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Market volatility to continue with some initial surge in markets

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3 years ago

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The week began with a bang with new closing highs recorded on both the BSESENSEX and NIFTY on the very first trading day of the week. Alas! The good news ended there and markets fell on each of the remaining four days to end with losses for the week. BSESENSEX lost 1,282.69 points or 2.14 per cent to close at 58,765.78 points while NIFTY lost 321.15 points or 1.80 per cent to close at 17,532.05 points. The broader indices saw BSE100, BSE200 and BSE500 lose 1.65 per cent, 1.38 per cent and 1.19 per cent, respectively. BSEMIDCAP gained 0.12 per cent, while BSESMALLCAP gained 0.69 per cent. The closing high recorded during the week was 60,077.88 made on September 27 while the intraday high made was in the previous week at, 60,412.32 points, also made the same day. On NIFTY, the closing high made on the same day was 17,855.10 points while the intra-day high made was on the previous September 24at 17,947.65 points.

The Indian Rupee lost 42 paisa or 0.57 per cent to close at Rs 74.12 to the US Dollar. Dow Jones lost 471.54 points or 1.36 per cent to close at 34,326.46 points. A large part of the losses was reversed on Friday when Dow Jones gained 482 points. Had that not happened, loses would have been close to 950 points.

September series expired on the last trading day of the month at 17,618.15 points, a gain of 981.25 points or 5.90 per cent for the month. Markets were under pressure this week and surrendered quite a bit and gave in to the bears.

The opening day of October series began on a weak note and continued with the prevailing weakness of the previous three days. NIFTY on the first day of the series lost 86.10 points and began on a weak note. The last time we saw such a trend was in the May 21 series which began on a weak note, losing 263 points on the opening day, April 30. The May series ended with gains of 442.95 points or 2.97 per cent. Using this as empirical evidence would suggest that though we began the first day of a new series on a weak note, we would in all probability end with gains for the series.

During the week we saw, bids for Air India being opened, and in all probability, it appears that the wheel has come a full circle. Air India which was nationalised way back in 1952-53, It is likely to be again owned and operated by the house of Tatas. While full details of the same are yet awaited, Tatas with their interest in newly acquired Air India which includes Air India, erstwhile Alliance Air, Air India Express and Indian Airlines along with their existing JV’s with Vistara and Air Asia would become a key and dominant player in aviation in India going forward.

In primary market news, the issue from Aditya Birla Sun Life AMC Limited closed for subscription and was subscribed 5.25 times. QIB portion was subscribed 10.36 times, HNI portion 4.39 times, Retail portion was subscribed 3.24 times and Shareholder preferential quota was subscribed 1.68 times. There were 15.66 lac applications.

On the side-lines of this issue, Standard Life sold 1.06 cr shares of HDFC AMC while this issue was on and garnered close to Rs 3,000 cr. The size of their sale was more than the amount raised by Aditya Birla AMC through their issue.

Shares of Paras Defence and Space Technologies Limited which is the highest response receiving issue since 2007, debuted on the bourses on Friday and had a lift-off on day one. Shares which were issued at Rs 175 closed at the upper circuit of Rs 498.75 on BSE, a gain of Rs 323.75 or 185 per cent. It’s a great start and the last time one saw anything near this kind of gains was in the case of IRCTC in October 2019.

Reserve Bank of India meets for its bi-monthly monetary policy review between Wednesday to Friday with the announcement on Friday. There maybe a minor hardening of repo rates

to reduce the excess liquidity in the system, but the expectation is not necessarily a consensus view. Barring this, the consensus is rates are expected to remain status-quo.

Calendar year 2021 has been the year of the primary markets but with one major difference. This year 75 per cent of the funds raised or more have been in the form of divestment by mainly the PE players and some portion of this by promoters. Growth capital or capital infusion into the company has been less than a fourth of the funds raised. PE investors invest money into a company through SPV’s where the name of the entity is different in each company where they invest and it is difficult for an investor to understand who is behind the company. In such a scenario like in the case of merchant bankers who give a track record of three years of their performance in new issues, a similar exercise should be mandated by SEBI for PE investors. This will help in a big way to make investors smarter and benefit in their understanding of value and valuations of a company. This will also give an idea in which PE Investor’s divestment is something left on the table.

On the covid-19 front, the world saw 23,54,35,786 patients, 48,11868 deaths and 21,22,44,299 patients who had recovered. In India we saw 3,38,13,903 patients, 4,48,846 deaths and 3,30,94,529 patients who had recovered. Compared to the previous week, the world saw 21,42,991 new patients, 54,291 deaths and 33,36,047 patients who had recovered. In India we saw 1,61,158 new patients, 1,898 deaths and 1,92,178 patients who had recovered. In terms of vaccinations, 88.94 cr vaccinations have been administered. This number includes the first and second vaccination combined.

Coming to markets in the week ahead, there should be some upward movement in the early part of the week on the back of sharp correction witnessed during the last week. This is also on account of the weakness in global markets led by Dow and the disturbing news coming from China on many fronts. The sharp rally witnessed on Dow on Friday should influence market opening on Monday but may not be enough for the rest of the week.

Considering the vulnerability and extreme volatility witnessed last week, it makes sense to continue the strategy of buy on sharp dips and sell on strong rallies. Keep some amount of money in cash as opportunities are available as was the case last week. Secondly with results reporting season beginning there would be higher stock specific action visible from next week onwards. On the back of results from the leaders, one would get a fair idea of how the sector is behaving. Use this analysis to play the markets.

Trade cautiously and curb temptation.

(Arun Kejriwal is the founder of Kejriwal Research and Investment Services. The views expressed are personal)

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Tata Motors Unveils Limited-Edition Safari STEALTH to Mark 27 Years of Legacy

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2 days ago

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February 21, 2025

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Tata Motors is celebrating 27 years of the Safari with the launch of the exclusive STEALTH Edition, a limited-run variant designed for those who seek style and performance. Available in both the Harrier and Safari models, only 2,700 units of this edition will be produced. The Harrier STEALTH is priced at Rs 25.09 lakh (ex-showroom, Delhi), while the Safari STEALTH starts at Rs 25.74 lakh (ex-showroom, Delhi) and is offered in both 6- and 7-seater configurations. With a striking design, premium features, and advanced technology, the STEALTH Edition adds a new level of exclusivity to Tata’s SUV lineup.

The Tata STEALTH Edition brings a bold, monotone design that reflects the growing demand for exclusive and distinctive vehicles. With limited units available, this special edition is set to attract enthusiasts looking for a unique SUV. Bookings for the STEALTH Edition opened on February 21, both online and at Tata dealerships across India, giving customers the chance to own a rare and stylish addition to Tata’s lineup.

The Harrier and Safari STEALTH Edition stand out with their bold design and advanced features, built on the sturdy OMEGARC platform derived from Land Rover’s D8 architecture. The exclusive Matte Black finish, R19 Black Alloy Wheels, and a distinctive STEALTH mascot give these SUVs a powerful road presence. Inside, the cabin is designed for comfort with ventilated first- and second-row seats (Safari only for the second row), a Carbon-Noir interior theme, and a voice-assisted dual-zone climate control system.

Technology is a highlight, featuring a 31.24 cm Harman touchscreen, Arcade App Store, Alexa Home 2 Car, Map My India navigation, and a 10-speaker JBL audio system with Harman AudioworX. Power comes from a 2.0L KRYOTEC BS6 Phase 2 turbocharged engine producing 170PS, paired with a 6-speed automatic transmission. Safety is a priority, with Level 2+ ADAS offering 21 functions, including a segment-first Intelligent Speed Assist, along with 7 airbags and ESP with 17 safety features.

Unveiling this exciting new version of the Harrier and Safari, Vivek Srivatsa, Chief Commercial Officer, Tata Passenger Electric Mobility Ltd., stated, “Tata Motors has been a leader in the Indian SUV segment, with innovation at its core. The Tata Safari, which introduced the concept of a lifestyle SUV to India, reflects this legacy of pioneering excellence. Over 27 remarkable years, the Safari has constantly evolved, and the launch of the STEALTH Edition is a tribute to this journey. This special edition is an exclusive offering, with only 2,700 units available in the striking STEALTH Matte Black finish. More than just an SUV, the STEALTH Edition is a symbol of prestige, adventure, and capability, making it a highly desirable collector’s item for enthusiasts and connoisseurs. Owning a STEALTH Edition isn’t just about having an extraordinary vehicle—it’s about claiming a piece of automotive history that many will aspire to have in their collection.”

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Business

Maruti Suzuki’s New Mid-Term Plan Aims To Make India An Export Hub, Launch More EVs

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3 days ago

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February 20, 2025

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New Delhi: The Suzuki Motor Corporation of Japan, the parent company of Maruti Suzuki India, on Thursday announced a new mid-term plan with a “rethink” in its strategy as “the business environment has changed due to declining market share in India” and the growing electrical vehicles segment.

In its new mid-term plan for 2025-30, the company has identified India as its “most important market”. Maruti Suzuki aims to create a manufacturing capacity of producing 4 million cars annually to reclaim a 50 per cent market share in India and use the country as a global export hub as well.

The auto major plans to expand its EV lineup starting with the e-Vitara, and is aiming to launch four new EV models by FY30 in a segment where its rivals like Tata Motors and Mahindra & Mahindra already have a varied EV portfolio in India.

“In India, we will promote further localisation in line with the growth of the electric vehicle market,” the company said.

Maruti Suzuki is currently exporting three lakh vehicles from India annually. By the end of this decade, it is targeting the export of 7.5-8 lakh units per year.

While the company noted it achieved revenue and profit targets ahead of schedule by improving sales mix and quality, its sales volume target could not be met.

It noted that the “competitive environment is becoming increasingly severe, and the quality of product functions, equipment and services required by customers is increasing”.

It aims to be India’s no.1 carmaker in terms of production, local sales and exports of electric cars. A total of six electric vehicles will be introduced by FY30, including four electric cars and two commercial vehicles.

Suzuki Motor plans to invest 1,200 billion yen (about Rs 7,000 crore) as capital expenditure towards production, new models, carbon neutrality and quality measures. A new plant in Haryana’s Kharkhoda and an assembly line in Suzuki Motor Gujarat will come onstream by 2030 for a total installed capacity of four million units.

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‘Made in India’ iPhone 6e not SE variant but a next-gen entry point for consumers

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3 days ago

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February 20, 2025

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New Delhi, Feb 20: In a further push to the local manufacturing, the entire iPhone 16 lineup, including the newly-launched iPhone 16e, is now being assembled in India for domestic market as well as for exports, as industry experts on Thursday cleared the air around the new device being compared to now-retired iPhone SE.

The new Apple device, with A18 chip, breakthrough battery life, Apple Intelligence, and a 48MP 2-in-1 camera system, is being manufactured/assembled for local consumption as well as for export to select countries.

According to experts, iPhone 16e is not iPhone SE4 and the whole “comparison is futile”.

When iPhone SE was launched, it was another masterstroke at that time. However, times have changed since then.

“Essentially, Apple retired the SE lineup and extended the iPhone 16 lineup with a new entry point. iPhone SE was no longer adding any value to consumers, developers or Apple,” said Neil Shah, Partner and Co-Founder at Counterpoint Research.

The iPhone SE which was positioned as a “Special Edition,” which brought nostalgia of older and smaller design, was priced around $400.

However, the iPhone SE lost its value and popularity, which used to be once 16 per cent of the total iPhone sales volumes, dropped to 1 per cent last year.

According to Shah, consumers now prefer better cameras, bigger displays and faster processors.

“With all this background, what Apple did was to extend the 16 series with a newer ‘base version’ of iPhone 16 and now retired SE,” Shah explained.

According to industry experts, the company has done well with streamlining the series, reducing fragmentation in design and experience and able to charge $599 (US)/Rs 59,999 (India) with the newest entry point for the best Apple experiences.

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