In the week gone by, global stock markets gained strength as softer oil and commodity prices eased the future inflationary pressure expectations and thus less hawkish central banks. Markets across the globe looked calm after a brutal selloff against the backdrop of a surge in inflation, the Ukraine conflict and the Fed's pivot away from easy-money policy. There is an expectation that US President Joe Biden may reduce some Trump-era tariffs on $300 billion in Chinese imports. Minutes from the central bank's June policy meeting, where the Fed raised interest rates by three-quarters of a percentage point, showed a firm restatement of its intent to get prices under control. However, Fed officials acknowledged the risk of rate increases having a "larger-than-anticipated" impact on economic growth and judged that an increase of 50 or 75 basis points would likely be appropriate at the policy meeting in July. Though investors widely expect the Fed to hike rates by another 75 basis points in July, expectations of rate hike have come down considerably amid growing worries of a global economic slowdown.
Back at home, domestic markets closed in green amid positive global markets, neutral Foreign Institutional Investors (FIIs), positive Domestic Institutional Investors (DIIs), and positive sentiment. On the sectoral front, metals, PSU bank, realty, private bank, commodities, auto and financial services led the bourses. The present rally seen in the market is driven partly by expectations that with the fall in commodity prices inflation will too will decline and this may enable central banks to go a bit slow on hiking rates. India's residential real estate segment has recorded a 9-year high in terms of sales volume during the first half of 2022 (January-June). Actually signs of strong demand in the industry boosted the entire real estate basket. In another development, RBI took a slew of measures to boost foreign exchange inflows, including allowing overseas investors to buy short-term corporate debt and opening of more government securities under the fully accessible route. Market participants across the globe await June quarter earnings results to measure the impact of inflation, interest rate hikes on demand environment and profitability of companies. Besides, trend in global stock markets, the movement of rupee against the dollar, mood of the foreign investors, macroeconomic data and crude oil prices will dictate trend of the market going forward.
On the commodity market front, Commodities saw a dramatic downside on sharp upside in dollar index amid rescission fear. CRB breached the crucial level of 300, however recovered in later part of the week. Dollar Index leaped above 107, its highest since December 2002. Gold's price reaction has been rather muted on recession fear as it had already started to price in a rising probability of another sharp rate hike in July. In recent sessions, gold has succumbed to the risk-off sentiment as the dollar has benefited. It is likely to stay in a range of 49800- 51700 levels. Crude oil monthly spreads remained in wide backwardation, indicating tight supplies. Buying may emerge from lower side and it can trade in a wide range of 7300-8800; whereas natural gas may see restricted upside upto 540-560. Base metals can stay in band on mix triggers. New Yuan Loans and GDP of China, ZEW Economic Sentiment Index of Germany and Euro Area, Inflation Rate of Germany, GDP of UK, Core Inflation Rate, PPI, Retail Sales, Michigan Consumer Sentiment Prel and Inflation Rate of US, BoC Interest Rate Decision, Employment Change and Unemployment Rate of Australia, etc are some triggers scheduled this week for 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.
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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 will maintain leadership in the E&C segment in India, and is positioned to benefit from the large infrastructure spending in India. According to the management of the company, the company with its detailed 5 year Strategic Plan (Lakshya'26), has chalked out a path for pursuing profitable growth in its traditional businesses of EPC projects and manufacturing. Moreover the group would look to expand the size and scale of its IT&TS portfolio. It also has plans to invest in the new areas of green energy. Thus, it is expected that the stock will see a price target of Rs.1980 in 8 to 10 months’ time frame on 1 yr avg. P/Ex of 24.96x and FY23 EPS of Rs.79.32.
Asset quality of the bank has been resilient and demonstrates the underwriting, monitoring and collection capabilities of the Bank. Credit cost for FY22 was at a new low at 45 bps. Strong advance growth in the quarter ended June 2022 represent future growth visibility. Thus, it is expected that the stock will see a price target of Rs.113 in 8 to 10 months’ time frame on a target P/Bv of 1.15x and FY23 BVPS of Rs.97.87.
The stock closed at Rs 1957.25 on 08th July, 2022. It made a 52-week low at Rs 1690 on 24th June, 2022 and a 52-week high of Rs. 3365 on 09th September, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 2173.31
Short term and medium term bias are looking positive for the stock as it has recovered sharply from lower levels. Apart from this, it was formed a “Pennant” pattern on weekly charts and has given the falling trend line breakout of same along with high volumes and also has managed to close near week’s high which indicates buying is aggressive for the stock. Therefore, one can buy in the range of 1930-1940 levels for the upside target of 2230-2300 levels with SL below 1830 levels.
The stock closed at Rs 761.40 on 08th July, 2022. It made a 52-week low of Rs 650.20 on 7th March, 2022 and a 52-week high of Rs 889 on 07th September, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 739.15
As we can see on charts that stock is trading in higher high higher lows, bullish in nature. Stock was consolidated in narrow range of 700-750 for few weeks with positive bias and has given the breakout of its consolidation with high volumes so further upside is anticipated from the stock. 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 750-754 levels for the upside target of 820-840 levels with SL below 715 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 witnessed a smart recovery in the week gone by and Nifty spurred nearly 3% while Bank nifty outperformed and witnessed gains of more than 4.5% on weekly basis. Lower level buying in Indian markets on the back of positive cues from global front somehow boosted sentiments among investors. From the derivative front, call writers were seen unwinding their short positions held at 16000 and 16100 strike while on the other hand put writers added hefty open interest at 16200 strike and hold open interest of more than 41 lakh shares. For upcoming week, we expect that bias is likely to remain in favour of bulls as once again Bank Nifty has managed to reclaim a move above its 100 days exponential moving average on daily charts. In upcoming week, we expect that Nifty may also move towards its 100 days exponential moving average, which is placed around 16450 levels on daily charts. The Implied Volatility (IV) of calls closed at 18.04% while that for put options closed at 19.05%. The Nifty VIX for the week closed at 19.20% and is expected to remain volatile. PCR OI for the week closed at 1.26. Overall we advise traders to adapt buy on dips strategy keeping 16000 levels as strong support for Nifty.
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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
Spices counter witnessed recovery during last week on expectations of lower arrivals and persistent demand from the spices industries which was buying spices as per its requirements due to record prices this season. However, all have faced stiff resistance at higher levels. Turmeric (Aug) surged to onemonth high levels but faced stiff resistance near 8400 levels and slipped about 3% at higher levels due to selling pressure. Now the resistance is 8400 while support at 7720 levels. We expect it to trade lower towards 7400 levels. Currently, reports good sowing progress as 50-60% area is already sown in Telangana and there is steady export demand which is pressurizing the prices. The prices have corrected more than 30% from highs of 2022 due to lower exports demand. As per the latest export figures, turmeric exports in Apr 2022 is higher 3.61% y/y while for the period of Jan-Apr 2022, exports are 50,500 tn same as last year.
Jeera (Aug) climbed to 8-weeks high last week and closed in green for the third consecutive week. The prices are improving on expectation of improving domestic and exports demand. The support is seen at 21700 levels while resistance is at 22500 levels. We expect the prices to trade sideways in the range of support and resistance. The arrivals have improved in the physical market due to improving prices. Currently, prices are higher by 64% y/y on lower crop estimates and lower stocks with the traders. As per govt data, jeera exports in first 4-months of 2022 down by 46% Y/Y to 54000 as compared to 1 lakh tonnes last year.
Dhaniya (Aug) closed higher for the second consecutive week supported by lower arrivals and persistent demand from the spices industries. As per the market sources, the stocks of imported coriander are now a low the demand and prices of domestic coriander have picked up. Since the start of new season, the coriander prices have been higher on lower than expected production. Currently the prices are higher by more than 80% y/y despite lower exports. As per govt data, coriander exports for first 4 months of 2022, the export volumes are down by 23.5% at 15,100 tn Vs 19,770 tn last year but 12% higher compared to 5-year average for same period.
Bullion counter firmed as the dollar came slightly off two-decade highs, but bullion was set to post its biggest weekly drop in more than a month as the elevated greenback hit demand. The dollar edged down from 20-years highs, taking some weight off greenback priced gold. Gold prices have lost about 3.7% last week. It is likely to be its fourth straight weekly fall, and worst since mid-May. U.S equities rose with Treasury yields overnight, as investor bet on economic light at the end of the Federal Reserve’s rate hiking tunnel, while oil prices rose on supply concerns. Benchmark U.S. Treasury yields dipped, buoying gold. The number of Americans filing new claims for unemployment benefits unexpectedly rose last week and there are growing signs that demand for labour is cooling, with layoffs surging to 16-month high in June, as the Federal Reserve’s aggressive monetary policy tightening stokes recession fears. Two of the Fed’s most vocal hawks said they would support another 75 basis-point interest rate increase later this month but a downshift to a slower pace afterward, even as both downplay the risk of higher borrowing costs pushing the U.S into recession. Rising short-term interest rates and bond yields increase the opportunity cost of holding gold, which yields no interest. On the technical front, gold on Comex is getting support near $1710 break and sustain below pushes the price towards $1670. The short term resistance for the counter holds near $1770. Ahead in the week, gold prices may continue to trade with bearish bias, where it may take support near 49500 and could face resistance near 52000. Silver may trade in the range of 54000-59000 with higher volatility.
Oil plummeted over 9% amid growing fears of a global recession and lockdowns in China that could slash demand. Oil futures sank along with natural gas, gasoline and equities, which often serve as demand indicator for crude. Meanwhile, mass COVID-19 testing in China stocked fears of potential lockdowns that threaten to deepen cuts to oil consumption. Shanghai said it would begin new rounds of mass testing of its 25 million residents over a threeday period, citing an effort to trace infections linked to an outbreak at a karaoke bar. Concerns that U.S. summer driving season demand would fall off after the Fourth of July holiday also appeared to weigh on the market. If a recession does hit, and takes a significant bite out of energy demand, more wild swings to the downside could be in store. In South Korea, inflation hit a near 24-year high in June, adding to concerns about slowing economic growth and oil demand. Ahead in the week, crude oil prices continue to witness both side movements as there is no clarity with mixed fundamentals, prices likely to take support near 7600 and could face resistance near 8400 levels. Natural gas market has been negative for some time now that the United States is not going to be shipping enough LNG to supply the European Union. In June, we saw a steep reversal and gas fell from the top to $5.33, where it is now facing the 20 SMA as support on the monthly chart. Ahead in the week, prices may continue to witness selling from higher levels where it may take support near 450 and could face resistance near 530.
Base metals may trade in a range with negative bias as worries over global recession on aggressive rate hikes by major central banks to combat soaring inflation and fresh COVID-19 curbs in China would dent demand for metals. While Chinese policymakers are considering boosting stimulus, still running a zero-COVID policy are outweighing the hopes for stimulus for the top metals consumer. Bloomberg News reported that China, the biggest metals consumer, was considering $220 billion of stimulus measures. China's economy is recovering but the foundation of that recovery is not solid and more efforts are still needed, Premier Li Keqiang was quoted by state media. German industrial production rose less than expected in May, adding to a run of weak manufacturing data around the world. However short covering may provide some breather to bulls as base metals registered the fifth straight weekly loss on fears of intensified world recession. Copper may trade in the range 630- 690. Chile's state-owned Codelco, the world's largest copper producer, will begin construction on a long-delayed $1 billion desalination plant this year to supply its largest operations in northern Chile. Chile's total copper production fell 2.55% in May to reach 478,800 tonnes, government body Cochilco said. Aluminum may trade in the range of 200-218 levels. Aluminium Prices under mounting pressure as approaching off-Season in China suppresses tepid consumption recovery. Zinc can trade in the range of 265-290 levels. Lead can move in the range of 168-178 levels. The premium of cash LME lead over the three months contract rose to $21.25 a tonne, the strongest since May 20, indicating near-term tightness in inventories.
Cotton (Jul) is now trading in a low range on weak fundamentals. However some support was seen due to weather concerns in US and pest attack in early sown cotton crop in Punjab. We see support at 39820 and resistance near 43800 levels. We expect it to trade sideways to lower towards 40000 levels. Prices have slipped about 15% in last one months as demand for cotton is limited from textile sector. In the domestic market, government extends exemptions on all customs duty on raw cotton imports till 31-Oct-22. Earlier it was till 30-Sep-22. It is expected to increase in imports due to steep fall in International markets. As per data released by Govt, cotton area in ongoing kharif season is higher by 3.8% y/y at 64.1 lakh ha Vs 61.70. as on 1st Jul.
Guar seed (Aug) continued to trade under pressure but suddenly rebound on Friday due to lower level buying. Prices are still under pressure due to good sowing reports from Rajasthan following above normal rains. Prices have already tank more than 23% since reports of normal monsoon by the weather department. We expect it to trade sideways to higher towards 5400, if it sustains above 5150 levels mainly on expectation of bargain buying. Guar area in Rajasthan is higher by 175% y/y at 9.63 lakh ha as on 6th Jul. currently, prices are higher by about 27% y/y due to lower production, multi-year lower stocks and good export demand. Good exports numbers may support prices in coming weeks. Guar gum exports during Jan-Apr 2022 are up by 22% y/y at 79,650 tonnes compared 65275 tonnes last FY.
Castor seed (Aug) traded within the previous week range. It took support 7300 levels and traded towards 7500 due to good demand and slow sowing progress. It is expected to be positive in coming week due to persistent export demand. We expect it to trade higher towards 7700, if it sustains above 7350 levels. Currently, prices are about 42% higher y/y due to good export demand and lower carry-over stocks. We witnessed slow start to castor seed as Gujarat kharif area as on 4th-Jul under castor is 491 ha Vs 3606 ha last year as per data released by the state agriculture dept. Despite higher export prices, the demand for Castor oil and meal exports are higher in the first 5 months of 2022 by about 18% and 3% respectively.
Mentha oil (Jul) broke the previous week high but faced resistance near 1032 levels. We see support at 998 levels. Going forward, the prices are expected to trade higher towards 1060 levels if it sustains above the resistance levels. However, it may slip further towards 980, if it sustains below the support levels.
NATURAL GAS MCX (JUL)contract closed at Rs. 438.70 on 07th Jul 2022. The contract made its high of Rs. 749.10 on 08th Jun’2022 and a low of Rs. 425.00 on 05th Jul’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 513.03. On the daily chart, the commodity has Relative Strength Index (14-day) value of 42.661.
One can sell near Rs. 500 for a target of Rs. 440 with the stop loss of 530.
COPPER MCX (JUL)contract was closed at Rs. 645.15 on 07th Jul’2022. The contract made its high of Rs. 813.90 on 03rd Jun’2022 and a low of Rs. 630.55 on 07th Jul’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 751.96. On the daily chart, the commodity has Relative Strength Index (14-day) value of 28.467.
One can buy near Rs. 655 for a target of Rs. 685 with the stop loss of Rs 640.
CASTOR SEED NCDEX (AUG)contract closed at Rs. 7428.00 on 07th Jul’2022. The contract made its high of Rs. 7592.00 on 30th Jun’2022 and a low of Rs. 7166.00 on 20th Jun’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 7452.90. On the daily chart, the commodity has Relative Strength Index (14-day) value of 45.145.
One can buy near Rs. 7350 for a target of Rs. 7750 with the stop loss of Rs. 7150.
Commodities saw a dramatic downside on sharp upside in dollar index amid rescission fear. CRB breached the crucial level of 300, however recovered in later part of the week. Dollar Index leaped above 107, its highest since December 2002. The dollar has rallied with few stops since November last year on bets of aggressive rate hikes by Fed. Energy counter nosedived on overly pessimistic demand side fear. Natural gas fell continuously for fourth week in which it saw a sharp fall from 697 to 425, saw rebound from the low but unable to recover the weekly loss. Natural gas prices eased - but only moderately - on Wednesday after the Norwegian government intervened to end a strike by the country's oil and gas workers. On Thursday, Natural gas saw sharp rebound on low build up in inventory and closed the week in green. Oil prices have slid alongside other commodities such as metals and palm oil as central banks across the world raised interest rates over the past few months to battle inflation, fanning fears of recession and a hit to demand for commodities. Industry data on Wednesday showed that U.S. crude inventories rose by about 3.8 million barrels last week. Gold erased its previous gain on sharp upside in dollar index. On MCX, it erased its premium of last week to some extent when import duty hike news stimulated buying while international was down. Silver breached 57000 last week. The minutes released on Wednesday from the U.S. Federal Reserve’s June meeting suggested the possibility of an “even more restrictive” monetary policy to prevent long-lasting inflation. Base metals prices nosedived on recession fear. The head of the International Monetary Fund said the outlook for the global economy had "darkened significantly" since April and she could not rule out a possible global recession next year given the elevated risks. The premium for aluminium shipments to Japanese buyers for July to September was set at $148 a tonne, down 14% from the previous quarter, to reflect weak demand for automobiles and rising local inventory.
In agri, cotton witnessed some selling pressure. Prices have slipped about 18-19% from all-time highs as demand for cotton is limited from textile sector. Sowing in the country improved as monsoon rain progresses. Guar counter was in range with some pressure. The prices are under pressure as area improved significantly in Rajasthan. Castor saw pressure from higher side, despite good export numbers. On the export front, castor meal exports in May 2022 up by 49.5% y/y to 31,150 tonnes, while overall exports in first 5-months in 2022 also up by 3% at 1.57 lt vs 1.52 lt. The demand from spices industry is expected to improve while the arrivals remain steady. Jeera improved on expectation of improved exports to China and lower stocks.
Amid a flurry of the world’s geopolitical challenges, the global economy is suffering with two forces: rising inflation and declining growth. Both started gradually with Covid-19 restrictions and now intensifying due to the continued invasion of Russia on Ukraine. In both cases, supply-chain disruptions caused the prices hike globally. As a result, not only Inflation rates have risen multi times in many advanced economies over the past two years, the IMF was also forced to downward revision of global growth in 2022 at 3.6%, from 4.4% of earlier due to conflict and the sanctions on Russia. The World Bank has more pessimistic outlook. As per World Bank, global growth is expected to slump from 5.7 percent in 2021 to 2.9 percent in 2022- significantly lower than 4.1 percent that was anticipated in January.
Inflation across the world
The average global annual inflation rate in the first quarter of this year was at least twice what it was in the first quarter of 2020, as COVID-19 was beginning its deadly spread. According to the inflation statistics accumulated by Trading Economics, a website based on the inflation data released by governments, India is at the 108th position with an inflation rate of 7.04% among 172 nations. The data as of June 29, reveals that the rate of inflation was over 10% in 63 of the 172 nations and below 10% in the rest, including India. In 16 countries, first-quarter inflation was more than four times the level of two years prior. The US inflation rate has almost four times over past two years but in many countries, it is rising faster. The country where inflation has grown fastest over the past two years is Israel. It averaged 3.36% in the first quarter of this year, more than 25 times the inflation rate in the same period in 2020.
Rate hike to fight inflation
Hiking interest rate is a main tool to battle inflation. Central bankers across the world have started monetary tightening by hiking interest rate to tame inflation leads slowing down the economy. Higher borrowing rates force the consumers and businesses to hold off on making any investments, thereby cooling off demand and hopefully holding down prices. The Federal Reserve has already made three rate hikes, the last of them were 0.75 points. This was the largest increase since 1994. By the end of 2022, the rates will be between 3% and 3.5%, according to the Fed’s projections. However, Federal Reserve chair Jerome Powell last month said the US central bank was not trying to engineer a recession, but was fully committed to bringing prices under control even if doing so risked an economic downturn. The Swiss National Bank surprised the markets last month by delivering its first interest rate hike in 15 years. The Reserve Bank of Australia this week raised rates by half a point for a second month, and the Bank of Korea is increasingly expected to deliver a similar sized increase next week and some officials at the European Central Bank are suggesting jumbosized rate hikes. The Bank of Canada is set to raise its rate by a hefty 75 basis points this month and by another 50 in September.
Possibility of global recession deepens
Recently, International Monetary Fund (IMF) said the outlook for the global economy had “darkened significantly” since April and could not rule out a possible global recession next year given the elevated risks of more universal spread of inflation, more interest rate hikes, and escalating sanctions related to Russia’s war in Ukraine.
This week Rupee got supported after slew of measures announced by RBI to ease the concerns from current account deficit side. Accordingly RBI tried to bring dollars inflows through corporate funding routes by giving flexibility in overseas dollar borrowing program. However markets were not convinced with the latest move by RBI to shore-up the rupee as the reforms need long term horizon. Going forward we think the weakness in rupee will continue and rupee may slide towards 79.80 in coming days. Meanwhile dollar index got eased after hitting record high of 107.00 and is weaker versus G-10 peers as equity futures rise fueled by China’s $220B stimulus plan. However, latest Fed minutes released this week confirmed the Fed plans to use more restrictive measures to control inflation. A 0.75% hike is expected at the July meeting and the minutes paved the way for a more restrictive stance if inflation persists. On the majors Pound jumped above $ 1.20 and 95.00 vs rupee following Boris Johnson resignation as UK Prime Minister. PM Johnson’s government has been marred by scandal for the last three years and this announcement follows dozens of resignations by officials in his government. We will remain slightly positive in pound for the time being.
USD/INR (JUL)contract closed at 79.0975 on 07-July-22. The contract made its high of 79.5425 on 05-July-22 and a low of 79.0100 on 07-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 78.7229.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 72.69.One can buy at 79.00 for the target of 80.00 with the stop loss of 78.50.
GBP/INR (JUL) contract closed at 94.4500 on 07-July-22. The contract made its high of 96.1800 on 04-July-22 and a low of 92.6150 on 06-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 95.8393.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 44.86. One can sell at 95.75 for a target of 94.75 with the stop loss of 96.25.
| 08th JUL | Japan’s former PM Shinzo Abe shot on campaign trail |
| 07th JUL | RBI Governor Shaktikanta Das asks states to find out effective ways to address debt issues |
| 07th JUL | U.K. PM Johnson to resign as Party Leader, will stay on as PM until autumn |
| 07th JUL | Soaring inflation sparked ECB calls for more aggressive rate rises, minutes show |
| 06th JUL | India and UK to seal trade deal in ‘next few months’, Piyush Goyal |
| 06th JUL | Fed officials warn entrenched inflation poses ‘significant risk’ |
| 06th JUL | Bank of England’s chief economist signals willingness to step up rate rises |
| 05th JUL | Bank of England warns UK economic outlook has ‘deteriorated markedly’ |
| 05th JUL | UK May final services PMI 53.4 vs 51.8 prelim |
EUR/INR (JUL) contract closed at 80.9150 on 07-July-22. The contract made its high of 83.2000 on 04-July-22 and a low of 80.7575 on 06-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 82.2193.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 35.85. One can sell at 81.25 for a target of 80.25 with the stop loss of 81.75.
JPY/INR (JUL) contract closed at 58.5075 on 07-July-22. The contract made its high of 58.9650 on 06- July-22 and a low of 58.1325 on 05-July-22 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 58.5411.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 48.62. One can buy at 58.25 for a target of 59.25 with the stop loss of 57.75.
Corrtech International, a pipeline laying solutions provider, has received capital markets regulator Sebi's go ahead to raise funds through an Initial Public Offering (IPO). The public issue comprises fresh issuance of equity shares worth Rs 350 crore and an offer for sale of 40 lakh shares by promoters, according to the Draft Red Herring Prospectus (DRHP). Corrtech International, which filed preliminary IPO papers with Sebi in March, obtained an "observation" letter from the regulator on July 1, an update with the markets watchdog showed. In Sebi's parlance, its observation implies its approval to float an IPO. Going by the draft papers, proceeds from the fresh issue will be used for funding redemption of debentures, payment of debt, financing the capital expenditure for purchase of new equipment, infusion of equity into subsidiary company, funding incremental working capital requirements of the company and general corporate purposes. Corrtech International is one of the leading focused providers of pipeline laying solutions, including hydrocarbon pipeline laying works in India. It is also engaged in providing EPC (Engineering, Procurement and Construction) solutions towards process facilities for material and feed handling in oil and gas refineries and petrochemical complexes. Equirus Capital is the sole book running lead manager to the issue.
Healthvista India Limited has filed preliminary papers with markets regulator SEBI to raise about Rs 1,000 crore through an initial public offering. The company is an out-of-hospital healthcare provider with brand Portea. The IPO (Initial Public Offering) comprises fresh issue of equity shares aggregating up to Rs 200 crore and an Offer For sale (OFS) of up to 56,252,644 shares by selling shareholders, according to the Draft Red Herring Prospectus (DRHP). Under the OFS, Accel Growth III Holdings (Mauritius) Limited; Accel India III (Mauritius) Limited, Ventureast Life Fund III LLC Limited, MEMG CDC Ventures; Qualcomm Asia Pacific Pte Ltd, Accel India V (Mauritius) and Sabre Partners Trust will offload shares. SBI Capital Markets, IIFL Securities and JM Financial are the book running Lead managers to the issue. The equity shares of the company are proposed to be listed on BSE and NSE.
Packaging solutions provider Mitsu Chem Plast has filed preliminary papers with capital markets regulator Sebi to raise Rs 125 crore through an Initial Public Offering (IPO). The IPO is entirely a fresh issue of "equity shares aggregating up to Rs 12,500 lakh," according to the Draft Red Herring Prospectus (DRHP). Proceeds from the issue will be used to repay debt, funding the working capital requirements of the company and general corporate purposes. Mitsu Chem Plast is a packaging solutions provider engaged in the business of manufacturing polymer based molded products mainly used for industrial packaging for industries like chemicals, agrochemicals, pharmaceuticals, lubricants, food and edible oil. The company's shares will be listed on domestic stock exchanges BSE and NSE. IDBI Capital Markets & Securities Ltd is the sole book running lead manager to the issue.
Concord Enviro Systems, an environmental engineering solutions firm, has filed preliminary papers with Sebi to raise funds through an initial public offering (IPO). The proposed IPO comprises fresh issuance of equity shares worth Rs 175 crore and an offer-for-sale (OFS) of 35,69,180 equity shares by promoters and an investor, according to the draft red herring prospectus (DRHP). Those selling shares in the OFS are, promoters --Prayas Goel and Prerak Goel, promoter groups -- Namrata Goel, Nidhi Goel and Pushpa Goel-- and investor AF Holdings. Proceeds from the fresh issue will be used for investment in the company's arm Concord Enviro FZE in relation to financing the construction of an assembly unit in Sharjah International Airport Free Zone, investment in subsidiary Rochem Separation Systems (India) for funding its working capital requirements, payment of debt and general corporate purpose. Concord Enviro Systems is an integrated solutions provider for industrial waste water reuse and zero liquid discharge solutions, with an in-house position across the value chain. According to an F&S Report, the industrial water and waste water treatment solutions market was valued at Rs 6,500 crore in fiscal 2021. DAM Capital Advisors and Equirus Capital are the book running lead managers to the issue.
Pharmaceutical company Innova Captab Ltd has filed preliminary papers with the capital markets regulator Sebi to raise as much as Rs 900 crore through an Initial Public Offering (IPO). The proposed IPO comprises fresh issuance of equity shares worth Rs 400 crore and an Offer For Sale (OFS) of 96 lakh equity shares by promoters and other shareholders, according to the Draft Red Herring Prospectus (DRHP). As part of the OFS, Manoj Kumar Lohariwala, Vinay Kumar Lohariwala and Gian Parkash Aggarwal will sell 32 lakh shares each. At present, promoters -- Manoj and Vinay -- hold 39.66 per cent and 30.08 per cent stake, respectively, in the company, while Gian owns a 30.23 per cent holding in the pharma firm. The Haryana-based Innova Captab is an integrated pharmaceutical company in India with a presence across the pharmaceuticals value chain including research and development, manufacturing, drug distribution and marketing and exports. The company's business includes providing research, product development and manufacturing services to Indian pharmaceutical firms, domestic branded generics as well as international branded generics businesses. It has two manufacturing facilities in Baddi, Himachal Pradesh and a new facility is to come up in Jammu.
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WhiteOak Capital Mutual Fund has launched its first equity scheme called ‘WhiteOak Capital Flexi Cap Fund’. This is an open-ended dynamic equity scheme investing across large, mid, and small-cap stocks. The NFO opens on July 12 and closes on July 26. White Oak Capital MF is a recent entrant to the Indian Mutual Fund industry. The AMC recently acquired Yes AMC also. Aashish Somaiyaa is the CEO of WhiteOak Capital Mutual Fund. WhiteOak’s equity NFO will have a balanced portfolio comprising both cyclical and counter-cyclical sectors that aims to outperform across various market cycles. The minimum investment that can be made in the fund is Rs 500 and thereafter in multiples of Rs 1. The exit load is 1% on the NAV is only applicable if the units are redeemed within one month from the date of allotment and ‘Nil’ thereafter. The AMC employs a proprietary, cash flow based ‘Opco- Finco’ analytical and valuation framework which provides unique insights in contrast to accounting earnings based models. Prashant Khemka, the founder of WhiteOak Capital Management, was the CIO of Goldman Sachs Asset Management’s India Equity and Global Emerging Markets Equity businesses. WhiteOak Group manages over Rs 40,000 crore of assets invested in India from investors globally. In addition, the team’s focus on alpha generation .
Equity mutual fund schemes saw a 16.3 percent decline in net investor flows in June to Rs 15,497 crore as volatility in stock markets hammered market sentiment, according to monthly data from the Association of Mutual Funds in India (AMFI). Debt schemes saw net outflows to the tune of Rs 92,000 crore. This was due to a combination of quarter-end withdrawals by institutional and corporate investors for advance tax payments, and markto- market impact on debt schemes from rising interest rates. The number of new SIP accounts opened stood at 17.92 lakh. The number has been falling month-on-month from April. Venkatesh attributed this to investors taking a cautious stand because of the high volatility in the market. The SIP contribution dipped marginally over the last month to Rs 12,275 crore in June. Within the hybrid category, arbitrage funds saw net outflows of Rs 5,593 crore. According to industry experts, this is to do with shrinking spreads of the arbitrage funds. For the MF industry, the assets under management (AUM) was down by 4.2 percent, compared to previous month, at Rs 35.64 lakh crore as of June 30.
The asset base of domestic mutual fund industry witnessed an annual growth of 14 per cent to reach Rs 37.75 lakh crore in the three months ended June on sustained inflows in equity schemes by way of SIPs (Systematic Investment Plans) and lumpsum investments. Going ahead, the long term trend and acceptability of mutual funds across different investor segments will continue to strengthen taking the Assets Under Management (AUM) to new highs, Abhishek Dev, Co-Founder and CEO of Epsilon Money, said. According to Association of Mutual Funds in India (Amfi) data, the industry's average AUM rose to Rs 37.75 lakh crore in the quarter ended June 2022 from Rs 33.2 lakh crore at the end of June 2021. During the March 2022 quarter, the asset base of the industry, comprising 43 players, was at Rs 38.38 lakh crore.
LIC Mutual Fund has started the process of absorbing IDBI Mutual Fund to fulfill regulatory norms after two attempts to find a buyer for IDBI Mutual Fund failed. IDBI Bank-promoted IDBI MF had to be either sold or merged with LIC MF because, under Sebi rules, one promoter cannot have more than 10% stake in two mutual funds. Life Insurance Corp of India (LIC), the promoter of LIC MF, took a controlling stake in IDBI Bank in 2019. "As part of regulatory compliance, LIC MF proposes to takeover schemes of IDBI MF, subject to regulatory approvals," said T Ramakrishnan, MD, LIC Mutual Fund. "This proposed scheme acquisition transaction will result in merger of like-to-like schemes wherein unique schemes of IDBI MF will continue on a stand-alone basis with the acquiring entity and the merger process is underway." IDBI made two attempts to sell its mutual fund after the LIC completed the IDBI Bank takeover. In November 2019, Kerala-based non-banking finance company Muthoot Finance had signed a share purchase agreement to acquire IDBI MF for ₹215 crore. However, after almost a year of waiting, the deal fell through because the Reserve Bank of India (RBI) did not give its assent.
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