Monthly Archives: October 2024

Hyundai Motor India Share to List Today After IPO Amid Complaints From Retail Investors

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Hyundai Motor India, the Indian arm of South Korea’s automotive giant, is poised to make its stock market debut this week following a historic Initial Public Offering (IPO), officials confirmed on Monday.

The company’s shares will begin trading on Tuesday, after successfully concluding last week’s $3.3 billion IPO, the largest ever in India’s market history. This debut surpasses the previous record held by the Life Insurance Corporation of India (LIC), which raised $2.5 billion in its 2022 IPO.

The price band for Hyundai Motor India’s IPO has been set between ₹1,865 and ₹1,960 per share. As a pure offer-for-sale (OFS), all proceeds will go to the promoter company.

However, several retail applicants are upset over non-allocation of shares despite half of the category allocaton was applied.

India plays a crucial role in Hyundai’s global production strategy. In 2023 alone, the company produced 765,000 vehicles in the country. Hyundai Motor India stands as the second-largest carmaker in India, following Maruti Suzuki. The listing is expected to boost its local market competitiveness.

In recent years, Hyundai has ramped up its investments in India, acquiring General Motors’ manufacturing plant in Pune. The facility is undergoing modernization and is expected to reach a production capacity of over 200,000 units annually once operational in the latter half of 2025. This will bring Hyundai Motor India’s total production capacity to 1 million vehicles when combined with its Chennai plant.

Hyundai is also making strides in the electric vehicle (EV) market. By 2030, the company plans to install 485 EV charging stations across India and has partnered with Exide Energy to bolster its battery capabilities. The company will launch its first locally-produced electric SUV, the Creta EV, in 2025, followed by four more EV models by 2030 to meet India’s growing demand for electric vehicles.

Indian Shares Poised for Higher Opening as Key Earnings Reports Awaited

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Indian stock markets are expected to open slightly higher on Monday, with investor attention focused on earnings reports from major players like HDFC Bank, Kotak Mahindra Bank, and Tech Mahindra.

As of 07:14 a.m. IST, the Gift Nifty stood at 24,927.5, indicating that the NSE Nifty 50 index may open marginally above its last close of 24,854.05 on Friday. Both the NSE Nifty 50 and S&P BSE Sensex had posted losses in the previous week, marking the third consecutive week of declines.

Analysts attributed the recent market downturn to sustained foreign outflows as investors shifted focus toward China, where stimulus measures and cheaper stock valuations are drawing attention. Additionally, the ongoing mixed corporate earnings season has added to market caution.

The reaction to HDFC Bank’s earnings, a key component of India’s benchmark indexes, will likely influence Monday’s trading. The private lender reported a higher-than-expected standalone net profit for the September quarter and plans to reduce its loan-to-deposit ratio over the next two to three years.

Meanwhile, Kotak Mahindra Bank may face selling pressure due to a sequential margin contraction and deterioration in asset quality for the second quarter. Tech Mahindra, which reported revenue growth over the weekend, will also be closely watched by market participants.

Foreign institutional investors have been net sellers of Indian equities for 15 consecutive sessions, offloading shares worth ₹54.86 billion ($652.7 million) on Friday. October is shaping up to be the worst month for the Nifty since September 2022, with the index down 3.7% so far.

Stocks to Watch:

  • JM Financial: The Reserve Bank of India has lifted restrictions on one of its units.
  • Tata Steel: The steelmaker signed a contract with Italy’s Tenova for an electric arc furnace at its Port Talbot plant in Wales.
  • JSW Steel: JSW’s joint venture with JFE Steel Corp announced a deal to acquire thyssenkrupp Electrical Steel India for $482.1 million.

This Week’s IPOs: Waaree Energies Likely to Buzz Market, Three Other Listings Scheduled

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Despite a recent downturn in the Indian equity market, the IPO segment is buzzing with activity as nine new public issues worth ₹10,985 crore are set to open for retail investors from October 21 to 25.

Among these, Waaree Energies’ IPO will be the first to kick off on October 21, offering shares at a price band of ₹1,427 to ₹1,503 each. The solar photovoltaic module manufacturer aims to raise ₹4,321 crore, with ₹3,600 crore as fresh issue and ₹721.44 crore through an offer-for-sale (OFS) of 48 lakh shares.

Promoters Waaree Sustainable Finance and Chandurkar Investment will participate in the OFS. Ahead of the IPO, the company secured ₹1,277 crore from anchor investors on October 18. Competitors in the market include Premier Energies and Websol Energy.

Additionally, the IPO for Deepak Builders and Engineers India will also open on October 21, with a size of ₹260 crore. It consists of a fresh issue of ₹217 crore and an OFS worth ₹42.83 crore. Prior to the IPO, ₹78 crore was raised from five anchor investors.

Godavari Biorefineries will open its ₹555 crore IPO from October 23 to 25. The offering will feature a fresh issue of ₹325 crore and an OFS of 65.26 lakh shares, valued at ₹229.75 crore, from promoters and investor Mandala Capital AG. The price band for the shares is set at ₹334 to ₹352.

Afcons Infrastructure, a Shapoorji Pallonji Group company, will launch its IPO on October 25. The company seeks to raise ₹5,430 crore, with ₹1,250 crore through a fresh issue and ₹4,180 crore via an OFS. The price band will be revealed on October 21.

Several companies in the SME segment will also be offering IPOs next week, including Premium Plast, Danish Power, United Heat Transfer, OBSC Perfection, and Usha Financial Services.

On the listing front, Hyundai Motor India’s historic ₹27,870 crore IPO, the largest ever in India, will list on October 22. Shares of Lakshya Powertech and Freshra Agro Exports from the SME segment are scheduled to begin trading on October 23 and 24, respectively.

SIPs Over Cars: Sourav Dutta’s Financial Tip Ignites Debate

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In an era where financial literacy is increasingly becoming a necessity, a recent online debate has sparked interest and controversy in equal measure. The debate was initiated by Sourav Dutta, an investor and trader, who took to social media platform X (formerly Twitter) to share his financial advice.

Dutta suggested that people should consider investing in Systematic Investment Plans (SIPs) rather than purchasing a car. His post, shared on October 15, 2024, quickly gained traction, accumulating over a million views and sparking a widespread discussion.

Dutta’s argument was based on a hypothetical scenario involving a character named Ravi. According to Dutta, Ravi was burdened with a monthly EMI of ₹20,000 for five years after purchasing a car.

Dutta proposed that Ravi would have been in a better financial position had he invested the same amount into mutual fund SIPs. He explained that an SIP of ₹20,000 per month in Nifty ETF would grow to a bank balance of ₹17 lakh at the end of five years. In contrast, a car, which would have cost ₹10 lakh, would depreciate to a value of ₹4 lakh by 2030.

Life Choices and Financial Planning

Rs 20000/mo is the 5 year EMI of a 10L car for Ravi. Instead, Ravi puts ₹20000/mo for 5 years in Nifty ETF SIP. First decision gives him a car worth ₹4L in 2030. Second decision gives him ₹17L of bank balance in 2030. Life is about the choices we make, Dutta wrote.

However, Dutta’s advice was met with mixed reactions. While some agreed with his financial perspective, others argued that life is not solely about investment and financial returns. They emphasized the value of enjoying life and the conveniences a car provides, such as family time and emergency transportation.

One user commented, Life is also short for some enjoyment. Look beyond SIP and market returns. And enjoy life for yourself and for the family you got. This sentiment was echoed by others who pointed out that not everyone can forgo the immediate benefits of car ownership for future financial gains.

Another user argued, “Not everything in life is about saving money. Also, if everyone thinks like Ravi, then the economy won’t grow, and the stock market won’t perform, and Ravi will not even make FD returns!”

This comment highlights the broader economic implications of Dutta’s advice, suggesting that if everyone were to follow this advice, it could potentially stagnate economic growth.

Practicality Experiences

The debate took an interesting turn when users began to question the practicality of Dutta’s advice. One user quipped, The problem here is that, when Ravi wants to go somewhere with his family at his convenient time without bargaining with the Ola or Uber fellow, he can’t print the ETF papers, sit over it and ask it to fly.

It will not take him anywhere. This comment underscores the limitations of relying solely on public transportation or ride-hailing services, and the convenience and independence that owning a car provides.

In response to the criticism, Dutta argued that the expenses on petrol for the car would have been similar to cab fares over five years, and the difference in the end would still be a significant amount in favor of investing in SIPs (Rs 13 lakh more in savings).

This debate is reminiscent of similar discussions in the past where financial advisors have advocated for investment over consumption.

Infosys Q2 Profit Rises, Raises Revenue Outlook

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Infosys posted a 4.7% rise in net profit for Q2 FY25, hitting Rs 6,506 crore, up from Rs 6,212 crore a year ago. Revenue grew 2.9% year-on-year, reaching Rs 40,986 crore. The company raised its full-year revenue growth forecast to 3.75-4.5% and announced a 16.7% interim dividend increase to Rs 21 per share, payable on November 8.

Strong performance was driven by strategic collaborations with Metro Bank, Proximus, TDC Net, and Posti. Infosys CFO Jayesh Sanghrajka stressed a focus on revenue growth and margins, while CEO Salil Parekh highlighted broad-based growth across sectors.

The company’s net profit for the quarter reached ₹6,506 crore, up from ₹6,212 crore in the same period last year. Meanwhile, its revenue for the quarter stood at ₹40,986 crore, marking a 2.9% year-on-year growth. Quarter-on-quarter, the company saw over 4% growth, with revenue climbing from ₹38,994 crore in the previous quarter.

The company has raised its full-year revenue growth guidance to 3.75-4.5%, showing optimism for the coming months. This increase in guidance comes as Infosys continues to leverage new strategic partnerships and strengthen its service offerings across key sectors.

Infosys also declared an interim dividend of ₹21 per share, reflecting a 16.7% hike compared to last year’s dividend. The payout is scheduled for November 8, underscoring Infosys’ strong financial position and commitment to rewarding its shareholders.

Broad-Based Growth and Margin Focus

During the first half of FY25, Infosys reported a year-over-year revenue growth of 2.9% in constant currency, with an operating margin of 21.1% for the second quarter. Infosys CEO Salil Parekh attributed this success to the company’s broad-based growth across various sectors and geographies, noting that the company saw 3.1% quarter-on-quarter growth in constant currency terms.

“We achieved strong growth in financial services, which was a key contributor to our performance this quarter,” Parekh said. This growth, along with steady client wins, has helped Infosys maintain momentum despite a challenging global economic environment.

Chief Financial Officer Jayesh Sanghrajka highlighted the company’s focus on accelerating revenue growth while maintaining a sharp focus on margin performance. “Our operating margin for the quarter was at 21.1%, driven by value-based pricing and efficient utilization of resources,” Sanghrajka said. He also pointed to the company’s strong cash generation, with free cash flow growing 25.2% year-on-year to reach $839 million. For the second consecutive quarter, Infosys achieved over 100% free cash flow conversion to net profits.

Infosys’ employee headcount rose by 2,456 in the quarter, bringing the total to 3,17,788. The company also approved the merger of WongDoody Inc., Blue Acorn iCi Inc., Outbox Systems Inc. (d.b.a. Simplus), and Kaleidoscope Animations Inc. into Infosys Nova Holdings LLC, further strengthening its business capabilities.

Strategic Collaborations and Future Outlook

Infosys continues to drive growth through strategic collaborations with key global players. The company entered a long-term collaboration with Metro Bank to enhance its IT and support functions, while also transforming the bank’s business operations. Metro Bank CEO Daniel Frumkin said the partnership would help the bank become more profitable and scalable in the long run.

The company also announced a collaboration with Proximus, a Belgian telecommunications provider, to explore new business opportunities. Proximus’ Chief Digital and IT Officer, Antonietta Mastroianni, welcomed the renewed partnership, highlighting its potential to unlock new opportunities.

Another key collaboration came with TDC Net, Denmark’s largest telecom infrastructure company. Infosys is set to help TDC Net transform into a more customer-centric technology company. TDC Net’s Chief Technology and Information Officer, Campbell Fraser, expressed confidence in Infosys’ ability to support their digital transformation.

Infosys also renewed its collaboration with Finland’s postal service, Posti, extending their partnership for another seven years to enhance customer experience and operational efficiency. Petteri Naulapää, Posti’s CIO and SVP, praised the ongoing collaboration and its role in driving innovation.

With these strategic partnerships and a strong financial outlook, Infosys is well-positioned for continued growth in the second half of the fiscal year.

 

New Chip Helps Diagnose Heart Attacks Based on Blood Test in Minutes

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A revolutionary chip-based blood test, developed by researchers at Johns Hopkins University, promises to diagnose heart attacks within minutes, providing a faster and more accurate alternative to current methods. The test, which delivers results in just five to seven minutes, could potentially be used by first responders and even in home settings.

Led by Peng Zheng, an assistant research scientist at Johns Hopkins, the team created a chip with an innovative nanostructured surface that enhances the detection of heart attack biomarkers in blood samples. “We were able to invent a new technology that can quickly and accurately establish if someone is having a heart attack,” Zheng said.

Published in the journal Advanced Science, the test uses Raman spectroscopy to amplify electric and magnetic signals on the chip’s surface. This allows the detection of even ultra-low concentrations of heart attack biomarkers within seconds, providing a level of sensitivity not possible with existing tests, which often take hours to deliver results.

The new tool is designed for quick diagnostic work in clinical settings but has the potential to be adapted for use in handheld devices. This could allow first responders in the field or even individuals at home to perform tests, providing critical information when time is of the essence.

In addition to diagnosing heart attacks, the platform can be adapted for other uses, such as detecting cancer or infectious diseases. “We’re talking about speed, accuracy, and the ability to perform measurements outside of a hospital,” said senior author Ishan Barman, a bioengineer in the Department of Mechanical Engineering.

With significant commercial potential, the research team plans to refine the blood test and conduct larger clinical trials, bringing this life-saving technology closer to everyday use.

Bajaj Auto Reports 9% Net Profit Growth in Q2 FY25, Driven by Strong EV Sales

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Bajaj Auto on Wednesday announced a 9% rise in net profit for the July-September quarter (Q2 FY25), posting a net income of Rs 2,005 crore, driven by robust performance in its green energy segment. The company’s electric vehicle (EV) sales surged, contributing significantly to its overall growth.

Adjusted for exceptional deferred tax provisions, Bajaj Auto’s profit after tax (PAT) reached Rs 2,216 crore, marking a 21% year-on-year increase. The company explained that the reported PAT of Rs 2,005 crore accounted for an additional provision of Rs 211 crore due to the impact of the Finance Act, 2024, which withdrew indexation and changed tax rates on investment income.

Revenue from operations grew 22% year-on-year, hitting Rs 13,000 crore for the quarter. Bajaj Auto’s stock responded positively, closing 0.88% higher at Rs 11,622.5 per share on Wednesday.

Electric Vehicles Lead the Charge

Bajaj Auto’s green energy portfolio hit new milestones, with the sale of 1 lakh electric vehicles (EVs) in September alone. Of these, 70,000 were Chetak electric scooters, which captured a 21% market share that month. The company’s portfolio of electric and CNG vehicles, spanning both two-wheelers (2W) and three-wheelers (3W), now contributes 40% of its total domestic revenues.

The company noted strong double-digit growth in its motorcycle and commercial vehicle segments, largely fueled by the near-tripling of electric scooter sales. The Pulsar brand continued to perform well, achieving its highest-ever quarterly sales of 1.1 lakh units.

Future Prospects

Bajaj Auto is also making strides in the electric three-wheeler (e3W) market, where it aims to replicate its dominance in the internal combustion engine (ICE) segment. The company reported that its market share in the e3W segment doubled from last year, reaching 35% by the end of the quarter.

The company remains in a strong financial position, with surplus cash reserves of Rs 16,392 crore at the end of Q2. This follows strategic investments of Rs 1,200 crore, primarily directed towards Bajaj Auto Credit Ltd. and EV-related capital expenditures, as well as a Rs 2,233 crore dividend payout in the first half of FY25.

With growing demand for electric vehicles and a strong financial base, Bajaj Auto is well-positioned to capitalize on the expanding green energy market and continue its upward trajectory.

BharatPe Group Reports Rs 209 Crore EBITDA Loss in FY24, Marks Key Turnaround

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Fintech firm BharatPe Group announced its financial results for FY 2023-24 on Wednesday, revealing a consolidated EBITDA loss (before share-based payment expense) of Rs 209 crore for the fiscal year. While still in the red, the company has significantly narrowed its losses compared to the Rs 826 crore EBITDA loss it posted in FY 2022-23, signaling a positive shift in its financial performance.

According to BharatPe, its revenue from operations saw a robust 39% year-on-year (YoY) growth, rising from Rs 1,029 crore in FY23 to Rs 1,426 crore in FY24. Additionally, the company managed to halve its consolidated loss before tax, which dropped from Rs 941 crore in FY23 to Rs 474 crore in FY24.

BharatPe’s growth was particularly notable in its merchant lending business. The company’s average merchant lending portfolio, fueled by loans originating through its platform, grew by 40% compared to the previous year. This growth underscores BharatPe’s expanding role in providing credit access to small and medium-sized businesses, a key driver of its business strategy.

The company also highlighted strong demand for its soundbox devices, a key product in BharatPe’s offerings that has gained significant traction in the market during FY24.

Reduced Cash Burn and Turn to Profitability

BharatPe reported a sharp reduction in its cash burn, cutting it by 85% on a YoY basis. This improved cash management, along with other operational efficiencies, played a crucial role in moving the company closer to profitability.

In a major milestone, BharatPe turned EBITDA positive in October 2024, marking a significant achievement for the fintech firm. Commenting on the financial performance, BharatPe CEO Nalin Negi said, “FY24 was a milestone year for us as BharatPe turned EBITDA positive. We also considerably reduced our cash burn, positioning ourselves to build a sustainable and profitable business.”

Negi attributed the company’s progress to strategic partnerships with financial institutions, which have expanded BharatPe’s lending capabilities. “We have been able to partner with renowned financial institutions to extend credit access to merchants, validating our business model,” Negi added.

New Focus Areas and Future Outlook

BharatPe continues to diversify its product offerings and strengthen its position in the competitive fintech landscape. Negi outlined the company’s future plans, which include expanding its lending vertical, launching new products across POS (point-of-sale) solutions, and scaling its soundbox devices. BharatPe is also ramping up efforts in its consumer payments vertical, further diversifying its revenue streams.

In line with this strategy, BharatPe rebranded its PostPe app, transitioning it into the broader BharatPe ecosystem, signaling its entry into the consumer payments space. This move represents the company’s intent to build a more integrated and user-centric financial platform.

Funding and Investor Backing

BharatPe has successfully raised over $583 million in equity to date, with backing from several prominent global investors. These include Peak XV Partners (formerly Sequoia Capital India), Ribbit Capital, Insight Partners, Amplo, Beenext, Coatue Management, Dragoneer Investment Group, Steadfast Capital, Steadview Capital, and Tiger Global.

The company’s robust funding and investor support reflect confidence in BharatPe’s business model and growth potential. With a focus on sustainable growth, the fintech firm aims to consolidate its position in the fast-growing Indian digital payments and lending market.

As BharatPe continues to drive innovation and expand its offerings, the company is on track to further strengthen its financial performance, setting the stage for sustained growth and profitability in the coming years.

L&T Technology Services Reports 2% Rise in Q2 Net Profit to ₹320 Crore

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L&T Technology Services Ltd (LTTS) posted a net profit of ₹320 crore for the second quarter of FY 2024-25, marking a 2% increase from ₹314 crore in the previous quarter. The IT services company’s performance was bolstered by steady growth in revenue and continued expansion in its core technology sectors.

According to the company’s exchange filing, LTTS recorded revenues of ₹2,573 crore for the July-September quarter, representing a 4.5% increase from ₹2,462 crore in the April-June quarter of the same fiscal year. In terms of dollar revenue, the company reported $307 million, up 6.5% year-on-year (YoY), demonstrating strong growth on the global front.

The company’s earnings before interest and taxes (EBIT) for the quarter rose by 1% to ₹388 crore. However, its EBITDA margin contracted slightly to 15.1%, reflecting some cost pressures despite the increase in revenue.

AI-Led Transformation

Amit Chadha, CEO and Managing Director of LTTS, expressed confidence in the company’s trajectory, driven by its strategic focus on larger deals and advanced technology transformations. “With our pipeline featuring large-sized deals focused on consolidation and technology-led transformations, we are optimistic about achieving our medium-term goal of reaching $2 billion in revenue with an EBIT margin of 17-18%,” Chadha said in a statement.

Chadha also highlighted the growing demand for artificial intelligence (AI) solutions, which is playing a pivotal role in winning contracts across various industry segments. “We are seeing increased momentum in AI-led deal discussions, and our portfolio of AI solutions and accelerators is enabling us to secure deals in our focus areas,” he added.

The company has filed a total of 165 patents in AI, underscoring its commitment to innovation. As of the end of Q2FY25, LTTS had a patent portfolio of 1,394, of which 877 were co-authored with customers, and 517 were filed independently by the company. This focus on AI and intellectual property is key to its competitive edge in the market.

Employee Strength and Dividend Announcement

LTTS reported a workforce of 23,698 employees as of September 30, reflecting its ongoing investment in talent to support its growth and expansion in advanced technologies.

In addition to its financial performance, LTTS also announced an interim dividend of ₹17 per equity share for its shareholders, amounting to a distribution of ₹179.9 crore. The record date for the dividend payment has been set for October 25, 2024.

Stock Performance

Shares of LTTS closed 0.72% higher at ₹5,356.9 apiece on the NSE, outperforming the broader market, where the Nifty 50 declined by 0.34%. The positive stock movement reflects investor confidence in the company’s strong quarterly results and its forward-looking growth strategy.

With its solid performance in Q2FY25, L&T Technology Services is well-positioned to capitalize on emerging technology trends such as AI and digital transformation. The company’s focus on innovation, robust deal pipeline, and commitment to delivering shareholder value are expected to sustain its growth momentum in the upcoming quarters.

Sensex Falls 318 Points as Auto, IT, and PSU Bank Stocks Drag Market

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Indian equity markets closed lower on Wednesday, with the BSE Sensex dropping 318.76 points, or 0.39%, to settle at 81,501.36, as pressure on auto, IT, and PSU banking stocks outweighed gains in other sectors. The broader NSE Nifty also slipped, ending the session at 24,971.30, down 86.05 points, or 0.34%.

Midcap and smallcap stocks displayed mixed performance. The Nifty Midcap 100 index declined by 141.40 points, or 0.24%, to close at 59,451.85, while the Nifty Smallcap 100 index managed to post a slight gain, closing at 19,304.90, up 2.85 points, or 0.01%. The Nifty Bank index, representing financial stocks, fell by 104.95 points, or 0.20%, ending at 51,801.05.

Auto, IT, and PSU Banks Under Pressure

Sectoral performance reflected a mixed bag, with some sectors showing resilience while others dragged the indices down. The rally was driven by gains in sectors such as financial services, real estate, energy, infrastructure, and oil & gas. However, the overall market sentiment remained subdued as key sectors like auto, IT, public sector banks (PSU), pharmaceuticals, fast-moving consumer goods (FMCG), and metals faced heavy selling pressure.

Despite the negative closing, market breadth indicated a more balanced scenario. On the BSE, 2,030 shares ended in the green, while 1,930 shares finished in the red. Additionally, 108 shares remained unchanged, indicating a somewhat neutral stance in the broader market.

Top Gainers and Losers

In the Sensex pack, a handful of stocks managed to defy the downward trend. Leading the gainers were HDFC Bank, Asian Paints, Bharti Airtel, and State Bank of India (SBI), all of which posted modest gains.

On the losing side, major stocks like Mahindra & Mahindra (M&M), Infosys, JSW Steel, Tata Motors, Titan, Kotak Mahindra, and ITC dragged the indices lower. Infosys and JSW Steel emerged as the biggest losers, weighing heavily on the Sensex.

FIIs and DIIs Activity

Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth ₹1,748.71 crore on Tuesday. This marked a consistent trend of selling by foreign investors, adding to the bearish sentiment in the market.

On the domestic front, however, Domestic Institutional Investors (DIIs) countered the FII sell-off by increasing their buying activity. DIIs bought equities worth ₹1,654.96 crore on the same day, providing some support to the market and preventing a deeper correction.

Market Sentiment 

Market experts pointed to a cautious trading atmosphere, with concerns over a potential downgrade in FY25 earnings growth affecting investor sentiment. Analysts noted that fears of a slowdown in earnings expansion during Q2FY25, due to weak demand and fluctuating input costs, have led to a negative bias in the market.

“Investors are wary of premium valuations, especially in light of the uncertain earnings outlook for the coming quarters,” said a market analyst. “With demand remaining tepid and volatility in raw material prices, earnings growth is expected to remain slow, which is impacting confidence in the market’s ability to sustain current valuations,” the expert added.

Gold Prices and Global Cues

Amidst the volatility in equity markets, gold prices saw a rise, with traders seeking safe-haven assets. On the Multi Commodity Exchange (MCX), gold prices surged by ₹350, reflecting the global uptick in gold prices. On the international front, Comex gold traded above $2,675, up 0.55%, as traders anticipated that the U.S. Federal Reserve would maintain its stance on interest rate cuts.

Global markets were also closely watching developments in the U.S. economy, with expectations that the Federal Reserve’s future monetary policies would continue to influence market behavior. The outlook for interest rates and inflation in major economies remains a crucial factor for both equity and commodity markets.

While sectors like financial services, energy, and real estate show some promise, weak performance in key areas like IT, auto, and PSU banks could weigh on overall market performance. Traders and investors are likely to remain cautious as they assess the evolving economic landscape both domestically and globally.

Reliance Industries to close Disney India acquisition by Q3 next year

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Reliance Industries Ltd is set to finalize its merger with Disney’s India operations by the close of Q3 FY25, forming India’s largest media conglomerate, valued at over ₹70,000 crore ($8.5 billion), according to regulatory filings.

With approvals from the Competition Commission of India (CCI) and the National Company Law Tribunal, Reliance Industries confirmed in its latest quarterly report that the regulatory hurdles for the merger have been cleared.

“The merger of TV18 Broadcast Ltd. (TV18) and e-Eighteen.com Ltd. (E18) with Network18 Media & Investments Ltd. (Network18) was sanctioned by the National Company Law Tribunal, Mumbai Bench, and became effective on October 3, 2024,” the company said in its Q2 results.

The companies are in the process of securing additional required approvals, with the “record date for determining the equity shareholders of TV18 and E18 entitled to receive Network18 equity shares set for October 16, 2024,” the report added.

On September 27, the Indian government approved the transfer of licenses for non-news TV channels from Reliance to Star India, a key step in the merger, according to reports.

Upon completion, Reliance and its affiliates will hold a 63.16% majority stake in the newly merged entity, while Walt Disney will retain a 36.84% shareholding. Reliance has committed to investing ₹11,500 crore ($1.4 billion) to boost the joint venture.

Nita Ambani will chair the new venture, with media honcho Uday Shankar as the vice-chair. The combined company will have two streaming platforms and 120 television channels, including renowned brands like Comedy Central, MTV, Nickelodeon, and Star network channels.

China’s Underground Lab Aims to Unlock Deepest Mysteries of Universe, Begins With Dark Matter

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China has launched a cutting-edge underground laboratory in a bold bid to unravel the universe’s greatest mysteries. The China Jinping Underground Laboratory (CJPL), buried 2,400 meters beneath Sichuan province, is the world’s deepest underground research facility. Its depth shields sensitive experiments from cosmic rays, creating optimal conditions to explore elusive phenomena like dark matter and neutrinos.

The lab’s primary focus is dark matter, which constitutes 85% of the universe’s mass but remains undetected. The next-gen PandaX experiment at CJPL aims to capture rare interactions between dark matter and normal particles. CJPL is also studying neutrinos—lightweight particles crucial to understanding cosmic processes.

China’s investment in CJPL highlights its ambition to lead in scientific research, alongside major projects like the Chang’e lunar missions and its space station, Tiangong. As CJPL advances, global scientists anticipate discoveries that could redefine our understanding of the universe.

The laboratory beneath more than 2,400 meters of solid rock, makes it the deepest underground research facility of its kind in the world. This remarkable depth helps shield the lab from cosmic rays and other background radiation, creating an ideal environment for sensitive experiments that require near-zero interference from external factors.

To investigate dark matter, the lab houses a range of advanced detectors and technologies, including the next-generation PandaX (Particle and Astrophysical Xenon) experiment. PandaX aims to detect the weak interactions between dark matter particles and normal matter by observing tiny flashes of light or electrical signals that might be produced when dark matter collides with atomic nuclei. By conducting these experiments in such a highly shielded environment, scientists hope to capture elusive evidence of dark matter’s existence.

Another major area of focus for the CJPL is the study of neutrinos—extremely lightweight and elusive particles that are produced by nuclear reactions, such as those occurring in the sun or in supernovae. Neutrinos can pass through matter almost undisturbed, making them difficult to detect but crucial to understanding fundamental processes in the universe. The lab’s experiments, such as the Jinping Neutrino Experiment, are designed to capture and study these particles to gain insights into how the universe works on a subatomic level.

Capable of studying , nuclear reactions, gravitational waves 

In addition to its role in dark matter and neutrino research, the Jinping lab has the potential to support a wide range of other scientific endeavors, such as studying rare nuclear reactions, examining the nature of gravitational waves, and exploring potential links between cosmic phenomena and the origins of life on Earth.

As the Jinping Underground Laboratory continues to expand its capabilities, it has the potential to yield groundbreaking discoveries that could transform humanity’s understanding of the universe. Scientists worldwide are watching with great interest, hopeful that this deep-earth facility will shed light on the unseen forces and particles that govern the cosmos.

With its unique design, cutting-edge technology, and ambitious goals, China’s underground lab stands at the forefront of global efforts to answer some of the most profound questions in modern physics and cosmology.

Tractors Hit Bengaluru Roads Again Amid Flooded Streets After Heavy Rain

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Heavy rainfall on Wednesday flooded several areas of Bengaluru, prompting authorities to deploy tractors to assist residents in waterlogged neighborhoods. The weather office has predicted continuous rain throughout Wednesday and Thursday.

The Bruhat Bengaluru Mahanagara Palike (BBMP) arranged two tractors to transport residents in the severely affected Yelahanka area, particularly at the Kendriya Vihar apartments, where water levels rose to around three feet. A help desk was set up on Tuesday evening to provide essential supplies such as drinking water, milk, bread, and biscuits to affected residents.

BBMP Chief Commissioner Tushar Girinath visited the flooded areas, including the Kendriya Vihar Apartments, and monitored the relief measures. “Two tractors have been arranged to help residents move in and out of the apartment complex,” the BBMP said in a statement. Over 20 officers and staff are working on-site to address the situation.

Girinath also visited the Ramanashree California Layout, where officials were instructed to pump out the water. He noted that from Monday to Tuesday, the city received 30 mm of rain, with an additional 60-70 mm recorded on Tuesday alone.

“The northern parts of Bengaluru have been hit hard by the heavy rains. Lakes are full and overflowing, causing flooding in low-lying areas like Yelahanka. This has been a recurring issue, and we are working on measures to drain the water,” Girinath said.

A virtual meeting was held by the Chief Commissioner earlier in the day, where he instructed all officials to visit the affected areas and work on finding long-term solutions to the flooding.

India – Canada ties hit next level of escalation, 6 Canadian diplomats expelled in response

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In a quick response to Canada’s move, India expelled six Canadian diplomats on Monday, just hours after announcing the withdrawal of its High Commissioner and other key officials from Canada. The move comes as relations between the two nations deteriorate, with India citing Canadian Prime Minister Justin Trudeau’s ongoing “hostility” towards New Delhi.

The Ministry of External Affairs (MEA) issued a statement confirming the expulsion of the diplomats, who have been instructed to leave India by 11:59 p.m. on Saturday, October 19. Among those expelled are Stewart Ross Wheeler, Acting High Commissioner, and several senior officials, including Patrick Hebert, Deputy High Commissioner, and First Secretaries Marie Catherine Joly, Ian Ross David Trites, Adam James Chuipka, and Paula Orjuela.

India’s decision was conveyed to Stewart Wheeler, Canada’s Charge d’Affaires in New Delhi, who was summoned to the MEA. Indian officials condemned what they called the “baseless targeting” of their diplomats in Canada, and expressed deep concern for the safety of Indian representatives amidst what they described as a hostile environment fostered by the Trudeau government.

“The actions of the Trudeau government have created an atmosphere of extremism and violence, jeopardizing the safety of Indian diplomats,” the MEA statement said. “We have lost confidence in the Canadian government’s ability to ensure their security, and thus have made the decision to withdraw our High Commissioner and other targeted officials.”

India’s diplomatic retaliation comes after Ottawa labeled Indian diplomats as “persons of interest” in an ongoing investigation, a claim New Delhi has strongly rejected as “preposterous.” In a strongly-worded response earlier in the day, India accused the Trudeau government of “consciously” allowing extremists and separatists to operate freely in Canada, leading to harassment and intimidation of Indian officials and community leaders.

The MEA also warned that India reserves the right to take further action in response to what it perceives as Canadian support for extremism, violence, and separatism aimed at undermining India’s sovereignty.

The diplomatic rift marks a new low in India-Canada relations, with both countries now recalling high-ranking officials as tensions continue to simmer over issues of security and sovereignty.

Elon Musk Among Top Trump Backers with $75 Million Donation, show Federal Filings

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As expected, X owner and billionaire Elon Musk has contributed approximately $75 million to a pro-Donald Trump political group within just three months, according to federal disclosures made public on Tuesday. The contributions highlight Musk’s increasingly pivotal role in aiding Trump’s bid to reclaim the presidency in the upcoming November 5 election.

The donations, funneled through a group called America PAC, are being used to target voters in key battleground states that could determine the outcome of the election. America PAC reported spending roughly $72 million during the July to September period, positioning itself as the most well-funded pro-Trump organization focused on voter outreach.

Musk, the CEO of Tesla and currently the world’s richest person, is the sole donor to the PAC during this period, according to filings with the Federal Election Commission.

While Trump’s campaign has long relied on external groups to handle voter engagement efforts, Musk’s contributions have amplified his influence within Republican political circles. His financial backing has placed him alongside other high-profile conservative donors such as banking heir Timothy Mellon and casino mogul Miriam Adelson.

Musk’s political shift has raised eyebrows, as he has previously stated that he voted for Democratic candidates in past elections. However, the tech mogul publicly endorsed Trump in July and recently appeared with him at a campaign rally in Pennsylvania, signaling his growing alignment with the former president’s agenda.

The sizable donation marks Musk’s entry into the elite class of Republican megadonors. However, recent reports have suggested that his involvement in conservative politics predates this election cycle. According to a Reuters investigation, Musk has quietly supported right-leaning political groups for years before his public endorsement of Trump.

Neither Musk nor America PAC responded to requests for comment on the recent financial disclosures. The PAC is focused on mobilizing irregular voters who support Trump but may not typically turn out on Election Day—a strategy considered high-stakes and resource-intensive for the campaign.

Meet new ‘Phantom of Bombay House’: NRI but holds 18.4% Stake in Tata Sons

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Shapoor Mistry, chairman of the Shapoorji Pallonji Group, leads one of India’s most powerful business dynasties, managing a significant stake in Tata Sons while steering his family’s company through a critical period of transformation. The Mistry family holds an 18.4% stake in Tata Sons, valued at approximately ₹1.52 lakh crore ($130 billion), making them key players in one of India’s largest conglomerates. Yet, despite their deep connections to India, Shapoor Mistry himself is not Indian by nationality—he holds Irish citizenship.

Founded 159 years ago, the Shapoorji Pallonji Group has been a major force in engineering, construction, and infrastructure development. Shapoor Mistry, born in 1964, is the eldest son of Pallonji Mistry, the family patriarch who passed away in 2022, and Patsy Perin Dubash. He has two sisters and a brother, Cyrus Mistry, whose untimely death in a car accident in September 2022 shocked the business world. Shapoor now stands at the helm of a company that generates around $30 billion in annual revenue, managing a sprawling portfolio of businesses.

However, the Mistry family’s wealth is deeply intertwined with their stake in Tata Sons. Pallonji Mistry, Shapoor’s father, earned the nickname “Phantom of Bombay House” due to his quiet yet influential presence at Tata Group’s headquarters. Their relationship with Tata Group peaked in 2012 when Shapoor’s younger brother, Cyrus, was appointed chairman of Tata Sons. However, a highly publicized and contentious boardroom battle led to Cyrus’s ousting in 2016, resulting in one of India’s most dramatic corporate conflicts. This feud between the Mistry family and Tata Trusts led to a prolonged legal battle, putting the spotlight on their close ties with Tata Sons.

The Quiet Billionaire

For Shapoor Mistry, the year 2022 was particularly challenging. In June, his father passed away, marking the end of an era. Just three months later, his brother Cyrus died in a car crash, a personal and professional blow to the family. Together, Shapoor and Cyrus had been working on restructuring the Shapoorji Pallonji Group, which had been facing financial pressure due to high levels of debt. Their plan included selling off non-core assets to stabilize the company’s finances, a strategy that Shapoor continues to implement in the wake of these tragic losses.

In an effort to ensure the group’s long-term resilience, Shapoor has led a reorganization of the company, dividing it into two main entities—S.P. Finance and S.C. Finance—focused on real estate and infrastructure, respectively. This move is aimed at improving cash flow management, particularly in industries where large-scale projects often take years to generate returns. Shapoor’s leadership is now more critical than ever as he navigates both emotional and operational complexities.

But Shapoor Mistry is keen on ensuring that the next generation of the Mistry family continues the legacy. shapoor has already involved his son and his late brother’s sons, Firoz and Zahan Mistry, in key roles within the company. This generational handover is intended to preserve the family’s influence in both Shapoorji Pallonji Group and Tata Sons, as well as to secure the company’s future amidst ongoing challenges in the business landscape.

 

IBM Acquires Bengaluru-based Prescinto, Expands Into Renewable Energy CMS Software

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IBM has announced its acquisition of Bengaluru-based Prescinto, a leading provider of asset performance management (APM) software for the renewable energy sector. While the financial details were not disclosed, this strategic move aims to strengthen IBM’s Maximo Application Suite (MAS), a platform focused on asset lifecycle management.

This acquisition will enhance IBM’s foothold in the rapidly growing energy and utilities market, where companies are increasingly looking to optimize their wind, solar, and energy storage assets. By incorporating Prescinto’s AI-powered tools, IBM plans to offer enhanced monitoring, analytics, and automation capabilities for renewable energy operations.

According to IBM, the global utilities asset management market is projected to grow from $4.3 billion in 2022 to $12.4 billion by 2031, at a compound annual growth rate of 11.3%. The rising demand for these solutions is fueled by the global shift toward renewable energy, as companies seek to reduce emissions and lower energy costs.

Prescinto’s technology helps energy firms streamline operations by providing real-time tracking of energy production and storage assets. The platform identifies performance bottlenecks and delivers actionable insights, allowing companies to maximize returns on their renewable energy investments.

IBM’s Maximo Application Suite is already widely used across sectors such as water, natural gas, oil, and nuclear energy. With Prescinto’s capabilities, IBM aims to better support its clients’ sustainability and net-zero goals by offering more advanced tools for managing renewable energy assets.

Founded in 2016, Prescinto operates in 14 countries, managing 16 gigawatts of renewable energy assets. The acquisition aligns with IBM’s strategy to lead the digital transformation of the energy sector.

Recently, IBM’s Maximo platform was ranked first in IDC’s 2023 global market share report for asset lifecycle management, holding a 10.8% share. This acquisition is expected to further solidify IBM’s leadership in the sector.

Mukesh Ambani’s Reliance Industries Pitching for Stake in Karan Johar’s Dharma Productions: ET Report

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Mukesh Ambani’s Reliance Industries Ltd. (RIL) is reportedly in discussions to acquire a stake in Dharma Productions, a prominent Bollywood film production house owned by Karan Johar. According to sources quoted by the Economic Times, this potential deal aims to bolster Reliance’s expanding media and entertainment portfolio, although the exact size of the stake under negotiation remains undisclosed.

Karan Johar, who currently owns a 90.7% stake in Dharma Productions, has been looking to monetize his holdings for some time. Previous attempts to sell part of his stake faced challenges due to disagreements over valuation, noted the report.

Founded by Yash Johar in 1979 and now led by his son Karan, Dharma Productions has gained acclaim for producing numerous successful Bollywood films. Its notable hits include the 1980 film Dostana, the critically acclaimed Agneepath in 1990, and romantic comedies like Kuch Hota Hai and Kal Ho Naa Ho. Recent successes include the biopics Gunjan Saxena: The Kargil Girl and Sher Shah, released in 2020 and 2021, respectively. In addition, the company launched subsidiaries like Dharma 2.0 in 2016 for advertising and Dharmatic Entertainment for OTT content production in 2018.

For Reliance Industries, this acquisition enables to widen its footprint in India’s content production sector. RIL’s media and entertainment division combines already Jio Studios, Network18 Media & Investments, Colosceum Media, and the CNBC Group, besides digital platforms like First Post, Moneycontrol.com, and Voot. Additionally, in 2017, Reliance acquired a 24.9% minority stake in Balaji Telefilms.

Jio Studios has emerged as one of India’s largest film studios, recently achieving success with Star 2, which became the highest-grossing Hindi film.

Dharma Productions presents an appealing opportunity for Reliance due to its strong brand and impressive track record in Bollywood. In FY23, the production house reported a revenue increase to ₹1,040 crore, despite a 59% drop in net profit primarily due to rising operational costs.

As competition from OTT platforms intensifies and content production costs escalate, companies like Dharma are seeking partnerships to achieve financial stability and adapt to the evolving market landscape.

 

Mala Parvathy Not Alone, Victims of Cyber Fraud Citing CBI or Police Growing Faster

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Renowned Malayalam actress Mala Parvathy became the latest victim of an increasingly sophisticated cybercrime scam that has targeted several individuals. The scam involves fraudsters posing as police officers, accusing unsuspecting people of criminal activities in an attempt to extort money, from ordinary housewives to film stars to senior citizens and youngsters.

The recorded call says the recipient that her Aadhaar card or her phone number or PAN Card had been used to send a package containing passports, ATM cards, and a quantity of the drug MDMA to a foreign country. Once you respond, they send you a CBI notice and when called, they pass on the victim to another official.

The fraud has become so contagious that many innocent people are falling quick victims in disarray. “The caller was so convincing that I had no reason to doubt him. He said the situation was serious and could lead to severe legal consequences unless I took action immediately. He even sent me an identity card and connected me to another ‘official,’” actress Parvathy said.

The fraudster urged her to come to Mumbai for further investigation, but when she expressed her inability to travel, they escalated the pressure. “I was in shock when they sent me what looked like a CBI notice.”

Parvathy was lucky enough to immediately contact the Kerala Police. “The officer I spoke to confirmed that the call was likely made from a foreign country, making it difficult to trace,” she said. But how many victims are there who can turn to police immediately?

Steps To Do Against Fraudsters:

Call toll-free number (1930) or visit the website www.cybercrime.gov.in. To be precise, never respond to such calls but alert the cyberpolice in your state or call the number 1930 to make a complaint.

While the Kerala Police are conducting an extensive awareness campaign on social media to educate the public about such scams, “there is a need for a comprehensive financial ecosystem in place, which requires collaboration between the Centre and the Reserve Bank of India,” said Kerala chief minister Pinarayi Vijayan.

 

Sensex Up 591 Points as Realty and Banking Stocks Lead the Surge

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Indian equity markets began the week on a strong note, with key indices closing in the green on Monday, driven by robust buying in realty, banking, and IT stocks. The BSE Sensex surged 591.69 points, or 0.73%, to close at 81,973.05, while the NSE Nifty rose by 163.70 points, or 0.66%, ending at 25,127.95.

Midcap and smallcap indices also gained, with the Nifty Midcap 100 closing at 59,465.45 after a 0.43% rise, and the Nifty Smallcap 100 climbing 0.55% to close at 26,197.90.

Buying activity was strong across multiple sectors, including realty, IT, financial services, private banks, auto, PSU banks, pharma, and FMCG. However, pressure persisted in the media, metal, and oil & gas sectors.

Market breadth was mixed, with 1,952 shares advancing and 1,919 declining on the BSE. About 140 shares remained unchanged by the close.

Among Nifty’s top gainers were Wipro, Tech Mahindra, HDFC Life, L&T, and HDFC Bank. On the losing side, ONGC, Maruti Suzuki, Tata Steel, and Bajaj Finance ended the day in the red.

Foreign Institutional Investors (FIIs) increased their selling on October 11, offloading equities worth Rs 4,162.66 crore, while Domestic Institutional Investors (DIIs) boosted their buying, purchasing equities worth Rs 3,730.87 crore on the same day.

Market Sentiment 

Market experts attributed the positive sentiment to optimism surrounding potential rate cuts by the Reserve Bank of India (RBI), bolstered by strong domestic tax collections. Additionally, investors are keeping a close watch on upcoming earnings reports from major companies, including Infosys, as well as the much-anticipated Hyundai Motor India IPO.

“Globally, attention is focused on third-quarter earnings and the upcoming European Central Bank rate decision, with US stock futures and European shares showing an upward trend,” said Vikram Kasat of Prabhudas Lilladher.

Trade analysts also noted that Nifty appears to have resumed its uptrend toward the 25,500 mark following a brief three-day consolidation period.