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.

Will Nifty top 19400 or fall in trade? See GIFT Nifty, FII data, F&O ban, crude, more before market opens

GIFT Nifty was 0.24% higher during Wednesday’s early trading session at 19,361.5, indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex. 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.

“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.

Asian Markets

Asian shares held tight ranges on Wednesday as investors awaited results from tech darling Nvidia to see if the sector’s lofty valuations can withstand a jump in bond yields, while still gloomy factory readings from Japan left sentiment fragile. MSCI’s broadest index of Asia-Pacific shares outside Japan were up 0.1%, hovering not far away from its nine-month trough hit just two sessions ago. Japan’s Nikkei rose a meagre 0.2%. Chinese shares gave up some gains, with blue-chips off 0.7% following a rebound of 0.8% the previous day, and Hong Kong’s Hang Seng Index easing 0.1% after jumping 1%.

Crude Oil

Oil prices eased in early trade on Wednesday, weighed down by fears U.S. interest rates could stay higher for longer and economic growth could slow further in top crude importer China and hurt fuel demand.

FII/DII Data

Foreign institutional investors (FII) sold shares worth net Rs 495.17 crore, while domestic institutional investors (DII) bought shares worth net Rs 533.75 crore on 22 August, according to the provisional data available on the NSE.

F&O Ban

The National Stock Exchange has PNB, India Cements, Hindustan Copper, GNFC, SAIL, BHEL, Delta Corp, Metropolis Healthcare, ZEEL, Escorts Kubota and Indiabulls Housing Finance securities on its F&O ban list for 23 August. According to the NSE, stocks are prohibited in the F&O sector when they have exceeded 95% of the market-wide position limit (MWPL). During the F&O ban period, no new positions are permitted for F&O contracts in that stock.

Bank Nifty Outlook

“Bank Nifty has tried to sustain above 44,000 however as the day progressed it witnessed selling pressure and closed marginally in the red. The pullback towards key hourly moving averages placed in the range 44,000 – 44,100 is providing a stiff resistance. Unless the Bank Nifty manages to sustain above the resistance zone we can expect the selling pressure to continue. On the downside the Nifty Bank Nifty can slip towards 43,500 from a short term perspective,” said Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas.

Technical View

“The market is witnessing a non-directional activity on the higher side and finding resistance near 19,450, while on the lower side the index is regularly taking support near 19,375. Any fresh uptrend is possible only after the dismissal of 19,450, and above the same the index could rally till 19,500-19,525. On the flip side, dismissal of 19,375 could accelerate the selling pressure and the index could slip till 19,325-19,300,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities.

Sebi fines Rs 7 lakh on Shapoorji Pallonji and Company for violating disclosure rules

Capital markets regulator Sebi has imposed a penalty of Rs 7 lakh on Shapoorji Pallonji and Company for flouting disclosure norms.

In its order, Sebi found that Shapoorji Pallonji and Company did not take prior approval from the stock exchange for converting non-convertible debentures (NCDs) into a term loan way back in March 2021.

Additionally, the company had not updated certain information on its website as required under the Listing Obligations and Disclosure Requirements (LODR) Regulations.

Those details are pertaining to notice of meeting of the board of directors where financial results would be discussed; financial results; complete copy of the annual report after FY 2019-20; information, report, notices, call letters, circulars, proceedings, concerning NCRPS or NCDs; and all information and reports including compliance reports filed by the listed entity.

By not making such disclosures, the company violated the provisions of LODR rules and accordingly, Sebi imposed a “penalty of Rs 7 lakh on the noticee viz. Shapoorji Pallonji and Company Pvt. Ltd”.

The regulator received a letter from Shapoorji Pallonji and Company in July 2021 informing Sebi that it had converted its listed NCDs to term loan on March 31, 2021 in accordance with a One Time Resolution (OTR) plan executed between the company and its lenders.

Following this, an examination was carried out by Sebi in order to examine the compliance status of LODR rules by the company.

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.

Minimum issue size for non-profits at SSEs may be cut by a half

The Securities and Exchange Board India (Sebi) has proposed to reduce the minimum issue size for non-profit organisations (NPOs) on social stock exchanges (SSEs) by 50%, and application size by 95% to facilitate more fundraising.

A consultation paper issued on Tuesday stated that both the NSE and BSE have set up the SSE segment, and 31 NPOs were registered in this segment across both exchanges, as of August 23. An NPO is required to be registered with the SSE to raise funds.

This is because the SSE concept is at an initial stage and NPOs may find it difficult to raise Rs 1 crore from a limited set of investors, says the regulator. In addition, investors are not sufficiently aware of the SSE framework. Consequently, it may not be easy for such NPOs to find investors to raise the stipulated Rs 1 crore. Further, the minimum fund flow requirements for the past financial year of the NPO on the SSE has been fixed at Rs 50 lakh (for annual spending) and Rs 10 lakh (for funding), stated the paper.

As regards the minimum application size for public issue of a ZCZP, it has been proposed to reduce the present Rs 2 lakh threshold to Rs 10,000. Lowering the same could help a large number of investors who may like to subscribe to ZCZP of more NPOs, says the paper. Besides, Rs 2 lakh is deemed too large for those donating on a regular basis.

Among other proposals is to exempt educational institutes from registration under Section 80G of the Income Tax Act, 1961, given that these entities use their income solely for educational purposes and not for profit, similar to charitable institutions. Further, the term ‘social auditor’ will be replaced by ‘Social Impact Assessor’ as the term ‘audit’ has a negative connotation.

The format and detail of past social impact to be provided by NPOs can be based on past practice of the NPOs, as restating the past social impact assessment into a format prescribed by Sebi would be a costly and time-consuming exercise for NPOs, it said.

Sebi has sought comments on the proposals by September 19.

Heavy rainfall lashes Chennai! Schools declare holiday as city reports waterlogging in many areas – In Pics

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Heavy overnight rainfall lashed Chennai and its suburbs. Authorities declared a holiday in schools on Monday. At the airport, International flight operations were also affected. Around 10 incoming flights (including from Doha and Dubai) were diverted to Bengaluru. Downpour also affected departure.However, the showers brought relief to people from the sweltering heat that the city and its nearby districts had been witnessing over the past few days.The weather office has forecasted more spells of rain for the city and its suburbs on Monday.Moderate thunderstorm with “moderate rain is very likely” in isolated places over Chennai, Tiruvallur, Chengalpattu, and Kanchipuram districts, said Regional Metrology Department, Chennai, reported news agency ANI. Here are some pictures. Have a look: 

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Chennai: Aotorcyclist drives past the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

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Chennai: Vehicles wade through the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

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Chennai: Motorcyclists drive past the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

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Chennai: Vehicles wade through the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

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Chennai: Motorcyclists drive past the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

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Chennai: A cyclist rides past the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

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Chennai: Vehicles wade through the waterlogged Rajiv Gandhi IT Expressway after rainfall, in Chennai. (PTI Photo)

After four weeks, gold rebounds, saves $1,900/ounce; traders should short on every bounce

By Jigar Trivedi

Weekly, the metal gains 1.4% after four consecutive periods of declines. Initially, the yellow metal dropped below $1,885 an ounce on Friday, facing pressure from a strong dollar as investors continued to gauge the monetary policy outlook following Federal Reserve Chair Jerome Powell’s Jackson Hole remarks. The banker noted caution is required in next meetings to assess the health of the economy, but further hikes won’t be ruled out since the regulator aims to bring inflation back to the target. At the same time, traders bet on a possible pause in tightening from the ECB due to the weak European data. More insights on that could be provided in Lagarde’s comments later in the day. Previously, two Fed officials indicated that the jump in bond yields could complement the central bank’s effort to slow the economy and reign in price pressures without needing to raise rates.

Dollar Index firms at 11-week high

The dollar index rose above 104.2 on Friday, reaching its highest levels in eleven weeks and on track to advance for the sixth straight week as investors digested Federal Reserve Chair Jerome Powell’s Jackson Hole speech. Powell’s statement emphasized the US Federal Reserve’s commitment to bringing inflation back to 2% and stated that the central bank is ready to hike rates if needed. At the same time, Powell suggested the Fed could hold rates steady at its next meeting in September to assess the incoming data and the evolving outlook and risks.

US durable goods orders fall the most in over 3 years

New orders for manufactured durable goods in the US plummeted by 5.2% in July 2023, following a downwardly revised growth of 4.4% in June and exceeding market expectations for a 4.0% decline. It was the sharpest decrease in durable goods orders since the aftermath of the COVID-19 outbreak in April 2020, driven by a significant drop in demand for transport equipment.

US 10-year treasury yield retreats further

The yield on the 10-year US Treasury note retreated toward 4.2% after hitting a 15-year high of 4.342% on August 21st, triggering a sharp rebound for government bonds worldwide as credit markets continued to assess the policy outlook for the Federal Reserve and gauge the impact that higher bond supply may have on their bidding levels. Cooler-than-expected PMI figures engaged bond buyers in the market to take further advantage of the recent slump in Treasury securities, reflecting bets that fears of a slowing US economy will force the Fed to ease its hawkishness. Still, other data releases countered slowdown fears, as strong retail sales underscored the resilience of the US consumer while robust industrial growth and a relatively tight labor market suggested the US central bank may still have more room to tighten monetary policy. Additionally, risks remain for bond prices in the secondary market due to concerns about higher long-dated debt issuance from the Treasury this month.

Outlook

US will release consumer confidence on Tuesday but most importantly, ADP employment change for August and Q2 GDP on Wednesday and Non-farm payrolls on Friday will be releasing. From the technical angle, $1,885/ounce, the low point of last week is now a crucial support for now for gold price. In case the yellow metal with the support of the volumes, falls below it, may fall further to $1,860 an ounce. The dollar index too has appreciated last week, hence if the bull-run continues in the greenback, the yellow metal may decline further. Hence we recommend to short on every bounce.

(Jigar Trivedi, Senior Research Analyst – Currencies & Commodities at Reliance Securities Limited. Views expressed are the author’s own.)

The stability and benefit of investing in Digital Gold

By Mahendra Luniya

Gold has been a part of portfolios for long times. It has proven to be a hedge against inflation and has helped in difficult times. Now the world is witnessing a shift in the way investors invest in gold. The shift is towards digital gold, an easier and more transparent way of investing in gold. Digital gold products have mitigated many concerns related to gold such as purity, additional charges, storage burden and more. Let us discuss the two prominent types of digital products.

2) Gold ETF: These are mutual funds which invest in gold and are regulated by SEBI. This is one of the most pocket friendly way of owning gold as the ticket size to buy is one unit, the price of which is around Rs.50/-

Stability and benefits in digital options

1) SGBs: SGB is backed by the RBI making it one of the least risky investments and the 2.5% interest gives an additional earning which makes it more attractive as earning interest is not possible in any other form of gold investing. This product even makes accumulation easy as one can easily buy units from RBI (when they are issued) or from the secondary market where they are tradable like any other listed security. The product adds stability to investing in digital gold as it is backed by RBI so there is negligible risk of default or purity of the gold. The product makes buying gold cheap. GST is not applicable on the SGB purchase so the investors save 3% of their money while buying.

These bonds also have discounts: – Yes, a discount on gold price! The bonds being a new product have low liquidity in the stock markets. Hence these bonds trade at a discount to the spot market price of gold. So, an investor who wants to buy and hold gold for the long term can consider buying SGBs from the stock market where it is witnessed that the discount ranges from 3-7% against the on-going market price of gold.

2) Gold ETFs: These mutual funds invest in pure gold. Investors can buy and sell these from the stock exchanges where these are listed. Gold ETFs give investors the option to invest in very small amounts. The price of each unit is currently around Rs.50/- allowing investors to allocate money to gold in an easier and effective manner. These funds are regulated by SEBI and hence adding trust to the investment option.

These ETFs also do not attract the 3% GST on purchase. Although they attract an annual expense fee which can go up to maximum 1% per year. One should compare the expense ratios of different fund houses while buying Gold ETFs.

Benefit of digital gold compared to physical gold

1) Purity: There have been concerns related to purity of the gold being bought in the physical form for years, whereas in digital gold this concern is completely mitigated.

2) GST: Investors are required to pay 3% GST while buying gold in physical form thus reducing the potential returns. That isn’t the case with digital products.

3) Making charges: Making charges are charged by jewelers on buying gold bullion or jewelry. They can range from 2-18% depending on the type of gold purchased. This money is saved in digital gold.

4) Storage: Most of the investors in India buy gold bullion or jewelry and keep it in Bank lockers. These lockers attract annual rents. This yearly outflow of money is not required in digital options.

5) Interest: The physical option requires yearly outflow of money, to keep gold secure whereas in products like SGB investors get a yearly inflow of Interest.

6) Price difference: While dealing in physical gold one must have noticed two different prices, one for selling and one for buying. While selling gold investors jewelers pay less to the investors as compared to what is prevailing in the market. This difference can range from 2-3%. This is not the case in digital gold where the buying and selling prices are the same.

Thus, to conclude, any person who wants to buy gold only from the perspective of investment should always think of digital gold so that they have most of the returns and enjoy the benefits it carries.

(Mahendra Luniya, Chairman, Vighnaharta Gold. Views expressed are the author’s own. Please consult your financial advisor before investing.)

TUSD user data gets potentially released over TrueCoin’s third-party vendor infringement 

According to Cointelegraph, the creators of TrueUSD (TUSD), a stablecoin, announced a potential leak of certain Know Your Customer (KYC) and transaction history data. This initiative took place after one of TrueCoin’s third-party vendors was compromised.

Sources revealed that TrueCoin operated TUSD stablecoin till July 13, 2023. On October 16, 2023, a third-party vendor’s security team mentioned TrueCoin as “an anomalous account change within [TrueCoin’s] organisation made by a compromised support vendor.” It is believed that there has been a compromise of some of TUSD’s existing customer data.

Furthermore, the TUSD system is expected to be secure and not attacked. Both the TUSD system and TUSD’s reserves are unaffected, Cointelegraph concluded.

(With insights from Cointelegraph)

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