Month: March 2024

Nifty near 18K: Market pundits call for caution

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By Ashley Coutinho

Market pundits are calling for caution amid a surge in Indian equities since mid-June and the benchmark 50-share Nifty nearing a decisive resistance level of 18,000.

“I am at a loss to explain why markets are not reacting more negatively to the bleak global economic outlook,” said Andrew Holland, CEO, Avendus Capital Public Markets Alternate Strategies. “The fall in commodity prices may have raised hopes that inflation has peaked. FPIs have returned due to a possible portfolio rebalancing after a prolonged bout of selling from October to June.”

The turnaround in FPI inflows into equity markets and rising expectations of India’s inclusion in the global bond market indices have led to a stable currency and resilient bond markets over the last month.

Rising interest rates in the US have put emerging market economies with large import bills and dollar-denominated debt on the back foot. JP Morgan analysts put an ‘underweight’, or ‘sell’ sign, on international emerging market (EM) sovereign debt on Friday.

Also Read: Mcap of 7 of top 10 most valued firms climb over Rs 1.33 lakh crore; TCS, Reliance lead gainers

India stands out among the EMs because of its currency stability, growth prospects, robust forex reserves as well as relatively low levels of external debt, current account and fiscal deficits.

A return to risk-off trade, however, could spell bad news for the country, says Holland. “India will not be totally immune to a global sell-off even if our growth prospects are better. But the hope is that if global markets correct by, say, 10%, India will go down by maybe 5% as the country looks relatively more attractive in the EM pack.”

The US Federal Reserve is expected to raise rates by 75 basis points this month. The European Central Bank raised its key interest rates by an unprecedented 75 bps last week in a bid to tame inflation amid worries of a looming recession.

“A key variable to track is crude oil prices since the Indian market is quite vulnerable to higher oil prices. Moreover, the consequences of a coordinated global central bank balance-sheet tapering exercise need to be closely watched because it has the potential to lead FPIs to a robust risk-off stance,” UR Bhat, director at Alphaniti Fintech, said.

Brent crude oil prices have slid 25% over the last three months.

“While there is a lot of talk of decoupling and a robust market in light of the global scenario, India is neither immune, nor isolated from the headwinds and knock-on affects of a possible global recession, high energy costs, rising rates and inflation,” said Arun Chulani, sponsor & investment adviser, First Water Capital, a category III Alternate Investment Fund (AIF).

Valuations are a concern. Over the last 12 months, the MSCI India index (4%) has outperformed the MSCI EM index (-24%) by a wide margin. The Nifty now trades at 21x FY23E EPS, comfortably above its long period average.

“With the post-Covid earnings momentum at play, equity valuations have corrected from the 2021 peaks but are still some distance away from the value zone. The current valuations are well in excess of one standard deviation away from the historic mean,” Bhat said.

With interest rates on the rise, the historic mean has less significance than in normal times. He added: “On a price to book basis, the valuation premium is even more stark. For valuations to come within the fairly valued zone, earnings have to surprise positively or some meaningful correction has to happen.”

Jefferies believes that the IT sector remains at significant risk in case of a sell-off. “Any potential market correction will likely emanate out of hawkish stance by the Fed and the likely stagflation worries. That could hit the IT sector,” it said in a recent note.

Punjab National Bank Q2 profit rises 327% on strong advances

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The net profit of Punjab National Bank rose 327% year-on-year in July-September quarter, aided by a growth in its loan book and lower provisions.The state-owned bank posted a net profit of Rs 1,756 crore, up 40% on a sequential basis.

The net profit was much higher than the Rs 1,163 crore estimated by Bloomberg.

Retail loans rose 40.2% year-on-year to Rs 2.2 trillion as on September 30. Of the retail portfolio, core retail rose nearly 17% year-on-year to Rs 1.5 trillion.

Personal loans rose 39% to Rs 19,868 crore.

Home loans and vehicle loans rose 14% and 28.3%, respectively.

Agriculture segment rose 4.5% to Rs 1.5 trillion. Micro, small and medium-sized enterprises (MSME) segment rose 6.5% to Rs 1.4 trillion.

The share of retail, agriculture, and MSME loans within the overall portfolio rose 218 basis points (bps) to 55.6% as on September 30.

Corporate loans and other segments rose 8.3% to Rs 4 trillion as on September 30.

Domestic deposits rose 9.4% to Rs 12.8 trillion.

Total term deposits rose 15.3% to Rs 7.7 trillion as on September 30. Low-cost current account savings account deposits rose 2.6% to Rs 5.4 trillion.

CASA share to domestic deposits fell to 42.15% as on September 30 from 44.9% a year ago.

Net interest income, difference between interest earned and interest expended rose nearly 20% to Rs 9,923 crore in the quarter under review. Net interest margin rose to 3.24% in the September quarter from 3.11% a year ago.

However, the state-owned bank’s cost of funds rose to 4.21% as on September 30 from 3.39% a year ago.

ASSET QUALITY

Domestic gross non-performing asset ratio fell to 7.06% as on September 30 from 10.7% a year ago. Gross non-performing asset ratio was highest in the MSME, and agriculture segment.

Provisions fell nearly 30% to Rs 3,444 crore in the quarter under review.

Slippages ratio fell to 0.86% as on September 30 from 3.34% a year ago.

Cash recoveries and upgrades were Rs 3,498 crore in the quarter under review. Fresh slippages were Rs 1,750 crore. The bank wrote-off bad loans worth Rs 3,665 crore in the quarter under review.

The bank recovered loans worth Rs 5,333 crore in the September quarter.

Provision coverage ratio rose to 91.9% as on September 30 from 83.96% a year ago. Capital to risky asset ratio rose to 15.09% as on September 30 from 14.7% a year ago.

Expect monthly payment from Vodafone Idea to continue: Indus Towers

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Indus Towers, the country’s largest mobile tower company, on Thursday said the company expects one of its largest customers – Vodafone Idea – to continue clearing its monthly bills. Without naming Vodafone Idea, the towers company said it is engaging with the telecom operator to chalk out a ‘time-bound’ plan to clear past dues as well.

“While the customer (Vodafone Idea) had some challenges during the quarter, we received the monthly payment in October. Our expectation is that the monthly payment will continue and we will continue to charge as per the MSA (master services agreement) rates,” said Prachur Sah, MD and CEO, Indus Towers, at the July-September earnings call.

Comments from Sah assumes significance as Vodafone Idea owes Indus Towers about Rs 5,653 crore till September end, for which the towers company has made a provision for doubtful debts. Further, at a time when Indus has elevated its capex to support tower and tenancy additions, it is crucial for the company to recover past dues from Vodafone Idea.

In the September quarter, Indus Towers’ trade receivables rose 16.6% sequentially to Rs 6,186 crore. The company created an overall net provision for doubtful debt of Rs 1,335 crore during the quarter. Analysts said there was a minor provision of Rs 130 crore that Indus Towers created related to Vodafone Idea during the quarter.

“We have not written off any dues of the customer (Vodafone Idea). We do expect 100% or near 100% payment from the customer to continue,” said Vikas Poddar, CFO, Indus Towers.

Poddar added: “There was some financial commitment that the customer had in the previous quarter, but that hump is pretty much over.”

Even as Indus Towers said it is keeping a close eye on Vodafone Idea’s fundraising plan, any clearance of past dues by the telecom operator would come only when they raise funds.

Owing to higher capex, Indus Towers witnessed a negative flow of Rs 1,027 crore in the September quarter.

According to Sah, on the back of a healthy order book with Bharti Airtel expanding aggressively in rural areas as well as 5G rollouts, the capex will continue to be elevated.

Analysts said Indus Towers incurred a capex of Rs 2,300 crore in the September quarter, up from Rs 2,200 crore in the preceding quarter.

During the quarter, Indus Towers added 5,928 towers, taking total macro towers to 204,212. The company’s co-locations rose by 5,583 to 353,462.

“The quarter marked Indus Towers reaching a milestone of 200,000 macro towers, reaffirming its leadership position,” Sah said.

Indus Towers’ revenue from operations rose 0.8% quarter-on-quarter (q-o-q) to Rs 7,132.5 crore. The company’s net profit fell 4% q-o-q to Rs 1,295 crore in the July-September quarter.

Top i-banks under Sebi lens over possible disclosure lapses

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The Securities and Exchange Board of India (Sebi) has initiated inspections of top investment banks on past deals spanning initial public offerings, qualified institutional placements, rights issues and offers for sale, said three people familiar with the matter.

The inspections are being carried out by the capital markets regulator’s surveillance teams and encompass a granular check on disclosures and due diligence on past deals, especially with regard to issue objectives, capital structure and litigation.

Also read: S&P 500 companies earnings growth in the next quarter to be in focus from now on

“The inspections began about a month back and will cover several of the top i-banks. The aim is to ascertain if regulations governing merchant banking activity have been adhered to or not,” said a senior banker.

At the time of filing, lead managers have to certify that the disclosures made in the offer document are generally adequate and in conformity with Sebi regulations for disclosures and investor protection. Sebi, however, reserves the right to take up, at any point of time, any irregularities or lapses in the offer document with the managers. Also, the filing of offer documents does not absolve the company from any liabilities under section 34 of the Companies Act, 2013.

“Three to four surveillance officers are being deployed at banker premises for 2-3 days for deals going as far back as five years or more,” said another person familiar with the matter. “Sebi is taking a closer look at disclosures that were given, the kind of due diligence that was done and the back-up, or supporting documents, provided during the deals.”

The regulator may or may not give a heads-up to the banker for the inspection of a particular deal. The banker has to give live responses to the extent possible. In some cases, bankers have to reach out to the company for clarification or back-up documents, said the person quoted above.

The inspections can result in warning letters being issued to bankers, penalties or even show-cause notices. In case of gross negligence or wilful misconduct, the regulator can cancel the registration certificate of the investment banks.

In 2016, for instance, Edelweiss Financial Services, SBI Capital Markets and Axis Capital were fined `1 crore each for non-disclosure of important facts in the 2010 IPO prospectus of Electrosteel Steels.

Also read: Our growth in FY23 will be 30% higher than last year: Sanjay Dutt, MD and CEO, Tata Realty & Infastructure

“While inspections have happened in the past, the process was more ad-hoc. Sebi seems to be trying to make the process far more stringent and formalise it similar to RBI’s inspection of banks. You may see a lot more show-cause notices being issued this time around, and not just warning letters,” said a third person.

An email sent to Sebi did not immediately get a response.

The Banking Regulation Act, 1949, empowers the RBI to inspect and supervise commercial banks. These powers are exercised through on-site inspection and off-site surveillance. On-site inspection of banks is carried out annually.

Sebi had recently carried out a few inspections at offices of alternative investment funds to examine whether the funds complied with portfolio concentration norms and timely disclosures to investors, among other things.

McCain Foods’ 2 new launches: McCain popcorn fries and McCain cheesy pizza fingers

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McCain Foods, a frozen food brand, announced the launch of two new products, thus expanding their portfolio, McCain Popcorn Fries and McCain Cheesy Pizza Fingers.

The company promises to deliver unparalleled taste and crunchy delight in every bite, a snacking experience for Indian consumers, loved by kids and adults alike.

McCain Cheesy Pizza Fingers is a blend of two all-time favorites- Mozzarella Cheese and Pizza, making consumers’ get-togethers extra ‘cheeeesy’. A sumptuous combination of cheese and taste of pizza.

Loved by kids and adults alike, it is the ultimate party companion, effortlessly bringing the joy of pizza and the creaminess of cheese in one bite. In less than 3 minutes, consumers can experience this distinctive cheesy snack with Italian-style herbs, all from the comfort of their homes.

The two new products have been launched via Digital Video Campaigns (DVCs) highlighting the deliciousness, irresistibility and universality of both the products. There is more to come with consumer contests and influencer integrations to continue the buzz around the launches. Popcorn Fries can even be spotted on bus shelters around major cities in a OOH campaign.

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Sanjiv Bhasin’s stock picks for next 5 months; sees Nifty at 15,000, Bank Nifty near 34,250 by May-end

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Indian share market benchmarks BSE Sensex and Nifty 50 have been witnessing volatility amid the second COVID-19 wave. Due to this, foreign institutional investors (FIIs) turned net sellers in the month of April, after being net buyers for six consecutive months. Sanjiv Bhasin, Director, IIFL Securities Ltd, told Surbhi Jain of Financial Express Online in an interview that the US and other developed markets outperformed in the previous month, which encouraged near term shift of money. In April, US stock indices surged up to 5.4 per cent, while Sensex and Nifty fell as much as 1.5 per cent. Sanjiv Bhasin said that he is overweight on pharmaceuticals, banking sector stocks among others. Here are edited excerpts from the interview:

FIIs turned net sellers and sold Rs 10,000 cr shares in April after remaining net buyers for the 6 straight months. What fuelled FIIs selling in April?

How do you see Indian share markets in May? Do you see more downside, which sectors should investors watch?

Range bound, as local funds will support the downside with marginal selling by foreign investors. However, as soon as you peak in Covid cases which could be by the second week May, expect last week’s rally which could take you back to 15,000. Pharma, metals, banks, and autos will lead the rebound.

A record number of demat accounts opened in FY21, do you expect the same in this fiscal and why?

There is no better asset class than equities for the Indian context over the next 10 years as growth rebound strongly with double-digit GDP growth which implies that in all asset classes equities will see retail interest growing manifold.

Where do you see the Nifty 50 and Bank Nifty in May series? What would be an appropriate strategy for traders?

Nifty 50 index at 15,000 level by end May and Bank Nifty close to 34,250 levels. Do a SIP (systematic investment plan) in select stocks or indices.

What are your overweight and underweight sectors? Which stocks do you expect to deliver decent returns in the 3-5 months horizon?

Overweight sectors are Pharma, Midcaps, Banks and Auto. While underweight sectors are Metals and Consumer Discretionary. The top stock picks for the 3-5 months horizon are Lupin, Escorts, RBL Bank, HDFC Bank, Tech Mahindra and NBCC (India) Ltd.

Going ahead, what factors would drive the stock markets and what are the key risks?

Missing the next wave of reopening which could see huge spending from consumers and unleash huge profit for Corporate India, global liquidity in abundance and huge impetus to buy stocks as global markets led by the US hit new all-time highs. Rise in cases persisting, with vaccine drive seeing obstacles could derail the recovery temporarily.

Planning to Buy a Car? Find Out the Best Months for Awesome Deals!

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India’s love affair with cars continues to grow stronger, with the automobile industry showcasing remarkable resilience. According to the latest industry data, India witnessed an increase in total vehicle sales, with passenger vehicle sales reaching 38,90,114 units in FY 2022-23 as compared to 30,69,523 units in the previous year. This reflects the growing aspirations of India’s burgeoning middle class.

Speaking of the growing middle class, buying a car is a significant milestone, a decision that blends practicality with passion. But, beyond the make and model, there’s another crucial factor that often goes overlooked – timing. In India’s dynamic auto market, the timing of your car purchase can significantly impact the deal you get. That’s when the most crucial questions arise- when is the perfect month to drive home the dream car, what are the nuances of ‘when to buy a car in India’, and how can we decode the ideal months for the dream car purchase. You can also check car insurance calculator which is a useful tool that helps individuals estimate their insurance premiums based on various factors such as vehicle type, location, driving history, and coverage options.

Let’s take a journey through the calendar year and uncover the best months to buy a car in India:

New Year, New Models (January-February): As the new year begins, automakers unveil their latest models and Auto Expos also showcase new models and concepts that generate excitement amongst the early adopters. While this may lure buyers, there are dealers who often offer significant discounts to clear old model-year stock. The clearance sales include year-end bonuses, making it ideal for bargain hunters looking for last year’s models.

Financial Year-End Closures and Offers (March): March is significant for both buyers and businesses as the financial year ends. The car manufacturers and dealerships often pull out all the stops to attract buyers. Attractive incentives, discounts, and offers make March an excellent time for car shopping, especially if you’re looking for tax benefits.

Mid-Year Lull (April to June): This is the period after the year-end and before the festivities and therefore, it has been seen that there is a slow-down in car sales. In order to increase sales, dealerships offer attractive discounts and financing options, which can turn to your advantage.

Monsoon Blues (July) – The monsoon season often results in lower car sales due to weather-related concerns. To maintain cash flow, dealerships may offer attractive deals to boost sales during this period.

Pre-Festive Shenanigans (August): This is the time when India is preparing for festivals and getting in the excitement for pre-festivities. The month begins with early bird offers. Companies create anticipation for upcoming festival deals and buyers can start planning purchases for the festive season.

The Festival Favorites (September-November): The most exciting time – India’s festive season, from Diwali to Dussehra and Christmas, witnesses a surge in car buying. During this period, automakers roll out enticing discounts and special offers, creating an excellent opportunity for a lucrative deal. If you are planning to buy a car, the festive season can be a good time to welcome the new addition to your family.

Year-End Deals (December): As the year concludes, dealerships are often eager to meet sales targets, leading to substantial discounts. Additionally, manufacturers prepare to introduce new models in January, motivating dealers to clear out the previous year’s stock. With year-end savings, December is indeed a great option for people looking forward to buying a car.

Planning to Buy a Car? Find Out the Best Months for Awesome Deals!

We can all agree that a dream car isn’t just a mode of transportation; it’s a symbol of aspiration, passion, and achievement. It holds a special place in our hearts, and we want the best for our long-awaited dream car. Therefore, it becomes imperative to consider another overlooked aspect of car ownership, i.e., insurance. Just as timing matters for your car purchase, selecting the right insurance policy is essential to ensure comprehensive coverage and peace of mind.

Selecting the right partner for your car insurance can make all the difference and when it comes to the best, you can leave it to the pros in the market. From third-party liability coverage to comprehensive plans, Bajaj Allianz General Insurance can fulfil this role by offering a plan that stands out. *

Why Choose Bajaj Allianz Private Car Package Policies?

One of the key factors that make Bajaj Allianz General Insurance the best insurance partner is its commitment to comprehensive coverage. It offers a wide range of coverage options, including protection against accidents, theft, natural calamities, and more, as specified in the policy wordings. This comprehensive approach ensures that you have peace of mind on the road, knowing that your vehicle is well-protected. * Claims are subject to terms and conditions set forth under car insurance policy.

If you choose the Bajaj Allianz General Insurance policy, you get a hassle-free claim process. The transparency and user-friendliness contribute to a hassle-free experience during the often-stressful time of filing a claim. That’s not it! The car insurance policies from Bajaj Allianz General Insurance comply with legal requirements by providing coverage for third-party liabilities. This ensures that you are financially protected in case your vehicle causes damage to someone else’s property or injures a third party. * Claims are subject to terms and conditions set forth under car insurance policy.

Apart from that, there are additional benefits that policyholders can opt for to enhance their coverage. These include zero depreciation cover, engine protector cover, personal baggage cover, and more. The brand’s flexibility in tailoring policies to individual needs is a significant advantage. To make the process easier, you get transparent Terms and Conditions, 24/7 Customer Support, and easy claim processing. What else one can ask for?

In the pursuit of your dream car, one thing should remain unwavering: the commitment to safety. After all, our dream car isn’t just about style; it’s about providing us with secure journeys and cherished memories. Therefore, as we chase the dream, let’s ensure that our prized possession is not only a symbol of aspiration but also a fortress of protection.

* Standard T&C apply.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Dewas Madhya Pradesh Assembly Constituency Election 2023: Date of Result, Voting, Counting; Candidates

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As anticipation mounts for the upcoming Dewas Constituency Election in Madhya Pradesh, voters are eagerly awaiting the big battle that kicks off with the announcement of key dates by the Election Commission of India. Here, we provide you with essential details about the Dewas Constituency Assembly Election 2023 that every voter should be aware of.

Dewas Constituency Madhya Pradesh Assembly Election 2023: Voting Date

The voting date for the Dewas Assembly Constituency Election 2023 has been officially announced by the Election Commission. As per the ECI, Dewas Assembly Constituency will go to polls on November 17. Stay tuned for updates as we bring you the latest information.

Dewas Madhya Pradesh Election 2023: Candidates

Watch this space as prominent political parties, including the Bharatiya Janata Party (BJP)Indian National Congress (INC)and Independent(IND) along with others, are poised to reveal their candidates for the Dewas Assembly Constituency Election 2023 post the official declaration of voting dates by the Election Commission of India.

Stay informed as we bring you the latest updates on the Dewas Assembly Constituency Election 2023, keeping you abreast of all the developments and insights that matter to you.

Dewas Constituency MP Election Result: What happened in 2018

Gayatri Raje Puar from Dewas of Madhya Pradesh, won the seat with 103456 votes. He defeated Indian National Congress’ Thakur Jaysingh who had polled 75469 votes. The winning margin was 27987 votes.

2018 Dewas Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesGayatri Raje PuarBharatiya Janata Party103456

Candidate List Party Name Votes Gained (Vote %) Gayatri Raje Puar Bharatiya Janata Party 103456 (55.07%) Thakur Jaysingh Indian National Congress 75469 (40.17%) Dilip Bangar Independent 2362 (1.26%) None Of The Above None Of The Above 1871 (1%) Shaikh Qutubuddin Bahujan Samaj Party 1827 (0.97%) Sadhana Prajapati Independent 770 (0.41%) Ishwar Singh Sapaks Party 496 (0.26%) Munni Shath Rajandr Sharma Independent 424 (0.23%) Himanshu Shrivastava Socialist Unity Centre Of India (communist) 398 (0.21%) Ku Sunil Singh Thakur Aam Aadmi Party 247 (0.13%) Ramparsad Bahujan Sangharshh Dal 234 (0.12%) Seshan Kalyane Prajatantrik Samadhan Party 173 (0.09%) Alakhnath Urf Bhagwan Nath Independent 147 (0.08%)

Dewas Constituency MP Election Result: What happened in 2013

In the Madhya Pradesh Assembly election of 2013, Tukojirao Puar won from the Dewas seat garnering 100660 votes and defeated Indian National Congress candidate Rekha Verma who bagged 50541 votes. The candidate who came third was None Of The Above’ None Of The Above.

Tukojirao Puar got 100660 votes while Rekha Verma got 50541 votes.

2013 Dewas Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesTukojirao PuarBharatiya Janata Party100660

Candidate List Party Name Votes Gained (Vote %) Tukojirao Puar Bharatiya Janata Party 100660 (63.52%) Rekha Verma Indian National Congress 50541 (31.89%) None Of The Above None Of The Above 2883 (1.82%) Sharma Bahujan Samaj Party 1737 (1.1%) Ishwar Singh Rajpoot Janata Dal (united) 688 (0.43%) Hazi Hatambhai (darbar) Samajwadi Party 379 (0.24%) Madhuri Bairagi Independent 374 (0.24%) Pankaj Mehta Independent 316 (0.2%) Omprakash Rojwal Prajatantrik Samadhan Party 224 (0.14%) Kamal Soni Independent 224 (0.14%) Narendra Singh Goud Independent 200 (0.13%) Jitendra Mali Independent 148 (0.09%) Iqbal Khan Independent 91 (0.06%)

Dewas Constituency MP Election Result: What happened in 2008

Tukoji Rao Puar of the BJP was the winning candidate from the Dewas constituency in the MP Assembly elections 2008, securing 59474 votes while 34247 votes were polled in favour of Haji Harun Bhai of the INC. The margin of victory was 25227 votes.

2008 Dewas Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesTukoji Rao PuarBJP59474

Candidate List Party Name Votes Gained (Vote %) Tukoji Rao Puar BJP 59474 (57.63%) Haji Harun Bhai INC 34247 (33.19%) Harish Kumar Babbu Patel BSP 2923 (2.83%) Ganesh Patel BJSH 2371 (2.3%) Anil Kumar Singh SP 1658 (1.61%) Dr Sheetal Chouhan IND 998 (0.97%) Rajkumar Thakur SHS 745 (0.72%) Hazzani Nasreen Mukeem Shaikh IND 421 (0.41%) Karunadas Kabir Panthi IND 357 (0.35%)

MCX Gold outguns Comex on weak Indian Rupee, yellow metal may trade sideways; buy on dips for gains

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By Bhavik Patel

It was a see-saw ride for gold traders as prices fluctuated in positive and negative territory after the ECB meeting and Powell statement. Gold prices were pressured by comments from Federal Reserve Chairman Jerome Powell that again leaned hawkish on U.S. monetary policy which led to boosting the U.S. dollar index and U.S. Treasury yields, both of which had been weaker ahead of his speech. Powell’s comments reiterated his stance presented at the Jackson Hole central bank symposium, where he warned that not only will interest rates have to move higher, but they could remain elevated for longer to make sure inflation remains well anchored. Dollar index ahead of speech was on back foot as ECB raised interest rates by 75 bps splurging rally in Euro.

Going forward, the USD is going to be a safe asset as the Euro and the pound will be getting really hurt by the gigantic energy problem that they have, and the amount of money that they’re going to have to spend in order to alleviate people’s energy bills this winter. This would be bad news for gold and we don’t expect gold to give any substantial return this year.

In COMEX, gold has support in the range of $1690-1680. Four times since Feb 2021, gold has bounced from that level. Despite USD trading at 20 year high and US Treasuries trading above 3.00%, gold prices have not seen the destruction as seen in other asset classes like in energy packs or base metals. The recent low was also $1688 and $1691 in the span of two weeks that gold has bounced back. So the area of $1680 remains a strong support zone and gold may witness strong destruction below that level. On the upside, the rally will be limited owing to strong USD as the Fed is on a journey to kill inflation by monetary tightening. 

Also read: Tamilnad Mercantile IPO share allotment: Check status via BSE, grey market premium; listing on 15 Sep

In MCX, gold has made higher low and higher top indicating bullish trend thanks to weak Indian Rupee. MCX gold has outperformed COMEX gold owing to weak INR and is looking strong as prices are above the 200-day moving average on daily scale. Short term resistance comes at 50850 and 51500 while support comes at 50000. Ahead of the 20-21 Sept Fed meeting where US Fed will increase rate hike by 75 bps, expect gold to remain sideways because of strong USD. Any meaningful rally may only come post Fed meet as investors will be reluctant to take a long position ahead of the meet. Buy on dips should be the strategy until $1680 holds in COMEX and 49800 which was a recent swing low in MCX. Upside will be limited till 51000-51500 for next week

(Bhavik Patel is a commodity and currency analyst at Tradebull Securities. Views expressed are the author’s own. Please consult your financial advisor before investing.)

Microsoft CEO Satya Nadella on cricket: it is more than a religion, taught me leadership

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Cricket taught Satya Nadella valuable leadership lessons, the chief executive officer of Microsoft said in an interview recently. This comes as no surprise as Nadella has, time and again, expressed his keen interest in what’s often called the gentleman’s game. The interview of course covers other areas but gaming was touched upon at length, which makes sense, as it comes in the wake of Microsoft finally closing its USD 69 Billion buyout of Call of Duty maker Activision Blizzard. For Microsoft on the whole, gaming “goes all the way back for us as a company “, Nadella reiterated.

On the other hand, he also passed views on cricket. During an interview, he shared that “being an Indian, and a South Asian,” cricket is more than a religion, not just a game. He adds that cricket taught him leadership skills. Ahead of the ICC Cricket World Cup 2023, he shares that cricket taught him to learn from competition after watching a player from Australia in a Hyderabad match. He adds that confidence is one of the key things in leadership.

He highlighted that the gaming industry is undergoing significant transformation, and Microsoft aims to be a major player as both a game producer and publisher. With the acquisition of Activision Blizzard, Microsoft is said to become one of the largest publishers globally. He noted that people are dedicating more time to gaming, especially the younger generation (Gen Z), and the way games are created and delivered is evolving across various platforms, including mobile, consoles, PCs, and the cloud.

Microsoft’s acquisition of Activision Blizzard, particularly the ‘Call of Duty’ franchise, signifies the company’s commitment to expanding its presence in the gaming industry. The addition of Activision Blizzard’s well-known franchises, such as Call of Duty, World of Warcraft, and Candy Crush Saga, strengthens Microsoft’s position as a gaming publisher.

Also Read | Apple AirPods future roadmap leaked: AirPods 4 with ANC, USB Type-C, cheaper model also in works

Moreover, Microsoft’s interest in entering the mobile gaming market aligns with its broader gaming strategy, aiming to provide competition with established players like Google and Apple in this segment.

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