ET NEWS

At least 22 people have been killed following a powerful 6.9-magnitude earthquake in the Philippines, a government official said, marking one of the country's most devastating disasters this year. The earthquake that struck off the coast of Cebu City in the Philippines' central Visayas region just before 10 p.m. (1400 GMT) on Tuesday led to power outages and damaged buildings in the region. Alfie Reynes, vice mayor of the town of San Remigio, confirmed the death toll of 22 in an interview with DZMM radio. Another government official told Reuters by phone that at least 21 people have been reported dead in Cebu province, adding that verification is underway on the reported fatalities. The New York Times earlier reported that at least 37 people have been injured due to the quake, along with the collapse of a few buildings and infrastructure including bridges. Earthquake monitoring agencies had pegged the depth of the quake at around 10 km (6.2 miles) and recorded multiple aftershocks, the strongest having a magnitude of 6. Another monitoring agency said there was no tsunami threat following the quake. Cebu City has a population of nearly 1 million, according to the USGS. Philippine seismology agency Phivolcs warned of aftershocks and damage from the offshore tremor. It also warned that "strong currents and rapid changes of seawater level are expected." "The concerned public is advised to be on alert for unusual waves," it said in an advisory. The warning was canceled three hours later. The Philippines lies in the Pacific "Ring of Fire," where volcanic activity and earthquakes are common. The country had two major earthquakes in January with no casualties reported. In 2023, a 6.7 magnitude offshore earthquake killed eight people.

Mumbai: October may bring some relief for equity investors, with seasonality trends pointing to a higher probability of gains in the month.In the past 10 years, the benchmark Nifty and the broader Nifty 500 have closed higher in seven of the past 10 occasions during the month. Yet, analysts said market action in the coming weeks could be constrained, with indices likely stuck in a narrow range in the absence of fresh catalysts."As we step into October, the Nifty is expected to remain in the 24,300-25,400 range," said Sriram Velayudhan, senior vice president, IIFL Capital Services. "Factors like lack of clarity on tariff resolution, FII selling and a busy primary market pipeline could also keep indices range-bound." This month, large IPOs such as Tata Capital, LG and WeWork are scheduled to hit the market.Data from Motilal Oswal Financial Services showed that the Nifty and Nifty 500 in October have delivered average gains of 0.6% and 0.7%, respectively, over the past decade.In September, the Nifty and Nifty 500 gained 0.8% and 1.2% respectively. 124245537"A recovery from current levels looks likely, given the recent correction, potential GST-led momentum, and festive-driven consumption," said Chandan Taparia, head of technical and derivatives research at Motilal Oswal Financial Services. Taparia noted that immediate support for the Nifty is at 24,400, with potential to move towards 25,250 in the near term.In contrast, US benchmarks have shown mixed seasonality in October. The S&P 500, Dow Jones and Nasdaq 100 have gained in only five of the past ten years, though average returns for all three indices have been positive, between 1.3% and 2%."While US indices witness mixed seasonality in October, such patterns have historically had limited spillover into Indian markets," said Taparia.Velayudhan added that the earnings season will also be closely watched. "In the event of progress on tariff resolution by the end of the month, a recovery rally cannot be ruled out," he said.

Mumbai: Axis Bank is reassessing its plans to sell a stake in its non-banking subsidiary Axis Finance, as it waits for greater clarity on the Reserve Bank of India's upcoming "forms of business" circular.The rethink comes after potential investors, who had shown interest in the transaction, sought regulatory clarity before arriving at valuations."Potential investors have made it clear that they want regulatory clarity before putting a number on the table. Without that, it's difficult for them to firm up valuations," said a person aware of the matter.Axis Bank did not respond to a request for comment.RBI governor Sanjay Malhotra recently signalled that the circular was in the works. "The forms of business circular is also planned to be finalised quickly," Malhotra said on August 25.As reported by ET in its June 27 edition, Axis Bank had committed to the RBI that it would not infuse additional capital into Axis Finance and was working on a plan to raise Rs 3,000 crore. The lender was exploring a strategic sale to private equity investors, with a potential IPO at a later stage."As per its growth plans, Axis Finance will need a couple of thousand crores of capital over the next few years," Amitabh Chaudhry, MD & CEO of Axis Bank, had told ET in an earlier interview. "We are in no position to infuse further capital because that is the commitment we have made to RBI. We have no option but to go to the market and try to raise the capital. We are running a process right now to do that. When we are talking to the potential investors, we have been quite clear that we will do what is best for the entity concerned and we do not want to destroy value in any form or shape."The commitment to the RBI stems from draft guidelines issued last October on forms of business and prudential regulation for investments. These rules have weighed on valuations of bank subsidiaries by restricting them from undertaking core lending activities and discouraging duplication of businesses between banks and their NBFC arms.Products such as gold loans, loans against property and two-wheeler loans are currently offered by both Axis Bank and its finance subsidiary.In July, media reports suggested that global private equity giants including Blackstone, Advent, EQT and Kedaara had expressed interest in acquiring a 20% stake in Axis Finance.The sector, however, has seen valuation headwinds. Recently, HDB Financial Services hit the market at a steep discount-nearly 40% lower than its price in the unlisted market.

Mumbai: The market for unlisted shares, long seen as a sure bet, is facing a reality check. In recent months, marquee names such as Tata Capital and HDB Financial Services have set initial public offering (IPO) price bands significantly below their unlisted market levels, denting investor sentiment and forcing a rethink on how companies are valued in this unregulated space.These instances have dried up the demand for even some of the most popular unlisted companies, while their shares have mostly edged lower in recent times. This marks a sharp reversal from a few months ago, when investors were scooping up these shares on platforms that specialise in gray markets stocks, despite concerns about the market being overheated.124245305Among the popular names in the space are National Stock Exchange (NSE), Groww, SBI Asset Management and Cochin International Airport Ltd (CIAL). NSE-the hot favourite-is down nearly 5% in the past month, with speculation about a regulatory clampdown on weekly equity derivatives contributing to the soured mood. SBI Mutual Fund is down 2% in the past month, while shares of the IPO-bound broking firm Groww are down 12% in the past two days since Tata Capital announced its price band.Tata Capital, the financial services arm of Tata group, announced its price band at ₹310-326 per share. It came at a discount of nearly 56% to the ₹735 levels at which the stock was trading in the unlisted market.Similarly, HDB Financial, another listing from the HDFC Group stable, had earlier taken a similar approach, fixing its IPO band at around 40% lower than its prevailing unlisted price. The IPO price band for HDB Financial Services was fixed at ₹700-740, while the shares were trading at ₹1,225 in the unlisted market. "The lower pricing of IPOs will have a lasting effect on the minds of investors and intermediaries in the unlisted market," said Vaqarjaved Khan, senior analyst, Angel One. "Investors will be less speculative in the unlisted market, and pricing will be more realistic."National Securities Depository (NSDL) announced its IPO price band at ₹760-800, a substantial 22% discount to its last traded price of ₹1,025 in the unlisted market.The contrast between unlisted prices and IPO bands has cast doubt on the sustainability of such premiums. Investors in the unlisted market are clearly disappointed with Tata Capital's IPO pricing, said Ankit Garg, CEO, Wealthy Nivesh PMS."Many had been expecting a price closer to the levels at which its shares have been trading privately, and the announced band comes in significantly below that," he said. "This has left some unlisted shareholders questioning the premium they paid in the past and weighing the impact on their potential returns. This along with the HDB listing has ensured that a lot of hype built in the unlisted market, which was not justified by valuations, is taken care of." Analysts said the divergence could dent the dynamics of pre-IPO investing.