Business
Auto demand recovery weaker than expected: MOFSL

Automobile demand recovery has been weaker than expected post the lifting of second lockdown in June 2021, said Motilal Oswal Financial Services Limited (MOFSL).
Accordingly, while PVs (passenger vehicles) continue to witness healthy recovery, whereas two-wheelers and CVs (commercial vehicles) are subdued.
“The outlook for tractors is also muted, especially considering the high base of 2HFY21,” the report said.
“Additionally, the semi-conductor shortage is intensifying, with 2QFY22 likely to see the worst impact. While there is hope that semi-conductor supplies would improve in 2HFY22, OEMs and vendors are currently living by the day.”
Besides, the report pointed out that financing has been getting stringent for CVs and two-wheelers.
“Lastly, commodity prices seem to be stabilising for now. Coupled with price increases taken and cost-cutting initiatives, EBITDA margins should start looking up from 2HFY22.”
In terms of sectoral picks, MOFSL prefers ‘4Ws’ over ‘2Ws’ as ‘PVs’ is the least impacted segment currently and offers a stable competitive environment.
“We expect the CV cycle to recover and gain momentum towards 2HFY22.”
“In our estimates, we build in strong recovery in 2HFY22 and beyond, with FY22 growth at 16 per cent, 28 per cent, 28 per cent, 55 per cent, 4 per cent for 2W, PV, LCV, M&HCV, Tractors.”
“We prefer companies with higher visibility in terms of demand recovery, a strong competitive positioning, margin drivers, and balance sheet strength.”
Business
Lahore ATC refused to help IndiGo flight stuck in hailstorm danger

New Delhi, May 23: The pilots of the IndiGo plane, which was damaged in rough weather en route to Srinagar, were denied permission by the Lahore ATC to venture briefly into Pakistan airspace to escape the hailstorm, in complete violation of humanitarian norms.
India’s civil aviation regulator, the DGCA, said the aircraft was cruising at an altitude of approximately 36,000 feet near Punjab’s Pathankot when it ran into a thunderstorm and hailstorm.
Experiencing severe turbulence, the crew first requested the Northern ATC of the Indian Air Force to allow the flight to deviate towards the International Border. However, the request was denied because it was felt that the plane would face danger from the Pakistan side due to the recently witnessed intense hostilities between India and the neighbouring country during Operation Sindoor.
The pilot then sought permission from the Lahore air traffic control (ATC) to briefly venture into Pakistani airspace to avoid the storm. But it was refused, too.
With limited options left, the pilot initially considered returning to Delhi. However, since the aircraft was close to the “thunderstorm cloud”, returning was considered an unsafe option. The pilot then decided to continue forward through the storm towards Srinagar on the shortest possible route, the DGCA statement said.
While navigating the thunderstorm, the aircraft encountered “extreme updrafts and downdrafts”, leading to the autopilot disengaging and its speed fluctuating.
“While in the thunderstorm cloud, warnings of an angle of attack fault, alternate saw protection lost, and unreliable airspeed indications were triggered,” the statement further said.
The DGCA said that at one point, the aircraft’s rate of descent reached 8,500 feet per minute. It further said that the crew took manual control of the aircraft during this critical phase till exiting the hailstorm.
The pilot then declared an emergency to the Srinagar ATC, which then activated radar vectors. The flight eventually landed safely in Srinagar with no reported injuries to any of the passengers or crew.
The DGCA said that the plane made a safe landing with the auto thrust system operated manually.
There was no injury to any of the passengers on board the flight. A post-flight check revealed damage to the nose of the aircraft. A full-fledged investigation has been launched into the incident, the statement added.
Crime
Andhra Police begin questioning terror suspects after bomb plot detected

Visakhapatnam, May 23: The Vizianagaram police in Andhra Pradesh on Friday took into custody two men, arrested last week in connection with an alleged terror plot, and were being questioned.
A day after the Vizianagaram District Court remanded Siraj-ur-Rehman and Sayeed Sameer to police custody for a week, the police took them into their custody from Visakhapatnam Central Jail and shifted them to Vizianagaram for questioning.
Senior officials, including the in-charge Superintendent of Police Madhava Reddy, were questioning the accused to probe further the alleged terror plot.
The National Investigation Agency (NIA), which is also investigating the case, may also interrogate the accused about their links with terror groups in India and abroad.
The duo is likely to be questioned about the plot and the activities of Al-Hind Ittehadul Muslimeen floated by them. The investigating officials will be trying to gather information about their contacts in Andhra Pradesh, Telangana and other states.
Siraj was arrested by Vizianagaram police following the recovery of explosives at his residence on May 17. The subsequent investigation led to the arrest of a second suspect, Sayeed Sameer, in Hyderabad.
Sameer was brought to Vizianagaram, and the duo were sent to judicial custody for 14 days.
They have been booked under the Unlawful Activities (Prevention) Act, 1967, and also under the Explosive Substances Act of 1908.
The two suspects had allegedly procured explosives online and were planning a trial of explosions near Vizianagaram.
According to police, Siraj is an engineering graduate from Vizianagaram while Sameer is a lift operator and is a resident of Bhoiguda in Secunderabad.
The two suspects had allegedly formed a group by the name Al-Hind Ittehadul Muslimeen to carry out their activities. The organisation reportedly has 12 members in cities like Delhi, Mumbai, Bengaluru, Hyderabad and Warangal.
Meanwhile, NIA and intelligence officials carried out searches late Thursday night at Tadigadapa in the Krishna district of Andhra Pradesh. They reportedly searched a house in which seven people were staying.
The officials reportedly picked up a few suspects and whisked them away. Their identity was not known. It was also immediately not clear if the search was related to a terror plot busted by the Vizianagaram police.
Following the Pahalgam terror attack and its aftermath, police and intelligence agencies are maintaining a tight vigil on suspects.
National
Op Sindoor, a result of PM Modi’s political will, intel inputs and Army’s striking potential: Amit Shah at BSF event

amit shah
New Delhi, May 23: Union Home Minister Amit Shah on Friday said that the Operation Sindoor has completely exposed Pakistan before the world and proved that the terrorism in India is Pakistan-sponsored.
Speaking at the 22nd Border Security Force (BSF) Investiture Ceremony and the Rustamji Memorial Lecture, he praised the Indian Armed Forces and also credited Prime Minister Narendra Modi’s leadership for transforming India’s counter-terrorism strategy and enabling decisive actions like Operation Sindoor.
Highlighting India’s restraint and precision, he said, “We neither destroyed any Pakistani military installation nor did we ever target an airbase. We only and only destroyed terrorist camps, those who committed crimes on our land.”
Shah credited the success of Operation Sindoor to a combination of leadership, intelligence, and military capability.
“Operation Sindoor is the result of our Prime Minister’s firm political will, the precise intelligence from our information-gathering agencies, and the Army’s remarkable display of striking capability. When these three come together, we get Operation Sindoor,” he said.
Shah stated that Pakistan stands completely exposed after Operation Sindoor.
“Due to Operation Sindoor and the events that followed, Pakistan now stands completely exposed. The terrorism in India is Pakistan-sponsored. When the terror camps in Pakistan were targeted, it was the Pakistani army that responded. The world witnessed that when the funerals of the killed terrorist leaders were held, senior officers of the Pakistan Army were not only present but were also seen carrying their coffins and participating in the prayers,” the Home Minister told the BSF gathering.
Reflecting on India’s evolving security doctrine post-2014, Shah said, “For decades, the country has been facing terrorism. Pakistan carried out several attacks, but there was no appropriate response. In 2014, when Narendra Modi became the Prime Minister, the first major attack happened in Uri, targeting our soldiers, and we responded with a surgical strike. When the Pulwama attack occurred, the Indian Army gave a strong response through an airstrike. Once again, we eliminated terrorist hideouts.”
The Home Minister praised the Indian Armed Forces for their swift and strategic response following the terror attack in Pahalgam.
“All over the world, many places have responded to terrorist attacks. But the response that India has given is, in a way, different. When the attack on Pahalgam happened, we launched Operation Sindoor. In just few minutes of the operation, we destroyed 9 terrorist bases, of which 2 were their headquarters,” Shah said.
Further, acknowledging BSF’s contribution, HM Shah said, “When it was decided that one force will provide security on one border, BSF was given the responsibility of guarding the two most difficult borders – Bangladesh and Pakistan – and given your capabilities, you have secured it very well.”
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