In the week gone by, by, global stock market witnessed a volatile trade after fresh signs of rising inflation, and slower consumer spending put investors on the defensive as they weigh the Federal Reserve's tightening plans. Globally, investors celebrated signs of progress in negotiations between Russia and Ukraine but it was short lived. However, Russia-Ukraine talks have been again resumed as fighting continues on Ukrainian soil. The fourth quarter of FY22 has been eventful for equity markets globally as an unexpected eruption of a war, soaring prices of commodities and a tapering of easy money policies by central banks kept investors on edge. Meanwhile, Chinese manufacturing and services production shrank in March; contracting simultaneously for the first time since the country first wrestled with COVID-19 in 2020as the fallout from the Ukraine crisis and resurgence in domestic coronavirus cases hit external and domestic demand. Globally the major headwinds for stock markets are declining liquidity, persistently high inflation in the US and an increasingly hawkish Fed.
Back at home, domestic market too witnessed volatile movements. The start to the week saw investors betting on hopes of de-escalation in the war between Russia and Ukraine. However, the optimism evaporated after Russian President Putin threatened on Thursday to cut off Europe's gas supply if payments were not made in roubles. However, if we talk about the FY 22, Indian stock markets outperformed most global peers, including the US and UK, during the financial year. The Indian market has seen a lot of buying over the past two years riding on easy liquidity, policy reforms and government thrust on developing infrastructure and making things at home rather than importing. Now foreign players who were in selling mood are again showing interest in Indian stock markets due to underlying long-term economic growth. The output in eight key core sectors rose to a four-month high in February propped up by the low base effect and strong performance in steel, cement, coal, natural gas, refinery products and electricity segments. Going forward, it is expected that the volatility will continue till the geopolitical tension between Russia and Ukraine completely subside.
On the commodity market front, CRB saw recovery from the lower levels despite some constructive peace talk. Fall in dollar index and treasury yield also made commodities attractive. Energy prices dived on positive talk amid news of strategic release from US. Global oil supply disruptions are approaching 5-6 million barrels per day (bpd), according to Reuters’ calculations, as sanctions, conflicts and infrastructure failures hit supply just as demand is recovering close to an all-time high. Bullion loses some safe haven buying appeal after Russia pledged to cut down on military operations around Kyiv and in northern Ukraine. It may witness selling from the higher side as the dollar index moved higher from a near one-month low, making gold more expensive for other currency holders. In agri, spices, guar complex and castor seed will appreciate further on improving exports while cotton may trade lower on some technical corrections from all time high levels. Investors are now looking forward to the March U.S. jobs data and cues on the monetary policy stance of the Federal Reserve going forward.
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 has entered into new technological licensing agreements over the past few years. It is believed that the entry into new JVs, organic and inorganic expansions, or tie-ups which improve company’s presence in emerging technologies and technologically advanced products, will help the company further enhance its business profile diversification. Thus, it is expected that the stock will see a price target of Rs.249 in 8 to 10 months’ time frame on a target P/Bv of 4x and FY23 BVPS of Rs.62.16.
The company has been continuously focusing on sustaining and enhancing its growth trajectory with the channels from the network including Aaj Tak, Aaj Tak HD, India Today TV and Tez. All four channels have unique offerings and are growing consistently in market share, coverage and credibility with both audiences and advertisers. Thus, it is expected that the stock will see a price target of Rs.437 in 8 to 10 months’ time frame on a 3 years average P/E of 12.13x and FY23 EPS of Rs.36.
The stock closed at Rs 785.75 on 01st April, 2022. It made a 52-week low at Rs 638.10 on 18th June, 2021 and a 52-week high of Rs. 901 on 09th June, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 712.16
Short term, medium term and long term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts. Apart from this, stock has formed an “Ascending Triangle” pattern on weekly charts, which is bullish in nature. Last week, the stock has given the pattern breakout along with high volumes and also has managed to close above the same. So, buying momentum may continue for coming days. Therefore, one can buy in the range of 775- 780 levels for the upside target of 860-880 levels with SL below 730 levels.
The stock closed at Rs 3114.15 on 01st April, 2022. It made a 52-week low of Rs 2484.50 on 05th April, 2021 and a 52-week high of Rs. 3590 on 10th January, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 3059.56
As we can see on charts that stock was consolidated in narrow range and formed a “Continuation Triangle” on weekly charts which is considered to be bullish. Last week, stock has given the breakout of same and also has managed to close above the same. Apart from this, stock has formed an “Inverse Head and Shoulder” on daily charts, which indicates buying momentum may continue for coming days. Therefore, one can buy in the range of 3070-3090 levels for the upside target of 3333-3373 levels with SL below 2953 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
On weekly basis, nifty gained more than 3% whereas bank nifty outperformed and extended its gains to end the week with gains of more than 4%. Buying was seen in all the sectors except IT and Pharma. India VIX cooled off and closed near to weekly low. We have observed positive rollover in April series in most of the stocks and index as well. From the derivative front, after trapping the 17500 call writers in last expiry, now in current expiry this level would work as a strong support. The range of the current week expiry is 17500 and 18000 levels where the option writers are most active. Put writers are more aggressive then the call writers; hence the undertone is bullish. Implied Volatility (IV) of calls closed at 19.50% while that for put options, it closed at 21.08%. The Nifty VIX for the week closed at 20.56% and is expected to cool off in the upcoming week. PCR OI for the week closed at 1.34. For the upcoming week, we expect markets to remain in bullish territory as bias is likely to remain in favour of bulls. For Banking index, 36500 would act as strong support while 17500-17400 zone is likely to give support to 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: Turmeric futures (Apr) closed higher for the second consecutive week as demand continues to improve from the domestic spices industries and lower arrivals in the physical market. As per market sources, the arrivals have been stabilized in the main physical markets, if the prices goes down. We expect the prices to trade higher towards 9500 levels with major support at 8620 levels. Currently, the prices are 4.5% higher as compared to last year but about 9% down since Jan prices. New season turmeric hitting the market and the exports expected to increase as season progresses. As per first advance estimates by the Govt for 2021/22 season, turmeric output is pegged at 11.76 lakh tonnes in 2021-22 against 11.24 lt in 2020-21. Exports of turmeric, down by 25% m/m at 10,600 tonnes in Jan 2022 is Vs 14275 tonnes in Dec 2021. In the first 10-months (Apr-Jan) of FY 2021/22, exports down 20.1% at 1.27 lakh tons compared to last year but higher by 9.2% compared with 5-year average. Jeera futures (Apr) continued its positive move for the second week due to improving domestic from the spices industries while the exports are diminishing. It is likely to trade higher towards 22700 with support at 21125. The peak season for arrivals of new season jeera commenced but the arrivals recorded lower compared to last year. The physical arrival of old and new crop in Unjha improved to around 26000 bags (1 bag = 55 kg) daily compared to about 44000 bags last year. In 2022, jeera prices have jumped about 32.5% while prices are higher by 49.2% y/y due to lower crop estimates. As per the first advance estimates by government, cumin seed output is at 7.25 lakh tonnes in 2021-22 against 7.95 lakh tonnes in 2020-21. Jeera exports in Jan 2022 up by 19% m/m at 14725 tonnes compared to 12385 tonnes in Dec 2021. However, for Apr-Jan period exports are down by 23% Y/Y at 1.88 lt compared to 2.44 lt last year. Dhaniya futures (Apr) witnessed largest weekly jump in 3- months to trade at over 6 years high prices seen recovering mainly on diminishing arrivals in the physical market while domestic demand is increased from the Masala makers. It is likely to trade higher towards 12500 with support at 10900 levels. Currently prices are higher by 58.3% y/y and up 27.7% since January on lower crop estimates while the exports are down. The spice companies waited price fall this year, but they see no reduction in prices and now started their purchase, which will support prices in coming weeks. As per data release by Dept of commerce, coriander exports in Jan 2022 is down by 15% m/m at 3590 tonnes compared to 4630 tonnes in Dec 2021 while for FY 2021/22 (Apr-Jan) export volume is down by 15% at 41,100 tonnes Vs 48,350 tonnes last year but 11% higher compared to 5-year average.
Gold posted its biggest quarterly gain since the pandemic-led surge in mid-2020 as concerns over soaring consumer prices and the Ukraine crisis bolstered bullion's safe-haven appeal. The geopolitical situation has been dragging for a month now and inflation data continues to rise. So the overall sentiment in this market right now is people looking for safety. Gold is considered a safe investment during times of political and financial uncertainty. Data showed U.S. consumer spending slowed significantly in February, while price pressures continued to mount, with the largest annual spike in inflation since the early 1980s. Russia's invasion, which began on Feb. 24, has fuelled a rally in oil prices and industrial metals. The Federal Reserve has hinted toward aggressive rate hikes this year to fight against soaring inflation, which investors fear could send the U.S. economy into a recession. A pullback in benchmark U.S. 10-year Treasury yields on Thursday also supported gold. The U.S. dollar fell 0.6% to nearly a two-week low, making greenback-priced gold less expensive for other currency holders. Also helping gold, this Russian situation, which seemed to be improving, is now kind of deteriorating again. Gold has been performing well, but we still see a number of potential drivers that could move the metal even higher. Currently, gold prices are testing critical resistance just below $1,950 an ounce. On technical front prices on COMEX are facing resistance near $1960 in short term whereas on longer frame $1990 is major for the bears as long as prices sustain below the level it remains sell on rise market. On MCX, Gold may continue to trade in the wider range of 50100-53500 levels. Silver may trade in the range of 65000-69000 levels.
Crude oil witnessed selling pressure throughout the week, as US President Joe Biden announced the release of 1 million barrels of oil per day for six months starting in May to check soaring prices in the aftermath of the Russia-Ukraine crisis. The May contract of West Texas Intermediate (WTI) on the NYMEX slipped below the $100 per barrel mark. The fall in prices would be limited as the planned US release is not adequate to compensate for Russian supplies. As per the International Energy Agency, Russia is the largest exporter of oil to global markets and the second largest crude oil exporter behind Saudi Arabia. In December 2021, it exported 7.8 million barrels per day. Oil prices had been on an upswing even before the Russia-Ukraine conflict, as demand rebounded with the easing of the pandemic curbs and supplies struggled to keep up. However, the West's sanctions on Kremlin after its invasion of Ukraine, had pushed Brent, the global benchmark, to as high as $139.13 per barrel, the highest since 2008. Prices since then have eased largely due to demand concerns following a fresh surge in covid-19 cases in China and mobility curbs in major cities. Ahead in the week crude oil may trade in the range of 7400- 8080, where we may witness both side movements. Natural gas prices soared on forecasts for higher demand over the next two weeks than previously expected. Russia's Gazprom is considering options of halting gas supplies to Europe amid issues of payments in Roubles. Ahead in the week, natural gas may trade with positive bias where support is seen near 390 and resistance near 470.
Base metals may trade in the range with weak bias as demand worries rose after data showed factory activity in top metals consumer China slumped at the fastest pace in two years last month, hit by a COVID-19 resurgence and related restrictions. Shanghai is set to expand COVID curbs on Friday to include the western half of the city and extend restrictions in the east where people have already been forced to stay home since last week. If dollar extends a rebound versus major peers after U.S. jobs data, it may weigh on counter. However, metals prices may continue to rise further as inflation pushes investors towards commodities while tight supply of industrial metals and the risk of further sanctions constraining Russian supply also boosting prices. Copper may trade in the range 790-840. Copper output in Chile, the world's largest producer of the metal, fell 7% year-on-year to 399,817 tonnes in February. The ICSG said mine production grew by around 2.3% in 2021, driven by higher output from Peru, the world's second-largest copperproducing country, and Indonesia. Zinc can move towards 355 with support of 330 levels. Lead can move in the range of 180-190 levels. Zinc prices are driven by increased risks of European smelter disruptions due to the Russian crisis and higher energy costs, leading to a larger forecast deficit of refined zinc in 2022. Nickel may trade in the range of 2250-2600 levels. Tesla Inc has secured an undisclosed deal with Brazilian mining company Vale S.A. for the supply of nickel, which is essential to making batteries for electric vehicles, Bloomberg News reported. Aluminum may trade in the range of 275-290. Lower crude prices may also pressurize the Aluminum prices.
Cotton futures (Apr) witnessed corrections after touch fresh all-time highs of 43380 levels last week. We expect prices to correct towards 39500 levels, if it breaches 41480 levels. Currently, the domestic prices are high 99% y/y and jumped about 25.3% in 2022 due to concerns over production, slow arrivals, better domestic and exports demand. As per USDA report, all cotton planted area for coming season (2022) is estimated at 12.2 million acres, up 9 percent from last year. In its latest March report, the USDA cut its forecast for global cotton production in 2021-22 to 119.9 million bales (1 US bale= 218kg), compared to 120.2 million bales projected in Feb 2022. World 2021/22 cotton ending stocks are now lower by 1.7 million bales. India’s crop is reduced by 500,000 bales for the second consecutive month to 26.50 million bales. Guar seed futures (Apr) jumped higher last week due to improving exports of guar gum from the country. We expect the pries to trade higher towards 7000 levels, if it breaks resistance level of 6500 levels. Support is at 6050 levels. Currently, prices are up 68% y/y on reports of lowest production in last 5 years, multi-year lower stocks and improving export demand due to higher crude oil prices. The oil rig count is also higher at 670 up by about 253 compared to last year. In Jan 2022, Guar gum exports are higher by 5% y/y at 22300 tonnes while exports in 2021/22 (Apr-Jan) are up by 38.4% y/y at 2.64 lakh tonnes. Castor Seed (Apr) continue to trade in a rage of 7100 – 7400 due to balanced supply and demand situation. It is facing resistance at all-time high at 7430 levels. The trend positive and may trade higher towards 7600 if it break its resistance. Prices have increased 24.5% this year due to lower production estimates and higher by 49.8% y/y. As per SEA, castor meal exports increase by 40% y/y to 32000 tonnes in Feb 2022, while overall exports for FY 2021/22 down about 5.5% to 3.60 lt vs 3.90 lt. Similarly, castor oil exports are higher by 7% m/m in Feb 2022 at 50,200 tonnes while it is at par at 6.1 lakh tonnes for Apr-feb period. Mentha Oil (Apr) closed higher for 4th consecutive week due to expectation of lower area in the coming season. The immediate resistance is 1110 levels and support is at 1060. The trend looks positive and likely to trade higher towards 1100 levels in coming weeks. The area under mentha expected to be lower this season in Uttar Pradesh while exports and demand is rising over the years.
COPPER MCX (APR) contract closed at Rs. 821.45 on 31st Mar 2022. The contract made its high of Rs. 888.35 on 07th Mar’2022 and a low of Rs. 758.00 on 09th Feb’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 814.97. On the daily chart, the commodity has Relative Strength Index (14-day) value of 58.970.
One can sell below Rs. 810 for a target of Rs. 790 with the stop loss of 820.
CRUDE OIL MCX (APR) contract was closed at Rs. 7766.00 on 31st Mar’2022. The contract made its high of Rs. 9684.00 on 08th Mar’2022 and a low of Rs. 6340.00 on 27th Jan’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 7283.95. On the daily chart, the commodity has Relative Strength Index (14-day) value of 47.313.
One can buy near Rs. 7500 for a target of Rs. 7900 with the stop loss of Rs 7300.
JEERA NCDEX (APR)contract closed at Rs. 21125.00 on 31st Mar’2022. The contract made its high of Rs. 22800.00 on 23rd Jan’2022 and a low of Rs. 16910.00 on 22nd Dec’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 21369.34. On the daily chart, the commodity has Relative Strength Index (14-day) value of 60.187.
One can buy near Rs. 21640 for a target of Rs. 22300 with the stop loss of Rs. 21300.
CRB saw recovery from the lower levels despite some constructive peace talk. Fall in dollar index and treasury yield also made commodities attractive. Energy prices dived on positive talk amid news of strategic release from US. Oil prices dived more than $5 a barrel on Thursday as the United States is considering the release of up to 180 million barrels from its strategic petroleum reserve (SPR) over several months to calm soaring crude prices. The International Energy Agency had called an emergency ministerial meeting for Friday to discuss oil supply. Furthermore, OPEC+ sources said on Wednesday the producer alliance which includes Russia is likely to stick to its existing deal to gradually increase oil production, despite a surge in prices due to the Ukraine crisis and calls from the United States and others for more supply. Global oil supply disruptions are approaching 5-6 million barrels per day (bpd), according to Reuters’ calculations, as sanctions, conflicts and infrastructure failures hit supply just as demand is recovering close to an all-time high. Natural gas touched the high of 431.8 but couldn’t sustain on higher levels. Bullion loses some safe haven buying appeal after Russia pledged to cut down on military operations around Kyiv and in northern Ukraine. Base metals performed mix. Aluminium prices slipped on sharp fall in crude oil prices. Rest of the metals closed in green. The energy issue came back amid extensive doubts on Russia-Ukraine talks. Still, concerns over demand from the world's largest consumer China lingered. China's financial hub of Shanghai launched a planned two-stage lockdown to contain a coronavirus surge and said that all companies and factories will suspend manufacturing. Ore shipments from Russian aluminium giant Rusal's bauxite mines in Guinea have ground to a halt as the war in Ukraine disrupts the company's global operations, shipping data showed. European smelter squeeze keeps zinc close to record highs. The increase in energy prices is piling more pressure on already struggling European smelters.
Currently, cotton prices in the domestic prices are high 100% y/y and jumped about 25.3% in the new year due to concerns over production, slow arrivals, better domestic and exports demand. Guar seed futures (Apr) climb to one month high but closed little lower due to selling at higher prices. Prices have increased more than 3% this week due to good export demand for guar gum. In Jan 2022, Guar gum exports are higher by 5% y/y at 22300 tonnes while exports in 2021/22 (Apr-Jan) are up by 38.4% y/y at 2.64 lakh tonnes. Jeera futures sustained at the higher prices despite exports are lower in the current month as arrivals are lower as compared to last year.
Exports play an important role in the modern economies as it influences the level of economic growth, employment and the balance of payments of any country. The rapid growth of exports leads to a more competitive, technologically mature, productive and rapidly growing economy. Amidst the gloominess and uncertainty about global growth over the Ukraine war, on export front India can cheer about as the country’s exports have touched the $400 billion mark for the first time in FY 22, higher than the previous record of $330 billion, which was achieved in 2018- 19, helped by opening up of the global economy and high commodity prices favoring exporters of petroleum products, metals and steel. This achievement is remarkable as the FY 22 witnessed two waves of the Covid pandemic, especially the vicious second wave at the start of the financial year from April to July.
The agriculture sector also contributed to exports, especially during the pandemic, with India emerging as a major global supplier of food or essential agriculture products. India’s agriculture and allied exports have grown at a brisk 24 percent in the first 10 months of the FY 22. Exports were boosted by an increased access to markets in the US, European Union and the United Arab Emirates, and targeted efforts by the government to expand the global reach of processed food from India. This momentum is expected to continue as well and India’s agriculture exports can, for the first time, cross $43 billion in 2022-23.
Commerce ministry data shows that during the period between April 2021 to January 2022 of the financial year 2021-22, exports of agricultural products have amounted to USD 40.87 billion compared to USD 32.66 billion over the corresponding period of previous year, registering an increase of 25.14%. The government expects total exports from the sector to rise to $43 billion by March 2022. The growth in the export of farm produces was led by a sharp rise in the exports of non-basmati rice, cereals such as rice and wheat, dairy items and sugar, all of which grew by at least 40 percent in April-January 2021-22, according to the Agricultural and Processed Food Products Export Development Authority (APEDA).
Export of spices like ginger, pepper, cinnamon, cardamom, turmeric and saffron, which have therapeutic qualities, has also grown substantially. Meanwhile, the Marine Products Export Development Authority (MPEDA) said that shrimp and prawn exports have already reached 88 percent of the total export value of last year.
How did it happen?
The Government of India's consistent and concerted Endeavour's to steer in reforms for boosting agricultural exports have been highly fruitful. India has been able to step in through Indian missions abroad and interacted through virtual buyer-seller meets, removed many bottlenecks, coordinated with port/customs/State/district authorities, etc, to meet the increased global demand. All these efforts led to India emerging as a global supplier of food and other essential agricultural products.
During pandemic time, emergency response cell created to help exporters in addressing their issues related to movement of consignments/trucks/labour, issuance of certificates, lab testing reports, sample collection, etc, ensured the real time clearance of exports.
In order to provide direct export market linkage to farmers/FPOs and to encourage export-oriented production, 46 unique product-district clusters have been notified for export promotion. For the first time, the government has reached out directly at cluster and farm levels to give farmers a stake in export of their produce.
The dollar surged higher after Putin’s comments on Moscow TV saying gas contracts must be paid in rubles – something the Europeans have already said is not possible. The US PCE Deflator for February came in at 6.4% which was in line with expectations and slightly ahead of January’s 6.0%. Initial Jobless Claims for week ended March 26 were 202K vs the 196K expected. The US announces that it is considering a release of a million barrels a day, from its reserves, sending oil prices plummeting. The British pound was flat against the US dollar with the UK GDP growth showing sign of stagnation rising by only 0.1% over March. The euro is down as the bullish sentiment for the Common Currency over the past two trading sessions faded. High inflation on the Continent and positive vibes of Russian/Ukrainian war being “de-escalated” gave way to month-end flows and the reality of continued Russian shelling of Ukrainian cities. For now, USDINR has support placed 75.70-75.72 levels break below the same may witness sharp selling in pair while on higher side resistance is seen near 76.34 trading below the same sentiment will remain unchanged.
USD/INR (MAR) contract closed at 75.9150 on 31-Mar-22. The contract made its high of 76.7350 on 28-Mar-22 and a low of 75.8375 on 31 Mar-22 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 76.1424.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 47.32.One can sell at 76.00 for the target of 75.00 with the stop loss of 76.50.
GBP/INR (MAR) contract closed at 99.7425 on 31-Mar-22. The contract made its high of 101.1000 on 28-Mar-22 and a low of 99.0025 on 30-Mar-22 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 100.5506.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 52.49. One can sell at 100.00 for a target of 99.00 with the stop loss of 100.50.
| 16th MAR | Global deal making falls to lowest level since start of pandemic |
| 16th MAR | The Euro Area fell to a record low of 6.8% in February of 2022 |
| 16th MAR | U.S. Personal Income increases 0.5% in February, in Line With Estimates |
| 15th MAR | Russia sanctions threaten to erode dominance of US dollar, says IMF |
| 15th MAR | U.S. to release 1 mln bbl of oil per day from strategic reserve over next 6 months |
| 15th MAR | US Companies added 455,000 jobs in March, slightly more than expected, ADP says |
| 14th MAR | German inflation hits 40-year high as ECB president warns of ‘supply shock’ |
| 14th MAR | U.S. Job openings are little changed near a record as quits edge up |
| 14th MAR | UK government to cut NatWest stake to less than 50% |
EUR/INR (MAR) contract closed at 84.3725 on 31-Mar-22. The contract made its high of 84.9525 on 31-Mar-22 and a low of 83.9250 on 29-Mar-22 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 84.3142.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 50.05. One can buy at 84.25 for a target of 85.25 with the stop loss of 83.75.
JPY/INR (MAR)) contract closed at 62.4775 on 31-Mar-22. The contract made its high of 63.0400 on 28-Mar-22 and a low of 61.4425 on 28-Feb-22 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 63.7859.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 27.95. One can buy at 62.00 for a target of 63.00 with the stop loss of 61.50.
Agrochemicals and specialty chemicals manufacturer Hemani Industries has filed preliminary papers with the capital markets regulator SEBI for an IPO. The company plans to raise up to Rs 2,000 crore through its public issue that comprises a fresh issue of Rs 500 crore and an OFS of Rs 1,500 crore by the promoters. The net fresh issue proceeds will be utilised for capacity expansion at its plant in Saykha industrial estate, Gujarat, repaying debts of the company and subsidiary Hemani Crop Care Pvt Ltd and long-term working capital requirements, besides general corporate purposes. The products manufactured by the chemical company are used for crop protection (insecticides, herbicides and fungicides), and for wood protection, veterinary, household and public health applications. The company is also engaged in contract research and manufacturing services (CRAMS) and contract manufacturing for multinational and domestic companies in the agrochemical and specialty chemicals areas.
Gujarat Polysol Chemicals has filed preliminary papers with the capital markets regulator for raising funds via a Rs 414 crore initial public offering. The chemicals manufacturer plans to issue fresh shares of Rs 87 crore and an offer for sale of Rs 327 crore by promoters including Shaileshkumar Balvantrai Desai, Umang Shailesh Desai, and Polysol Financial Services LLP. The proceeds from the fresh issue will be used to repay debt and for general corporate purposes. Gujarat Polysol Chemicals is among the chemicals manufacturers for the infra-tech (construction), agro, dye and leather industries and is a leading supplier of powder surfactants in India. It is one of the top manufacturers of poly carboxylate ethers (PCE) liquid and powder in India. The Vapi-based company has an aggregate manufacturing capacity of 130,400 mt per annum across three units. The book running lead manager to the offer is INGA Ventures. The company’s equity shares are proposed to be listed on the BSE and the National Stock Exchange of India.
Leading Indian online travel firm Yatra Online Inc, which is listed on the Nasdaq, announced on March 25 that its Indian subsidiary, Yatra Online Limited, filed a DRHP with the market regulator Sebi for an IPO aggregating up to Rs 7,500 million or approximately US$100 million of primary proceeds and a secondary offering of up to 8,896,998 equity shares by THCL Travel Holding Cyprus Limited, a subsidiary of Yatra Online, Inc., which amounts to approximately 8% of the shares outstanding of Yatra Online Limited. Yatra Online was listed on the US bourses in December 2016. SBI Capital Markets, DAM Capital, and IIFL Securities are the merchant banks working on the IPO. J Sagar Associates, Indus Law, and Trilegal are the legal advisors according to the DHRP.
Yatharth Hospital & Trauma Care Services has filed for an IPO comprising Rs 610 crore fresh issue and an OFS of 6,551,690 equity shares by promoters. The OFS comprises up to 37,43,000 equity shares by Vimla Tyagi, up to 20,21,200 equity shares by Prem Narayan Tyagi and up to 7,87,490 equity shares by Neena Tyagi. The company plans to use the net proceeds from the fresh issue to repay debt, capital expansion, acquisitions and general corporate purposes. The company operates three super specialty hospitals at Noida, Greater Noida and Noida Extension.
Frozen meat exporter HMA Agro Industries has filed preliminary papers with markets regulator Sebi for an initial share sale worth Rs 480 crore. The IPO will comprise fresh issue of equity shares aggregating up to Rs 150 crore and an OFS of equity shares worth up to Rs 330 crore by its promoters. The company will use the net proceeds worth Rs 135 crore for funding working capital requirements as well as for general corporate purposes. The Agra-based firm is among the largest exporters of frozen buffalo meat products from India. Its products are exported to over 40 countries all over the globe. More than 90 per cent of its sales come from of exports. For the financial year ended March 2021, the company posted a profit after tax of Rs 73 crore while the total income from operations stood at Rs 1,720 crore. Aryaman Financial Services is the book running lead manager for the IPO.
Gold jewellery maker Joyalukkas India has filed its DRHP with capital markets regulator Sebi to raise funds via IPO. The company plans to issue fresh equity shares with a face value of Rs 10 each aggregating to Rs 2,300 crore through its primary offering, the DRHP said. The Kerala-based jeweller, which has a presence in 65 cities, aims to tap the growing demand for the precious metal in the world's second-largest market. Joyalukkas posted revenue from operations of Rs 8,066 crore for FY21 against Rs 8,024 crore a year ago. Its net profit stood at Rs 472 crore for FY21 compared to Rs 41 crore a year ago. It has appointed Edelweiss Financial Services, Haitong Securities India, Motilal Oswal Investment Advisors and SBI Capital Markets as the book running lead managers to the issue, whereas Link Intime India will serve as the registrar to the issue.
Gujarat Polysol Chemicals said it has filed its DRHP with market regulator SEBI. The company plans to raise funds by offering its equity shares aggregating up to Rs 414 crore through the IPO route. The offer comprises a fresh issue of up to Rs 87 crore and an offer for sale of equity shares of up to Rs 327 crore by the selling shareholders. The company is among the leading suppliers of dispersing agents in the Infra-tech, dye and pigments, and textile and leather industries and a leading supplier of powder surfactants in India. The company proposes to utilise the net proceeds towards funding repayment or pre-payment, in full or in part, of all or certain borrowings availed by the company and for general corporate purposes.
PKH Ventures, a construction and hospitality firm, has filed preliminary papers with capital markets regulator Sebi to raise funds through an IPO. The public issue comprises fresh issuance of 1.826 crore equity shares and an OFS of 0.983 crore shares by its promoter, according to the DRHP. Proceeds of the issue will be used to invest in subsidiaries -- Halaipani Hydro Project Pvt Ltd and Garuda Construction -- funding long-term working capital requirements, for funding strategic acquisitions and investments, among others. The Mumbai-based company has three business verticals -- construction and management, hospitality and management services.
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Invesco Mutual Fund has launched a new fund, Invesco EQQQ Nasdaq-100 ETF Fund of Fund, an open-ended fund of fund scheme investing in Invesco EQQQ Nasdaq-100 UCITS ETF. The fund will invest 95% of its net assets in the Invesco EQQQ Nasdaq UCITS ETF fund, which tracks the Nasdaq 100 index. The New Fund Offer (NFO) is now open and will close for subscription on April 13. The underlying fund is domiciled out of Ireland and has a track record of over 19 years. The fund has assets under management of over Rs. 45,873 crore (US$6.09 bn) as on 28 February 2022. According to the fund house, the scheme will provide exposure to 100 largest US and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization. The minimum investment amount during the NFO is Rs 1,000 and in multiples of Rs 1 thereafter. For SIP investments, the minimum application amount is Rs 500 and in multiples of Re 1 thereafter. The fund will not charge any exit load on redemptions.
UTI Mutual Fund has launched an open-ended scheme replicating Nifty Midcap 150 Quality 50 Total Return Index (TRI) - UTI Nifty Midcap 150 Quality 50 Index Fund. The New Fund Offer is open and will close for subscription on April 5. The scheme will re-open for subscription and redemption on an ongoing basis from April 15. According to the press release, the investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. Sharwan Kumar Goyal, Head - Passive, Arbitrage & Quant Strategies, UTI AMC, will manage the scheme. Minimum initial investment is Rs 5,000/- and in multiples of Re 1 thereafter. Subsequent minimum investment under a folio is Rs 1,000 and in multiples of Re 1 thereafter with no upper limit. There is no entry or exit load in the scheme.
Passive investing has gained popularity since Covid hit the Indian shores two years ago. Since February 2020, the number of index funds have increased 144% and the assets managed by them grew 590%, says data collated by Morningstar India. Index funds have been the talk of the town in the last one year. There were 32 index funds in the market in February 2020. The number today stands at 78. The total AUM in index funds stood at Rs 7,930.48 in February, 2020. In February 2022 the figure was Rs 54,737.46. ETFs other than gold ETFs also saw investor interest in the recent years. There was a sharp increase of 57% in the number of schemes and 117% increase in the AUM of these ETFs. ETFs have been getting traction because of their low cost structures and innovative themes. However, data shows that retail investors still prefer index funds for their simplicity.
SBI Mutual Fund, the largest fund house in the country by assets under management, registered more than 30 lakh new SIPs in FY 21-22 as on January 1, 2022, recording a growth of 39% as compared to the previous year. The fund house received an average monthly SIP flow of over Rs. 1,800 crore in the current financial year with the average ticket size of a SIP being around Rs. 2,500. The fund house attributes the growth in the new SIPs to availability of its offerings through a strong distribution network of IFAs, National Distributors and SBI Branches. SBI Mutual Fund also has further increased its footprint in the country with the opening of new branches in several Tier 2 locations. SBI Mutual Fund commands a 19.7% market share in B30 locations, seeing a growth of 37% in active SIPs.
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