Newspaper Summary 160626

 

Hot global markets, narrow bets: India stands apart

DIVERSE PLAY. India’s relative appeal lies not as much in runaway returns as in the breadth of its market exposure By Dhuraivel Gunasekaran and Kumar Shankar Roy, bl. research bureau

Would investors rather back a diversified market, or saddle up on a one-trick pony with a shiny AI chip on its mane? Strangely enough, many global funds seem to be choosing the pony.

Overseas investors have flocked to markets such as Taiwan and South Korea in 2025-26, riding the boom in artificial intelligence, semi-conductors and related technologies. But a closer look at the composition of some of the world’s best-performing equity markets suggests that investors buying these country indices are often making concentrated bets on a handful of companies rather than gaining exposure to broad-based economic growth.

Data from MSCI country indices show that India stands apart as one of the least concentrated major equity markets globally. While many high-performing markets are dominated by a single stock or sector, India’s benchmark remains relatively diversified across companies and industries.

The analysis is based on MSCI country price return indices, with returns measured in US dollar terms for the one-year period ended June 11, 2026. MSCI’s country-specific indices are designed to capture about 85 per cent of the free-float-adjusted market capitalisation of each market.

SINGLE-STOCK MARKETS

Taiwan offers perhaps the clearest example of market concentration. The MSCI Taiwan Index delivered a strong 93.1 per cent return over the past year. Yet, Taiwan Semiconductor Manufacturing Company (TSMC) alone accounts for 54.8 per cent of the benchmark. The stock itself gained 99.8 per cent during the period, underscoring how closely the market’s performance is tied to a single corporate giant.

South Korea presents an even starker picture. The MSCI Korea Index surged 200.4 per cent over the past year, led by Samsung Electronics, which carries a weight of 33.7 per cent and rallied 356.6 per cent. The top three stocks together account for 66.1 per cent of the benchmark.

The same pattern is visible elsewhere. ASML Holding represents nearly 50 per cent of the MSCI Netherlands Index, while Novo Nordisk accounts for 40 per cent of the MSCI Denmark Index. In Singapore, DBS Group carries a weight of 29 per cent, while Bank Central Asia commands more than 24 per cent of Indonesia’s benchmark.

Such concentration has worked exceptionally well when the dominant company is aligned with a powerful global investment theme. Taiwan’s outperformance has coincided with soaring demand for AI chips, while Korea has benefited from investor enthusiasm for memory semiconductors and electronics. Investors may believe they are diversifying internationally, but in many cases they are effectively backing a small number of corporate champions.

Bloomberg-derived earnings growth estimates for MSCI country indices suggest India may grow slower than peers such as the US, Taiwan, Korea and the Netherlands in FY27, but where such growth is dependent on a handful of stocks or one-two sectors, it can change quickly if fortunes reverse. Foreign portfolio investors, who have already sold Indian equities worth over $30 billion this year, may well take note of this vulnerability.

INDIA’S BROADER MARKET

India offers a markedly different proposition. The largest stock in the MSCI India Index, HDFC Bank, accounts for only 6.4 per cent of the benchmark. The top three stocks together represent just 17.5 per cent, among the lowest concentration levels across major markets. By comparison, the corresponding figure exceeds 60 per cent in Taiwan, South Korea, Denmark and the Netherlands.

This broader base also feeds into India’s relative appeal for overseas investors. Ganeshram Jayaraman, CIO & Head of Avendus Public Equities, noted that India is the only emerging market that offers political, economic and earnings stability. Sector representation is also considerably broader. Financials account for 28.4 per cent of the index, followed by consumer discretionary at 12.1 per cent and industrials at 11.5 per cent. No single sector comes close to the dominance seen in Taiwan, where information technology accounts for 88.8 per cent of the benchmark, or South Korea, where technology represents more than 70 per cent.

This means that investors buying India are gaining exposure to multiple drivers of economic growth rather than a single corporate or sectoral story. India is not free from concentration risk; financials remain the largest sector, accounting for more than a quarter of the benchmark. Yet compared with many of its global peers, India’s market is far less dependent on the fortunes of any single company or theme.

THE TRADE-OFF

Diversification, however, comes with a trade-off. Concentrated markets can generate spectacular returns when their dominant stock or sector is in favour.

But concentration also magnifies risk. Denmark offers a recent reminder: The MSCI Denmark Index fell 24 per cent over the past year as Novo Nordisk, its largest constituent, declined 45.3 per cent. With nearly 40 per cent of the benchmark tied to a single stock, weakness in one company translated into weakness for the entire market.

The higher the concentration, the more a country index behaves like a single-stock portfolio rather than a diversified representation of an economy.

TAKEAWAY

The distinction between country risk and company risk is increasingly blurred in several global markets. Investors buying Taiwan, South Korea or the Netherlands are often expressing a view on TSMC, Samsung Electronics or ASML as much as they are on the underlying economies. Country ETFs and index funds in such markets can therefore be far less diversified than they appear.

As US blocks Anthropic Fable 5, Mythos 5 access to foreign nationals, tech gurus push sovereign AI

INVESTMENT FOCUS By KV Kurmanath, Hyderabad, with inputs from Rohan Das, Chennai

With the US deciding to block foreign nationals from accessing Anthropic’s Fable 5 and Mythos 5, Indian tech thought leaders have flagged concerns about the risks of using AI models developed abroad.

Though there is no direct impact yet, experts have urged Indian organisations and other users to treat this as a wake-up call as they transition to AI-led operations and deploy advanced Large Language Model-based solutions.

The US government on Friday issued an export control order, directing Anthropic to suspend all access to Fable 5 and Mythos 5 by any foreign national, whether inside or outside the country. The list also includes foreign nationals who are working for the company. This has resulted in the abrupt disablement of the two models for the target customers.

While announcing the abrupt suspension of access to Fable 5 and Mythos 5 models, Anthropic has apologised to its customers. “We believe this is a misunderstanding and are working to restore access as soon as possible,” it said.

Though this move has not impacted access to other Claude models, it has triggered a global uproar. Experts said that a possible abrupt suspension of AI services could seriously hurt business operations.

Jaspreet Bindra, Founder of AI and Beyond, said the development was no surprise. “This was always a possibility. We have already seen this move before, a little bit with Microsoft suspending services to Nayara Energy. AI has emerged as a key utility like IT, water and energy,” he said. “This is precisely why we should have our own sovereign AI,” he said.

Zoho Chief Scientist Sridhar Vembu highlighted that globalisation is dead and that technology is the ultimate weapon. He asked Indian companies to adopt smaller open-source models from India and China and focus on cost-effective research and development.

Gundala Nagaraju, an AI governance expert and CEO of Astravion NextGen Catalyst, urged organisations to avoid over-reliance on a single AI provider by implementing diversification and resilience strategies.

Srikanth Velamakanni, Chairman of Nasscom, said that models would continue to improve over the next few months. “Managing this AI progress and making sure that AI is used responsibly requires coordinated global efforts. The arrival of Mythos just heightens the urgency around this need for global collaboration,” he said.

Hemant Mohapatra, Vice-Chairman of LightSpeed India, said that beyond capital, building a foundational AI model that is competitive from scratch can cost anywhere between $250 million and $600 million. “This is not as much about raising $50-60 billion, or raising it all at once. The early bottleneck is more on securing top talent and the GPUs,” he added.

Manic impulsiveness fuels SpaceX IPO frenzy

HIGH DEMAND. ETF issuers that once waited months after an IPO to launch related products are now racing to file almost immediately Bloomberg / REUTERS

Wall Street just spent the week ricocheting between the macro and the mania. Investors digested mixed inflation data, positive developments in the West Asia conflict and sharp moves in oil prices. At the same time, a scramble for SpaceX exposure spilled far beyond the company’s stock sale, as investors sought alternative ways to participate in one of the most anticipated public debuts in years.

The result was a market struggling to settle on a single narrative, with investors lurching between macroeconomic developments and speculative trades. By one measure, the Nasdaq 100 this week posted its largest average intraday swings since April 2025.

SpaceX became the week’s flashpoint. Retail investors submitted more than $100 billion in orders for the offering, overwhelming allocations available through brokerages. But unlike past IPO frenzies, demand did not stop at the traditional order-book. Investors unable to secure shares have been looking for exposure elsewhere, driving big pre-IPO inflows into funds including the $2-billion Baron First Principles ETF, while fueling activity across a growing network of alternative trading venues.

Demand even spilled into crypto-native markets, with investors trading perpetual futures linked to the company on the decentralised platform Hyperliquid. What once would have been a straightforward IPO story increasingly played out across multiple trading venues simultaneously.

“That we are seeing a proliferation in ETFs that tie to crowd-favourite stocks speaks to moment,” said Peter Atwater, President of advisory firm Financial Insyghts. “The crowd is now speculating on its own manic impulsiveness with the most potency it can find”.

More than 20 SpaceX-linked ETFs have already been filed, ranging from leveraged and inverse products to options-based strategies. A leveraged ETF tied to SpaceX surged more than 80 per cent before grinding to a halt Friday due to regulatory concern. ETF issuers are now racing to file almost immediately after an IPO, underscoring the speed with which Wall Street moves to package speculative demand.

“There is room for speculating for sure, but I would rather investors invest,” said Nancy Tengler, CEO at Laffer Tengler Investments, who has a long-term conviction in the company.

The products used to express this demand are themselves becoming a force in the market. Leveraged ETFs create billions of dollars of rebalancing demand for every 1 per cent move in the market, while options positioning contributes billions more. Barclays Plc recently estimated that similar flows reached a record ahead of the selloff earlier this month. Such products do not determine market direction, but they can amplify prevailing trends, turning bursts of enthusiasm — or anxiety — into larger swings.

“It muddies the waters as they try to navigate the mania,” noted a strategist at JonesTrading. Signs of caution emerged alongside the speculative fervor, with Susquehanna pointing to sizeable hedging activity in semiconductor ETFs.

For Aaron Korf, a 55-year-old Florida entrepreneur, the SpaceX offering was impossible to ignore. Korf said he has never invested in an IPO before because he viewed the process as cumbersome, but this time was different. He submitted his request through E-Trade, though the immense demand meant he only received a quarter of his initial order. Korf noted that the appeal extended beyond the market frenzy: “Who cares if it goes up and down? Do you love the company? Do you believe in its future?”.

MARKET SWINGS

The week’s swings reflected how quickly the market’s focus changed. Relatively tame consumer inflation data initially boosted risk assets, but stronger producer-price data a day later raised fresh questions on cost pressures. Meanwhile, comments from President Donald Trump on Iran repeatedly shifted expectations for the conflict and sent oil and equities in opposite directions. By Friday, hopes for a diplomatic breakthrough had helped lift stocks again.

“The upside and the downside can both move faster than investors expect,” said Chris Murphy, co-head of derivatives strategy at Susquehanna International Group. “The on-again, off-again nature of these headlines makes it very difficult for investors to stay positioned for any length of time”.

Tata’s iPhone parts factory contaminated farmland, wells in Hosur, says TNPCB

UNDER THE LENS. The Tata Electronics plant in Hosur, Tamil Nadu, which makes Apple iPhone components Reuters Bengaluru

A pollution regulator has alleged wastewater discharged from a Tata components factory for Apple’s iPhone has contaminated the groundwater for nearby farms and warned of a forced shutdown unless Tata gives a satisfactory explanation.

Tata Electronics is central to Apple’s push to diversify iPhone production beyond China and is the second biggest supplier to Apple in South Asia after Taiwan's Foxconn. The Tata plant under investigation is in Hosur in Tamil Nadu and makes back components for iPhones; complaints from local farmers alleged that wastewater from the factory was contaminating their land and open wells.

FIVE INSPECTIONS

The complaints led to five State inspections between December 2025 and May 2026, according to details from a previously unreported regulatory notice dated May 25 and reviewed by Reuters. Tata countered these allegations by citing a study from an accredited laboratory that determined the company was “in full compliance with all regulatory norms”.

Tata stated it was “committed to responsible business practices and protection of the environment and local communities”, noting it had responded to pollution authorities without providing further details.

The Pollution Board, in its May notice, asked Tata to explain why power to the unit should not be cut and the unit closed for its alleged breach of the rules. Neither Apple, which maintains strict rules on wastewater handling for its suppliers, nor the Tamil Nadu government responded to requests for comment.

According to the warning notice, wastewater overflowed to contaminate “groundwater in the open wells located in the adjacent agricultural lands”. The Board's three-page notice further claimed that Tata had not taken any corrective actions following instructions issued in a previous letter dated December 23, 2025.

Decoding factor-based strategies

By L Ashwin Ramakrishnan

Factor investing offers an increasingly important framework for equity allocation, driven by distinct drivers of returns. Rather than tracking the market passively, factor indices tilt towards characteristics (such as low volatility, momentum, value and quality), each of which behaves differently across market cycles.

The BSE Low Volatility Index, for instance, tracks the 30 least volatile stocks within the BSE LargeMidCap universe, selecting and weighting them based on historical price variability. This results in a portfolio tilted towards relatively stable, cash-generative businesses across sectors such as financials, consumer and healthcare. Current key constituents include Reliance Industries, HDFC Bank, Bharti Airtel, ICICI Bank, SBI and TCS.

Momentum strategies target stocks exhibiting sustained price strength, value focuses on relatively inexpensive stocks based on fundamentals, and quality emphasises profitability and balance sheet strength. Together, these approaches illustrate that equity returns can be accessed through multiple, distinct pathways.

DISPERSION IN OUTCOMES

Over longer timeframes, factor strategies in India have showed meaningful dispersion in outcomes. Despite its defensive construction, the Low Volatility Index has delivered superior returns when compared with headline equity indices over long holding periods.

Momentum and value, though, have been able to achieve significantly better absolute returns. This divergence is a result of the underlying drivers of each factor. Momentum benefits from persistent market trends and tends to perform well in directional markets. Value gains during cyclical recoveries and re-rating phases, while quality and low volatility prioritise volatility and consistency over aggressive outperformance.

THE REAL-WORLD PERFORMANCE

The real-world behavior of factors was evident during the Covid-led crash in 2020. During this period, the Sensex experienced a draw-down of roughly 38 per cent, while low-volatility strategies declined materially less, by around 30 per cent. This was consistent with their lower downside capture (around 0.7). Value strategies were the most impacted, with materially deeper draw-downs of over 60 per cent, before rebounding strongly in the subsequent recovery phase.

The episode highlights how factor behaviour can diverge sharply during stress events, underlining the role of diversification across factors.

RISK-ADJUSTED OUTCOMES

When returns are viewed alongside risk, the trade-offs become clearer. Momentum has combined strong returns with favourable efficiency metrics. The rise of factor-based index funds and ETFs has made it easier for investors to access these strategies.

Products today span individual factors as well as blended approaches that combine multiple styles. Rather than viewing any one factor as universally suitable, a combination of factors can help create more resilient portfolios across market cycles.

An extension of this approach is the rise of multi-factor strategies, which combine two or more factors. The rationale is straightforward: since factor performance tends to rotate across market cycles, blending them can help smooth return outcomes and reduce dependence on any one factor. For instance, the defensive characteristics of low volatility and quality can help cushion draw-downs, while momentum and value can contribute to return enhancement during trending or recovery phases.

While multi-factor strategies may not outperform the best-performing single factor at any point in time, they aim to deliver more consistent performance across varying market environments.

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TAKE NOTE Over longer timeframes, factor strategies in India have showed meaningful dispersion in outcomes.

Recovery signs

INDEX OUTLOOK. A strong follow-through rise from here can turn the outlook positive By Gurumurthy K, bl. research bureau

Nifty 50, Sensex and Nifty Bank index fell initially last week and then made a strong recovery towards the end of the week. Sensex and Nifty were up 1.7 per cent and 1.1 per cent respectively. As mentioned last week, Nifty Bank index outperformed by surging over 4 per cent last week.

The strong rise on Friday has given some relief for the Nifty and Sensex. They now have to get a strong follow-through rise from here and breach the upcoming resistance to strengthen the bullish case. Nifty Bank index on the other hand can continue to outperform in the coming weeks as well.

FPIs SELL

The Foreign Portfolio Investors (FPIs) continue to sell heavily. The equity segment saw a net outflow of $2.08 billion last week. June has seen a net outflow of about $6.59 billion in just two weeks. The FPIs have to come back and start buying in order to push the Indian benchmark indices to new highs.

NIFTY 50 (23,622.90)

Short-term view: The fall to 23,000 and a bounce thereafter has also happened in line with our expectation. Nifty has risen back well from around 23,070.

Immediate resistance is in the 23,700-23,800 region. Support is at 23,350. If Nifty manages to sustain above 23,350 and breaks above 23,800 it will be bullish. Such a break can take it higher to 24,100-24,200 initially and then to 24,500-24,700 eventually in the short term. Nifty has to decline below 23,350 to come under pressure for a fall to 23,000 or 22,850.

Medium-term view: The broader 22,000-26,500 range is intact. If the rise to 24,500-24,700 mentioned above happens now, it will give some relief. It will then increase the chances of seeing 26,500, the upper end of the range, eventually in the medium term.

The broader bias is positive. Nifty can make a bullish breakout above 26,500 and rise to 28,000-30,000 in the long term. It has to decline below 22,000 to negate this bullish view.

NIFTY BANK (56,814.80)

Short-term view: The rise to 56,700 happened as expected last week. Indeed, the index has risen well beyond our expected level. The outlook remains positive.

Support is in the 55,500-55,000 region. Immediate resistance is at 57,000. Nifty Bank index can break this resistance and rise to 58,000-58,500. A fall below 55,000 is needed to drag the index down to 54,000-53,500 and turn the short-term picture negative.

Medium-term view: The broader outlook is bullish. Intermediate resistance is at 60,500. A break above it can take the Nifty Bank index up to 65,000 over the medium term. That will keep the upside open to target 68,000-69,000 in the long term. The region around 50,000 is a strong support. The index has to decline below this support to prove our bullish view wrong.

SENSEX (75,527.95)

Short-term view: The index has managed to sustain above 73,000 and has risen back well. Immediate resistance is at 75,730. A break above it can take the Sensex higher to 76,500-77,000 in the coming weeks. That will also increase the chances of seeing 78,000 on the upside in the short term. Immediate support is at 74,500. Sensex has to decline below this support to fall back to 73,000 again.

Medium-term view: The chances are increasing now for the Sensex to go up within the broad 71,000-86,000 range. A strong break above 80,000, the intermediate resistance, will clear the way for a rise to 86,000. We retain our overall bullish bias. Sensex can break 86,000 eventually and rise to 90,000 and even 94,000 in the long term. This bullish view will go wrong only if the index declines below 71,000.

NIFTY MIDCAP 150 (22,257.90)

The bounce last week from the low 21,698.50 keeps the 21,700-23,000 range intact. Intermediate resistance is around 22,400. A break above it can take the Nifty Midcap 150 index up to 23,000, the upper end of the range. Failure to rise past 23,000 can drag the index down and will keep the sideways range intact for some more time.

There is no major change in the broader view. Crucial resistance is at 23,100. We expect the index to surpass this hurdle eventually. That will trigger a rally in Nifty Midcap 150 index to 26,000-26,500 initially and then to 28,000-28,500 in the long term. The broader picture will turn negative only if the index declines below 20,800.

NIFTY SMALLCAP 250 (17,079.10)

The index has risen back very well last week from the low of 16,602. Immediate resistance is in the 17,100-17,200 region. A decisive break above 17,200 can take the Nifty Smallcap 250 index up to 17,600 initially. A further break above 17,600 will clear the way to test 18,000-18,300, a crucial resistance region.

The broader bias is positive. We expect the index to breach 18,300 eventually. Such a break can take the Nifty Smallcap 250 index higher to 22,500-23,000 and even 24,000 in the long term. If the index fails to breach 17,600 from here, it can fall back to 16,600 again or even to 16,300. The short-term picture will turn negative only if the index declines below 16,000. If that happens, then a fall to 15,000-14,800 is possible. However, such a fall looks less likely at the moment. From a long-term perspective, 14,000 is an important support. The outlook will turn bearish only on a break below this support.

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IMMEDIATE RESISTANCE

• Nifty 50: 23,800
• Sensex: 75,730
• Nifty Bank: 57,000

Bourses bounce back

US MARKET OUTLOOK. All eyes on Kevin Warsh’s first FOMC meeting By Gurumurthy K, bl. research bureau

Dow Jones Industrial Average, S&P 500 and NASDAQ Composite index extended their fall in the first half last week. However, the news that the US and Iran could be nearing peace deal halted the fall and triggered a strong bounce towards the end of the week. If there is an unexpected negative development on the US-Iran deal front, then the equity markets can reverse lower again.

FED WATCH

All eyes will be on the US Federal Reserve meeting outcome this week on Wednesday. This will be the first meeting under the new chairman Kevin Warsh. So, it will be important to see his stance on the future interest rate path. High inflation in the US has already shifted the market expectation for a rate hike later this year.

DOW JONES (51,207.11)

The intra-week fall below the psychological 50,000 level did not sustain. The index has bounced back sharply from the low of 49,914. Supports are at 50,350 and 50,000.

A follow-through rise from here can take the Dow Jones higher to 52,000-52,500 in the next few weeks. We reiterate that the region around 52,500 is a strong resistance which can halt the current rally. There are good chances to get a corrective fall to 50,000-49,000 from around 52,500. So, as the Dow Jones approaches 52,500, it is important to turn cautious rather than becoming more bullish.

S&P 500 (7,431.45)

The S&P 500 index failed in its various attempts to get a strong follow-through selling below the 7,300 level. The index has to get a sustained break below 7,300 for a fall 7,150-7,130. For this fall to happen, the S&P 500 index has to remain below 7,470. We will have to wait and see.

NASDAQ COMPOSITE (25,888.84)

The index has risen back sharply from the low of 24,980.38 recovering all the loss. Support is around 25,650. If the index manages to sustain above this support, a rise to 26,350 or 26,500 is possible this week.

Failure to rise past 26,500 and a subsequent fall below 25,650 will be bearish. It will confirm that a top is in place. In that case, there is a danger of seeing 24,500-24,000 on the downside going forward.

DOLLAR INDEX

As such the price action in the dollar index is mixed. It is struggling to get a sustained rise above 100. At the same time, it is not getting strong sellers also to drag it lower. The short-term trend is up. Important support is around 99.40. As long as the index stays above this support, the uptrend will remain intact. That will keep the chances high for the dollar index to breach 100 decisively and rise to 100.70 and even 101-101.20 in the coming weeks.

This rise will get negated only if the index declines below 99.40. If that happens, a fall to 98.80 can be seen.

TREASURY YIELD

The US 10Yr Treasury Yield (4.48 per cent) witnessed a sharp fall on Thursday following the strong decline in oil price.

The resistance at 4.6 per cent has held well and capped the upside for now. However, good support is around 4.4 per cent. If the yield sustains above this support, it can rise back to test the resistance at 4.6 per cent again.

From a medium-term perspective, a decisive break above 4.6 per cent will be bullish to see a rise to 4.8 per cent. We will have to wait and see if the trigger for this rise is coming from the Fed meeting this week.

India joins select club with ballistic missile defence capability

SUCCESSFUL TESTS. Placing India in an exclusive group of nations capable of intercepting and neutralising long-range threat profiles

By Our Bureau, New Delhi

The Defence Research and Development Organisation (DRDO) has successfully flight-tested multi-layer Ballistic Missile Defence (BMD) capability, placing India in an exclusive group of nations capable of intercepting and neutralising long-range threat profiles up to Intercontinental Ballistic Missiles.

Though the DRDO did not share many details on the trials, sources said the BMD is said to have successfully engaged and destroyed incoming targets in both endo-atmospheric (within Earth’s atmosphere) and exo-atmospheric (outer space) layers. Only a few countries like the US, Russia, and Israel possess such an anti-ballistic missile system.

The architecture relies heavily on next-gen, completely indigenous components, including high-power, long-range tracking radars, ultra-low latency network communication links and advanced “kill vehicles” designed to take down threats at hypersonic speeds. The development of the BMD programme by the DRDO officially began in November 2006, with the successful test-firing of the Prithvi Air Defence (PAD) missile to intercept a modified Prithvi-II ballistic missile.

SUCCESSFUL TESTS

This is part of three crucial technologies tested over two days from June 10 to demonstrate not only multi-layered defence against long-range ballistic missiles but also anti-ship capability at medium range, as per the Ministry of Defence. The maiden flight-test of the Naval Anti-Ship Missile-Medium Range (NASM-MR) was also carried out successfully. It is meant to provide cover to Indian Navy ships, having ranges of 300-350 km and travels at high-subsonic speed with reduced thermal signature.

The NASM-MR is designed to be an all-weather, over-the-horizon, subsonic anti-ship cruise missile meant to engage small- to medium-size surface warships like frigates, corvettes, and destroyers.

The flight-tests were witnessed by senior officials of DRDO and defence forces. Defence Minister Rajnath Singh has congratulated DRDO on successfully demonstrating these crucial technologies. While defence secretary RK Singh, who is handling additional charge of Secretary, Department of Defence R&D and Chairman DRDO, closely monitored the trials and applauded the combined efforts of DRDO and industry.

Will not tolerate violation of US blockade of Hormuz: Rubio

Press Trust of India, Washington

US Secretary of State Marco Rubio has said that any violation of the American blockade and illicit transport of Iranian oil through the Straits of Hormuz will not be tolerated, an official statement said Saturday.

Rubio conveyed this to External Affairs Minister S Jaishankar, who spoke with him on Friday to lodge a strong protest against the death of Indian nationals in US attacks on ships off the coast of Oman.

“The Secretary stressed that all commercial vessels should immediately comply with orders from US forces as they seek to uphold peace and security in the Strait,” State Department spokesman Tommy Pigott said. Rubio underscored that violations of the US blockade and the illicit transport of Iranian oil will not be tolerated, Pigott said in a statement.

Three vessels with Indian crew came under attack off the Oman coast this week. One of them resulted in the death of three Indian seafarers on Wednesday.

“Such lethal actions against commercial shipping are not justified,” Jaishankar said in a post on X after he spoke with Rubio.

Significance of a log chart

SIMPLYPUT By Gurumurthy K, bl. research bureau

Mark came to meet Antony after his one-month official trip.

Mark: Hi Antony, how are you? Antony: Hey Mark, I am good. How are you and how was your trip? Mark: Yeah, the trip was nice. Antony: I have been eagerly waiting for you to come back. Mark: Oh really, you missed me so much at work? Antony: No man, not at work but to continue our discussion. Mark: Discussion? On what? Antony: Before you left for your trip, you explained to me the basics of log chart. Mark: Yes. Antony: You promised to tell me how to use the log chart for analysis and what the advantages are in our next discussion. Mark: Of course, I remember, Antony. If you have time, then we can talk right away. Antony: Sure, we can. Mark: So, let’s go for a coffee and as we walk, brief me on what you recollect from our previous conversation. Antony: Yeah, why not? A log chart captures the percentage movement between two points rather than the absolute values. It explains abnormal price swings and can be used for analysing long-term historical price data. Mark: Perfect. Antony: Now, tell me how can I use the log chart for my analysis? Mark: As I told you earlier, log chart works well on very long historical data, say 30-40 years or even more. So, you have to use at least the monthly price data and should not go below that. Antony: Meaning? Mark: That is, you use daily, weekly charts etc for analysis, right? Antony: Yes. Mark: Always remember that when you are using log chart, it is ideal to have monthly chart as the lowest time frame. You can use quarterly or even yearly data/charts, when your historical data runs to say 50-100 years or so. Antony: I can do analysis on the quarterly, yearly etc in an absolute price chart itself. So, what is unique about using a log chart for long-term analysis? Mark: Log chart can give you support and resistance at crucial junctures, which will not be available in an absolute price chart. Antony: Is it? Mark: Yes. Not all the time, but sometimes. Antony: Can you give me an example? Mark: Why not? Open your laptop and pull out the Sensex chart. Antony: Give me a minute. Mark: Take your time, I will get you a coffee. Antony: Yes please. Mark: Here is your coffee, Antony. Have you got the Sensex chart? Antony: Yeah. Mark: See the quarterly (three-month) candle chart for, say, 1980. Antony: What 1980? But Sensex was launched in 1986. Mark: The official launch was in 1986. But the base is taken as 100 on April 1979. So, the retroactive data since then is available. Antony: Oh ok. I have got the chart from 1980. Mark: Now, take the low of the second quarter (April-June) candle of 1983, connect it with the low of the second quarter of 1988 and draw a trendline. Tell me what you observe. Antony: Yes, this trendline has given support before the rally in 2003 and 2020. Mark: Correct. But it is important to note here that the support that was given in 2020 is during the Covid-19 market crash. Antony: Yes, the trendline touches the first quarter (January-March) low of 2020. Mark: Exactly. So, if you had used a log chart then after seeing the bounce in the second quarter of 2020, you would have been convinced to enter the market rather than sitting with panic. Antony: Absolutely. Mark: So, this is the major advantage of using a log chart. Look at the recent move from 2024 in Sensex on the monthly chart. On the log chart, you will get a trendline support 71,700 by connecting the January and June 2024 lows. See where you get the support on the absolute chart for the same trendline. Antony: Let me draw the trendline and see. Oh, it is coming lower. Mark: Where? Antony: Around 71,100. Mark: You are correct. So, if the market falls more from here, then these two are the levels that one has to keep an eye on. Antony: Yeah, I will watch those levels closely. Mark: Antony, let me finish this conversation on a cautious note. Whatever we have discussed here are just to make you understand the concept of log charts. Do not take it as a specific recommendation. Antony: Not at all. I will now go and study more log charts and compare it with the absolute charts. Mark: Yes. Only then you will understand more on how the chart works and will get a clear idea.