In the week gone by, global stock markets witnessed the volatile week on cautious note as markets digested mixed economic data and amid concerns over tightening Federal Reserve monetary policy. Also higher U.S. Treasury yields weighed on global tech firms and this too dent confidence of the market participants. The recent minutes of a meeting of the US Federal Reserve hinted at a faster-than-expected rise in interest rates owing to concerns about persistent inflation. Investors are now eying on the release of the closely watched non-farm payrolls figures for December, which could play a major role in the Fed's decision on when and how quickly to lift rates. There is expectation that Fed may respond more aggressively to tame stubbornly high inflation than previously anticipated, and this may prompt foreign investors to pump out liquidity from emerging markets.
Back at home, market witnessed a volatile trade tacking global factors. Growing concerns over rising covid cases in India, leading to partial restrictions on mobility, has also weighed on investor sentiment. Foreign Institutional Investors (FIIs) were the seller and Domestic Institutional Investors (DIIs) were net buyers in the Indian equity market. On another development, the Centre is close to finalizing the revised foreign direct investment (FDI) policy, which will facilitate the divestment of Life Insurance Corp. of India.Going forward, apart from the global cues and COVID news, the earnings-related updates would keep the volatility high. The tightening global monetary backdrop is a concern for Indian, whereas the improving corporate earnings scenario and the resilience of retail investors and DIIs are positive.
On the commodity front, commodities traded in green in the first week of 2022, despites rise in US Treasury Yield and hawkish comment by Fed. Dollar index recovered after previous two week fall whereas US Treasury Yield saw sharp rise in last three weeks on Fed Statement. Oil prices are on boil. It may see limited upside from the current levels on the prospect of tightening U.S. monetary policy, and on signs Chinese demand will weaken due to the worst Covid-19 outbreak since the initial flare up in Wuhan. Bullion counter saw significant fall on ride in US treasury Yield and Dollar Index. This week, gold and silver can trade in the range of 46500-48500 and 59000- 63000 levels respectively. GDP data of various countries may impact base metals prices. Inflation Rate, Retail Sales, Michigan Consumer Sentiment Prel and New Yuan Loans of China, Core Inflation Rate and Inflation Rate of US, GDP of UK, Full Year GDP Growth of Germany etc are some high importance data which will reveal the health of world major economies and will give further direction to commodities.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
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SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The bank has been consistently delivering on improving asset quality, cost efficiency, other income and productivity in the past few quarters. The Management is confident of improvement in incremental disbursement with better credit monitoring. Thus, it is expected that the stock will see a price target of Rs.251 in 8 to 10 months time frame on a target P/Bv of 0.70x and FY21 BVPS of Rs.358.64.
The business prospects of the company is expected to be aided by the Government’s continued focus on infrastructure spending as well as company’s improving presence in the agricultural equipment and construction equipment (CE) industries. A strong operating performance is expected to translate into healthy earnings for the company, thereby leading to a further strengthening of its financial performance. Thus, it is expected that the stock will see a price target of Rs.307 in 8 to 10 months’ time frame on a current P/BV of 3.99x and FY23 BVPS of Rs.76.95.
The stock closed at Rs 947.00 on 07th January, 2022. It made a 52-week low at Rs 384.30 on 25th January, 2021 and a 52- week high of Rs. 1004.00 on 14th October, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 737.31.
Short term, medium term and long term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts. Apart from this, stock has consolidated in wide range of 760-920 for 4 months and formed an “Inverted Head and Shoulder” pattern on daily charts which is bullish in nature. Moreover, stock has managed to close above the neckline breakout of pattern along with high volumes so, buying momentum may continue for coming days. Therefore, one can buy in the range of 935- 940 levels for the upside target of 1020-1040 levels with SL below 895 levels.
The stock closed at Rs 494.65 on 07th January, 2022. It made a 52-week low of Rs 146.10 on 25th March, 2021 and a 52- week high of Rs. 348.00 on 13th October, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 250.21.
After registering all time high of 348 levels, stock has witnessed a healthy correction upto 260 levels in short span of time. Thereafter, stock has started moving higher and breached its downward sloping resistance line along with high volumes and also has managed to close above the same. On the technical indicators front such as RSI and MACD are also suggesting buying for the stock. Therefore, one can buy in the range of 289-292 levels for the upside target of 315- 325 levels with SL below 273 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
On weekly basis, nifty gained more than 2% and closed in positive territory despite rise in Omicron variant cases. Last week market was volatile with gap up and gap down opening whereas the undertone was bullish. A selling pressure was witnessed around the physiological level of 18000 where call writers were active whereas on downside 17500 put writers were active with maximum open interest. In banknifty, support is placed around 37000 with highest open interest whereas on upside the resistance is around 38000 with highest open interest in call. Implied volatility (IV) of calls closed at 16.18 % while that for put options closed at 17.02. The Nifty VIX for the week closed at 17.98%. PCR OI for the week closed at 1.60. Technically, Nifty is facing hurdle around 18200 whereas the support is placed around 17500 followed by 17000. Banknifty may trade in the range of 38500 and 36500 levels with volatile movement. For upcoming week, we expect markets to trade volatile with bullish undertone. One can adopt buy on dips method for short term trading.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric futures (Apr) jumped over 10% last week and is likely to trade higher towards 11500 levels with support at 9770. Currently, prices are up by over 76% y/y on expectation of lower production due to excess rains in growing areas. Prices also rose because of robust demand for the spice from overseas markets. In the first 7-months (Apr-Oct) of FY 2021/22, exports down 23% to 89,850 tons Vs last year but higher by 6.5%, if compared with 5-year average. In view of heavy rains in the growing areas, particularly Maharashtra, crop’s yield could be lower and delayed by two to three weeks. The production could be lower in Karnataka by about 20-25% due to disease. Jeera futures (Mar) closed more than 6% higher last week on surging demand from the physical markets and is likely to trade higher towards 19500 with support at 17200. Currently prices are higher by 36% y/y on reports of drop in area and improving domestic demand. As per respective Agriculture Dept data, area under jeera in Gujarat as on 03-Jan was only 3.04 lakh ha Vs 4.64 lakh hac last year while in Rajasthan jeera is sown in 5.30 lakh hac. As per the state farm department's second advance estimate Jeera output in Gujarat, the top producer, was pegged at 236,980 tn in 2021-22, sharply lower from 399,390 tn a year ago. As per Govt. data, exports of jeera for Apr-Oct down by 17% Y/Y at 1.50 lakh tonnes compared to 1.82 lt last year. Dhaniya futures (Apr) closed 8% higher last week as reports of adverse weather conditions along with frequent rains is expected to affect production concern for the standing coriander crop. It is likely to trade higher towards 10600 with support at 9550. Output is seen lower because of a drop in acreage in key growing states as farmers shift to other crops. Currently prices are higher by 66% y/y due to lower acreage compare to normal. Area under coriander in Gujarat as on 03-Jan is pegged at 1,25,171 hac which is 145% area compared to normal area but less than last year 1,35,560 hac. As per govt. data, exports have been down 12.7% during Apr-Oct period to 28,800 tonnes Vs 33,000 tonnes last year but 8.6% higher compared to 5-year average.
Gold set for its biggest weekly drop since late-November, weighed by firmer bond yields as traders braced for sooner rate hikes by the Federal Reserve. Markets are increasingly pricing in an aggressive Fed, the whole prospect of Fed trying to control an inflation outbreak is obviously lifting yields. Traders are currently anticipating a greater than 70 per cent chance for a rate hike of at least 25 basis points at the Fed's March meeting, according to the CME FedWatch Tool, as even the most dovish of US central bankers felt the need to tighten policy. What the market has to be concerned with the end goal is how much the Fed is going to surprise going forward, if it surprises with one more rate hike that would be really negative for gold. Fed officials said the "very tight" U.S. labour market might warrant raising rates sooner than expected, as well as reducing the bank's overall asset holdings to control inflation. Some investors view gold as a hedge against higher inflation, but the metal is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion. Benchmark U.S. 10-year Treasury yields rose to their strongest level since April 2021, increasing the opportunity cost of holding gold. With the emergence of the new virus, growth is likely to take a hit so after second quarter of 2022 gold should do well. Ahead in the week prices of gold may trade in the range of 46300-48200 levels whereas on COMEX it may trade in the range of 1760-1820 levels. Silver may trade in the range of 57600-62000 levels and on COMEX it may trade in the range of 20.300-23.660 levels.
Crude oil is heading for its biggest weekly gains since mid-December, fuelled by supply worries amid escalating unrest in Kazakhstan and outages in Libya. Brent crude futures climbed to $82.56 a barrel & U.S. West Texas Intermediate (WTI) crude futures rose to $80.13 a barrel. Brent and WTI were on track for a more than 6% gain in the first week of the year, with prices at their highest since late November, as supply concerns overtook worries that the rapid spread of the Omicron coronavirus variant might hurt demand. The upward jump in oil prices mostly reflects the market jitters as unrest escalates in Kazakhstan and the political situation in Libya continues to deteriorate and sideline oil output. After days of unrest in Kazakhstan, during which the government declared a state of emergency, Russia on Thursday sent in paratroopers to quash the uprising. The protests began in Kazakhstan's oil-rich western regions after state price caps on butane and propane were removed on New Year's Day. Meanwhile OPEC+ agreed to stick to its planned increase in oil output for February because it expects the Omicron coronavirus variant to have a short-lived impact on global energy demand. Ahead in the week prices may continue to trade on higher side where the range would be 5580-6250. Natural Gas prices stuck in the wider range where both side movements are witnessed. The warmer than average weather is expected to cover most of the United States for the next 2-weeks. This scenario should weigh on natural gas demand. Ahead in the week price may witness huge volatility and both side movements can be witnessed and range would be 260-320.
Base metals may trade in the range on mixed fundamentals as industrial metals came under pressure as the dollar firmed after minutes from the U.S. Federal Reserve's meeting signalled a sooner-than-expected interest rates hike. Rising infection of covid-19 variant Omicron globally and the default of Chinese developer Shimao Group, the latest sign of distress in China's property sector, are also weighing the counter. However, stronger global equities may provide some cushion to base metals. Copper may trade in the range 728-765. The price may get support on low inventories and the prospect of higher demand from the green revolution. However, China's Yangshan copper premium for refined copper imports, a good gauge of China's import demand, slipped to $78 a tonne, its lowest since August that indicate lower demand from China. Zinc can move towards 300 with support of 285 levels. LME inventory continued to decline. China's refined zinc output in December recorded 513,300 mt, a month-on-month decrease of 6,200 mt, with the decline exceeding the expectations. Aluminum may move towards 240 with support of 225 on persisting supply concern. High power costs in Europe have underpinned prices for power-intensive metals such as aluminium and zinc, where some production has been curtailed. European power prices have hit multiple record highs over recent months and the regional energy crunch is now morphing into an aluminium smelter crisis. Lead can move in the range of 182-192 levels. Nickel may trade in the range of 1530-1590 levels. Low inventories on both the LME and the SHFE warehouses and expectations that policy easing in China and strong demand from nickel smelters supplying the electric vehicle battery industry will underpin nickel prices.
Cotton futures (Jan) closed higher for the fifth consecutive week and also scaled to all-time high of 36390 levels tracking firm trend in ICE cotton futures. It is likely to trade higher towards 38000, if sustains above 35200 with support at 34020. Currently, domestic cotton prices are high y/y 70% due to concerns over production, slow arrivals and better demand for exports. Globally, cotton prices are 45% higher y/y on firm demand and tight supplies arising out of shipping woes. Inventories at ICE monitored in depots in the US are down 99 % this year. In the current season, overall availability will be lower than last year, while consumption expected to rise because of higher demand from mills and exports. Total arrivals in India till now are 120 lakh bales while mills have bought 90 lakh bales and 10 lakh bales have been exported. Guar seed futures (Feb) recovered over 3% last week as demand also increased. It is expected to trade higher towards 6600 levels with support at 5860. Currently, prices are up around 59% y/y due to expectation of lower production, multiyear lower stocks and good export demand. Since Dec, the prices have gradually in uptrend due to increasing in the export demand. In Oct, Guar gum exports are higher by 60% y/y at 27,150 tonnes while exports in 2021/22 (Apr- Oct) are up by 46% y/y at 1.85 lakh tonnes but still not reached the pre-covid levels. Castor Seed (Feb) closed little higher last week after five consecutive weekly losses on expectation that the production in 2021/22 in Gujarat will be lower this season than it was expected earlier. Thus, it likely to trade in the range 5850-6220 levels. Gujarat agriculture department’s second advance estimate cut castor seed production by 1 lakh tonnes to 13.02 lakh tonnes compared 14 lt in the first estimate. Last year production was 13.45 lakh tonnes. The prices are higher by 34% y/y, as production of castor expected to be lowest in last three years due to lower acreage at 15.98 lakh tonnes, according to advance estimates from Farm ministry. The exports of castor oil are lower during the last three months due to higher prices. Exports during Sep-Nov down by 16% at 1.39 lakh tonnes compared to 1.65 lt last year. Similarly, castor meal exports fall by 32% during (Aug-Nov) y/y.
ALUMINIUM MCX (JAN) contract closed at Rs. 231.85 on 06th Jan 2022. The contract made its high of Rs. 235.50 on 07th Jan’2022 and a low of Rs. 210.60 on 26th Nov’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs 227.05. On the daily chart, the commodity has Relative Strength Index (14-day) value of 68.439.
One can buy near Rs. 230 for a target of Rs. 245 with the stop loss of 222.
NARURAL GAS MCX (JAN) contract was closed at Rs. 1554.60 on 06th Jan’2022. The contract made its high of Rs. 1600.00 on 24th Nov’2021 and a low of Rs. 1501.80 on 20th Dec’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 1558.36. On the daily chart, the commodity has Relative Strength Index (14-day) value of 56.763.
One can buy near Rs. 1555 for a target of Rs. 1610 with the stop loss of Rs 1527.
DHANIYA NCDEX (APR) contract closed at Rs. 10048.00 on 06th Jan’2022. The contract made its high of Rs. 10276.00 on 07th Jan’2022 and a low of Rs. 7202.00 on 08th Nov’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 9508.13. On the daily chart, the commodity has Relative Strength Index (14-day) value of 80.883.
One can buy near Rs. 9990 for a target of Rs. 10400 with the stop loss of Rs. 9780.
Commodities traded in green in the first week of 2022, despites rise in US Treasury Yield and hawkish comment by Fed. Dollar index recovered after previous two week fall whereas US Treasury Yield saw sharp rise in last three weeks on Fed Statement. Federal Reserve officials said a strengthening economy and higher inflation could lead to earlier and faster interest-rate increases than previously expected, with some policy makers also favouring starting to shrink the balance sheet soon after. Bullion counter surrendered gains on rise in both dollar index and US Treasury Yield. Gold was down, as the minutes released from the U.S. Federal Reserve meeting signalled a hawkish stance amid surging COVID-19 cases. In industrial metals, copper prices dragged down whereas zinc, lead and aluminium prices augmented further. Nickel was in a range. Aluminium prices rose to their highest in more than two months as expectations of large deficits were reinforced by high power prices, particularly in Europe, and sliding stocks. Stocks of aluminium in LME approved warehouses at 926,800 tonnes have dropped more than 50% since the middle of March. In energy counter, crude kept on boiling whereas natural gas prices bounced from the low on harsh winter. Oil climbed amid skepticism about whether OPEC and its allies can successfully raise output as much as they intend. OPEC+ on Tuesday stuck to its plan to add 400,000 barrels a day next month after it cut estimates for a surplus in the first quarter. U.S. crude stockpiles fell 2.14 million barrels last to last week, according to Energy Information Administration report on Wednesday. Inventories dropped for a sixth straight week. The weather is expected to remain warmer than normal on the West Coast and cooler than normal in the mid-West and East Coast over the next two weeks. Overall it supported Natural gas prices to recover from the low.
Cotton made all time high of 36390, but saw profit booking from higher side later on; overall it closed in green territory. Kapas and cotton oil seeds had the same trading pattern. Current cotton prices are high 64% y/y due to concerns over production, slow arrivals and better domestic and exports demand. The 11% import duty on cotton is also a reason for higher cotton prices in the country. Castor was marginally down from higher side. Production of castor expected to be lowest in last three years due to lower acreage at 15.98 lakh tonnes, according to advance estimates from Farm ministry. It was a good week for spices, in which all saw strong gains. Turmeric reached 6 years high as domestic and export demand expected to improve as new season crop arrived in market. Guar was in a range; saw some fall from higher side. Dhaniya crossed 9300, and closed up due to improved physical demand.
Since the beginning of this season on 1st October 2021, cotton prices soared across the country, bringing tremendous profits to producers as it gavea cheerful farewell to 2021. Cotton known as white gold has become a ray of hope and symbol of good fortune for the farmers. But on other side, high cotton prices this season has become a subject of concern to the domestic textile industry as the units are facing not only spike in raw material prices but also shortage in availability. The average price of cotton was ₹37,000 a candy (355 kg) in September 2020 and it rose to ₹60,000 in October 2021, when the new cotton season started. On January 3, 2022, the price skyrocketed to a record of over ₹71,000 a candy. Indian cotton prices are now ruling at a premium to global rates, particularly Intercontinental Exchange (ICE) cotton futures in New York. ICE New York Cotton March futures are currently quoting at 113.67 US cents a pound (₹68,500 a candy). On the Multi Commodity Exchange, cotton for January delivery was quoted around ₹35,700 a bale of 170 kg (₹75000 a candy).
Cotton Supply-demand
CAI has estimated cotton crop for the entire cotton season 2021-22 beginning from 1st October 2021 at 360.13 lakh bales of 170 kgs. Each and opening Stock of 75 lakh bales of 170 kgs. each at the beginning of the season on 1st October 2021.
Why cotton prices skyrocketing
The Indian rupee broadly remained range against the dollar this week despite U.S. Federal Reserve’s latest policy meeting indicated an early interest rate lift-off to counter inflation risks. Rupee was supported by large domestic corporate borrowings this week. However escalated tension in Kazakhstan triggered oil prices to shot above $82 will weigh rupee in coming days. Technically USDINR is likely to face resistance around 74.75 while support stands at 74.04 on a weekly basis for next week. From the majors, the euro remains weak since the FOMC minutes released this week. Additionally German inflation for December came in at 5.7% which was a bit higher than the 5.6% expected but down from 6% in November. The European Central Bank has indicated a view that inflation remains transitory and the 6% in November and other countries was likely a high point. The euro sold off on the inflation data with the markets seeing the ECB holding rates low for longer. We will remain negative for EURINR next week towards 83.60-70 on spot. While we continue to maintain bullish view in GBPINR for a potential target of 101.50 on spot in coming days.
USD/INR (JAN) contract closed at 74.6200 on 06-Jan-21. The contract made its high of 74.9475 on 03-Jan-21 and a low of 74.4550 on 03-Jan-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 74.9825.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 37.00.One can buy at 74.10 for the target of 75.10 with the stop loss of 73.60.
GBP/INR (JAN) contract closed at 100.9375 on 06-Jan-21. The contract made its high of 101.1800 on 05-Jan-21 and a low of 100.5400 on 04-Jan-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 100.6950.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 53.56. One can sell at 101.25 for a target of 100.25 with the stop loss of 101.75.
| 06th JAN | UK households faced biggest income squeeze in a generation |
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| 06th JAN | Biden to blame Trump for Capitol riots in speech on anniversary of attacks |
| 06th JAN | Fed warns faster rate rises may be needed to tame soaring inflation |
| 05th JAN | Biden confronts multiple crises in pivotal year for presidency |
| 05th JAN | Chinese banks cut back traditional lending as concern over economy mounts |
| 05th JAN | Persistent inflation poses threat to Eurozone recovery, economists warn |
| 04th JAN | Rise in UK consumer credit points to economic uptick in November |
| 03rd JAN | US warns Russia of ‘decisive’ action if Ukraine invasion goes ahead |
EUR/INR (JAN) contract closed at 84.4700 on 06-Jan-21. The contract made its high of 84.7900 on 03-Jan-21 and a low of 84.2150 on 06-Jan-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 84.9050.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 34.58. One can buy at 84.00 for a target of 85.00 with the stop loss of 83.50.
JPY/INR (JAN) contract closed at 64.4825 on 06-Jan-21. The contract made its high of 64.8775 on 03-Jan-21 and a low of 64.3200 on 06-Jan-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 65.3550.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 27.90. One can sell at 64.75 for a target of 63.75 with the stop loss of 65.25.
GPT Healthcare, which runs the chain of ILS Hospitals, has received capital markets regulator Sebi's go-ahead to raise up to Rs 500 crore through an initial share sale. The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 17.5 crore and an offer for sale (OFS) of up to 2.98 crore equity shares by a promoter entity and an investor, according to the Draft Red Herring Prospectus (DRHP). The OFS consists of sale of up to 38.05 lakh equity shares by GPT Sons and up to 2.61 crore equity shares by private equity firm BanyanTree Growth Capital II LLC. The private equity firm will be fully exiting the company through the IPO. GPT Healthcare, which filed the DRHP in August, obtained its observations on December 29, 2021, an update with the Securities and Exchange Board of India (Sebi) showed on Monday.In Sebi parlance, issuance of observations letter implies its go ahead for the IPO. According to market sources, the IPO is expected to fetch between Rs 450 crore to Rs 500 crore. Proceeds from the fresh issuance of shares will be used to purchase medical equipment and for general corporate purposes. At present, GPT Sons holds 67.34 percent stake in GPT Healthcare and BanyanTree Growth Capital II, LLC owns 32.64 percent stake in the company. Kolkata-based GPT Healthcare operates a chain of mid-sized hospitals in eastern India under the 'ILS Hospitals' brand and provides integrated healthcare services, with a focus on secondary and tertiary care. As of September 30, 2021, it operated four multi-specialty hospitals with a total capacity of 556 beds.
The calendar year 2021 created history, with more IPOs in a year than in the last three years combined. Sixty-five companies raised ₹1.35 lakh crore through the IPO route, the highest in the history of the Indian capital market. On average, new listings in CY21 gave an astonishing 60% returns compared to Nifty 100 / BSE 500, where returns have been 25-30%. A combination of FOMO, TINA, Greed and Fear, and access to liquidity made investors lap up IPOs sustainably. 'IPO allotment status' and 'Grey Market Premium' appeared among Google India's ten top searches - clearly indicating heightened interest and participation from the Indian retail investors amidst the new normal.
The primary markets saw 2021 as a historic year and are contemplating 2022 on similar lines, with a long queue of companies eyeing to make their Dalal Street debut. As many as 75 companies are in the IPO pipeline, with 37 having valid observations from Sebi and the remaining 38 awaiting market regulator's go-ahead after filing their DRHP, suggests a report from Axis Capital. Even in the March quarter, 23 companies are looking to collectively raise nearly Rs 44,000 crore through initial share sales, of which a significant chunk will be garnered by technology-driven companies. LIC is the most awaited issue this year, but the company has not filed its DRHP yet and it requires ample clearances and regulatory approvals before knocking on the doors of the primary market. Even for the government itself, LIC's IPO holds paramount importance. The Centre is eyeing to raise to Rs 80,000-1,00,000 crore, a major chunk of Rs 1.75 lakh crore divestment plans, diluting its 5-10 per cent stake.
The IPO rush is far from over and the primary market will see frenetic activity in the March 2020 quarter with nearly two dozen companies are looking to collectively raise nearly Rs 44,000 crore through initial share-sales, merchant bankers said. Of the total fundraising, a large chunk will be garnered by technology-driven companies. This comes after 63 companies mopped up a record Rs 1.2 lakh crore in 2021 through initial public offerings (IPOs) even as the pandemic gloom shadowed the broader economy. Apart from these firms, PowerGrid InvIT (Infrastructure Investment Trust) mopped up Rs 7,735 crore through its IPO, while Brookfield India Real Estate Trust raised Rs 3,800 crore through REIT (Real Estate Investment Trust). The firms that are expected to raise funds through their IPOs during the March quarter include hotel aggregator OYO (Rs 8,430 crore) and supply chain company Delhivery (Rs 7,460 crore), the merchant bankers said.
Speciality chemicals company Aether Industries has filed its preliminary prospectus with markets regulator Sebi to raise Rs 1,000 crore through an initial public offering (IPO). The public issue consists of a fresh issue of equity shares aggregating to Rs 757 crore and an offer-for-sale of up to 2,751,000 equity shares, according to the draft red herring prospectus (DRHP). The company may also consider raising Rs 131 crore by issuing equity shares through a preferential offer. According to market sources, the company is expected raise Rs 1,000 crore through its IPO. Aether Industries is a speciality chemicals manufacturer in India focused on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies. It started with a research and development (R&D) unit in 2013, and began commercial production in 2017. It caters to the pharmaceutical, agrochemical, material science, electronic chemical, high performance photography and oil and gas industry segments. The company's operating revenue grew to Rs 450 crore in FY21, from Rs 302 crore in FY20, and its net profit climbed to Rs 71 crore in FY 21, from Rs 40 crore in FY20.
The Securities and Exchange Board of India on Tuesday approved several new measures to further reform the initial public offering market in the country. The regulators’ board approved mandatory disclosure by companies of their intended acquisition target in case where funds are raised from public for the purpose of such acquisitions. The rule comes in the light of several new-age technology companies who in their draft red herring prospectus have mentioned the use of fresh funds for acquisition purpose without giving any further details. The regulator said that if a company chooses not to disclose its intended acquisition targets even as it aims to use the funds for inorganic growth, “the amount for such objectives and amount for general corporate purposes shall not exceed 35 per cent of the total amount being raised”. Further, the regulator has placed new limits on the amount of shares existing shareholders of a company without a track record intending to IPO can sell under offer for sale. SEBI said investors with more than 20 per cent stake in the company before the IPO will only be able to sell half of their shares in the OFS.
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Aditya Birla Sun Life Mutual Fund announced the launch of Silver ETF and Silver ETF Fund of Fund (FoF). The new fund offer (NFO) of both the schemes will open on 13 January and close on 27 January. The minimum investment required during the NFO of Silver ETF is Rs 500; for Silver ETF Fund of Fund, the minimum investment amount required during NFO is Rs 100. The fund house said its purpose of launching the FoF along with the ETF is that those who don't have a demat account can also participate in this asset class through the FoF. The ETF would track physical silver and the performance of the scheme will be benchmarked against the price of silver in rupee.
Nippon India Mutual Fund (NIMF) announced the launch of Nippon India Silver ETF, investing in physical silver and silver-related instruments. It also announced the launch of Nippon India Silver ETF Fund of Fund (FOF) which will invest in units of Nippon India Silver ETF. The minimum investment amount required during the NFO of Nippon India Silver ETF is Rs 1,000 and in multiples of Rs 1 thereafter; for Nippon India Silver ETF Fund of Fund, the minimum investment amount required during NFO is Rs 100 and in multiples of Rs 1 thereafter. The ETF would invest in physical silver and silverrelated instruments and the performance of the scheme shall be benchmarked against the domestic price of silver (based on LBMA Silver daily spotfixing price). Physical silver will be of 99.9 percent purity (999 parts per thousand) conforming to London Bullion Market Association (LBMA) Good Delivery Standards, NAM India said.
Asset management company ICICI Prudential Mutual Fund has announced the launch of the country's first silver ETF that will invest in physical silver and silver-related instruments. The new fund offer (NFO) will open for subscription on January 5 and conclude on January 19, documents showed. The ICICI Prudential Silver ETF is an open ended scheme that will track the domestic prices of silver. The scheme will invest its proceeds in physical silver and silver-related instruments. The investment objective of the scheme is to generate returns that are in line with the performance of physical silver in domestic prices as derived from the LBMA (London Bullion Market Association) AM fixing prices.
SBI Mutual Fund launched a CPSE Bond Plus SDL index fund, an open-ended targeted maturity index fund investing in the constituents of the Nifty CPSE Bond Plus SDL Sep 2026 index. The new fund, which tracks the state development loans (SDL) September 2026 50:50, opened on Monday and closes on January 17, the AMC said in a statement without sharing how much it seeks to collect during the NFO phase. The scheme seeks to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. The scheme will invest 95- 100 per cent in securities covered by Nifty CPSE Bond Plus SDL September 2026 50:50 index. The remaining five per cent in G-secs maturing on or before September 2026, money market instruments including triparty repo and units of liquid mutual funds, it said.
Kotak Mutual Fund launched an Exchange Traded Fund (ETF) named Kotak Midcap 50 ETF, an open-ended scheme that will track the Nifty Midcap 50 Index. The new fund is benchmarked against the Nifty Midcap 50 Index TRI. The new fund offer (NFO) of the scheme is open for subscription from today and will close on January 20. Investors can invest a minimum amount of Rs 5,000 during the NFO period. With the economy on the mend over the past one year, many mid cap firms have improved their performance during this period and are expected to deliver better returns going ahead, which would augur well for investors in the medium to long term," said Nilesh Shah, Group President and Managing Director, Kotak Mahindra Asset Management Company. The Kotak Midcap 50 ETF will replicate the Nifty Midcap 50 Index, which includes the top 50 companies based on full market capitalisation from Nifty Midcap 150 Index with preference given to those stocks on which derivative contracts are available on the National Stock Exchange.
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