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Tactical buying visible in IT, selective opportunities emerging in auto ancillaries: Neeraj Dewan

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Tactical buying visible in IT, selective opportunities emerging in auto ancillaries: Neeraj Dewan
India’s equity markets continue to witness a tug-of-war between optimism in the broader market and caution around inflationary pressures, elevated crude prices, and uncertain global developments. While frontline indices remain largely range-bound, selective buying in midcaps and smallcaps has resurfaced as investors respond positively to quarterly earnings announcements.

Market expert Neeraj Dewan believes the broader market has started showing resilience again after a brief phase of profit booking earlier in May.

“There was this smallcap, midcap that has done very well in April. Then beginning of May we saw some profit booking but again buying is coming back once the results are getting declared. So, the market may remain range bound till you get absolute clarity. A lot of stocks which are dependent on crude will stay subdued. They will still stay in a range or may correct a bit, but broader market has started participating, that is something which is a welcome thing in the market,” said Dewan in an interaction with ET Now.

Margin Pressure Persists For QSR Players

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Among individual stocks, investors closely tracked the earnings performance of Jubilant FoodWorks after the company reported disappointing overall numbers despite margin performance beating estimates.


According to Dewan, disruptions in the food business likely impacted the quarter, even as margins held up relatively well. He noted that elevated crude and raw material costs remain a key concern for food companies, particularly in a highly competitive quick-service restaurant environment.
“Yes, this quarter there were disruptions for the food business, so I think that would have come into the numbers. Because margins are still intact and margins as per what people were expecting, so I feel that if things were to improve as far as crude prices are concerned, as far as raw material prices are concerned, then things may look better,” he said.He added that while seasonal demand during the holiday period may support revenue recovery, inflation continues to threaten profitability across the sector.

Competition has also intensified significantly in the QSR space, limiting the ability of companies to pass higher input costs on to consumers.

“Yes, QSR because there is a lot of competition now. So, earlier there was less competition, so they were able to pass on the price increases easily. But for someone like a Jubilant Food or even McDonald’s now there is competition from local domestic players whether pizzas, burgers you get so many options now. So, it is not so easy to pass on,” Dewan noted.

He cautioned that sustained inflation could continue to weigh on margins and suggested investors remain in a wait-and-watch mode until there is greater visibility on inflation trends and sales momentum.

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Auto Ancillaries See Selective Value Buying

The auto ancillary space, which had remained under pressure due to rising crude-linked input costs, is now witnessing selective buying interest.

Dewan highlighted that tyre companies and several ancillary stocks have not reacted strongly despite posting healthy earnings, mainly because of concerns around elevated crude prices. However, he believes a meaningful correction in crude oil prices could trigger sharp buying and short-covering in these counters.

“Yes, I think there was some pressure in the auto ancillaries earlier but slowly some value buying is emerging there. Even if you look at tyre stocks, there is pressure there because crude prices are high and there is a lot of dependence on crude for tyre companies,” he said.

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He added that any easing in geopolitical tensions, particularly involving the US and Iran, could significantly improve sentiment for these stocks.

IT Rally Seen More As Tactical Play

On the information technology sector, Dewan described the recent move in IT stocks as largely tactical rather than conviction-driven.

Despite some bargain hunting after steep corrections, he believes weak earnings guidance from major IT companies continues to cap enthusiasm in the sector.

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“It is a value buying which is happening. It is more like a tactical play because the kind of guidance that they have given is also so low that you do not expect too much to happen as far as earnings is concerned for them this year also,” he said.

He pointed out that companies with stronger enterprise solutions and differentiated products could outperform peers, though broad-based confidence in the sector remains limited.

Long-Term EV Ecosystem Story Still Intact

Dewan also shared a constructive outlook on the electric vehicle ecosystem, particularly companies investing heavily in energy storage and battery infrastructure.

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While he remained cautious on Ola Electric, he expressed optimism about players such as JSW Energy and Adani Green Energy, citing their large-scale investments in battery storage and clean energy solutions.

“The EV based capex has been coming but because it is huge capex that is required for some of these companies, so it is taking time for the execution to happen,” Dewan said.

He believes these companies could benefit meaningfully over the next two to three years as capacities ramp up and economies of scale begin to improve profitability.

Cautious Optimism On Two-Wheelers

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Within the automobile space, Dewan maintained a positive long-term view on two-wheelers but advised investors to remain selective in the near term amid inflation concerns and macro uncertainty.

Among key players, he favours TVS Motor Company due to its strong execution and consistent earnings performance over recent quarters.

“I like TVS because they have done very well as far execution is concerned and last so many quarters now they have been showing good results also,” he said.

However, he recommended gradual accumulation rather than aggressive buying, citing concerns around inflation, monsoon progress, and crude price volatility.

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ITC, Hospitals In Focus During Earnings Season

In the FMCG space, investors are awaiting earnings from ITC Limited amid concerns over duty hikes and their potential impact on cigarette volumes.

Dewan believes ITC could still deliver healthy volume growth alongside stable FMCG margins, especially after encouraging numbers from peers such as Godfrey Phillips India, Tata Consumer Products and Hindustan Unilever.

Healthcare stocks also continue to remain strong despite elevated valuations. Dewan expects Max Healthcare Institute to report robust numbers in line with the performance of Apollo Hospitals Enterprise.

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“Actually, all these hospital stocks though we have been for the last six months, one year that they are expensive but the numbers have been always quite positive and they have been able to declare better numbers and that is why the stocks have also been performing,” he said.

As earnings season progresses, investors are likely to remain focused on management commentary around inflation, input costs, demand recovery, and margin sustainability across sectors.

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GLQ: Deep Discount And Strong Recent Results But Mixed Track Record (NYSE:GLQ)

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GLQ: Deep Discount And Strong Recent Results But Mixed Track Record (NYSE:GLQ)

This article was written by

Nick Ackerman is a former financial advisor using his experience to provide coverage on closed-end funds and exchange-traded funds. Nick has previously held Series 7 and Series 66 licenses and has been investing personally for over 14 years.He contributes to the investing group CEF/ETF Income Laboratory along with leader Stanford Chemist, and Juan de la Hoz and Dividend Seeker. They help members benefit from income and arbitrage strategies in CEFs and ETFs by providing expert-level research. The service includes: managed portfolios targeting safe 8%+ yields, actionable income and arbitrage recommendations, in-depth analysis of CEFs and ETFs, and a friendly community of over a thousand members looking for the best income ideas. These are geared towards both active and passive investors. The vast majority of their holdings are also monthly-payers, which is great for faster compounding as well as smoothing income streams. Learn More.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Stocks of oil in US Strategic Petroleum Reserve falls to lowest since 1983

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Stocks of oil in US Strategic Petroleum Reserve falls to lowest since 1983


Stocks of oil in US Strategic Petroleum Reserve falls to lowest since 1983

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Anthropic to meet White House over AI tool suspension

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Anthropic to meet White House over AI tool suspension

The sudden meeting was called after Anthropic had to block users from just-released AI models.

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Mauricio Ruffy Shares Christian Faith After First-Round Knockout Victory at Historic White House UFC Event

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Former U.S. President Donald Trump looks on during his first post-presidency campaign rally at the Lorain County Fairgrounds in Wellington, Ohio, U.S., June 26, 2021.

Brazilian UFC lightweight contender Mauricio Ruffy delivered a stunning first-round knockout of veteran Michael Chandler at “UFC Freedom 250” on the White House South Lawn on Sunday, then used the spotlight to declare his faith in Jesus Christ and quote Scripture before a national television audience.

The 29-year-old Ruffy stopped Chandler at 4:29 of the opening round with a flurry of strikes following a spinning heel kick and uppercuts, earning a decisive victory in one of the most high-profile cards in UFC history. Immediately after the referee waved off the bout, Ruffy turned his attention from combat to his Christian testimony.

Quoting John 3:16, Ruffy said, “For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life. Jesus saved my life; he wants to save your life, too. Give your life to Jesus.”

The moment, captured live on Paramount+ during an event celebrating America’s 250th anniversary and President Donald Trump’s 80th birthday, quickly went viral as viewers reacted to the fighter’s bold public expression of faith amid the celebration.

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Victory and Proposal on Historic Stage

Ruffy’s performance against the respected veteran Chandler showcased his speed, length and finishing ability. After hurting Chandler with a spinning attack and body shots, he swarmed the former Bellator champion with punches until the stoppage. The win strengthened his case for a future title shot in the lightweight division.

Following the victory, Ruffy proposed to his longtime girlfriend Nadine inside the octagon. “A while ago, when I met my wife, Nadine, I really wanted to ask her to marry me, but I didn’t have the money,” he said. “And now, what better place to ask my wife to get married.” He then turned to her and said, “Nadine, I love you. Would you marry me since we’re right here at the White House?”

The emotional scenes unfolded under the eyes of Trump, who watched ringside alongside first lady Melania Trump and UFC CEO Dana White. The event drew more than 4,000 fans to a specially constructed arena on the South Lawn, blending combat sports with patriotic pageantry including a military flyover and national anthem performance.

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Ruffy’s Message of Faith

In a post-fight interview, Ruffy emphasized that his greatest victory was spiritual rather than athletic. On social media, he wrote in Portuguese, “Jesus completely changed my story, and He has His arms open to transform yours too. Our greatest victory is not achieved by our own strength, but when we let Him take control of everything.”

The fighter’s public declaration resonated widely, with many praising his courage to share his beliefs on such a prominent stage. Others noted the contrast between the intensity of the fight and the peaceful message that followed.

Ruffy has spoken previously about his Christian faith shaping his life and career. Sunday’s platform at the White House amplified that testimony to millions worldwide, turning a combat sports event into a moment of spiritual reflection for some viewers.

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Context of the Historic UFC Event

“UFC Freedom 250” marked the first time a major mixed martial arts event was held on the White House grounds. The card featured several American fighters, including Justin Gaethje’s upset victory in the main event. Trump and White appeared together prominently throughout the broadcast, highlighting the close relationship between the president and the UFC organization.

White described the night as a celebration of American strength and competition. Trump called the event “incredible” in a later social media post, praising the setting and the fighters.

The spectacle drew mixed reactions along partisan lines. Supporters viewed it as a unique display of patriotism and American exceptionalism, while critics questioned the appropriateness of hosting a combat sports event on the executive mansion’s lawn.

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Ruffy’s Path and Rising Profile

The Brazilian contender has steadily built his reputation in the UFC with exciting performances and a well-rounded skill set. His victory over Chandler, a durable veteran known for his toughness, boosts his standing in a stacked lightweight division and positions him as a potential future title challenger.

Beyond the octagon, Ruffy’s openness about his faith has endeared him to fans seeking athletes who use their platforms for more than athletic achievement. His post-fight actions exemplified a growing trend of athletes expressing personal beliefs publicly, whether in victory or defeat.

The proposal to Nadine added a personal and romantic element to an already memorable night, further humanizing the fighter and resonating with audiences beyond hardcore MMA fans.

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Broader Significance

Ruffy’s moment at the White House UFC event highlights the intersection of sports, faith and politics in contemporary American culture. As combat sports continue gaining mainstream popularity, athletes like Ruffy are using high-visibility platforms to share personal convictions, sparking conversations about religion’s role in public life.

For the UFC, the event reinforced its cultural influence and ability to stage groundbreaking spectacles. The organization’s partnership with the administration for this card generated significant attention and discussion, regardless of political perspectives.

The night also celebrated American athletic achievement, with several U.S. fighters securing victories. Gaethje’s main event upset and other strong performances contributed to a patriotic atmosphere that aligned with the event’s “Freedom 250” branding.

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Looking Forward

Ruffy’s performance and message are likely to boost his profile heading into future bouts. A potential title shot would provide another major platform, allowing him to continue sharing his faith while competing at the highest level.

For the UFC, the successful execution of the White House event opens possibilities for similar large-scale collaborations. The combination of elite athletic competition and national symbolism proved compelling for viewers and participants alike.

As reactions continue to unfold, Ruffy’s first-round knockout and subsequent faith declaration stand as one of the most memorable moments from a historic night on the White House lawn. His story illustrates how personal belief and professional excellence can intersect in unexpected and powerful ways.

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The Brazilian fighter’s actions reminded audiences that behind the physical demands of combat sports lie deeper motivations and convictions. Whether viewed through the lens of athletic achievement or spiritual testimony, Mauricio Ruffy’s night at the White House will be remembered as both a career highlight and a bold public expression of faith.

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US-Iran peace deal: Is it enough to end the 2-year drought for Nifty bulls, bring FIIs back?

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US-Iran peace deal: Is it enough to end the 2-year drought for Nifty bulls, bring FIIs back?
A sudden breakthrough in West Asia is poised to break a gruelling, two-year stagnation for Indian stocks, as a US-Iran peace framework triggers a collapse in crude oil prices, a dramatic rally in the rupee, and a long-awaited capitulation by FII short-sellers.

Brent crude plummeted over 4% to $84 a barrel on Monday, following announcements by US and Iranian officials that they have agreed on a framework to end their war, halt the US blockade of Iranian ports, and reopen the critical Strait of Hormuz. The geopolitical breakthrough rippled instantly through Indian financial assets. The benchmark BSE Sensex surged nearly 1,300 points to an intraday high of 76,821, while the NSE Nifty 50 reclaimed the psychologically crucial 24,000 mark.

For Nifty bulls, the stakes could not be higher: the index remains down over 9% from its peak, leaving investors with virtually no returns over the last two years.

Also Read |
Rs 8L cr richer! Sensex zooms 1,100 pts, Nifty tops 24K. US-Iran truce among 5 drivers behind bull run

The Macro Relief Valve

The deal, reportedly slated for an official signing ceremony in Switzerland on Friday, according to Pakistani Prime Minister Shehbaz Sharif, addresses the twin macro anxieties that have haunted Indian markets: punitive energy costs and relentless foreign institutional investor (FII) outflows.The immediate dividend was visible in the currency and money markets. The Indian rupee strengthened about 0.7% to 94.4625 per dollar on Monday, marking its highest level in seven weeks.

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“With the dawn of peace in West Asia, hopefully, and the consequent sharp correction in Brent crude to below $84 in early trade, the prospects for the Indian economy and stock market have turned for the better,” said Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. “The GDP growth rate and CPI inflation projections for FY 27 can be revised in this changed scenario to 6.9% and 4.6%, respectively.”
Vijayakumar noted that the stabilising currency will alter foreign investor behaviour. “With rupee stabilising, FIIs are unlikely to continue big selling in India even though the AI trade still continues to be strong, particularly in South Korea and Taiwan.” Already, foreign institutional investors (FIIs) have begun covering shorts and creating fresh long positions in index futures.
Emkay Global’s Seshadri Sen said the news has a three-fold macro benefit for India.
“First, Brent should settle at USD75-80/bbl vs an average of USD103/bbl in Apr-May-26. This delivers a proforma benefit of 64% on the CAD. Second, it addresses supply chain bottlenecks and potential RM shortage worries across multiple sectors and averts a potential inflation shock. Third, the relief on the external account translates to improved domestic liquidity, which should help interest rate transmission. We expect a multi-asset rally: Rs93/USD, the 10-year gilt to 6.75%, and the 12M T-bill to 5.5%,” he said.

Given the number of false dawns during the ceasefire, he warned that any disruption would send oil spiking and reverse the entire thesis.

“Second, the entire region is on a knife’s edge, and flare-ups could recur even after the deal is signed. Third, the damage to oil infra is still not clear – there may be a negative surprise on timelines for supply normalization (though we think the oil market is pricing in 3-6M delays). We see low probabilities of these risks crystallizing, and are working of our base case of the Strait of Hormuz fully reopening on Friday and oil receding to $75-80,” Sen said.

The collapse in crude prices reinforces recent administrative interventions by the Reserve Bank of India. Economists have aggressively upgraded their outlook for India’s balance of payments, with most now projecting a marginal surplus for this fiscal year in a staggering reversal from prior expectations of a deficit reaching up to $70 billion.

“RBI’s recent measures have helped address pressures on India’s balance of payments, with the drop in oil prices further reinforcing these efforts,” said Gaura Sen Gupta, economist at IDFC First Bank.

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Sen Gupta expects the rupee to extend its appreciation to the 93-94 level by September, bolstered by a revival in capital inflows from the central bank’s non-resident Indian (NRI) foreign currency deposit scheme.

Also Read | Nifty’s hidden discount sale: 54% of top Indian stocks are cheaper now than in 2023. Is it time to buy?

Axis Direct’s Head of Research Rajesh Palviya said a sustained revival in FII inflows could act as a key catalyst for the next leg of the market rally, especially given India’s strong macro fundamentals and earnings visibility.

“The combination of easing geopolitical risks, softer crude prices, healthy domestic participation, and the potential return of foreign capital creates a constructive backdrop for Indian equities over the coming months,” he said.

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Sector Allocations and Tactical Playbooks

While the reopening of the Strait of Hormuz could take up to a month, market participants are already repositioning portfolios to capture the direct and indirect beneficiaries of cheaper energy. Technical analysts note that the market’s underlying structure has flipped.

“Technically, the undertone has turned decisively bullish,” said Rajesh Palviya, Head of Research at Axis Direct. “As long as the Nifty sustains above the 23,500 mark, the index is well placed to extend its recovery towards 23,800 initially, followed by the psychologically important 24,000 level.”

Market experts see a multi-sector rotation taking shape:

  • Banking & Financials (BFSI): Regarded as the prime beneficiary of cooling inflation and attractive valuations. “Banks are likely to lead the rally,” Vijayakumar said, adding that large short positions in leading private lenders will trigger further short covering. Pankaj Pandey, Head of Research at ICICIdirect.com, agreed that “BFSI is very attractively placed from a valuation perspective and also with the growth inching up.”
  • Energy & Defence: Strategy shifts are expected to outlast the immediate peace deal. “This crisis has clearly taught us that energy security is of prime importance, so that is one sector… going to be the biggest focus area” for the next 5 to 10 years, Pandey noted. He also flagged defense as a 40 lakh crore INR opportunity, given how resilient smaller nations like Iran proved against major powers.
  • Automobiles: Car manufacturers have previously withheld necessary price hikes to sustain demand momentum, taking a hit on earnings; they are now positioned as clear crude-decline beneficiaries.
  • Information Technology: Expected to lag. Pandey warned that IT “might take some time to play out” as a growth revival remains elusive, even though tech valuations look cheaper than metals.

A Word of Caution on Valuations

Despite the euphoric initial reaction, institutional fund managers are advising against untamed exuberance, particularly within the highly inflated broader market.

“The announcement of the US-Iran deal finally happening will prop up market initially. Focus will be on the normalisation on the ground with supply chain flowing and prices coming back to double digits,” warned Nilesh Shah, MD of Kotak Mahindra AMC. “We recommend clients to follow asset allocation ‘dharma’ and remain neutral weight to equity with overweight to mid-caps.”

Domestic retail and domestic institutional investor (DII) liquidity is expected to keep the broader market buoyant. However, valuation disconnects persist: the Nifty Midcap index trades at 29 times earnings and the Smallcap index at 33 times earnings, compared to the frontline Nifty at a more modest 20 times.

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While superior fourth-quarter earnings and improved FY27 outlooks continue to draw capital to broader equities, the focus now shifts entirely to Switzerland. Investors will spend the week monitoring whether the precise terms of Friday’s formal signing ceremony match the high expectations built into Monday’s roaring rally.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Fidelity Freedom 2035 Fund Q1 2026 Commentary

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Fidelity Freedom 2035 Fund Q1 2026 Commentary

Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses it serves. With assets under administration of $12.6 trillion, including discretionary assets of $4.9 trillion as of December 31, 2023, Fidelity focuses on meeting the unique needs of a broad and growing customer base. Privately held for 77 years, Fidelity employs more than 74,000 associates with its headquarters in Boston and a global presence spanning nine countries across North America, Europe, Asia and Australia. Note: This account is not managed or monitored by Fidelity, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Fidelity’s official channels.

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Florida sues TikTok, claiming it violates state child safety law

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Florida sues TikTok, claiming it violates state child safety law


Florida sues TikTok, claiming it violates state child safety law

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Silver stalls at key Fibonacci resistance: Live levels

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Silver stalls at key Fibonacci resistance: Live levels

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SpaceX IPO raised $10bn more than thought

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SpaceX IPO raised $10bn more than thought

In SpaceX’s case, appetite was exceptionally high. The underwriters, which included Goldman Sachs, Bank of America, and JPMorgan, exercised the option in full, purchasing an additional 83.3 million shares directly from the company to meet the huge demand.

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Micron Technology: Buy Ahead Of Earnings (Preview)

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Micron: Buy The Latest Blowout

Micron Technology: Buy Ahead Of Earnings (Preview)

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