In the week gone by, the global surge in inflation has brought to an end a long period of low interest rates and forced central banks around the world to try to bring prices under control by raising borrowing costs. On Thursday, the European Central Bank ended a long-running stimulus scheme and said it would deliver next month its first interest rate rise since 2011, followed by a potentially larger move in September. The ECB raised its inflation projections once again but cut its growth outlook as the conflict in Ukraine continues to weigh on confidence, consumption and investment. At present, the euro zone economy is grappling with slowing growth and soaring inflation exacerbated by a months-long Ukraine war. Market sentiment in China has been soured by renewed restrictions in Beijing and Shanghai as new COVID-19 cases have emerged. Chinese inflation data for May came in largely in line with expectations. Whereas China's exports grew at a double-digit pace in May; the country's exports rose 16.9 percent in May year on year in dollar terms, accelerating from April's 3.9-percent increase. The International Monetary Fund expects to further cut its forecast for global economic growth in 2022 next month. Investors are bracing for the latest CPI as they look for further clues on how aggressively the Federal Reserve will ramp up interest rates.
Back at home, markets continued to grapple with volatility amid multiple headwinds including rising inflation and interest rate hikes. Higher energy prices and interest rates in developed economies have led to capital outflows. Rising inflation and the prospect of the Federal Reserve getting even more hawkish is making investors nervous. In the recent meeting, RBI has signaled more rate hikes to come in its inflation fight. RBI raised the key interest rate for a second straight month and pledged to withdraw the pandemic-era accommodation as it steps up its fight to tame prices that have been running above its target band since the beginning of the year. For months, markets have focused on how fast central banks have been moving to curb inflation. Investors now expect the Federal Reserve to raise interest rates by 50 basis points next week, especially if U.S. consumer price data confirms elevated inflation.
On the commodity markets front, the northward journey of CRB continued on fresh buying in Commodities. Commodities ignored the upside in dollar index i.e 103 mark. Energy counter is on fire amid historic low levels in strategic reserve, inventories and tight supply. Seasonal demand is putting further upward pressure on the prices. Efforts by OPEC+ oil producers to boost output are "not encouraging" to satisfy the rising demand. OPEC + is currently 2.6 million bpd short of its target. Crude is likely to trade in a range of 8800-9800 levels while natural gas may make new high in MCX. Bullion counter can trade in a range with negative bias on expectation of rise in interest rate by Fed in June. Gold can move in a slim spread of 49000-52000 levels. Base metals may get influence by partial lockdown in Beijing and can trade with negative bias. GDP, Employment Change and Unemployment Rate of UK, Inflation Rate of Germany, ZEW Economic Sentiment Index of Euro Area and Germany, PPI, Retail Sales, FOMC Economic Projection, Fed Press Conference and Fed Interest Rate Decision of US, GDP Growth Rate of New Zealand, Unemployment Rate and Employment Change of Australia, BoE Interest Rate Decision, Core Inflation Rate Euro Area etc are some important data and events scheduled this week, which will keep market participants on toes.
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.
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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 company’s strong momentum continues across key markets including India, South Africa among others and according to the management the strong execution across all markets and continued efforts on cost optimization is helping the company to drive revenue growth. In India, it has maintained market beating performance across its core therapies and in the US, it has seen continued expansion in market share for Albuterol. Moreover, its businesses in South Africa and other international markets continued the momentum driven by strong demand in the base business and rampup in new launches. Thus, it is expected that the stock will see a price target of Rs.1105 in 8 to 10 months time frame on 1 year average P/E of 29.28x and FY23 (E) earnings of Rs.37.72.
The company has a track record of over three decades and is India’s largest retail mall operator. Its robust market position is underpinned by the prime location of the assets and their steady financial performance. The fund raise/investments by GIC/CPPIB has boosted the liquidity & growth prospectus of the company. Thus, it is expected that the stock will see a price target of Rs.1324 in 8 to 10 months’ time frame on a target P/Bv of 3.30x and FY23 BVPS of Rs.401.18.
The stock closed at Rs 155.25 on 10th June, 2022. It made a 52-week low at Rs 111.95 on 26th August, 2021 and a 52- week high of Rs. 166.36 on 19th April, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 135.26
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 is forming a “Symmetrical Triangle” pattern on weekly charts which is bullish in nature. Despite the volatility across the board, stock continued to hold its level with positive bias and also managed to close above the previous week high with good volumes. Therefore, one can buy in the range of 152-154 levels for the upside target of 166-170 levels with SL below 142 levels.
The stock closed at Rs 1154.90 on 10th June, 2022. It made a 52-week low of Rs 956.75 on 18th June, 2021 and a 52-week high of Rs. 1293.25 on 17th January, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1109.45
After forming double bottom around 1020 levels, stock has rebounded sharply and trading in higher highs and higher lows on charts which is considered to be bullish. Last week, stock has given the breakout of its previous swing high and also has closed 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 1125-1135 levels for the upside target of 1250-1280 levels with SL below 1070 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
In the week gone by, Indian markets remained under pressure and closed the week in red territory on the back of weak macro and micro factors. Nifty shed more than 2% while banking nifty also closed below 35000 levels with loss of more than 2% week on week basis. From the derivative front, call writers were seen adding hefty open interest at 16300, 16400 & 16500 strikes while put writers remained on back foot and added arginal open interest at 16200 & 16000 strike. Implied volatility (IV) of calls closed at 17.50% while that for put options closed at 18.39%. The Nifty VIX for the week closed at 19.14%. PCR OI for the week closed at 1.36. From the technical front, 16000 - 15800 zone would act as strong support for Nifty while 16500-16600 zone is likely to cap any sharp upside in index. For upcoming session, we believe that markets are likely to trade on volatile path with bias likely to remain in favour of bears. However traders can expect sector specific and stock specific moves in coming 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
Last week mixed trend was witnessed in the spices counter where we observe Turmeric and Coriander seems to be recovering but jeera is still trading under pressure. The export demand for jeera is still not improving while bargain buying at lower levels keep supporting the prices for Turmeric and Coriander. Turmeric (Jul) took strong support near 8000 levels and also broke previous week highs but still facing resistance near 8300 levels. We expect it to trade sideways to lower if it sustains below its support levels. Currently, a report of sufficient stocks and good sowing progress is pressurizing the prices. The prices have corrected more than 10% in 2022 due to lower exports demand and new season arrivals. In FY 2021/22, exports were down 16.7% y/y at 1.53 lakh tons but higher by 10% compared with 5-year average. However, turmeric exports in Mar 2022 jumped higher 27.4% y/y at 15750 tonnes vs 12, 360 tonnes while for the period of Jan-Mar 2022, exports are still down by 1.15% y/y at 36,750 tonnes.
Jeera (Jul) continued to close negative for the fourth consecutive week as selling pressure continue on lack of export demand. The support is seen at 20700 levels while resistance is at 21660 levels. We expect the prices to trade sideways to lower towards 19300, if it sustains below support levels. Prices have corrected 7% in last month due to lower exports and sufficient arrivals. As per govt data, jeera exports in Mar 2022 down by 58.5% Y/Y at 14,600 tonnes compared to 35,160 tonnes while exports for FY 2021/22 was down by 27% Y/Y at 2.16 lt compared to 2.98 lt last year. Currently, prices are higher by 54% y/y on lower crop estimates. Traders expect jeera production in 2021/22 sharply lower at 5.0-6.0 mln bags (1 bag = 55 kg) from 8.0-8.5 mln bags the previous year.
Dhaniya (Jul) witnessed some recovery as it broke 11700 levels but could not sustain above it as it is facing strong resistance. We see support below 11300 levels and expected to trade negative towards 10900, if it breaks support levels. Currently, the processors and traders are buying as per their requirements as market prices are ruling higher by bout 70-71% y/y and up 24% since January due to lower crop estimates. As per govt data, coriander exports in Mar 2022 down 28.7% y/y at 4180 tonnes as compared to 5862 tonnes last year while for FY 2021/22 export volume is down by 15.2% at 48,615 tonnes Vs 57,350 tonnes last year but 9.5% higher as compared to 5-year average.
Bullion may trade with negative bias as elevated U.S. Treasury yields and a firm dollar may weigh on bullion’s appeal. Hawkish central banks, rising real rates and a stronger U.S. dollar have taken the shine off the gold market. Withdrawal of unprecedented fiscal and monetary support is also weighing on sentiment. U.S. yields are rising, increasing the opportunity cost of holding non-yielding gold, while the dollar firmed, and making gold less appealing for overseas buyers. The Fed will hike its key interest rate by 50 basis points in June and July, with rising chances of a similar move in September, according to a Reuters poll of economists who see no pause in rate rises until next year. The number of Americans filing new claims for unemployment benefits increased to the highest level in nearly five months last week, but that likely does not mark a material shift in labour market conditions, which remain extremely tight. The European Central Bank ended a long-running stimulus scheme on Thursday and said it would deliver next month its first interest rate hike since 2011, followed by a potentially larger move in September. The ECB also said that it will end net asset purchases on July 1, 2022. Rising interest rates tend to dampen gold prices. But with current high inflation, we do not believe other safe-haven investments will provide enough return than bullion. Ahead in the week, gold prices may continue to witness both side movements, and possibly range would be 49600-51600. Silver may also witness same kind of movement where it may trade in the range of 58800-63000.
Oil prices registered for a seventh weekly gain as investors weighed a tightening global market and the return of China from virus curbs. The prices may supported by expectations that tight global supply will continue with solid U.S. demand for fuels and slow increase in crude output by OPEC+. Consumption in top importer China is expected to slow rise as a new Shanghai lockdown signals a bumpy recovery. Shanghai and Beijing went back on a fresh COVID alert after parts of China's largest economic hub imposed new lockdown restriction. China's crude oil imports rose nearly 12% in May from a low base in a year earlier, although refiners were still battling high inventories with COVID-19 lockdowns and a slowing economy weighing on fuel demand last month. Meanwhile, the summer driving season in the U.S. is seeing record surges in gasoline and diesel consumption, although comparable surges in pump prices point to concerns about a sharp drop-off in demand, once peak demand season fades. The United States and other nations have engaged in a series of releases of strategic reserves, but these have had limited effect, with global crude supply rising very slowly. Ahead in the week, crude may trade in the range of 8980-9720 with positive bias. Natural gas prices continued to trade with high volatility but bullish trend may continue on record power demand in Texas this week, a smaller-than-usual storage build, rising spot gas prices, low wind power and a decline in gas production so far this month. Natural gas prices may take support near 620 and could face resistance near 730.
Base metals may trade in the range with negative bias as renewed COVID-19 restrictions in top consumer China rekindled demand worries, while a stronger dollar may also weigh on the market. Shanghai and Beijing went back on fresh COVID-19 alert after parts of China's largest economic hub imposed new lockdown restrictions and the city announced a round of mass testing for millions of residents. China's factory-gate inflation cooled in May, official data showed, depressed by weak demand for steel, aluminium and other key industrial commodities due to tight COVID-19 curbs. Chinese auto sales grew in May from April but were still down 16% year-on-year, according to the Chinese Passenger Car Association. Copper may trade in the range 755-810. China's May copper imports rose 4.4% from the same month a year earlier, data showed. A group of indigenous Peruvian communities agreed to temporarily lift a protest against MMG Ltd's Las Bambas copper mine that forced the company to halt operations for more than 50 days. Aluminum may trade in the range of 220-240. Aluminium prices are likely to remain rangebound in the near term with the tug-of-war between the longs and shorts. In china, aluminium output rose 3.6% YoY in May, indicating that the supply side pressure still exists. Zinc can trade in the range of 315-340 with negative bias due to ambiguous recovery of the demand in China. However high natural gas prices in the Europe and low LME zinc inventory may support the counter. Lead can move in the range of 178-190. Nickel may trade in the range of 2290-2470.
Last week, Cotton (Jun) prices continued to recover but still trading within the previous day range 43890 - 47200. Now it has the support at 45000 levels while resistance at 48470 levels. We expect it to trade sideways in the range of support and resistance as we mostly are witnessing prices increase due to short covering. Prices have improved last week mainly on announcement of MSP for cotton, which was raised by 6.2% y/y in 2022-23 to Rs 6,080 per quintal. Meanwhile, US weather is still a concern for cotton production as there was forecast of above average Hurricane season this year by NOAA. Currently, Cotton prices are 93% higher y/y due to lower stocks in the country amid lower production. Cotton sowing has started and according to sowing report, only 10.73 lakh ha area under cotton as on 3rd Jun compared to over 13 lakhs last year. The demand for cotton is limited from textile sector in South has taken decision to close 100% mills and stop buying of cotton. Guar seed (Jul) slipped to 3-months low last week on reports of normal monsoon by the weather department. But its prices recovered on good buying at lower levels. On weekly basis, we see support at 5725 levels and expect to trade sideways to lower towards 5500, if it sustains below the support levels. In the last one month, prices have slipped close to 14-15% but still prices are higher by about 43.5% y/y due to lower production, multi-year lower stocks and good export demand. The export of guar gum may support prices as number of operational oil rigs improving in the US. The US oil rig count is also higher at 574 up by about 215 compared to last year. Guar gum exports in Mar 22 higher by 9.4% y/y at 26,377 tonnes while exports in 2021/22 up by 39% y/y at 3.21 lt compared 2.34 lt last FY. Guargum exports down about 20% in last FY as compared to previous five-year average of 4 lt exports. Castor seed (Jun) traded within the previous week range as demand is good at the current prices. Now we see support at 7490 while resistance at 7650 levels. We expect it to trade higher towards 8000 if it breaks its resistance level. Currently, prices are on higher side as price increase by about 28% this year while prices are about 50% higher y/y due to lower production estimates. SEA estimates, India's castor seed crop in 2021-22 at16.94 lakh tonnes — lower by 62,000 tonnes from last year's estimated output of 17.56 lakh tonnes (lt). Mentha oil (Jun) opened gap down last week and took support at 1018 levels and closed below the previous week low of 1045. We see support at 1010 levels while the resistance is 1065 levels. Going forward, the prices are expected to trade lower towards 955, if it sustains below the support levels.
GOLD MCX (AUG)contract closed at Rs. 51005 on 09th Jun 2022. The contract made its high of Rs. 53904 on 18th April’2022 and a low of Rs. 49741 on 16th May’2021. The 18- day Exponential Moving Average of the commodity is currently at Rs 50939.45. On the daily chart, the commodity has Relative Strength Index (14-day) value of 48.053.
One can buy near Rs.50500 for a target of Rs. 52000 with the stop loss of 50000.
ZINC MCX (JUN)contract was closed at Rs. 325.15 on 09th Jun’2022. The contract made its high of Rs. 370.80 on 22th Apr’2022 and a low of Rs. 300.10 on 13th May’2022. The 18- day Exponential Moving Average of the commodity is currently at Rs. 329.03. On the daily chart, the commodity has Relative Strength Index (14-day) value of 45.223.
One can buy near Rs. 320 for a target of Rs. 345 with the stop loss of Rs 310.
DHANIYA NCDEX (JUN)contract closed at Rs. 11412.00 on 09th Jun’2022. The contract made its high of Rs. 12560.00 on 06th May’2022 and a low of Rs. 10932.00 on 26th May’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 11472.26. On the daily chart, the commodity has Relative Strength Index (14-day) value of 44.601.
One can buy near Rs. 11250 for a target of Rs. 11700 with the stop loss of Rs. 10950.
The northward journey of CRB continued on fresh buying in the energy counter. Commodities ignored the upside in dollar index i.e 103 mark. Crude prices were on fire and it hit the upside of 9599 on tight supply issue. Oil prices extended gains on Thursday, underpinned by robust demand in the world's top consumer United States while demand is expected to rebound in China as COVID-19 curbs across major cities are relaxed. The United States posted a record fall in strategic crude reserves even as commercial stocks rose last week, data from the Energy Information Administration (EIA) showed on Wednesday. U.S. gasoline stocks unexpectedly dropped, indicating resilience in demand for the motor fuel during peak summer despite skyhigh pump prices. Natural gas made a new high on MCX of 749.6 and quickly slipped on the news of supply side halt in US, but closed in gain. US natural gas prices plunged after police reports of an explosion at the Freeport LNG natural gas facility near Freeport, TX. The three trains at the facility liquefy about 2 billion bfc per day for export. If it were to go offline that gas would be added to US supply. According to World Bank, global growth is expected to slump from 5.7% in 2021 to 2.9% in 2022 — significantly lower than 4.1% that was anticipated in January. In base metals, copper, lead, aluminum and zinc were down on negative news of reimposition of lockdown to some part in in Beijing. Europe's primary aluminium smelters are continuing to curtail production in the face of soaring energy costs. Nickel traded with upside bias. Copper stocks in LME warehouses fell by 20,200 tonnes to 120,775 tonnes, the lowest since April 14.
Cotton was in range with some weak bias as demand for cotton is limited from textile sector in South has taken decision to close 100% mills and stop buying of cotton. Cotton sowing has started and according to sowing report, only 10.73 lakh ha area under cotton as on 3rd Jun compared to over 13 lakhs last year. Guar seed and guar gum prices gained support from the news of slow pace of monsoon. The monsoon's flow has weakened over the Arabian Sea, stalling its advance over parts of India by almost six days now. Guar gum exports in Mar 22 higher by 9.4% y/y at 26,377 tonnes while exports in 2021/22 up by 39% y/y at 3.21 lt compared 2.34 lt last FY. Castor was sideways. In spices, turmeric prices appreciated on improved buying by bulk traders amid good domestic demand. Dhaniya prices are down 6-7% in last one month due to sufficient arrivals and slowdown in demand.
After several deadly waves of Covid-19 pandemic since last two years and current Ukraine crisis, the entire world is surprised with the growth story of Indian economy and undoubtedly agriculture is now taking the centre stage of India's growth engine. Agriculture and the allied sector proved to be the most resilient to the Covid-19 shock as it registered a growth of 3.6 per cent in 2020-21 and improved to 3.9 per cent in 2021-22, driving the overall Indian economy's real GDP expansion of 9.2 per cent in 2021-22, according to the Economic Survey 2021-22. According to the estimate, the share of the agriculture and allied sector in total GVA has improved to 20.2 percent in 2020-21 and 18.8 percent in 2021-22.
Generally increasing the MSP of crops to ensure remunerative prices to the growers for their produce is every year’s phenomena before arrival of monsoon. By considering the positive impact of increased MSP, the government has increased the MSP of Kharif crops again for marketing season 2022-23, to ensure remunerative prices to the growers for their produce.
In a bid to encourage crop diversification, there were slightly higher increase in the MSP for pulses, oilseeds and coarse cereals. The increase in MSP for Kharif Crops for Marketing Season 2022-23 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 50 percent over the All-India weighted average Cost of Production, aiming at reasonably fair remuneration for the farmers. It is notable that return over MSP for bajra, tur, urad sunflower seed, soybean and groundnut is more than 50 percent over the All-India weighted average Cost of Production at 85%, 60%, 59%, 56% , 53% and 51% respectively.
The highest absolute increase in MSP over the previous year has been recommended for Sesamum (Rs 523/quintal), Moong (Rs 480/quintal), and Sunflower seed (Rs 385/quintal). The MSP of common grade variety of paddy-the main kharif crop- has been increased by Rs 100 to Rs 2,040/quintal for the 2022-23 crop year from Rs 1,940 in the previous year. The support price of 'A' grade variety of paddy has been hiked to Rs 2,060 per quintal from Rs 1,960.
Concerted efforts have been made over the last few years to realign the MSP in favour of oilseeds, pulses and coarse cereals to encourage farmers to shift larger area under these crops and adopt best technologies and farm practices, to correct demand– supply imbalance.
MSP hike of major Kharif crops during 2014-15 to 2022-23:
The move is also meant to give a boost to the government's Atmanirbhar Bharat scheme by reducing dependency on imports and increasing self-sufficiency. Increasing the prices may also lead to greater investment and production as mentioned in the Cabinet decisions.
Now, comfortable stocks amid better export demand zoomed up the export figures and attracted huge revenue. Furthermore, agricultural exports from the country is supporting the rural economy as it is the largest source of livelihood in India. Dependence on imports has reduced. Farmers' income has increased.
Indian Rupee closes in red to a historic low of 77.80 for the sixth consecutive week in a row. Although RBI is likely to defend the 78.00 in coming days along with bulk exporters selling. It is expected that any dip in the USDINR pair will be filled by oil-importer to hedge their dollar risk. However, long speculation in USDINR has been reduced in the modest term. Accordingly, USDINR may stay in a range between 77.60 - 78.20 for next week amid the FOMC meeting due next week. Meanwhile, the euro fell sharply below $1.0650 after ECB raised its inflation forecast for 2022 and committed to a dovish 25-bps rate hike in July. Additionally, the ECB hinted at a more hawkish pivot with a potential 50 bps hike in September. We will maintain a negative stance on EURUSD and possibly the pair drifting lower below 1.0550 while EURINR may drop to 82.20 in the coming days. On the flip side, the Bank of England will commit to an interest-rate hike by September at its meeting next week. GBPUSD has since pared losses slightly compared to the euro. However, GBPINR may follow a range bound move ahead of the BoE meeting next week.
USD/INR (JUN)contract closed at 77.8700 on 09-June-22. The contract made its high of 77.9675 on 07-June-22 and a low of 77.7200 on 09-June-22 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 77.6505.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 65.31.One can buy at 77.50 for the target of 78.50 with the stop loss of 77.00.
GBP/INR (JUN) contract closed at 97.6225 on 09-May-22. The contract made its high of 97.9775 on 08-June-22 and a low of 96.8300 on 08-June-22 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 97.4261.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 47.87. One can sell at 97.50 for a target of 96.50 with the stop loss of 98.00.
| 09th JUN | ECB kept rate unchanged at -0.50%, ECB will raise rates 25bps at July meeting. |
| 09th JUN | ECB takes hawkish turn to counter record-high inflation |
| 08th JUN | Euro zone Final GDP arrives at 0.6% QoQ in Q1 vs. 0.3% expected |
| 08th JUN | RBI raises repo rate by 50 bps to 4.90% |
| 08th JUN | UK growth set to be worst in G20 apart from Russia, OECD warns |
| 08th JUN | BoJ’s Kuroda forced to retract claim consumers tolerant of price rises |
| 07th JUN | Weakened Boris Johnson survives no-confidence vote |
| 07th JUN | World Bank warns of debt crisis risk as outlook worsens |
| 07th JUN | EU agrees deal to ensure fair minimum wages for workers |
EUR/INR (JUN) contract closed at 83.5525 on 09-June-22. The contract made its high of 83.7475 on 06-June-22 and a low of 83.1600 on 07-June-22 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 82.9842.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 48.27. One can sell at 83.00 for a target of 82.00 with the stop loss of 83.50.
JPY/INR (JUN) contract closed at 58.4625 on 09-June-22. The contract made its high of 59.7550 on 06- June-22 and a low of 58.0200 on 09-June-22 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 59.7724.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 28.84. One can sell at 58.75 for a target of 57.75 with the stop loss of 59.25.
The Rs.808 crore-initial public offering of Aether Industries was subscribed 6.26 times on Thursday - the final day of bidding. The speciality chemical manufacturer received bids for 58.5 million shares against 9.35 million shares on offer. The qualified institutional buyer portion was subscribed 17.57 times. The portion reserved for non-institutional investors witnessed a subscription of 2.52 times. The retail and employee categories were subscribed 1.14 times and 1.06 times, respectively. The IPO consisted of a fresh issue of shares worth Rs.627 crore, and an offer for sale (OFS) of up to 2.82 million shares. The price band of the issue was Rs.610-642 apiece. The company will use Rs.163 crore out of proceeds from its fresh share issuance to fund the proposed greenfield project in Surat. It will use Rs.137.9 crore for the repayment or prepayment of borrowings, while Rs.165 crore will be partly used for funding working capital requirements.
eMudhra shares managed to defend the issue price for most of the session on June 1 and closed with a one percent gain on the listing day despite volatility in the market. India's largest licensed certifying authority mobilised Rs 412.79 crore through its public issue last week. The price band for the offer was Rs 243-256 per share. eMudhra is the only Indian company to be recognised by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple, and Adobe. It is also the only Indian company to be accredited to Webtrust, which makes digital signature certificates directly recognised by browsers across the world, allowing them to issue digital signature certificates in many countries.
Private sector lender Tamilnad Mercantile Bank has received capital markets regulator Sebi's go ahead to mop-up funds through an initial share sale. The Initial Public Offer (IPO) comprises a fresh issue of 1,58,27,495 equity shares and an Offer For Sale (OFS) of up to 12,505 equity shares by shareholders, according to the Draft Red Herring Prospectus (DRHP). The OFS consists sale of equity shares by D Prem Palanivel, Priya Rajan, Prabhakar Mahadeo Bobde, Narasimhan Krishnamurthy, M Malliga Rani and Subramanian Venkiteshwaran Iyer. The bank, which filed its preliminary IPO papers with Sebi in September 2021, obtained its observations on May 30 this year, an update with the markets watchdog showed. Going by the draft papers, the Tuticorin-based bank proposes to utilise the net proceeds from the fresh issue towards augmenting its Tier-I capital base to meet its future capital requirements. Tamilnad Mercantile Bank is one of the oldest private sector banks in the country, with a history of almost 100 years. It offers a wide range of banking and financial services primarily to Micro, Small and Medium Enterprises (MSME), agricultural and retail customers. As of June 30, 2021, the bank has 509 branches, of which 106 branches are in rural, 247 in semiurban, 80 in urban and 76 in metropolitan centres. It has a customer base of around 4.93 million of which 70 per cent comprises customers who are associated with the bank for more than five years.
Cogent E-Services has received capital markets regulator Sebi’s go-ahead to raise funds through an Initial Public Offering (IPO). The initial share-sale comprises fresh issue of equity shares aggregating up to 150 crore and an offer for sale of up to 9.5 million equity shares by promoters, according to the draft red herring prospectus.Cogent E-Services, which filed its IPO papers with Sebi in February, obtained observations on May 23, an update with the regulator showed on Monday. Cogent is an end-to-end customer experience solutions provider.
Digital payment giant Visa and Lightbox backed PayMate India, a leading B2B payment solutions player for the Enterprise and small and medium enterprises (SME) segments, has filed a draft red herring prospectus with the Securities Exchange Board of India to raise around Rs 1500 crore via an initial public offering. The IPO comprises a fresh issue of Rs 1125 crore and an offer of sale of up to Rs 375 crore from its existing shareholders and promoters. The OFS consists of up to Rs 135 crore by its promoter Ajay Adiseshan, up to Rs 3.29 crore by Vishvanathan Subramanian, up to Rs 127.38 crore by Lightbox Ventures I, up to Rs 15.66 crore by Mayfield FVCI Ltd, up to Rs 2.74 crore by RSP India Fund LLC. Beyond Visa & Lightbox, the firm’s other investors include Recruit Strategic LLC, Mayfair 101, BCCL, Mayfield Fund, Kleiner Perkins Caufield & Byers & Sherpalo Ventures. The proceeds from the issue worth Rs 77 crore will be used for investment for expanding its business into new geographies, Rs 228 crore will be used for pursuing inorganic initiatives and Rs 689 crore will be used for placing cash as collateral with its financial institution partners to improve its margins. ICICI Securities, HSBC Securities, Capital Markets India, JM Financial, and SBI Capital Markets are the lead managers of the issue.
Nashik-based Sula Vineyards is likely to file its documents with the market regulator Securities and Exchange Board of India (Sebi) for an initial public offering soon. Sula has been backed by various private equity funds and institutional investors, including Verlinvest, Everstone Capital, Visvires, Saama Capital, and DSG Consumer Partners. Sula has over 2,000 acres of vineyards under management with most of them being on contract with farmers in Nashik, south Maharashtra, and Karnataka. Its domestic market share by value has risen from 33% in 2009 to 52% in FY20.
Integrated logistics firm JM Baxi plans to file its initial document for its Rs 2,500 crore IPO planned this month, its managing director said. The company is part of the 106-year-old JM Baxi Group, which operates container terminals, container freight stations and inland container depots. It also offers shipping agency services. The company, backed by Bain Capital, plans to use the money to fund brownfield port projects it hopes to bid for as well as company acquisitions, said Kotak. He added that Bain would take a partial exit through the share issue but would stay invested in the company. The IPO will be managed by Kotak Mahindra Capital, Axis Cap, Bank of America Securities and Credit Suisse. The company's FY22 debt is estimated to be around Rs 1,950 crore. Cash on hand is around Rs 540 crore.
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Capital markets regulator Sebi said Principal Mutual Fund (PMF) now ceases to exist as a mutual fund. This comes after Asset Management Private Limited (Principal AMC) had informed Sebi that it wanted to surrender the registration granted to PMF by the regulator. Following this, Sebi accepted the request for surrender of certificate of registration of PMF. "Consequently, PMF ceases to exist as a mutual fund with effect from June 2, 2022,” the Securities and Exchange Board of India (Sebi) said in a statement. It further said PMF will continue to be liable for all liabilities, including monetary penalties, violations, if any, of the provisions of Sebi Act and mutual fund rules that have taken place before its surrender of certificate of registration. In January 2021, Sundaram Asset Management Company announced acquiring smaller rival Principal Asset Management for an undisclosed sum. Principal had over Rs 7,447 crore in assets under management as on December 2020, with 90 per cent of them being in equityoriented schemes.
ICICI Prudential Mutual Fund has launched ICICI Prudential Booster Systematic Investment Plan (Booster SIP), a feature where unitholders can transfer variable amounts at regular intervals, based on the Equity Valuation Index (EVI) model. According to a press release, booster SIP allows investors to invest in a disciplined manner to the source scheme and transfer a variable amount to the target scheme in the range of 0.1X-10X of base installment amount depending on EVI model at regular intervals. Through this feature, a smaller amount of the base installment is invested when equity valuation is considered expensive. Conversely, when the valuation is considered cheap, the investment will be relatively higher.
The newly-created flexi-cap category -- which requires mutual funds to invest at least 65 per cent of the corpus in equity without any restrictions on investing in large, mid or small-cap stock -- registered a net inflow of Rs 35,877 crore in 2021-22. This was the highest net inflow among the equity categories, data from the Association of Mutual Funds in India (Amfi) showed. Of the Rs 35,877 crore, flexi-cap funds saw a net inflow of Rs 2,478 crore in the three months ended June 2021, Rs 18,258 crore for the quarter ended September 2021, Rs 6,191 crore for the quarter ended December 2021 and Rs 8,950 crore for three months ended March 2022. While large-cap funds experienced a net inflow of Rs 13,569 crore for the entire 2021-22, inflow for mid-cap funds stood at Rs 16,308 crore and the same for small-cap funds was at Rs 10,145 crore.
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