🏥 India's GCC wave

Good morning. Daniil Medvedev earned $1.5M for his 68-minute loss to Jannik Sinner at the Six Kings Slam.

That translates to $22,058.82 per minute aka $367.65 per second 🤑 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🏥 India's GCC wave

• 📱 Gen Z's economic power in India

• 🗞️ Bite-sized summaries

  • ✈️ Airports on high alert

  • 💰️ Boeing in financial trouble?

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian equity markets faced a downturn. Key sectors like Auto and IT declined over 1%, contributing to a bearish sentiment driven by fears of potential earnings downgrades. Despite this, stocks like HDFC Life and Dr Reddy's showed gains, highlighting mixed market dynamics.

🌍️ International

• The Dow Jones Industrial Average and S&P 500 closed higher on Wednesday, driven by strong bank earnings. Morgan Stanley's shares rose 6.7% after reporting robust profits, while other financial stocks also gained. The Nasdaq Composite dipped slightly due to declines in tech giants. Overall, the market showed resilience, with small-cap stocks outperforming larger counterparts

BUSINESS

🏥 India's GCC wave

Indian corporations are joining the global capability centre (GCC) wave, traditionally led by multinational companies, to enhance their technology capabilities and streamline operations.

Major companies like Reliance Industries, Adani Group, Dr. Reddy’s, and Bank of Baroda have set up GCCs or similar facilities recently.

What’s the goal? These centres, often labelled as technology hubs or innovation labs, aim to centralize services such as finance, IT, and human resources, ensuring efficiency and avoiding duplication of resources.

The shift highlights the increasing importance of centralised tech strategies for Indian firms.

• Arindam Sen from EY India notes that these facilities help large companies adopt a leaner model across sectors.

• Companies are increasingly setting up centers in cities like Coimbatore and Ahmedabad, benefiting from lower costs, state incentives, and access to skilled talent.

• Adani Enterprises recently established Adani GCC Pvt Ltd to provide shared services to its group companies, while Dr. Reddy's and Reliance are expanding their R&D efforts domestically.

Overall: India is a global leader in the GCC space, hosting over 1,700 centres that employ nearly 1.9 million people.

By 2030, the number of GCCs is expected to rise to 2,200, employing up to 2.8 million individuals and contributing significantly to the country’s IT sector revenue.

However, local companies face challenges, as they may not benefit from the cost savings that drive multinational firms to India.

To remain competitive, Indian firms must focus on deploying technology at scale to boost productivity and achieve cost-efficiency.

Read more: Economic Times

GEOPOLITICS

📱 Gen Z's economic power in India

A recent report from Snap Inc. and Boston Consulting Group (BCG) revealed that Gen Z (aka Zoomers aka those born between 1997 – 2012) in India, comprising 377 million individuals, is set to make a significant mark on the economy.

Currently, this generation wields a collective spending power of $860B, with direct spending at $200B and influenced spending at $660B. By 2025, their direct spending is expected to soar to $250B as more Gen Z members enter the workforce.

They drive a remarkable 43% of India’s total consumer expenditure, influencing various sectors such as:

• Footwear: 50% of their spending

• Dining and Out-of-Home Entertainment: 48%

• Fashion and Lifestyle: 47%

Some insights:

• The generation relies heavily on their social circles for purchasing decisions, with 70% valuing input from close friends and family.

• Their shopping behavior is a unique blend of online and offline experiences—often referred to as "phygital."

• They engage with social media creators for inspiration, making authenticity and relatability key factors in their buying choices.

Overall: Gen Z's direct spending is projected to reach an astounding $1.8 Tr. in the coming years, highlighting their growing economic influence. Despite this potential, only a small percentage of businesses actively engage with this demographic. As the consumer landscape evolves, understanding and connecting with Gen Z will be crucial for Indian brands aiming to thrive in the future.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

✈️ Airports on high alert - In the past three days, 19 flights received bomb threats, leading to multiple diversions and emergency landings, though all turned out to be hoaxes. On Wednesday, seven flights, including those from IndiGo, SpiceJet, and Akasa Air, were impacted. Authorities are investigating the threats, which were relayed via social media. Affected flights included an IndiGo flight diverted to Muscat and a SpiceJet flight from Leh to Delhi. Officials are taking action, but the ongoing investigation limits further details. These incidents have raised concerns, with a parliamentary committee addressing the issue on Wednesday.

💰️ Boeing in financial trouble? Boeing announced plans to raise up to $25B in shares or debt over the next three years to strengthen its balance sheet amidst ongoing challenges, including a machinist strike and program delays. The company has also secured a $10B credit agreement with banks to increase liquidity. Boeing, whose shares are down 42% this year, faces potential credit rating downgrades, prompting it to prioritize equity raising. Analysts expect Boeing to raise $10-15B initially. The machinist strike is costing the company over $1B monthly, and Boeing plans to lay off 17,000 employees to reduce costs.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Mobile phones won't be allowed inside polling booths in Mumbai during voting.

• China emerges as India's top import source during April-September 2024, according to Commerce Ministry data.

• Zelenskyy outlines his ‘victory plan’ to Ukraine’s lawmakers, including a call to join NATO.

• UK inflation falls to lowest level in over 3 years, cementing expectations for another rate cut.

• Generative AI startups get 40% of all VC investment in cloud amid ChatGPT buzz.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Vir Das announces new show with Netflix.

• Liam Payne, Former One Direction Member, passes away at 31.