Tamil Nadu Cabinet on Saturday cleared 10 investment proposals in diverse segments, including the nascent electric vehicles (EV) and Global Capability Centres (GCC) sectors, worth Rs 6,000 crore aimed at providing job opportunities to 27,000 people.
Highly placed sources told DH that one of the investments in the EV segment will be made in the Hosur-Dharmapuri-Krishnagiri (HDK) region which has now emerged as the hub for the sector with several major players like Ola, Ather, and TVS Motor Company making it their home.
Of the 10 proposals, two are in the EV sector, three in general manufacturing, two GCCs as part of the research and development (R&D) policy, two in the textile sector, and one in electronics.
“While one EV investment will be in the HDK region, the other one will be near Chennai,” a person aware of the cabinet discussions told DH, refusing to divulge further details, citing “investor sensitivities.”
Of the two investment proposals in the textile sector, one is on the technical textile segment, the source said. “The overall value of the proposals cleared today is Rs 6,000 crores bringing employment to about 27,000 persons,” the source added.
Another source said investments or expansion plans by key Apple supplier Salcomp (electronics), Schneider (general manufacturing), and United Parcel Service (GCC) are some of the projects that were approved by the Cabinet. FMCG major Godrej Consumer Products Limited’s (GCPL) proposal to set up a plant in Chennai with an investment of Rs 300 crore was also cleared, the second source added.
Salcomp, which supplies chargers to Apple phones, has multiple manufacturing units in the Nokia Telecom Special Economic Zone (SEZ) in Sriperumbudur near Chennai.
The investments come months before the state is to hold its third edition of the Global Investors’ Meet (GIM) in January 2024 and three days after a high level delegation from Foxconn Industrial Internet (Fii), the largest subsidiary of Taiwan’s Foxconn Technology Company, met Chief Minister M K Stalin here.
The delegation gave a commitment to make further investments in the state, where Foxconn has a significant presence with its Sriperumbudur facility assembling high-end Apple iPhone 13 and iPhone 14.
The Tamil Nadu government is bullish on the EV sector – it released an exclusive policy in 2019 and upgraded it in 2023 – accounting for over 34 per cent of total planned investments in the sector with not just EV firms but battery manufacturers like BYD, Grinntech, Lucas-TVS, and Li Energy setting up their units in the state.
The state, which is already home to top 16 electronics manufacturers, including Nokia, Samsung, Flex, Dell, Motorola, Salcomp, HP, and Foxconn, wants the electronics industry to be on par with automobiles that accounts to 37.6% of the country’s automobile and auto component exports, apparel (30.8 percent) and footwear (46.4 percent).
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
