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New Delhi: The upcoming Initial Public Offering (IPO) of <keyword id="20214518" type="General" weightage="20" keywordseo="Hyundai-Motors-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyundai Motors India" meta.hostid="261" meta.entityid="Hyundai Motors India">Hyundai Motors India</keyword> has sparked significant interest in the Indian markets, but a recent report by <keyword id="20303939" type="General" weightage="20" keywordseo="Aequitas-Investments" source="keywords" meta.keywordsubtype="org" meta.entityname="Aequitas Investments" meta.hostid="261" meta.entityid="Aequitas Investments">Aequitas Investments</keyword> suggests it may not be as promising for <keyword id="19953411" type="General" weightage="20" keywordseo="Indian-investors" source="keywords">Indian investors</keyword> as anticipated. The report highlighted several concerns, pointing to broader industry challenges and the valuation mismatch as reasons for caution. It said "Given the headwinds that the Global <keyword id="20081560" type="General" weightage="20" keywordseo="automobile-industry" source="keywords">Automobile Industry</keyword> is facing coupled with signs of a slowdown in India, the upcoming IPO might not be a great deal for Indian Investors" Hyundai Motor Company, the parent firm based in South Korea, is set to offload shares worth Rs 25,000 crore through an Offer for Sale (OFS) in the Indian market. However, the report suggested that the current global headwinds facing the automobile industry, combined with signs of a slowdown in India, may make this IPO less attractive for Indian investors. One of the key issues flagged in the report is the valuation of Hyundai Motors India. The report noted that despite contributing only 6.5 per cent of Hyundai's global revenue and 8 per cent of its overall profitability, the Indian unit is expected to be valued at approximately 42 per cent of the parent company's market capitalization upon listing. This valuation discrepancy raises concerns about whether the IPO price is justified given the Indian unit's relatively modest contribution to Hyundai's global business. "Despite contributing only 6.5 per cent of the global revenues and 8 per cent of the profitability, Hyundai's India unit will be valued at approx. 42 per cent of the Parent Co.'s MCap on listing" the report added. From Hyundai's perspective, the move makes sense. In South Korea, Hyundai's stock currently trades at a price-to-earnings (P/E) ratio of just 5x, making the sale in India potentially more lucrative. The report argues that Hyundai is looking to take advantage of the relatively higher valuations in India. It said "From Hyundai's perspective it's a no-brainer as their stock in S.Korea trades at a measly 5x P/E" Hyundai Motor Group, which includes both Hyundai and Kia, is the third-largest automaker globally, having sold 7.3 million vehicles in 2023. While Hyundai Motors India does not have a stake in Kia Motors India, the parent company owns a controlling 34 per cent stake in Kia Motors globally and fully owns Genesis Motors, a luxury brand in South Korea.

Hyundai IPO might not be a great deal for Indian investors: Report

,<ul class="summary-list"><li>Alibaba shares rose 9% after news emerged founder Jack Ma was ceding control of affiliate fintech firm Ant Group.</li></ul><ul class="summary-list"><li>The gains also come on the back of a broader market rally in Asian shares, thanks to China's reopening.</li></ul><ul class="summary-list"></ul>Shares of Alibaba surged to a six-month high on Monday, joining a broad-based rally in Asia after China reopened its international borders, signaling the country's back in business.Shares of tech giant Alibaba led the gains — leaping 9% to a six-month high, before closing 8.7% higher, after news emerged over the weekend that founder <a href="https://www.businessinsider.com/jack-ma-appears-resurface-thailand-gives-up-control-ant-group-2023-1">Jack Ma was ceding control</a> of Alibaba affiliate Ant Group, following <a href="https://www.businessinsider.com/insider-guide-china-tech-crackdown-from-algorithms-to-crypto-mining-2021-10">China'</a><a href="https://www.businessinsider.com/insider-guide-china-tech-crackdown-from-algorithms-to-crypto-mining-2021-10">s crackdown on tech companies</a> since 2020. The stock had fallen 27% in 2022. Ma, an outspoken teacher turned tech titan, was once a high-profile jet-setter, and the face of China's Big Tech. But he has been lying low since October 2020, after giving a speech criticizing China's financial regulatory system. His words <a href="https://www.reuters.com/article/ant-group-ipo-suspension-regulators/how-billionaire-jack-ma-fell-to-earth-and-took-ants-mega-ipo-with-him-idUSKBN27L2GX" rel=" nofollow">angered the Chinese authorities,</a> prompting intense regulatory scrutiny of his businesses and a wider <a href="https://www.businessinsider.com/insider-guide-china-tech-crackdown-from-algorithms-to-crypto-mining-2021-10" rel="">crackdown on tech firms</a> in the country.The <a href="https://www.ft.com/content/2f7c7a10-2df3-4f1b-8d2a-eea0e0548713" target="_blank" rel="noopener">Financial Times</a> reported in November Ma had been <a href="https://www.businessinsider.com/alibaba-jack-ma-tokyo-japan-china-beijing-tech-crackdown-2022-11">living in Tokyo</a> for six months, and he was spotted last week in <a href="https://www.businessinsider.com/jack-ma-appears-resurface-thailand-gives-up-control-ant-group-2023-1">Bangkok, Thailand.</a>However, on December 29, <a href="http://www.cbirc.gov.cn/branch/chongqing/view/pages/common/ItemDetail.html" target="_blank" rel="noopener">China's Banking and Insurance Regulatory Commission</a> approved Ant to more than double its registered capital in its consumer finance arm to 18.5 billion Chinese yuan ($2.7 billion). This led to an 18% gain in Alibaba's stock price last week, as "the market believes the governmental investment means that the conflict between Jack Ma and the authorities has come to an end," Ming Lu, the China head at Singapore-based Aequitas Research wrote in a note on Monday.Furthermore, a <a href="https://www.caixinglobal.com/2023-01-09/china-wraps-up-two-year-tech-crackdown-top-official-says-101986872.html" target="_blank" rel="noopener">top Chinese central banker's suggested</a> over the weekend that Beijing's tech crackdown is coming to a close, fuelling positive sentiment in the country's tech sector.The Hang Seng Tech Index — an index that tracks the 30 largest tech companies listed in Hong Kong — closed 3.2% higher. Shares of Hong Kong-listed Chinese tech giants Tencent and NetEase closed 3.6% and 2.6% higher respectively.Overall, Asian shares also rallied on Monday. China's reopening boosted market sentiment after the country <a href="https://www.reuters.com/world/china/china-reopens-borders-final-farewell-zero-covid-2023-01-08/" target="_blank" rel="noopener">reopened international borders</a> on Sunday, allowing incoming travelers to enter without quarantine — a major reversal after three years of strict zero-COVID policies.Hong Kong's Hang Seng Index closed 1.9% higher, the Shanghai Composite Index gained 0.6%, and the Shenzhen Composite Index rose 0.7%.Outside China, South Korea's Kospi closed 2.6% higher, while Nikkei futures were up 0.9%. Japanese markets were closed for a public holiday on Monday.<h2>Markets are bouncing back, thanks to China's reopening</h2>There could be further upside ahead, Nomura analysts wrote in a note on Monday."China's reopening momentum has been faster-than-market, and our own, expectations – though it has resulted in a temporary surge in new cases and depressed mobility, we think investors should or will 'look through' and focus on an eventual economic and earnings recovery later in 2023," Nomura analysts in a note on Monday morning.While sentiment is high amid China's economic reopening, some analysts caution the ride may be bumpy as the country battles a <a href="https://www.businessinsider.com/china-covid-likely-million-cases-thousands-deaths-daily-2022-12">massive surge in COVID-19 infections</a>, after reversing pandemic policies abruptly last month."While that is a positive step towards a longer-term growth recovery, the near-term risk of virus waves are put into question, which could be catalysts for jitters over the coming weeks," Yeap Jun Rong, a market strategist at IG, an online trading platform, wrote on Monday.

Alibaba shares hit 6-month high after Jack Ma cedes control of Ant Group, amid a broad rally in Asian shares

<ul><li>FDs are seeing a higher traction now that crypto and the <keyword id="6357440" type="General" weightage="20" keywordseo="stock-market" source="Orion">stock market</keyword> are volatile.</li><li>Bitcoin hit an 18-month-low point last month as the price dipped below $20,000.</li><li>As other investment avenues remain choppy, money is chasing safer options to live <keyword id="6377620" type="General" weightage="20" keywordseo="fixed-deposits" source="Orion">fixed deposits</keyword>.</li></ul>Not very long ago millennials investors were taking a dig at ‘baby boomers’ for keeping fixed deposits (FDs) on a pedestal. After all, crypto and stock investments offered stellar returns. But the tables seem to have turned now that the cryptocurrency has been plunging for quite some time, causing losses to many investors. Bitcoin — the world’s largest cryptocurrency — hit an 18-month-low last month as the price dipped below $20,000. The currency was priced at $22,287.10 on July 18 versus an all-time high of $68,000 it reached in November 2021. <div type="image" title="Fixed deposits back in vogue as crypto, stock market get hit by global headwinds" msid="92983745" hostid="261" sizebytes="369340"></div> Siddhartha Bhaiya, managing director and fund manager of Aequitas Investment Consultancy, also <a href="https://twitter.com/sidd1307/status/1455792585251852289?s=20&amp;t=s8Hgr273cjKrGhrFeUx29w">took a jibe</a> at the current situation, saying “Crypto holders are future fixed deposit holders.” Not sure about cryptocurrency investors, but banks and non-banking financial companies (NBFCs) have started seeing more interest in fixed income products like the FDs. <cmsannotation type="cmsannotation" annotationid="Fixed deposits are getting an edge" comment="subhead" text="Fixed deposits are getting an edge">Fixed deposits are getting an edge</cmsannotation> Rachit Chawla, founder and CEO of Finway Capital, told Business Insider that the FDs are seeing a higher traction now that crypto and the stock market is underperforming. He noted that crypto and equity asset classes are currently on a downward trend after hitting an all-time high only a few months ago, and this has made the investors more skeptical about its future. “They all are hoping and visualizing that there may be further corrections in all the asset classes. Hence, they have split their investments into fixed deposits also. So in case it [market] goes further down they can utilise the same amount of capital [they invested in FDs] and reinvest in equity,” he explained. He also noted that the investors who did not pull out their capital from crypto and equity markets at the right time have already taken a hit and want to avoid any further loss. “Basically when greed is there, people actually jump on. People think that it [markets] will continue to go up… But now people are being a little conservative. Hence, the rise in fixed deposits,” he noted. Chawla also noted that this is not a new phenomenon. “Whenever equities crash, generally there is a rise in fixed deposits because people become a bit conservative,” he added. <cmsannotation type="cmsannotation" annotationid="But it is not a full proof strategy either" comment="subhead" text="But it is not a full proof strategy either">But it is not a full proof strategy either</cmsannotation> Fixed deposits are not wealth maximizing products. Even though Axis Bank, SBI, IDBI Bank, DBS Bank, Citibank and Canara Bank, to name a few, have increased their fixed deposit rates, the customers are still losing money without realising as inflation is growing at a much higher pace. The value of the capital being invested in fixed deposits is also being eroded because of the high inflation rate, Chawla added. <div type="image" title="Fixed deposits back in vogue as crypto, stock market get hit by global headwinds" msid="92983767" hostid="261" sizebytes="117140"></div> “The only time you should move out of equities and start parking funds in FDs is when you are nearing your financial objective or goal. Further, taking out money from equities at this point when many investors are looking to participate more in equities here onwards may not be a prudent strategy," Harshad Chetanwala, investment adviser and co-founder of MyWealthGrowth, said. <cmsannotation type="cmsannotation" annotationid="But crypto is not all well either" comment="subhead" text="But crypto is not all well either">But crypto is not all well either</cmsannotation> Well no one knew that Nirmala Sitharaman would come out with a rug-pulling revelation only a month later that the Reserve Bank of India (RBI) wants the <a href="https://www.businessinsider.in/cryptocurrency/news/rbi-seeks-a-crypto-ban-but-it-needs-global-collaboration-says-nirmala-sitharaman/articleshow/92954958.cms">government to “regulate” and “prohibit” crypto </a>in India. Not that crypto was doing any better before this. A survey by Indian crypto exchange WazirX revealed that four in five traders have slowed down their investments in cryptocurrency since the implementation of a new tax. The company’s survey — involving 9,500 respondents — found that one in five crypto traders are considering shifting their trading activities to international exchanges. After all, all profits from crypto are currently taxed at <a href="https://www.businessinsider.in/budget/news/from-cryptocurrencies-to-nfts-india-to-tax-all-virtual-digital-assets-at-30/articleshow/89268587.cms">a flat 30% rate</a>, which is the highest tax bracket and the same rate as lottery winnings. The government also mandated a 1% tax deducted at source (TDS) on all crypto transaction redemptions, even the ones that make a loss. So, for example, a person who buys a crypto asset at ₹10,000 and sells it at ₹12,000 would show a profit of ₹ 2,000 and pay 30% tax, which is ₹600. In terms of TDS, if you had bought Bitcoin worth ₹10,000 and sold it at the same price without any profit, you would get back only ₹9,900. SEE ALSO <a class="tout-title-link" href="https://www.businessinsider.in/business/corporates/news/tcs-infosys-wipro-salary-in-2022-at-3-lakh-crore/articleshow/92957422.cms">IT biggies spent 62% of revenues on wages in FY22, salary bill at ₹3 lakh crore</a> <a href="https://www.businessinsider.in/business/startups/news/if-musk-goes-to-mars-well-deliver-diesel-there-too-says-this-ratan-tata-backed-startup-founder/articleshow/92973971.cms">If Musk goes to Mars, we’ll deliver diesel there too says this Ratan Tata-backed startup founder</a> <a href="https://www.businessinsider.in/cryptocurrency/news/rbi-seeks-a-crypto-ban-but-it-needs-global-collaboration-says-nirmala-sitharaman/articleshow/92954958.cms">RBI seeks a crypto ban but it needs global collaboration, says Nirmala Sitharaman</a>

Fixed deposits back in vogue as crypto, stock market get hit by global headwinds

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Hyundai IPO might not be a great deal for Indian investors: Report

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Alibaba shares hit 6-month high after Jack Ma cedes control of Ant Group, amid a broad rally in Asian shares

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Fixed deposits back in vogue as crypto, stock market get hit by global headwinds

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