PremiumIndices ended in the green on Monday as they jump around 0.5% on the back of a strong Auto sector and amidst positive global cues. RBI MPC's monetary policy meeting outcome scheduled on June 8 will be the key factor that will drive the market sentiments this week. Analysts expect RBI to keep the repo rate unchanged.
Indian shares ended higher on Monday, powered by sustained gains in auto stocks and tracking the mood in the broader Asian market, as mixed U.S. jobs data bolstered bets that the Federal Reserve may skip an interest rate hike later this month.
The blue-chip Nifty 50 index closed with a gain of 60 points at 18,593, while the benchmark S&P BSE Sensex advanced 240 points to close at 62,787. Elevn of the 15 broad-based Nifty sectoral indices ended in the green on Monday.
M&M led the Auto index surge as it jumped 4%. Axis Bank and Tata Motors also shined as they gained more than 2% each. Divi's Labs, TechM, and Asian Paints were prominent laggards in today's session.
Most sectoral indices ended in the green with Auto jumping more than 1%. Pvt Bank, Media and Consumer Durables also ended in the green with decent jumps. PSU Bank, FMCG and IT ended in the red with minor drops.
Asian stocks followed Wall Street higher on Monday after strong U.S. hiring data suggested a possible recession might be further away, while smaller wage gains stoked hopes inflationary pressures are weakening.
Japan's Nikkei share average closed at its highest in 33 years on Monday as gains on Wall Street lifted risk appetite, while investors kept betting on domestic equities on expectations the Bank of Japan would retain its ultra-loose policy.
The Nikkei index jumped 2.2% to its highest close since July 1990 and posted its biggest daily gain since Jan. 18. The broader Topix advanced 1.7%.
China's blue-chip stocks dropped as Sino-U.S. tensions overshadowed optimism from a private-sector survey that showed services activity in the world's second-largest economy accelerated last month. Hong Kong shares edged higher.
China's blue-chip CSI300 Index closed down 0.5%, while the Shanghai Composite Index edged 0.1% higher. Hong Kong's benchmark Hang Seng was up 0.8% and the Hang Seng China Enterprises Index added 0.6%.
European shares opened flat on Monday as markets failed to catch the tailwind from a bounce seen last week, while London stocks led regional gains following upbeat performances by energy firms on the back of higher oil prices.
The Reserve Bank of India (RBI) is again expected to keep the repo rate unchanged and will go for a “prolonged pause" in its bi-monthly monetary policy this week, said SBI Research in a report.
Moreover, the central bank is likely to downgrade inflation projections for FY24 and a possibility of a GDP growth upgrade, according to the research report authored by Soumya Kanti Ghosh, Group Chief Economic Adviser State Bank of India.
The RBI’s monetary policy committee headed by governor Shaktikanta Das is slated to hold the policy meeting this week with its decision to be announced on June 8. (Read More)
Indian banks have delivered strong performance during the financial year 2022-2023, with a few banks clocking their decadal-best Return on Assets (RoA), largely driven by robust loan growth, improving asset quality in a post-Covid era and margin delivery as the lenders benefitted from the transmission of repo hike. The Reserve Bank of India increased repo rates by 250 bps in FY23, which the banks took to their advantage as the lag of asset-liability re-pricing.
With the expectation that the rate hike cycle is largely behind us, analysts believe that credit growth of banks to moderate and margins to stabilize going ahead as funding costs reprice. (Read More)
More than 80% of consumers surveyed in India blamed brands, businesses, local communities, and government agencies for climate change, while 70% agreed to imposing rules to ensure more sustainable livelihoods.
To live in a more frugal world, 51% respondents in India said fossil fuel companies must be banned from advertising, while 45% said restrictions should also be imposed on big promotional events. Meanwhile, 36% said fast fashion brands must be banned followed by 35% of respondents seeking a pause in consumption of meat.
Close to 30% said they want to see a curb on air travel and 22% on cars, according to findings of the Havas 2023 Prosumer report that polled over 12,929 people across 30 markets including Brazil, China, France, India, the United Kingdom, and the United States. (Read More)
Food services company Westlife Foodworld Ltd., which owns and operates McDonald’s restaurants in West and South India, on Monday announced its official listing on the National Stock Exchange (NSE) under the ticker symbol Westlife.
The company was previously only “permitted to trade" but is now listed on both the NSE and BSE, which will result in increased accessibility to more shareholders for Westlife, it said in a statement.
Westlife Foodworld focuses on setting up and operating quick-service restaurants in India through its subsidiary Hardcastle Restaurants Pvt. Ltd. (HRPL). HRPL is a McDonald’s franchisee with rights to own and operate McDonald’s restaurants in India’s West and South markets. HRPL operates 357 McDonald’s restaurants across 56 cities. (Read More)
Mahindra Group on Monday said it has appointed Amarjyoti Barua as Executive Vice President, Group Strategy.
In this role, he will lead the Group Strategy Office, working closely with the overall portfolio of businesses.
The investor relations function will also now be a part of Group Strategy, the Mumbai-based automaker said in a statement.
Barua will be a part of the Group Executive Board reporting to Mahindra Group Managing Director and CEO Anish Shah. (PTI)
Domestic hotel companies, including The Indian Hotels Co. Ltd (IHCL), Lemon Tree Hotels Ltd, and Chalet Hotels Ltd, are primed for continued growth in the fiscal year 2024 (FY24), following an impressive return to profitability in FY23.
These hotel firms are poised to capitalize on favourable market conditions and high-profile events like the G20 summit and the ICC Cricket Men’s World Cup. Revenue per available room (RevPAR), a key industry performance metric, was 23% higher this April than pre-pandemic levels of April 2019, according to a 3 June ICICI Securities report referencing HVS Anarock data. The report also noted a year-on-year RevPAR growth of 19%. (Read More)
Tata Power Renewable Energy Limited (TPREL), a subsidiary of Tata Power, on Monday said it has commissioned a 110-MW solar power project in Bikaner, Rajasthan, which will supply power to the Kerala State Electricity Board (KSEB).
The project will generate approximately 211 million units (MUs) of electricity annually, leading to a remarkable reduction of 258,257 metric tonne (MT) of carbon footprint, the company said in a statement. (Read More)
Shares of Mahindra & Mahindra Financial Services Ltd’s (Mahindra Finance) have been scaling new highs over the past few months. The stock hit a new 52-week high of Rs304 apiece on Monday on the National Stock Exchange.
The company’s monthly operational update for May brings cheer with disbursements rising as much as 39.6% year-on-year (y-o-y) and 9.9% sequentially to Rs4,150 crore. Healthy loan disbursal and stable collections have led to a 3.3% y-o-y increase in the company’s assets under management to Rs85,500 crore.
To be sure, some near-term risks loom. For one, how the monsoon pans out could have a significant impact on the company’s disbursements. Analysts point out that the impact of monsoon on growth and asset quality is a key monitorable. (Read More)
Data-center operator Cyxtera Technologies Inc has filed for bankruptcy protection on Sunday in New Jersey, two years after the company went public. The company cited financial difficulties and a significant funding shortage.
The Miami, Florida-based company specializes in providing co-location services, enabling businesses to store their servers and networking equipment in third-party data centers like those operated by Cyxtera.
In March, Cyxtera entered into an agreement with its lenders to extend its revolving credit facility of $120.1 million, pushing back the maturity date to 2024. (Read More)
In an overall upbeat market on Monday, the Nifty Auto index gained more than 1% and touched a new 52-week high. According to analysts, this upward movement is being supported by significant buying in the four-wheeler space. The Nifty Auto index is anticipated to maintain this trend going forward, with prices ideally moving towards 14800 in the short term and 14300 acting as immediate support.
"Nifty auto index has breached 55 months resistance (4.5 Years) followed by retest with base formation. It is bullish continuation sign on higher time frame. On a weekly time frame stock has given breakout of rectangle pattern.
In a recent upside move, the Nifty 50 is up by 10% whereas in the same duration Nifty auto is up by almost 20%. It shows relatively better strength of the Auto sector. The nifty auto index is on a spree to form all-time high level," said Kapil Shah is Technical Analyst at Emkay Global Financial Services and technical analysis trainer at Finlearn Academy. (Read More)
Anmol India Ltd, a player in supply chain management industry, commodity Trading, and coal import, has approved the issue of bonus shares in the ratio of 4:1, i.e. 4 equity shares for every 1 Equity Share held by the shareholders of the Company as on the record date, subject to the approval of shareholders.
The board also approved an increase in the Authorized Share Capital of the Company from the existing Rs. 11.50 crores to Rs. 57 crores and consequent alteration in the Capital Clause of the Memorandum of Association of the Company, on account of the issue of Bonus Shares of the Company, subject to the approval of shareholders.
Earlier, Anmol India Ltd. had announced stellar earnings for quarter and year ended 31 March 2023. (ANI)
The civil aviation ministry will hold discussions with airlines later in the day on issues related to airfares, which have surged on certain routes in recent weeks, according to an official.
Airfares have jumped significantly on certain routes, especially in the wake of crisis-hit Go First suspending operations from May 3.
The meeting with representatives of airlines is likely to be chaired by civil aviation minister Jyotiraditya Scindia, the official said. (Read More)
Bajaj Finance, the non-banking finance company (NBFC), has received a boost from global research house Jeffries. The NBFC that manages around half of consumer loans in India in volume terms and significant shares in volume for the purchase of electronic items and iPhones is set to benefit from consumer acquisition and stable asset quality driving margin growth.
Jefferies has raised its target price on Bajaj Finance citing its strong loan book growth, robust new customer acquisition and stable margins and asset quality.
The global brokerage house maintains a ‘Buy’ rating on the stock and increased the target price to ₹8,310 per share from 7,280 earlier, implying an upside of around 18% from the current market price. (Read More)
Deepak Agrawal, CIO – Debt, Kotak Mahindra Asset Management Company: At present, India is in a Goldilocks situation with strong GDP data, cool-off in inflation. The forthcoming decision of the Monetary Policy Committee (MPC) transcends the usual deliberations of interest rate hikes or pauses. Instead, it hinges on whether the MPC will pivot towards a "neutral" stance or persist with the current stance of "withdrawal of accommodation." Considering the prevailing ambiguity surrounding the future path of the Federal Reserve's rates in the coming months, our perspective leads us to anticipate a dovish message from the MPC, implying that the Reserve Bank of India (RBI) has concluded its tightening measures, all while maintaining the existing monetary policy stance.
Major wood panel companies reported subpar operational performance for the March quarter (Q4FY23). High raw material costs and an unfavourable geographic mix translated into steep year-on-year Ebitda margin contraction for companies in the MDF and allied segment such as Greenpanel Industries Ltd and Century Plyboards Ltd. Ebitda is earnings before interest, tax, depreciation and amortisation.
Going ahead, the margin outlook does not seem too bright. Industry participants expect timber prices to remain high going forward resulting in near-term margin headwinds, even though softening chemical prices may offer some respite, according to analysts at ICICI Securities Ltd. "Also, higher imports of MDF and additional domestic capacity being commissioned will thus likely sustain near-term demand and margin pressure for organised players," the brokerage said in a report dated 4 June. (Read More)
In May, India's services PMI declined to 61.2 from 62.0 in April, according to media reports.
Tata Chemicals share price surged over 4% on Monday's session following the announcement that the Tata Group signed a memorandum of understanding (MoU) with the Gujarat government to build a giga factory with a 20 Gigawatt (GW) capacity at a cost of ₹13,000 crore, and that the company would restructure its US operations to reduce the number of intermediary entities. Tata Chemicals shares opened at ₹981 apiece on BSE.
According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, the stock is in action is on the news of the lithium-ion battery deal where Tata Chemicals is creating a platform for electro-chemistry solutions to create its own electric vehicle supply chain. (Read More)
Byju's firm is expected to pay the $40 million instalment of its highest unrated loan of $1.2 billion on Monday. The ed-tech startup needs to make the quarterly interest payment on June 5, which is also the deadline for the instalment.
If the company fails to make the quarterly interest payment, then the loan, which is at the centre of the beleaguered firm's financial troubles, will default.
The $40 million payment is expected to be made on June 5, reported Bloomberg citing anonymous sources. The information is not available in the public domain. The situation is still fluid and the Byju's payment plan can change as well, reported Bloomberg. (Read More)
ICICI Securities Limited Sector update - Technology: We have analysed the just-concluded quarter results of global SaaS companies with whom Indian IT companies have sell-to and sell-with partnerships (Servicenow, Atlassian, Snowflake, Salesforce, Workday, etc.) and digital engineering companies (EPAM, Globant, Endava), which can be considered proxy for high-end digital services demand. Our key takeaways from this analysis are:
SaaS and digital companies guided for lower revenue growth in FY24/CY23 vs FY23/CY22 at the start of the year. But the guidance has not further deteriorated despite the banking crisis in Mar’23. On the contrary, Servicenow, Salesforce, Intuit, Workday and Atlassian have either retained or slightly upgraded their fullyear (FY24/CY23) guidance.
SaaS and digital companies have guided for weak growth in the Jun’23 quarter, but expect demand to revive in H2FY24/H2CY23 as full-year guidance for most companies implies relatively higher CQGR in second half vs first half of the year.
Deal pipelines are healthy and growing despite higher scrutiny and lengthening of the sales cycle. Therefore, SaaS and digital companies believe digital transformation demand is sustainable.
Clients are focusing on cost optimisation and reduction of total cost of ownership (can be achieved by consolidating SaaS platforms). This would likely be a net positive for Indian IT services providers, as many of them have built integration capabilities around the large SaaS vendors who are likely to benefit from consolidation.
Financial services growth was largely resilient for most SaaS companies; but sub-segments exposed to regional banks exhibited softness.
Generative AI is expected to increase net TAM (Total Addressable Market) and enhance revenues as per SaaS and digital players. Servicenow and Salesforce have already introduced generative AI on their platforms while other companies are working with clients on various generative AI use cases.
Gold rate today opened lower on Multi Commodity Exchange (MCX) as uncertainty over US Fed's rate hike helped the US dollar to sustain at two-month highs. Gold's future contract for August 2023 opened lower at ₹59,555 per 10 gm and went on to hit an intraday low of ₹59,425 per 10 gm levels within a few minutes of the commodity market's opening bell today. In the international market, gold price today is oscillating around $1,945 per ounce levels.
Likewise, the silver rate today opened lower on MCX at ₹71,901 per kg levels and went on to hit an intraday low of ₹71,741 per kg levels during early morning deals. In the international market, silver price today is around $23.55 per ounce levels. (Read More)
Ramco Systems share price rose nearly 5% in the early morning trade on Monday after the company announced the inauguration of its wholly-owned subsidiary in Qatar. The stock price jumped as much as on the BSE.
In a regulatory filing on Friday, the enterprise software company said its new subsidiary in Qatar will support and transform the region’s business houses and MNCs in the area of ERP, HR, and payroll. (Read More)
The share price of HBL Power Systems surged over 10 per cent to hit their fresh 52-week high of ₹123.70 while those of Kernex Microsystems opened at their 5 per cent upper circuit of ₹297.55 in early trade on BSE on Monday (June 5). Market participants believe these two stocks have been gaining traction on hopes that after the Odisha accident, the government will prioritise contracts to deploy the Kavach system which will be a boost for these two companies as they are among the major companies that provide transport-related equipment and services.
Both stocks have been gaining for the last few days; shares of HBL Power Systems have gained over 13 per cent in just three sessions of June while those of Kernex Microsystems are up around 16 per cent in the same period. (Read More)
Shares of One 97 Communications (Paytm) rose over a per cent but soon cooled off to trade with mild gains in morning trade on BSE on Monday (June 5) after the company's update on its operating performance for the month of May showed healthy growth in the consumer base for the June quarter to date. The stock opened at ₹724 against the previous close of 717.55 and touched a high and low of ₹725.45 and ₹711.50 in trade so far.
The company in a BSE filing on Monday (June 5) said it continued witnessing the expansion of the consumer base with average monthly transacting users (MTU) at 9.2 crore for the quarter to date (average for April and May 2023), up 24 per cent year-on-year (YoY). (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Market is poised to break out of the range of 18300-18600. Nifty has moved up by 9.5% from the March lows and the market momentum is strong. Macro news flows are positive for a breakout of the upper range. But more activity is likely to be in the broader market where many mid and Smallcap stocks are breaking out. There is valuation comfort in the mid and Smallcap universe.
Even though banking is a crowded trade, the sector will remain resilient since interest rates have peaked and credit growth continues to be robust. Autos have the potential to outperform since there are clear signs of revival in demand. Midcap IT is far outperforming largecap IT.
The Indian rupee opened 15 paise lower against the US dollar on Monday tracking broader strength in the greenback and rising crude oil prices. The local currency opened at 82.46 a dollar, down 15 paise as compared to Friday’s close of 82.31 per dollar.
The US dollar and near-maturity US yields rose on Friday after data showed that the US economy added more jobs last month than was expected, Reuters reported.
The crude oil prices rose sharply after the OPEC+ decided to reduce overall production targets from 2024 by a further total of 1.4 million barrels per day (bpd). Saudi Arabia will make an extra 1 million barrel-a-day supply cut in July. (Read More)
The cash-strapped airlines Go First on Friday said that extended its flight cancellation until 7 June, 2023, due to 'operational reasons'. It had earlier announced the suspension of flight operations until June 4, pushing it now by three more days.
In an announcement issued online, the airline said all Go First flights scheduled till 7 June, 2023, have been cancelled. Go First said that full refund will be issued to the original mode of payment shortly.
The airline has already stopped issuing tickets and temporarily ceased operations on May 3. (Read More)
The trend of layoffs continues as ZoomInfo, a US-based marketing technology company, announces its intention to reduce its global workforce by approximately 3%.
According to a report from IANS, the company stated in a filing with the US Securities and Exchange Commission (SEC) that it has informed employees about plans to streamline the organizational structure, expedite decision-making, and allocate resources to strategic growth opportunities while maintaining profitability.
This move aligns with the actions taken by other tech giants such as Google, Microsoft, and Amazon. (Read More)
Sonalis Consumer Products Ltd, the distributor of nutritious bars and healthy snacks, will launch its initial public offering (IPO) this week. The company has a large product portfolio of healthy snacks and food and its products are distributed across 3 states Maharashtra, Gujarat and Goa.
Sonalis Consumer Products IPO is an SME IPO opening on June 7 and is a fresh issue of 9.44 lakh shares. The IPO is Fixed Price Issue IPO.
Click here to explore 10 key things to know about Sonalis Consumer Products IPO:
Shares of Manaksia Ltd are one of the dividend-paying stock today as the small-cap stock with a market cap of around ₹1,150 crore has announced ₹3 per share final dividend to its eligible shareholders. The small-cap company informed about the development in its latest exchange communication and said that the record date for dividend will be informed later.
Informing Indian stock market exchanges about the dividend payment, Manaksia Ltd said, “We wish to inform that the Board of Directors of the Company at its meeting held today i.e. 3° June, 2023, which commenced at 11:00 A.M. and concluded at 12:40 P.M. has inter alia transacted the following business(es): Recommended Final Dividend @ 150% (i.e. Rs. 3.00/- per equity shares having face value of Rs. 2/- each) on the equity shares of the Company for the Financial Year 2022-23 for the approval of the shareholders at the ensuing Annual General Meeting (AGM)". (Read More)
Wipro sets June 16, 2023, as record date for 12,000 cr buyback plan; Coal India OFS receives robust response from investors; SBI Life directed by Irdai to take over policy liabilities of Sahara India Life Insurance; Tata Motors expects moderate growth in passenger vehicle industry; Bajaj Finserv signs MoU with Government of Maharashtra for ₹5,000 crore projects in Pune; Godrej Properties raises stake in Wonder City Buildcon to 100%; Hero MotoCorp increases price of VIDA V1 Pro electric scooter; Ashwani Kumar appointed as new MD and CEO of UCO Bank; Brigade Enterprises to launch 10 housing projects this fiscal; Sterling Holidays Resorts Ltd plans to add a new hotel every month in the second half of this year. (Read More)
In an effort to protect the interest of thousands of policyholders of defunct Sahara Group’s insurance arm Sahara India Life Insurance Co. Ltd., the insurance regulator, on Friday, directed a take-over of the company’s all the 2 lakh-odd live insurance policies by India’s largest privately held life insurer SBI Life Insurance Co. Ltd.
Following a regulatory meeting on the issues plaguing Sahara India Life, the Insurance Regulatory and Development Authority of India or Irdai said in a release that the regulator has ordered an immediate transfer of Sahara’s life insurance business to SBI Life Insurance.
“Upon reviewing Sahara India Life’s policy data, it has become apparent that the company's portfolio is experiencing a run-off trend," said Irdai. (Read More)
Tata Motors expects the passenger vehicle industry to grow to 5-7 per cent in the current financial year as compared with 27 per cent sales growth in the last financial year with dip in pent-up demand. According to a top company executive, the auto major is looking to introduce new products including CNG and electric models, while bolstering its existing range with new interventions in order to sustain growth,
In an analyst call, Tata Motors Managing Director, Passenger Vehicle and Electric Vehicles, Shailesh Chandra noted that pent-up demand in the passenger vehicle segment has now clearly gone down, barring certain new launches in a few popular sports utility vehicle segments. (Read More)
Indian equities witnessed a volatile week but persistent inflow of foreign capital into domestic equities, inline earnings from India Inc supported the market amid mixed global cues during the week.
On Friday, Sensex closed 119 points, or 0.19 per cent, higher at 62,547.11 while the Nifty ended at 18,534.10, up 46 points, or 0.25 per cent.
Mid and smallcaps outperformed the benchmark indices significantly. The BSE Midcap index hit its all-time high of 27,322.22 in intraday trade before ending 0.60 per cent higher at 27,294.10. The Smallcap index hit its 52-week high of 30,969.95 in intraday trade and closed 0.57 per cent higher at 30,885.70. The all-time high of the smallcap index is 31,304.44 which it hit on January 18, 2022. (Read More)
Bajaj Finserv Ltd on Saturday signed a Memorandum of Understanding (MoU) with Maharashtra government, to develop ₹5000 crore projects in Pune.
The MoU was signed by Harshdeep Kamble, Industry Secretary, Government of Maharashtra and S Sreenivasan, Chief Financial Officer, Bajaj Finserv. Maharashtra's Deputy Chief Minister Devendra Fadnavis, and Sanjiv Bajaj, Chairman and Managing Director, Bajaj Finserv.
“We welcome the investment that Bajaj Finserv is making in the state of Maharashtra. We are proud of Bajaj group's association with Maharashtra and will provide all the necessary support for the development of this project," said Devendra Fadnavis. (Read More)
Saudi Arabia Sunday said it will make an additional voluntary cut of 1 million barrels of oil per day starting July to support the sagging cost of crude. The rest of the OPEC producers agreed to extend earlier production cuts through the end of 2024.
Unveiling the unilateral cut, Saudi Energy Minister Prince Abdulaziz bin Salman said, “This is a grand day for us, because the quality of the agreement is unprecedented," adding that the new production targets are “much more transparent and much more fair."
The Saudi energy minister further said the cut could be extended and that the group “will do whatever is necessary to bring stability to this market." (Read More)
IT major Wipro Ltd has set June 16, 2023, as the record date for the whopping ₹12,000 crore buyback plan.
“The Company has fixed Friday, June 16, 2023, as the Record Date for the purpose of determining the entitlement and the names of equity shareholders who are eligible to participate in the buyback," said Wipro in its filing.
The IT major had announced ₹12,000 crore buyback plan and had fixed a floor price of ₹445 per equity share. Wipro will buy back up to 269,662,921 shares of face value ₹2 each from the shareholders and account for 4.91 per cent of all equity shares. (Read More)
Stocks rushed higher Friday after a strong report on the U.S. job market suggested a recession may not be as close as Wall Street had feared.
The S&P 500 leaped 1.5% for the latest surge in a rally that's vaulted it nearly 20% since mid-October. That put Wall Street's main measure of health on the edge of entering what's called a “bull market" despite a long list of challenges.
The Dow Jones Industrial Average rallied 701 points, or 2.1%, while the Nasdaq composite gained 1.1%.
The indexes got a boost after a report showed employers unexpectedly accelerated their hiring last month. It’s the latest signal that the job market remains remarkably solid despite much higher interest rates, and it offers a hefty pillar of support for an economy that’s begun to slow.
Areas of the market that do best when the economy is healthy led a widespread rally, including stocks of industrial companies, energy producers and banks. Exxon Mobil rose 2.3% as prices for crude oil climbed on hopes that a resilient economy would burn more fuel.
Perhaps more importantly for markets, the Labor Department's monthly jobs report also showed a slowdown in increases for workers’ pay even as hiring strengthened. (AP)
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