ Federation warned of potential food price hikes up to 50% if diesel shortages disrupt planting, harvesting and distribution. Truck operators face viability threats, with some reports suggesting up to 70% could struggle without relief. Fertiliser shortages compounded by higher transport costs add pressure on agriculture. Qantas responded by cutting domestic flight capacity 5% and warned of jet fuel costs ballooning to $3.1-$3.3 billion for the half-year.

Retail giant Wesfarmers, owner of Bunnings, Kmart and Target, paused delivery fees on eligible orders until September to ease cost-of-living strain on customers. Used electric vehicle prices rose as some motorists reconsidered combustion engines amid sustained high fuel costs.

Economist Shane Oliver of AMP warned that prolonged disruptions could tip Australia toward recession in the second half of 2026. While immediate price spikes hurt households, the real danger lies in physical shortages forcing usage restrictions that ripple through supply chains, inflation and business confidence. The International Monetary Fund flagged broader global energy crisis risks with potential stagflationary effects.

Critics, including opposition figures and industry groups, pointed to long-term vulnerabilities: Australia once operated eight domestic refineries but now has only two — Ampol’s Lytton in Brisbane and Viva Energy’s Geelong facility — meeting less than 20% of needs. The country holds far below the International Energy Agency’s recommended 90-day reserve obligation, a gap highlighted in past warnings. Calls grow for boosting local production, including accelerated development of the Taroom Trough oil fields in Queensland, where test wells show promise but commercial output may not flow until 2028 at earliest.

In response, the government pursues diplomacy with Singapore, Malaysia and Brunei to secure additional refined fuel. A $20 million public campaign urges fuel conservation. Transport Minister Catherine King confirmed ongoing efforts to support heavy vehicle operators through reduced road user charges.

Regional impacts vary. Urban centres in Sydney, Melbourne and Brisbane see sporadic outages but generally better access, while country towns sometimes face multi-day dry spells at the single local servo. Some stations imposed purchase limits during peak disruption. Vigilante-style complaints about alleged price gouging emerged, though the Australian Competition and Consumer Commission monitors retailers.

Despite challenges, Bowen and Albanese stressed that no expected April shipments failed to arrive and new orders replaced cancellations. They encouraged Easter and school holiday travel to proceed normally, though many families adjusted plans to shorter trips or public transport where possible.

Broader economic effects include rising goods prices as transport costs feed into groceries and retail. Confidence among households and businesses dipped sharply. Some analysts note a silver lining in accelerated interest in electric vehicles, with second-hand EV values climbing.

Longer-term solutions under discussion include incentives for domestic refining and storage expansion, greater biofuel or hydrogen integration, and stronger strategic reserves. Queensland Premier David Crisafulli highlighted his state’s potential role in boosting local oil output and refining capacity.

As the crisis enters its second month, the Albanese government faces balancing short-term relief with preparations for possible extended “long tail” disruptions even if Middle East tensions ease. Treasurer Jim Chalmers prepares talks with international counterparts on energy security.

Motorists are advised to fill up responsibly, combine trips and consider alternatives like public transport or remote work where feasible. For businesses, contingency planning around logistics remains essential.

The situation underscores Australia’s exposure at the end of global supply chains. While immediate reserves and secured shipments provide a buffer into May, the coming weeks will test resilience as Asian refinery constraints potentially tighten further. Government, industry and consumers alike watch developments in the Middle East and Asian fuel markets closely.

For the latest station availability and prices, drivers can check apps and websites from major fuel networks or the Australian Institute of Petroleum. Authorities continue monitoring and stand ready to escalate measures if needed to keep essential services running.

The fuel crisis of 2026 serves as a stark reminder of energy security’s importance in a geopolitically volatile world. Australia’s response will shape economic outcomes well beyond the current disruptions.