In the week gone by, global stock market remained cautious on concerns over developments in Afghanistan, amid expectation of a potential shift in US Federal Reserve policy in speech at Jackson Hole Economic Symposium. The US economy grew at a robust 6.6% annual rate last quarter, slightly faster than previously estimated, the government said Thursday in a report that pointed to a sustained consumer-led rebound from the pandemic recession. Back in Europe, European Central Bank Chief Economist Philip Lane said on Wednesday that economic impact from the spread of the delta Covid-19 variant is likely to be limited across the euro zone, which remains on course for a robust recovery through 2022. Profits at China’s industrial firms grew at a slower rate of 16.4% on year to 703.67 billion yuan ($108.6 billion) in July, the statistics bureau said, as elevated commodity prices and supply chain constraints from extreme weather weighed on the sector.
Back at home, the domestic stock market also remained cautious ahead of monthly derivative expiry amid weak global cues and sustained foreign fund outflow. Actually, Indian stock markets join hands with global markets for a wait and watch mood ahead of Powell’s speech in Jackson Hole. India’s economy held steady in July as waning Covid-19 cases paved the way for a gradual improvement in manufacturing and services activity. Factory managers in India saw a surge in activity in July, reflecting a pick up in orders as pandemic curbs were lifted. Exports rose 49.8% year-on-year in July. While that was way slower than the 196% increase seen in April, the ebbing gains largely reflect the base effect wearing off. Of late, Finance minister has launched a four-year road map for a Rs 6-lakh-crore asset monetisation plan. A large chunk of this will be through brownfield assets of central ministries and public sector entities across roads, railways and power. Moreover, there is a buzz that the government is open to the idea of tweaking tax rates on automobiles to increase their affordability. Finance minister has asked state-run banks to step up credit flow and hold outreach programmes across India from October to give further momentum to the government’s stimulus packages. Drought conditions are on the horizon as total monsoon rainfall since the season began on June 1 is 10% below normal. Going forward market will take direction from outcomes of macroeconomic data, Inflow and outflow of Foreign as well as domestic institutional fund, crude oil prices and Rupee movement amid global factors.
On the commodity market front, CRB is gradually crawling towards its recent high of 235.14, despite sudden rise in dollar index. Market attention focused on the Federal Reserve's Jackson Hole conference, when some investors expect Fed Chair Jerome Powell to hint at a possible timeline for tapering the U.S. central bank's bond-buying monetary stimulus. Dollar saw a wild swing. Concerns about the global COVID-19 outbreaks involving the virus’ Delta variant continue to cloud the outlook for fuel demand and commodities in general. Bullion should trade in a range and gold is likely to trade in 46500-48500 levels. In energy counter, natural gas is showing upward momentum and has potential to touch 320 on higher side. Inflation Rate YoY Prel and Unemployment Change of Germany, NBS Manufacturing PMI of China, GDP Growth Rate YoY Final of Italy, Core Inflation Rate YoY Flash of Euro Area, GDP Growth Rate Annualized of Canada, CB Consumer Confidence, Non Farm Payrolls and Unemployment Rate of US, GDP Growth Rate YoY of Australia, Switzerland, etc are important triggers for commodities.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
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slightly lower electrode volumes due to the onset of second wave of the pandemic in India.
Graphite India is well poised in the global graphite electrode industry through its quality, scale of operations and low cost production base. Looking ahead, Graphite India is well positioned to cater to the growing demand for electrodes and maintain its strong liquidity and balance sheet position. The recent announcement of the increased government spending on Indian infrastructure and the revival of key sectors such as construction, mining, capital goods and automobiles could have a positive impact on steel production and electrodes demand. Thus, it is expected that the stock will see a price target of Rs.744 in 8 to 10 months’ time frame on a
The company is doing well in EPC segment with its good order book, healthy return ratios and clean balance sheet. The company is one of the key beneficiaries of the government’s continuous thrust on road sector. The company has been strengthening its balance sheet with rising cash balances and improving working capital levels. The management of the company has guided for sustaining current margins and key focus would be on road (EPC, HAM, both) with some inflows expected from other infrastructure verticals. Thus, it is expected that the stock will see a price target of Rs.356 in 8 to 10 months’ time frame on an one year average P/BVx of 2.70x and FY22 BVPS (Book Value per Share) of Rs.131.72.
The stock closed at Rs 2885.35 on 27th August, 2021. It made a 52-week low at Rs 1081.85 on 31st August, 2020 and a 52- week high of Rs. 3001 on 23rd August, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1929.52.
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, which is bullish in nature. Apart from this, the stock has formed a “bullish engulfing pattern on daily charts and RSI indicator has formed a bullish reversal at 60 levels which also indicates strength in price. Therefore, one can buy in the range of 2850-2870 levels for the upside target of 3200-3400 levels with SL below 2630 levels.
The stock closed at Rs 3807.05 on 27th August, 2021. It made a 52-week low of Rs 1880.00 on 08th September, 2020 and a 52-week high of Rs. 4015.00 on 26th July, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 3058.92.
The stock prices has formed a big bullish candle on 27th August, 2021 where prices have given take support at 3,550 levels and has also give a break above bullish triangle pattern with RSI ( relative strength index ) reversing from 40 levels.The stock has also closed near the high point on daily & weekly basis.The overall trend of the stock has been bullish on Daily, Weekly & Monthly time frame.We expect an initial rally near the 52 high near 4,015 levels there after expecting 4,200-4,400 on charts in near term as long as support are intact. Therefore, one can buy in the range of 3730-3760 levels for the upside target of 4300-4400 levels with SL below 3530 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
Indian markets began September series on a positive note as Nifty hit record highs and managed to close above 16700 levels for first time. Mid cap index continued its upside momentum along with IT and FMCG counter. Banking stocks however once again remained laggard during the week. The Implied Volatility (IV) of calls closed at 10.76% while that for put options closed at 11.45%. The Nifty VIX for the week closed at 13.54% and is expected to remain volatile. PCR OI for the week closed at 1.41. From the technical front, Banking index is facing strong hurdle in zone of 36000-36300 levels above which we expect Banking counter is likely to join the rally which could take Bank nifty towards 37000 levels as well. Till then some consolidation in prices can be expected at current juncture. From the derivative front, put writers were seen adding hefty open interest at 16600 & 16700 strike which points towards strength in current rally. On higher side now 16850-16900 zone would act as immediate hurdle for Nifty.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric futures (Sep) touched 5-month high recently but fell due to profit booking at higher levels. The weekly trend is still positive and the prices may again trade towards 8700 levels after come corrections. Now the support is seen at 7950 levels. Turmeric in Nizamabad prices have improved over the week to now at 7660 per 100 kg. Good steady demand from upcountry traders and export enquiries keeping prices supported. Turmeric crop is in good conditions in all southern states and Maharashtra thus expecting very good production next season. However, due to its medicinal and other immunity related benefits the demand for turmeric has increased world over. Jeera futures (Sep) touched 7-month high last week but falls on profit booking. We expect some correction till 14500 levels before moving higher. There is a good demand from the physical market players as they fulfill their stocks requirements before the festival season. Due to surge in prices we see improve in arrivals in Unjha mandi. Due to below normal rains in Gujarat there is fear of production loss in coming season. Jeera exports have been good this year as country exported more than 1.20 lakh tonnes of jeera compared to 90,000 tonnes last year same time. Dhaniya futures (Sep) touched 6-years high last week but slipped due to profit booking. Now the strong support is at 7700 levels. If it holds this level the price may move higher again. Prices in spot market have increased significantly last week amid stockists' interest and regular purchasing by the spice mills and also market anticipates lesser crop in coming season due to deficient rain. An increase in export demand is also boosting prices.
Gold stabilised after a sharp retreat, taking a firmer dollar in its stride as investors looked forward to the U.S. Federal Reserve’s stance on tapering economic support at its Jackson Hole symposium. Bullion slipped as much as 1.2% and below the key $1,800 mark on 25th Aug as a stronger dollar dented its appeal. The probability most people are looking at is that the Fed signals a stronger economy and some tapering in the next year or two years, and that’s hanging over the gold market. A Fed interest rate hike would dull bullion’s appeal compared with interest-earning assets. Gold’s modest gains came despite Bullard’s comments adding to the dollar’s strength and pushing benchmark Treasury yields up. Higher yields increase the opportunity cost of bullion, which pays no interest. Federal Reserve’s hawkish policymakers urged the central bank to begin paring bond purchases they feel have become ineffective, if not downright harmful. St. Louis Fed president James Bullard, along with Kansas City Fed president Esther George and Dallas Fed president Robert Kaplan, also downplayed the impact of the Delta variant in separate interviews, a day before Chair Jerome Powell’s remarks at the annual Jackson Hole Economic Policy Symposium. China’s net gold imports via Hong Kong fell nearly 29% in July after a sharp rise in June, Hong Kong Census and Statistics Department data showed. Caution also set in the market following Islamic State’s suicide bomb attack on Thursday at Kabul airport that killed scores of civilians and at least 13 U.S. troops. Ahead in the week, gold may trade in the range of 45600-48400 & silver in the range of 61000-65000.
Soybean futures (Sep) witnessed some pressure at higher levels and thus likely to see some more correction towards 7100/7000 levels with resistance at 8700. To control soybean prices, which touched a record 10,000, Govt allowed import of 12 lakh tonnes of soybean meal to support poultry industry. Soybean crop is in good conditions till now and required one or two more showers for a good production scenario for next season. Soybean area is at 116.33 lakh ha higher compared to normal sowing area but behind last year area by 2.3 lakh hac. RM Seed futures (Sep) expected to trade lower in the coming week due to technical selling. We expect it to trade 7600 levels with resistance at 8100. In the physical market, processors are very careful in buying at high prices which limits demand in spot and put pressure on the price. Export of rape meal increased to 4.8 lt Vs 4.4 last year this season (Apr-Jul). Edible oil prices hold on to its higher levels and expect to trade sideways in coming week. Ref Soy oil futures (Sep) is likely to trade in a range 1440/1360 while CPO futures (Sep) is likely to correct towards 1130/1120 levels with resistance at 1160. To reduce domestic prices of edible oil government announced cut in the import duty of Soybean oil and Sunflower oil. Country is importing more palm oil from Indonesia but it has also increased the export tax by 13% in September. In India, the stock of edible oil is sufficient as it is higher by 44% as compared to last year same time and with the fear of 3rd wave, stockists are also not taking chance to stock more edible oil. Import of edible oil in July was down 39.5% y/y.
Crude Oil prices rose extending gains for a third session, after U.S. government data showed that fuel demand climbed to its highest since the start of the COVID-19 pandemic. The four-week average for U.S. total product supplied, a proxy for fuel demand, soared to nearly 21 million barrels per day, its highest since March 2020, when governments first began to widely impose pandemic-related restrictions, U.S. EIA data showed. Refiners have ramped up production to 92.4% of operable capacity, the highest since late June, helping send U.S. crude inventories to the lowest since January 2020. Over the last few sessions, both Brent and WTI have risen around 10%. The rally has mostly erased last week's slump that was triggered by a resurgence in COVID- 19 cases. While volatility looks set to continue, we see further gains for oil as global economic normalization continues and OPEC remains disciplined on crude supplies. In a sign that the spread of infections from the coronavirus Delta variant was easing in China, the world's largest oil importer, the country reported just 20 new confirmed coronavirus cases for Aug. 24, down from 35 a day earlier. Ahead in the week crude may trade in the range of 4800-5400. Natural-gas futures rallied to post their highest finish since late 2018, as a smaller-than-expected weekly rise in U.S. supplies of the fuel fed concerns over tight supplies and a storm system looked to threaten energy operations in the Gulf of Mexico. Natural-gas supplies are already too far below the fiveyear average and with the “lack of U.S. production and strong global demand, it is unlikely that we’re going to go into this winter with adequate supplies to avoid price spikes during cold snaps. Ahead in the week prices may continue to trade higher and the range would be 290-330 levels.
Cotton futures (Oct) was on correction mode last week and expected to trade sideways to lower in the range of 26700 – 25300 levels. Market is looking for updates on demands from the mills as the prices have already factored for the production estimates and weather risk for the coming season. US cotton traded lower due to weak export data particularly for the China the crop situation is good in most parts. Cotton prices were stable in the markets of Gujarat since last week amid limited buying by spinning mills and Multinational companies (MNCs). Currently, the cotton sowing area is lower but the crop condition is good in all states and production is expected at 360 lakh bales with the carryover stock lowest in last few years. Guar seed futures (Sep) were very volatile last week . After touching 6-year high, we have seen aggressive profit booking. We expect some more corrections towards 5500/5300 levels before marching forward. The production is expected to decline this year too due to deficiency of rain in Rajasthan. The area under guar seed as on 17-Aug was 20 lakh hac as compared to 23.9 l hac last. Moreover, the exports of guargum and domestic demand for Churi and Korma keeping prices supportive. Castor Seed (Sep) futures witness aggressive correction after it reached ali-time high price of 6784 last week. We expect more corrections today towards 5900 levels with resistance at 6400 levels. Insufficient rains in Gujarat may limit castor production this year. Castor oil exports in June was largest export in a single month at 81750 tonnes. In last 6- months, India export 3.6 lakh tonnes of castor oil Vs 3 lt last year. Export demand and constant industrial use for castor oil will keep prices at record levels.
Base metals may trade in range with positive bias on signs of strong demand in top consumer China and a steep decline in inventories available in the LME warehouse system. High inflation expectations, falling inventories, higher Chinese import premiums and a positive demand outlook are all supporting prices. However the much-awaited Jackson Hole meeting could unveil plans to cut stimulus in the world's biggest economy and boost the dollar which can pressurise metals markets. Also weighing on prices was July profit growth at industrial firms in top metals consumer China, growing at its slowest clip this year as high raw material prices and supply chain constraints from extreme weather and sporadic cases weighed. Copper may trade in the range 690-730. The prices are expected to be supported by the potential for near-term supply disruptions in Chile, a recovery in ex-China demand and indications of continued Chinese government support for the economy and employment. Global copper mine production rose by 4.8% during the first five months of the year. Zinc can move in the range of 240-252. Lead can move in the range of 174-180. Nickel may trade in the range of 1360-1440 with firm note. While combined nickel production is expected to post a surplus in 2021 due to increasing supply from Indonesia in the second half, Bank of America expects tightness in refined Class 1 nickel for the year, with a deficit of 41,000 mt compared with a growing surplus for Class 2 nickel Pig Iron. Aluminum may move in the range of 202-212 on supply disruption risks, as five aluminium smelters in China's Xinjiang region were told to impose output limits from this month.
LEAD MCX (SEP) contract closed at Rs. 177.05 on 26th Aug’2021. The contract made its high of Rs. 180.95 on 12th Aug’2021 and a low of Rs. 176.00 on 06th Aug’2021. The 18- day Exponential Moving Average of the commodity is currently at Rs 178.34. On the daily chart, the commodity has Relative Strength Index (14-day) value of 42.514.
One can sell near Rs. 178 for a target of Rs. 170 with the stop loss of Rs. 182.
GOLD MCX (OCT) contract closed at Rs. 47237.00 on 26th Aug’2021. The contract made its high of Rs. 50040.00 on 02th Jun’2021 and a low of Rs. 45662.00 on 11th Aug’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 47208.23. On the daily chart, the commodity has Relative Strength Index (14-day) value of 45.393.
One can sell near Rs. 47150 for a target of Rs. 45500 with the stop loss of Rs. 47975.
REF. SOYA NCDEX (SEP) contract was closed at Rs. 1407.60 on 26th Aug’2021. The contract made its high of Rs. 1433.00 on 16th Aug’2021 and a low of Rs. 1147.00 on 25th Aug’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 1398.33. On the daily chart, the commodity has Relative Strength Index (14-day) value of 56.065.
One can sell near Rs. 1410 for a target of Rs. 1320 with the stop loss of Rs 1455.
CRB is gradually crawling towards its recent high of 235.14, despite sudden rise in dollar index. Market attention focused on the Federal Reserve's Jackson Hole conference on Friday, when some investors expect Fed Chair Jerome Powell to hint at a possible timeline for tapering the U.S. central bank's bond-buying monetary stimulus. Dollar saw a wild swing. In the first half of the week, it saw quick gain and breached 93 levels whereas in the second half it slipped from the higher side amid optimism the Delta coronavirus variant won't derail a global economic recovery. Oil prices extended Monday's rally, driven by a bullish demand outlook after the full approval of the Pfizer-BioNTech vaccine and Mexico suffered a large production outage. Investors have turned more positive on the outlook since the U.S. Food and Drug Administration fully approved the COVID-19 vaccine made by Pfizer and BioNTech on Monday, in a move that could accelerate U.S. inoculations. A fire that broke out earlier in the week in Mexico that knocked a little over 400,000 barrels per day (bpd) of production, gave the black liquid a boost. Gold gave up its early profit; settled back below the $1,800 mark, on vaccine optimism and the benchmark 10-year Treasury yield touching 1.352% for the first time since Aug. 13. Copper prices surged, helped by signs of strong demand in top consumer China and a steep decline in inventories available in the London Metal Exchange (LME) warehouse system. The global zinc market was under-supplied by 20,200 tonnes in June following a revised deficit of 23,500 tonnes in May, International Lead and Zinc Study Group's data showed. China’s curbs on carbon emissions include limits on the output of steel, hurting demand for the raw material used to produce it. Prices for aluminium raw material alumina have hit their highest in almost six months after a blaze at the Jamalco refinery in Jamaica led to fears of tighter supply.
In agri counter, guar and castor stole the shine with its super rally. Good demand from upcountry traders and export enquiries kept turmeric prices supported. In last 6-months, India export 3.6 lakh tonnes of castor oil Vs 3 lt last year. Deficient rainfall in Gujarat, export demand and constant industrial use stimulated buying. There is good demand from the physical market players to fill their stocks before the festival season. It augmented jeera prices. In a new development, mustard is now trading on premium and it continuously traded up for seventh week whereas soybean witnessed seesaw movements. To control soybean prices Govt allowed import of 12 lakh tonnes of soybean meal to support poultry industry. Soybean area is at 116.33 lakh ha higher compared to normal sowing area but behind last year area by 2.3 lakh hac. India's export of soymeal, declined 57% Y/Y to 26,725 tons in July due to higher prices and lower availability. Edible oil futures traded firm. To reduce domestic prices of edible oil government announced cut in the import duty of Soybean oil and Sunflower oil.
Copper is often viewed as a barometer of economic demand given its use in a broad number of industrial applications. Copper prices have rallied this year as demand for the metal, which is used in the production of electric vehicles, is expected to rise partly on the global push for a green economy.
Copper mine production
Refined copper production
Global usage of copper
Copper price slides
After reaching an all-time high of over $10,700 per metric ton in May, the copper price has retreated since then. The copper price has cooled significantly in recent weeks, even amid several supply-side concerns.
Indian Rupee remains largely stable in this week in the absence of major trigger in the global markets. Additionally IPO flows remains dry in last few days which prevent rupee to appreciate beyond 74.00. Ahead of Jacson Hole Symposium where Fed’s chair is likely to guide the bond tapering timeline will guide the dollar move across the board. Apparently 74.50 on spot is the crucial resistance for the USDINR pair and may cross in the coming days, if Fed’s remains hawkish more than current expectations. On the majors, EURUSD bounced off a key level of support around 1.1729 this week. Ahead of Jackson Hole, euro remains subdued and may react after the Fed’s stance of tapering. Meanwhile Euro zone data this week were not supportive starting from business confidence in Germany has fallen for a second consecutive month, as concerns mount over potential supply bottlenecks caused by the resurgence of Covid cases. Business expectations in particular for the next six months dropped to a six-month low. Consumer confidence also failed to meet expectations to print at -1.2 this morning. We will remain negative in EURINR and may fall below 87.00 barring any major surprises do not hit in dollar after Jackson Hole.
USD/INR (SEP) contract closed at 74.4325 on 26-Aug-21. The contract made its high of 74.9275 on 25-Aug-21 and a low of 74.2350 on 24-Augl-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 74.6405.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 41.41.One can buy at 74.00 for the target of 75.00 with the stop loss of 73.50.
GBP/INR (SEP) contract closed at 102.3275 on 26-Aug-21. The contract made its high of 102.4775 on 26-Aug-21 and a low of 101.7200 on 23-Aug-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 102.9540.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 35.11. One can sell at 102.25 for a target of 101.25 with the stop loss of 102.75.
| 26th AUG | ECB holdouts dissented on new policy guidance, minutes show |
| 26th AUG | US and UK tell citizens to avoid Kabul airport |
| 25th AUG | UK minister backs Chinese investment only ‘to our advantage’ |
| 25th AUG | Biden refuses to extend Afghanistan evacuation deadline |
| 24th AUG | German business confidence falls as concerns mount |
| 24th AUG | IMF chief: how the world can make the most of new special drawing rights |
| 23rd AUG | UK recovery slows due to staff shortages and supply chain issues |
| 23rd AUG | Strong expansion in euro zone business activity boosts hiring |
| 23rd AUG | Global economic data disappointments add to rising growth angst |
EUR/INR (SEP) contract closed at 87.6875 on 26-Aug-21. The contract made its high of 87.7025 on 26-Aug-21 and a low of 87.3325 on 23-Aug-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 87.9529.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 31.65. One can buy at 87.25 for a target of 88.25 with the stop loss of 86.75.
JPY/INR (SEP) contract closed at 67.6725 on 26-Aug-21. The contract made its high of 68.0200 on 23-Aug-21 and a low of 67.5875 on 26-Aug-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 67.9303.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 45.00. One can sell at 67.80 for a target of 66.80 with the stop loss of 68.30.
Aptus Value Housing Finance India shares made a weak debut as the stock listed at a 6.5 percent discount to issue price of Rs 353 per share. The stock opened at Rs 329.95 on the BSE and at Rs 333 on the National Stock Exchange. The initial public offering of the retail-focussed housing finance company saw a healthy subscription of 17.20 times during August 10-12. The offer was largely supported by institutional and non-institutional investors as portions reserved for them were subscribed 32.41 times and 33.91 times, respectively. The retail portion was booked 1.35 times. The company raised Rs 2,780 crore through its public issue that consisted of a fresh issue of Rs 500 crore and the remaining Rs 2,280 crore by existing shareholders. The net proceeds from fresh issue will be utilised for augmenting the company's tier 1 capital requirements. Incorporated in 2009, Aptus Value Housing Finance India is an entirely rural focused housing finance company primarily serving low and middle income self-employed customers in the rural and semi-urban markets of India. It is one of the largest housing finance companies in south India in terms of assets under management (AUM), as of Q4FY21.
Specialty chemicals company Ami Organics will launch its initial public offering (IPO) on September 1. This would be the second IPO to open on the same date after Vijaya Diagnostic Centre. The public issue comprises a fresh issue of Rs 200 crore and an offer for sale (OFS) of 60,59,600 equity shares by selling shareholders including Parul Chetankumar Vaghasia, Girishkumar Limbabhai Chovatia, and Kiranben Girishbhai Chovatia. The company has reduced its fresh issue size to Rs 200 crore from Rs 300 crore after fundraising of Rs 100 crore in a pre-IPO placement. The net fresh issue proceeds will be utilised for repaying debts, and working capital besides general corporate purposes. The price band and lot size will be announced through a press conference on August 27. The public issue will close on September 3.
Omni-channel payment solutions provider AGS Transact Technologies on August 20 filed draft red herring prospectus with the capital markets regulator Securities and Exchange Board of India (Sebi) to launch an initial public offering. The company plans to garner Rs 800 crore through its public offer, which is entirely an offer for sale by existing selling shareholders. Promoter Ravi B Goyal will sell up to Rs 792 crore through offer for sale, while other shareholders selling their stake will offload shares worth up to Rs 8 crore. AGS Transact Technologies provides customised products and services comprising ATM and CRM outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.
Vijaya Diagnostic Centre, the largest integrated diagnostics chain in southern India in terms of operating revenue, has fixed a price band of Rs 522-531 per equity share for its public offer. This is the 39th IPO this year. The bidding for the offer will start from September 1 and will close on September 3. Anchor book, if any, will open for a day on August 31. The offer is completely an offer for sale of 3,56,88,064 equity shares by promoters, and investors Kedaara Capital and Karakoram. The company plans to raise Rs 1,895.03 crore through IPO, at higher price band. The offer for sale comprises selling of 50,98,296 equity shares by promoter Dr S Surendranath Reddy, 2,94,87,290 equity shares by investor Karakoram, and 11,02,478 equity shares by investor Kedaara Capital Alternative Investment Fund – Kedaara Capital AIF 1. The issue includes a reservation of 1.5 lakh equity shares for its employees. The company may allot these shares at a discount to final issue price. The offer will constitute at least 35 percent of post-offer paid-up equity share capital of the company.
Chemplast Sanmar shares started off the first day of trade on a weak note as the stock listed at a 3 percent discount to the issue price of Rs 541 per share. It opened at Rs 525 on the BSE, and Rs 550 on the National Stock Exchange. The public issue of specialty chemical company had seen a tepid response from investors though the issue sailed through. The offer was subscribed 2.17 times during August 10-12 as the retail portion was booked 2.29 times. The portion set aside for qualified institutional buyers was subscribed 2.7 times and that for non-institutional investors saw a 1.03 times subscription. The company raised Rs 1,300 crore through its fresh issue and the remaining Rs 2,550 crore through offer for sale. The fresh issue money will be utilised for early redemption of non-convertible debentures (Rs 1,238.25 crore).
Shares of cement manufacturer Nuvoco Vistas Corporation made a weak debut on bourses, with its shares falling over 7 percent on closing when compared to its issue price. On BSE, the scrip, whose issue price was Rs 570 apiece, started trading at Rs 471, which translates to a discount of 17.3 percent. It ended the day at Rs 531.3, down 6.78 percent in comparison to the issue price. It touched an intraday high of Rs 550 per share during the trading session.On NSE, the scrip debuted at Rs 485 apiece, which is a discount of nearly 15 percent. It reached an intraday high of Rs 550 per share and closed the counter at Rs 529, falling 7.19 percent compared to the issue price. The opening level was also its intraday low on NSE.
As many as 16 merchant bankers are in the race to manage the initial public offering of LIC — touted to be the biggest share sale in the country's history. These bankers will be making a presentation before the Department of Investment and Public Asset Management (DIPAM) spread over 2 days — August 24 and 25. Seven international bankers, including BNP Paribas, Citigroup Global Markets India and DSP Merrill Lynch Ltd (now known as BofA Securities), will make presentations on Tuesday, as per a circular by DIPAM. Other bankers that will be making presentations on Tuesday are — Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India), JP Morgan India, Nomura Financial Advisory and Securities (India).
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Bajaj Finserv said it has received an in-principle approval from the Securities and Exchange Board of India (SEBI) for sponsoring a mutual fund. The Company has received an In-Principle approval from Securities and Exchange Board of India (SEBI) vide their letter dated 23 August 2021, for sponsoring a Mutual Fund. Accordingly, the company would be setting up an Asset Management Company and the Trustee Company, directly or indirectly i.e., itself or through its subsidiary in accordance with applicable SEBI Regulations and other applicable laws," said the communication from Bajaj Finserv.
ICICI Bank has displaced HDFC Bank as being the most widely owned stock by mutual fund managers for several years. As on July 30, the value of mutual funds’ holding in ICICI Bank stood at Rs 99,541.2 crore; it was Rs 91,854.6 crore in HDFC Bank. ICICI Bank has also decisively moved ahead of HDFC Bank in terms of percentage of equity assets under management. Mutual funds’ holding in ICICI Bank now accounted for 5.75 per cent of their equity AUM. By comparison, HDFC Bank now accounts for 5.31 per cent of equity AUM of mutual funds, data compiled by Prime Database showed. The change of guard is another sign of the tilting of the scale of fortune in favour of ICICI Bank against HDFC Bank’s dominant reign of close to a decade.
Mutual funds purchased battered Nifty50 names in July, when the index consolidated in a narrow range before breaking out in August. The buy list included stocks such as Bajaj Auto, Britannia Industries , Cipla, Eicher Motors , Adani Ports and IndusInd Bank . Fund managers lapped up falling shares of Britannia Industries with both hands. Their holding in the biscuit maker rose 18.3 per cent in terms of the number of shares held but advanced only 10.9 per cent in value terms. The scrip was down 6 per cent for the month. It was the fifth-worst Nifty50 performer in the period.
The growing affinity of retail investors towards flexi-cap and sectoral funds has led to domestic equity funds adding 2.16 million folios in July 2021, the highest on record for a month, according to data from the Association of Mutual Funds of India. The net folio addition in July was nearly five times the monthly average for the last two years. This is the third month in a row equity funds have witnessed more than a million folios. Since this April, equity funds have recorded a net folio addition of more than 5.3 million compared with 3 million in the entire fiscal year ended March 31, 2021. The total tally of equity fund folios was 71.1 million at the end of last month. Of this, 18% was contributed by sectoral funds. Large-caps accounted for 15.3% and flexi-caps for another 13.3%, while the balance was other categories.
The six shut debt schemes of Franklin Templeton Mutual Fund have Rs 1,981.02 crore of cash available for distribution to the unit holders of the schemes. So far, the fund house has distributed Rs 21,080.34 crore to the investors. Out of the Rs 1,981.02 crore available for distribution as of August 13, Franklin India Ultra Short Bond Fund has Rs 366.81 crore, Franklin India Short Term Income Plan has Rs 597.70 crore and Franklin India Income Opportunities Fund has Rs 440.92 crore, among others, said the company spokesperson. The Trustee of Franklin Templeton decided to wind up six of our debt schemes in April 2020. The decision was taken because the markets had become illiquid due to the severe impact of Covid-19.
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