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Tag: world

  • Sensex climbs 696 points, Nifty ends at 17,780 as Budget cheer continues; banks, financial stocks gain

    The frontline equity indices on the BSE and National Stock Exchange (NSE) settled higher for the third consecutive session, closing with over 1.1 per cent gains on Wednesday as the post-Budget rally continued for the second session with intense buying in banking and financial stocks amid supportive global cues.

    The S&P BSE Sensex surged 695.76 points (1.18 per cent) to end at 59,558.33 while the Nifty 50 rose 203.15 points (1.16 per cent) to settle at 17,780.00. Both the indices had opened over 0.5 per cent higher earlier in the day and extended their gains as the trade progressed.

    On the Sensex pack, IndusInd Bank and Bajaj Finserv were the top gainers of the day ending with over 5 per cent gains. They were followed by HCL Technologes, Bajaj Finance, Kotak Mahindra Bank, Axis Bank, Dr. Reddy’s Laboratories, HDFC Bank and Wipro. On the other hand, Tech Mahindra, Nestle India, Ultratech Cement, Maruti Suzuki India, Larsen & Toubro (L&T) and Sun Pharamaceutical Industries were the biggest laggards.

  • BlackBerry to Sell Patents Related to Mobile Devices, Messaging for $600 Million

    BlackBerry Ltd said on Monday it will sell its legacy patents primarily related to mobile devices, messaging and wireless networking for $600 million to a special purpose vehicle formed to acquire the company’s patent assets.

    BlackBerry said the transaction with the vehicle, Catapult IP Innovations Inc, will not impact customers’ use of its products or services.

    The move comes weeks after BlackBerry pulled the plug on service for its once ubiquitous business smartphones, which were toted by executives, politicians and legions of fans in the early 2000s.

    U.S-listed shares of BlackBerry were down 3.6% in premarket trading. One of the so-called “meme stocks”, such as GameStop and AMC Entertainment, that witnessed a surge in early 2021, BlackBerry rose 41% last year.

    At the closing of the deal, the company will receive $450 million in cash and a promissory note for $150 million.

    Once known for its phones with a tiny QWERTY physical keyboard and the BBM instant messaging service, BlackBerry’s core businesses today are cybersecurity and software used by automakers.

  • Sensex down 4,000 points: What should mutual fund investors do?

    The year 2022 started on a volatile note with capital markets across asset classes witnessing a sharp correction amid investor concerns over tighter monetary policy settings in 2022 and geopolitical tensions. The benchmark index BSE Sensex has fallen over 3,000 points in the last 15 days, which is in line with the fall in global equity markets seen during the month. From its 52-week high levels, the index is down by 4,000 points, at 58,000. The expectations and uncertainty surrounding the Union Budget also led to volatility in equity markets. 

    Midcap and small caps have witnessed higher volatility in the last few months after having outperformed in the last two years. Year-to-date, mid cap mutual funds on an average have fallen by 2.5% and small cap funds have gone down by slightly over 2%. In fact, all equity mutual fund categories are in red YTD, except for banking and PSU funds.

    Technology funds, after remaining the best performers for a long duration, have taken the maximum hit of an average 12% YTD, followed by pharma sector schemes (-8.5%) and international schemes (-7.5%). Large cap funds, flexi cap funds and large & mid cap funds have plummeted by little over 2%.

    Investors should consider this fall as an opportunity to add more investments. In general, a 10% correction is an attractive enough “dip” to follow the time and tested “buy on dips” allocation strategy, says Sachin Jain, research analyst, ICICI Securities. “Investors may, therefore, allocate some lumpsum amount at current levels apart from their regular SIPs,” he adds.

    For the large cap segment, as per Rushabh Desai, founder of Rupee With Rushabh Investment Service, corrections anywhere between 10% and15% and for the mid and small cap segments, 15-25%, are considered to be decent correction pockets. However, even with the current correction and the company earnings prices and valuations in many segments in the equity markets remains high or expensive. Also, with the fear of new Covid-19 variants, supply chain disruption, high inflation, liquidity tightening and normalisation of policy rates (rate hikes) process etc. markets will remain volatile especially if company earnings don’t outperform, he explains. Thus, 2022 is the year to be extra cautious.

    For lumpsum investors who have investable amount, Desai suggests waiting for a decent and a deeper correction pocket before deploying their money. SIP investors should continue their investments and need not worry. Correction pockets should be looked at as an opportunity to invest for the long term.

    “This is a good time to assess your overall portfolio and reallocate your capital to schemes where the valuations are comfortable,” says Divam Sharma, co-founder of Green Portfolio, a SEBI-registered portfolio management service. He recommends value funds to be preferred over growth funds in the current markets and believes that IPO and start-up related funds should be avoided for now.

  • Sebi advises MFs to stop investing in int’l stocks

    The Securities and Exchange Board of India (Sebi) has advised mutual funds investing in overseas securities to stop further investments in foreign stocks to avoid breach of industry-wide overseas limits, two industry executives independently confirmed to Mint on the condition of anonymity.

    Mutual funds can make overseas investments up to $1 billion per mutual fund, with the overall industry limit of $7 billion, according to a Sebi circular of 3 June 2021. The suspension is likely to be temporary and could be revoked once the limits are enhanced by the regulator.

    Following the Sebi directive, the Association of Mutual Funds in India (Amfi) has asked fund houses to stop accepting flows in schemes investing overseas from 2 February. However, existing SIPs and STPs have been allowed to continue.

    Franklin Templeton Mutual Fund released a notice on Saturday announcing suspension of lump-sum subscription, switch-ins, and fresh registration of SIP/STP for its three overseas funds, Franklin India Asian Equity Fund, Franklin India Feeder-Franklin US Opportunities Fund and Franklin India Feeder -Templeton European Opportunities Fund, after 28 January 2021. The fund house temporarily withdrew the notice, but may be forced to reinstate it after the Amfi guidance.

    Sebi advises MFs

  • World food prices ease in Dec, but hit 10-year peak in 2021: FAO

    World food prices eased in December after four consecutive monthly gains but jumped 28% over 2021 for the highest average level since 2011, the U.N. food agency said on Thursday.

    The Food and Agriculture Organization’s (FAO) food price index, which tracks international prices of the most globally traded food commodities, averaged 133.7 points last month compared with a revised 134.9 for November.

    The November figure was previously given as 134.4.

    For 2021 as a whole, the benchmark index averaged 125.7 points, up 28.1% from 2020 and the highest since 131.9 in 2011.

    The monthly index has been running at 10-year highs, reflecting harvest setbacks and strong demand over the past year. 

    With the exception of dairy products, prices for all categories in the food price index eased in December, with vegetable oils and sugar falling significantly, the agency said.

    Higher food prices have also contributed to a broader surge in inflation as economic activity recovers from the coronavirus crisis.

    The FAO has warned that higher food costs in import-reliant countries are putting poorer populations at risk.

  • IPO-bound Delhivery announces investment in Falcon Autotech

    IPO-bound logistics service Delhivery has announced its investment in Falcon Autotech, a logistics automation solutions provider. This is in line with Delhivery’s stated objective of sustained investments in future-ready hardware solutions in its operations.

    The amount invested is undisclosed by both the firms.

    With this partnership, Delhivery expects to work closely with Falcon Autotech to design and implement new automation solutions for transportation and warehousing operations.

    The partnership will also enable the bundling of the hardware automated solutions along with Delhivery’s SaaS platform, one of the proposed growth verticals for Delhivery in the national and international market.

    Delhivery (including Spoton) already operates 20 automated sortation centres, 124 gateways, and 83 fulfillment centres across India as of June 30, 2021.

    Commenting on the investment, Ajith Pai, Chief Operating Officer, Delhivery, said, “The collaboration with Falcon Autotech strengthens our ability to drive greater speed, precision, and efficiency across our business lines.”

    Naman Jain, Chief Executive Officer, Falcon Autotech, added, “We are delighted to welcome Delhivery as a partner to Falcon. This investment is a testimony to Falcon’s commitment to our customers, our design, technology, and delivery capabilities, and the product roadmap ahead.”

    A month ago in December, Delhivery had acquired Transition Robotics Inc, a California-based company focused on developing unmanned aerial system platforms.  The deal would help strengthen its capabilities in a wide range of applications, including aerial photography, remote sensing, inspection and surveys.

    Delhivery on November 2 filed its documents with the market regulator, seeking to raise a billion dollars in an initial public offering.Delhivery IPO will consist of primary issuance of Rs 5,000 crores which the end-to-end supply chain unicorn will raise via public issue. The offer for sale by the existing investors will be to the tune of Rs 2,460 crores. It will mark a lucrative exit for many of its investors.

  • Sensex reclaims 60,000 mark; FPI buying, macroeconomic data buoy sentiment

    The Sensex reclaimed the 60,000 mark after seven weeks, despite rising Covid-19 cases, as the benchmark indices closed higher for the fourth straight session on Wednesday.

    Inflows from foreign portfolio investors (FPIs), expectations of good quarterly results, and optimism triggered by positive macroeconomic numbers enthused investors. The Sensex gained 367 points, or 0.6 per cent, to close at 60,223, while the Nifty rose 120 points to end the session at 17,925 cent.

    After being net sellers for about three months, FPIs have again turned net buyers since the beginning of this year. Analysts said FPIs had become net buyers because India had managed to keep Omicron under reasonable control so far, and that there was still hope for economic revival remaining unaffected. On Wednesday, FPIs bought shares worth Rs 336.8 crore, provisional data from the exchanges showed.

    “FPIs tend to buy in a concentrated manner. That’s the reason the market is showing resilience. The positives have been factored including the revival of the economy. Valuations don’t stand out. India has dealt with the Omicron variant slightly better than others. If the Omicron crisis does not warrant a strict lockdown, economic performance could continue. It’s a relative play as of now,” said U R Bhat, co-founder, Alphaniti Fintech.

    “In December itself, there was some impact of Omicron, but still GST (goods and services tax) collections have been reasonably good. It is possible to argue that the economy is quite resilient,” added Bhat.

    However, some analysts said concerns about the pandemic, rate hikes, and inflation could weigh on the markets in the days to come. Amid surging Covid-19 cases, weekend curfew has been imposed on the national capital, and the mayor of financial capital Mumbai has said tighter restrictions might be necessitated if cases continue to rise. Hong Kong on Wednesday announced flight bans from eight countries, including India, and tighter restrictions on public gatherings.

    Moreover, the US Federal Reserve is moving ahead with its plans to withdraw its bond purchases and hike interest rates at a much faster pace than expected.

    “The market trend might be volatile in the near term because of potential risk from the Omicron variant, upcoming Budget, and fragile global cues. In the long run, strong earnings delivery along with positive macroeconomic data would hold the key to drive the markets upwards,” said Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services.

    The market breadth was slightly positive, with 1,786 stocks gaining and 1,606 declining on the BSE. As many as 527 stocks were locked in the upper circuit, and 432 hit their 52-week highs. Close to two-thirds of the Sensex constituents gained. HDFC Bank, ICICI Bank, Kotak Mahindra Bank, and Bajaj Finance contributed the most to the index gains, rising 2.3 per cent, 1.9 per cent, 3.7 per cent, and 4.4 per cent, respectively. Banking stocks gained the most and its sectoral index gained 2.4 per cent on the BSE.

  • Capricorn Investment Group Takes 20% Stake in Norselab’s European Impact Investment Platform

    OSLO, Norway & NEW YORK–(BUSINESS WIRE)–Capricorn Investment Group makes their first move into the Nordic venture space with their investment in Norselab, an Oslo-based European impact investment manager for private capital.

    “With their thoughtful approach to innovative impact investments, Norselab stands out as an ideal partner to expand our presence into the Nordics and Europe. We are thrilled to help scale their impact investment platform,” says Michaela Edwards, Partner at Capricorn Investment Group.

    Edwards is the partner in charge of the investment into Norselab. The deal, offering Capricorn’s Sustainable Investment Fund a 20% stake in Norselab, relied heavily on their belief in the team and the structure that they have built.

    “The team behind Norselab has an outstanding track record in building and scaling tech companies, in addition to a clear ambition to build a larger ecosystem of funds. These were key factors weighing in on our investment decision,” adds Edwards.

    Both firms share the belief that impact investments will offer the best opportunities over the coming decades. Through investment into companies that target industries in need of transformation, Norselab aims to ignite disruption, and to create potential for solid returns and massive impact.

    Unexplored opportunities in the Nordics

    Capricorn’s investment in Norselab marks its first, strategic move into the Nordics. According to Edwards, the Nordics are still unexplored territory from a global perspective, and offer plentiful opportunities for both impact and high returns. She highlights that Norway, with its ongoing green shift and hunger for innovation, offers a great location from which Norselab can expand to Europe.

    Building system value

    Norselab launched its first impact-focused venture fund, Meaningful Equity I, in 2020. On the back of a solid tailwind in terms of market trends and deal flow, the impact investor is expanding its platform with several new funds. This means a significant upscaling of the organization where creating system value through knowledge sharing is the key to accelerate growth and value creation across the ecosystem.

    Uncompromising on impact

    Tvedt adds that Capricorn’s solid impact profile was decisive for Norselab’s decision to bring on board a larger capital partner.

    “Impact is at the heart of our investment philosophy, and core to the products and services of the companies we invest in. We want to build Norselab into a leading European impact investment platform, and believe Capricorn is a match made in heaven for scaling Norselab while staying true to our fundamental DNA,” says Tvedt.

    With the Sustainable Investment Fund, Capricorn Investment Group aims to back purpose-built investment managers with an authentic vision around impact.

    A fit-for-scale platform

    Norselab’s CEO, Erik Syvertsen, explains how they created an international fund platform for venture investments with the building blocks that most market participants would recognize from larger institutional structures.

    “As we established our first fund, we knew that a robust infrastructure with scalability would be essential if we were to have international ambitions both in terms of deal flow and the ability to attract capital. Capricorn recognized the value in the ecosystem we are aiming to build in and around Norselab. It’s a privilege for us to work with a capital partner that is aligned with our values and ambitions across the board,” says Syvertsen.

    Norwegian capital partners joining the party

    Two significant Norwegian capital partners are also part of the deal. Long-term Norselab investor Ness, Risan & Partners, invests in the impact investment platform to offer Norselab’s attractive impact products to their large Nordic customer base. Joakim Lehmkuhl is also among the new capital partners. His connection to international investor groups will give the Norselab team solid traction to scale its platform out of Norway.

    About Capricorn

    Capricorn is one of the largest mission-aligned firms in the world, and has since its inception in 2000 grown to manage more than $10 billion in multi-asset classes for foundations and institutional investors, through their range of impact-focused fund products. Their Sustainable Investors Fund (SIF) is a private equity partnership whose investment objective is to create significant value through ownership and early stage investment in public and private asset managers who incorporate sustainability as a key driver of investment returns