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Time of India
3 days ago
- Automotive
- Time of India
Tesla not interested in manufacturing in India, minister says
Elon Musk 's Tesla is not interested in manufacturing in India, said Heavy Industries Minister Kumaraswamy on Monday, as per an ET Now report. The EV giant is unlikely to manufacture vehicles in the country anytime soon, he said. 'Tesla only wants to open showrooms and sell imported cars,' he said. Kumaraswamy also said India will soon invite applications under its electric vehicle (EV) manufacturing policy. The minister also said Europe's Mercedes Benz, and Skoda-Volkswagen (VW), South Korean Hyundai, and Kia, have shown interest to manufacture EVs in India. Speaking to journalists, he said the application window for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will open soon. After that, the government will start accepting formal applications. The government has announced a scheme that includes significant import tax cuts for foreign automakers that commit to investing in manufacturing electric cars in the country. Under a rewamped scheme, companies will be allowed to import a limited number of electric cars at a lower import duty of 15% versus the current 70% duty if they commit to investing $486 million to build EVs in the country, the Ministry of Heavy Industries said in a statement. Meanwhile, in February, U.S. President Donald Trump said he believes any plans Tesla might have to open a factory in India would be "very unfair." Tesla had recently finalised some showroom space in India and posted more than two dozen jobs, signalling it is getting closer to a launch. Tesla has been mulling an India entry for the past several years and Musk has spoken against India's high import duties, calling them a major barrier to Tesla's expansion in the country. Tesla's gigafactories could boost India's manufacturing and tech sectors by producing EVs, batteries and charging solutions locally. But would they go all in? Tesla also has to be accepted first, and that comes with some challenges. Their direct sales model may need to be adjusted for India's dealer-centric market. Aftersales service, a critical factor, has to be robust. Then there is pricing — India is price-sensitive, with the bulk of the passenger vehicle market below Rs 20 lakh. The cheapest Model 3 retails for $42,490 in the US (around Rs 37 lakh), placing it firmly in the luxury segment in India, even before duties come into play. Initially, at least, these cars will likely be imported from Germany, adding a similar amount to the sticker price in duties, unless US President Donald Trump arm-twists India into cutting tariffs. That limits their market Rajeev Chaba, CEO emeritus of JSW MG Motor India, the India unit of Morris Garages, believes price point will be a challenge for Tesla. Musk, in January, hinted at launching more affordable models in the first half of 2025. A $24,000 car, colloquially called Model 2, has been speculated for years, but that may not happen if news trickling out of China is to be believed, where Tesla is trying to reignite demand with a cheaper, stripped-down version of Model Y instead of a whole new car. If Tesla wants to have more than a token presence in India, it would need to have better pricing, and value-driven offerings, than even China. 'I think India is ready for more players, especially as EV penetration continues to grow. Also, India's EV penetration is still low, with electric passenger vehicle sales accounting for less than 3% of total sales. However, sales have grown substantially, from 5,000 units in 2020 to over 113,000 in 2024. It is this momentum Tesla could tap, especially in the premium segment, Ravi Bhatia, president of automotive consultancy Jato Dynamics earlier told ET.
Economic Times
3 days ago
- Business
- Economic Times
No betting on market till July; AI companies to take a couple of years to take off in India: Ajay Bagga
Ajay Bagga, Market Expert, says Agentic software adoption is growing, with Microsoft leading across platforms, which Indian companies are poised to capitalize. Economic headwinds in China and the US may impact IT spending, necessitating productivity and cost optimization through AI. Data centers are crucial for AI's expansion, presenting opportunities for utility companies and well-funded startups, especially those integrating solar power and storage solutions. ADVERTISEMENT What is your view on the markets because some people hold the view that this year markets could be tough. You have to be selective if you want to make money. What is your assessment? Ajay Bagga: All bets are off till July. July 9th is an important date as the tariff agreements start coming in that will help market sentiment. A 12-month view is quite strong. We will be quite okay on a 12-month basis. For the next 40-45 days, we have to wait and watch. We have seen a lot of back and forth on the Trump administration and those are the two big issues for the world. One issue is the global trade war and where tariffs will eventually settle in and the second big issue is the US fiscal deficit. These are the two things hurting global risk sentiment. In terms of flows, whenever there is a reduction in the tariff risk sentiment, we see flows coming to the US, otherwise we are seeing flows going largely to Europe and to Japan. Some amount coming into emerging markets as well, that also we are seeing. Can India become the services factory of the world? Gautam Trivedi explains ET Now: You just said that flows are likely to go to Europe and Japan and some to the emerging market space. So, within that space, where is India positioned? How do you see the outlook going forward for the Indian market?Ajay Bagga: The Indian market is positioned well, but for the global overhang, we would have seen even better inflows coming into the Indian markets. The issue is global. As far as the domestic macro goes, domestic earnings have been stable, they have not been great, but they have not been highly disappointing as well. It is a stable earnings outlook. Nearly eight months are over, and the ninth month is below the previous all-time high – so in a minor downside. Markets have had a good time to consolidate. Again, the issue has been global and we have seen a return of FIIs in May. We expect that to continue further as well. But more issue is global than domestic and that is why the favoured sectors are also more domestic for now. But in the next six months if we get some more clarity on the Trump policy format, then it could come back and we could see global sectors getting benefited. Otherwise, we are focusing more on the domestically-oriented sectors. ADVERTISEMENT We would love to deep dive more into your preferred sector. But firstly, how do you see the whole chatter around the AI transition because some of the experts also highlight that whenever we have witnessed a technology transition, the Indian companies have adopted it very well but at a later stage. Help us with your assessment of the AI boom because some of the US and even Chinese companies are taking the leap. How will Indian players transition to that? Ajay Bagga: It is catching up. You are getting the end use cases. Agentic software is being launched. A lot of it will be how Microsoft is approaching it, where they have put their software on every cloud platform. They are not only limiting themselves to Azure, but they are going across a lot of platforms and giving end use solutions to customers for that. I think Indian companies will jump start that. We will see a lot of that coming in. But the big issue is the Chinese slowdown and the US looming slowdown. We are looking at 0.5% growth in the US for this year, next year 1.6% as against about a 2.5% growth that the last three years were seeing. There is some amount of slowdown in the US and what gets cut is first marketing and then software development and that is what our companies are facing. We have to have a strong productivity push or a cost cut push that we are optimising or are reducing employment by bringing in AI agents. We have not transitioned to those kinds of things yet and nobody in the world has brought that singularity into AI yet. ADVERTISEMENT The agents are very poor in comprehension and in offering solutions. Wherever the customer can enter the data, as happens in finance which we have done and our IT companies enabled that over the last 30 years, that was a big change, like earlier customers would walk into a branch, it was costing you Rs 200-300 to serve a customer. Then, we took it to the phones. It became Rs 10-12. Then, we brought it online, when it became customer-centered. Today we are all making our own payments, we are all enabling our accounts to pay our utility bills, the cost has gone out of the banks totally and it is all reconciled, it is all done automatically, it has happened from industry to industry, so that was the boom over the last 30 years that our IT did. AI is just starting. So, right now the picks and shovel companies like Nvidia who make the chips are doing well. ADVERTISEMENT The next level is who sets up the data centre and the power suppliers for them. Power suppliers to those data centres will do well. Third is companies which bring the end use, but then the end user has to be ready for it, has to be able to fund it. They are not finding it so much right now. Another trend I am seeing is the GCC trend. Since there are now 2,900 captive and third party GCCs running in India, all our companies are looking at funding and manning that and offering that kind of service which is easier than AI. AI will be the big one, but maybe it will take another two years before we start seeing that difference coming on the revenues and the profit front. Though data centres are long-term stories, do you find good opportunities in the listed space for specifically Indian companies? Though a lot of companies are now talking about the data centre theme, how will it contribute? Some of these are MNCs and some of the companies came out with the recent earnings as well, but do you have much confidence there that these companies will be able to deliver? Are there enough players in the listed space? Ajay Bagga: Not enough. There are a few who are talking about it. We have not really seen that getting translated yet. But there will be utility level companies which will come in. So, running a data centre is not necessarily an IT company kind of a work, but it helps them to gain clients to have that capacity, like the Government of India mentioned they are going to buy some 12,000 more GPU chips for the Indian stack, for the weather programme and private players also linked into defence. ADVERTISEMENT That way data centres will be done by the large corporates in the country and the well-funded startups will be able to do it. It is a crying need. It will happen. And if you can link it up to solar along with storage, like last week we had a few days where the incremental cost on the electric exchanges went to zero because solar was really performing in the heat. We are going to see weekends where you will get a surge of free power coming in. If you can store that, along with data centres, that will become a business model. So, there are some players, I would not like to name them, but one has not seen on the ground movement coming through yet, but when it happens, it will be very big. Everyone will use AI. And we take it very simply like I was told by a Harvard professor, make sure whenever you are using any of these tools, you are thanking them because in 10 years the machine will remember who was rude and who was saying the please and thank yous. But then, OpenAI came out and said it is costing them millions of dollars every time you are saying thank you to AI or this craze of creating portraits is costing so much data centre capacity, so much cooling capacity, so much power, which we do not realise. We are asking AI to write our emails. That day I was talking to one of the doctoral guides. They had sent me a thesis to read and then they called me very fast and said, sir do not waste your time. I said, what happened? They have this software which tracks if the thesis has been pirated from somewhere or plagiarized and they said 92% of the thesis is written by ChatGPT, so do not waste your time. We are asking the student to rewrite it. So, we are seeing things like that happen and all at the back of it will be data centres. So, you need, they will be like electricity. You will need data centres to process all this. We take it very simply. Write me an email, write a thank you and put this and immediately it comes, but it costs a lot at the back end. (You can now subscribe to our ETMarkets WhatsApp channel)
India.com
24-05-2025
- India.com
First Vande Bharat sleeper train to run on this route, ticket price likely to be..., top speed to be...
First Vande Bharat sleeper train to cover distance of 1667 km in..., to run between... New Delhi Secunderabad Vande Bharat Sleeper Train: There is good news for the passengers waiting for Vande Bharat Sleeper Train. Indian Railways is going to launch the country's first Vande Bharat Sleeper train soon. Railway Minister Ashwini Vaishnav unveiled this train in September 2024. This train has been equipped with Integral Coach Factory Technology by BEML. According to a report by ET Now, Indian Railways is planning to run this train on many routes including the New Delhi-Secunderabad route. After Rajdhani and Duronto Express, Vande Bharat Sleeper will be the third premium train on this route. This train will cover the distance of 1667 km from New Delhi to Secunderabad in less than 20 hours. Vande Bharat Sleeper train has been designed to run at a speed of 160 kmph. After the launch of this train, Vande Bharat Sleeper will be the fastest train on this route. After this, Rajdhani and Duronto Express will be there. At which stations will the train stop? The New Delhi-Secunderabad Vande Bharat Sleeper train will complete its journey by stopping at other major stations including Agra Cantt, Gwalior, Veerangna Laxmibai Jhansi, Bhopal, Itarsi, Nagpur, Balharshah and Kazipat Junction. How much will the fare be? According to the report, this Vande Bharat Sleeper train will have a total of 16 coaches. These will include 11 third AC, 4 second AC and 1 first AC coach. The fare of the third AC coach is expected to be around Rs 3600, the fare of the second AC coach is Rs 4800 and the fare of the first AC coach is expected to be around Rs 6000. This train will leave from New Delhi at around 08:50 pm, the next day this train is expected to reach Secunderabad at around 08:00 pm.
Time of India
24-05-2025
- Business
- Time of India
Nifty eyes breakout ahead of expiry week; buy-on-dips strategy favoured: Rajesh Palviya, Axis Securities
ET Now: Given the kind of moves that we have seen over the course of the week, one would have hoped to end at least flattish or in slightly positive on the Nifty, but that has not been the case and this has been the second week of consolidation coming in even though it is very nominal. Give us a sense of what next week's trading session looks like for us because we are also approaching the fag end of the earnings season. ET Now: Let me ask you, like I will keep it with the US tax policy space. Since we had the bill coming yesterday overnight, I want to understand your view on the clean energy space. We did have the companies that do have exposure to the US clean energy space, they did come down a lot today, seeing a lot of downtick following the development. So, what kind of levels should we be tracking for those kind of companies going ahead into the next week? ET Now: So, I wanted to understand which are your top picks for the day. Live Events ET Now: I also want to understand your take on the news flow that we have seen over the course of the week wherein we are hearing some buzz that the sebi may give nse nod to move its expiry to Tuesday. Give us a sense of how this would pan out for the market in terms of flows, any major impact to the overall flows, expiry dates, how is it going to pan out for our markets overall? (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Till Nifty is holding above 24,700 mark, trend is likely to exhibit on the bullish side and once it manages to cross above 24,900, 24,950 zone, here we could see a good amount of short covering action and then possible rally can extend further to 25,100, 25,200 zone as in the coming week we are going to enter in the expiry week for the series. So, it would be very interesting to see whether Nifty is able to give a breakout of this 24,900, 24,950 zone or not, says Rajesh Palviya, Axis it was a very volatile week for the indexes. We have witnessed that for Nifty 25 ,000 acted as the major supply zone, as a major call concentration was placed at around those level and when Nifty was attempting to give breakout above 25,000, most of the call writers were adding the position around those strike only, that has created some pressure on the indices from higher level. But in this correction, Nifty has almost tested its 20-day moving average, and we have seen a very sharp recovery from those levels. Even for the Bank Nifty, Bank Nifty also managed to hold above the 20-day moving average in this corrective move. So, both indices are well placed above near-term moving averages, so I think that clearly indicates that yes, there is a strength in the indices for a near-term perspective and buy on dip should be your strategy till the 20-day moving average is intact for both the indices. So, for Nifty on the downside we believe that till Nifty is holding above 24,700 mark, trend is likely to exhibit on the bullish side and once Nifty manages to cross above 24,900, 24,950 zone, here we could see a good amount of short covering action and then possible rally can extend further to 25,100, 25,200 zone as in the coming week we are going to enter in the expiry week for the series. So, it would be very interesting to see whether Nifty is able to give a breakout of this 24,900, 24,950 zone or not. For Bank Nifty, till Bank Nifty is holding above 55,000, there is a possibility that Bank Nifty may also manage to give a breakout above the 55,600 level. If this happens, here also we may see some short covering action to trigger and then, a possible rally can extend to 55,900, even 56,200 level also. In today's session, we have witnessed some of the private banks showing buying interest, as well as PSU banks are also witnessing some buying interest, so Bank Nifty may also give a good kind of rally in the coming weeks. So, both indices, buy on dip, should be a in the energy space, we have witnessed profit taking from the higher level,l and this is likely to continue on the higher side. Nifty energy index is facing resistance at around the 35,600- 35,700 zone. So, till this level is not taken out on the higher side, some profit taking would be there around these levels. So, 35,600, 35,700 are the immediate hurdles for the indices. On the energy basket, a lot of stocks are witnessing supply pressure at a higher level. If we go with the stocks like ONGC and other stocks, they are all facing resistance at the immediate basis on the near-term chart, 248 to 250 is the immediate hurdle for the ONGC; until the stock does not cross this level, we may see some consolidation or some downtick in this counter. So, maybe on the downside, around 230 would be the next level if the stock does not cross 248. So, this space may attract some profit taking in the near-term perspective, so wait for this supply pressure to settle down and then on the lower side again, one can review this stock stock ideas, both on the buy side. The first one is from the insurance space, that is, ICICI Prudential. If we look at the overall behaviour of the insurance space, most of the stocks have delivered a good amount of buying interest this week. Looking at the breakout on ICICI Pru on a weekly chart, we believe that here we could see furthermore momentum in the coming week and a possible target towards 668 to 670 we can witness. So, ICICI Prudential is a buy with a stop loss of 630. The second stock is from the capital goods space, that is, ABB. After a significant correction stock has spent almost 10 to 15 weeks in a very narrow price range, and after the accumulation of 10-15 weeks, the stock has now managed to break breakout of this consolidation range. Looking at the breakout, we believe that ABB can extend its move on the higher side. We are projecting a target towards 6140 with a stop loss of a change in expiry days would also…, the whole movement of the market will stick to one day if expiry days move to one date only. So, I think that may create some kind of volatility in the market because there is still multiple expiries for the weekly options…, but if it is on the same day so that may attract a higher volatility in the market, so that would be the immediate impact, but I do not think it will create major changes in terms of behaviour of the traders, but yes, volatility would be little higher on the same day if the expiries move to the same date.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Economic Times
24-05-2025
- Business
- Economic Times
Indian markets poised for boost as RBI cuts and global flows align: Ajay Bagga, Market Expert
Tired of too many ads? Remove Ads ET Now: I want you get your sectoral view. Just like Snehi mentioned earlier we are at the end of the earning season, given how numbers have been so far, which sectoral plays are looking more attractive to you. Tired of too many ads? Remove Ads ET Now: I want to get a sense of everything that we are seeing on the US front. First, there is a divergence that is clearly being seen between the US bond yields as well as where the dollar index is headed. On the other hand, you have the Moody's downgrade coming in. Despite that, you have Donald Trump that has barely been able to pass his tax bill that adds on to US debt. What are you making of all of these developments? And how is this going to have an impact on the overall world because like we know, it is popularly said, when the US sneezes, the whole world catches a cold. When is the US going to sneeze when it comes to their debt levels? ET Now: I want to get your sense on the FII behaviour and the FII activities that we have seen over the course of the week, particularly on 20th of this month, 10,000 crores of selling is something that we have seen. This is an amount that we do not see very frequently. Does this indicate that the FIIs and the global players are now losing confidence in the Indian securities or do you believe that this is just a one-time blip and the confidence is still intact? Tired of too many ads? Remove Ads In terms of institutional overweight, financials are a clear winner. It remains underweight. Most of the institutional players are underweight on it. Then, again the domestic focused sectors are doing better and even the funds are positioned overweight on them, be it consumer durables, be it auto, be it construction and industrials, those are some of the sectors that are seeing an overweight. We must recognise that our markets have gone through the ringer. They have seen a four-day kinetic action with a hostile neighbour and come out well from the global sentiment souring which has hit our markets, despite that we have seen a lot of resilience in our markets. My personal thesis is that Trump will settle at 10% universal tariffs globally in the next two to three weeks and that will lead to a big upsurge in the risk sentiment and our markets are well is showing up and I do not know if Rajesh has also studied it, our markets have become more volatile than comparable Asian markets. So, we have fallen more and we have gained more across this week than what our Asian peers have shown on the same news. So, Indian markets are showing more volatility though the VIX is not showing that, but the price action is kind of reflecting that. So, I would say resilient market shaping up for an up move and buy on dips very that is a very good analysis. Normally, if rates go up, the currency should have gone up, rather we saw the dollar going down. So, rates were going up more out of an alarm at the Trump tax and spending bill that it will add nearly $5 trillion more over the next 10 years to the US debt and deficit. Already, the deficit is running very high and the tariffs are really not working. Though they celebrated $16 billion coming in April, but they were running at $8 billion already. So, going from about 3% tariffs to a weighted average of 19% and getting just a doubling of the tariff as against a target of 600 billion, you are running at about 180 to 200 billion right the tariffs will not make up for the tax cut revenues. When the economy is doing fairly okay, when there is no need for a tax cut, Trump has brought in a tax cut and more for the wealthier sections and the corporates and cutting back spending on the welfare part, so the Democrats are saying that nearly a million jobs will go based on this bill. We have no idea of that. What we are clear is, one, the world is very afraid of tariffs and Trump will bring in a 10% and settle it for a majority of countries, so there is a relief rally the structural issue with US debt and the fiscal deficit stays and there are no easy answers to that. So, it will keep working. For now, 80% of global trade is still denominated in dollars. It is still the reserve currency for a large portion of the global reserves, so that will stay till it stops working. So, we have to wait that out. I am not calling an early end to the exorbitant privilege that the US dollar is enjoying, that continues for another 10 years if I may say third big part is $33 trillion are sitting in the US market invested by global investors in bonds and stocks. A small portion of that will start moving out and where does it go? It will go to Europe. It will go to Japan. It will come to emerging markets and India within the emerging markets we will get our good 7-8% share of the emerging market flows. So, again, that is another trend that will benefit us going ahead. And fourth is our domestic strength overall, which we have spoken a lot already, that is a well-known issue is the US, all the chaotic policy turbulence which has hit the markets as well, that gets resolved to some extent over the next two-three months. What will not get resolved is the US debt, that will stay, so we are not seeing US yields coming down sharply. We are not seeing the Fed cutting rates, but we are seeing the RBI cutting and since this week the chatter on the street more is that 50 basis point rate cut coming from the RBI in June. If that comes, it is a big leg up for the Indian it will be a big monetary stimulus, already 8 lakh crores RBI has put in terms of liquidity. They are about to give two-and-a-half to three lakh crore dividend to the government in the next week or 10 days, that is again a liquidity infusion into the market. So, markets are setting up for a leg up in the Indian markets at is there. We saw 10,000 going out. Next day, we saw a positive of 2,000, very next day minus 5,000 again. So, it is more the screaming that is happening in the bond market and especially the longer-dated Japanese bonds. What that means is that the carry trade becomes unprofitable. If the yen is appreciating and also the JGB yields are going up, the Japanese government bond yields are going up, then money starts coming back home. So, it could be part of that, that we saw in terms of the two big days of 10,000 and 5,000, but middle of that we did see a 2,000 crore net inflow. On Friday, we saw some amount of short covering happening and we saw the rupee strengthen as well, which could be a pointer that Friday FII flows were better. So, too early to call trend is towards emerging markets being beneficiaries of the dollar weakness. We see the DXY, dollar index, going down from 99, another 5% to 10% over the next six months is what we are looking out for. I think that will happen and you could see India as a beneficiary of the FII flows turning around. So, I would not call time on FII inflows right now based on the previous week's performance and we will wait and see. But yes, it is a problematic phase when the Japanese rates go up or the yen appreciates, then the carry trade on the margin starts getting impacted.
