In the week gone by, global markets witnessed a volatile trade as concerns over COVID-19, inflation fears and budget wrangling in Washington continue to weigh on markets. US economy grew at a slightly faster rate than previously reported in the second quarter thanks to increased consumer spending, exports and inventory investment. GDP expanded at a rate of 6.7% between April and June, rather than the 6.6% and 6.5% reported in earlier estimates. Goldman Sachs has cut China’s economic growth forecast for 2021 to 7.8%, from 8.2% as energy shortages and deep industrial output cuts add “significant downside pressures”. Meanwhile, Profits at China’s industrial firms grew at a weaker pace in August from a year earlier, slowing for a sixth consecutive month, as manufacturers struggled with high commodity prices, COVID- 19 and shortages in some key components. On the flip side, China’s factory activity fared better than expected in September, stabilising after a slump in August, a business survey showed, with a smaller decline in production countering an uptick in demand. The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 50.0 in September from 49.2 the month before. Japan’s factory activity grew at the slowest rate in seven months in September as overall output and new orders shrank due to the fallout from the coronavirus pandemic
Back at home, domestic market also witnessed volatile movements tracking weak global cues. India's external debt rose modestly by 2.1 percent year-on-year to $570 billion as of March-end 2021, notwithstanding the COVID-19 pandemic, according to the finance ministry. External debt-to-GDP ratio rose marginally to 21.1 percent from 20.6 percent as at end-March 2020.The Centre's fiscal deficit for April-August came in at Rs 4.7 lakh crore, or 31 percent of the full-year budget estimate, compared with 109 percent for the same period last year, official data showed on September 30. In another development, eight core industries, including coal, crude oil, and steel, posted a growth of 11.6 percent in August on a yearly basis. Meanwhile, the country's foreign exchange reserve increased by $34.1 billion during the June quarter compared to $27.9 billion in the year-ago period. It is expected that volatility will continue in next week too, as domestic investors await the outcome of RBI monetary policy meet due 8th October.
On the commodity front, CRB saw a pause in rally after five-week nonstop upside on upside in dollar index and treasury yield. Bullion counter a saw fall for the same reason, however prices revived on bearish signal from China amid increase in jobless claim. Gold and silver are expected to trade in a range of 45200-47000 and 57000- 61000 respectively. Power restrictions in China have hurt supplies of some metals in recent months, but electricity curbs recently spread to more downstream sectors, and dampened manufacturing, hurting the demand for metals. Hence we can expect a sluggish movement in base metals. Lower level buying may occur but stability at higher levels looks fragile. Heavy rains brought by cyclone Gulab damaged India's summer-sown crops such as soybeans, cotton, pulses and vegetables just before harvesting in key growing regions, which could reduce production and lift prices. RBA Interest Rate Decision, Balance of Trade and Unemployment Rate of Canada, Interest Rate Decision of New Zealand, Inflation Rate of Mexico, Non Farm Payrolls and Unemployment Rate of US are few important data and events scheduled this week, which one should watch.
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demand for petroleum products compared to previous quarter, as second wave from Mar'21 has impacted demand. Throughput during the quarter was 16.7 mt with distillate yield of 79% and fuel & losses at 9.6%.
India is the world's third-biggest oil importer and consumer and currently has five million barrels per day of refining capacity. Indian Oil Corporation controls around a third of that capacity. With the recovery in the overall demand, refining and other related operational parameters have demonstrated an even more pronounced turnaround compared to the previous year. It is focusing on optimally integrating current refining processes to yield more chemical products per barrel of oil. Thus, it is expected that the stock will see a price target of Rs.149 in 8 to 10 months’ time frame on a current P/Bvx 1.07 and FY23 (BVPS) of Rs.139.64.
to acquire local EPC company Spur Infra. Acquisition of Spur Infra is likely to help KEC diversify into adjacent areas of growth.
The company is doing well and the management believes T&D domestic, Railways and Civil segment would be the main growth driver’s. Going ahead, management expects healthy ordering from domestic as well as international market especially from African region, SAARC countries and MENA regions. Thus, it is expected that the stock will see a price target of Rs.546 in 8 to 10 months time frame on a three year average P/BVx of 3.06x and FY23 BVPS of Rs.178.55.
The stock closed at Rs 826.60 on 01st October, 2021. It made a 52-week low at Rs 452.25 on 29th October, 2020 and a 52- week high of Rs. 832.95 on 30th September, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 675.37.
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, which is bullish in nature. Apart from this, the stock has consolidated in narrow range and has given the pattern breakout along with high volumes and registered yearly highs so follow up buying may continue for coming days. Therefore, one can buy in the range of 805-815 levels for the upside target of 910-940 levels with SL below 750 levels.
The stock closed at Rs 563.95 on 01st October, 2021. It made a 52-week low of Rs 421.15 on 29th October, 2020 and a 52- week high of Rs. 666.00 on 27th May, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 554.42.
After giving healthy correction from 660 levels to 500 levels in short span of time. Then after it consolidated in narrow range of formed a “Bearish Flag” on weekly charts and negate the pattern along with high volumes. Apart from this, stock has formed an “Inverse Head and Shoulder” pattern on daily charts and has given the neckline breakout in last week and also has managed to close above the same. Therefore, one can buy in the range of 555-560 levels for the upside target of 610-630 levels with SL below 530 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
Indian markets started October series with negative impression as Nifty indices slipped back below 17550 levels on the back of profit booking. Bank Nifty also ended the week below 37500 levels taking cues from weak global markets. From the derivative front, call writers added hefty open interest at 17600 strike while put writers remained active at 17500 & 17400 strike. The Implied Volatility (IV) of calls closed at 16.84% while that for put options closed at 17.54%. The Nifty VIX for the week closed at 18.4% and is expected to remain volatile. PCR OI for the week closed at 1.46. From the technical front, Nifty has managed to take support at its 20 days exponential moving average on daily interval and also managed to close above that. For upcoming week we expect markets to remain on volatile path and likely to consolidate at higher levels before taking a next leg towards record highs. On downside 17400-17250 zone would act as a strong support area for nifty while 17650-17700 would be an immediate hurdle for next week.
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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 (Oct) traded positively last week and we expect it to trade higher towards 7700 levels, if it breaks resistance of 7500 levels while support is seen at 7075 levels. Due to Cyclone Gulab, excess rain in the key growing states may lead to concerns over crop damage. The exports have been lower and the availability is good in the physical market. In the first 4-months of FY 2021/22, exports down by 26% to 53000 tonnes Vs last year but at par with 5- year average. Jeera futures (Oct) traded more than 1% higher last week and we expect to trade positive towards 15000 with support at 14100. Jeera prices have increased on export enquiries which may pick up further in the coming months on lower supply from other producing countries like Afghanistan and Syria. However, sufficient stocks with the traders and farmers is keeping the prices in a tight range. The forecast of normal rains in Western region during Sep-Nov is going to support jeera cultivation in Gujarat. In 2021 (Jan-Jul), country exported 1.75 lakh tonnes (lt) of jeera compared to 1.67 lt last year same time. Dhaniya futures (Oct) climb to three weeks high but witnessed a sharp correction. It is expected to trade in a range 7500-8200 levels with support at 7650 levels and resistance at 8000 levels. Coriander prices declined by Rs 300-350 per quintal at major mandis across the country last week due to sluggish buying from all buyers including retailers and spice mills and increased arrivals. Exports of coriander down 10% during Apr-Jul period to 17830 tonnes Vs 19820 tonnes last year but 17.7% higher compared to 5-year average for the period. Sufficient rains in Gujarat and Rajasthan during September expected to help rabi crop in coming season.
Gold prices rose more than 2% after the dollar fell on dismal U.S. weekly jobs numbers, but recent declines driven by expectations the Federal Reserve will soon start tapering its economic support kept bullion on track for a quarterly drop. The number of Americans filing new claims for unemployment benefits increased last week, data showed on Thursday, which could raise concerns the labour market was softening. This is also leading to uncertainty about Fed tapering because they want a strong job market to announce a tapering. Gold is also “running into some renewed physical buying, with some investors looking to hedge against the economic uncertainty, rising inflation. But heightened prospects for Fed tapering, widely expected to start in November, and chances of Treasury yields continuing to gain, are expected to heap more pressure on zero-yielding gold. Reduced central bank stimulus and interest rate increases tend to push government bond yields higher, raising the opportunity cost of holding non-yielding gold. Silver rose nearly 2.5% to $22.04 per ounce, but was set for a fourth consecutive monthly fall. The dollar index hit the highest in nearly 11 months. Though the benchmark U.S. 10-year Treasury yields eased slightly, it held above 1.5%, a level last seen in June. Higher yields raise the opportunity costs of holding non-interest bearing bullion. The St. Louis Federal Reserve President James Bullard on Tuesday said high inflation may require more aggressive steps by the central bank, including two interest rate hikes in 2022. Ahead in the week, prices may trade with sideways to bearish bias where short covering may also be witnessed selling near resistance would be strategy and gold range would be 44900- 47300 and silver may trade in the range of 57000-61000.
Soybean futures (Oct) fell more than 5.5% last week and expected to trade in a range of 5100-6000 levels with resistance at 5850 levels. We see some pressure in prices as new season soybean has started reaching the mandis and bulk buyers are cautious for aggressive buying before the arrival pressure increases. Import of genetically modified soyameal and reduction in import duty of crude and refined soya oil also seen as the main reasons for this price dip. India's soybean production is estimated at 10 mt compared to 8.9 mt last year but still weather may play crucial role as peak harvesting season is nearing. RM Seed futures (Oct) down more than 1% last week and now we expect some consolidation in a range 8100 - 8800 levels with resistance at 8550 levels. The arrival of mustard has increased due to record prices. According to traders, crushing plants slowed their purchases as new arrival of soybean has started in the mandis. While, imports of edible oil increases due to the reduction in the duty put pressure on the mustard. There is also a fall in mustard oil and meal prices last week. However, lower mustard stocks may keep the prices supportive above 8100 levels. Edible oil prices traded positive last week due to gradual increase in festival demand and higher tariff value. Malaysian palm oil futures hit a record high last week after exports of the edible oil surged 33% in September. The palm oil contract on the traded up 0.3% while CBOT soybean oil also rose by 0.5%. Ref Soy oil futures (Oct) likely to trade in a range 1282- 1370 with support at 1306 while CPO futures (Oct) likely to trade with some positive bias towards 1175 with support at 1100.
Crude Oil prices traded with bullish bias and extend gains, as reports China was prepared to buy more oil and other energy supplies to meet growing demand offset price pressure from an unexpected rise in U.S. crude inventories and a strong dollar. China Premier Li Keqiang said the world's biggest crude importer and No.2 consumer will ensure its energy, power supply and will keep economic operations within a reasonable range. If China is happily paying any price for energy, this could intensify the energy crunch in Europe. British petrol stations are still seeing unprecedented demand with more than a quarter of pumps still dry as the fuel crisis cut road traffic volumes to the lowest level since the COVID-19 lockdowns ended two months ago. China's factory activity unexpectedly shrank in September due to wider curbs on electricity use and elevated input prices. In another bearish development, the U.S. dollar hit a new one-year earlier in the day, making oil more expensive for holders of other currencies. But expectations of a continued crude supply deficit helped support prices. Ahead in the week, Crude oil prices may trade with bullish bias where buying on rally near support would be strategy and short term resistance is seen near 5900 levels, support is seen near 5200. US natural gas prices surged by 34% to more than $6 per million Btu, their highest price in seven years, before retreating on the back of forecasts for warmer-than-expected weather and less demand in the next few weeks. Natural gas continues to trade with sideways to bullish trend where resistance is seen near 490 and support is seen near 375. Higher volatility is expected in Natural gas.
Cotton futures (Oct) surged more than 6% last week and touched an all-time high of 28760 levels. There are reports of production loss due to widespread rains in the cotton growing regions as the harvesting is nearing. We expect the price to trade higher toward 30000 levels, if it breaks 28760 levels. In addition, India supposedly has an emerging pink bollworm infestation in North India. Moreover, CCI on Wednesday increased auction prices by Rs 200 per candy thus Rs. 700 increased this week. Guar seed futures (Oct) was volatile last week and witnessed heavy profit booking at higher levels. It is now expected to trade in a range of 5500 – 6200 levels. Lower area and consistent export demand for the guar gum may support prices however arrival season my keep prices in range. In the current season the area under guar in Rajasthan down by about 4 lakh hac compared to last year at 21 lakh hac. This is lower area for the 4th consecutive year. Guar gum exports expected to pickup in October as crude oil prices have risen. Castor Seed (Oct) almost down 2% last week and now expected to trade in a range of 5900-6300 with good support at 6000 and resistance at 6200. The late monsoon rains in September is beneficial for castor area in Gujarat but excessive rains in some area may affect late sown castor crop in the region. SEA release castor oil export data for Jul and Aug 2021 which were lower compared to last year but for Apr-Aug period exports are higher at 3.2 lakh tonnes Vs 2.9 lt last year despite higher export prices.
Base metals may trade in narrow range with negative bias on double crisis of China’s debt-burdened Evergrande and growing power concerns in China. The trade volume will be limited as the Chinese Market is closed on National Day holiday from October 1 to October 7, 2021. A firmer dollar on the prospect of the U.S. Federal Reserve scaling back its pandemic stimulus may also put pressure on the metals. China's factory activity unexpectedly shrank in September as high raw material prices and power cuts pressured manufacturers in the world's second-largest economy. Outside China, doubts were emerging about the global recovery as central banks prepared to reduce stimulus and the U.S. government risked tipping into a funding crisis. But lower level buying cannot be denied on the back of tight inventories. Copper may trade in the range 680-715. Power supply crisis gripped in China, the largest metals consumer, are shutting factories and casting doubt on the outlook for demand. Copper production in Chile, the world’s top producer of the metal, dropped 4.6% year-on-year in August amid falling ore grades and labour strikes at key deposits, government statistics agency INE said. Zinc can move in the range of 242-262. Lead can move in the range of 175-186 levels. Glencore’s lead smelter in Germany, operating at 75% capacity since mid- August, is expected to return to full production by November, sources said. Nickel may trade in the range of 1350-1430 with negative bias as Chinese clamp down on steelmakers crimps the stainless steel market and the bulk demand. Aluminum may move in the range of 220-235 due to power crunch and structural energy restrictions linked to Beijing’s decarbonisation goals the smelter’s capacity.
COPPER MCX (OCT) contract closed at Rs. 697.80 on 30th Sep’2021. The contract made its high of Rs. 746.00 on 13th Sep’2021 and a low of Rs. 684.20 on 19th Aug’2021. The 18- day Exponential Moving Average of the commodity is currently at Rs 712.56. On the daily chart, the commodity has Relative Strength Index (14-day) value of 44.079.
One can sell near Rs. 710 for a target of Rs. 685 with the stop loss of 723.
CRUDE OIL MCX (OCT) contract closed at Rs. 5327.00 on 30th Sep’2021. The contract made its high of Rs. 5675.00 on 28th Jun’2021 and a low of Rs. 4633.00 on 20th Aug’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 5414.12. On the daily chart, the commodity has Relative Strength Index (14-day) value of 64.267.
One can buy near Rs. 5360 for a target of Rs. 5600 with the stop loss of Rs. 5240.
SOYA REFINED NCDEX (OCT) contract was closed at Rs. 1331.10 on 30th Sep’2021. The contract made its high of Rs. 1411.00 on 26th Aug’2021 and a low of Rs. 1232.00 on 02nd Jul’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 1321.46. On the daily chart, the commodity has Relative Strength Index (14-day) value of 48.561.
One can sell near Rs. 1325 for a target of Rs. 1270 with the stop loss of Rs 1353.
CRB saw a pause in rally after five-week nonstop upside on upside in dollar index and treasury yield. Bullion counter saw a fall for the same reason. Gold futures fell sharply to settle at their lowest level since the end of March. Energy counter saw very strong upside, both in natural gas and crude oil. Brent prices hit a three-year high at $80 a barrel on Tuesday, driven by recovering demand and a global energy supply crisis pushing up the use of oil and prices of fossil fuel commodities. On the supply side, Hurricane Ida disrupted production in the U.S. Gulf of Mexico, and some OPEC+ members are struggling to pump to the full capacity of their quotas. However, it saw some fall on Thursday, extending losses after official figures showed an unexpected rise in inventories in US. The recent rally in LNG prices in Europe and Asia has dramatically widened the economic incentive to switch from natural gas to oil in power generation. It hit the high of 467 on MCX. Base metals performed weak on fallout of Evergrande and rise in Joblessclaim. A growing power crisis and housing market concerns in China continue to be of concern to investors. Due to power crisis, production of metals will see a decline. Power hungry aluminum reacted on the news and closed on higher side; lead too. Copper prices fell on sluggish trade ahead of a major holiday in China also weighed on sentiment.
In spices, turmeric and jeera traded up. Due to Cyclone Gulab, excess rain in the key growing states of Turmeric may lead to concerns over crop damage. Jeera prices have increased since last week on export enquiries and which may pick up further in the coming months on lower supply from other producing countries like Afghanistan and Syria. Oil seeds and edible oil traded down; except CPO futures. New season soybean has started reaching the mandis and bulk buyers are cautious for aggressive buying before the arrival pressure increases. India's soybean production is estimated at 10 mt compared to 8.9 mt last year but still weather may play crucial role as peak harvesting season is nearing. Currently, higher tariff value and gradual increase in festive demand is supporting the prices. Cotton futures (Oct) jumped 2.5% to closed at all-time high of 28130 on reports of production loss due to widespread rains in the cotton growing regions as the harvesting is nearing. Guar performed stronger. Lower area and consistent export demand for the guar gum is supporting prices. In the current season the area under guar in Rajasthan s down by about 4 lakh hac as compared to last year at 21 lakh hac. This is lower area for the 4th consecutive year. Guar gum exports expected to pick-up in October as crude oil prices have risen.
Currently China is in the grip of a power crunch as a shortage of coal supplies, toughening emissions standards and strong demand from manufacturers and industry have pushed coal prices to record highs and triggered widespread curbs on usage. The worst-hit provinces are Heilongjiang, Jilin and Liaoning in northeast China, which have experienced “unexpected and unprecedented” power cuts, state media reported. Power rationing during peak hours was ordered in many parts of northeast China since late last week, including in cities such as Shenyang and Changchun after the region’s entire power grid was in danger of collapse.
China's focus on energy intensity and decarbonisation
China has vowed to cut energy intensity - the amount of energy consumed per unit of economic growth - by around 3% in 2021 to meet its climate goals. Provincial authorities have also stepped up the enforcement of emissions curbs in recent months after only 10 of 30 mainland regions managed to achieve their energy goals in the first half of the year.
China's focus on energy intensity and decarbonization is unlikely to abate, analysts said, ahead of climate talks in the 2021 United Nations Climate Change Conference- which will be held in November in Glasgow and where world leaders will lay out their climate agendas.
Impact of Power crisis
Power crisis has been affecting manufacturers in key industrial hubs on the eastern and southern coasts for weeks. Several key suppliers of Apple and Tesla halted production at some plants. The hurt in production in industries is dragging on the country's economic growth outlook. The power squeeze is unnerving Chinese stock markets at a time when the world's second-largest economy is already showing signs of slowing. At least 15 Chinese companies have said in exchange filings that production had been disrupted by power curbs, while more than 30 Taiwan-listed firms with China operations had stopped work to comply with the power limits.
No reprieve to commodities
Power-hungry sectors like aluminium and cement were always likely to be first in line when Chinese regions were told to redouble their efforts earlier this year to meet lower energy consumption and intensity targets. Much of China’s metal production is concentrated in regions with severe power restrictions in place, including Jiangsu, Hebei, Xinjiang and Yunnan, as soaring electricity demand outstrips supply and forces the government to take drastic action to try and contain the fallout. The steel, aluminium and cement industries have also been hard hit by the output curbs, with about 7% of aluminium production capacity suspended and 35% of national cement production affected and roughly 67% of China’s total steel capacity across 11 provinces has announced some output controls for the second half of 2021. Paper and glass could be the next industries to face supply disruptions. Producers of chemicals, dyes, furniture and soymeal have also been affected.
A risk to GDP
The power-supply shock in the world's second-biggest economy and biggest manufacturer will ripple through and impact global markets. Goldman Sachs has lowered its forecasts for China’s GDP growth for the remainder of 2021 and into 2022, describing the impact of energy constraints sweeping the country as “yet another growth shock.” China's economy is already grappling with curbs on the property and tech sectors and concerns around the future of cash-strapped real estate giant China Evergrande.
Indian Rupee continued its losing streak amid dollar outperformed across the board this week. Latest tweak by RBI for step ahead in policy normalization in coming months weigh rupee to fall below 74.00 levels. Accordingly RBI set at a cutoff of 3.99 per cent at a seven-day variable rate reverse repo auction, the highest possible cutoff at such an operation and just shy of the prevailing repo rate. Additionally the dollar index runs higher reaching five-week highs amid US Treasury yields continue to rise with the 10-year firmly above the psychological 1.50% level, and two and five year instruments at the highest in 18 months. Yields ran higher following Fed comments last week that bond purchase tapering can begin as soon as November. Going forward ahead of RBI policy on October 8th, we think the weakness in rupee will continue and may fall towards 74.50 vs dollar in the coming days. From the majors, the euro remained under pressure after ECB President Lagarde spoke at the annual European Central Bank forum this week noting that the EU needs to continue an accommodative monetary stance and as risk aversion dominates FX markets. We will remain bearish in EURINR. At the same time Sterling fell to 10-week lows as the greenback pops on risk aversion, soaring energy prices and raising US yields.
USD/INR (OCT)) contract closed at 74.4950 on 30-Sep-21. The contract made its high of 74.5500 on 30-Sep-21 and a low of 73.8300 on 27-Sep-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 73.1148.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 50.91.One can buy at 74.25 for the target of 75.25 with the stop loss of 73.75.
GBP/INR (OCT)) contract closed at 100.1350 on 30-Sep-21. The contract made its high of 101.7275 on 28-Sep-21 and a low of 99.9775 on 30-Sep-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 101.4817.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 34.44. One can sell at 100.50 for a target of 99.50 with the stop loss of 101.00.
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EUR/INR (OCT)) contract closed at 86.2700 on 30-Sep-21. The contract made its high of 87.0000 on 29-Sep-21 and a low of 86.2300 on 30-Sep-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 87.0369.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 36.71. One can sell at 86.50 for a target of 85.50 with the stop loss of 87.00.
JPY/INR (OCT)) contract closed at 66.5300 on 30-Sep-21. The contract made its high of 67.0300 on 27-Sep-21 and a low of 66.5025 on 30-Sep-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 67.1927.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 42.50. One can buy at 66.50 for a target of 67.50 with the stop loss of 66.00.
Abans Holdings, financial services arm of the Abans Group, has filed preliminary papers with capital markets regulator Sebi to mop-up funds through an IPO. The initial share-sale comprises fresh issuance of equity shares of up to 38 lakh and an offer for sale of up to 90 lakh equity shares by promoter Abhishek Bansal, according to the draft red herring prospectus (DRHP). At present, Bansal holds a 96.45 per cent stake in the company. The company is considering a pre-IPO placement of up to 2.5 lakh equity shares. If the placement is undertaken, the fresh issue size will be reduced. Proceeds from the fresh issue will be utilised towards investment in its NBFC subsidiary, Abans Finance, for financing the augmentation of its capital base to meet future capital requirements and for general corporate purposes. The company operates a diversified global financial services business, providing NBFC services, global institutional trading in equities, commodities and foreign exchange, private client stockbroking, depositary services, asset management services, investment advisory services, and wealth management services to corporates, nstitutional and high net worth individual clients. It currently has active businesses across six countries including UK, Singapore, UAE, China, Mauritius, and India. Aryaman Financial Services is the sole book-running lead manager to the issue.
The IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, and an offer for sale of up to 4.84 crore equity shares, according to the DRHP. As a part of the OFS, Anant Investments, an affiliate of private equity major Carlyle Group, will sell up to 4.33 crore equity shares and Global Health co-founder Sunil Sachdeva (jointly with Suman Sachdeva) will offload up to 51 lakh equity shares. At present, Anant Investments holds 25.67 percent stake in Global Health and Sachdeva owns 13.43 percent stake in the company. Proceeds from the fresh issue will be used to pay debt and general corporate purposes. Kotak Mahindra Capital Company, Credit Suisse Securities (India), Jefferies India and JM Financial are the book running lead managers to the IPO. Founded by Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-speciality tertiary care providers in the north and east regions of India.
Veeda Clinical Research has filed a DRHP with capital markets regulator Sebi to launch its IPO. The Clinical research organisation’s issue will consist of fresh equity shares worth up to Rs 331.60 crore and an OFS of Rs 500 crore by the promoters and existing shareholders. Investors participating in the OFS include CX Alternative Investment Fund for up to Rs 8.08 crore; Arabelle Financial Services Limited for Rs 90.19 crore; Bondway Investment Inc. for Rs 259.77 crore; Stevey International Corporation for Rs 0.04 crore and Basil Private Limited for Rs 141.93 crore. SBI Capital Markets Limited, ICICI Securities Limited, JM Financial Limited and Systematix Corporate Services Limited are the book running lead managers for the issue.
Home grown mobile maker Lava International has filed draft papers with capital markets regulator Sebi to raise funds through an IPO. The IPO comprises fresh issuance of equity shares worth Rs 500 crore and an OFS component of 4,37,27,603 equity shares, according to the DRHP. The OFS consists of sale of 1.25 crore equity shares by Hari Om Rai, up to 31.35 lakh shares by Shailendra Nath Rai, up to 78.38 lakh shares each by Sunil Bhalla and Vishal Sehgal, up to 1.13 crore shares by Unic Memory Technology and up to 9.75 lakh shares by Tupperware Kitchenware. Proceeds from the issue will be used for marketing and brand building activities, funding acquisition and other strategic initiatives and investment in material subsidiaries and for funding its working capital requirements. Lava International is a leading end-to-end focused mobile handset and mobile handset solutions company based in India, with operations in a number of countries. The company designs, manufactures, markets, distributes and service mobile handsets, tablets and other electronics accessories under its own 'LAVA' and 'XOLO' brands, and provide value added software services. It has presence in many emerging markets, such as Thailand, Sri Lanka, the Middle East, Bangladesh, Mexico, Indonesia and Nepal. Axis Capital, BOB Capital, DAM Capital and SBI Capital Markets are among the merchant bankers to issue.
Solar energy player Waaree Energies has filed draft papers for its initial public offering that comprises a fresh issue of Rs 1,350 crore and an offer for sale. The offer for sale of 40,07,500 equity shares included share sale of 13,15,000 equity shares each by Hitesh Chimanlal Doshi, Virenkumar Chimanlal Doshi & Mahavir Thermoequip Pvt Ltd. Among other selling shareholders, Samir Surendra Shah will offload 40,000 equity shares, and Nilesh Gandhi Jointly with Drasta Gandhi will sell 22,500 equity shares. Waaree Energies is the promoter of listed entity Waaree Renewable Technologies, wherein it holds 54.28 percent shareholding. The company proposed to utilise net proceeds from its fresh issue for setting up a 2 gigawatt (GW) per annum solar cell manufacturing facility (Rs 910.3 crore) and a 1 GW per annum solar PV module manufacturing facility (Rs 141.2 crore) in Degam village, Chikhli, Gujarat. Waaree Energies may consider fund raising of Rs 270 crore via pre-IPO placement. If the pre-IPO placement is completed, the fresh issue size will be reduced accordingly. It is one of the major players in the solar energy industry in India focused on PV (photo-voltaic) module manufacturing, with an aggregate installed capacity of 2 GW as of March 2021. The company currently operates three manufacturing facilities comprising four factories in India at Surat Tumb and Nandigram.
Metal recycling company CMR Green Technologies has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial share sale. The IPO comprises fresh issuance of equity shares worth Rs 300 crore and an OFS of 3,34,14,138 equity shares by promoters and investors, according to the draft red herring prospectus (DRHP). Those offering shares in the OFS include promoters — Gauri Shankar Agarwala (34.33 lakh equity shares), Kalawati Agarwal (up to 33.45 lakh equity shares) and Mohan Agarwal and Pratibha Agarwal will divest up to 30.09 lakh equity shares each, and investor Global Scrap Processors will sell up to 1.99 crore equity shares.The company may consider a pre-IPO for up to Rs 60 crore. If such placement is completed, the fresh issue size will be reduced. Proceeds from the fresh issue will be utilised towards the payment of debt and general corporate purposes. ICICI Securities, Axis Capital and JM Financial are the book running lead managers to the issue.
Leading fertilizer company Paradeep Phosphates has received Sebi's go-ahead to mop up funds through an IPO. The IPO comprises fresh issue of equity shares worth Rs 1,255 crore and an OFS of up to 12,00,35,800 shares by its existing shareholders and promoters, according to the DRHP. Under the OFS, Zuari Maroc Phosphates (ZMPPL) will offer up to 75,46,800 shares and up to 11,24,89,000 equity shares will be offered by Government of India. Paradeep Phosphates, which filed preliminary IPO papers with the regulator in August, obtained its observations on September 22, an update with the Sebi showed. In Sebi parlance, issuance of observations implies its go-ahead to float IPO. Currently, ZMPPL holds 80.45 percent and Government of India own 19.55 percent stake in the company. Proceeds of fresh issue will be used to partly finance the acquisition of the fertiliser manufacturing facility in Goa, for payment of debt and general corporate purposes. Paradeep Phosphates is primarily engaged in manufacturing, trading, distribution and sales of a variety of complex fertilizers such as di-ammonium phosphate (DAP) and NPK fertilizers. Its fertilizers are marketed under brands like 'Jai Kisaan Navratna' and 'Navratna'. Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets are the lead managers to the issue.
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Securities and Exchange Board of India has decided to introduce the concept of ‘swing pricing’ for all open-ended debt mutual fund schemes except overnight funds, gilt funds and Gilt with 10-year maturity funds. This move is aimed at discouraging large investors from sudden redemptions. The framework will be applicable from March 1, 2022.
Axis Mutual Fund has announced the launch of Axis AAA Bond Plus SDL ETF 2026 Maturity FoF. The benchmark index has a maturity date of April 30, 2026. The fund of fund is an extension to the Axis AAA Bond Plus SDL ETF - 2026 Maturity which was launched in May, 2021. According to the press release, the FoF aims to provide passive long term debt investment solution for investors with a 5-year investment horizon. The fund of fund will deploy its assets predominantly in the underlying ETF which invests across AAA corporate bonds and SDLs.
Edelweiss Asset Management has announced the launch of a target maturity index fund called Edelweiss NIFTY PSU Bond plus SDL Index Fund – 2027. The scheme will be passively managed and will invest in AAA-rated PSU Bonds as well as State Development Loans (SDL). The Edelweiss NIFTY PSU SDL Index Fund – 2027 NFO will be open for subscription between 30th September to 8th October. Earlier this year in March, Edelweiss AMC launched India’s first fixed income index fund – Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2026 - with a target maturity structure and reached an AUM of over Rs 3,000 crore in less than six months. According to the fund house, the total AUM of Target Maturity Index Funds/ETFs managed by Edelweiss AMC is almost Rs 40,000 crore as on 22nd September 2021. Earlier this year in March, Edelweiss AMC launched India’s first fixed income index fund – Edelweiss Nifty PSU Bond Plus SDL Index Fund – 2026 - with a target maturity structure and reached an AUM of over Rs 3,000 crore in less than six months. According to the fund house, the total AUM of Target Maturity Index Funds/ETFs managed by Edelweiss AMC is almost Rs 40,000 crore as on 22nd September 2021.
ICICI Prudential Mutual Fund has announced the launch of ICICI Prudential NASDAQ 100 Index Fund, an open-ended index fund replicating the NASDAQ- 100 index. The scheme provides exposure to 100 largest global non-financial companies and aims to track returns of the NASDAQ-100 Index, subject to tracking error. The Nasdaq-100 Index®is one of the world’s preeminent large-cap growth indexes and is home to some of the most innovative companies globally. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology. The index composition is reviewed on an annual basis in December. In terms of weightages; the index is largely skewed towards technology stocks (44%). The constituents of NASDAQ 100 index have grown the value of their patents by 900% since May 2007.
Mahindra Manulife Investment Management Private Limited – MMIMPL (formerly known as Mahindra Asset Management Company Private Limited) — has launched ‘Mahindra Manulife Asia Pacific REITs FOF’, an open-ended fund of fund scheme investing in Manulife Global Fund – Asia Pacific REIT Fund. The new fund offer, which opened today, will close on October 12. The scheme is suitable for investors who are looking to diversify their portfolio and build exposure to real estate markets internationally. Real estate investment trusts (REITs) may be one of the key beneficiaries amid the global search-for-yield, with potential recovery on the back of roll-out of Covid-19 vaccines and reopening of economies. Their comparatively low correlation with other assets can help enhance portfolio returns over a medium to long term period.
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