🇮🇳 India’s GDP Hits $4 Trillion—Germany, You’re Next

☕ Good Morning, Masala Crew!

It’s Monday, May 26, and while the US is off grilling burgers for Memorial Day, Indian markets are marinating in global volatility, FII withdrawals, and fresh economic milestones. From Zepto's spicy boardroom drama to Tata's luxury leap in the Northeast, this newsletter is brewed strong and served hot.

Let’s stir up the top stories of the day 📉🕵️‍♂️

☕ Chai Shots

• 🚑 Zepto Swipes Back at Rumors: Co-founder Aadit Palicha accused a rival CFO of pushing fake financials and fueling a bot-led smear campaign online. He doubled down on Zepto's solid fundamentals, citing a 3x jump in gross order value, a 20-point EBITDA swing, and a ₹7,445 crore cash pile.

• 🚗 UP’s Road Blitz for 2025-26: The Yogi government is laying down a massive ₹6,124 crore to build 62 new ring roads, flyovers, and bypasses across high-traffic zones. The plan targets areas with populations over 1 lakh to ease congestion and boost industrial connectivity.

• 💸 ED Turns Heat on Jaypee Group: Enforcement Directorate officials raided 15 properties linked to Jaypee Infratech and its affiliates, seizing ₹1.7 crore in cash and multiple property documents. The crackdown stems from allegations of large-scale fraud and misleading homebuyers in projects like Jaypee Wishtown.

• 🏨 Tata’s Palace Push in the Northeast: IHCL (Tata's hospitality arm) is investing ₹2,500 crore to expand its hotel portfolio to 30 properties by 2030 across Northeast India. From Taj Vivanta in Tawang to a palace hotel in Agartala, the luxury brand is betting big on tourism and tribal talent.

• 💼 Big Brew Preview: India has officially surpassed Japan to become the world’s 4th largest economy with a $4 trillion GDP. The next stop? Germany. More on this desi dominance in the Big Brew below ☕

📈 Market Masala

• 💲 Sectoral Snapshot: Realty and metal stocks outperformed for the second week in a row, but auto, FMCG, IT, and consumer durables dragged indices down. Defence stocks kept shining on continued order optimism.

🔭 Looking Ahead

• 🏦 RBI’s record ₹2.7 lakh crore dividend should be digested by the markets on Monday.

• 📉 April industrial production and Q4 GDP numbers drop May 28—watch this space for economic cues.

• 🌦️ Monsoon tracker goes live—early rains could stir up agri and FMCG stocks.

• 📅 May derivatives expiry and last Q4 earnings (IRCTC, Aurobindo, Bajaj Auto) may add volatility.

🌍 Global Masala

• 🌎 Markets on Edge: The S&P 500, Nasdaq, and Dow all dropped ~2.5% last week as Trump’s tariff tweets rattled investors. Rising bond yields and deficit fears pushed the 10-year Treasury yield past 4.6%, the highest since February.

• 💊 Fed's Favorite Inflation Gauge Drops Friday: The PCE index, a key indicator of inflation used by the US Fed, will be released Friday. This could shape future rate moves, especially amid sticky inflation and trade chaos.

• 🇩🇪 EU Caught in Tariff Crossfire: Trump extended his EU tariff deadline to July 9 after threatening 50% levies. Germany’s finance minister warned the US that both sides need a joint solution to avoid economic self-harm.

• 🇰🇷 South Korea's Lee Seeks Trade Talk Extension: Presidential frontrunner Lee Jae-myung wants to delay the June 1 tariff deadline with the US, arguing that diplomacy shouldn’t feel like "plunder."

🔭 Looking at the Week Ahead

• 🧾 Nvidia, Salesforce, and Costco earnings in the U.S.

• 🇺🇸 Fed’s PCE inflation data and FOMC minutes due

• 🌐 Updates expected on U.S.-EU and U.S.-South Korea tariff negotiations

☕ The Big Brew: India Dethrones Japan to Become World’s 4th Largest Economy

✨ India has officially leapfrogged Japan to claim the #4 spot in the global economic rankings with a GDP of $4 trillion. The only countries ahead now? The US, China, and Germany.

🏛️ What fueled this jump? A mix of policy reforms, robust domestic demand, and digital infrastructure that helped leapfrog the slowdown gripping other economies. According to NITI Aayog, India could overtake Germany within 3 years if current momentum holds.

🌎 Despite tariff threats, India remains a cost-efficient destination for global manufacturers. Asset monetization 2.0 is also coming this August, hinting at more fiscal firepower.

🧥 What does this mean?

• Investors could see a longer runway for growth across manufacturing, infra, and tech.

• India’s geopolitical clout will only get stronger, especially as the world looks for China+1.

• MSMEs may benefit from policy tailwinds and global outsourcing deals.

🚀 Startup Scoop

• 🚀 Schema Ventures Launches $20M Fund: Aarthi Ramamurthy, ex-Microsoft/Netflix exec and podcaster, has launched Schema Ventures to back early-stage "outsider" founders in industrial software, robotics, and logistics tech.

• 🧠 Recruiter Emails Exposed in Naukri App Flaw: Naukri.com, India’s biggest job platform, patched a bug in its mobile app that accidentally exposed recruiter email addresses via its API. Discovered by security researcher Lohith Gowda, the vulnerability could've led to phishing, spam, and data scraping. InfoEdge says there was no breach, and all fixes have been deployed. Still, it’s a reminder that even recruitment giants aren’t immune to digital slip-ups.

🧠 Chai Break Trivia

📝 Did you know that LIC smashed a Guinness World Record by selling over 5.88 lakh life insurance policies in just 24 hours? 🏆 This epic feat took place on January 20, 2025, powered by a force of 4.5 lakh+ LIC agents. The event, dubbed "Mad Million Day," set a new benchmark in insurance hustle and teamwork! 👏📄

🤔 What’s Brewing Next?

• 📆 Monthly expiry of May derivatives

• 💰 Final Q4 earnings: IRCTC, Bajaj Auto, Aurobindo Pharma

• 🌧️ Progress of monsoon and its market implications

• 📊 Global updates on Nvidia earnings, PCE inflation data, FOMC minutes, and Trump tariff deadlines

And that’s your Monday brew!

India’s on a roll, markets are moody, and the global tea is piping hot. Whether you’re trading, investing, or just sipping on headlines, Masala Chai’s got you covered. Until tomorrow—stay sharp, stay spicy! ☕🚀