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

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According to a Kotak Institutional Equities report, an average crude price of $120a barrel will cost the Indian economy an incremental $70 billion, translating to 1.9 percent of the GDP, in FY2023 versus FY2022

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

The rupee hit an all-time low of nearly 77 a dollar on Monday after crude oil made fresh surges on news reports that the US and its European allies were weighing a ban on Russian oil.  This was the fourth consecutive session when the currency weakened.

The home currency was trading at 76.96 a dollar, down 1.05 percent from its previous close, at the time of filing this story. It had opened at 76.96 a dollar.

Analysts said that the Russian invasion of Ukraine and likely lower exports of Russian crude oil will keep the oil prices elevated for a protracted period.  "We note increasing risks of global crude prices staying elevated in the next 6-9 months due to large imbalances in the global crude oil markets," an analyst said.

Brent soared to a near 14-year high of $140. Oil reached its highest since 2008 in US trading, and there is no sign of a cooling-off.

The latest setback came after US Secretary of State Antony Blinken told news channels, “We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil, while making sure that there is still an appropriate supply of oil on world markets.”

According to Kotak Institutional Equities report, an average crude price of $120a barrel will cost the Indian economy an incremental $70 billion, translating to 1.9 percent of the GDP, in FY2023 versus FY2022. Steep crude prices will pose stiff challenges in the form of higher CAD/GDP, higher inflation and lower growth.

The additional cost will be borne by the government in the form of lower excise revenues and higher MSPs, households in the form of higher retail prices of petroleum products and  companies; however, companies will pass on higher fuel costs to households eventually.

The delays in the potential return of Iranian crude to global markets, fresh supply disruptions in Libya and continued selling by foreign investors in Indian equities also dampened the sentiments among traders and also kept the domestic currency under pressure. Since October, Foreign investors have sold around Rs2 trillion.

On the domestic front, participants will be closely eyeing the state election results in five states of Uttar Pradesh, Uttarakhand, Goa, Punjab and Manipur on March 10. On the macroeconomic front, the IIP data is scheduled for March 11.

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NSE case: CBI court dismisses Chitra Ramkrishna's anticipatory bail plea

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The CBI had earlier arrested Anand Subramanian, NSE's former group operating officer, from Chennai in relation to the alleged scam worth thousands of crores of rupees

Chitra, Chitra Ramakrishna

A Special CBI court in Delhi on Saturday dismissed the anticipatory bail plea of Chitra Ramakrishna, the former CEO-MD of Stock Exchange (NSE), in connection with the NSE co-location case.

Ramakrishna, through her counsel, had approached the court seeking relief from her arrest.

Her plea was opposed by the prosecution. After hearing the argument of defense and the prosecution, the court dismissed the plea.

On February 24, the CBI arrested Anand Subramanian, the ex-Group Operating Officer of NSE. He was later sent to CBI's custody till March 6.

In December 2015, Sebi received a whistleblower complaint alleging governance issues in appointment of Subramanian. The market regulator then sought an explanation from the exchange on various points raised in the complaints. The exchange, which was then headed by Ramkrishna, was evasive. Sebi sent several reminders to the exchange. In October 2016, Subramanian was ousted from the exchange.

In December 2016, Ramkrishna also stepped down as MD& CEO. Around the same time, Sebi had also received whistleblower complaints against NSE’s colocation (colo) facility. The complaint said that the exchange was granting unfair access to certain brokers and alleged scam worth thousands of crores of rupees.

The latest questioning was done on the basis of a first information report (FIR) filed by the CBI on May 28, 2018 in the co-location (colo) matter. The four-year old FIR was primarily against Sanjay Gupta of OPG Securities, a broking outfit alleged to have got unfair access to NSE's colo facilities.

The FIR also named unknown officials of the NSE for their role in the colo controversy. Market observers say the arrest by the CBI is on account of pressure on the central agency to crack down on the case. While Sebi has been criticised for delay in passing the order in the Ramkrishna matter, CBI too had taken little action after filing the FIR nearly four years ago.

The Central Bureau of Investigation (CBI) probing the NSE fraud has been making efforts to find fresh clues to reach the mysterious Himalayan Yogi, with whom the classified informations were shared by Ramakrishna.

It was learnt in the forensic report of Ernst & Young (E&Y) that Subramanian could be the mysterious Yogi. The SEBI had, on February 11, denied it.

The CBI is trying to corroborate the evidence it collected with the questioning of Subramanian.

It is probing the matter since May 2018 but has failed to find any concrete evidence to identify the mysterious Himalayan Yogi.

Recently, the SEBI had imposed a fine of Rs 3 crore on Ramakrishna, following the market regulator finding that she allegedly shared vital inputs about the NSE with the yogi. "Information regarding organisational structure, dividend scenario, financial results, human resource policies and related issues, response to regulator, etc., were shared by her with the yogi," said the source. Between 2014 and 2016 she sent emails at rigyajursama@outlook.com.

On April 1, 2013, Ramakrishna became the CEO and MD of NSE. She brought Subramanian to NSE as her advisor in 2013.

Subramanian was made the Chief Strategic Advisor of NSE. He served at this post between 2013 and 2015 before being made Group Operations Officer and Advisor to the MD between 2015 and 2016, despite having no exposure to the capital market.

Previously working as a mid-level manager in Balmer and Lawrie, he had seen his salary increased from Rs 15 lakh to Rs 1.68 crore annually, and then to Rs 4.21 crore.

Subramanian quit NSE in October 2016 and Ramakrishna in December 2016. The CBI swung into action in the case in 2018 and has been probing the matter since then.


Russia declares ceasefire in 2 Ukrainian cities to let civilians evacuate

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The Russian defence ministry said its units had opened humanitarian corridors near the cities of Mariupol and Volnovakha, which were encircled by its troops

Ukraine

said its forces had stopped firing near two Ukrainian cities on Saturday to allow safe passage to civilians fleeing fighting, but was continuing its broad offensive in Ukraine, where the capital Kyiv came under renewed assault.

The Russian defence ministry said its units had opened humanitarian corridors near the cities of Mariupol and Volnovakha which were encircled by its troops, Russia's RIA news agency reported.

In Mariupol, citizens would be allowed to leave during a five-hour window, it quoted the city's officials as saying.

There was no immediate confirmation that firing had stopped and it was not clear if the ceasefire would be extended to other areas, or how long it would last, as Russia's invasion of entered into its tenth day.

The Russian defence ministry said a broad offensive would continue in Ukraine, RIA said.

Aid agencies have warned of an unfolding humanitarian disaster as food, water and medical supplies run short and refugees stream into western and neighbouring European countries.

A Ukrainian negotiator had said on Thursday that a second round of ceasefire talks with had not yielded the results Kyiv hoped for, but both sides had reached an understanding on creating humanitarian corridors. Mykhailo Podolyak said the two sides envisaged a possible temporary ceasefire in some areas to allow evacuations of citizens.

In the southeastern port city of Mariupol - a key prize - there is no water, heat or electricity and food is running out, according to Mayor Vadym Boychenko.

"We are simply being destroyed," he said.

Ukraine's state service of special communications and protection of information says Russian forces have focussed efforts on encircling Kyiv and Kharkiv, the second-biggest city, while aiming to establish a land bridge to Crimea.

Kyiv, in the path of a Russian armoured column that has been stalled outside the Ukrainian capital for days, was again under attack, with explosions audible from the city centre.

Ukrainian media outlet Suspilne cited authorities in Sumy, about 300 km (190 miles) east of Kyiv, as saying that there is a risk of fighting in the city's streets, urging residents to stay in shelters.

President Vladimir Putin's actions have drawn almost universal condemnation, and many countries have imposed heavy sanctions as the West balances punishment with avoiding a widening of the conflict.

INFORMATION WAR

Russia's parliament passed a law on Friday imposing a prison term of up to 15 years for spreading intentionally "fake" news about the military.

"This law will force punishment - and very tough punishment - on those who lied and made statements which discredited our armed forces," said Vyacheslav Volodin, the chairman of the Duma, Russia's lower house of parliament.

is blocking Facebook for restricting state-backed channels and the websites of the BBC, Deutsche Welle and Voice of America.

CNN and CBS News said they would stop broadcasting in Russia, and other outlets removed Russian-based journalists' bylines as they assessed the situation.

MORE SANCTIONS ON THE WAY?

Ukrainian President Volodymyr Zelensky is expected to press Washington for more help in a Zoom call with the full US Senate at 9:30 a.m. ET (1430 GMT) on Saturday.

The United States is weighing cuts to imports of Russian oil and ways to minimise the impact on global supplies and consumers as lawmakers fast-track a bill that would ban Russian energy imports. Global oil prices surged over 20% this week on fears of supply shortages, posing a risk to global economic growth.

At a meeting on Friday, NATO allies rejected Ukraine's appeal for no-fly zones, saying they were increasing support but that stepping in directly could make the situation worse.

"We have a responsibility ... to prevent this war from escalating beyond because that would be even more dangerous, more devastating and would cause even more human suffering," said NATO Secretary-General Jens Stoltenberg.

Zelenskiy slammed the summit as "weak" and "confused." "It was clear that not everyone considers the battle for Europe's freedom to be the number one goal," he said.

More EU sanctions were coming, potentially including a ban on Russian-flagged ships in European ports and blocking imports of steel, timber, aluminium or coal, said Irish Foreign Minister Simon Coveney.

Ukraine's military said in a statement on Saturday that armed forces "are fighting fiercely to liberate Ukrainian cities from Russian occupiers," counterattacking in some areas and disrupting communications.

"Units of the invaders are demoralized, soldiers and officers of the occupying army continue to surrender, flee, leaving weapons and equipment on Ukrainian soil," it said, adding that at least 39 Russian plans and 40 helicopters had been destroyed. Reuters has not been able to independently verify such accounts.

Thousands of people waited for hours on Friday outside the railway station at the western city of Lviv to board trains heading to Poland. Families arrived with few belongings. Some were in wheelchairs, accompanied by pet dogs and cats, uncertain about their fate.

"All we took with us is the bare necessities," said Yana Tebyakina. "A change of clothes. That's it. All the rest we left behind, all our lives stayed back at home." Russian forces have made their biggest advances in the south, where they captured their first sizeable Ukrainian city, Kherson, this week. Bombing has worsened in recent days in the northeast cities of Kharkiv and Chernihiv.



NMC allows foreign medical graduates to complete internship in India

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IMA has recommended that all evacuated medical students who are Indian citizens to be "adjusted as a one time measure in existing medical schools" in India for the remainder of their MBBS course.

Medical college

Amid concerns over the fate of foreign medical graduates (FMGs), who have returned to India from Ukraine, the National Medical Commission (NMC) on Friday allowed them to complete their internship or practical training in Indian medical colleges.


Allowing FMGs to pursue their internship in India, NMC stated that those foreign medical graduates who did not fall under NMC's Foreign Medical Graduate Licentiate Regulations were governed by provisions under the erstwhile Indian Medical Council Act 1956. The provisions of sub-section (3) of section 13 of IMC Act required such FMGs to complete internship in India if they have not undergone any practical training in the foreign country where they were studying.

However, NMC has now acknowledged the impact of Russian invasion on Ukraine on FMGs' future especially in terms of incomplete internship or practical training in medicine.

"It has further been observed that there are also some FMGs with incomplete internships due to such compelling situations which are beyond their control such as the Covid-19 pandemic and war. Considering the agony and stress faced by these FMGs, their application to complete the remaining part of

internship in India is considered eligible," the NMC circular read.

The commission acknowledged that FMGs were facing hardship in getting themselves registered in some of the state medical councils after publication of Foreign Medical Graduates Licentiate Regulations 2021 and Compulsory Rotatory Medical Internship Regulations 2021 by NMC.

The Friday circular maintained that the provisions were now not applicable for FMGs who had acquired a foreign medical degree or primary qualification before November 18, 2021, candidates who had joined undergraduate medical in foreign colleges before November 18, 2021 as well as those specifically exempted by the union government.

NMC has now asked state medical councils to process completion of internship of these candidates provided they have cleared the foreign medical graduate examination (FMGE). NMC has also directed the state councils to ensure that no fee was charged by from the FMGs for permitting them to do their internship even as the stipend and other facilities to these candidates were to be equivalent to Indian counterparts being trained at government 

NMC also issued guidelines for state medical councils for allowing FMGs to undergo internship such as ensuring that the latter's medical qualification or degree was registerable to practice in their respective foreign country in which the degree was awarded. Other guidelines to the state medical councils included restricting the duration of internship to either 12 months or balance period while restricting the maximum quota for allocation of internship to FMGs to additional 7.5 per cent of total permitted seats in a medical college.

Meanwhile, in its representation to Prime Minister Narendra Modi on behalf of FMGs who returned to India from Ukraine, the Indian Medical Association (IMA) has recommended that all evacuated medical students who are Indian citizens to be "adjusted as a one time measure in existing medical schools" in India for the remainder of their course.

IMA has recommended that such onetime adjustment may not be taken as an increase in annual intake capacity among these Indian medical colleges.

LIC IPO set to be delayed to next fiscal year amid market swings: Report

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LIC's underwriters have seen muted interest during early meetings with potential anchor investors, says Bloomberg.

Life Insurance Corporation

The mega initial public offering of Life Insurance Corporation of India is set to be delayed into the next financial year amid market swings triggered by Russia’s invasion of Ukraine, people with knowledge of the matter said.

Bankers and officials are preparing to shift the listing of the state-run insurer to after the current fiscal year, which ends in March, the people said, asking not to be identified because the matter isn’t public. A formal announcement could be expected this week or next, they added, with one person saying the sale may happen as soon as April if market volatility eases.

LIC’s underwriters have seen muted interest during early meetings with potential anchor investors, according to the people. Many fund managers have been wary of making major commitments amid the market volatility, the people said.

A finance ministry spokesman didn’t immediately respond to a call on his mobile phone. LIC declined to comment.

LIC’s IPO will be the biggest to be impacted by the war, which has wiped out 6% of BP Plc’s market value and over $3 trillion of global market capitalization since tensions started rising from Feb. 18. Indian Prime Minister Narendra Modi had sought to raise as much as 654 billion rupees ($8.7 billion) from the deal, Bloomberg reported earlier, cash that is crucial to plug a gap in the budget deficit for the year through March 31.

India Finance Minister Nirmala Sitharaman said this week she “wouldn’t mind” taking another look at the timing of the LIC offering, though ideally she’d like to go ahead with it. Even if it doesn’t pursue the share sale on the original timeline, the government is still hoping to complete the IPO in the next few months, the people said.

The deferment will be another setback for India, which has massively scaled down its asset sale target after the delay in privatization of other state-run companies, including Bharat Petroleum Corp Ltd. Modi’s administration had hoped to shrink the shortfall to 6.9% of gross domestic product, with the accounting for some 3% of revenue.

The government had also penciled in a record market borrowing for the financial year starting April 1.

India had offered to sell a 5% stake, or about 316 million shares in the insurer in what was seen as India’s Aramco moment. Just like the Gulf oil giant’s $29.4 billion listing, the world’s largest, LIC’s debut would test the depth of the nation’s capital markets and global appetite for the state-owned entity.

Also Read| Need for effective communication strategy to manage expectations: RBI Governor Shaktikanta Das

Need for effective communication strategy to manage expectations: RBI Governor Shaktikanta Das

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The conduct of monetary policy has undergone notable changes in India and across the world as economies and markets evolved and policymakers gained greater insights into how economic agents interact in a complex economic system, he said while delivering a lecture at the National Defence College

Need for effective communication strategy to manage expectations: RBI Guv |  Business Standard News

Reserve Bank Governor Shaktikanta Das on Friday underlined the need for an effective communication strategy at the central banks, stressing that "monetary policy is an art of managing expectations”.

The conduct of monetary policy has undergone notable changes in India and across the world as economies and markets evolved and policymakers gained greater insights into how economic agents interact in a complex economic system, he said while delivering a lecture at the National Defence College.

"As monetary policy is an art of managing expectations, central banks have to make continual efforts to shape and anchor market expectations, not just through pronouncements and actions but also through a constant refinement of their communication strategies to ensure the desired societal outcomes,” he said.

The communication works both ways while too much communication can confuse the market, too little may keep it guessing about the central bank’s policy intent, he added.

The Reserve Bank of India has actively used communication through a variety of tools the MPC resolutions and minutes, exhaustive post-policy statements together with a statement on developmental and regulatory measures, press conferences, speeches and other publications, especially the biannual Monetary Policy Report (MPR) – to anchor expectations, Das said.

The governor informed that price stability under the statute has been defined numerically by a target of 4 per cent for headline Consumer Price Index (CPI) with a tolerance band of +/- 2 per cent around it.

The flexibility in the FIT (flexible-inflation targeting) regime comes from provisions to accommodate or see-through transitory supply-side shocks to inflation.

Failure to meet the monetary policy objective is defined in terms of average headline CPI inflation remaining lower or higher than the 2 to 6 per cent band for three consecutive quarters, rather than any instance where inflation exceeds/falls below the target.

"This helps monetary policy to avoid undue volatility in rate-setting behaviour that may adversely impact growth,” he said.

"The clearly defined inflation target and the band, the setting up of the MPC, the explicit accountability mechanisms for defining failure in meeting the target, the detailed resolution and the quick release of individual assessments in the minutes have strengthened transparency and credibility of monetary policy formulation in India,” Das said.

Read Also| Europe's largest nuclear power plant in Ukraine on fire after shelling

Services activity improves slightly in February, PMI rises to 51.8 from 51.5 in January

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The rise in the services PMI follows that of the manufacturing index, although the extent of the increase is smaller

Services activity improves slightly in February, PMI rises to 51.8 from 51.5  in January.

India's services activity improved slightly in February, with the sector's Purchasing Managers' Index (PMI) rising to 51.8 from 51.5.

Data released on March 4 by IHS Markit showed the services sector barely shrugged off the malaise caused by the Omicron variant-led third wave of COVID-19, which had dragged services activity to a six-month low in January.

A PMI reading above 50 shows expansion in activity, and one below 50 indicates contraction.

"Growth in the service sector failed to rebound as meaningfully as many would have hoped given that COVID-19 cases receded considerably from January's new wave and restrictions were lifted," noted Pollyanna De Lima, Economics Associate Director at IHS Markit.

"New business and services activity expanded only modestly, and at the second-slowest rates since last July. Looking at the anecdotal evidence supplied by survey participants, inflationary pressures, input shortages and the local elections dampened growth," De Lima added.

While service providers faced higher costs due to a rise in prices of chemicals, energy, food, labour, metals, plastics, and retail-related components, the increase in input cost inflation was lower than January's 10-year high.

Service providers continued to pass on these higher costs to consumers in February, although the output price inflation cooled down to a five-month low.

Even as prices continued to increase, new business increased at a faster - albeit lower than average - rate last month. On the downside, new business from abroad fell at the fastest rate since October 2021. Consequently, services sector employment fell for the third consecutive month in February. Worryingly, the fall in employment last month was the fastest since July 2021.

The marginal increase in the services PMI in February meant the composite index only edged up to 53.5 from 53.0. Data released on March 2 had shown the manufacturing PMI had risen to 54.9 in February from 54.0 in January.

Also Read| Europe's largest nuclear power plant in Ukraine on fire after shelling

Europe's largest nuclear power plant in Ukraine on fire after shelling

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A spokesman for Europe's largest nuclear plant says the facility is on fire after Russia attacked the power station in the southern Ukrainian city of Enerhodar.

Vladimir Putin

Russian forces pressed their attack on a crucial energy-producing Ukrainian city by shelling Europe’s largest nuclear plant early Friday, sparking a fire and raising fears that radiation could leak from the damaged power station.

The assault on the eastern city of Enerhodar and its Zaporizhzhia nuclear plant came as the invasion entered its second week with Russian forces gaining ground in their bid to cut off the country from the sea. Elsewhere, another round of talks between the two sides yielded a tentative agreement to set up safe corridors inside to evacuate citizens and deliver humanitarian aid.

Nuclear plant spokesman Andriy Tuz told Ukrainian television that shells were falling directly on the facility and had set fire to one of its six reactors. That reactor is under renovation and not operating, but there is nuclear fuel inside, he said.

Firefighters cannot get near the flames because they are being shot at, he said, and Ukrainian Foreign Minister Dmytro Kuleba tweeted a plea to the Russians to stop the assault and allow fire teams inside.

ALSO READ: Russia-Ukraine conflict: Another Indian student shot in Kyiv, hospitalised

“We demand that they stop the heavy weapons fire,” Tuz said in a video statement. “There is a real threat of nuclear danger in the biggest atomic energy station in Europe.”

The attack renewed fears that the invasion could result in damage to one of Ukraine's 15 nuclear reactors and trigger another emergency like the 1986 Chernobyl accident, the world’s worst nuclear disaster, which happened about 110 kilometers (65 miles) north of the capital.

The American Nuclear Society condemned the attack but said the latest radiation levels remained within natural background levels.

“The real threat to Ukrainian lives continues to be the violent invasion and bombing of their country,” the group said in a statement from President Steven Nesbit and Executive Director and CEO Craig Piercy.

The plant’s reactor is a different type than the one used at Chernobyl, and there should be little risk if the containment vessel is not damaged and outside power can be restored, said Jon B. Wolfsthal, a former senior director for arms control and nonproliferation at the National Security Council and former special adviser to then-Vice President Joe Biden.

“Everyone needs to take a step back and not jump to conclusions,” Wolfsthal, now a senior adviser at Global Zero, said on Twitter.

The Atomic Energy Agency said it was in contact with authorities in  The agency's director general, Mariano Grossi, urged military forces to refrain from violence near the plant.

The mayor of Enerhodar said earlier that Ukrainian forces were battling Russian troops on the city’s outskirts. Video showed flames and black smoke rising above the city of more than 50,000, with people streaming past wrecked cars, just a day after the U.N. atomic watchdog agency expressed grave concern that the fighting could cause accidental damage to Ukraine’s 15 nuclear reactors.

The Ukrainian state atomic energy company reported that a Russian military column was heading toward the nuclear plant. Loud shots and rocket fire were heard late Thursday.

“Many young men in athletic clothes and armed with Kalashnikovs have come into the city. They are breaking down doors and trying to get into the apartments of local residents,” the statement from Energoatom said.

Later, a live streamed security camera linked from the homepage of the Zaporizhzhia plant showed what appeared to be armored vehicles rolling into the facility’s parking lot and shining spotlights on the building where the camera was mounted.


ALSO READ: Watchdog says Chernobyl staff are exhausted amid Ukraine conflict

There were then what appeared to be bright muzzle flashes from vehicles, followed by nearly simultaneous explosions in the surrounding buildings. Smoke then rose into the frame and drifted away.

While the huge Russian armored column threatening Kyiv appeared bogged down outside the capital, Vladimir Putin's forces have brought their superior firepower to bear over the past few days, launching hundreds of missiles and artillery attacks on cities and other sites around the country and making significant gains in the south.

Ukrainian Prime Minister Denys Shmyhal called on the West to close the skies over the country's as fighting intensified. "It is a question of the security of the whole world!” he said in a statement.

The U.S. and NATO allies have ruled out creating a no-fly zone since the move would pit Russian and Western military forces against each other.

The Russians announced the capture of the southern city of Kherson, a vital Black Sea port of 280,000, and local Ukrainian officials confirmed the takeover of the government headquarters there, making it the first major city to fall since the invasion began a week ago.

Heavy fighting continued on the outskirts of another strategic port, Mariupol, on the Azov Sea. The battles have knocked out the city's electricity, heat and water systems, as well as most phone service, officials said. Food deliveries to the city were also cut.

Associated Press video from the port city shows the assault lighting up the darkening sky above largely deserted streets and medical teams treating civilians, including one inside a clinic who appeared to be a child. Doctors were unable to save the person.

Severing Ukraine's access to the Black and Azov seas would deal a crippling blow to its economy and allow to build a land corridor to Crimea, seized by Moscow in 2014.

ALSO READ: A look at how the West is punishing Russia for its invasion on Ukraine

Overall, the outnumbered, outgunned Ukrainians have put up stiff resistance, staving off the swift victory that appeared to have expected. But a senior U.S. defense official, speaking on condition of anonymity, said Russia’s seizure of Crimea gave it a logistical advantage in that part of the country, with shorter supply lines that smoothed the offensive there.

Ukrainian leaders called on the people to defend their homeland by cutting down trees, erecting barricades in the cities and attacking enemy columns from the rear. In recent days, authorities have issued weapons to civilians and taught them how to make Molotov cocktails.

“Total resistance. ... This is our Ukrainian trump card, and this is what we can do best in the world,” Oleksiy Arestovich, an aide to Ukrainian President Volodymyr Zelenskyy, said in a video message, recalling guerrilla actions in Nazi-occupied during World War II.

The second round of talks between Ukrainian and Russian delegations was held in neighboring Belarus. But the two sides appeared far apart going into the meeting, and Putin warned Ukraine that it must quickly accept the Kremlin's demand for its “demilitarization" and declare itself neutral, renouncing its bid to join NATO.

Putin told French President Emmanuel Macron he was determined to press on with his attack "until the end,” according to Macron's office.

The two sides said that they tentatively agreed to allow cease-fires in areas designated safe corridors, and that they would seek to work out the necessary details quickly. A Zelenskyy adviser also said a third round of talks will be held early next week.

Despite a profusion of evidence of civilian casualties and destruction of property by the Russian military, Putin decried what he called an “anti-Russian disinformation campaign” and insisted that Moscow uses “only precision weapons to exclusively destroy military infrastructure.”

Putin claimed that the Russian military had already offered safe corridors for civilians to flee, but he asserted without evidence that Ukrainian “neo-Nazis" were preventing people from leaving and were using them as human shields.

He also hailed Russian soldiers as heroes in a video call with members of Russia's Security Council, and ordered additional payments to families of men killed or wounded.

A top Russian officer, Maj. Gen. Andrei Sukhovetsky, commander of an airborne division, was killed in the fighting earlier this week, an officers organization in reported.

The Pentagon set up a direct communication link to Russia's Ministry of Defense earlier this week to avoid the possibility of a miscalculation sparking conflict between Moscow and Washington, according to a U.S. defense official who spoke on condition of anonymity because the link had not been announced.

The fighting has sent more than 1 million people fleeing Ukraine, according to the U.N., which fears those refugee numbers could skyrocket.

The immense Russian column of hundreds of tanks and other vehicles still appeared to be stalled roughly 25 kilometers (16 miles) from Kyiv and had made no real progress in days, amid fuel and food shortages, according to U.S. authorities

Article Source:-  Business Standard.

Russia-Ukraine war disrupts India's commodity exports to the region

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The movement of tea, seafood and coffee, which are among the key items exported from India to Russia, has been impacted by the conflict.

Russia-Ukraine war disrupts India's commodity exports to the region

The Russia-Ukraine feud has plunged Indian commodity exports to the region into disarray, with port disruptions and payment delays hitting shipments.

Russia is a major export destination for various products from India. Indian exports to Russia came to over $2.5 billion out of a total bilateral trade of $8.1 billion in 2020-21. Ukraine is also a growing market for Indian exports, albeit on a smaller scale.

The movement of food products such as tea, seafood and coffee, which are among the important items exported from India to Russia, has been impacted by the conflict between the two European nations.

Exporters are expecting the government to take steps to redeem the situation as there are goods in transit that have been stuck midway. The recent announcement by major shipping lines Maersk and MSC to suspend operations to Russia may force exporters to stop sending consignments to the country till the tussle is resolved.

Russia is the largest importer of Indian tea, accounting for 17-18 percent of the total volume of the beverage exported from the country. "The rouble has fallen to 100-110 a dollar from 74-75. Russians may not want to buy at this rate,’’ said Anshuman Kanoria, Chairman of the Indian Tea Exporters Association.

He also expressed concern over the revision of policy by the Export Credit Guarantee Corporation putting Russia under the restricted cover category. "The export to Russia will depend on the length of the war, sanctions from the West and the Indian government’s stand on the issue.’’

The conflict has broken out at a time when tea exports are yet to recover from the blow dealt by Covid-19. Indian tea exports have fallen below 200 million kgs after a long time. Tea exports in 2021 stood at 195.50 million kgs, per Tea Board data, about 7 percent below the low of 209.72 million kgs in 2020. In the pre-Covid years, exports hovered around the 250 million kg mark.

Seafood stuck

As for seafood, exporters are in danger of losing a market that was developed over the last few years. The industry expects exports to be worth $180 million in FY22 against $150 million in the previous year. But according to industry sources, the situation does not look promising, with around Rs 500 crore worth of seafood stuck in transit.

"Russia buys a lot of shrimp as well as cephalopods such as squid, cuttlefish and octopus from India. A lot of consignments are in transit. Access to St Petersburg, the main port in Russia, seems to be blocked. We are not sure whether the Black Sea ports are open,’’ said Anwar Hashim, MD of Abad Fisheries.

In recent years the Indian seafood sector has penetrated the market in Russia as well in neighbouring countries such as Ukraine, Belarus, Kazakhstan and Moldova, through the efforts of the Marine Products Export Development Authority and exporters. Ukraine currently imports $10 million worth of seafood from India.

Shipping woes

Shippers, too, are anticipating payment problems. "The move by the western nations to block Russian banks’ access to the Swift international payment system may cause payment delays. Earlier the trade was in roubles but now it is entirely in dollars,’’ Hashim said.

Russia is the fourth-largest buyer of coffee from India after Italy, Germany and Belgium. In 2021, the country bought 11,241 tonnes, about 5 percent of the total coffee exports from the country. Ukraine is the tenth biggest buyer of Indian coffee.

Russia’s purchases from India are mostly confined to instant coffee. It used to buy raw coffee from India earlier but has now shifted to other cheaper origins. "Russia accounts for 20 percent of our total exports,’’ said Challa Shrishant, MD of CCL Products, the biggest exporter of instant coffee from India. "We are assessing the impact of the war as some of our consignments are on the way. We also need clarity as to where we should transport the consignment, for which we have received payment."

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Reliance, USA's Sanmina announce partnership for electronics manufacturing

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Reliance will hold a 50.1 per cent stake in the JV after the investment in Sanmina's existing Indian entity through a Reliance unit.

Reliance

India’s Reliance Industries said on Thursday it would invest Rs 1670 cr to create a joint venture (JV) with U.S.-listed Corp for making electronic products in Chennai.

The JV aims to make hardware for 5G communications, cloud infrastructure, healthcare systems, and defense and aerospace, Reliance said in a regulatory filing.

Reliance will hold a 50.1 per cent stake in the JV after the investment in Sanmina's existing Indian entity through a Reliance unit. will contribute its existing contract manufacturing business to the JV.

All manufacturing will initially take place at Sanmina's campus in Chennai, with an option for expansion in other manufacturing sites within the country.

The day-to-day business will continue to be managed by Sanmina’s existing management team in Chennai, said a statement from the two sides. The JV will create an electronic manufacturing hub, prioritising high technology infrastructure hardware

“We are excited to partner with Reliance to build the premier integrated manufacturing solutions company in India,” stated Jure Sola, Chairman and Chief Executive Officer of 

“We are delighted to work with Sanmina to access the significant market opportunity for high-tech manufacturing in India,” said Akash Ambani, Director, Reliance Jio, said.

Sanmina's campus in Chennai is spread over 100 acres and hosts a "centre of excellence" for electronics manufacturing, research and prototyping.

Completion of the transaction is subject to customary closing conditions, including regulatory approvals. The transaction is expected to close no later than September 2022.

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