Was this forwarded to you? Click below to subscribe so you don’t miss another edition.

Good morning. A fun fact to start your week right: May 20th, 1948 was the day Portuguese explorer Vasco da Gama discovered the sea route to India when he arrived at Kozhikode (previously known as Calicut), India 🚢🕵️‍♂️

- Ruchrngd Sharma & Shatakshi Sharma  

📊 Markets

🇮🇳 India

• Equity markets remained stable on Friday following Thursday's volatility. M&M, JSW Steel, Ultratech Cement, Kotak Bank, ITC, Maruti Suzuki, NTPC, and Tata Motors saw gains, while TCS, HUL, HCL Tech, Nestle India, Wipro, Bajaj Finserv, and Infosys declined. Broader markets outperformed benchmarks, with BSE MidCap and SmallCap each up over 1%.

🌍️ International

• U.S. stocks rose, with the Dow Jones exceeding the historic 40,000 mark due to reduced inflation and economic stability. This coincided with May market rallies. Meme stocks like GameStop fell after announcing share sales. Treasury yields rose slightly, while oil, gold, copper, and silver futures hit new or multi-year highs.

💰️ Is it time for Flipkart’s IPO?

Since its founding in 2007, Flipkart, often referred to as India's Amazon, has been on a rapid growth trajectory.

In 2018, the company was purchased by U.S.-based retail behemoth Walmart for a staggering ₹1.3 lakh Cr ($16B). Since then, anticipation for their supposed IPO has been building.

But here’s the good news: Recent reports suggest that the wait may soon come to an end, with Walmart carefully assessing the best timing for Flipkart's IPO.

During a recent quarterly analyst call, Kath McLay, the President and CEO of Walmart International, expressed enthusiasm for the Indian market and mentioned that they are "exploring when will be the right time to IPO that business (Flipkart)."

Why now?

• Flipkart, a competitor to Amazon and Reliance's JioMart in India's burgeoning e-commerce market, originally planned an IPO in 2022-2023. However, it was postponed due to financial considerations and global economic uncertainty.

• But recent developments, like its subsidiary Myntra achieving profitability on an EBITDA basis for two consecutive quarters, illustrate Flipkart's financial strength and readiness for an IPO.

• Reports also suggest that Flipkart is moving its headquarters from Singapore back to India, aligning with its long-term goal of going public.

Valuation and location:

• Flipkart is currently valued at ₹2.7 lakh Cr ($33B). Its move to India could result in a significant tax windfall for the Indian government.

• The company is eying a valuation of around ₹5 lakh Cr ($60B) at the time of its IPO.

• Consideration is being given to listing the company in both India and the US.

Overall: Walmart's Chief Financial Officer, John David Rainey, disclosed that Flipkart achieved double-digit growth in the quarter ending April 30, underscoring the company's strong performance.

Walmart is satisfied with the robust growth of both Flipkart and its payment arm, PhonePe, which highlights the immense potential of the Indian market.

As Walmart determines the best timing for Flipkart's IPO, it remains committed to leveraging the exciting opportunities presented by the rapidly evolving Indian e-commerce scene.

Read more: Inc42

🚦 AI traffic control

If you’re driving in India, sitting in traffic is an inevitable reality. 

But the state of Sikkim is embracing new cutting-edge technology to revolutionise its traffic management system. 

Starting from May 25, an AI-driven traffic management system will be launched across the state. 

The goal? To modernise traffic regulation, enhance efficiency, and ensure road safety.

How it works: 

• The AI system will be equipped with several advanced features, including automated verification of vehicle documents, detection of traffic violations such as overspeeding and running red lights, and the ability to issue e-challans to offenders. 

• By leveraging this technology, Sikkim aims to keep unauthorised vehicles off the roads, improve enforcement of traffic regulations, and ultimately enhance road safety.

Why now: 

• The implementation of this AI-driven system is a response to the growing traffic challenges faced by Sikkim, a state with a limited and often narrow road network. 

• As the population and economic activities expand, efficient traffic management has become crucial. 

• Additionally, the hilly terrain and scenic routes demand effective regulation to ensure smooth traffic flow, road safety, and prevent congestion.

Overall: Vehicle owners, including government vehicles, have been notified to keep their documents updated to avoid any discrepancies with the AI system. 

The adoption of this cutting-edge technology marks a significant step towards addressing traffic management and road safety concerns in Sikkim, paving the way for a safer and more efficient road network in the state.

Read more: Telegraph Online

🗞️ Bite-sized summaries

🪨 India still uses coal - Asia's largest carbon emitters, China and India, rely heavily on coal for electricity, complicating their climate goals. A study by Ember highlights that global coal power has nearly doubled in the last two decades, with significant increases in China and India in 2023. China produced only 35% of its power from clean sources in 2023, emitting over 5 billion tonnes of CO2 - triple that of the U.S. and India combined. In the same year, India generated 78% of its power from fossil fuels, primarily coal. Experts warn that while a swift transition from coal is essential, it poses a considerable challenge for these nations, balancing energy needs with GDP growth.

📈 India’s IPO market is ripe - India's robust regulatory framework, strong economy, and positive investor sentiment make it a favourable environment for IPOs, says Shailendra Singh, Managing Director at Peak XV Partners. With 220 IPOs in 2023, India was globally second only to China. Forecasts of low inflation and interest rate cuts indicate a vibrant IPO market in 2024. Indian founders often prefer local listings, and Peak XV, with $9 billion in assets, has invested in over 400 companies in sectors such as cross-border software, fintech, consumer brands, edtech, healthcare, deep tech, and semiconductors.

🤖 AI is a friend - Infosys founders N.R. Narayana Murthy and S. Gopalakrishnan are optimistic about GenAI, viewing it as a productivity enhancer and problem solver. They dismiss job loss concerns, referencing technology's job creation in banking. While acknowledging misuse risks, they stress the need for an entrepreneurial ecosystem, open dialogue, and youth involvement. Principles they applied at Infosys. Murthy underlines the importance of delivering value to customers, learning from competitors, and facilitating entrepreneurs. He believes this can put India on par with China's tech capabilities. They advocate for responsible Gen AI adoption for economic growth.

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• In a first, Indian pilot Gopi Thotakura takes space tour on Jeff Bezos' Blue Origin flight.

• India issues first set of citizenship certificates under new CAA rules, 14 get Indian nationality.

• Lok Sabha Election 2024 Phase 5: 49 seats up for grabs In Phase 5 across 6 states and 2 union territories.

• Zerodha, PW, Cars24, EaseMyTrip, and others commit to joining govt-backed ONDC.

• Delhivery announces drone research plan as revenue grows, loss narrows in Q4.

• Indian authorities seize $1.1B in cash, drugs In election.

• After President Biden's ‘xenophobic’ remark, US makes U-turn, calls India ‘vibrant democracy’

🍿 Entertainment, Entertainment, Entertainment

• IPL weekend roundup:

  • LSG won by 18 runs against MI;

  • RCB won by 27 runs against CSK;

  • SRH won by 4 wickets against PBKS;

  • RCB won by 47 runs against DC; and

  • CSK is displaced from the top 3 since last week: KKR leads, SRH and RR follow in second and third place respectively. IPL leaderboard here.

• Tennis roundup:

  • Iga Swiatek stays winning and beats Aryna Sabalenka to win her third Rome title.

  • Alexander Zverev beats Nicolas Jarry to claim second Rome Open title.

  • Britain's Emma Raducanu withdrew from the French Open, just 24 hours before qualifying was due to begin.

  • Sumit Nagal and Rohan Bopanna are top Indian players in action at the French Open.

  • The loveliest GOATs of tennis, Roger Federer and Rafael Nadal, star in the latest Louis Vuitton campaign shot by Annie Leibovitz and take the internet and our hearts by storm.

• India legend Sunil Chhetri to retire from international football on June 6th.

• Oleksandr Usyk becomes boxing's first four-belt undisputed heavyweight champion after defeating Tyson Fury.

• Manchester City win unprecedented fourth successive Premier League title.

• Shuttlers Sukant Kadam, Tarun, and Suhas qualify for the Paris Paralympics.

• Kiara Advani stuns in her first Cannes red carpet. An overview of the Cannes so far here.

• Chris Hemsworth and Anya Taylor-Joy‘s Furiosa: A Mad Max Saga opens to ~2.5-star rating and positive reviews.

• Francis Ford Coppola’s science fiction drama, Megalopolis, starring Adam Driver premiers in competition at the 77th Cannes Film Festival and opens to rave reviews.

• TW: Sean Diddy apologises after the video of him abusing his ex-girlfriend, Cassie goes viral. Note: if you need help, please call the domestic violence hotline at 7827170170 or 1800 212 9131. Other resources here and here.