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LIC IPO gets Sebi approval; may see delayed launch over Ukraine crisis

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LIC's IPO is one of the fastest to get Sebi approval; the insurer had filed its DRHP on February 12.

Life Insurance Corporation

India’s markets regulator has approved the public listing of Life Insurance Corporation of India (LIC), sources told 'Business Standard' on Wednesday as the war in Ukraine casts a shadow over the state-owned firm’s IPO timing.

The government is looking to sell a 5 per cent stake, or 316 million shares, in the insurer through the IPO. Investment banking sources said  issued the so-called final observations on Tuesday evening.

LIC's IPO is one of the fastest to get  approval; the insurer had filed its DRHP on February 12. Once a DRHP obtains final approval, the company can launch its share sale.

However, LIC may not launch its IPO immediately given the volatile market conditions. Investment bankers said they would want to wait till the market sentiment improves.

Benchmark indices have come off 9 per cent this year amid a surge in global oil prices following Russia's attack on Ukraine. The government is planning to divest 316.2 million shares, 5 per cent stake, in IPO.

The government, which holds 100 per cent stake in LIC, was looking mop up between Rs 60,000 crore and Rs 75,000 crore in the IPO. This would peg LIC's value between Rs 12 trillion and Rs 15 trillion.

The final valuation will be decided closer to the IPO.

The mega offering is coming at a time when foreign portfolio investors (FPIs) have hit an exit button. They have pulled out over Rs 1 trillion from domestic stocks so far this year.

The IPO will test the appetite and depth of the domestic market as it is by far the largest share sale seen in the history of Indian markets.

The previous biggest IPO of Paytm worth Rs 18,300 crore had bombed with shares crashing more than 60 per cent.

LIC, which is a household name in the country thanks to its over 250 million policy holders, has created significant buzz among retail investors already.

The LIC share sale is being handled by 10 investment banks led by Kotak Mahindra Bank and Axis Capital.

Also Read | Network18 Exclusive | Raghuram Rajan: Inflation could stay higher for longer

Network18 Exclusive | Raghuram Rajan: Inflation could stay higher for longer

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In conversation with Network18, former RBI Governor Raghuram Rajan said there is a real risk that inflation could get entrenched if the Ukraine conflict continues for long. But he adds that the West is looking to energise other sources of fuel supplies.

Ashoka University founders have bartered away its 'soul': Raghuram Rajan on  resignation row

In conversation with Network18, former RBI Governor Raghuram Rajan said there is a real risk that inflation could get entrenched if the Ukraine conflict continues for long. But he adds that the West is looking to energise other sources of fuel supplies.

Also Read: Explained | What now as the US bans Russian oil?

Network18: Will the sanctions stick? In the past, controls imposed by Trump on Iran, China did not go away when Biden came in. Sanctions tend to stay, so therefore can this be structurally a longer inflation?

RGR: Yes, and I would offer a qualified no also. The unprecedented nature of the attack on Ukraine has galvanised the Western world along with Japan, so I think they are very serious about sanctions. This is a violation of any notion of the world order, so therefore it has to be pushed back on.

So, they are much more determined to implement the sanctions and prevent any leakages. That is on the Yes side. On the No side, given the kind of damage this could do to the global economy, Russia being a huge exporter of energy, critical commodities like Nickel, Palladium, Neon, Xenon as well as fertilisers and grains.

Also Read: PM Modi asks financial institutions to come out with futuristic ideas to fund emerging economic needs

I think there is a sense that the damage is to be limited by energising other sources of supplies. So, on the oil front, for example, we have talks going on with Venezuela, and Iran, in an attempt to bring Iran's oil back. And of course, Shale, which has been very very circumspect of production because they did not want to invest too much. Shale will also come back. So over a few months, the supplies will also start responding to the high prices even as demand starts falling because of the high price

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According to Shipping Corp, the war in Ukraine must end in order for the stake sale to proceed.

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The deadline for financial proposals to privatise the company has been extended from January 18 to allow bidders to do more thorough due diligence.Trade


The proposed privatisation of Shipping Corporation of India Ltd. may have to wait until market turbulence caused by Russia's invasion of Ukraine subsides and investors regain confidence.

In an interview with Bloomberg Television on Tuesday, Shipping Corp. Chairperson and Managing Director Harjeet Kaur Joshi said, "Globally markets are feeling the impact of the crisis, I don't think this is the best opportune period." The market's performance will "significantly" influence the timing of the divestiture, she added, adding that this is not the government's position.


Because Russia is a major provider of energy, metals, and agriculture, the conflict in Ukraine is causing supply problems. Commodity prices have risen as a result of efforts to isolate Moscow, from petroleum to nickel to aluminium and wheat. Transport of crude oil  As shipowners avoid doing business with Russia, the cost of transporting oil freight from Russian ports is increasing. As a result of the hostilities, over a thousand seafarers and around a hundred ships have been stuck near Ukraine.

According to Joshi, the war has had no impact on Shipping Corp.'s operations because Indian refiners buy very little oil from Russia. The deadline for financial proposals to privatise Shipping Corp. has been extended from January 18 to allow bidders to conduct more thorough due diligence due to the company's massive size, she said, adding that the corporation is in the process of supplying data. As part of the divestment deal, Shipping Corp. is demerging its non-core assets, she added.

Credit Suisse downgrades India to ‘Underweight’ on higher oil prices, calls cut ‘tactical’

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Our downgrade of India is tactical and largely based on higher oil prices. Oil hurts the current account and adds indefinite pressure besides increasing sensitivity to US Fed rate hikes,” Credit Suisse said

Credit Suisse downgrades India to 'Underweight' on higher oil prices, calls  cut 'tactical'

Ratings agency Credit Suisse has downgraded India’s position to ‘Underweight’ from ‘Overweight’ due to high oil prices, CNBC-TV18 reported on March 8. It termed the cut as ‘tactical’.

“We tactically cut India’s position to underweight from overweight and will look for opportunities to re-enter the Indian market,” Credit Suisse told the channel.

“Our downgrade of India is tactical and largely based on higher oil prices. Oil hurts the current account and adds indefinite pressure besides increasing sensitivity to United States Federal Reserve rate hikes,” they said.

Follow our LIVE coverage of the Russia-Ukraine War here

It, however, added that it still liked “India’s positive EPS revisions and positioning in credit and property cycles”, further stating that it would use funds freed from India to raise China to ‘Overweight’ from ‘Market Weight’.

The agency noted that in Asia, India is “most vulnerable to higher oil prices, along with the Philippines” and “rich valuations magnify the short term risks.

“We will use the funds freed from India to raise China from Market Weight to Overweight,” it added.

The prospect of a ban on oil imports from Russia sent crude prices soaring and fueled concerns about rising inflation.

Oil prices jumped to their highest levels since 2008 as the US and European allies considered banning Russian oil imports, in response to the country's invasion of Ukraine, while it looked less likely that Iranian crude would return swiftly to global markets.

Russia calls the campaign a "special operation".

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Western ban on oil imports will double price to $300 a barrel: Russia

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A Western ban on Russian oil imports may more than double the price to $300 a barrel and prompt the closure of the main gas pipeline to Germany, Moscow warned on Monday

Oil, Brent Crude, Oil Prices, Oil Companies

A Western ban on Russian oil imports may more than double the price to $300 a barrel and prompt the closure of the main gas pipeline to Germany, Moscow warned on Monday, as talks on hardly advanced amid efforts to agree on civilian safe passage.

Russia's invasion, the biggest attack on a European state since World War Two, has created 1.7 million refugees, a raft of sanctions on Moscow, and fears of wider conflict in the West unthought-of for decades.

Sieges and the bombing continued as Kyiv rejected possible humanitarian corridors to and Belarus, but said some limited progress had been made on agreeing logistics for the evacuation of civilians.

Moscow would give the residents of the Ukrainian cities of Sumy and Mariupol the choice of moving elsewhere in on Tuesday, setting a deadline in the early hours for Kyiv to agree, Russian news agencies reported.


Seeking to ratchet up the pressure on Russian President Vladimir Putin, the said Washington and its European allies were considering banning Russian oil imports. Oil prices spiked to their highest levels since 2008.

"A rejection of Russian oil would lead to catastrophic consequences for the global market," said Russian Deputy Prime Minister Alexander Novak, saying the price could more than double to over $300 per barrel.

U.S. President Joe Biden held a video conference call with the leaders of France, and Britain as he pushed for their support on the ban.

But if need be the is willing to move ahead without allies in Europe, two people familiar with the matter told Reuters. Many countries on the continent are heavily reliant on Russian energy.

last month froze the certification of Nord Stream 2 that was due to pipe gas from to 

"We have every right to take a matching decision and impose an embargo on gas pumping through the Nord Stream 1 gas pipeline," said Novak.

The Russian economy, banking system, and currency have been under intense pressure as punishment for the assault on  The country will be excluded from all of JPMorgan's fixed income indexes, the bank said in the latest such development on Monday.

TALKS 'NOT EASY'

More than 1.7 million Ukrainians have fled to Central Europe since the conflict began on Feb. 24, the United Nations refugee agency said on Monday. read more

calls its actions in Ukraine a "special operation" that it says is not designed to occupy territory but to destroy its southern neighbour's military capabilities and capture what it regards as dangerous nationalists.

After the third attempt to ease the bloodshed at talks in Belarus, a Ukrainian negotiator said that although small progress on agreeing logistics for the evacuation of civilians had been made, things remained largely unchanged.

"As of now, there are no results that significantly improve the situation," Mykhailo Podolyak said.

Russian negotiator Vladimir Medinsky told journalists the talks were "not easy".

"We hope that from tomorrow these corridors will finally work," he said.

Russia has proposed two corridors inside of Ukraine, according to Interfax.

Escape routes to Russia and Belarus, its close ally, were earlier called "completely immoral" by a spokesperson for Ukrainian President Volodymyr Zelenskiy.

A fourth round of talks are due soon, Russian negotiator Leonid Slutsky told Russian state television.

"Our president is not scared of anything, including a direct meeting with Putin," said Ukraine's foreign minister Dmytro Kuleba late on Monday.

Kremlin spokesman Dmitry Peskov told Reuters Moscow would halt operations if Ukraine ceased fighting, amended its constitution to declare neutrality, and recognised Russia's annexation of Crimea and the independence of regions held by Russian-backed separatists.

French President Emmanuel Macron, who spoke with Putin multiple times last month in the run-up to the invasion, said he saw no impeding breakthrough.

"I don't think that in the coming days and weeks, there will be a real negotiated solution", he said.

FAILED EVACUATIONS

The general staff of Ukraine's armed forces said Russian forces were "beginning to accumulate resources for the storming of Kyiv", a city of more than 3 million, after days of slow progress in their main advance south from Belarus.

Outside the capital, attacks continued.

A Russian strike on a bread factory killed 13 in the town of Makariv in the Kyiv region, Ukrainian officials said. Reuters could not verify the details. Russia denies targeting civilians.

In the encircled southern port city of Mariupol, hundreds of thousands of people remained trapped without food and water under regular bombardments.

Deputy mayor Sergei Orlov told CNN that authorities were ready to evacuate 6,000 people on Saturday but Russians had bombed buses that were to transport them. Moscow has accused the Ukrainians of blocking the planned evacuations.

In the eastern city of Kharkiv, police said the total death toll from the Russian bombardment was 143 since the start of the invasion. It was not possible to verify the toll.

In Irpin, people picked their way over the twisted ruins of a large bridge.

"It's like a disaster," a young woman leaving with her children told Reuters.

Ukraine said on Monday its forces had retaken control of the town of Chuhuiv in the northeast after heavy fighting and of the strategic Mykolayiv airport in the south. Neither could immediately be verified.

In a humanitarian update, the United Nations described one psychiatric hospital 60 km (40 miles) from Kyiv running out of water and medicine with 670 people trapped inside, including bedridden patients with severe needs.

U.S. congressional negotiators on Monday were nearing a deal on a bill to provide Ukraine with billions of dollars in emergency aid.

A senior U.S. defence official said Putin had now deployed into Ukraine nearly 100% of the more than 150,000 forces that he had pre-staged outside the country before the invasion.

Moscow has acknowledged nearly 500 deaths among its soldiers, but Western countries say the true number is much higher and Ukraine says it is many thousands.

Death tolls cannot be verified, but footage filmed across Ukraine shows burnt-out wreckage of Russian tanks and armour, and parts of Ukrainian cities reduced to rubble by Russian strikes.

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TCS plans overhaul with aim to double revenue to $50 bn before 2030

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The Mumbai-based company will create four internal teams in order to double its revenues, according to people familiarTata consultancy services, TCS


plans to overhaul its organizational structure with specialized groups targeted to help startups as well as large global firms as Asia’s largest software outsourcing provider gears up to double its revenues to $50 billion before 2030, according to people familiar.

The Mumbai-based company will create four internal teams -- a business transformation group, incubation group, enterprise growth and another aimed at new business models, according to people familiar who didn’t want to be identified as the details are private. TCS is expected to present this proposed new structure at its board meeting this week, said one of the people.

The rejig is aimed at aligning TCS, India’s second-largest company by market value, with the changing needs of its clients who are increasingly looking to digitise in the post-Covid-19 world and the boom in startups. India’s IT services sector has been on a roll, buoyed by the pandemic-induced rush among enterprises to transform into work-from-anywhere, digital businesses, boosting growth and making it a $227 billion industry by end of March.

A spokesperson for the company said TCS won’t comment on internal business plans or strategies.

Business Journey

TCS’s new structure is based on where its customers are in their business journey, the people said. It factors in, for instance, that a sub-$5 billion start-up would have a very different set of technology and business requirements than a large global corporation.

TCS, which employs over half-a-million around the world, the bulk of them in India, reported $25 billion in revenues for the year ended Dec. 31. Riding the sector boom, TCS and its rivals Infosys Ltd. and HCL Technologies have been signing on new customers, expanding contracts and hiring software programmers by the thousands every quarter.

The outsourcing giant, part of the Tata Group, is also planning to open a dozen innovation centers globally including the US and Europe, according to one of the people familiar.

TCS, however, will need to manage its surging staff costs that partly led to the outsourcer missing analyst estimates on profit last quarter. The company provides a suite of services from cloud to data analytics and infrastructure management to world’s largest including Citigroup Inc., General Motors Co., Woolworths Group Ltd. and Petronas Gas Bhd.

Also Read | Sachin Bansal-led Navi Technologies plans Rs 4,000 cr IPO, filing DRHP soon

Sachin Bansal-led Navi Technologies plans Rs 4,000 cr IPO, filing DRHP soon

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ICICI Securities, BofA and Axis Capital are the investment banks handling the share saleSachin Bansal

Navi Technologies is planning to raise Rs 4,000 crore in fresh capital through an initial public offering (IPO). The company is expected to file its draft red herring prospectus with market regulator Sebi this week, said people in the know.

ICICI Securities, BofA and Axis Capital are the investment banks handling the share sale.

The company declined to comment on a query sent by Business Standard on its plans.

Navi Tech is co-founded and promoted by Flipkart co-founder 

Sources said the could hit the market during the first quarter of next financial year. The company will use the proceeds to fuel its growth.

Navi Tech is a tech-driven financial products and services company. Its key offerings include personal loans, housing loans, general insurance and mutual funds (MFs).

Founded in 2018, the company with its digital-first approach has tried to disrupt the businesses it operates in. For instance, in the MF space it has launched the exchange traded funds (ETFs) with lowest fee structure. In personal loans, it instantly offers loans of up Rs 20 lakh through a completely paperless process.

Till date, Bansal has invested around Rs 4,000 crore into the firm.

In 2019, Navi had acquired Chaitanya India Fin Credit for Rs 739 crore and entered the microfinance segment. Chaitanya had also applied for a universal banking licence from the Reserve Bank of India (RBI). Navi’s loan book size is about Rs 3,500 crore.

Navi MF had acquired assets of Essel MF in 2021. The data from Association of Mutual Funds in India (Amfi) shows that Navi MF has assets of Rs 930 crore as of December quarter.

The company turned profitable in FY21, posting a consolidated profit of Rs 71 crore with a total income of Rs 780 crore and expenditure of Rs 673 crore.

Also Read |  Delhi court grants CBI 7-day custodial interrogation of Chitra Ramkrishna

Delhi court grants CBI 7-day custodial interrogation of Chitra Ramkrishna

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The CBI arrested the former NSE MD on Sunday after her anticipatory bail application was dismissed by the court on Saturday

Chitra Ramkrishna

A Delhi court on Monday granted seven-day custodial interrogation of ex-MD & CEO of NSE in co-location scam case.

The produced the former managing director and chief executive officer of (NSE) before special Special Judge Sanjeev Aggarwal and had sought 14-day custodial interrogation in the case.

The arrested the accused on Sunday after her anticipatory bail application was dismissed by the court on Saturday.

The CBI had recently questioned Ramkrishna in the matter. The Income Tax (I-T) Department earlier raided various premises linked to Ramkrishna in Mumbai and Chennai.

Ramkrishna has been on the radar of the Securities and Exchange Board of India (SEBI).

The CBI court had recently sent Anand Subramanian, former Group Operating Officer and advisor to Ramkrishna, to CBI custody. He was arrested by the CBI from Chennai.

The arrest was made in the case related to the co-location scam, the FIR for which was registered in May 2018, amid fresh revelations about irregularities at the country's largest stock exchange.

The CBI is probing the alleged improper dissemination of information from the computer servers of the market exchanges to the stock brokers.

Earlier, SEBI penalized the NSE, Ramkrishna and Ravi Narayan and two other officials for lapses in recruitment at the senior level. Ravi Narain was the MD and CEO of the from April 1994 till March 2013, while was MD and CEO of the NSE from April 2013 to December 2016.

Sebi observed that the NSE and its top executives violated securities contract norms relating to the appointment of Subramanian as group operating officer and advisor to the managing director.

Article Source:- Business Standard

Also Read| Rupee trades at record low of 76.96 a dollar on soaring crude prices

RBI doesn't listen: TV Mohandas Pai complains to FinMin about central bank

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Pai was furious that the central bank does not even respond to letters from the industry, forcing companies to hire accounting firms to get the job done.

RBI doesn't listen: TV Mohandas Pai complains to FinMin about central bank


TV Mohandas Pai has sought the finance ministry's intervention in the industry's relationship with the Reserve Bank of India (RBI), saying the central bank "doesn't listen" and does not respond to letters.

"If you write a letter to RBI asking for an approval, they don't reply. You have to hire a Big 4 (accounting firm) to go to Bombay, walk on the tables, and get your approval. It's a sad reality of India. Please accept that," Pai, chairman of Aarin Capital and Manipal Global Education, said at an interaction with the top brass of the finance ministry, including Finance Minister Nirmala Sitharaman, in Bengaluru on March 7.

Finance ministry officials are currently visiting various cities and holding post-budget interactions with stakeholders.

Pai's initial grouse was to do with tax and Employee Stock Ownership Plans (ESOP) of start-ups. According to Pai, 40 of India's 93 unicorns are based outside India because of RBI regulations and related compliance issues.

"It is a mess. RBI doesn't listen. We have gone to them many times. If you can take a meeting and listen to us with the RBI, we will be very grateful," Pai told the finance minister and her secretaries.

Ajay Seth, the Department of Economic Affairs secretary and an RBI board member, defended the central bank.

"It will be a loose comment to make that RBI does not listen. They will not agree with your viewpoint. We here, we have heard all your suggestions very carefully. We consider them. We find some of them not feasible and we don't act upon it. Others, we act upon it. If you feel there is an issue with the RBI that has any fiscal element, any policy issue for the government, we will be all ears," Seth said.

However, Pai doubled down on his complaint, saying matters had not improved despite him having personally spoken to RBI Governor Shaktikanta Das.

"I spoke to Dr Rajan (former RBI governor Raghuram Rajan), he came to Bangalore and tried to improve matters. It improved. I spoke to Shaktikanta Das in Bombay. I met him several times, spoke to him. But we don't see an improvement. It's not like interacting with you. They don't respond to letters," Pai said.

"Why can't you have a status where everybody has to respond to a query and give an approval within 45 days. Then the problem will be solved. We have to hire a Big 4. Pay them money. They go to Bombay. They go everywhere. Why should we do that?"

The RBI did not immediately comment on Pai's remarks.

Read Also| Rupee trades at record low of 76.96 a dollar on soaring crude prices

CBI arrests former NSE CEO Chitra Ramkrishna in co-location case

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She will be presented before a Delhi court on Monday morningChitra Ramkrishna

The Central Bureau of Investigation (CBI) on Sunday night arrested former managing director (MD) and chief executive officer (CEO) of Stock Exchange in Delhi in the co-location case after her anticipatory bail plea was rejected by a Special court on Saturday.

“She will be presented before a Delhi court on Monday morning,” a official said under condition of anonymity.

had arrested former group operating officer of NSE Anand Subramanian last week. CBI may also seek extension of Subramanian’s custody on Monday whose 10-day custody ended on Sunday.

The arrests were made in the case related to the co-location scam, the FIR for which was registered in May 2018, amid fresh revelations about irregularities at the country’s largest stock exchange. The CBI had last month questioned Ramkrishna, Subramanian and Ravi Narain, also former CEO of the NSE.

A report of the Securities and Exchange Board of India last month showed that Ramkrishna took key decisions at the NSE from 2013 to 2016 on the advice of a “Himalayan yogi”, whom she had never met and who instructed her to appoint Subramanian group operating officer.

The four-year-old FIR of the CBI was primarily against Sanjay Gupta, MD of OPG Securities. It also named his brother-in-law Aman Kokrady and Ajay Shah, a data specialist and researcher employed by the NSE, along with unknown officials of the NSE and Sebi for their role in the controversy.

Between June 2010 and March 2014, the NSE had deployed the so-called tick-by-tick (TBT) architecture at its colo facility. TBT disseminated data feed sequentially, giving preference to trading members (TM) that had connected first to the colo server.

Taking advantage of the system, OPG Securities frequently obtained first access to the exchange system in connivance with certain NSE staffers. The issue was brought to light by a whistleblower, Ken Fong, who sent three complaint letters to Sebi in January, August, and October 2015, following which the regulator initiated multiple investigations and forensic audits into the matter.

In April 2019, Sebi directed the exchange to disgorge Rs 625 crore, along with an interest of 12 per cent annum since 2014, for lapses at its colo facility, which allowed unfair access to certain brokers. Sebi also told Narain and Ramkrishna, who were at the helm when the exchange servers were exploited, to disgorge a fourth of their salary for a specific period.

The market regulator directed OPG Securities, Gupta, and three others to disgorge Rs 15.6 crore, with an interest of 12 per cent per annum since April 2014. All of them have moved the Securities Appellate Tribunal against the order, where the matter is currently being heard.

Read Also| Rupee trades at record low of 76.96 a dollar on soaring crude prices

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