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South Korea to infuse over $7.2 billion in domestic chip industry

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Seoul, May 13 (IANS) South Korea will push to set up a package worth over 10 trillion won ($7.28 billion) to support the chip industry as part of efforts to boost the competitiveness of the critical industry and to prop up economic growth, its Finance Ministry has said.

The planned assistance programme of more than 10 trillion won aims at supporting facility investment and research and development programs for all sectors of the chip industry from chip materials to manufacturing equipment and components, Finance Minister Choi Sang-mok said during his visit to a local chipmaking company.

The package would be created through a fund to be financed by private entities and public financial institutions, such as the state-run Korea Development Bank, reports Yonhap news agency.

“The indirect way of financial support is meant to prevent risks for chipmakers… which will focus particularly on the relatively weak fabless sector, as well as the materials, parts and equipment fields,” Choi said, stressing the commitment to the creation of an industry ecosystem to enhance competitiveness.

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Details of the envisioned programme will be announced after consultations with relevant entities, according to the Ministry.

The semiconductor industry is a key growth engine for South Korea, which is the world’s biggest memory chip producer as home to Samsung Electronics and SK hynix.

–IANS

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With last phase of voting left, market volatility would increase

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New Delhi, May 26 (IANS) Markets were on a roll, and they had plenty of action and drama as well in the week gone by. The previously announced holiday on Thursday, on account of Buddha Purnima, was cancelled by the exchanges on Monday, considering the fact that two holidays in a week would break the momentum.

As events turned out, Thursday was the key pivot for the markets as they gained a massive 1,197 points on BSESENSEX and 370 points on NIFTY on Thursday. In the process, they made new lifetime highs as well. The RBI declaring a dividend of Rs 2.1 lakh crore for the financial year ended March 2024 was a great help as well, as it ensured that the fiscal deficit the government is targeting is well under control.

At the end of the four-day week, BSESENSEX gained two and lost two sessions, while NIFTY gained three and lost one. BSESENSEX gained 1,404.45 points or 1.90 per cent to close at 75,410.39 points, while NIFTY gained 455.10 points or 2.02 per cent to close at 22,957.10 points.

The broader markets saw BSE100, BSE200 and BSE500 gain 1.87 per cent, 1.87 per cent and 1.65 per cent respectively. BSEMIDCAP gained 1.10 per cent, while BSESMALLCAP was up 0.08 per cent. The new intraday highs made on Friday were 75,499.91 points and 23,026.40 points.

The Indian Rupee had a strong showing during the week and gained 24 paise or 0.29 per cent to close at Rs 83.10 to the US Dollar. Dow Jones saw selling pressure and lost in three of the five trading sessions. It was down 934 points or 2.33 per cent to close at 39,069.59 points.

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The week gone by saw one new mainboard listing-shares of Go Digit General Insurance Limited, which were issued at Rs 272 listed on Thursday, May 23. The opening price was Rs 281.10 on BSE. Shares closed day one at Rs 305.75, a gain of Rs 33.75 or 12.40 per cent. On Friday, the share lost some ground and closed at Rs 300.15, a reduced gain since the listing of Rs 28.15 or 10.35 per cent.

The issue from Awfis Space Solutions Limited is currently on. The issue consists of a fresh issue of Rs 128 crore and an offer for sale of 1,22,95,699 equity shares in a price band of Rs 364-383. The company, as the name suggests, is in the business of providing common workspaces on a daily or longer-term contracted basis.

Currently, the company is on a net loss, based on its restated accounts, which are showing a declining trend. Looking at the leverage opportunity that the company has and the fact that 75 per cent of the space is rented out, it could be expected that the company should report positive numbers for the year ended March 25.

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The issue opened on Wednesday, May 22, and would close on Monday, May 27. At the end of the second day of the issue opening, it received decent support, with the issue being subscribed an overall 11.4 times.

The QIB portion was subscribed 3.39 times, the HNI portion 20.98 times and the Retail portion 21.08 times. Investors looking for listing pop and having a medium-term holding period would be rewarded if their application for the share is successful.

The week ahead sees May futures expire on Thursday, May 30. The current value of NIFTY at 22,957.10 points is higher by 386.75 points or 1.71 per cent compared to the May series opening of 22,570.35 points. It would be interesting to note that all the gains have been made in the previous week, as prior to this, the series was negative. While currently the momentum is with the bulls, one needs to be cautious as to the way markets may move on election results eve.

The sixth phase of voting has concluded, and now just the seventh and final phase of voting on Saturday, June 1, remains. With the sharp rally over the last two weeks since markets made a bottom on Monday, May 13, they have rallied quite sharply. They have also made new lifetime highs. Very clearly, the markets are convinced that the ruling BJP-led NDA would form the next government. Exit poll assessment would begin Saturday evening and carry on till results are announced on Tuesday morning.

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With expiry happening during the coming week, volatility on expiry day could get substantially elevated as people decide to lighten positions and adopt a wait-and-watch attitude. FPIs have been big sellers in the month of May and, barring a couple of days, sold every day. This excess of liquidity, while it was absorbed by domestic institutions, could see a mismatch on expiry day.

Coming to the week ahead, expect sharp volatility as expiry day approaches. The election results getting closer could cause volatility to rise post-futures expiry as positions would, in all probability, get liquidated to a large extent. With limited positions open in the market from Monday to Wednesday in the week, June 3 to June 6 could see really sharp volatility. The strategy for the week ahead would be to reduce positions as the week progresses.

Refrain from any overweight positions in either direction, as sharp volatility is expected. Analyse exit polls for all they are worth, look at the results and then take a call.

Trade cautiously.

(Arun Kejriwal is the founder of Kejriwal Research and Investment Services. The views expressed are personal)

–IANS

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Musk's X has paid over $50 million in ad sharing to 150K creators: CEO

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New Delhi, May 26 (IANS) Elon Musk-run X has paid more than $50 million in ad sharing to creators on its “video-first” platform, its CEO Linda Yaccarino has announced.

When Twitter was acquired by Musk in October 2022, it was basically a 140-character messaging app.

“Now, less than 18 months later, it is a ‘video-first’ platform, and part of what’s driving that success is inviting creators onto our platform,” said Yaccarino.

At the time of its $44 billion acquisition, there were about 3,500 creators on the platform.

“Now, our video capabilities have become so sophisticated that we’ve probably got over 150,000 creators on the platform and paid out over $50 million in ad-sharing relationships with those creators,” she informed.

The X platform is inviting more and more creators to give its 600 million monthly active users (MAUs) “the ultimate experience”.

Last month, Yaccarino announced that X would soon launch a dedicated TV app for users to upload high-quality videos, similar to Google-owned YouTube.

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This will be your “go-to companion for a high-quality, immersive entertainment experience on a larger screen,” she posted.

X users would see trending video algorithms, artificial intelligence (AI)-powered topics and cross-device experience, among other features.

The tech billionaire is making X “an everything app”.

According to him, X has 600 million monthly active users and about half of which use the platform every day.

–IANS

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FII buying, Q4 results key factors for stock market next week

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Mumbai, May 26 (IANS) Indian equity markets closed at an all-time high last week. The Nifty and Sensex hit new peaks on Friday, with the Nifty surpassing the 23,000 mark for the first time. Similarly, the Sensex shot up by 1,400 points to a fresh record high of 75,636.50.

Last week, Nifty Bank surged 2 per cent following the announcement by the Reserve Bank of India (RBI) of giving a dividend of Rs 2.11 lakh crore to the government.

This improved market sentiment significantly. The substantial dividend is expected to help the government reduce its fiscal deficit and boost capital expenditure.

The outlook for the market next week will be guided by major domestic and global economic data, according to experts.

On the global front, rising US bond yields and commodity prices (crude oil, gold, and silver) are the other factors that will be closely monitored, as they have the potential to influence market sentiment.

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Furthermore, upcoming economic data releases from Japan and the US, along with movements in the global currency market, will also be important factors to consider.

On the domestic front, many companies, including some big names like Divislabs, Tata Steel and Apollo hospital will release their financial results next week.

Positive earnings reports from the final quarter could provide strength for the market to continue its bullish momentum.

According to market experts, we are very close to the Lok Sabha election results and the verdict will give a boost to FII flows.

Mehul Kothari, DVP – Technical Research, Anand Rathi Shares and Stock Brokers, said: “Nifty hit the milestone of 23,000 during Friday’s session and ended the week with gains of over 2 per cent. It seems that the market is discounting the BJP government winning the elections with a decent majority.”

As of now, the index is approaching the higher end of the rising channel placed near 23,100-23,200. Thus, from here on, “we will maintain a profit-booking stance in the market,” said Kothari.

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“On the downside, 22,800-22,600 seems to be extremely strong support for the coming week,” he added.

–IANS

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Aurobindo Pharma arm Eugia's manufacturing unit gets 'official action indicated' status by USFDA

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New Delhi, May 25 (IANS) Drug maker Aurobindo Pharma on Saturday announced that the US Food and Drug Administration (FDA) has classified Eugia Pharma Specialities’ (a wholly owned subsidiary of the company) formulation manufacturing facility — Unit III, as ‘Official Action Indicated (OAI)’.

According to the company, the USFDA conducted an inspection at Unit III of Eugia Pharma Specialities, situated in Sangareddy District, Telangana, from January 22 to February 2.

“Subsequently, the USFDA has determined the inspection classification status of this facility as Official Action Indicated,” Aurobindo Pharma said in a regulatory filing.

“The company remains committed to working closely with the USFDA and continues to enhance its compliance on an ongoing basis,” it added.

OAI means objectionable conditions or practices were found, and/or the firm’s response was not satisfactory, so regulatory and/or administrative actions will be recommended.

In an Enforcement Report published earlier this month, the USFDA informed that Aurobindo Pharma is recalling products in the US due to manufacturing issues.

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The drug maker recalled 13,605 bottles of Clorazepate Dipotassium Tablets (3.75 mg and 7.5 mg) from the US market. Clorazepate Dipotassium Tablets are used to treat anxiety.

–IANS

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Markets hit all-time high amid strong FII comeback

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Mumbai, May 25 (IANS) Indian equity benchmarks closed at an all-time high this week as Nifty touched the 23,000 points milestone amid a strong comeback from foreign institutional investors (FII).

Nifty closed at 22,957 after touching a new all-time high of 23,026 intra-day, up 455 points or 2.02 per cent. Sensex ended with 1,404 points or 1.90 per cent gains at 75,410 after hitting a new high of 75,636.

The rally has been led by large-cap stocks. The BSE large-cap index shot up nearly 2 per cent this week.

Adani Energy Solutions, HAL, Adani Total Gas, Adani Power, BEL, Adani Enterprises, and Hindustan Zinc were major gainers. On the other hand, Indigo, Zydus Lifesciences, Bajaj Holdings, Sun Pharma, Nykaa, and Zomato were the major laggards.

Midcap and smallcap stocks also saw decent gains this week.

In midcap, Vodafone Idea, Uno Minda, Solar Industries India, Union Bank of India, ABFRL, Balkrishna Industries, Zee Entertainment, and Samvardhana Motherson Int were major gainers, while Deepak Nitrite, Max Financial, PB Fintech, and Max Healthcare Institute were major losers.

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In smallcap, RVNL, Bharat Dynamics, PNC Infra, Cochin Shipyard, Finolex cables, Garden Reach Shipbuilders, and Dredging Corp were major gainers. On the other hand, Parag Milk, Dodla Dairy And Global Health, and IFGL Refractories were major laggards.

Around Rs 1,165 crore worth of stocks were sold by FIIs in the market this week, which is the lowest in the last several weeks and shows that buying by foreign investors is returning.

At the same time, domestic investors invested Rs 6,977 crore in Indian markets this week.

According to market experts, the situation is once again slowly changing in favour of the ruling dispensation.

“The base case scenario appears to be a clear verdict in favour of BJP/NDA. Also, the FII’s massive selling has ceased and they have even turned buyers in recent days,” they said.

Going forward, as clarity emerges on the election front, FIIs are likely to buy in India since they cannot afford to miss the post-election results rally.

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“The rally may begin even before the election result,” they added.

–IANS

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