An extended summer and the possibility of hotter-than-usual weather due to El Niño are expected to provide a boost to India’s room air conditioner (RAC) market. However, the industry is unlikely to witness the 20-25% growth that many had anticipated at the beginning of the season, primarily because dealers have remained conservative in stocking inventory.

According to Praveen Sahay, PL Capital while consumer demand at the secondary level has been encouraging since mid-April, weak primary sales have prevented the industry from fully capitalising on the seasonal opportunity.

Secondary Demand Strong, But Primary Sales Lag
Sahay noted that channel checks indicate healthy off-take at the retail level throughout May, but manufacturers have not seen a proportional increase in shipments to dealers.”On the RAC, we did a channel check recently, and definitely the secondary demand has been very good post-15th April throughout May. That led to good traction at the secondary level. However, we also got to know that the primary sales have not been as expected, even though the summer is continuing. Expectations were for nearly 20-25% growth, but that is not happening at the primary level because inventory in the channel was lower. Dealers were not very enthusiastic about the extended or harsh summer in terms of building inventories.”

He added that the industry’s volume growth has remained below expectations.
“Nearly around 15% growth is what we had envisaged based on our channel checks as well as data published by secondary sources, so that is below expectations.”
El Niño Could Extend the Seasonal Boost
Although the first quarter may not deliver the anticipated growth, Sahay believes the extended summer could benefit the industry during the traditionally weaker second quarter.

He expects RAC sales to recover to around 58 lakh units in the first quarter, compared with approximately 51 lakh units last year, but does not foresee volumes exceeding that level.

“Coming to the El Niño impact, it may extend the summer, especially into July. Q2 is usually a lean quarter for RACs. In good years, the industry sold nearly 17-18 lakh RAC units in the secondary market, while last year it was around 15 lakh. We expect that, with the El Niño impact, sales may reach 18 lakh. Altogether, Q1 and Q2 growth would be nearly around 17% plus, not the 20-25% that was expected.”

He also pointed out that performance differs significantly across brands.

“Brand-to-brand, these numbers are varying. Some companies are very aggressive and are doing very well in terms of volumes, and one of them is Voltas right now.”

Partial Price Hikes Could Squeeze Margins
While inflationary pressures and rising commodity costs prompted manufacturers to announce price increases, Sahay said only part of those hikes has been implemented because of intense competition and soft consumer sentiment.

“The first price hike was taken in January to adjust to the BE norms, and all brands absorbed it because the GST reduction gave them some leeway. Ultimately, consumers did not face any price hike. In April, the announced price hike was around 10% to 11%. In our channel checks, we found that only 5% to 6% has been implemented so far. Some discounting and rollbacks have also happened.”

He believes companies have struggled to fully pass on higher costs.

“Competitive intensity has increased. Maybe consumer demand is also getting impacted because of inflation. Those are the reasons why the entire price hike has not been taken, and that will definitely lead to some margin pressure for all the players because they are not able to pass on the entire commodity cost increase.”

Dealers Playing It Safe
The industry’s biggest challenge this year has been the cautious approach adopted by dealers despite favourable weather conditions.

Sahay said dealer inventory levels remain significantly lower than in previous years.

“Our channel checks show that secondary demand has been good, but primary demand is still lower. Earlier, dealers were carrying inventories of more than 30 days. Right now, what we get to know is that inventory is nearly 10 days lower, at around 20 days. That has led to softness in primary sales. Expectations were for 20-25% growth, looking at the harsh summer, extended summer and El Niño impact, but dealers were quite cautious in building inventory. That has led to softer demand. Nearly around 15% growth is what we are estimating so far.”

Q1 Growth Seen at Around 15%, Margins Remain Under Pressure
Looking ahead, Sahay expects the industry to deliver around 15% volume growth in the first quarter of FY27, while profitability is likely to remain under pressure because companies have not been able to fully recover rising input costs through pricing.

“Earlier expectations for volume growth were higher. So far, for Q1, we are estimating around 15% growth. On the margin front, as I highlighted earlier, commodity inflation required a price hike of around 10-11%. The players announced it, but the absorption has been only 5% to 6% so far. There is a gap of nearly 5%, which will definitely impact the margin profile for all the players.”

While the extended summer could provide additional support in the coming months, the industry’s overall performance will largely depend on whether dealers become more confident in rebuilding inventories and whether manufacturers can protect margins amid competitive pricing.

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The sharp decline in crude oil prices has eased one of the biggest concerns weighing on Indian equities, improving sentiment among both domestic and foreign investors. According to market expert Neeraj Dewan, the recent fall in oil prices has strengthened the case for accumulating quality stocks, with financials, defence, infrastructure and metals continuing to offer attractive long-term opportunities.

Speaking to ET Now, Dewan said investors should avoid trying to perfectly time the market and instead use periods of uncertainty to gradually build positions in fundamentally strong companies.

“Oil was the biggest worry for us, and I think that was also one of the reasons why FIIs were not looking at India. Now that oil has come down considerably and we are at very good levels already, it may come down further if things remain alright in the Middle East.”

He said his investment approach over the past several days has remained consistent despite geopolitical uncertainties.

“Like I recommended earlier on the show, we have been accumulating stocks because no one really knows when things will turn around or when a deal will happen. We have to keep those things in perspective and keep accumulating good stocks while we are getting good opportunities.”

Dewan noted that many mid- and small-cap stocks had corrected after the sharp sell-off earlier this year and are now witnessing renewed buying interest.
“Financials is one sector where we have accumulated, and we are getting some returns as well. Defence has also started moving up after a period of consolidation. For long-term investors, there is still good scope. Railway and infrastructure-related stocks are also available at decent valuations.”While he acknowledged that concerns around inflation, the monsoon and global economic developments will continue to create volatility, he believes such phases should be viewed as buying opportunities.

“There will still be worries because of inflation data, both here and in the US, and monsoon-related developments will be tracked closely. These kinds of events will keep giving opportunities. If someone is investing for the next one to two years, they will get these opportunities over the next couple of months.”

BSE Correction Could Be a Buying Opportunity
With the anticipated NSE IPO drawing investor attention, Dewan expects some short-term pressure on BSE shares but does not see it as a structural concern.

“In the short term, there may be some correction because people may feel BSE is already expensive, and there will be speculation about the valuation at which NSE will come. But demand for NSE will be really strong, and the listing can also be strong.”

He believes any meaningful correction in BSE could present an attractive entry point.

“If you see a 10%, 12% or even 15% correction in BSE, I think that would be an opportunity. Once the NSE pricing is known and we see the kind of demand and listing performance, money will again start coming into BSE.”

Addressing concerns that investors could shift capital from BSE to the upcoming NSE issue, Dewan said any such movement is likely to be temporary.

“From now till the issue comes, there can be some correction in BSE and some money may flow to NSE. But that correction would be an opportunity because there is enough demand for capital market-related themes.”

He pointed to the strong performance of listed brokerages and asset management companies as evidence that investor appetite for the capital markets theme remains intact.

“The demand is there and the appetite is there. There may be an initial hiccup because of valuation speculation, but after that, the pickup in BSE volumes, especially in futures and options, will again create opportunities if the stock corrects.”

Metals Continue to Look Attractive
Dewan also remains constructive on the metals sector, expecting demand to stay healthy across multiple geographies.

“Metals should do well because demand is going to continue from the domestic market, the US, and now some demand will also come from the Middle East due to construction and rebuilding activities.”

While he expects aluminium stocks could witness near-term corrections, his broader outlook remains positive.

“There can be some correction in aluminium in the near term, but over the medium term, I am quite positive on the metal space.”

Realty Recovery Still Depends on Rates and Demand
On real estate, Dewan believes the recent gains are largely driven by value buying rather than a broad-based improvement in demand.

He observed that Mumbai’s property market has shown stronger momentum than the National Capital Region (NCR), where demand remains relatively subdued.

“Till now, the buying in the realty space is more because of value buying. The stocks did not do that well over the last one to one-and-a-half years. Mumbai and nearby areas started moving earlier, but in NCR, demand is still a little sluggish.”

He added that developers in NCR are proceeding cautiously, with fewer launches than expected.

“The kind of launches we were expecting are not coming because people are still waiting to see whether demand is going to be good or not.”

Looking ahead, Dewan said inflation, interest rates and the monsoon will determine the sector’s next move.

“A close watch has to be kept on inflation and how interest rates are going to pan out. If we get a better monsoon than expected and interest rate hikes do not happen in the near future, then realty stocks would have bottomed and could start doing well again.”

LOS ANGELES — With NBA free agency approaching in two weeks, the Los Angeles Lakers face critical decisions regarding the future of LeBron James, who has signaled his intention to continue playing and is focused on finalizing a new contract with the team.

James, entering what could be his 24th NBA season, exercised his player option for the current year but now navigates free agency as one of the league’s most prominent available players. Recent reports indicate active discussions between James and the Lakers, with both sides working toward an agreement.

ESPN’s Brian Windhorst provided the latest insight into the situation, noting James’ clear preference to remain in Los Angeles while acknowledging the complexities involved. “I think LeBron’s intention is to play. I think the focus now is on finalizing a deal with the Lakers,” Windhorst said. “Right now, he’s allowed to negotiate with them, and I believe they are negotiating. They are going back and forth.”

The timing adds pressure, as free agency opens soon and other teams could enter the picture if talks stall. Windhorst suggested the Cleveland Cavaliers might show interest as a fallback, but the prevailing view around the league points toward a Lakers resolution.

Financial considerations will play a central role. James’ previous deal carried a substantial cap hit, and any new agreement could influence the Lakers’ ability to pursue additional free agents. The team must balance retaining its veteran superstar with building a competitive roster around him.

James has spent the bulk of his recent career with the Lakers, leading them to a championship in 2020. At 41, he continues to perform at a high level, averaging strong numbers while adapting his game to support younger teammates. His presence remains a major draw for fans and a foundational element for the franchise.

The Lakers’ front office, led by Rob Pelinka, faces a delicate balancing act. Retaining James provides continuity and star power, but salary constraints could limit flexibility in addressing roster needs. Recent seasons have highlighted the importance of complementary pieces around the aging superstar.

Speculation has included potential contract structures, such as shorter deals with player options that offer mutual flexibility. James has historically prioritized winning opportunities alongside financial security, factors likely influencing his decision-making.

Other teams monitoring the situation include those with cap space and contention aspirations. However, James’ deep ties to Los Angeles and the Lakers’ Bird rights advantage make a return the most straightforward path.

The broader NBA landscape adds context. Several star players are expected to hit free agency, creating a competitive market for talent. Teams like the Lakers must move decisively to secure their priorities.

James has evolved into more than just a player, serving as a mentor and leader while maintaining elite performance standards. His potential return would anchor the Lakers’ efforts to build around Anthony Davis and a mix of veterans and young talent.

Fan sentiment remains strongly in favor of keeping James in purple and gold. Social media and sports talk shows have buzzed with discussions about his legacy and the impact of his decision on the franchise’s future trajectory.

As negotiations progress, both sides will weigh short-term roster construction against long-term flexibility. The outcome could shape the Lakers’ competitiveness for years to come.

The coming days will prove pivotal. With free agency looming, resolution on James’ status would allow the Lakers to pivot toward other moves aimed at bolstering their roster. For James, the focus remains on continuing his storied career on his terms.

The California-headquartered business has invested $10m in the Somerset company

A Bath spectacles company has secured a $10m investment from a US technology giant as it looks to develop ‘smart eyewear’.

Inspecs announced a subscription for 7,503,001 new ordinary shares of 1 pence each in the company by Qualcomm Technologies, with the funds used to support its growth.

Inspecs, which recently agreed to be acquired by entrepreneurs Luke Johnson and Ian Livingstone for £85.4m, said the commercial collaboration would create “a connected, technology-enabled platform that intends to redefine eyewear.”

Robin Totterman, founder of Inspecs Group, said: “For many years we have believed that smart eyewear is the next frontier for wearable technology and we are delighted to be partnering with Qualcomm Technologies to deliver on our ambitions.

“We believe this investment and strategic collaboration will accelerate adoption in a category that is about to scale rapidly, and position Inspecs and Qualcomm Technologies among leaders in the industry.”

Qualcomm Technologies is a subsidiary of California-headquartered Qualcomm Group which specialises in the research, development and commercialisation of wireless and computing technologies.

The company has already developed smart eyewear that employs AI under its Snapdragon brand.

Ziad Asghar, senior vice president and general manager of XR, wearables and personal AI at Qualcomm Technologies, said: “Qualcomm Technologies’ collaboration with Inspecs reflects our focus on enabling a new generation of personal AI devices across industries such as enterprise, healthcare, and industrial applications.

“We’re also pleased that Inspecs will be the first partner to adopt our Snapdragon START program, helping bring smart glasses to market that fit naturally into everyday life—blending timeless design with powerful, intuitive technology.”

Inspecs was founded in 1988 by Robin Totterman, a former City bond trader, and now has operations around the world including in the US Portugal, Scandinavia and China, and manufacturing facilities in Vietnam, China and Italy.

SYDNEY — The S&P/ASX 200 index posted modest gains Thursday, supported by strong performances in biotechnology and resources sectors as investors responded to company-specific developments and broader commodity trends.

Biotechnology firm Mesoblast Ltd. led the day’s advances, climbing more than 6 percent amid ongoing interest in its regenerative medicine pipeline. Medical technology company 4DMedical followed with gains exceeding 4 percent, reflecting positive sentiment around innovative healthcare solutions.

Deep Yellow Ltd., a uranium explorer, also featured among the top performers, rising nearly 5 percent as global energy markets showed renewed focus on nuclear power alternatives. These movers highlighted sector rotation toward areas with perceived growth potential amid shifting economic signals.

The benchmark index closed at 8,911.10, down slightly on the day but maintaining resilience near recent highs. Market breadth favored gainers in select industries, though broader caution persisted due to international developments and domestic economic data.

Trading volumes remained healthy as participants assessed corporate earnings and commodity price movements. Resources stocks benefited from stable iron ore and gold prices, while technology and healthcare names drew attention for innovation-driven catalysts.

Analysts noted the market’s selective nature, with investors favoring companies demonstrating clear near-term catalysts over those facing macroeconomic headwinds. The performance of smaller and mid-cap stocks within the ASX 200 underscored this dynamic.

Mesoblast’s advance came as the company continues progress in its stem cell therapies, attracting interest from investors seeking exposure to regenerative treatments. The firm has multiple programs targeting inflammatory and cardiovascular conditions.

4DMedical gained on developments related to its respiratory imaging technology, which offers non-invasive diagnostics for lung diseases. The company’s focus on advanced medical devices aligns with growing demand for precision healthcare tools.

In the resources sector, Deep Yellow’s rise reflected optimism around uranium demand as countries pursue cleaner energy sources. The explorer has projects in Australia and Africa, positioning it to benefit from long-term nuclear power trends.

Other notable performers included companies in gold mining and technology services, though specific details varied by individual announcements and market sentiment. The day’s trading reflected a mix of company news and sector rotation.

Market watchers highlighted the ASX 200’s ability to find support despite mixed global cues. U.S. markets showed varied performance overnight, while commodity prices provided a stabilizing influence for Australian equities.

Economists continue monitoring inflation data and potential Reserve Bank of Australia policy moves. Interest rate expectations have shifted in recent weeks, influencing investor appetite for growth-oriented stocks.

The biotechnology sector has been a standout performer in 2026, driven by innovation in areas like cell and gene therapies. Companies with strong clinical pipelines have attracted capital as investors seek higher-growth opportunities.

Resources stocks remain sensitive to Chinese economic indicators and global supply dynamics. Iron ore and battery minerals have seen fluctuating demand, affecting valuations across the mining sector.

Broader market sentiment stays cautious amid geopolitical uncertainties and corporate earnings variability. Analysts recommend focusing on companies with robust balance sheets and clear strategic plans.

For individual investors, the day’s gainers illustrate the importance of diversification and staying attuned to sector-specific news. While top performers delivered strong returns, the overall index movement was more measured.

Looking ahead, market participants will watch for further corporate updates and macroeconomic releases. The balance between growth sectors and traditional resources will likely continue shaping ASX 200 performance in coming sessions.

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