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Just hours after India signed a 10-year agreement to manage the Chabahar Port in Iran, the United States issued a warning, underscoring the "potential risk of sanctions" for "anyone" engaging in business dealings with Tehran.Vedant Patel, Principal Deputy Spokesperson for the US State Department, however said that the US would let the Indian government speak on its foreign policy objectives."We are aware of these reports that Iran and India have signed a deal concerning the Chabahar Port, I would let the government of India speak to its own foreign policy goals, vis-a-vis the Chabahar Port as well as its own bilateral relationship with Iran," Vedant Patel said in the press briefing on Monday (local time)."I would just say...US sanctions on Iran remain in place and we will continue to enforce them," he said."Any entity, anyone considering business deals with Iran, they need to be aware of the potential risk they are opening themselves up to, potential risk of sanctions," Patel said.India-US relation has been on 'friendly' terms with officials from both sides acknowledging the deepening ties between India and the United States. The relation is not only shaped by shared interests and common ambitions but also by the personal bond between their leaders Prime Minister Narendra Modi and President Joe Biden.India and Iran signed the 10-year contract on Monday for the management of Chabahar port, finalising what’s seen as a gamechanger in regional connectivity, rivalling China’s Belt and Road Initiative and being an alternative to Pakistan's Gwadar port.The decade-long lease agreement enhances the bilateral relations between the two nations and fosters confidence and trust among regional trading communities.The port serves as India’s crucial connection to Afghanistan, Central Asia, and the broader Eurasian region. There are plans to integrate Chabahar with the International North South Transport Corridor (INSTC), linking India to Russia through Iran. This initiative will allow India to circumvent Pakistan and reach Afghanistan, opening up access to Central Asian countries.The deal was signed between Indian Ports Global Limited (IPGL) and the Port & Maritime Organisation (PMO) of Iran for operating the Shahid-Behesti port within the Chabahar Port Development Project.Under the contract, IPGL will equip and operate the port for the duration of the contract. At the end of the 10-year period, both sides will extend their cooperation in Chabahar. IPGL will invest about $120 million in equipping the port, officials said. India has also offered a rupee credit window equivalent to $250 million for mutually identified projects aimed at improving Chabahar-related infrastructure, they said.Foreign minister S Jaishankar hailed the pact and said the US didn’t have any concerns regarding the matter.“The US has no issues with Chabahar,” he said in Mumbai. “And frankly, if something’s between me and Iran, it’s between me and Iran.”India had been trying to convince Iran for many years about the need for a long-term agreement, he said.The Chabahar Port, a flagship project between India and Iran, plays a vital role as a transit hub for trade with landlocked Afghanistan and Central Asian nations. India has played a significant role in both the development and operation of this port.Investing in its infrastructure, the Indian government has worked to enhance the port's facilities, making it a feasible route for transporting Indian goods to Afghanistan and Central Asia.(with ANI inputs)

Xiaomi Corp. aims to begin making and selling a sport utility vehicle similar to Tesla Inc.’s Model Y as early as 2025, embarking on a major new expansion with production of its debut SU7 electric car set to reach about a 100,000 units this year.Xiaomi is approaching full initial capacity and is working now to increase output to accommodate demand, people familiar with the matter said. The company benchmarked its envisioned SUV against Tesla’s during development, the people said, asking not to be identified discussing a private project.An SUV would mark a big expansion of Xiaomi’s $10 billion EV endeavor, spearheaded personally by billionaire co-founder Lei Jun. The company is trying to reduce its reliance on a volatile smartphone market dominated globally by Apple Inc., though with EVs it’s getting into a crowded arena and taking on established rivals Tesla and BYD Co.It’s unclear what specifications and pricing Xiaomi envisions for the SUV — a type of vehicle gaining in popularity across China. The company’s plans for production, first reported by local media outlet Yicai, could also shift depending on how it progresses on capacity, the people added. Representatives for Xiaomi didn’t respond to emails and a phone call seeking comment.110098967Discussions about an SUV began as far back as when Lei announced in 2021 that EVs represented his final major entrepreneurial effort, one of the people said. But the company eventually decided to move first on the SU7, a $30,000-plus sedan with a design aesthetic similar to Tesla’s Model 3 and the Porsche Taycan.Xiaomi doesn’t anticipate the SUV going into mass production until late 2025 at the earliest, when it completes construction on a second phase of its assembly factory in Beijing, said one of the people. For now, it’s prioritizing production of the SU7 as it only has the capacity to make fewer than 10,000 deliveries a month, the person said. Xiaomi, which gets more than 60% of its revenue from smartphones, has been trying to diversify in part because of sluggish device demand in its home market.Yet it joins scores of players vying for a slice of the Chinese EV market — the world’s largest, but one where margins have compressed as Tesla and BYD lead a price war during a period of slowing growth. Apple nixed its own long-incubating EV project after failing to overcome challenges in adapting its technological expertise to a new field of manufacturing.Xiaomi’s SU7 series received close to 90,000 confirmed orders as of the end of April — about a month after the debut in late March. Xiaomi’s stock has risen some 30% since the SU7’s debut and is now close to its highest level in about two and a half years.Its EV business could break even in 2026 — two years ahead of a previous estimate — because of improving capacity and a positive market reception for premium models, HSBC Qianhai Securities’ analysts Frank He and Steven Wang wrote in a memo last week.They expect the company to more than double shipments to 240,000 units in 2025. “The capacity bottleneck will start to ease in the third quarter of 2024,” they wrote.

Fund managers made fresh purchases in companies that could benefi t from the strength in global economies, including the US. They increased exposure to metals, commodities and oil & gas. Fund managers believe the Fed is likely to cut rates later this year, which will lead the US dollar to depreciate resulting in rise in commodity prices, subsequently leading to higher realisations. Vedanta, Hindalco, NMDC, GAIL India and ONGC were among the top picks in that space. Some leading mutual funds also lapped up Kotak Mahindra Bank, whose shares have been beaten down after the Reserve Bank of India’s ban on the private lender from issuing new credit cards and onboarding new customers through mobile and online banking, and the exit of joint managing director KVS Manian. Some funds bought shares of Axis Bank, while sold ICICI Bank and Jio Financial Services. 110098572

Mumbai: Shares of many companies with higher foreign ownerships have been under pressure amid the heightened selling of Indian stocks by overseas investors so far in May.Foreign portfolio investors (FPIs) have sold shares worth over ₹22,000 crore this month after pulling ₹21,524 crore out of Dalal Street in April. More than 100 stocks where FPIs hold over 5% stake as of March 31, 2024, have declined between 10% and 30% in last one month, compared to a 1.7% fall in benchmark Nifty."In the present circumstances, FPIs are adopting a risk-off strategy, foreseeing significant volatility leading up to the general election," said G Chokkalingam, founder of Equinomics Research. "Investors should consider keeping FPI-heavy stocks limited in their portfolios until the elections are over."FPI-heavy stocks like Aster DM Health, Sonata Software, Paisalo Digital, Gujarat State Petronet, Coforge, and Birlasoft have dropped between 20% and 30% in the past month. While selling by foreign investors could have contributed to the drop, analysts said weaker-than-expected results in some of them resulted in broad-based selling across investor categories.110098380Several large-cap stocks with higher-than-average FPI holdings, including Larsen & Toubro, HCL Technologies, Kotak Mahindra Bank, Titan, and DLF, among others, have declined more than 10%. HDFC Bank, Infosys, and Bajaj Finance have fallen over 5% in just one month. "FPI-heavy larger stocks have not given any returns to investors in the last two to three years," said Joseph Thomas, head of research at Emkay Wealth Management. "Since no significant movements have taken place in these stocks, it may be advisable to stay invested; or for better price performance, mid-caps could be considered."Foreign investors are selling Indian stocks in the run-up to the general election, a deviation from the trends on the previous two occasions. In 2019, FPIs purchased shares worth nearly ₹25,000 crore in the two months leading up to the election results. In 2014, they acquired shares worth ₹36,500 crore in the two months preceding the elections.Some FPIs are pulling money out of Indian stocks and reallocating to China and Hong Kong, which are trading at cheaper valuations compared to most global markets."Aggressive selling by FPIs has been triggered by the outperformance of China and Hong Hong during the last one month and the underperformance of India," said VK Vijayakumar, chief investment strategist at Geojit Financial Services. Hong Kong's benchmark Hang Seng Index has surged by over 16% in one month and 18% in two months. China's Shanghai Composite has gained 4% and 15% in the last one month and two months, respectively.

The washout of the Gujarat Titans versus Kolkata Knight Riders match on Monday due to rain has triggered expectations of revenue losses, prompting sponsors, franchise owners to consider filing claims with insurance providers.This year the Indian Premier League (IPL) had bought insurance cover of Rs. 10,000 crore from insurers including New India Assurance, National Insurance Company, and United Insurance for the tournament. This coverage protects against revenue losses arising from various contingencies, including match cancellations due to natural disasters, political events, riots, and more.“Sponsors, broadcasters, team sponsors, and franchise owners are expected to file a claim the following day due to anticipated revenue losses,” said Pranav Shan, director, speciality lines, Alliance Insurance Brokers. “Although it's premature to estimate the exact loss caused by the washout, it could potentially range between Rs 50-60 crore.”Several stakeholders are likely to assess their losses file claims tomorrow to reduce the financial impact. Gujarat Titans, as the home team scheduled to play at Narendra Modi Stadium, is expected to file a claim for revenue losses. Similarly, the visiting team, Kolkata Knight Riders (KKR), is also expected to file a claim.The IPL's per match market value ranges from Rs. 100 crore to Rs. 125 crore.However. the actual claims are expected to fall within the range of Rs. 50-60 crore due to varying revenue streams and unaffected areas like OTT platform subscriptions. As stakeholders assess their losses, the insurance claims process is expected to start in the coming days. This financial risk in the sports insurance market is going up and the industry has seen premiums rising by 50-70% this year. The IPL's insurance policy covers not just match revenues but also broadcasting expenses, player-related costs, and event cancellations.Sponsorship plays a large role in generating revenue for cricket teams in IPL, with various types of sponsorships. Title sponsor for the league is Tata. The Tata Group signed a historic deal to extend its IPL title sponsorship for five years from 2024 to 2028, for Rs 2500 crore, the highest-ever sponsorship in the league's history.Also, official sponsors target specific segments within the game, such, sponsoring the power play or boundaries or strategic timeout segments.