🇮🇳 India leads amid global slowdown

Good morning. Hope you are all keeping well in the heat.

Stay cool, stay hydrated ☀️ 🍉 

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🇮🇳 India leads amid global slowdown

• 🗞️ Bite-sized summaries

  • 👨‍🎓 JP Morgan analyst crackdown

  • 🧑‍💻 Google voluntary buyouts

• 🧑‍🍳 What else is cookin’?

MARKETS

🇮🇳 India

• Indian shares ended mixed in a volatile session on Wednesday, as gains in banking and auto stocks were offset by weakness in IT and energy sectors. Broader market sentiment remained cautious, with investors weighing global cues and awaiting clarity on domestic policy measures from the new government.

🌍️ International

• US stocks ended lower, snapping a three-day winning streak as investors digested a softer-than-expected inflation reading and assessed the limited progress from US-China trade talks. Despite a cooler May consumer price index, which rose only 0.1% month-over-month, market sentiment was dampened by ongoing geopolitical tensions and a lack of concrete details in the latest trade agreement framework between Washington and Beijing.

GLOBAL MARKETS

🇮🇳 India leads amid global slowdown

The World Bank’s latest projections place India at the forefront of global economic growth, estimating a 6.3% GDP increase for FY 2025–26. While this is a slight reduction from its previous 6.7% forecast, India remains the fastest-growing major economy—outpacing China, the US, the EU, and Germany, all of which face pronounced slowdowns.

India’s resilience stems from multiple factors:

• Strong domestic consumption, fuelled by stable rural and urban demand.

• A favourable demographic dividend, with a young and expanding workforce.

• Increased government capital expenditure, with further potential hikes on the horizon.

• Supportive monetary policy, including recent rate cuts and a neutral policy stance by the RBI.

• Structural reforms in digital infrastructure and taxation—like Aadhaar, UPI, and GST—that have boosted formalisation and productivity, especially in MSMEs.

Global growth is weakening, with China expected to grow around 4.6%, and major Western economies like the US, EU, and Germany showing lackluster or near-zero forecasts. India stands out not just in numbers but also in momentum.

Despite the strong outlook, India must remain cautious. Heavy reliance on oil imports could strain inflation control. Additionally, a lagging export sector, especially in manufacturing, limits external earnings potential.

Overall: India's unique blend of demand-driven growth, policy backing, and structural reform has created a powerful economic engine. To sustain this lead, boosting exports and reducing import dependency will be crucial in the coming years.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

👨‍🎓 JP Morgan analyst crackdown - JPMorgan Chase has introduced a hardline policy for its incoming analyst class: accept or hold a job elsewhere before joining - or within the first 18 months - and face immediate termination. This zero‑tolerance stance, announced via a June 4 memo from global banking co-heads Filippo Gori and John Simmons, directly targets the growing “on-cycle” poaching by private equity firms. CEO Jamie Dimon criticised the practice as "unethical" and a conflict-of-interest involving sensitive information. To bolster retention, JPMorgan also shortened its analyst program to 2½ years with faster promotion to associate. The move underscores fierce competition for talent amid aggressive recruiting by PE firms.

🧑‍💻 Google voluntary buyouts - Google has launched a voluntary exit program for U.S.- based employees across several core divisions - including Search, Ads, central engineering, marketing, research, and communications - offering severance packages to encourage staff to leave voluntarily. Concurrently, Google is tightening its hybrid work policy, requiring remote staff within 50 miles of offices to return to in-person schedules. This move supports Google's broader strategy to streamline headcount and reallocate resources toward ambitious AI and infrastructure investments, in the context of ongoing regulatory and antitrust pressures.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Elon Musk called Trump before posting regret over online feud.

• A deal to de-escalate trade tensions between China and the U.S. is done.

• Paytm shares crash 10% as Finance Ministry dismisses MDR speculation.

• US on-site openings shrink for techies as IT hits pause button.