India’s IT Stocks Plunge | Gold’s Surge Raises India’s SGB Liabilities

It's Thursday, March 13th, 2025. This is Nelson John, let's get started.  1. Saudi’s Riyadh Air Eyes India for Expansion Riyadh Air, Saudi Arabia’s new airline, sees India as a key market, with CEO Tony Douglas calling it “super important.” Set to begin operations this year, the airline is in early talks with Air India and IndiGo for potential partnerships. Riyadh Air plans to connect Saudi Arabia to over 100 destinations by 2030 and has already partnered with Singapore Airlines, Turkish Airlines, Virgin Atlantic, and Delta. With a fleet of Boeing 787-9 Dreamliners and Airbus A321 neos, the airline is tapping into India’s booming aviation market, where Indians form the second-largest expat group in Saudi Arabia. Notably, 16% of Riyadh Air’s staff are Indian. 2. Estée Lauder, DPIIT to Boost India’s Beauty Startups India’s beauty and personal care startups are set for a major push as the Department for Promotion of Industry and Internal Trade (DPIIT) partners with US cosmetics giant Estée Lauder. Through its BEAUTY&YOU India initiative, the collaboration will offer funding, mentorship, and global industry access, with a special focus on women-led startups. India’s beauty market is expected to grow from $7.43 billion in 2025 to $9.69 billion by 2034. “This is a first-of-its-kind initiative,” said Sanjiv, Joint Secretary, DPIIT. With India boasting the world’s third-largest startup ecosystem, this partnership could drive innovation and scaling opportunities for beauty entrepreneurs. 3. India’s IT Stocks Plunge Amid Growth Concerns India’s top IT firms—TCS, Infosys, HCL Tech, Wipro, and Tech Mahindra—saw their stocks fall up to 4.28%, erasing ₹75,414 crore in market value. Brokerages Morgan Stanley, Kotak Institutional Equities, and Motilal Oswal flagged concerns over sluggish IT spending recovery in FY26-27. High interest rates, geopolitical tensions, and vendor consolidation are slowing discretionary tech spending. “We see a transition phase where IT spending is reprioritized, moderating growth,” noted Morgan Stanley analysts. Despite these headwinds, Nasscom projects the IT industry to cross $300 billion by March 2026, implying 6.2% annual growth, though analysts remain skeptical. 4. Gold’s Surge Raises India’s Sovereign Gold Bond Liabilities As gold prices soar and equities struggle, the Indian government faces rising liabilities on its Sovereign Gold Bond (SGB) scheme, which ties payouts to gold’s market price. Gold has outperformed equities since 2015, rising 3.46 times its value, while Nifty 50 has declined. ₹2.39 trillion has already been paid under gold-related schemes since 2017, with another ₹1.4 trillion budgeted for 2024-26. With 132,000 kg of gold equivalent set for payout between 2025 and 2032, a prolonged gold rally could strain government finances, making this a key issue for policymakers and investors. 5. Wendy’s, Rebel Foods to Open 500 Locations in India by 2028 Rebel Foods will invest ₹100-150 crore to expand Wendy’s footprint in India, targeting 500 locations by 2028. The expansion leans heavily on cloud kitchens, which will account for 70% of new openings. Currently, Wendy’s operates in 200 locations, with 185 cloud kitchens and 15 offline stores. India’s quick-service restaurant (QSR) market is growing at a 23% CAGR, but profitability remains challenging due to inflation and competition. Rebel Foods CEO Ankush Grover expects the IPL season to boost sales. Rebel Foods, which runs over 450 cloud kitchens across India, the Middle East, and the UK, recently raised $210 million from Temasek to fuel expansion. Learn more about your ad choices. Visit megaphone.fm/adchoices