Latest news with #ArunMalhotra
Business Recorder
12 hours ago
- Business
- Business Recorder
Indian equity benchmarks track Asian peers lower on Mideast tensions
India's equity benchmarks inched lower on Monday, tracking Asian peers, as investors assessed the likelihood of Iran's response to the United States' bombing of its nuclear sites. The indexes pared some losses as Brent crude oil futures retreated below $77 per barrel, after hitting a five-month high earlier. The Nifty 50 closed 0.56% lower at 24,971.9 and the BSE Sensex fell 0.62% to 81,896.79, after trading as much as 1.1% lower earlier in the session. The U.S. index futures too recovered, while the MSCI Asia ex Japan was down 0.8%, trimming some losses. Higher crude oil prices are a negative for India, which depends heavily on imports for its energy requirements, as they could stoke inflation and widen the fiscal deficit. 'Most of the market is not buying the argument that Iran would be able to take control of the Strait (of Hormuz) and block oil exports. Moreover, Iran also gets a substantial chunk of its own imports through that route,' said Arun Malhotra, fund manager at CapGrow Capital. Investors are worried that Iran's retaliation to the United States' attacks on its nuclear facilities may include closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows. Indian stocks set to slip after US attack on Iran's nuclear sites However, most analysts and brokerage firms, including UBS, said they do not expect a prolonged supply disruption. Information technology stocks, which get a significant chunk of revenue from the U.S., shed 1.5% after Accenture posted decline in outsourcing orders due to a cutback in U.S. government spending and tariff uncertainty. The broader, more domestically-focused mid-caps and small-caps added 0.4% and 0.7%, respectively, partly driven by gains in shipping and defence companies. Bharat Electronics rose 3.1%, and was among top three Nifty gainers, on securing orders worth 5.85 billion rupees ($67.6 million).
Yahoo
06-03-2025
- Automotive
- Yahoo
Tesla's India Entry Is in Trouble--Here's Why It Might Fail Before It Even Starts
Tesla (NASDAQ:TSLA) is making another run at India, but it won't be a smooth ride. The U.S. wants India to scrap tariffs on auto imports, but New Delhi isn't ready to go that farat least not yet. With tariffs as high as 110%, Tesla has long called out India's protectionist stance, and now President Trump is adding pressure, threatening reciprocal trade measures if tariffs don't drop. While India has already reduced some duties and is reviewing further cuts, local automakers like Tata Motors and Mahindra are pushing back, arguing that a flood of cheap imports would kill domestic investment in EV manufacturing. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Even if Tesla gets the tariff break it wants, there's a bigger problem: price. Industry expert Arun Malhotra points out that even with a 0% duty, a Tesla in India would cost around ?35 lakhway above the price range for 95% of Indian buyers. Meanwhile, homegrown brands like Tata, MG Motor, and Hyundai are already rolling out EVs at much lower prices, making Tesla just another competitor in an already crowded market. At the same time, skepticism is growing around the stability of any U.S.-India trade deal. Trump's track record of tearing up agreementslike NAFTAraises questions about whether any deal made today will hold up tomorrow. For Tesla, the tariff fight might just be a distraction from the real challenge: winning over Indian consumers. The U.S. isn't even a major car exporter to Indiamost imports come from Japan, Korea, and Thailandso reciprocal tariffs mean little in this space. India has already carved out special rules for EV imports, but slashing tariffs to zero? Not likely. Tesla may have political backing, but that won't help if Indian buyers aren't convinced its high-end EVs are worth the premium price. This article first appeared on GuruFocus. Sign in to access your portfolio
