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400 Vande Bharat trains: Rs 40,000 Cr business opportunity and jobs

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Rolling out 400 Vande Bharat Express trains is about Rs 40,000 crore of business coupled with jobs and other spin-off benefits, said senior officials –present and past — of Indian Railways

Presenting the Union Budget for 2022-23, Indian Finance Minister Nirmala Sitharaman said 400 new energy efficient Vande Bharat trains will be introduced in three years.

The Vande Bharat Express is a semi-high speed train designed, developed and built by the Integral Coach Factory (ICF) at a frugal outlay of Rs 100 crore.

The Indian Railways officials preferring anonymity told IANS that 400 Vande Bharat trains over the next three years is not just headline catching announcement. It is about Rs 40,000 crore business opportunity that would also create 15,000 jobs and several spin -off benefits.

Presently there are only two Vande Bharat trains that are running — Delhi to Varanasi and Delhi to Katra.

“The trains without a pair are running six days a week without a breakdown till date since they were pressed into service a couple of years back. Perhaps Vande Bharat Express is the first train that is run without a pair,” a senior official at ICF told IANS with pride.

It is one classic example of ‘Make in India’ and far cheaper than similar trains that are rolled out by foreign companies.

The train has only about 15 per cent import content which will further go down if production volumes increase, officials told IANS earlier.

An ICF official said the third prototype is getting delayed due to production bottlenecks and logistical challenges due to the Covid-19 pandemic.

However, how the government is going to achieve its target of 400 Vande Bharat Express trains over the next three years is the Rs 40,000 crore question.

While it is really an ambitious target, it can be achieved in a staggered manner with the government giving better clarity on its plans, officials said.

Indian Railway Minister Ashwini Vaishnaw said the upgraded Vande Bharat train is expected to be ready for tests in April and commercial production is expected to start in August/September, 2022.

“I would think that a more realistic target of say 100-150 trains in three years would have been better. This target itself would need very concerted and committed action by railway executives, particularly at ICF,” Sudhanshu Mani, retired General Manager, ICF and the Creator of Vande Bharat Express told IANS.

He said, commercial production and necessary testing of the upgraded train is expected to start only in September 2022 and hence the target should be realistic.

“Rolling out the trains in large numbers may not be an issue. But where are they going to be deployed? The routes also have to be finalised,” Mani added.

Continuing further Mani said ICF should start working on Vande Bharat trainsets, including the sleeper version (code named Train 19) and 300 units of aluminium body trainsets (code named Train 20).

“There can be a foreign partner for rolling out aluminium body trains. In 5/6 year’s time 400 trains can be there,” he remarked.

When pointed out that the train could be rolled out by other coach manufacturing facilities in the country Mani said: “Initially only ICF should roll out as they understand the technology and other aspects. Spreading out the production to other units will result in quality issues.”

Concurring with him, a senior official not wanting to be quoted told IANS: “Only ICF should make it. It needs special skill sets and trained people are not available in other units.”

Officials also said spreading out the manufacturing not only would result in quality issues, but the ultimate death of the train that is successfully running without a hitch six days a week for the past couple of years.

While ICF would initially roll out the trainsets, the other units can take care of the maintenance works and acquire the production knowhow.

The other question is the availability of the vendors. Unless the government gives a clear roadmap, vendors may not ramp up their production capacity, officials said.

“The supply chain will take time to gear up. They can supply only at a steady rate. Out of the 400 trains, during the first year only 20 trains can be rolled out and 380 trains in the remaining two years is not possible,” the official added.

Further vendors and ICF officials are reluctant to touch the Vande Bharat train project after the witch hunt in the form of vigilance enquiry that was conducted and concluded recently without finding any discrepancy.

According to officials, there needs to be long term contracts — say 60 trains for the next 10 years — only then vendors can set up production facilities.

“Tenders and procurement process should be done in such a way that vendors can participate without worry,” they added.

Business

Sensex May Touch 1.15 Lakh And Nifty 43,876 By FY28 In Bull Case, Says Ventura Stock Broking Report

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Mumbai: In a bull case scenario, Sensex is projected to reach 115,836 and Nifty is likely touch 43,876 by the financial year 2028 (FY28), a report said on Friday.

However, in a bear case scenario, Sensex is projected to reach 1,04,804 and Nifty at 39,697 by FY28, Ventura, a stock broking platform, said in its recent projection.

Nifty is expected to oscillate within a well-defined price-to-earnings (PE) band in these three years, with projected robust earnings growth with estimated FY28 earnings per share compound annual growth rate (EPS CAGR) of 12-14 per cent.

“In the last 10 years, the Indian economy has demonstrated resilience and clocked the highest GDP growth as a large economy despite global headwinds of NBFC crisis, Covid 19, Russia-Ukraine war and the recent uncertainty on US President Donald Trump tariff,” said Vinit Bolinjkar, Head of Research, Ventura.

The risk mitigation influencers will outweigh the current challenges, which will usher Indian GDP growth to 7.3 per cent by FY30(E), he added.

By FY28, the Indian index will be at a PE level of 21 times in the bull case and 19 times in the bear case with an estimated earnings-per-share (EPS) of 5,516 for Sensex and 2,089 for Nifty 50, the report stated.

Over the past ten years, India has demonstrated extraordinary resilience by navigating a series of unprecedented disruptions without compromising its growth trajectory.

From the “Fragile Five” designation to demonetisation, GST implementation, a crippling NBFC crisis, and the dual shock of COVID-19 waves, India has withstood and adapted to adversity, the report highlighted.

According to the report, even global headwinds like the Russia-Ukraine war and Trump-era tariffs have failed to derail its momentum, underlining the robustness of the Indian economy.

As of the mid-season point for Q1 FY26 earnings, 159 companies have reported Q1 FY26 results, revealing broad-based strength across key sectors.

Engineering/manufacturing and services sectors have led the pack, while consumption, commodities, and pharma show steady performance, the report stated.

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Business

Sensex – Nifty Open Lower Amid Weak FII Sentiment, Midcap & Smallcap Stocks Lend Market Support

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Key Highlights:

– Sensex fell 171 pts, Nifty down 35 pts; midcaps, smallcaps held strong.

– FIIs sold Rs 3,694 crore worth of stocks; DIIs bought Rs 2,820 crore.

– Nifty’s bearish engulfing pattern suggests continued caution; 25,000 key support.

Mumbai: Indian equity benchmarks Sensex and Nifty began Friday’s session in the red, weighed down by selling pressure in large-cap stocks. At 9:25 am, the Sensex declined by 171 points or 0.21 percent to trade at 82,087, while the Nifty dropped 35 points or 0.14 percent to 25,075.

Heavyweights Drag, Broader Market Holds

Major drag on the indices came from key constituents such as Axis Bank, Bharti Airtel, Kotak Mahindra Bank, and HDFC Bank. Financial stocks, FMCG, and private banking segments were under pressure. However, midcap and smallcap segments outperformed, providing resilience to the overall market.

Gainers on the Sensex included M&M, Tata Steel, Power Grid, L&T, Infosys, and Maruti Suzuki, reflecting strength in sectors like auto, metals, and infra.

Sectoral Picture Mixed

On the sectoral front, gains were recorded in auto, IT, PSU banks, metals, realty, energy, media, infrastructure, and commodities. Meanwhile, financial services, FMCG, and private banking faced losses.

Technical indicators showed bearish signals, with Nifty completing a bearish engulfing candle on Thursday. Analysts highlight 25,000 as a key support and 25,340 as a vital resistance level.

FIIs Remain Net Sellers

Foreign institutional investors (FIIs) continued their selling trend, offloading equities worth Rs 3,694 crore on July 17 — marking the second consecutive session of net selling. Domestic institutional investors (DIIs), however, remained net buyers, purchasing Rs 2,820 crore worth of shares for the ninth straight session.

According to Dr. VK Vijayakumar of Geojit Financial Services, FIIs have shown a clear pattern of selling in July after buying in the previous three months. Without positive triggers, the downtrend could persist.

Global Cues Offer Some Relief

Asian markets traded mostly higher on Friday, with Shanghai, Hong Kong, Bangkok, and Jakarta in the green, although Tokyo and Seoul lagged. The US markets ended positively on Thursday, driven by upbeat investor sentiment.

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Business

Indian Equity Indices Open Flat As Markets Await Fresh Triggers To Break Out Of Consolidation Phase

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Mumbai: The Indian equity indices opened flat on Thursday, as markets looked for new triggers to break out of the consolidation range.

At 9.2 am, c was down 15 points at 82,619 and Nifty was down 2 points at 25,210. Buying was seen in the midcap and smallcap stocks. Nifty midcap 100 index was up 123 points or 0.18 per cent at 59,741 and Nifty smallcap 100 index was up 70 points or 0.37 per cent at 19,210.

On the sectoral front, auto, pharma, FMCG, metal, realty, energy, infra and PSE were major gainers, while IT, PSU bank, financial services and media were major losers.

In the Sensex pack, Sun Pharma, M&M, Trent, Kotak Mahindra, Tata Motors, NTPC, BEL, Titan and Power Grid were major gainers. Tech Mahindra, ICICI Bank, Eternal, Axis Bank, Infosys and HUL were major losers.

According to analysts, an India-US interim trade deal has been discounted by the market, leaving no scope for a sharp rally decisively breaking the range.

“One positive and surprise factor that can trigger a rally is a tariff rate much below 20 per cent, say 15 per cent, which the market has not discounted. So, watch out for developments on the trade and tariff front,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Most Asian stocks traded in a flat-to-low range. Tokyo, Shanghai, Bangkok and Jakarta were trading in the green while Hong Kong and Seoul were in the red.

The US market closed in the green on Wednesday due to positive market sentiment.

On the institutional front, foreign institutional investors (FIIs) continued to reduce exposure in India, selling equities worth Rs 1,858 crore on July 16. In contrast, domestic institutional investors (DIIs) remained consistent buyers for the 8th straight session, infusing Rs 1,223 crore, lending crucial support to the market amid global uncertainties.

The broader trend remains optimistic as long as key support levels are respected, said analysts.

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