In the week gone by, global stock market witnessed huge volatility driven by the United States banning Russian oil and other energy imports over Moscow's invasion of Ukraine. Also the news that inflation has hit a four-decade high, is now cementing expectations that the U.S. Federal Reserve would hike key interest rates at the conclusion of next week's monetary policy meeting to prevent the economy from overheating. Recently Federal Reserve Chair Jerome Powell said that the central bank would begin carefully raising interest rates at its upcoming March meeting amid war in Ukraine. Meanwhile, consumer prices surged in February to a 7.9% annual growth rate, according to the Labor Department, the hottest reading in forty years. There were also concerns that IMF may cut the global GDP forecast for 2022 after slashing it to 4.4 per cent earlier in January. The world economy grew at 5.9 per cent in 2021. Meanwhile, the European Central Bank said it would aim to phase out its large bondbuying program by September, taking a key step toward raising interest rates to contain surging inflation despite the shock of war in Ukraine. The ECB said in a statement that it would keep its key interest rates on hold but signaled that it wouldn't reduce them further. Any ECB interest-rate hikes will take place sometime after the end of the bank's bond-buying program and will be gradual, the ECB said.
Back at home, domestic markets moved higher buoyed by a bullish trend in Asian markets and state election results being in line with expectations. The market sentiment was also upbeat on the news reports suggesting that President Volodymyr Zelensky is no longer pressing for NATO membership for Ukraine. However, the ongoing crude and commodities shock in the wake of the Russia-Ukraine conflict is likely to have negative implications for India’s macro situation in terms of higher inflation and bond yields, higher CAD and weaker INR, and potentially weaker consumer demand, and thus a lower GDP growth rate. According to CRISIL, Indian economy is likely to grow at 7.8% in FY23 with risk tilted towards downside. India's gross goods and services tax (GST) collection rose 18% in February on year on year to Rs 1.33 trillion. This was the fifth straight month when the GST collections topped over Rs 1 trillion. Meanwhile, investors will continue to keep an eye on each development between Russia and Ukraine. Besides, domestic as well as global markets will continue to give direction to the markets.
On the commodity market front, it was a historic week for commodities in terms of volatility; many commodities made historic highs and then a sharp fall from higher side on some constructive move between Ukraine and Russia amid some strict steps by exchanges. CRB made a high of 328.75 and slipped to 310 later on. Crude saw much needed correction last week as the UAE called on OPEC+ to boost production faster to ease turmoil in the energy markets. Rift between the EU and USA and Ukraine soft move can save it to see another mad rally but expect supply congestion for entire 2022. Brent crude futures traded around $108 per barrel on Thursday after falling more than 13% in the previous session for its biggest drop since April 2020. However, the talks on Iran's nuclear programme have slowed between Tehran and world powers. Crude can trade in a wide range of 7600-8400 levels. Bullion may appreciate further. Nickel saw a massive fall after historic high. Employment Change and Unemployment Rate of UK, ZEW Economic Sentiment Index Euro Area and Germany, Core Inflation Rate and Inflation Rate of Canada, Retail Sales, Fed Interest Rate Decision and Fed Press Conference, GDP Growth Rate and Core Inflation Rate New Zealand, Employment Change and Unemployment Rate of Australia, BoE Interest Rate Decision, Inflation Rate and BoJ Interest Rate Decision of Japan etc.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
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SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The company has achieved outstanding operational and financial performance as compared to the previous quarter with recovery in petrochemicals and retail segment, and sustained growth in Digital Services business. Retail business activity has normalised with strong growth in key consumption baskets as lockdowns ease across the country. With large capital base across Jio and Retail business, the company continues to pursue growth initiatives in each of businesses with a focus on the India opportunity, thus, it is expected that the stock will see a price target of Rs.2740 in 8 to 10 months’ time frame on a target P/E of 24x and FY23 EPS of Rs.114.17.
The company's strong market position is supported by access to the latest technology and brand equity of its parent, diverse product portfolio, wide geographical reach and established track record of timely execution of projects. The company believes that the tendering for private sector capex will pick up in the months ahead on the back of Government investment in infrastructure and also due to increase in capacity utilization levels. Thus, it is expected that the stock will see a price target of Rs.2771 in 8 to 10 months’ time frame on a target P/BVx of 8.70x and FY22E BVPS of Rs.318.55.
The stock closed at Rs 139.15 on 11th March, 2022. It made a 52-week low at Rs 80.05 on 25th March, 2021 and a 52-week high of Rs. 150.75 on 06th October, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 116.72
Short term, medium term and long term bias are positive for the stock as it is trading in uptrend since October, 2020. Moreover, the stock witnessed a healthy correction from yearly high and tested its previous support and started moving higher. Apart from this, it is forming an “Inverted Head and Shoulder” pattern on weekly charts which is bullish in nature. Last week, the stock had given the pattern breakout and also had managed to close above the same along with high volumes. So, buying momentum may continue in coming days. Therefore, one can buy in the range of 135-137 levels for the upside target of 155-160 levels with SL below 125 levels.
The stock closed at Rs 1168.80 on 11th March, 2022. It made a 52-week low of Rs 689.00 on 12th April, 2021 and a 52-week high of Rs. 1212.00 on 19th January, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 999.60
After massive upside move from 600 to 1200 levels, the stock has consolidated in wide range of 1000 to 1150 levels for 5 months and formed a “Bull Flag” pattern on weekly charts, which is considered to be bullish. Last week, the stock had given breakout of pattern and also closed above the same. So, further buying is anticipated in the stock from the current levels. 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 1150-1160 levels for the upside target of 1250-1280 levels with SL below 1080 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, bulls made a strong comeback in Indian markets as Nifty and Bank nifty both recovered sharply from its recent lows after witnessing a sharp selloff for four consecutive weeks. Nifty ended above 16600 marks while Banking index manage to close above 34500 levels after BJP emerges as clear winner in 4 states. From derivative front, once again option writers seen adding open interest in far strikes which points towards volatility in upcoming sessions. Nifty could face immediate hurdle at 16850-16900 zone while 16400-16300 zone could act as a key support zone for the index. Implied volatility (IV) of calls closed at 24.45% while that for put options closed at 26.07. The Nifty VIX for the week closed at 25.58% which was higher than the previous week. PCR OI for the week closed at 1.44. From technical front both the indices are well placed below its 200 days exponential moving average on daily charts which could limit any sharp upside in prices. However, traders can expect sector specific moves in upcoming week with trend are likely to remain in favour of bulls.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric futures (Apr) closed lower last week as exports figures are not encouraging while the new season arrivals are increasing in the physical market. We expect the prices to trade lower towards 8000 with major resistance at 9700. Currently, the prices are only higher by 3.4% as compared to last year. Currently, new season turmeric is hitting the market but the exports are normal this season. As per data release by Dept. of commerce, turmeric exports in Jan 2022 is down by 25% on month to 10,600 tonnes as compared to 14275 tonnes in Dec 2021. In the first 10-months (Apr-Jan) of FY 2021/22, exports were 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) slipped to 5-week low but recover fast to close positive last week due to good demand from the market players. It is likely to correct more if it breaches the immediate support at in coming week as new season jeera will also hit the market and peak arrivals will be commencing in next onemonth time. The physical arrival of old and new crop in Unjha improved to around 25000 bags (1 bag = 55 kg) daily as compared to less than 15000 bags last week. In the New Year, jeera prices have jumped more than 29% and currently prices are higher by 46.7% y/y on reports lower production due to less area and crop damage in the state of Gujarat and Rajasthan. In 2021/22, area under Jeera in Gujarat is only 3.07 lakh ha Vs 4.69 lakh hac last year and according to 2nd advance estimates production expected to fall by 41% to 2.37 lakh tonnes Vs 4.0 lt last year. As per data release by Dept of commerce, jeera exports in Jan 2022 is up by 19% on month at 14725 tonnes compared to 12385 tonnes in Dec 2021. However, exports of jeera for Apr-Jan down by 23% Y/Y at 1.88 lt compared to 2.44 lt last year. Dhaniya futures (Apr) slipped to 5-weeks low but recovered due to low level buying to close mostly unchanged last week. Now the resistance is seen at 11150 levels and support at 10380 levels. The price may trade higher towards 11500 if it breaks the resistance. Currently prices are higher by 54.6% y/y and up 23% since January due to lower area as farmers have shifted to other crops while the exports are normal due to higher prices. As per data release by Dept of commerce, coriander exports in Jan 2022 is down by 15% on month 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 prices rebounded after high-level talks between Russia and Ukraine did not yield a stop in fighting. Market is going back into risk aversion mode as Russia seems poised to continue to move forward with its attack on Ukraine. Gold prices appeared to be anchored around the $2000 level but could push higher, if Wall Street becomes even more skeptical that a cease-fire between Russia and Ukraine seems far away from happening. Gold has strong support at the $1975 level and tentative resistance at the $2050 region. The latest inflation report did not do much for gold today but serves as a reminder that stagflation risks remain and that growth concerns will eventually lead to safehaven flows into bullion. A rush to safe-haven assets earlier this week had pushed gold near the record levels hit in August 2020. Investors also took stock of February inflation data from the United States, which was in line with expectations but also showed the biggest year-on-year increase since January 1982. Gold bulls spent a lot of energy pushing prices to a record high earlier in week. Now, even bullish inflation data hasn't given much benefit because prices are just exhausted. Against the backdrop of surging oil and commodity prices, investors now await the Federal Reserve's next policy statement on March 16. Overall gold is positive on charts and technical’s pointed towards higher side, any dip near support is considered as buying opportunity. Ahead in the week, gold may take support near 50500 and face resistance near 54200, higher volatility is expected in the counter. On the other hand, Silver is taking support near 67500 and could face resistance near 72000.
Oil’s tumultuous rally paused after U.S. inflation rose to a fresh 40-year high, sparking worries that surging prices could hasten the onset of demand destruction. Crude Oil slipped lower after a wild run as energy traders became worried that inflationary pressures will only get worse as this war continues and that will lead to crude demand destruction. After another hot inflation report, many investors are growing concerned that stagflation risks could derail the economy later this year. Adding to the pressure on crude oil prices is the possibility that OPEC+ could be serious in their contemplation of boosting oil output. Regardless, US production is expected to rise and many oilimporting nations will continue to tap stockpiles as the global energy crisis intensifies. There is too much uncertainty about who will be buying Russian crude and how much over the short-term. WTI crude seems like it could start to trade in a widening range between the $100 to the $116 price levels. In a further sign of the strain on global diesel markets, Saudi Arabia was seeking to purchase an unusually large amount of the fuel, in a surprise move for a country that is usually a net exporter. Stockpiles of distillate fuels in the U.S. also fell sharply last week. Ahead in the week prices may continue to witness selling from higher level where it may take support near 7800 could face resistance 8250. Natural gas prices moved sideways following the Energy Department report on natural gas inventories. The decline is mostly due to the movement into a period of the year where demand declines. Ahead in the week prices could trade higher and range would be 340-380.
Base metals may continue to trade with mixed bias on own fundamentals. Investors may still turn cautious following nickel's trading suspension by LME after an unprecedented price surge. In other news U.S. consumer prices surged in February and inflation is poised to accelerate even further making it almost certain the Federal Reserve will raise interest rates next week. However supply disruptions due to continued conflict between Russia & Ukraine, sanctions on Russia, and low global stockpiles may provide cushion to the prices. Sanctions prompted the world's three biggest container lines to temporarily suspend cargo shipments to and from Russia. But, LME said that Russian restrictions on exports and imports introduced on March 8 do not include metals, and therefore, will not affect its brands. Copper may trade in the range 760-840. China's copper cathode output jumped 5.8% in February from a month earlier, as major smelters ramped up production after maintenance, data from research house Antaike showed. Zinc can move towards 360 with support of 300. Lead can move in the range of 182-190. China's lead production fell 51,000 tonnes in February from the previous month to 332,000 tonnes. China's refined lead production at around 410,000 tonnes in February. Nickel may trade slip towards 2500. Tsingshan Holding Group, the world’s largest nickel producer, has said that it will be able to tackle a historic short squeeze after gathering sufficient nickel inventory for delivery. Aluminum may trade in the range of 280-300 on persistent worries over Russian supplies. One global aluminium producer has offered Japanese buyers premiums of $250 per tonne for April-June primary metal shipments, up 41% from the current quarter.
Cotton futures (Mar) closed higher for the second consecutive week due to good physical demand and loser supplies. We expect prices to trade higher towards 40000 levels, if it breaches its resistance. Currently resistance is at all-time high levels of 38630 and support at 36120. The domestic prices are high 71.2% y/y and jumped about 11.2% in the New Year due to concerns over production, slow arrivals, better domestic and exports demand. 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 1.7 million bales lower compared to last month at 82.57 million bales. India’s crop is reduced by 500,000 bales for the second consecutive month to 26.50 million bales. The consumption also reduced by 5 lakh bales to 340 lakh bales while exports and import figures are unchanged at 15 and 45 lakh bales respectively. In the second advance estimates, govt has cut cotton production in the country to 340 lakh bales from 362 lakh bales in 1st estimate. Guar seed futures (Apr) closed higher for the second consecutive week and now immediate support at 5800. We expect the price trade higher towards 7000 levels. Currently, prices are up 60.4% 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 by about 248 compared to last year. As per data release by APEDA, Guar gum exports in the month of jan 2022 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) traded in a much closed range last week with resistance at all-time high at 7460 levels. The trend still positive and expect it to trade higher towards 7600 if it break its resistance. Prices jumped more than 21.2% this year due to its higher demand and lower production estimates and higher by 50.4% y/y. As per second advance estimates, castor output is pegged at 15.08 lakh tonnes, down about 8.5% from last year production. Gujarat agriculture department’s second advance estimate cut castor seed production by 1-lakh tonnes to 13.02 lt compared 14 lt in the first estimate. Last year production was 13.45 lt. Castor oil exports during Apr-Jan is at par with the last year export volume at 5.06 lakh tonnes. However, castor meal exports down 8.28% during the same period.
LEAD MCX (MAR) contract closed at Rs. 185.55 on 10th Mar 2022. The contract made its high of Rs. 193.00 on 19th Jan’2022 and a low of Rs. 180.90 on 19th Jan’2022. The 18- day Exponential Moving Average of the commodity is currently at Rs 186.68. On the daily chart, the commodity has Relative Strength Index (14-day) value of 47.189.
One can sell near Rs. 186 for a target of Rs. 179 with the stop loss of 190.
ALUMINIUM MCX (MAR) contract was closed at Rs. 279.75 on 10th Mar’2022. The contract made its high of Rs. 325.40 on 07th Mar’2022 and a low of Rs. 240.00 on 02nd Feb’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 277.09. On the daily chart, the commodity has Relative Strength Index (14-day) value of 56.803.
One can buy near Rs. 277 for a target of Rs. 295 with the stop loss of Rs 268.
GUARSEED NCDEX (APR)contract closed at Rs. 6154.00 on 10th Mar’2022. The contract made its high of Rs. 6554.00 on 21st Jan’2022 and a low of Rs. 5715.00 on 24th Feb’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 6120.17. On the daily chart, the commodity has Relative Strength Index (14-day) value of 52.667.
One can buy near Rs. 6150 for a target of Rs. 6500 with the stop loss of Rs. 5975.
It was a historic week for commodities in terms of volatility; many commodities made historic highs and then saw a sharp fall from higher side on some constructive move between Ukraine and Russia amid some strict steps by exchanges. CRB made a high of 328.75 and slipped to 310 later on. Nickel was the cynosure not only for commodities but also for the entire world. Due to war issue, supply restrictions and sanction amid short squeeze everywhere prices zoomed up. In MCX, it touched the high of 5617 from the low of 2318. Then it saw a sharp fall and touched the low of 3077 on margin hikes and sell signal from overseas market. LME announced to cancel all relative nickel trades at and after that the market sentiment cooled to some extent. Nickel prices more than doubled on Tuesday, forcing the London Metal Exchange to halt trading, due to an unprecedented short squeeze caused by low inventories and Russia supply concerns. Other base metals also saw historic high then moved down. Aluminum prices bolted to a fresh record peak as financial sanctions on Russia for invading Ukraine fuelled worries about supplies from Rusal, while worries about shipping disruptions boosted nickel. Story was moreover same for bullion counter; it made several yeas high but saw correction after the news of Ukraine is no longer insisting for NATO membership amid fresh buying in equity market. Gold extended losses below $2,000 on Thursday after posting its biggest decline in 14 months, as risk sentiment improved on hopes for a diplomatic solution to the war between Russia and Ukraine, with foreign ministers from both countries set to meet in Turkey. Crude was just few points shy away from 10000 marks in MCX but slipped below 8300 on news that OPEC plus will increase the production and US also indicated for production rise. US announced a ban on imports of Russian oil, a move that threatened supply chains and heaped further inflationary pressure on economies worldwide. Natural gas traded in a wide range of 340-400.
Cotton move in physical market is supportive due to steady demand from the mills at higher prices. Currently, prices are up 60.4% y/y on reports of lowest production in last 5 years, multiyear lower stocks and improving export demand due to higher crude oil prices. Castor prices surged as oil exports during Apr-Jan is at par with the last year export volume at 5.06 lakh tonnes. However, castor meal exports down 8.28% during the same period. Jeera moved up on reports lower production due to less area and crop damage due to excessive dew in the state of Gujarat and Rajasthan.
Steel industry is often considered as an economic indicator of any country’s development because of its critical role in infrastructural and overall economic development. In India around 60% of the Steel production is for Long Products used mainly for the Construction activities with different form such as TMT, Bars, Wire Rod, and Channels etc. Balance 40% of the Steel produced is for flat products, used for the electrical, automobile & engineering purpose.
Indian scenario
World scenario
Outlook
In October 2021, the government announced guidelines for the approved specialty
steel production-linked incentive (PLI) scheme. During the same month, India and
Russia signed an MoU to carry out R&D in the steel sector and produce coking coal
(used in steel making). With the economic recovery, the global demand for steel is
slated to increase this year and the next and the trend is expected to continue the
next financial year as well. This is mainly on account of the government's focus on
infrastructure development including roads, railways and defense production.
Robust infrastructure development in China alongside the transition to lowcarbon
energy sources has led several analysts to maintain a bullish outlook for
the commodity. Indian steel producers and sellers are expecting increased exports
to Europe and higher steel production costs with the possibility of tighter steel
and coal supplies because of the Russia-Ukraine conflict.
It was a roller-coaster ride for rupee in the week gone by, to hit new life-time low and then retraced back following the weakness in oil prices after OPEC+ members are looking for alternatives to increase the output. From the Russia-Ukraine front, still the diplomatic solutions remained dry as third round of peace talks between foreign ministers failed so far. Accordingly dollar index rose further in the wake of geopolitical uncertainties. Euro got sold-off after ECB Monetary policy turned out more negative for euro. Accordingly the ECB members set forecast for a lower growth with a higher inflation for this year and next which pretty obvious the monetary policy divergence will play out between US & EU. We think EURINR has every scope to fall towards 82.50 in coming days while EURUSD may drift lower towards 1.08 as well. The parallel effects are seen in pound too. Inevitably apart from Russia-Ukraine front, Fed rate hike is going to be the market driver in coming weeks. Next week FOMC is likely to raise 25 bps which may push GBPINR lower towards 99.00. Dollar rupee has knock all time high near 77.33 future levels which is going to act as resistance zone for now sustain above the same may witness sharp rally towards 78 marks. On down side, USDINR has support placed around 76.00-76.04 zone.
USD/INR (MAR) contract closed at 76.5650 on 10-Mar-22. The contract made its high of 77.3300 on 07-Mar-22 and a low of 76.2100 on 10 Mar-22 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 76.9295.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 61.34.One can buy at 76.20 for the target of 77.20 with the stop loss of 75.70.
GBP/INR (MAR) ontract closed at 100.8250 on 10-Mar-22. The contract made its high of 101.9775 on 07-Mar-22 and a low of 100.5425 on 10-Mar-22 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 101.3219.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 34.17. One can sell at 100.60 for a target of 99.60 with the stop loss of 101.10.
| 10th MAR | US annual CPI inflation rises to 7.9% in February |
| 10th MAR | ECB scales back stimulus plan as Ukraine war drives up inflation expectations |
| 10th MAR | US inflation reached 7.9% in February hitting new 40-year high |
| 10th MAR | Ukraine and Russia talks fail to secure breakthrough |
| 09th MAR | US ban on Russian oil will have limited effect |
| 09th MAR | ECB pursues flexibility as divisions deepen over Ukraine crisis |
| 08th MAR | UK insurance reform hits new customers with price rises |
| 07th MAR | UK insurance reform hits new customers with price rises |
| 07th MAR | US holds ‘active discussions’ about banning Russian oil imports |
EUR/INR (MAR) contract closed at 84.6250 on 10-Mar-22. The contract made its high of 84.7200 on 10-Mar-22 and a low of 83.3825 on 08-Feb-22 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 84.6125.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 44.85. One can sell at 84.75 for a target of 83.75 with the stop loss of 85.25.
JPY/INR (MAR)) contract closed at 66.0100 on 10-Mar-22. The contract made its high of 67.1700 on 07-Mar-22 and a low of 65.6825 on 10-Feb-22 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 65.7522.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 49.55. One can buy at 65.50 for a target of 66.50 with the stop loss of 65.00.
State-owned insurance behemoth Life Insurance Corporation of India (LIC) has received capital markets regulator Sebi's go-ahead to raise funds through an initial share sale. The government will sell over 31 crore equity shares of LIC, according to the draft red herring prospectus filed with Sebi. A portion of the IPO would be reserved for anchor investors. Also, up to 10 percent of the LIC IPO issue size would be reserved for policyholders. The government was expecting to garner Rs 63,000 crore by selling a 5 percent stake in the life insurance firm to meet the curtailed disinvestment target of Rs 78,000 crore in the current fiscal. The IPO is offer for sale (OFS) by the Government of India and there is no fresh issue of shares by LIC. The government holds a 100 percent stake or over 632.49 crore shares in LIC. The face value of shares is Rs 10 apiece. The LIC public issue would be the biggest IPO in the history of the Indian stock market. Once listed, LIC's market valuation would be comparable to top companies like RIL and TCS.
Hexagon Nutrition has received capital markets regulator SEBI’s approval to raise up to Rs 600 crore through an initial public offering (IPO). The company’s public issue consists of a fresh issue of equity shares aggregating to Rs 100 crore, and an offer for sale (OFS) of up to 30,113,918 equity shares, according to the draft red herring prospectus (DRHP). The OFS comprises sale of up to 77 lakh shares by Arun Purushottam Kelkar, up to 61.36 lakh shares by Subhash Purushottam Kelkar, up to 15 lakh shares by Anuradha Arun Kelkar, up to 25 lakh shares by Nutan Subhash Kelkar, up to 1.22 crore shares by Somerset Indus Healthcare Fund I Ltd and up to 73,668 shares by Mayur Sirdesai. Hexagon Nutrition, which filed preliminary IPO papers with SEBI in December 2021, obtained its observations letter on March 4 2022. As per market sources, the issue size will be approximately in the range of Rs 500-600 crore. Proceeds from fresh issuance will be used for debt payments, funding incremental working capital requirements, supporting capital expenditure for expanding an existing facility, investment in subsidiary and financing capital expenditure at the existing facility and general corporate purposes. Mumbai-based Hexagon Nutrition is a fully integrated company engaged in product development and marketing, including research and development and nutrition manufacturing.
EbixCash Ltd, Indian subsidiary of Nasdaq-listed Ebix Inc, has filed draft papers for an initial public offering (IPO) to raise Rs 6,000 crore through a fresh issue of shares. The firm may consider a pre-IPO placement of as much as Rs 1,200 crore, the draft papers said. The proceeds from the IPO worth Rs 1,035.03 crore will be used for funding working capital requirements of Ebix Travels Pvt Ltd and EbixCash World Money Ltd. Proceeds worth Rs 2,747.57 crore will be used for purchase of outstanding compulsorily convertible debentures from Ebix Mauritius. Motilal Oswal Investment Advisors, Equirus Capital, ICICI Securities, SBI Capital Markets and Yes Securities are the lead managers to the issue. EbixCash is involved in various financial services businesses that span business-to-customer (B2C) distribution, business-to-business (B2B), back-end systems, digital payments solutions, domestic and international money transfer services, travel, insurance, and corporate and incentive solutions. The firm primarily offers domestic remittance, forex, international remittance and pre-paid cards/gift cards. It also offers CMS, AEPS services, meal card programmes, expense management, and reward programmes. The firm brings together B2B, B2C and B2B2C models onto a single omni-channel platform, providing products in India and over 75 countries. It had over 650,000 physical agent distribution outlets for payment solutions, remittance, travel and insurance products throughout India and Southeast Asia as of December 31.
Suraj Estate Developers Ltd has filed preliminary papers with capital markets regulator SEBI to mop-up Rs 500 crore through an initial public offering (IPO). The funds will be raised through fresh issuance of equity shares, the draft red herring prospectus (DRHP) filed with SEBI. Funds to the tune of Rs 315 crore will be used for payment of the borrowings of the company and its subsidiaries — Accord Estates, Iconic Property Developers and Skyline Realty. Around Rs 45 crore will be utilised for acquisition of land or land development rights, besides, money will be used for general corporate purposes. Suraj Estate Developers has been involved in the real estate business since 1986, and develops real estate across the residential and commercial sectors in the South Central Mumbai region. At present, the promoter and promoter group holds around 95 per cent stake in the company. Centrum Capital and Anand Rathi Advisors are the book running leads managers to the issue. Shares of the company will be listed on the BSE and NSE.
India Exposition Mart, the fourth-largest integrated exhibitions and conventions venue, has filed preliminary papers with the capital markets regulator for raising funds through listing. The initial share sale comprises a fresh issue of Rs 450 crore and an offer-for-sale of 1.12 crore equity shares by selling shareholders. The company does not have any promoter as all shareholders are under the 'public category'. Selling shareholders include Vectra Investments, Rakesh Sharma, Vivek Vikas, MIL Vehicles & Technologies, Dinesh Kumar Aggarwal, Pankaj Garg, Overseas Carpets, Navratan Samdaria, RS Computech, Lekhraj Maheshwari, and Babu Lal Dosi. The company may consider raising Rs 75 crore before the filing of prospectus with the Registrar of Companies. India Exposition Mart, a major venue planner and provider, has an order book of Rs 121.52 crore from different exhibitions as of December 2021.
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Axis Mutual Fund has announced the launch of Axis NIFTY Midcap 50 Index Fund. The scheme will be managed by Jinesh Gopani, Head – Equity. The fund will track the NIFTY Midcap 50 Index TRI. The new fund offer or NFO will open for subscription on 10 March, and close for subscription on 21 March. The minimum application amount is Rs 5,000 and in multiples of INR 1, thereafter. According to the press release, Axis NIFTY Midcap 50 Index Fund will follow a rule-based passive investing strategy. The fund house says that this low cost investing solution is ideal for investors looking for exposure to midcaps, while following a disciplined and systematic format of investing. Investors can look to invest through various systematic options like SIPs, STP’s to adopt a more disciple approach or invest via lumpsum. Axis NIFTY Midcap 50 Index Fund will invest in 50 most liquid midcap stocks, giving preference for stocks where F&O contracts are traded on NSE.
Motilal Oswal AMC has launched Low Volatility factor-based ETF and Index Fund – Motilal Oswal S&P BSE Low Volatility ETF and Motilal Oswal S&P BSE Low Volatility Index Fund. These are open-ended schemes replicating/tracking the S&P BSE Low Volatility Total Return Index. The low volatility strategy involves buying stocks which have higher stability in price movements based on past returns. The NFOs of Motilal Oswal S&P BSE Low Volatility ETF and Motilal Oswal S&P BSE Low Volatility Index Fund will close for subscription on March 16. According to the fund house, the S&P BSE Low Volatility Index selects 30 least volatile companies as defined in index methodology. The constituents need to be part of S&P BSE Large-MidCap Index with a minimum listing history of one year. The maximum weight of stock is capped at 5% and the index gets rebalanced semi-annually in March and September.
Navi Mutual Fund has launched its Navi Nasdaq 100 Fund of Fund, an open-ended equity scheme that will invest in units of overseas ETFs/Index Funds based on the Nasdaq 100 Index. The fund will have a TER of 0.13% for the direct plan, which is among the lowest in the category, as per the fund house. The NFO opened on 3 March 2022 and will close on 17 March 2022. Investors can invest through online platforms like Groww, PaytmMoney, Zerodha Coin, INDMoney, Kotak Cherry, MF Utilities and more. As per the press release, Nasdaq 100 index comprises 100 of the largest non-financial companies listed in the US. Nasdaq 100 Total Return Index has generated a compounded annual growth rate of 18.93%, 32.59%, 27.59%, 26.12% in rupee terms as on 31 January 2022, over 1 year, 3 years, 5 years, and 10 years respectively. With a market cap of $18 trillion, the index has grown ~6x over the last 10 years.
SBI Mutual Fund announced that investors have put Rs 8,095 crore into a new fund offer for a multicap offering, giving it a 15 per cent share of the recently categorised market. Almost the entire sum has been raised from retail investors, and subscriptions came from 82 per cent of the PIN codes in the country, its chief business officer D P Singh said. The average ticket size also came down to over Rs 2 lakh from Rs 5 lakh earlier. Market regulator Sebi had last year redefined the multicap category, and SBI MF had launched its offering in line with the new norms, Singh said, expressing satisfaction with the investor response. The asset management company, which had raised over Rs 14,000 crore in a new fund offer (NFO) for a balanced advantage fund, was targeting to raise Rs 5,000 crore through the multicap fund NFO, Singh said.
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