Sebi rejigs panel on alternative investment policy; expands to 25 members

Sebi has reconstituted its alternative investment policy advisory committee, which advises the capital markets regulator on a range of issues that impact further development of the AIF space. The committee has now 25 members, as per latest update with the Securities and Exchange Board of India (Sebi). The panel, which was constituted by Sebi in March 2015, had 20 members when it was last rejigged by the regulator in February 2022. Till now, the committee has submitted three reports on the AIF (Alternative Investment Fund) industry.

The committee is chaired by Infosys co-founder N R Narayana Murthy. Apart from Murthy, the committee includes members from Sebi, Ministry of Finance, AIF players and industry associations. Sebi has replaced Renuka Ramnath, who was chairperson of Indian Private Equity and Venture Capital Association (IVCA), from the list with the association’s new chairman Karthik Reddy.

Besides, Gopal Srinivasan, chairman and managing director of TVS Capital Funds; Gopal Jain, co-founder and managing partner at Gaja Capital; Vipul Roongta, managing director and CEO of HDFC Capital Advisors; Gautam Mehra, Partner at PwC, and Mahavir Lunawat, Director, Association of Investment Bankers of India (AIBI), continue to be the members of the committee.

The panel is mandated to advise Sebi on any hurdles that might hinder the development of the alternative investment industry and any other item relevant to the segment as well as development of the startup ecosystem in India. Also, the committee has been entrusted with the task of advising Sebi on any issues which need to be taken up with other regulators for development of the alternative investment industry.

Going beyond the Middle East: With the US stuck in the conflict, China & Russia will have more room to manoeuvre

By Harsh V Pant

There is an all too familiar stench of death and destruction emanating from the Middle East. It is a full-on war from Israel’s perspective and Hamas’s terrorism has unleashed forces which would be very difficult to control. As the residents of Gaza come to terms with the limits of violence undertaken in their name, with hospitals in Gaza turning into morgues, there are reports of anti-Semitic attacks in the streets of Europe. The barbarism of Hamas is on display with Israelis discovering new evidence each day, and the retribution of Israel is gaining momentum. As Israelis and the Palestinians enter another phase of their violence-ridden relationship, large parts of the world are still not sure how to react. Political calculations are determining on which side to place the blame for the crisis that threatens to upend the regional and global order.

Despite his call that “this is a time that we must stand tall, united against evil”, he is fighting this with his back to the wall. He will be held accountable for the mismanagement of a nation that had been justifiably proud of its ability to function as a strong democracy amidst the dysfunctionality in its vicinity. His reputation for security competence has been seriously damaged with the biggest security failure in the country’s history under his watch amid reports that he was warned by Egypt of an impending attack. Internal divisions, both and political and social, have been growing in the recent months, and Netanyahu’s leadership was fanning the flames instead of trying to find ways out of the morass. The Netanyahu government’s plans to restrict the power of the judiciary were being challenged on a national scale, leading to one of the most serious political divisions in the nation’s history. Hamas took advantage of this turmoil and managed to give Israeli political establishment a jolt that will have long term implications for Israel as a society and its polity.

As Israel is working towards finalising a response, the US has made it clear that it is standing resolutely behind Tel Aviv. Yet, it has also asked Israel to exercise caution as its ground forces prepare for an offensive in the territory, saying it would be “a big mistake” for Israel to occupy Gaza. US president Joe Biden will be in Israel to learn firsthand how the Israeli Defense Force will conduct its operations in a way that “minimises civilian casualties” as the focus shifts to Israel’s next steps with its declaration that the siege of Gaza will not end until around 250 Israeli hostages taken into Gaza during Hamas’s deadly attacks are released. The fate of the hostages will remain a serious constraint on Israeli action in Gaza even as Israel has asked that everyone in north Gaza should relocate to the south.Palestinians are facing the brunt of Israeli airstrikes and the siege of Gaza, but from the Israeli vantage point, decapitating Hamas’s leadership and destroying its military infrastructure have emerged as critical strategic objectives. Marginalisation of the Palestinian Authority and the emergence of Hamas as a more credible alternative for many Palestinians will challenge the possibility of any kind of a peace deal. In any case, Hamas has never been very receptive to the idea of a peace treaty with Israel and has scuppered the Oslo peace process.

It could do this partly because of the backing of Iran. Tehran has worked for years now to build the Palestinian Islamic Jihad and Hamas as critical nodes in its regional strategy. Hamas has been receiving funding, weapons, and training from Iran, emerging as a key proxy of Tehran in its struggle against the Arab states and Israel. Iranian supreme leader Ayatollah Ali Khamenei’s top military adviser has come out in support of the attacks by Hamas against Israel and has underlined that Tehran would continue to back the Islamist fighters “until the liberation of Palestine and Jerusalem.”

Though there are reports from Washington that there is no evidence so far of direct Iranian involvement in the attacks, the impending Saudi-Israel rapprochement would have been a cause of concern for Tehran. The Hamas attacks have seemingly brought Iran together with the Saudis for the time being. The possibility of a wider regional escalation is real as Arab nations will come under increasing pressure from their streets to get involved. Hamas has fundamentally disrupted the extant order in the Middle East and what Israel does in the coming days will determine whether the past certainties in the region can still prevail.

For all the talk of China’s growing clout in the Middle East, this crisis has once again underlined the centrality of the US to the regional order. It is the US’s shuttle diplomacy and hard power that are likely to shape the contours of any kind of possible settlement among the parties involved. But with Washington now entrenched in the resolution of the Middle East crisis, both Russia and China have greater space to manoeuvre. Both Moscow and Beijing lost no time in abandoning Israel despite their once cosy ties with Tel Aviv as they remain intent on challenging the US-led international order.

The consequences of the ongoing Israel-Hamas crisis are not likely to be limited to the Middle East.

The writer is Vice president (studies and foreign policy), Observer Research Foundation

Bank Nifty support near 45,200; Nifty trade sentiment is ‘buy on dips’

By Manojh Vayalar

The July series Nifty futures started with a premium of around 95 points for the current month. For the Nifty futures, FII maintained around 40% short positions, lower than the last month’s series, which is now currently around 30% shorts. The index witnessed a long buildup rally since the start of this series. We believe that a dip in the Index could be an opportunity to enter into longs and hence the Buy on Dips is the trade sentiment in Nifty.

FIIs started this series with Long’s position in Index of around 66% vs 34% index shorts last month which are currently around 30% as of yesterday. For the Nifty, the IVs for OUT-OF-THE-MONEY options stayed at around 12-12.5 levels in yesterday’s trade implying call unwinding at these strikes. For the Bank Nifty 27th July, 45,000 strike call option has highest open interest implying resistance around 46,000. Bank Nifty has strong support near 45,200 levels. For the Nifty, the VWAP (Volume weighted average price) of Nifty July Futures is around 19,500 implying that to be the support. Above this, Nifty is to be positively biased for the short term towards 20,000.

With FIIs having lower short positions in the Index, currently lesser than the last month, we expect Nifty could face some resistance only at the higher levels of 20,000 positionally. The ratio between Bank Nifty and Nifty is currently at 2.31, this ratio has a support at 2.28 and resistance near 2.37. We expect Bank Nifty to outperform. Sector-wise, Banks, IT, FMCG and Automobile look positive in Nifty.

Nifty Bull Call Spread:

Buy 27th July 19,800 CE@ 120;

Sell 27th July 20,000 CE @ 50;

Spread @ 70;

Stoploss @ 20;

Target @ 150.

(Manojh Vayalar, VP-Derivatives, Religare Broking Ltd. Views expressed are the author’s own. Please consult your financial advisor before investing.)

Hamas Attack: The Role and Impact of Israel’s Iron Dome Missile Defense System

Since the beginning of the conflict between Hamas and Israel, the Iron Dome missile defense system in Israel has intercepted several rockets and missiles launched from Gaza.Why is this important?

For more than a decade, this multi-billion-dollar system has played a crucial role in protecting Israeli cities and preventing many casualties.In response to the attacks since Oct 7, 2023Israel has launched heavy bombardments on the densely populated Gaza Strip, an area controlled by Hamas and home to 2 million Palestinians. Israel also cut off electricity and blocked the entry of food, fuel, and supplies into Gaza.

According to the information available in the public domain, the Iron Dome operates through a combination of radar to detect incoming threats, batteries that launch interceptor missiles carrying proximity warheads, and communication systems to relay guidance data. These batteries can neutralize threats launched from distances of up to 43 miles, while ignoring projectiles that are headed for unpopulated areas.Israel has strategically placed at least 10 batteries around the country to protect civilians and vital infrastructure. Each battery can defend an area of nearly 60 square miles. It’s important to note that the Iron Dome is just one part of Israel’s missile defense network, as they also have systems for low to mid-range, upper-atmospheric, and exo-atmospheric projectiles.How effective is it?The Iron Dome’s effectiveness has steadily improved since it successfully intercepted its first hostile projectile in April 2011. It has achieved a success rate of around 90 percent, according to Rafael Advanced Defense Systems, an Israeli firm that is behind the development of this dome.

In recent years, it has proven to be highly effective. During the 11-day conflict in May 2021, militant groups in Gaza fired at least 4,000 rockets, resulting in the unfortunate loss of lives. However, the Iron Dome played a crucial role in minimizing casualties on the Israeli side.What is the cost?The total cost of developing, manufacturing, deploying, and maintaining the Iron Dome system is not precisely known, but it is likely several billion dollars. A complete battery is estimated to cost around US$100 million to produce, and each interceptor missile costs roughly US$50,000, according to an analysis by the Center for Strategic and International Studies.In comparison, the launchers and projectiles used by Hamas are likely much less expensive but have the potential to cause widespread damage to civilians and infrastructure.The US has been a significant supporter of Israeli missile defense systems, allocating almost US$10 billion since 1946, with nearly US$3 billion specifically dedicated to the Iron Dome, according to the Congressional Research Service.

In summary, the Iron Dome is a vital component of Israel’s defense strategy, effectively intercepting short-range projectiles and helping protect its population. While it comes at a significant financial cost, its impact on saving lives and reducing damage during conflicts cannot be understated. Other countries have also shown interest in acquiring the Iron Dome for their own defense needs.

Has India ever been presented with this technology?

Yes and no.

Financial Express Online has reported earlier, the initial offering of Israel’s Iron Dome missile technology to India occurred in 2013. During this time, Israel was vying to establish itself as a key player in India’s arms trade, competing against Russia and the United States. Despite its small size, Israel had been discreetly striving to gain a share of India’s defense market while keeping the precise import figures confidential.

Interestingly, in 2021 the Iron Dome technology was employed to counter a significant rocket attack on Israel.

It is worth noting that back in 2013-14, the Israeli delegation proposed the David’s Sling missile system, not the Iron Dome. The David’s Sling is designed for air defense within a short range of 250 kilometers.

What has Israel delivered to India?

As previously documented, India’s acquisitions from Israel have encompassed anti-ballistic missile systems, radar systems, submarine-launched cruise missiles, micro-satellite systems for surveillance, laser-guided systems, and precision-guided munitions. Additionally, both nations have collaborated on upgrading weapons systems originally supplied by the Soviet Union and Russia, including aircraft, artillery, and tanks.

One notably significant procurement involved the deployment of state-of-the-art Israeli advanced sensor systems along India’s 2,912-mile border with Pakistan. According to officials, this system has effectively reduced infiltration levels from that region.

Petrol and Diesel Rate Today, 1 September: Some cities see revision; Check rates in Delhi, Mumbai, other cities

Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Hyderabad: Petrol and diesel prices were largely constant on Friday, 1 September across New Delhi, Kolkata, Mumbai, and Chennai. Petrol rates and diesel rates have been steady over the last few months. However, individual cities see fluctuations in their prices every day. The prices of petrol and diesel change state by state, depending upon various criteria such as Value Added Tax (VAT), freight charges, local taxes, etc.

The last country-wide change in fuel rates was on 21 May last year, when Finance Minister Nirmala Sitharaman slashed excise duty on petrol by Rs 8 per litre and Rs 6 per litre on diesel. Since the cut of excise duty by the central government in May 2022, some states have also reduced VAT prices on fuels, while some have imposed cess on petrol and diesel.

Currently in Delhi, the price of petrol stands at Rs 96.72 per liter, while diesel is being sold at Rs 89.62 per litre. In Mumbai, petrol demands a higher price of Rs 106.31 per liter, with diesel following suit at Rs 94.27 per litre. Meanwhile, in Kolkata, the cost of petrol amounts to Rs 106.31 per liter, with diesel priced at Rs 92.76 per liter. In Chennai, petrol is available at Rs 102.63 per liter, while diesel can be obtained at Rs 94.24 per liter. Here’s a look at fuel prices in other cities:

Petrol, diesel prices in Chennai, Kolkata, Bengaluru, Lucknow, Noida, Gurugram

Bengaluru:Petrol rate: Rs 101.94 per litre,Diesel rate: Rs 87.89 per litreChandigarh:Petrol rate: Rs 98.65 per litre, Diesel rate: Rs 88.95 per litreChennai:Petrol rate: Rs 102.63 per litre, Diesel rate: Rs 94.24 per litreGurugram:Petrol rate: Rs 97.04 per litre, Diesel rate: Rs 89.91 per litreKolkata:Petrol rate: Rs 106.03 per litre, Diesel rate: Rs 92.76 per litreLucknow:Petrol rate: Rs 96.57 per litre, Diesel rate: Rs 89.76 per litreMumbai:Petrol rate: Rs 106.31 per litre, Diesel rate: Rs 94.27 per litreNew Delhi:Petrol rate: Rs 96.72 per litre, Diesel rate: Rs 89.62 per litreNoida:Petrol rate: Rs 96.65 per litre, Diesel rate: Rs 89.82 per litre

Public sector Oil Marketing Companies (OMCs) including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise their petrol price anddiesel pricedaily in line with international benchmark prices and forex rates. Any changes in petrol price anddiesel priceare implemented from 6 am every day. “Oil companies will be in a position to look at the issue of reducing petrol and diesel prices if the international crude cost remains stable and these firms have a good next quarter,” said Petroleum Minister Hardeep Singh Puri a few months ago.

Share Market Today: Nifty fails to hold above 19400, Sensex ends flat; broader markets outperform

Market Closing Bell: Domestic indices NSE Nifty 50 and BSE Sensex gave up their gains on Tuesday to end flat, continuing the range-bound trend. Nifty concluded just below 19,400, unable to breach the strong resistance level, landing at 19,396.45 with a marginal 0.01% gain. Sensex wrapped up with a slight increase of 4 points, standing at 65,220.03. Nifty Midcap 100 rose over 1.1%, while the smallcap index added around 0.8%. Fear gauge India VIX settled lower, around 11.75. In the broader markets, Bank Nifty settled marginally lower, falling for eight of the nine sessions. Nifty PSU Bank shares dragged the index, while metal, media and FMCG stocks outperformed. Jio Financial Services close 5% lower for the second consecutive session.

Technical Outlook

“Markets traded range bound and ended almost unchanged amid mixed cues.  After the marginal uptick, the Nifty oscillated in a narrow band and finally settled around the day’s low to close at 19,396.45 levels. Meanwhile, a mixed trend on the sectoral front kept the traders busy wherein metal, FMCG and auto attracted buying while Bank Nifty and IT ended subdued. Amid all, buoyancy on the broader front was the key highlight as both midcap and smallcap edged higher and gained nearly a percent each.

IT, pharma face challenges on global dependency

“Despite the support of positive international markets, Indian equities struggled to maintain their upward momentum due to lingering apprehensions over ongoing global uncertainties. Sectors closely tied to the Western economy, such as IT and pharma, faced challenges, while domestic-oriented sectors, alongside mid- and small-caps, exhibited resilience and gained traction,” said Vinod Nair, Head of Research at Geojit Financial Services.

Cyclone Biparjoy: High waves hit Mumbai! Gujarat braces itself as sea turns rough – See Pics

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The extremely severe cyclonic storm ‘Cyclone Biparjoy’ weakened on Tuesday into a very severe cyclonic storm, the India Meteorological Department (IMD) informed. Currently, the cyclone is centered approximately 290 km southwest of Gujarat’s Porbandar and is moving northwards at a speed of five kilometers per hour. According to the weather department, Biparjoy is expected to make landfall in Gujarat’s coastal region as well as adjoining Pakistan coasts on Thursday. NDRF teams have been deployed in Mumbai and Gujarat as the states prepare for impact. Here we bring to you a glimpse of these sea-side areas where people are evacuating as part of safety measures. (PTI Photo)

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A man stands at Bandra beach while the high tidal waves lash the shore as the Biporjoy cyclone intensifies into a severe cyclonic storm, in Mumbai. (PTI Photo/Kunal Patil)

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Children play as high tides crash at the sea front at Colaba, ahead of cyclone Biparjoy’s landfall in Kutch, in Mumbai. (PTI Photo)

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High tides crash at the sea front at Colaba, ahead of cyclone Biparjoy’s landfall in Kutch, in Mumbai. (PTI Photo)

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Satellite image showing the location of Cyclone Biparjoy in the Arabian Sea on Monday. Meanwhile, IMD said that the cyclone may cause extensive damage and Gujarat’s Kutch, Devbhumi Dwarka, Jamnagar districts are likely to be most impacted. (PTI Photo)

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A fisherman colony wears a deserted look ahead of the landfall of Biparjoy cyclone, at Jakhau port in Kutch district. Additionally, the IMD on Tuesday issued an Orange alert for Saurashtra and Kutch coasts in Gujarat as the cyclonic storm Biparjoy is set to cross the Jakhau Port in Gujarat by the evening of June 15 as Very Severe Cyclonic Storm. (PTI Photo)

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Fishing activities along Gujarat’s south and north coasts have been suspended and authorities began evacuating people in districts by the sea in view of cyclone ‘Biparjoy’. (PTI Photo)

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Villagers leave Jakhau village during evacuation ahead of cyclone Biparjoy’s landfall. The Gujarat government has picked up evacuation efforts with the aim to evacuate people within 10 km from the coast in view of the approaching very severe cyclonic storm. (PTI Photo)

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National disaster response force (NDRF) personnel brief citizens ahead of cyclone Biparjoy’s landfall, at Mandvi, in Kutch. A total of 12 teams each of the NDRF and SDRF have been deployed in the districts that are likely to be affected by the cyclone and arrangements have been made for the accommodation, food and medicine of the evacuated people. (PTI Photo)

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Police personnel on patrol while high tidal waves lash the shore as the Biporjoy cyclone intensifies into a severe cyclonic storm. Meanwhile, PM Modi and Amit Shah have attended separate review meetings in order to ensure cyclone preparedness. (PTI Photo)

NCCF procures 2,826 tonnes onion from farmers for buffer stock; to scale up buying in coming days

The National Cooperative Consumers’ Federation of India (NCCF) on Saturday said it has purchased 2,826 tonnes of onion at Rs 2,410 per quintal directly from farmers in the last four days mostly from Maharashtra as it resumed procurement of the bulb for a higher buffer stock.The government enhanced the onion buffer stock target from 3 lakh tonnes to 5 lakh tonnes this year.

Two cooperatives, NCCF and NAFED, have been mandated to procure 1 lakh tonnes each directly from farmers at Rs 2,410 per quintal to avoid panic selling amid the imposition of an export curb to control domestic prices.The two cooperatives are also disposing of the government’s buffer stock of onion in both wholesale and retail markets to control the rising retail prices of onion, which at present are ruling up to Rs 60 per kg depending on the quality in Delhi and other cities.

The 11 states and union territory include Delhi, Andhra Pradesh, Telangana, Odisha, Assam, Kerala, Tamil Nadu, Karnataka, Punjab, and West Bengal, she added.”We are retailing the onion buffer stock both through physical and e-auction mode to bring greater transparency. The first e-auction of onion was done on August 25 in Delhi-NCR and 36 tonnes were sold,” Joseph Chandra said.This will be replicated in two cities of Punjab in the coming days, she said and added that the cooperative is also trying to wholesale onion through NCDFI and Bhim portals.

On the retail front, NCCF said it has already started selling onions in Delhi-NCR and Hyderabad on a limited scale. This will be scaled up in the coming week.”Onions are being sold at a subsidised rate of Rs 25/kg without quantitative restrictions,” she added.On August 19, the government imposed a 40 per cent export duty on onions to restrict outward shipments and boost local availability amid apprehension about the Kharif output.

Closing Bell: Nifty off weekly high, closes below 19300; Sensex closes at 64831; FMCG, Financials under pressure

The benchmark equity indices ended Thursday’s trading session in negative territory. NSE Nifty 50 closed at 19,253.80, while the Sensex closed the trading session at 64,831.41. Bank Nifty shed as many as 243.45 points or 0.55% to settle at 43,989.15. Smallcaps continued to gain, with Nifty Smallcap 250 and Nifty Smallcap 50 adding 1.04% and 0.36%, respectively. Nifty PSU Bank, FMCG, and Financial Services were among the top losers in the sectoral indices, while the gains were led by Nifty Realty and IT.

The top losers included Adani Enterprise, BPCL, Adani Ports, Britannia Industries, and Eicher Motors, while the gainers for the day included JRF, Maruti Suzuki, HDFC Life Insurance, Cipla, and Tata Steel.

“We are seeing a gradual fall in the index amid mixed global cues however buoyancy on the broader front combined with selective buying across sectors is compensating in the interim. Participants should continue with the stock-specific approach until we see a decisive sign of reversal in the index. Besides, keep a close watch on the global front for further cues,” Ajit Mishra added.

Nifty 50 technical view

“The Nifty faced persistent resistance at the 21-day Exponential Moving Average (21EMA), which resulted in a market correction. Two consecutive unsuccessful attempts to surpass the critical 21EMA level led to an increase in selling pressure. The overall sentiment remains pessimistic, with the likelihood of any upward rallies being met with selling activity. On the downside, the initial support level is placed at 19,200. If the index falls below the 19,200 level, it could potentially move towards the 19,000 mark. The sell on rise strategy is expected to favour the traders until the Nifty convincingly surpasses the 19,500 level,” said Rupak De, Senior Technical analyst at LKP Securities.

Bank Nifty to consolidate at 43600–44700

“Bank Nifty has also witnessed follow-through selling pressure and has closed in the negative for the second consecutive day. The daily and the hourly momentum indicators are providing a divergent signal and hence a consolidation is likely. Daily Bollinger bands are also contracting indicating that there could be some consolidation in the near term. The range of consolidation is likely to be 43,600 – 44,700,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Monsoon arrives in Mumbai! IMD issues yellow alert – See Photos

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The India Meteorological Department (IMD) has issued a Yellow alert for Mumbai, predicting heavy rainfall in several parts of Maharashtra for the next 4-5 days. The southwest Monsoon reached the financial capital on Saturday. (PTI Photo)

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In a statement, the weather office said, “The southwest monsoon has further advanced into some more parts of Central Arabian Sea, some more parts of Maharashtra.” (PTI Photo)

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Due to rain, Maharashtra’s capital witnessed waterlogging in several areas. People walk in the rain in Mumbai. (AP Photo)

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The ‘Northern Limit of Monsoon (NLM)’ now passes through Alibag, Solapur, Udgir, Nagpur (in Maharashtra), Mandla, Sonbhadra, Buxar, Siddharthnagar, Pantnagar, Bijnor, Yamunanagar, Una and Dras, IMD said. (PTI Photo)

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A woman enjoys rain near Chhatrapati Shivaji Maharaj Terminus in Mumbai. (PTI Photo)

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Earlier, IMD Mumbai said, “Conditions are favourable for the monsoon to move further towards Raigad, Thane, Mumbai and Palghar. Monsoon is likely to reach Mumbai by June 24.” (PTI Photo)

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Generally, the monsoon officially begins in Mumbai in the second week of June. The Met office had on June 18 provided an update on the onset of monsoon in the country. (PTI Photo)

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The Southwest Monsoon is in the process of resuming its trajectory post-Cyclone Biparjoy, which has been the longest storm in the Arabian Sea. (PTI Photo)