Welcome to Top of the Morning by Mint, your weekday newscast that brings you five major stories from the world of business. It's Friday, April 5, 2024. My name is Nelson John. Let's get started:

Indian equity markets surged on Thursday. Nifty and Sensex increased by around 0.4 percent each.

IT companies had a tepid financial year. A lukewarm ending in the fourth and final quarter has resulted in decline in revenue and mediocre profit margins. Mint's tech writer Shovik Das and IT correspondent Jas Bardia took a deep dive into the results of six of India's top IT companies: TCL, HCL, Infosys, Wipro, Tech Mahindra, and LTI Mindtree. Analyst estimates and projections don't paint a pretty picture, as the financials are likely to remain flat or go down in some instances. Recovery is also likely to be slow, Shouvik and Jas write. While we won't know this for sure till these companies release their quarterly and annual reports, the expectations are low from India's IT sector.

https://blankpaper.htdigital.in/dash/story/11712234575918

The central government decides how much money every state will receive — a process called financial devolution. Well, the states in southern India aren't happy with their share. That’s because Karnataka, Kerala and Tamil Nadu receive far less from the divisible pool of taxes than UP or Bihar. In the last couple few months, leaders from Kerala, Tamil Nadu, and Karnataka have publicly protested against this new fissure that’s emerged in India’s federal structure. It has also become the biggest campaigning point for regional parties, as the general elections draw closer. Mint's longform writer N. Madhavan examines if constitutional federalism is alive in 2024, and speaks to bureaucrats and economists to offer a possible solution for this conundrum.

https://www.livemint.com/politics/tax-divide-why-are-southern-states-upset-11712235311609.html

Land and property taxes are a huge revenue stream for most states. In 2023, a boom in the sale of houses also led to widespread buying of land. Top developers are buying land at record prices after being bankrolled by the public markets and healthy cash flow. An acre of land now costs around 16.5 crore rupees on average in India, reports Mint's Madhurima Nandy. Growing demand for homes will ultimately result in national and regional builders buying up more land, Madhurima explains.

If you've taken a Vistara flight this week you may have achieved a rare feat. Vistara flights have been getting cancelled en masse: every day, at least 50 of them have been cancelled due to unavailability of pilots. These pilots have been calling in sick as a form of protest against the Air India-Vistara merger. Under the transition, Vistara pilots will get a fixed salary only for 40 hours of flying a month, instead of the 70 hours they had earlier. Two major pilot unions, including one that only has pilots from Air India, wrote to the Tata Group chairman N. Chandrasekaran about the merger, as well as other systemic issues. These pilots want further conversations to smoothen their deal with the airline, reports Mint’s aviation correspondent Anu Sharma. With fewer Vistaras flying in the air, any further delay in returning to full scale operations might shoot up ticket prices for consumers.

Hiring can be a delicate and complex process, especially for organisations that are driven by strong work culture. But for senior level hiring across corporate India, it's more difficult than ever. Companies and candidates are now taking longer to make a decision — turning any hire into a 6-month process or longer. Until last year, this process usually took up to 3 months on average. Devina Sengupta, Mint's HR and workplaces reporter, speaks to executive search firms to find that there’s friction on both sides of the equation . Moreover, companies aren't doling out huge raises for potential hires to jump ship, and are taking a longer time to vet their candidates. With both sides in a standoff, this process is now longer than ever, headhunters told Devina.

We'd love to hear your feedback on this podcast. Let us know by writing to us at feedback@livemint.com. You may send us feedback, tips or anything that you feel we should be covering from your vantage point in the world of business and finance.

We'll be back next week with a fresh episode of Top of the Morning. Have a nice weekend!

Show notes:

The one bright star in a bleak year for IT

Tax divide: Why are southern states upset?

Land ahoy: Will the buying craze continue in FY25?

Air India pilots write to Tata chairman, say Vistara crisis ‘systemic’

Wary firms, candidates on fence slow top-level hiring