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Israeli troops briefly raid northern Gaza to ‘prepare’ for an expected full-scale incursion

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Israeli troops and tanks briefly raided northern Gaza overnight, the military said Thursday, engaging with Hamas fighters and targeting anti-tank weapons in order to “prepare the battlefield” before an expected ground invasion.

The third Israeli raid since the war began came after more than two weeks of devastating airstrikes that have left thousands dead, and more than 1 million displaced from their homes, in the small, densely-populated territory.

The rising death toll in Gaza is unprecedented in the decades-long Israeli-Palestinian conflict. The Health Ministry in Hamas-ruled Gaza said Thursday more than 7,000 Palestinians have died in the fighting, a figure that could not be independently verified. Even greater loss of life could come if Israel launches a ground offensive aimed at crushing Hamas, which has ruled Gaza since 2007 and survived four previous wars with Israel.

More than 1,400 people in Israel, mostly civilians, were slain during the initial Hamas attack, according to the Israeli government.The damage to Gaza from nearly three weeks of bombardment showed in satellite photos of several locations taken before the war and again in recent days.

Entire rows of residential buildings simply disappear in the photos, reduced to smears of dust and rubble. A complex of 13 high-rises by the sea was pounded to dust near Gaza City’s al-Shati refugee camp, leaving only a few tottering bits of facade. Just down the street, hardly anything remained in what had been a neighborhood of low-built homes on winding lanes, according to the photos by Maxar Technologies.

New strikes Thursday leveled more than eight homes belonging to an extended family, killing at least 15 people in the southern city of Khan Younis. In the chaotic wasteland of crumbled concrete and twisted metal, rescuers lifted the body of a boy from beneath a slab.

The Israeli military said an airstrike killed one of two masterminds of the Oct. 7 massacre, Shadi Barud, the head of Hamas’ intelligence unit. The military says it only strikes militant targets and accuses Hamas of operating among civilians in an attempt to protect its fighters.

Palestinian militants have fired thousands of rockets into Israel since the war began. One struck a residential building in the central city of Petah Tikva, without wounding anyone.

Hamas’ military wing said Thursday that Israeli bombardment has so far killed about 50 of the at least 224 hostages the militants abducted during its Oct. 7 assault. There was no immediate comment from Israeli officials, who have denied previous, similar claims.

Family members and Jewish groups are trying to keep the spotlight on the hostages’ plight. In Paris, 30 empty baby strollers were displayed in front of the Eiffel Tower — each with a photo of one of the children taken from Israel. A day earlier, blindfolded teddy bears with photos of the abducted children were placed in front of a fountain in Tel Aviv.

The conflict has threatened to ignite a wider war across the region.

Hezbollah, an Iranian-backed ally of Hamas in Lebanon, has repeatedly traded fire with Israel along the border. The United States has sent to the region two aircraft carrier strike groups, along with additional fighter jets and other weaponry and personnel.

In a statement Thursday night, U.S. Defense Secretary Lloyd Austin said the strikes in eastern Syria were “a response to a series of ongoing and mostly unsuccessful attacks against U.S. personnel in Iraq and Syria by Iranian-backed militia groups that began on Oct. 17.”

He said President Joe Biden directed the narrowly tailored strikes “to make clear that the United States will not tolerate such attacks and will defend itself, its personnel and its interests.” He added that the operation was separate and distinct from Israel’s war against Hamas.

Israel has vowed to crush Hamas’ capacity to govern Gaza or threaten Israel again but also says it doesn’t want to reoccupy the territory, from which it withdrew soldiers and settlers in 2005. That could prove a daunting challenge, since Hamas is deeply rooted in Gaza, with political and charity organizations as well as a formidable armed wing.Benny Gantz, a retired general and a member of Israel’s war Cabinet, said any possible ground offensive would be only “one stage in a long-term process that includes security, political and social aspects that will take years.”

“The campaign will soon ramp up with greater force,” he added.

The overnight raid into Gaza was the largest of several known brief incursions. The military said soldiers and tanks killed fighters and destroyed tunnels and anti-tank missile launching positions. The military said no Israelis were wounded. There was no immediate confirmation of any Palestinian casualties.

Daniel Hagari, a military spokesman, said the incursion was “part of our preparations for the next stages of the war.”

Israel also said it also carried out around 250 airstrikes across Gaza in the last 24 hours, targeting tunnel shafts, rocket launchers and other militant infrastructure. Its reported targeting could not be independently verified.

The figure of 7,000 deaths reported by the Gaza Health Ministry is more than three times the number of Palestinians killed in the six-week-long Gaza war in 2014. The ministry’s toll includes more than 2,900 minors and more than 1,500 women.

After Biden said he had “no confidence” in Gaza’s casualty figures, the Health Ministry on Thursday countered by releasing a more than 200-page document listing the names of 6,747 dead, including ages and gender. It said another 281 dead had not been identified and that hundreds still missing under rubble were not included in the count.

The warning by the U.N. agency for Palestinian refugees, UNRWA, over depleting fuel supplies raised alarm that the humanitarian crisis could quickly worsen. Israel is still barring deliveries of fuel — needed to power generators — saying it believes Hamas will take it for military use.

About 1.4 million of Gaza’s 2.3 million residents have fled their homes, with nearly half of them crowding into U.N. shelters. Hundreds of thousands remain in northern Gaza, despite Israel ordering them to evacuate to the south and saying that those who remain might be considered “accomplices” of Hamas.

In recent days, Israel has let more than 70 trucks with aid enter from Egypt.“This is a small amount of what is required, a drop in the ocean,” said William Schomburg, an official with the International Committee of the Red Cross in Gaza. “We are trying to establish a pipeline.”

Elsewhere, Egyptian state-run media outlet Al Qahera News reported early Friday that an explosion hit the Egyptian resort town of Taba, which is near the border with Israel. Five people were wounded. The cause of the blast was not immediately clear, and The Associated Press could not immediately confirm the details.

Nine Arab countries — including key U.S. allies and nations that have signed peace or normalization deals with Israel — issued a joint statement Thursday calling for an immediate cease-fire and an end to the targeting and death of civilians.

“The right to self defense by the United Nations Charter does not justify blatant violations of humanitarian and international law,“ said the statement, signed by Egypt, Jordan, Bahrain, The United Arab Emirates, Saudi Arabia, Oman, Qatar, Kuwait and Morocco.

In the occupied West Bank, Israeli authorities detained 86 Palestinians, including five women, in multiple raids overnight, bringing the total detained there to more than 1,400, according to the Palestinian Prisoners Club, which represents former and current prisoners. At least 104 Palestinians have been killed in violence in the West Bank.

Tata Steel Rating: Hold| Mega merger to bring in material benefits

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By Edelweiss research

We perceive the Tata Steel (TSL) board approving the amalgamation of seven subsidiaries with the parent as a prudent step. Key points: (i) Lower iron ore cost for subsidiaries such as TSLP and Tata Metaliks. (ii) Iron ore assets of the group are likely to be balanced through the lease life. (iii) Potential synergies across sales, marketing, procurement and logistics likely to accrue over medium to long term. For the TSL stock, we see the near-term benefits of cost/operating synergies being offset by potential dilution; however, the stock prices of subsidiaries are likely to recalibrate to the ones implied by the swap ratio. Maintain ‘HOLD’ on TSL with an unchanged TP of Rs 98.5/share on 5x Q2FY24e Ebitda.

Also Read: FPIs pump in Rs 8,600-cr in Sep; pace of investment slows

Streamlines product portfolioWe see the group’s long products’ strategy getting a firm direction as there could be sharper management oversight on expansion plan/integration of NINL. Besides, TSL’s existing long portfolio is likely dovetail with the proposed expansion, resulting in optimisation of product offerings. In our view, the amalgamated subsidiaries are also likely to benefit from TSL’s existing client base. On the procurement front, common sourcing of key raw materials such as iron ore and limestone would also reduce cost.

Outlook: Benefits to be realised over time; maintain ‘HOLD’ We perceive the proposed amalgamation scheme in line with management’s strategic intent of simplifying the structure and unlocking value. In our view, the benefits of lower iron ore royalty cost are likely to be immediate, but the more strategic ones such as portfolio optimisation, sharpened focus on long products and cross-functional benefits are likely to accrue over a period of time. In terms of the stock reaction, for Tata Steel, we see the benefits of incremental Ebitda from subsidiaries to be offset by dilution in shareholding. The stock prices of listed subsidiaries are however, likely to recalibrate to the one suggested by the swap ratio. We maintain ‘HOLD’ on TSL with an unchanged target price of Rs 98.5 on 5x Q2FY24e Ebitda. Other listed subsidiaries of TSL are not rated.

Union Budget 2021: Select sectors to drive earnings; buy these stocks ahead of Budget

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Indian share markets are witnessing volatility ahead of Union Budget 2021. BSE Sensex and NSE Nifty 50 rose to record highs of 50,184 and 14,753 points, respectively, last week. Since then Sensex has tumbled 1,290 points or 2.56 per cent, while the NSE’s Nifty 50 index lost 382 points. BSE market-capitalisation has also fallen to Rs 195 lakh crore from an all-time high of Rs 199 lakh crore hit yesterday. Vinit Bolinjkar, Head of Research, Ventura Securities Ltd, sees a limited upside in Indian share market from the current levels. Further, the execution of budget announcements will sway the market sentiment. In an interview with Surbhi Jain of Financial Express Online, he also talked about a few sectors that will drive earnings in the coming days.

Where do you see BSE Sensex, Nifty 50 on Budget day? Which sectors are likely to remain in focus?

With new IPOs hitting the markets, what would be your advice to investors?

Quality and pricing are to be kept into consideration. We will see optimization in the IPO market. Only quality businesses are expected to sustain their valuation and do well in future. One has to look at the promoters/board of directors/stakeholders, quality of the business, business outlook and valuation before investing in any IPO.

What would be an appropriate strategy for Nifty Bank traders?

The investors should hedge the long futures. We are bullish on the Indian market but global sentiments could create volatility. To mitigate it we would recommend hedging the long futures.

What do you make of call-put option data ahead of Union Budget 2021?

Shooting VIX and our proprietary tools suggest that we have initiated a short term downtrend at least till expiry.

Which three sectors do you think will drive earnings in near-medium term and why?

As mentioned earlier, infrastructure, agriculture and manufacturing will remain in focus. Global investors are bullish on India, and with the intent to capitalize this opportunity govt could raise funds through overseas bonds. Infrastructure and capital goods companies could be the key beneficiaries. PLI scheme for mobile & allied equipment, API and medical equipment is likely to be extended to other manufacturing goods such as consumer durables, capital goods, etc and export-focused companies could be the key beneficiaries. The government may focus on the entire agricultural value chain to improve productivity and reduce post-harvest losses while ensuring adequate realisation for the farmers. Therefore the focus would be more on the roll-out of DBT for fertilizer subsidy.

What are your overweight and underweight sectors/stocks in the run-up to the Union Budget 2021?

We would recommend BUY on stocks in infrastructure, fertilizers, capital goods and consumer durables. Larsen & Toubro Ltd and RITES are our bets in infrastructure space, while Siemens, Cummins India and AIA Engineering are well-positioned in the capital goods segment.

Muthoot Finance Rating: Buy | Better times ahead for the company

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By Kotak Institutional Estimates

We believe that the withdrawal of teaser rate loans and better pricing discipline will support Muthoot’s near-term net interest margin (NIM). Gold price tailwinds due to a depreciating INR will augur well for Muthoot’s medium-term growth prospects. We remain positive and upgrade the stock to BUY (from ADD) with a revised Fair Value of Rs 1,240 (22% upside).

Rising competitive pressures had prompted Muthoot to launch teaser loans in December 2021 that put pressure on its NIM for two subsequent quarters. The company stopped the scheme in April but the entire portfolio was shifted to higher-yielding loans by June 2022. Increasing credit growth in the system will likely prompt these players to shift focus away from gold loans that tend to be a low-ticket, low-duration and high-velocity business.

Also Read: One 97 Communications Ltd Rating: Overweight | Margin improvement in payment business

Valuation undemanding despite improving underlying securityWe remain assertive on Muthoot’s business model to deliver ~20% RoE and low-to-mid teens medium-term growth. Credit cost remains low due to solid underlying security and Muthoot’s risk-management systems that have ensured strong portfolio performance over cycles. Growth has, however, been volatile linked to gold price movements and auctions. While we are not revising our estimates, we find upside risks from a depreciating INR supporting gold prices. Valuations at 7.6X earnings and 1.5X book FY2024E are undemanding. BUY; RGM-based FV stands at Rs 1,240 .

Shaping ethical user experiences: India’s draft guidelines on dark patterns need a lot more nuancing

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By Anupam Shukla & Abhishek Gaur

The phrase “dark patterns” was introduced in 2010 by Harry Brignall, an expert in user experience (UX). In essence, dark patterns refer to user interfaces (UIs) intentionally crafted to deceive, manipulate, or compel users into specific actions, often contrary to their preferences. These manipulative techniques strategically leverage cognitive biases, including the perception of scarcity, urgency, and the weight of social validation. Consequently, users often find themselves pressured to make hasty choices, driven by fear or the desire to avoid missing out.

Notably, India has also made significant strides in this regard by recently introducing the draft Guidelines for Prevention and Regulation of Dark Patterns (“Guidelines”). As per the Guidelines, “dark patterns” encompass deceptive design tactics within UIs and UXs on digital platforms. These practices aim to mislead users into unintended actions, undermining their autonomy. Under the Guidelines, certain specified dark patterns have been defined and illustrated with examples, to bring more clarity. These include practices such as false urgency, basket sneaking (the surreptitious addition of items without user consent), confirm shaming (utilising fear or guilt to influence user actions), forced actions (imposing additional purchases), subscription traps, interface interference (manipulating information presentation), bait and switch tactics, and drip pricing (concealing costs or delaying price disclosure). The Guidelines aim to prevent such tactics to protect consumers from misleading or coercive practices on online platforms.

The Guidelines are intended to be extended to all platforms systematically offering goods or services in India, advertisers, and sellers. This broad applicability ensures that a wide range of digital entities can be held accountable. The Guidelines are issued in exercise of the powers conferred by the Consumer Protection Act, 2019 (CPA) and can be read as an extension to the concept of “unfair trade practices” as envisaged under the same.There was a need for such guidelines in India due to a combination of cultural and economic factors. India’ diverse and expansive digital user base includes people with varying degrees of digital literacy. This diversity makes users particularly vulnerable to deceptive design tactics.

Culturally, trust plays a significant role in Indian consumer relationships, and the exploitation of that trust through dark patterns can erode this vital foundation. Economically, India’s digital market is growing rapidly and exposing it to unscrupulous practices may potentially hinder this growth and result in financial losses and compromised user confidence. Strengthening the regulatory framework can enhance user trust, encouraging more meaningful engagement and increased business revenue. Overall, these regulations can create a more equitable digital ecosystem, safeguarding both users and businesses from the negative impact of deceptive practices.

However, the Guidelines are not flawless, and a few shortcomings come to mind. First, the effectiveness of these regulations heavily depends on enforcement. Without a robust enforcement mechanism and adequate resources, regulating dark patterns on a vast and rapidly evolving digital landscape, such as ours, may prove challenging. Regulators will also need to stay ahead of new deceptive tactics that will keep on emerging.Second, nagging, as a form of dark patterns under the Guidelines, is relatively broad in its definition as determining the threshold between “effective marketing” and “undue interference with the user experience” can be subjective. This lack of clarity may lead to disputes and litigation, requiring a more precise delineation of this dark pattern.

Lastly, stricter regulations pose numerous challenges to businesses. Compliance costs can be substantial, particularly for smaller enterprises, necessitating significant investments in redesign and testing to ensure UIs meet the guidelines. Furthermore, some businesses might struggle to design UIs that are both user-friendly and compliant with the regulations. Resource allocation would be another possible concern, with the need for additional resources in areas like compliance monitoring, legal support, and employee education to ensure full adherence to the regulations. While these challenges highlight the complexities of implementing the Guidelines, they also underline the importance of a balanced approach to safeguarding consumers and supporting businesses.

The introduction of the draft guidelines on dark patterns in India is a significant step toward safeguarding consumers in a rapidly growing digital landscape. The Guidelines align with global efforts to combat deceptive design practices, ensuring transparency and trust. While they exhibit some imperfections, continued refinement and diligent enforcement can help create a more equitable digital ecosystem, benefiting both users and businesses. The collective international recognition of the need for such regulations underscores their relevance and importance in the digital age.

Writers are respectively, partner and associate, Pioneer Legal

Buy these two stocks for near term gains as bulls continue to push Nifty higher

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By Nagaraj Shetti

Nifty continued with a sustainable upmove for the second consecutive session on Wednesday and closed the day higher by 123 points. Nifty registered a new all-time high at 14666 in the latter part of the session. Another long bull candle was formed, which indicate an uptrend continuation pattern. The previous four sessions decline has been retraced completely in the last two sessions. This faster retracement could signal further upside in the short term.

The immediate support of 10 day EMA has proved to be a false downside breakout and that led to a sharp upside reversal. As per this pattern, this 10 period EMA could be tested again during next dip, after moving into new highs above 14666-14700 levels. On the upper side, the long term trend line resistances as per monthly chart) could come into play.

The short term trend of Nifty continues to be positive and Wednesday’s upmove could be a confirmation of bullish reversal from the lows. One may expect further upside for the next few sessions, before encountering a next crucial overhead resistances around 14800 levels. Immediate support is at 14550. 

Stock Picks: 

Buy SBI Cards & Payment Services Ltd (CMP Rs 997.15) 

After showing a range movement in the last 8-9 sessions, the stock price has witnessed a sharp upside bounce on Wednesday. We observe positive chart pattern like higher highs and lows, which indicate strength of an uptrend in the stock price. The volume has expanded during recent upside breakout and daily 14 period RSI is placed around 70 levels. Hence, further uptick of RSI from here could mean further strengthening of upside momentum.

Buying can be initiated in SBI Cards at CMP (997.15), add more on dips down to Rs 960, wait for the upside target of Rs 1100 in the next 3-5 weeks. Place a stoploss of Rs 935.

Buy Godrej Consumer Products Ltd- (CMP Rs 799) 

After showing an upside breakout as per weekly time frame chart at Rs 765 in the last week, the stock price continued with upside momentum so far in this week. This pattern could be a confirmation of valid upside breakout of a larger triangle pattern and one may expect further sustainable upside in the near term. Volume keeps on rising after the upside breakout and the weekly momentum oscillator like RSI/Stochastic signal positive indication.

Buying can be initiated in Godrej Consumer at CMP (799), add more on dips down to Rs 765, wait for the upside target of Rs 880 in the next 3-5 weeks. Place a stoploss of Rs 745.

(Nagaraj Shetti is a Technical Research Analyst at HDFC Securities. The views expressed by the author are his own. Please consult your investment advisor before investing.)

Rupee likely to fall further, dollar index may rise to 114 if US Fed hikes rate by 75 bps in November

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By Jigar Trivedi

The Federal Reserve met expectations and hiked rates by 75 bps. With inflation proving to be far stickier than imagined, the Fed repeated that activity needs to slow much more with the door left wide open for a fourth consecutive 75 bps hike in November. With recession looking virtually impossible to avoid, we see a strong chance of policy reversal later in 2023. The Federal Reserve has hiked the Fed funds target range by 75 bps in what was a unanimous decision and upped its forecasts for rate hikes aggressively.

Also Read: Rupee likely to fall further, dollar index may rise to 114 if US Fed hikes rate by 75 bps in November

A very hawkish Fed

Source: Tradingeconomics, Federal Reserve

More tightening is signalled for 2023 with the year-end rate at 4.6%, before it moves lower to 3.9% for 2024, 2.9% in 2025 with the longer run prediction remaining at 2.5%. To underscore the Fed’s willingness to sacrifice growth to get inflation lower it has cut 4Q 2022 year-on-year GDP growth to 0.2% from 1.7% with 2023 cut to 1.2% from 1.7%. The Fed is effectively acknowledging that a recession is coming, but inflation will not fall quickly and there will be a lot of pain. Note the unemployment rate for next year is expected to reach 4.4% versus the current 3.7% and stay there through 2024 with only a very minor drop in 2025.

Federal Reserve forecasts September versus previous June predictions

Source: Federal Reserve

Another 75 bps hike in November with 50 bps minimum in December

Inflation has been stickier than the Federal Reserve expected and certainly more broad-based. To get it down the economy needs to run below potential, bringing demand into better balance with supply capacity. The only way the Fed can do that is to hike rates and keep policy restrictive until that is achieved. Given the Fed’s aggressive stance and the likelihood that inflation moves little over the next month while job creation remains firm, we expect the Fed to hike 75bp for a fourth consecutive time at the November 2nd FOMC meeting. Come December FOMC meeting, we are more hopeful that we will see clearer signs of moderating price pressure on the lead indicators, but we are also fearing weaker activity data that may be enough to convince the Fed to move more cautiously. 50 bps is our call, which would leave the target range at 4.25-4.5%, but we certainly can’t dismiss the possibility of a fifth 75 bps hike.

Also Read: Rupee falls to fresh lifetime low, slips below 81 for the first time amid strong dollar, high bond yield

In the scenario mentioned above, the dollar index is likely to travel to 113 / 114 levels in sessions to come and the USDINR may hit levels above 81.5 a dollar unless the RBI intervenes. The Reserve Bank of India will hold its monetary policy on 30th September (next Friday) which needs to be closely watched for now. Any further escalation in the geo-political risk between Russia and Ukraine may push energy prices, eventually hurting the rupee. The outlook is bullish in the USDINR but we don’t deny technical correction, still….it could be used for going long.

(Jigar Trivedi, Senior Analyst – Currency & Commodity, Reliance Securities. Views expressed are the author’s own.)

Will bulls stage a comeback or bears drag Nifty to 17150? 5 things to know before share market opening bell

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Indian stock market is likely to open in green on Monday as trends in the SGX Nifty hinted at a positive start for Indian benchmark indices, with a gain of 43 points. In the previous session, the BSE Sensex fell nearly 1,100 pts to 58,841, while the NSE Nifty 50 plunged around 350 pts to 17,531. “Indian markets were the worst performers in the Asian pack on Friday, as higher inflation and likely aggressive rate hikes by the US Fed sent stocks tumbling across the board. We are likely to see strong bouts of volatility in the coming sessions as global slowdown looms large. Technically, the double top formation on daily and intraday charts and bearish candle on weekly charts is indicating further weakness from current levels,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities.

Also Read: ACC, Adani Power, Ambuja Cements, Tata Steel, Paytm, Tata Power, HDFC Life, Indus Towers stocks in focus

Nifty technical view: “A long bear candle was formed on the daily chart, that has engulfed the last 9-10 sessions range movement with positive bias in the last two sessions. Technically, this faster retracement on the downside could mean more weakness for the market ahead. Nifty on the weekly chart formed a long range bear candle with the bearish candle formation like dark cloud cover. Last week’s chart pattern confirms a false upside breakout of the significant resistance of down trend line at 17900 levels. The short term trend of Nifty seems to have reversed down. The formation of bearish candlestick pattern on the daily and weekly chart indicates more weakness ahead for the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch for: “Markets have shown tremendous strength so far amid the global turmoil however the lingering fear of aggressive rate hikes by the US Fed has capped the upside and also trigger intermediate declines. The prevailing market structure combined with cues from the US markets is pointing towards further fall. A breakdown below 17,500 in Nifty could push the index to the 17,150 zone. In case of any rebound, the 17,800-18,100 zone would act as a hurdle. We feel participants should stay light and maintain positions on both sides. Amid all, we reiterate our preference for private banking counters and suggest using correction to accumulate them in a staggered manner. On the flip side, IT and pharma look weak to us and can be considered for short trades,” said Ajit Mishra, VP – Research, Religare Broking.

Trade Setup: “The Indian market performance showed resilience in the last couple of months and outperformed the major global market by a superior margin. We believe macroeconomic factors will continue to influence the market, and in the near term, market performance will be range bound. We could see the reaction in both directions. On Friday, we saw weakness in the equity ahead of the FED meeting scheduled this week. We believe the market is likely to be volatile in the near term as the global central bank could surprise the market by raising interest rates beyond the market’s current estimates,” said Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities.

“The current setup is a ‘Buy on dips’ market, and investors should use volatility in the coming weeks in a phased manner to build a position with a view of 12-18 months in quality companies where earnings visibility is very high. In this context, domestic-oriented themes like Banks, FMCG, Hospitals, Domestic Industrials, and Discretionary consumption are well placed over export + cyclical-oriented themes,” he added.

Also Read: US FOMC meeting preview: Fed may announce 50-75 bps rate hike in Sep monetary policy as inflation persists

Stocks under F&O ban on NSE: Indiabulls Housing Finance, India Cements, PVR, and RBL Bank are the four equities under the NSE F&O ban list for September 19. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 per cent of the market-wide position limit.

PhantomFX plans to raise funds via SME IPO

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Chennai-based creative visual effects (VFX) studio Phantom Digital Effects (PhantomFX) has decided to raise funds via an SME IPO with fresh equity shares to the public, and to get listed on the NSE-EMERGE platform.

The company said it is aiming to raise a sizeable amount through the issue. PhantomFX, which creates visual effects for feature films, webseries and commercials, has also drawn up expansion plans in India and abroad.

The company plans to set up studios in Kochi, Hyderabad, Coimbatore and Madurai. It is also eyeing expansion of it existing facilities in Chennai and Mumbai. “Currently, we are operating in a 25,000 sq ft area and the studios will be expanded to 1 lakh sq ft area by March next year,” he said.

Also read: FPIs return to Indian equities; invest Rs 1,100 crore in July

It also plans to set up studios in Vancouver and Montreal in Canada, Los Angeles and Delaware in the US, the United Kingdom, and Dubai. “We are also ambitious about exploring other potential offshore markets,” he said, adding, “in all, we will be investing about $1 million”.

PhantomFX also plans 2,000-plus placements within three years, Bejoy said. The company will collaborate with universities and other educational institutions that produce VFX talent for placements.

What’s crippling share market? SEBI boss calls out markets’ polio, smallpox; no view on IPO pricing

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SEBI chairperson Madhabi Puri Buch termed insider trading, front running, and information asymmetry as Indian equity market’s smallpox and polio. She assured that SEBI’s every single policy is back-tested by data. “There is not a single piece of paper now that moves within SEBI that is not backed by data,” Buch said at an event on Tuesday, 13 September. She added that the capital market regulator was trying to keep pace with the evolution of the market. SEBI holds no view on the IPOs pricing, and companies are free to price their issue, which they feel is appropriate for them, Buch iterated. She added that there is a need to manifest the spirit of partnership between SEBI and corporates.

Also read: Inflation may cool off in next 2 quarters, another 50 bps RBI repo rate hike likely in September

Buch noted that the regulator is in a disclosure-based regime, and full disclosures protect all stakeholders. “Every step at SEBI will be taken after recommendations from the advisory committee,” Buch said. The Securities and Exchange Board of India is working to improve trust in capital markets, and see a lot of opportunities for India in the current environment. “SEBI believes that it exists for capital formation for the Indian economy,” the SEBI Chairperson said. She added that trust in the system needs to be protected, otherwise SEBI will fail in its core objective. She also noted that transparency is one important aspect of trust building, which holds importance for SEBI. Nation building is being done on the ground by the corporates who are building businesses, producing products, delivering services to the consumer, and that is what is creating wealth for the nation, she further said.

Also read: FM Sitharaman’s 4-wheel car to drive India’s economic growth: Skills, jobs for youth important; check other 3

Technology is the magic bullet

Talking about public issues and preferential share allotment, Buch said that firms must disclose differences in pricing on the preferential allotment and subsequent public offer. In regards to litigation against managerial personnels, SEBI Chairperson advocated consulting, saying “SEBI has plenty to do if firms fail to disclose litigation against managerial personnel in offer documents. Our working assumption is that the world is too complex, thus we must consult.” Buch believes that technology is the ‘magic bullet’ as according to her with technology, it is possible to reduce cost, serve the customer better, have better control, and compliance.