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EV push powers TaMo’s DVR, pent-up demand raises parent’s shares

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Automobile major Tata Motors’ parent co’s as well as DVR stocks are expected to make healthy gains on the back of Centre’s push towards electric vehicle-led economy and supporting macro-economic factors.

At present, Tata Motors has two listed stocks—Tata Motors ordinary and Tata Motors DVR. The primary difference between the two lies in the voting rights of their respective investors.

“Fundamentally we believe steam is still left for Tata Motors DVR and we might see more traction and upside in Tata Motors DVR. I expect more upside in Tata Motors DVR (Differential Voting Rights) compared to Tata Motors as it is available at attractive price and favorable valuations comparatively,” said Harsh Patidar, Senior Research Analyst at CapitalVia Global Research.

“Tata Motors DVR touched 4 year high and closed at 290.25 on Tuesday from a record low of 28.80 in March 2020 which is close to 10 times.”

At 1 p.m, the Tata Motors DVR stocks traded at 294.55 rupees, up 1.5 per cent, and the Tata Motors parent company’s shares traded at 533 rupees a share, up 2.7 per cent.

According to Santosh Meena, Head of Research at Swastika Investmart: “On the upside, it is likely to head towards 325 level on an immediate basis while 351 will be the next target level. Traders are advised to remain long till it trades above its 20-DMA where any dip around 270 will be a great buying opportunity while investors can continue to ride the current bullish momentum as it has potential for 30-40 per cent upside from here.”

Besides, both the stocks are expected to gain from the leverage of a possible electric vehicles’ boom and rising fuel prices bodes well for Tata Motors which has already launched EVs, analysts opined.

Tata Motors is one of the major players in the business. It has performed substantially better as far as growth in equity markets is concerned.

The company’s shares have rallied nearly 180 per cent so far this calendar year.

Besides, the Centre’s electric push is expected to make its scrip more attractive as the company plans to launch more EVs in the coming years.

At the recent conference of parties to the United Nations Framework Convention on Climate Change (UNFCCC) meet, Prime Minister Narendra Modi, declared that India will achieve net zero by 2070, and aims to take the country’s energy share through renewable sources to 50 per cent.

“I see Tata motors attractive as of current valuations… I believe the stock to cross Rs 650-mark in next few quarters and it is worth holding for mid-to-long term as it might unlock Tata Motor’s EV business,” Patidar said.

According to LKP Securities Senior Research Analyst Ashwin Patil: “Demand for commercial vehicles in domestic markets has gone up with greenshoots visible in the economy. Infrastructure, construction, mining and all these activities are gaining momentum.”

“That’s because the sales of commercial vehicles have been moving up on a sequential basis. That’s a very strong signal from the economy which is raising the sales in commercial vehicles.”

Furthermore, Patil mentioned that the new offerings by the company also seemed to have boosted the momentum.

In addition, Rahul Sharma, Co-Founder of Equity99 said: “Considering the current improvements in (semiconductor) chip shortage crises we expect a further good move in this counter.”

“We remain bullish on this counter and expect a price target of Rs 800 in short to medium term.”

The company expects demand for electric vehicles to remain strong even as concerns about the supply of semiconductors and high input costs continue, he added.

Executive Director at Tata Motors Girish Wagh, post the Q2 FY22 earnings results were declared, said: “We continue to progress our future-fit initiatives of transforming customer experience digitally and strengthening our lead in sustainable mobility.”

Recently, Tata Motors launched a SUV model ‘Tata Punch’ with a starting price of Rs 5.49 Lakh (ex-showroom Delhi), whose electric version reportedly would soon be launched in the market.

A substantial rise in fuel prices, climate change concerns from internal combustion engines, will typically incentivise new buyers to go for electric vehicles and hence fuel sentiment to the sector, experts added.

“Gradual improvement in the Semiconductor shortage issue would set the stage for strong jump in volumes for FY23,” said Milan Desai, Lead Equity Analyst at Angel One.

“As for the CV business, the company would benefit from rebound in demand after a painful past two years for the overall industry.”

Business

Sensex plunges nearly 2 pc amid US reciprocal tariff concerns

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Mumbai, April 1: Indian stock markets on Tuesday witnessed a sharp decline on the first trading day of the new financial year. The fall came as investors reacted to global market concerns, especially the upcoming US reciprocal tariffs on April 2.

The Sensex, which represents 30 major companies, dropped by 1,390.41 points or 1.80 per cent to close at 76,024.51. During the trading session, it fluctuated between an intra-day high of 77,487.05 and a low of 75,912.18.

The Nifty index also tumbled 353.65 points or 1.50 per cent, ending at 23,165.70. It touched a high of 23,565.15 and a low of 23,136.40 during the intra-day.

Almost all stocks in the Sensex index ended lower, except Zomato, IndusInd Bank, and State Bank of India (SBI).

The biggest losers included HCL Technologies, Bajaj Finserv, HDFC Bank, Bajaj Finance, and Infosys, which saw their share prices decline by up to 3.66 per cent.

Midcap and smallcap stocks also faced pressure. The Nifty Midcap100 index closed 0.86 per cent lower, while the Nifty Smallcap100 index slipped 0.70 per cent.

The BSE Midcap index was down 0.9 per cent, whereas the Smallcap index managed to rise slightly by 0.2 per cent.

Sector-wise, most indices ended in the red, with IT, real estate, and consumer durables stocks falling by around 2 per cent each. Only media, oil & gas, and telecom stocks managed to stay positive.

Market volatility also surged as the India VIX, commonly known as the fear index, jumped 8.37 per cent to 13.78 points. This suggests that investors are increasingly cautious about the market’s direction.

Analysts suggest that market fluctuations may continue until there is more clarity on global trade relations and economic policies as investors remain concern about Trump’s tariff policies and their impact on international trade.

“Amid heightened global volatility ahead of the anticipated US reciprocal tariff announcement tomorrow (US time), the domestic market witnessed a significant sell-off today. Investors are eagerly awaiting the specifics of these tariffs while also keeping a close eye on ongoing negotiations for a potential Indo-US trade agreement,” said Vinod Nair, Head of Research, Geojit Investments Limited.

The IT sector was among the hardest hit due to its substantial exposure to the US market, and real estate stocks fell following Maharashtra’s upward revision of ready reckoner rates, which affect property valuations.

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National

Bengal minister among 30 TMC MLAs asked to clarify absence on last day of Assembly session

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Kolkata, April 1: The internal disciplinary committee of Trinamool Congress’ legislative party in the West Bengal Assembly has finally shortlisted 30 party MLAs, including a member of the state cabinet for being absent on March 20, the last day of the second phase of the budget session, ignoring the party whip.

The absent MLAs had not even given prior intimation about their absence to the office of the Speaker, Biman Bandopadhyay.

These legislators, including the state minister, will have to personally appear in front of the disciplinary committee this month and justify why internal disciplinary action will not be initiated against them for ignoring the party whip.

The name of Manoj Tiwari, the cricketer-turned-politician and the current West Bengal Minister of State for Youth and Sports Affairs department, also figures in the list of those who will have to justify the reason behind their absence during House proceedings and ignoring party whip, said a member of the disciplinary committee who refused to be named.

Tiwari joined Trinamool Congress in 2021 before the state Assembly elections that year and was elected as a party legislator from the Shibpur Assembly constituency in the Kolkata-adjacent Howrah district. After the new state cabinet was announced, his name figured in the list.

Initially, it was decided that the meeting of the internal disciplinary committee would be conducted on March 29. However, the meeting on that date was cancelled because of the preoccupations of the MLAs including the members of the disciplinary committee because of the Eid festival.

The committee is chaired by the state Parliamentary Affairs Minister, Sovandeb Chattopadhyay. The other members of the committee include the West Bengal Minister of State for Finance (independent charge) Chandrima Bhattacharya, the state Municipal Affairs and Urban Development Minister and Kolkata Mayor Firhad Hakim, state Power Minister Arup Biswas and the chief whip of Trinamool Congress’s legislative party in state Assembly, Nirmal Ghosh.

Trinamool Congress had issued a whip, making the presence of all party legislators mandatory on the last two days of the second phase of the budget session on March 19 and March 20.

Although the presence on the part of the legislators was almost 100 per cent on March 19, several legislators, including the minister, skipped attendance on March 20.

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National

SC refuses to entertain fresh PIL against Places of Worship Act 1991

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New Delhi, April 1: The Supreme Court on Tuesday declined to entertain a public interest litigation (PIL) challenging the constitutional validity of a provision of the Places of Worship Act, 1991.

In the alternative, a bench of CJI Sanjiv Khanna and Justice Sanjay Kumar suggested the PIL litigant to move an intervention application in the pending clutch of pleas challenging the validity of the contentious law, which prohibits the filing of a lawsuit to reclaim a place of worship or seek a change in its character from what prevailed on August 15, 1947.

The CJI Khanna-led Special Bench, in an interim order passed on December 12, 2024, ordered that no fresh suits would be registered under the Places of Worship Act in the country, and in the pending cases, no final or effective orders would be passed till further orders.

As per the latest petition filed through advocate Shweta Sinha, Section 4(2) of the 1991 Act is manifestly arbitrary, irrational and violative of Articles 14, 21, 25, and 26 of the Constitution.

“This provision not only closes the doors of mediation but also takes away the power of the judiciary. The legislature cannot take away the power of the judiciary to preside over disputes. This has been done through colourable legislation,” stated the plea.

In March 2021, a Bench headed by then Chief Justice of India S.A. Bobde sought the Centre’s response to the plea filed by advocate Ashwini Upadhyay challenging the validity of certain provisions of the law, prohibiting the filing of a lawsuit to reclaim a place of worship or seek a change in its character from what prevailed on August 15, 1947.

The plea said: “The 1991 Act was enacted in the garb of ‘public order’, which is a state subject (Schedule-7, List-II, Entry-1) and ‘places of pilgrimages within India’ is also a state subject (Schedule-7, List-II, Entry-7). So, the Centre can’t enact the Law. Moreover, Article 13(2) prohibits the State from making a law to take away fundamental rights, but the 1991 Act takes away the rights of Hindus, Jains, Buddhists, and Sikhs, to restore their ‘places of worship and pilgrimages’, destroyed by barbaric invaders.”

“The Act excludes the birthplace of Lord Rama but includes the birthplace of Lord Krishna, though both are incarnations of Lord Vishnu, the creator and equally worshipped throughout the world, hence, it is arbitrary,” it added.

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