Nvidia CEO Heaps Praise on Chinese AI in Beijing Vantage with Palki Sharma
Nvidia CEO Heaps Praise on Chinese AI in Beijing | Vantage with Palki Sharma | N18G
Nvidia CEO Jensen Huang hailed Chinese AI platforms and technology in a visit to Beijing. Huang also announced his decision to begin selling Nvidia's H20 chips to Beijing. Does this mark the end of the US-China chip war? Palki Sharma tells you.
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Mint
11 minutes ago
- Mint
JLR margin math wobbles on twin hit from China tax, EU-US trade deal move
New Delhi: Jaguar Land Rover (JLR) is staring at a fresh wave of geopolitical and policy-driven turbulence, with China slapping a 10% tax on most luxury cars and the European Union (EU) proposing tariff relief only for automakers that manufacture in the US. For the Tata Motors-owned brand, which does not have a manufacturing base in the US, these twin developments could complicate recovery efforts and further squeeze profit margins. Starting July 20, China imposed 10% luxury consumption tax on cars priced over 900,000 renminbi. This covers most of the models sold in the Chinese luxury car market. Earlier, only cars priced above 1.3 million renminbi attracted the levy from the Chinese government. The timing of the twin hits could hardly be worse. Just a month ago, Jaguar Land Rover trimmed its growth forecast for the current fiscal year. Now, analysts are warning that these latest trade and policy shifts risk derailing the company's already modest FY26 guidance of 5-7% earnings before interest and tax (EBIT) margin. JLR had banked on reduced tariffs on exports from its Slovakia plant to the US, but that scenario may now be overtaken by events. The EU, which is finalizing a trade deal with the US for lower tariffs, has proposed that auto firms that have manufacturing in that country and export from there should be given some relaxation from 25% tariffs on imports. 'The two combined geopolitical headwinds pose a downward risk to the company's FY2026 guidance of 5-7% EBIT margin, which had only factored in lower tariffs on its exports from Slovakia to the US after the EU-US trade deal," analysts at Kotak Institutional Equities wrote in a 21 July note. Agreeing with a possible near-term pressure on JLR, analysts at Ashika Institutional Equities said in a note on 23 July that the UK-headquartered firm could face challenges on the two fronts, given the latest developments. 'Both developments present strategic challenges for JLR. In China, pricing pressure from new taxes could impact high-end model sales, while in the West, the absence of US manufacturing limits JLR's ability to benefit from policy support, thereby increasing its relative vulnerability in key export markets," the Kotak note said. JLR rivals' BMW and Mercedes stand to benefit the most if EU's proposal is accepted by US as they have plants in the country, from where they export elsewhere. JLR has manufacturing plants in the UK and Slovakia in Europe. In India, it has an assembly plant in Pune, where it assembles several models like Range Rover, Range Rover Sport, Velar, Discovery and Evoque. In FY25, JLR sold 10% fewer vehicles than the previous year in China at 47,200, while Europe saw an 11% decline at 71,700 units. Its biggest market, North America, recorded a 22% jump in sales to 129,000 cars during the year. However, JLR has faced headwinds in the international market since March, when US President Donald Trump announced a blanket 25% tariff on all automobile imports. During April-June, the first quarter of this FY, the maker of Range Rover SUVs sold 87,286 units, 11% fewer than a year ago due to a pause in shipments to the US in April to assess the tariff impact. JLR, which was acquired by Tata Motors in 2008 for $2.3 billion, contributed about 71% to Tata Motors overall revenue in the last fiscal. Analysts have earlier expressed concern that the near-term outlook for the company is weak. 'In JLR, discontinuance of 'Jaguar' ICE models, loss of market share in the China region and imposition of tariffs in the US shall lead to volume contraction ahead," Nuvama Institutional Equities had said in a note on 16 June. The company has acknowledged that its free cash flow will reduce to nearly nil in the current financial year. With the company looking to tackle the negative effects of various headwinds world over, it expects to end the current fiscal year with nil free cash flows. However, the management had earlier said the impact could have been even worse and the measures being implemented to offset the hit are leading to savings. 'The tariff impact will be primarily on Jaguar Land Rover. Tariff has gone up from 2.5% to 27.5%, and under the UK-US FTA, the tariff is 10%. The overall impact would have been 1.6 billion pounds," Tata Group Chairperson N. Chandrasekaran told shareholders at Tata Motors' annual general meeting on 20 June. 'But due to the steps taken by JLR, the impact has gone down to 600 million pounds, which is visible in the margin guidance," he added. At Tata Motors' annual investor day event also in June, the company said JLR will undertake several measures to drive savings, including manufacturing cost reduction, lowering vehicle warranty costs, and improving cost efficiencies in the overall value chain. The measures will collectively lead to savings worth 1.4 billion pounds per annum till financial year 2028, the company said. Jaguar Land Rover declined to comment when asked about the likely impact of the proposed EU-US trade deal and the Chinese luxury tax. The impact of the headwinds reflects in the company's share price. In 2025, Tata Motors' share price is down 8%, even as Nifty Auto has risen by 4%.
The Hindu
11 minutes ago
- The Hindu
Phone assembly domestic value addition is 23%, new report claims
A new study by the Thiruvananthapuram-based Centre for Development Studies (CDS) asserts that the gains from India's mobile phone manufacturing are greater than skeptical analyses have previously assessed. Domestic value addition has already reached 23%, the report claims, compared to single digit estimates elsewhere. Specifically, the report does not agree with the notion that phone assembly is an area of 'trade surplus,' a point contended notably by RBI governor Raghuram Rajan, who said in a brief paper with a colleague, Rohit Lamba, that since India was still importing nearly all components that were being assembled in mobile phone manufacturing, the result was India remaining a net importer in effect. Mobile phone manufacturing — encouraged through Union government schemes like the Production Linked Incentive scheme — has been a much touted success story for Indian domestic electronics manufacturing, fueling hopes of similarly promising results elsewhere. ₹4.1 lakh crore of finished mobile phones were manufactured in India in 2024 according to an industry estimate. The number isn't necessarily indicative of phone assembly as a part of the economy as assembly is usually estimated to only account for 4% of a phone's selling price. The case against India running a phone trade surplus rests on a 'misleading assumption' that imports of the components that go into such assemblies are exclusively going into phones, and then getting shipped back out of the country, C. Veeramani, CDS's director said. 'We used data from the Annual Survey of Industries, and that shows that the actual use of imported components in the mobile phone sector is less than 25%.' Dr. Veeramani reported his findings to the press at an event by the India Cellular and Electronics Association (ICEA), a trade body representing electronics manufacturers; the CDS director's estimates of domestic value addition were even higher, he said, than the ICEA's: 'The Total DVA (direct + indirect) increased to 23%, amounting to more than $10 billion in 2022-23,' the report says. China factor A key recommendation in the report is to focus on scaling assembly operations in the medium term, rather than pressing firms immediately to procure components from local sources. 'We cannot have a robust [electronics manufacturing] strategy keeping China out, that will not work,' Dr. Veeramani said. 'China has to be part of the game and a mindset change is needed there.' If Chinese firms were invested in India, Dr. Veeramani said, they would have no incentive to block movement of capital goods and Chinese nationals to India, something that some phone and semiconductor makers are facing in recent months.
Mint
11 minutes ago
- Mint
Best mid-cap stocks to buy today, 24 July, recommended by NeoTrader's Raja Venkatraman
All eyes will be on reaction to the Q1 earnings from Infosys, Dr. Reddy's Labs and Tata Consumer Products, with stock-specific swings set to steal the spotlight. Traders will juggle momentum-driven gains and selective profit-taking as they position ahead of key macro data later this week. Here are three stocks to buy or sell as recommended by Raja Venkatraman of NeoTrader for Thursday, 24 July: Southern Petrochemicals Industries Corp. Ltd: Buy CMP and dips to ₹85 | Stop ₹82 | Target ₹98-102 Olectra Greentech Ltd: Buy CMP and dips to ₹1,280 | Stop ₹1,265 | Target ₹1,450-1,480 Mahindra Holidays and Resorts India Ltd: Buy CMP and dips to ₹352 | Stop ₹345 | Target ₹400-420 Market update Wednesday saw robust gains on India's equity markets, fuelled by positive cues from Asia after a landmark US-Japan trade agreement. By 1:23pm IST, the BSE Sensex climbed 321 points to 82,508, while the NSE Nifty added 95 points, reaching 25,156. Japanese equities led regional advances, and the MSCI Asia-Pacific Index (ex-Japan) rose 0.7%. US treasury secretary Scott Bessent's announcement that American and Chinese officials will meet in Stockholm next week to discuss extending the 12 August trade-talk deadline further lifted sentiment. The prospect of easing global trade frictions has mitigated macroeconomic uncertainty, supporting risk appetite. Despite these gains, expectations for an interim India-US trade deal remain subdued, as tariff disputes on key agricultural products persist. Domestically, attention is turning to first-quarter corporate earnings, with Infosys, Dr. Reddy's Laboratories, and Tata Consumer Products poised to deliver results that could drive stock-specific volatility through the remainder of the week. Outlook for trading Volatility was the key feature of the market throughout this week, and the market was whipped around quite a bit as global trends were the main drivers of the sentiment. There really wasn't much by way of local news flow to contain the volatility induced. The moves were also reasonably large, creating sufficient moves to bring people in—only to get knocked out the following day! Trading, therefore, was quite difficult through the week, and it would have been a wonder if one came out largely unscathed in the week. The rally after a strong decline in the middle of the week does restore some confidence, but the swift recovery from lower levels is signalling that the highs will once again be challenged. The attempts continue to emerge as the market tries to carve out a bullish possibility. As we head into the last trading day of the week, we could experience some profit booking as we are not nearing an important inflexion zone. However, the trends are still circumspect, and we are witnessing limited market participation. The Nifty now seeks to contest the resistance around the 25,300 mark, while the Nifty Bank aims to clear 57,500 to clear the air of uncertainty. Volatility is now part of the ever-changing market scenario as the sentiment keeps changing. Risk management is critical, as the lack of clarity is greater than ever. The Nifty is showing a resolve now to move higher as it has once again closed above 25,200, which acts as a big hurdle and is also the Max Pain point. An interesting point to note is that the bullish revival is seen as the PCR has stepped above 1. With the Open Interest data clearly indicating a revival, one should keep tracking a 30-minute range breakout on Thursday, as it continues to be an important metric for creating some longs. As indices are not showing much decline, one should look to encash some stock-specific action. Three stocks to trade, recommended by NeoTrader's Raja Venkatraman: SPIC (Cmp 88.36) Why it's recommended: India's fertilizer companies are performing well. The company has shown good profit growth of 19.24% over the past three years and 47.5% CAGR over the last five years. This counter has simultaneously been showing some improvement after the strong decline into cloud support and generated a buy opportunity yesterday. After a push above the clouds, we can see that the stock is set for a turnaround. Go long. Key metrics: P/E: 13.78 | 52-week high: ₹96.50 | Volume: 1.64M. Technical analysis: Support at ₹80, resistance at ₹110. Risk factors: Delays in government subsidy receipts and market collections. Disruptions to interactions with farmers. Buy at: CMP and dips to ₹85. Target price: ₹98-102 in 1 month. Stop loss: ₹82. OLECTRA (Cmp 1327.30) Why it's recommended: OLECTRA has shown a V-shaped recovery, indicating that the trends in this counter look strong for some positive traction ahead. The prices have been moving in oscillation, forming a V-shaped recovery, and the recent move out of the consolidation augurs well for the prices. You can look to go long. Key metrics: P/E: 78.08 | 52-week high: ₹1,786.65 | Volume: 1.75M. Technical analysis: Support at ₹1,170, resistance at ₹1,600. Risk factors: Order cancellations and delays, and debt servicing capacity due to increased borrowings. Buy at: CMP and dips to ₹1280. Target price: ₹1,450-1,480 in 1 month. Stop loss: ₹1,265. MHRIL (Cmp 367.25) Why it's recommended: The counter has been undergoing some consolidation and has formed a rounding pattern after facing intense selling pressure for more than eight weeks. The prices hit a consolidation zone at cloud support, indicating that a positive turnaround is emerging. After the recent test of the TS & KS Bands, with a strong closing on Wednesday post results, we can look at some positive vibes emerging. Key metrics: P/E: 36.96 | 52-week high: ₹494.95 | Volume: 1.32M. Technical analysis: Support at ₹330, resistance at ₹450. Risk factors: Supplier retention and potential customer preferences, regulatory challenges. Buy at: CMP and dips to ₹352. Target price: ₹400-420 in 1 month. Stop loss: ₹345. Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223. Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
