In the week gone by, global stock markets were cautious after data pointing to a tight labor market renewed concerns the Federal Reserve will continue its aggressive path of rate hikes that could lead the economy into a recession. Other data were mixed, with new US home construction declining for a fourth-straight month in December. Applications for US unemployment benefits unexpectedly fell, sliding to the lowest level since September and underscoring a strong jobs market. That followed figures showing producer prices and retail sales fell, while business equipment production slumped. In another development, Japan's central bank left its ultra-easy monetary policy unchanged, defying market expectations it would phase out its massive stimulus programme in the wake of rising inflationary pressure. Last month, the Bank of Japan shocked the market by adjusting one of its policy tools, widening the band in which it allows rates for 10-year Japan government bonds to move. China's economy slowed sharply in the fourth quarter due to stringent COVID curbs, dragging down 2022 growth to one of its worst in nearly half a century and raising pressure on policymakers to unveil more stimulus this year. To note, GDP grew 2.9% in October-December from a year earlier, slower than the third-quarter's 3.9% pace.
Back at home, domestic markets also witnessed volatile movements tracking global cues. However, fresh foreign capital inflows were witnessed in the domestic markets. On the data front, India’s wholesale inflation based on the Wholesale Price Index for the month of December 2022 was at 4.95 per cent (provisional), against the previous month’s 5.89 per cent. Similarly, India’s retail inflation during the month of December was at 5.72 per cent. It was 5.88 per cent in November from 6.77 per cent in October. The market expects the Budget 2023 to be growth-oriented by increasing spend in infrastructure, healthcare and education. If we closely look at the data on capex, credit growth and manufacturing and services PMI indicate that the growth rebound in the economy is robust. Further, for fresh cues, investors would keep an eye on the upcoming Union Budget for 2023-24, scheduled to be presented on February 1. Besides, global factors will continue to dictate the trends of the domestic markets.
On the commodity market front, pause was witnessed in commodities upside on ambiguity. Dollar index was trapped in a range of 101.51-102.9. Gold saw a pause in the rally and silver mirrored the same trend. Bullion may see a pause in the rally now as Fed meeting is approaching and there is expectation of 25 bps rate hike this time. Gold and silver can trade in a range of 55200-57500 and 67000-70500 levels respectively. Crude oil can trade in a slim spread of 6200-6800 with upside bias; spur largely by brightening economic prospects for China which should boost its fuel demand. Base metals may continue to trade high on supply squeeze. GfK Consumer Confidence and Ifo Business Climate of Germany, Inflation Rate of New Zealand and Australia, BoC Interest Rate Decision, Durable Goods Orders, Core PCE Price Index, PCE Price Index, Michigan Consumer Sentiment Final and GDP Growth Rate of US etc. are some important triggers for the commodities market.
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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 bank continues to invest in expanding distribution network by adding people and branches combined with focused digital offering and relationship management to fuel growth. The management remains confident to sustain margins and indicated that the increase in cost of funds is likely to be off-set by increasing yields and shift in asset mix towards high-yielding retail loans. Thus, it is expected that the stock will see a price target of Rs.1944 in 8 to 10 months’ time frame on a one year average P/BV of 3.34x and FY24 BVPS of Rs.581.95.
The company is doing well and has comfortable balance sheet and surplus cash position. According to the management of the company, mining & cement industry to see further pick-up in activity as the global economy further revives and travel normalises, which will drive AIA's product requirements. Further it is expected that scope of margin will see improvement due to better order book, better operating efficiencies along with better utilizations of capital equipment. Thus, it is expected that the stock will see a price target of Rs.2871 in 8 to 10 months’ time frame on Current P/Ex of 29.85x and FY24 EPS (Earning Share) of Rs.96.18.
The stock closed at Rs 223.35 on 20th January, 2023. It made a 52-week low at Rs 186.35 on 26th September, 2022 and a 52-week high of Rs. 248.35 on 10th May, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 215.50
.From last few sessions, the stock has been consolidating in a broader range of 210-220 levels. However last week recovery was witnessed in prices as once again stock has managed to regain a momentum above its 200 days exponential moving average on daily charts with fresh breakout seen above the falling trend line of downward sloping channel. The bullish momentum is likely to carry in upcoming sessions after a channel breakout. Therefore, one can buy in the range of 220-223 levels for the upside target of 238-240 levels with SL below 210 levels.
The stock closed at Rs 27.05 on 20th January, 2023. It made a 52-week low at Rs 27.05 on 29th March, 2022 and a 52-week high of Rs. 46.90 on 27th October, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 37.17
The stock has been maintaining its bull run since long as prices can be seen trading in a rising channel with formation of higher bottom pattern on daily and weekly interval. Last week once again prices have shown some strength after taking support at its 100 days exponential moving average on daily charts. The rising volumes along with rise in prices points towards next upswing into a stock. Therefore, one can buy in the range of 41-42 levels for the upside target of 48-49 levels with SL below 39 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
The tug of war between bull and bear continued in the Indian stock market as Nifty made Doji candlestick on weekly chart with intraday volatility remained high during the week. From sectorial front, Oil & gas with PSE sector showed strength in the market whereas some profit bookings were observed in media and midcap space. From the derivative front, Nifty 18100 strike along with bank nifty 42500 strike holds maximum open interest, which points towards range bound moves in upcoming sessions as well. In nifty financial, 18900 call hold maximum open interest whereas 18700 put hold the same. Implied volatility (IV) of calls closed at 13.54% while that for put options closed at 14.12%. The Nifty VIX for the week closed at 13.96%. PCR OI for the week closed at 1.06. Technically both Nifty & Bank Nifty indices are trading in a defined range and directional moves may be expected once range breakout is observed on either side. Nifty current range is expected to be in between 17800 to 18200 levels whereas bank nifty has major support at 41800 level while 42800 on higher side will act as a strong hurdle for the index.
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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 prices halted their losing streak following emerging demand at local market. Exporters are showing good interest in buying activities as fresh export enquires has improved. Market is lacking with premium quality of turmeric as stockists are releasing only old stocks at lower rate and holding premium quality of turmeric in wake of bleak production outlook ahead. Supplies are lower and will remain down unless new crop touches the market. India exported about 12.4 thousand tonnes of turmeric in Nov’22 as compared to 12.2 thousand tonnes. Technically, Turmeric Apr contract traded at NCDEX is holding the support of 7700 and likely to move towards 8600 in coming week.
Jeera NCDEX Mar futures are expected to remain under pressure due to muted spot demand. Jeera prices has dropped by 10% from the highest level of 37990 and expected to fall further with surging selling pressure. Millers and exporters are avoiding bulk buying in wake of new crop season ahead. However, major trend of jeera is likely to remain bullish due to weaker production outlook for upcoming season. Apr and May month contracts of Jeera are ruling at premium of 300 and 1100 at NCDEX due to supply concerns. Considering the current technical structure at chart, it seems profit booking in jeera is likely to continue that will lead to Mar contract to fall up to 32000 with resistance of 38000 levels.
Dhaniya NCDEX Apr prices are likely to trade on weaker note due to lukewarm demand at physical market. Reports of rise in area under dhaniya and better yield prospects supported by normal crop progress will weigh on the market sentiments. Supplies are adequate at major trading centers and will improve further once the arrivals of new crop pick up. Harvest of new crop is likely to commence in March that is keeping buyers away from heavy buying. Major trend is Dhaniya is likely to remain down and prices may touch the level of 8000 in near term with resistance of 8500 levels.
Gold prices were on track to notch up a fifth consecutive weekly gain as hopes of slower U.S. interest rate hikes boosted bullion’s appeal. As per various reports in the market, it is expected that U.S. Federal Reserve will end its tightening cycle after a 25-basis point hike at each of its next two policy meetings and then likely to hold rates steady for at least the rest of the year. Gold is trading near recent highs. On MCX Gold hit all-time high of 56746 levels. Fed policy calibration thematic amid signs of more entrenched disinflation pressures is a key factor underpinning gold strength. The U.S. producer prices fell more than expected in December, offering evidence that inflation was receding and in turn, giving ammunition to bets that the Fed may slow rate hikes. There are signals that show that the U.S. is probably heading to a recession, this will favour gold. The European Central Bank pushed back against market bets that it would slow the pace of its interest rate hikes given recent falls in inflation and easing pressure to keep up with policy moves by other central banks. On COMEX, Gold prices are trading near it resistance of $1960, if prices breaks above the levels then will see an upside move till $1980/$2000. Silver may trade in the range of $22.600-$25.900. Ahead in the week, gold may trade with positive bias but the rally looks overstretched a profit booking is expected from higher side which would be considered as buying opportunity and the range would be 55000-57500. Silver may trade in the range of 65000-72000.
Crude oil witnessed a positive rally amid rising Chinese demand, while the market wrote off a second straight week of large builds in U.S. crude inventories. Chinese oil demand climbed by nearly 1 million barrels per day (bpd) from the previous month to 15.41 million bpd in November, the highest level since February, according to the latest export figures published by the Joint Organisations Data Initiative. The IEA head Faith Birol said that energy markets could be tighter in 2023, especially if the Chinese economy rebounds and the Russian oil industry struggles under sanctions. Prices also came under pressure briefly after U.S. Energy Information Administration (EIA) data showed U.S. crude stocks last week rose by 8.4 million barrels, their biggest gain since June 2021. U.S. gasoline refining margins traded at a new fivemonth high for the fourth straight session on Thursday, amid optimism about rising travel demand from China's reopening and threats to refined products supply from strikes in France. There's just so much bullish sentiment out there, so much fear, that it keeps underpinning this market. Ahead in the week crude oil prices may witness positive move the possible trading range would be 6250-7090, buying on dips advised. Natural gas prices have witnessed sharp fall throughout the week because soaring production outpaced the demand and keep the prices pressurized. According to EIA’s estimates, LNG exports will stay flat once Freeport LNG comes back online, natural gas prices are expected to drop in Q2, also because U.S. production will continue to rise. Ahead in the week, prices are likely to take pause in the bearish rally and could take support near 220 and on the higher side, 280 remains a strong resistance.
Base metals may trade in narrow range as physical metal demand may slow during a long holiday break to celebrate the Lunar New Year during Jan. 23-27 in top buyer China. Weak U.S. retail and manufacturing data stoked fears that the world's top economy was headed for a recession, driving demand for the safe-haven dollar. However, supply concerns and demand optimism from hopes of an easing in rate hikes by the U.S. Federal Reserve may underpin the prices. China kept benchmark lending rates unchanged for a fifth month on Friday, as expected, but analysts say future cuts are possible as the central bank has pledged to support the COVID-ravaged economy. Copper may trade in the range of 760-790 levels. Low copper inventories and unrest in Peru, the world's second-biggest producer of mined copper, may support the prices. Chilean miner Antofagasta reported a 10.4% fall to 646,200 tonnes in 2022 copper output, as lower ore grades and a historic drought in Chile hurt production. Zinc can trade in the range of 285-310 levels. Lead can move in the range of 183-196 levels. Aluminum may trade in the range of 210-232 levels. China’s annual aluminium output in 2022 rose 4.5% from the previous year to a record high, official data showed, reaching 40.21 million tonnes with a boost from newly launched capacity and a relaxation of power supply restrictions. Steel long (Feb) is likely to trade in the range of 49000-52000 levels on NCDEX. The healthy domestic demand outlook is likely to benefit steel prices. To serve the growing domestic demand, local steel production will grow on the back of sustained high capacity utilisation levels.
Kapas NCDEX Apr prices are likely to extend their weakness on sluggish buying in local market. Higher stocks of kapas with farmers and sluggish export demand are likely to keep prices down in near term. Apart from that allowance of cotton imports from Australia will also boost the supplies and will put pressure on domestic prices. However, cotton arrivals are lower compared to last year as farmers are hoarding their produce in expectation of better price realization. In wake of supply tightness in physical market, Indian government has allowed duty-free import of 3 lakh bales of cotton from Australia. Kapas Apr NCDEX prices are likely to face resistance of 1650 and expected to correct from there towards 1570 levels.
Cotton seed oil cake NCDEX Feb futures are likely to trade mixed to down due to muted demand at physical market. Demand in cattle feed industry has been down wherein most of Stockists are going for the hand to mouth buying in wake of new crop season of mustard ahead. Mustard seed oil cake is used as substitute of cotton seed oil cake in northern part of India. Supplies of cotton seed oil cake is likely to higher as farmers are holding heavy stocks of cotton in anticipation of better price outlook. Prices are likely to trade in range of 2700- 2950 levels.
Guar seed Feb futures are likely to trade mixed to down as prices may witness some correction after increased supplies at major trading centers. Arrivals have started improving again after recent gains in prices. However, major trend in guar is likely to remain positive due to robust export demand for gum. India exported about 19 thousand tonnes of guar gum in month of Nov’22 compared to 16.9 thousand tonnes of previous year for corresponding period, higher by 13% Y-o-Y as per the data released by Ministry of commerce, India. India’s total guar gum export has reached up to 227.13 thousand tonnes till Nov’22 in year 2022 higher by 16% Yo-Y. Guar seed prices are likely to trade in the range of 5800-6600 levels. Guar gum prices are likely to trade in range of 12400-15100 levels.
Mentha oil Feb contract is likely to trade sideways to higher on improved demand outlook. With improved economic numbers in China, export demand for menthol will also improve that will cap the major downfall in prices. Supplies have been tighter due to offseason period of arrivals. Prices are likely to trade in range of 985-1060.
Castor seed Feb prices are likely to trade down due to improve supplies with advancement of harvesting activities. Sluggish export demand is still a major concern for castor oil traders as domestic stocks are surging up with fall in export. Castor oil export has slumped 16% Y-o-Y to 543.4 thousand tonnes during Jan-Nov’22 due to slowdown in economic activities in China. However, demand is likely to improve with ease in covid restrictions norms amid recent release of positive economic data in China. Going forward, castor seed prices are likely to trade in range of 6700-7300.
It closed at Rs. 6578.00 on 19th Jan 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 6543.20. On the daily chart, the commodity has Relative Strength Index (14-day) value of 57.737. Based on both indicators, it is giving a buy signal.
One can buy Crude Oil Feb 6600CE near Rs.300 for a target of Rs. 510 with the stop loss of 200.
It closed at Rs. 188.35 on 19th Jan 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 186.48. On the daily chart, the commodity has Relative Strength Index (14-day) value of 49.436. Based on both indicators, it is giving a sell signal.
One can sell below Rs. 186 for a target of Rs. 176 with the stop loss of 191.
It closed at Rs. 34820.00 on 19th Jan 2022. The 18-day Exponential Moving Average of the commodity is currently at Rs 29753.03. On the daily chart, the commodity has Relative Strength Index (14-day) value of 55.840. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 34500 for a target of Rs. 32000 with the stop loss of 35700.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
Pause was witnessed in commodities upside on ambiguity. Dollar index was trapped in a range of 101.51-102.9. Gold saw a pause in the rally and silver mirrored the same trend. Few Fed officials signaled on Wednesday that they would push on with more interest rate hikes. However, Philadelphia Fed President Patrick Harker and Dallas Fed President Lorie Logan said they supported a slower rate-hike pace. Market participants are mostly pricing in a 25-basis point rate hike in February. Natural gas witnessed free fall for continuous sixth week whereas crude oil was unable to stay at the higher side. In two months time span, natural gas witnessed free fall from 600 to below 260 levels. Expectation of resumption of Freeport terminal is adding the bearish pressure. This will flood the markets with even more supply, and of course at the same time temperatures are much milder than would be expected for this time a year in multiple places, most importantly Europe. Crude oil managed to close up. In base metals, zinc, copper and aluminum managed to close up while lead couldn’t sustain at higher levels on weaker growth of China. Data on Wednesday showed U.S. producer prices fell more than expected in December, offering more evidence that inflation was receding. U.S. retail sales fell by the most in a year in December, putting consumer spending and the overall economy on a weaker growth path heading into 2023. However, LME copper was on track for a weekly gain and has risen 33% in past six months on bets of a demand recovery in top consumer China after it removed COVID-19 restrictions and amid expectations of a slowdown in the pace of U.S. rate hikes.
In agri commodities, cotton oil seed cake continued its downward journey despite lower production news. Downward revision of production of by Cotton Association of India and below normal supplies in the market will support firmness in the prices. The Cotton Association of India (CAI) lowered the cotton crop output estimate by 9.25 lakh bales for the 2022-23 season to 330.50 lakh bales as production is expected to decline in Maharashtra, Andhra Pradesh and Karnataka. Mentha oil too traded weak on dull activities in the spot market. Export demand for menthol is down; it has put pressure on the prices. Castor rally halted after three week rise. Guar counter too traded weak on fall in the energy counter; however the fall was limited on robust demand. India exported about 19 thousand tonnes of guar gum in month of Nov’22 compared to 16.9 thousand tonnes of previous year for corresponding period, higher by 13% Y-o- Y as per the data released by Ministry of commerce, India. India’s total guar gum export has reached up to 227.13 thousand tonnes till Nov’22 in year 2022 higher by 16% Yo-Y. Jeera rally halted; dhaniya too traded weak but turmeric flavored the portfolio with its upside.
Nowadays the concern about global growth has become a nightmare and continues to haunt world leaders and economists. Global growth is slowing sharply in the face of elevated inflation, higher interest rates, reduced investment and disruptions caused by Russia’s invasion of Ukraine. Considering the fragile economic conditions, any new adverse development—such as higher-than-expected inflation, abrupt rises in interest rates to contain it, a resurgence of the COVID-19 pandemic, or escalating geopolitical tensions—could push the global economy more into recession. This would mark the first time in more than 80 years that two global recessions have occurred within the same decade.
Warning of World Bank
The World Bank slashed its outlook for worldwide economic growth this year and warned that it would not take much to tip the global economy into a recession. The bank now projects global gross domestic product (GDP) will increase 1.7%, down from its earlier estimate of 3%. It also reduced its guidance for 2024 to a gain of 2.7%.
Growth in US & Europe
Growth in advanced economies is projected to slow from 2.5% in 2022 to 0.5% in 2023. In the United States, growth is forecast to fall to 0.5% in 2023—1.9 percentage points below previous forecasts and the weakest performance outside of official recessions since 1970. In 2023, euro-area growth is expected at zero percent—a downward revision of 1.9 percentage points.
Growth in China
China’s GDP grew just 3% in 2022, the slowest rate since 1976, barring the 2.2% rate registered in the initial pandemic year of 2020. The growth missed Beijing’s official growth target, which at 5.5 per cent was already the lowest in decades. The growth is projected at 4.3% in 2023—0.9 percentage point below previous forecasts. The country faced recurrent COVID-19 outbreaks and mobility restrictions, unprecedented droughts, and prolonged stress in the property sector, all of which restrained consumption, food and energy production, and residential investment. Although China’s economy is expected to recover in 2023 as the country reopens to the world, the scale of the challenge China facing after three years in which farreaching Covid controls took precedence over growth.
Excluding China, growth in emerging market and developing economies is expected to decelerate from 3.8% in 2022 to 2.7% in 2023, reflecting significantly weaker external demand compounded by high inflation, currency depreciation, tighter financing conditions, and other domestic headwinds.
Impact on Commodities
The commodities market is expected to decline in 2023 as slowing global growth leads to a drop in the prices of energy, metals and agricultural products, the World Bank Group projected in its latest commodities market report. Crude oil prices are projected to moderate to an average of $88 per barrel in the year under review, which is $4 per barrel below previous projections. It noted that Russian oil exports are expected to fall in 2023 due to additional EU sanctions that started in December 2022 for crude oil and will begin in February 2023 for oil products. The base metal prices are also likely to decline in 2023, pressured by weakness in China’s property market, resulting in decreased demand in the world’s largest metal consuming nation. Gold's outlook is likely to be influenced by the upcoming U.S. inflation report. A further cooling in prices in December and lower bond yields would be a welcome development for zero-yielding gold.
The agricultural prices are projected to drop 5 per cent in 2023 after rising 13 percent in 2022, largely reflecting better global production prospects and easing input costs.
The Indian Rupee is set to close the biggest weekly gains since early October, 2022 after a series of corporate dollar inflows helped to hit a high of 81.20 vs the dollar despite FIIs selling nearly $1.85 billion in the first 15 days of January. On top of that, the Dollar Index fell to seven-month lows in anticipation of an economic slowdown in the US, which may push FOMC members to go for a pause in rate hike prospects. Going forward USD/INR may hit 81.00 and the key is to watch whether RBI will protect 81.00 or not. If RBI failed to protect the 81.00 level then we can expect the rupee to head north towards 80.50 - 80.60 in the coming days. This week the main attraction was the Bank of Japan's monetary policy outcome where the yen faced substantial volatility after the BoJ maintained its ultra-loose monetary policy stance. However, Japan’s core inflation hit a fresh 40-year high of 4.00% in December on a year-on-year basis which is just double the conventional inflation target of 2.0%. Such data may push the Bank of Japan to end the ultra-loose monetary policy which can be a big trigger for the markets to face high volatility. Going forward, we think the volatility will stay higher and a wide swing is expected notably in the euro and pound as well.
USDINR (JAN)is trading below its major Exponential Moving Average indicating downwards trends for short term view. The Pair has major support placed around 80.58 levels while on higher side resistance is seen around 82.03 levels. The 21-day Exponential Moving Average of the USD/INR is currently around 82.02 Levels. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 34.72.
One can sell on bounce near 81.50 for the target of 80.50 with the stop loss of 82.00.
GBPINR (JAN)is trading above its major Exponential Moving Average indicating upwards trends for short term view. The pair has major support placed around 99.58 levels while on higher side resistance is seen around 101.25 levels. The 21-day Exponential Moving Average of the GBP/INR is currently around 99.85. On the daily chart, the GBP/INR has Relative Strength Index (14-day) value of 57.30.
One can buy on dip near 100.25 for the target of 101.25 with the stop loss of 99.75.
EURINR (JAN) is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 87.00 levels while on higher side resistance is seen around 88.75 levels. The 21-day Exponential Moving Average of the EUR/INR is currently around 87.92. On the daily chart, the EUR/INR has Relative Strength Index (14-day) value of 54.05.
One can buy on dip near 87.75 for the target of 88.75 with the stop loss of 87.25.
JPYINR (JAN) is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 62.08 levels while on higher side resistance is seen around 64.05 levels. The 21-day Exponential Moving Average of the JPY/INR is currently around 62.62. On the daily chart, the JPY/INR has Relative Strength Index (14-day) value of 55.10.
One can sell on bounce near 63.25 for the target of 62.25 with the stop loss of 63.75.
The Rs 20,000 crore follow-on public offer (FPO) of Adani Enterprises will open for subscription on January 27 and will close on January 31. Billionaire Gautam Adani led the company and announced Rs 3,112-Rs 3,276 price band for the country’s biggest FPO. The company, one of India’s largest listed business incubators in terms of market capitalisation, will use the proceeds from the FPO to repay debts and to meet its capital expenditure requirements, said the company in its Red Herring Prospectus. Of the Rs 20,000 crore proceeds of the FPO, Rs 10,869 crore will be used for green hydrogen projects, work at the existing airports and construction of a greenfield expressway. Another Rs 4,165 crore will go towards repayment of debt taken by its airports, road and solar project subsidiaries. “As of September 30, 2022, we had Rs 40,023.50 crore in borrowings from banks and financial institutions, comprising term loans (including foreign currency borrowings), working capital loans and trade/supplier credits, net of unamortised costs and borrowings from related parties,” said the company in its prospectus. “We propose to utilise an amount of Rs 4,165 crore from the Net Proceeds towards repayment of borrowings of our company three of our subsidiaries, namely, Adani Airport Holdings Limited, Adani Road Transport Limited, and Mundra Solar Limited,” it added. The company has announced a discount of Rs 64 per share in the FPO for retail investors bidding in the retail portion of the offer, said the company in a filing to the BSE. Under the FPO, the employee quota for Adani Enterprises has been fixed at 5%, retail at 35% and the non-institutional quota has been fixed at 15%. The company will issue fresh shares on a partly-paid basis under a 100% book-built offer.
Pharmaceutical companies Innova Captab and Blue Jet Healthcare have received approval from the capital markets regulator to go ahead with their IPO plans. The Sebi issued an observation letter to Innova Captab on January 11 and Blue Jet Healthcare received the same letter on January 9, as per updates available with the regulator on January 13. According to Sebi, the issuance of observation letter indicates that a company can go ahead with its plans to go public. The Innova Captab public issue comprises a fresh issue of Rs 400 crore and an offer-for-sale of 96 lakh equity shares by promoters. Promoters Manoj Kumar Lohariwala and Vinay Kumar Lohariwala, and investor Gian Parkash Aggarwal plan to sell 32 lakh shares each through an offer for sale. Around 69.75 percent shareholding is now held by promoters and the rest is with Gian Parkash Aggarwal, the public shareholder. The company has three business divisions - one is CDMO (contract development and manufacturing organisation) segment, second is domestic branded generics business, and the last is international branded generics business. The fresh issue proceeds will be utilised by the company for repaying debts and working capital requirements, besides general corporate purposes. ICICI Securities and JM Financial are the merchant bankers to the offer.
Rashi Peripherals, an information and communications technology products distributor, has filed the draft red herring prospectus with the capital markets regulator Sebi to raise Rs 750 crore through an IPO. The public issue will be entirely a fresh issuance of shares and there is no offer-for-sale component. The company will use the proceeds to repay debt (Rs 400 crore), meet working capital requirements (Rs 200 crore) for general corporate purposes. Rashi Peripherals may also consider raising Rs 150 crore through private placement of equity shares. If the company raises funds in a pre-IPO placement, the fresh issue size will be reduced accordingly, it said. The company has little more than Rs 1,000 crore of debt as of September 2022.
Electronic manufacturing services and solutions provider Cyient DLM has filed the draft red herring prospectus (DRHP) with the capital market watchdog Sebi to raise funds through an initial public offering (IPO). The wholly-owned subsidiary of IT services company Cyient is looking to raise Rs 740 crore through a fresh issue of equity shares, the company said on January 10. It may also consider raising up to Rs 148 crore by way of private placement, rights issue, preferential offer or any other method before the filing of the red herring prospectus with the Registrar of Companies. If it raises funds through the pre-IPO placement, the fresh issue size will be reduced accordingly. The qualified supplier to global original equipment manufacturers (OEMs) in aerospace and defence, medical technology and industrial sectors will utilise funds to meet working capital requirements and expenditure.
JG Chemicals Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India (Sebi) to raise funds through an initial public offering. The IPO consists of a fresh issue of Rs 202.50 crore and an offer-for-sale of up to 5.70 million shares by its existing shareholders and promoters. The OFS comprises up to 3.64 million shares by Vision Projects and Finvest Pvt Ltd, 1.4 lakh shares by Jayanti Commercial Ltd, 1.27 million shares by Suresh Kumar Jhunjhunwala (HUF) and 6.5 lakh shares by Anirudh Jhunjhunwalal (HUF). The proceeds from the fresh issue will be used for investment in its material arm BDJ Oxides. The company will use Rs 45 crore for repayment of debt, Rs 5.31 crore to set up a research and development centre, Rs 65 crore for funding its long-term working capital requirement for its subsidiary and Rs 35 crore for its own long-term working capital requirement. As of December 2022, the total outstanding borrowings of BDJ Oxides amounted to Rs 54.65 crore. Centrum Capital, Keynote Financial Services Ltd and Emkay Global Financial Services are the book running lead managers to the issue.
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WhiteOak Capital Mutual Fund today announced the launch of its new fund offer (NFO) - ‘WhiteOak Capital Balanced Advantage Fund’. The NFO will be open from January 20 to February 3rd. This is an open-ended dynamic asset allocation scheme investing in equities (65-100%), arbitrage (0-50%), and debt/cash in the range of 0-35% with weight of net equities in the range of 30-80%. The scheme will be benchmarked against BSE Sensex TRI. According to the press release, the fund house’s proprietary model will provide broad guidance regarding the relative valuation levels and scope of the asset allocation opportunities in the market. The fund house said that the model will help earn better returns by: reducing downside during a falling market, providing reasonable participation in a rising market and providing a stable investment option under various market conditions.
Baroda BNP Paribas Mutual Fund has launched the Baroda BNP Paribas NIFTY SDL December 2026 Index Fund, an open-ended Target Maturity Index Fund tracking the NIFTY SDL December 2026 Index. The fund will be managed by Mayank Prakash and will be benchmarked against the NIFTY SDL December 2026 Index. The fund has no entry or exit load. The NFO is open and it will close for subscription on January 23. The scheme will have two Plans: Regular and Direct. Each Plan offers growth option and income distribution cum capital withdrawal (IDCW) option. The maturity of the scheme will be December 31, 2026. According to the press release, the fund will invest in a trio of fixed maturity, easy liquidity, and high-quality funds. It is suitable for investors who are looking to generate income, their investment horizon matches with the maturity date of the fund and have a moderate risk appetite.
Aditya Birla Sun Life Mutual Fund has announced the launch of Aditya Birla Sun Life Multi Asset Allocation Fund, an open-ended scheme investing in equity, debt and commodities. The fund will focus on diversifying its investments across a variety of asset classes. The NFO will be open for subscription from January 11 to January 25. According to the press release, the equity portion of the portfolio will follow a flexi cap approach with a large cap bias and can invest across sectors / themes. The fixed income portfolio will largely use Accrual strategy. The fund house will maintain a 65-80% allocation to equity,10-25% to fixed income and a 10- 25% allocation to commodities.
Tata Asset Management has launched the Tata Multicap Fund, an open-ended equity scheme investing across large cap, mid cap, small cap stocks. The New Fund Offer (NFO) opens for subscription on January 16 and closes on January 30. Thereafter the scheme re-opens for continuous sale and repurchase after allotment. The scheme will be benchmarked against Nifty 500 multicap 50:25:25 total returns index and will offer two plans - regular and direct. The fund will be managed by Rahul Singh (Equity), Tejas Gutka (Equity), Murthy Nagarajan (Debt) & Arvindkumar Chetty (Overseas). “Tata Multicap Fund focuses on combinations - across Market Caps, Strategies, Themes and Sectors with Growth at Reasonable Price or GARP as the underlying philosophy aiming to improve the risk adjusted returns of the overall portfolio and potentially provide a smoother journey to the investor. We believe that the Tata Multicap fund can be well paced to capture the potential of a broad-based economic growth outlook for India over next 3-5 years,” says Rahul Singh, CIO - Equities, Tata Asset Management.
Contributions to mutual fund schemes through systematic investment plans or SIPs remain unfazed from the market volatility in 2022 with inflow growing to Rs 1.5 lakh crore in 2022, a surge of 31 per cent from a year earlier, due to higher retail participation. In comparison, an inflow of Rs 1.14 lakh crore through the route was registered in 2021 and Rs 97,000 crore in 2020, data with the Association of Mutual Funds in India (AMFI) showed. Going ahead, SIP numbers are expected to continue to remain strong in 2023 as investors are increasingly appreciating the importance of regular investing through the route, Kaustubh Belapurkar, Director - Manager Research at Morningstar Investment Adviser India, said.
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