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New Delhi: India and Vietnam are gaining the most from the China plus one strategy, which is also expected to unlock new growth opportunities for Asian economies, according to Nomura. India's exports will likely surge to $835 billion by 2030 from $431 billion in 2023 with its large domestic market helping attract firms looking for supply chain alternatives to China, Nomura said in a report on Tuesday."Firms in electronics, apparel & toys, automobile & components, capital goods and semiconductor manufacturing are looking to invest in India. Given India's large domestic consumer market, firms setting up shop in India are attracted also because of the captive domestic market," Nomura said, predicting a 10% annual growth over the period.The global research firm expects electronics to become the fastest-growing sector, clocking a compound annual growth rate of 24% in exports, with value nearly tripling to $83 billion by 2030. Machinery exports will more than double to $61 billion by 2030 from $28 billion in 2023.110506983"We believe the low production linked incentive (PLI) disbursements are not a good reflection of India's potential on global value chain integration. Its large market size, faster growth, lower labour cost and political and economic stability make it an attractive investment destination for consumer goods production to both cater to domestic demand and also for exports," Nomura said, expecting India's share of global trade to rise to 2.8% by 2030.Nomura pointed out that competitiveness of Indian production is also likely to help accelerate exports and improve the country's trade balance and current account. "This points to a structural case for currency appreciation," it said.Nomura's survey of 130 enterprises also showed a growing interest for India and Vietnam."A majority of the investment into India are from US-based companies, especially in the electronics sector. Japan and Korea are also investing in India's auto, consumer durable and electronics sectors to take advantage of the growing domestic demand and to use it as a manufacturing base," Nomura said. It added that strengthening of India's manufacturing sector and its growing share in exports will help the corporate sector to sustain 12-17% earnings growth over the medium term.

Birla Group Holdings Private Limited (BGHPL), a promoter of Grasim Industries, has raised its stake by 4.09% in the company according to an exchange filing by the company on Tuesday. BGHPL's holding in the company has gone up to 23.18% now from Rs 19.10% at the end of the March quarter.The additional 4.09% stake buying by BGHPL has happened under a scheme of amalgamation. About 2,67,46,262 fully paid up equity shares of face value of Rs 2 apiece or 3.9% stake and 10,63,204 equity shares (0.16% stake) of Rs 0.50 partly paid up shares of Grasim Industries held by Umang Commercial Company Private Limited were transferred to BGHPL on May 24, 2024, the company filing said.There is no change in the promoter/promoter group total holding in the company, which remains the same at 43.06%. Shares of Grasim Industries on Tuesday ended at Rs 2,435.10 on the NSE, up by Rs 44.45 or 1.86%.Grasim, a part of the Aditya Birla Group, on Wednesday reported 39% growth in its consolidated net profit to Rs 1,908 crore for the quarter ended March 2024, excluding exceptional items. The same stood at Rs 1,369 crore in the last year quarter.Revenue from operations increased 13% year-on-year to Rs 37,727 crore in the reporting period, compared with Rs 4,873 crore in the corresponding period of previous year.EBITDA (earnings before interest, tax, depreciation and amortisation) for the March quarter stood at Rs 6,196 crore, up 27% year-on-year.CSF prices improved marginally in China during the quarter, reflecting an improving demand scenario and stable operating rates (85%).However, export prices softened due to global overcapacity and lower raw material prices. Demand in India during the quarter was impacted by the amendment in the MSME policy, which resulted in low inventory build-up in the textile value chain. The CFY business remains impacted by increased cheaper imports from China in an already weak demand market.Grasim CSF volumes grew by 8% year-on-year to 208 KT. However, revenue for the quarter was flat at Rs 3,762 crore, due to subdued realisations. Segment EBITDA sequentially grew by 15% to Rs 462 crore, largely led by lower input costs.The chemicals business achieved its highest ever caustic soda sales volume of 308 KT in Q4FY24, up 8% year-on-year. However, revenue decreased by 13% year-on-year to Rs 2,083 crore due to a sharp decline of 28% year-on-year in ECU realisation.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

The third edition of the Modi government's flagship electric vehicle incentive scheme FAME (Faster Adoption and Manufacturing of Electric Vehicles) with an outlay of about Rs 10,000 crore is likely to be rolled out within the first 100 days of the new government taking charge next month, a senior official said.The scheme will offer financial incentives to electric two-wheelers and three-wheelers as well as government-owned buses, the official told ET.However, a final decision on whether to include electric cars, including for institutional buyers such as taxi aggregators, in the FAME 3 scheme is yet to be taken, the official added.110508375“The proposed scheme mirrors the FAME 2 which lapsed in March 2024. It will be sent for approval to the Union cabinet shortly after the new government takes charge in June,” the official said. FAME 2 had offered a 15% subsidy on the sale price of electric scooters sold in the country.FAME 3 will take forward the Electric Mobility Promotion Scheme (EMPS), which was introduced when FAME 2 ended on March 31, as a temporary plan till the general elections were over. With a total allocation of Rs 500 crore, EMPS is aimed at supporting sales of electric two-wheelers and three-wheelers for four months till July.The FAME scheme was launched to encourage local manufacturing and sales of electric vehicles by extending demand incentives to end customers.“Since it (FAME-3) will be a new scheme, all companies seeking incentives on sale of electric vehicles would have to apply for fresh certification," the official said.According to the proposal being considered, FAME 3 is initially expected to be valid for sales made over a two-year period instead of five years under FAME 2.The government had incentivised purchase of 7,000 electric buses under FAME 2. The new scheme is likely to increase the number of electric buses subsidised for purchase by State Transport Undertakings (STUs).FAME 3, however, is likely to keep out of its scope subsidies for electric cars, even for commercial operations."Deliberations are underway on whether electric cars need any subsidy in the country," the official cited above said, adding the current proposal for FAME 3 suggests offering incentives for electric cars priced at less than Rs 15 lakh, similar to FAME 2.Hybrid cars may also get support under FAME 3, subject to adhering to the price cap, if passenger cars are included in the scheme. “The government is also bringing in fresh guidelines in the new scheme and companies seeking to avail benefits would have to seek re-certification," a second official said. Under EMPS, the government extends incentives of up to Rs 10,000 per electric two-wheeler (down from Rs 22,500 in FAME 2), and up to Rs 50,000 per electric three-wheeler (down from Rs 111,505). Both categories get incentives of Rs 5,000 per kilowatt-hour (kWh). EMPS is aimed at supporting sales of 372,215 EVs including electric two-wheelers (3,33,387) and three-wheelers (38,828). To encourage adoption of latest technologies, incentive benefits are being given to only vehicles fitted with advanced batteries.

The ratio of cost overruns in central government projects rose to a 12-month high of 20.09% in April compared with 18.65% in the previous month, according to data released by the government Tuesday.The anticipated cost of 1,838 projects with a value of Rs 150 crore and above, at Rs 33.2 lakh crore, was Rs 5.6 lakh crore higher than the original cost, with the ratio of delayed projects also rising compared with the previous few months.While 43% or 792 projects were delayed with respect to the original completion date, 514 were delayed with respect to the original cost as well.Data released by the government showed that 61 projects were completed in April, while it onboarded 29 new projects.The cost of completed projects was Rs 46,649.7 crore, whereas the newly added projects cost Rs 1.3 lakh crore.The government’s thrust on infrastructure has been highlighted by international agencies as a growth driver and is likely to continue in the coming year as well.A recent ET poll noted that the economy likely grew 7.8% in FY24 and is expected to grow 6.8% in the current fiscal.While the cost overruns rose in April, the average time for project completion dipped to 35. 4 months compared with 36.04 in March; 48% of the projects were delayed for a period of over two years.“54 of 1838 projects – with time overrun of over 50 months and cost overrun of over 50% contributed43.39% of the total cost overrun and 21.34% of the total time overrun,” the government noted in its report.Among the major sectors, railways faced the highest cost overruns of 126.5% in April, as over half of its projects registered with the government were facing cost overruns. Road transport and highways, which accounts for nearly 60% of the projects, had a cost overrun ratio of 23.7%.A third of Railways and over 10% of projects in roads faced time overruns, according to government data.

Capital markets regulator Sebi on Tuesday notified a framework for issuance of subordinate units by privately placed infrastructure investment trusts (InvITs). The issuance of subordinate units is primarily intended to bridge the valuation gaps that may arise as a result of the difference in the valuation of an asset assessed by the Sponsor (in its capacity of the asset seller) and the InvIT (in capacity of the asset buyer). Also, the framework has been designed to include risk mitigation measures in respect of such units. In its notification on Monday, Sebi said subordinate units would only be issued by a privately placed InvIT upon acquisition of an infrastructure project. It further said that InvIT would not raise funds through public issues if any subordinate units have been issued and are outstanding. To give this effect, the Securities and Exchange Board of India (Sebi) has amended the InvITs rule. InvITs are a new concept in the Indian market but have been a popular choice globally for their lucrative returns and capital appreciation. An InVIT consists of a portfolio of infrastructure assets like highways. As per the notification, Sebi said," the subordinate units shall be issued only to the sponsor, its associates and the sponsor group and shall be deemed to be a part of the consideration for the acquisition of the infrastructure project from such sponsor, its associates and the sponsor group". Sponsor means any company or LLP which sets up the InvIT Further, the subordinate units will not carry any voting rights or distribution rights, and need to be issued in a dematerialized form with an International Securities Identification Number, distinct from that of the ordinary units. The subordinate units would be listed on a recognised stock exchange after their reclassification into ordinary units. "The subordinate units may be issued by way of an initial offer or any offer subsequent to the initial offer, either along with the issue of ordinary units or without the issue of ordinary units," the regulator said. The total number of outstanding subordinate units issued by an InvIT at any point of time should not exceed 10 per cent of the total number of outstanding ordinary units issued by such InvIT. However, an InvIT which has subordinate units exceeding the limit, such InvIT can issue additional subordinate units subject to compliance with this limit. The unitholder holding at least 10 per cent of the total outstanding units of the InvIT, either individually or collectively, would be entitled to nominate one director on the board of directors of the Investment Manager. Such nominated director needs to recuse from voting on any transaction where such nominee director or associate of such nominee director or the unitholder who nominated such nominee director is a party. According to Sebi, the minimum time period between the issuance of subordinate units and the entitlement date for reclassification of the subordinate units to ordinary units would be three years. The investment manager is required to disclose the progress related to the achievement of performance benchmark in the annual report of the InvIT.

Nifty ended Tuesday’s session 44 points lower at 22,888 to form a bearish candle on the daily scale. The index is trading above its key moving average supports and the RSI on the daily chart is positive.“While we expect further upsides and new life highs in the coming sessions in the run-up to the election results, we remain open to volatile movements in the very near term. It will be important that the Nifty holds above the previous swing highs of 22,795 for the uptrend to continue. Markets are likely to be volatile in the coming sessions as we approach the election result announcements,” said Subash Gangadharan of HDFC Securities.Analysis of Open Interest (OI) data reveals that the call side exhibited the highest OI at the 23,000 strike price, followed by 23,500 strike prices, whereas on the put side, the highest OI was observed at the 22,500 strike price.What should traders do? Here’s what analysts said:Jatin Gedia, SharekhanOn the daily charts, we can observe that the Nifty has been consolidating in a narrow range since the last three trading sessions around the 23,000 mark. We expect this consolidation to continue till the expiry of the May series. During this phase, Nifty can retest the breakout zone of 22800 – 22750 and thereafter, resume its up move. On the downside, 22,800 also coincides with the 40-hour moving average which can provide support in case of a dip.Rupak De, LKP SecuritiesThe index remained within a range as the lack of a breakout on either side failed to provide any directional movement. Significant Call writing was observed at the 23,000 strike price, followed by the 23,100 and 22,900 strikes. In comparison to the heavy Call writing, Put writers were less active, leading to a decline in the PCR. The high India VIX suggests that market volatility might remain elevated.On the higher end, the 22950-23000 zone might act as a strong resistance, and any rise may attract selling pressure. On the lower end Nifty might drift down towards 22,800/22,600.Ruchit Jain, Lead Research, 5paisa.comSince the readings on the lower time frame chart have seen a negative crossover from the above mentioned resistance for Nifty, this could be seen as a correction within an uptrend. The immediate supports for Nifty are placed around 22,800, followed by the 22,650-22,600 range. On the higher side, the hurdle is seen around 23,100 and once this is surpassed, the index could continue the uptrend towards 23,400.Shrikant Chouhan, Kotak SecuritiesThe current market texture is non-directional. On the downside, 22,800-22,750/74,900-74700 would be the key support zones, while 23,000-23,100/75,500-75,700 could be the crucial resistance areas for the day traders.For day traders now, buying on dips and sell on rallies would be the ideal strategy. However, below 22,750/74,700 the sentiment could change. Below the same, traders may prefer to exit out from the trading long positions.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

A Delhi court on Tuesday refused to summon Chief Minister Arvind Kejriwal in a criminal complaint filed by a BJP leader who accused him of defamation for claiming that AAP leaders were approached to join the saffron party in return for cash. Additional Chief Metropolitan Magistrate Tanya Bamniyal, however, summoned AAP leader Atishi, saying "prima facie" there was sufficient evidence against her in the matter. The judge directed Atishi, a minister in the Kejriwal cabinet, to appear before the court on June 29. BJP leader Praveen Shankar Kapoor had filed a case against Kejriwal and Atishi over poaching allegations made by the two. "Having considered the facts and circumstances, the testimonies of the complainant's witnesses, the evidence placed on record, it prima facie appears that the alleged accused no. 1 (Atishi) has made specific defamatory statements as aforementioned against the complainant," the judge said. Further, it prima facie appears that the aforesaid defamatory statements made by Atishi have been sufficiently published in the electronic media/social media which may make the right-thinking members of the society against the complainant, the judge said. It appears that Atishi, by her spoken words and by words which were intended to be read, has made defamatory imputations which prima facie have lowered the reputation of the complainant amongst the right-thinking members of the society and the same has been made knowing and intending to harm the reputation of the complainant, the judge added. Whereas, in view of the reasons stated above, "no prima facie offence is established against Kejriwal", the judge said. "Therefore, in view of the above discussion, there exist sufficient grounds to summon accused Atishi Marlena under section 500 (defamation) IPC," the judge said. Alleging that the claims made by the two senior AAP leaders against the BJP are false, Kapoor said the duo had not furnished any material to substantiate the allegations.