The weak gone by were full of events. To start with U.S. Federal Reserve on expected lines took a pause but at the same time remained hawkish too by stating that rates will still go higher than previously expected owing to persistent inflation and labor market strength. However, market participants are hopeful that the US economy can avoid a recession even after the Fed raised its benchmark lending rate to a 16-year high to extinguish surging inflation by cooling business activity. European Central bank inched up rates by 25 bps and indicated that another one is on anvil in the next meeting in July. In order to spur growth in the economy after being badly hit by the covid, the People’s Bank of China lowered the rate on 237 billion Chinese yuan ($33 billion) of one-year medium-term lending facility (MLF) loans to some financial institutions by 10 basis points — from 2.75% to 2.65%. Data from China showed consumer and factory activity weakened in May and record-breaking unemployment among young people in cities rose as an economic rebound following the end of anti-virus controls slowed. Consumers, uneasy about possible job losses, have returned to shops and restaurants less quickly than expected. In Japan, machinery orders for April, released Thursday, showed the first growth in three months. Trade figures for May showed a deficit for 22 months in a row, as import costs rose with the rising energy and other prices.
Back at home, domestic markets too moved higher on the back of positive global cues. However, Skymet Weather predicting a bleak monsoon in India over the next 1 month is likely to keep the investors’ sentiments cautious. On another development, following a broad-based rally in domestic stock markets, India has reclaimed its position as the world's fifth-largest market. On the data front, the index of industrial production in India rose 4.2 per cent on an annual basis in the month of April from 1.1 per cent in March and 6.7 per cent in April 2022. Meanwhile, India's retail inflation reached a more than two-year low of 4.25% in May 2023, indicating a favorable trend in the country's inflation rate. Going forward, market will continue to take direction from both global as well as domestic factors.
On the commodity market front, CRB saw strong recovery from the low as dollar index nosedived for continuous third week. Central banks meeting and several data kept traders on edge. After two week upside, both gold and silver traded down. An extended pause in the Fed’s rate hike cycle bodes well for the yellow metal, given that rising interest rates push up the opportunity cost of holding non-yielding assets. Gold and silver can trade in a range of 58500-61000 and 70000-74000 respectively. Energy and industrial metals counter may rise further, if China opts for more interest rates cut. Natural gas looks ready to give marginal upside upto 220-225. Building Permits, Fed Chair Powell Testifies, Initial Jobless Claims, Crude Oil Inventories, Services PMI and Existing Home Sales of US, BoE Interest Rate Decision, German Manufacturing PMI, Manufacturing PMI of UK etc are some important data, which will give further direction to the commodities prices.
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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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 been witnessing improvement in its average room rate and occupancy level. According to the management, the company has multiple projects in final stages of completion with capital spend of over Rs. 1,200 crores till March 2023. These assets will start contributing to the company performance going forward. New hotel in Hyderabad, the residential asset in Bangalore and the office assets in Mumbai and Bangalore are likely to make material improvement in company`s financial performance. Thus, it is expected that the stock will see a price target of Rs. 510 in 8 to 10 months’ time frame on current P/BVx of 5.69x and FY24 BVPS of Rs.89.68E
A healthy order book, good execution skills and established links with reputable clientele would support the company's continued revenue growth over the medium term. Company's ability to execute projects on time and within budget has earned the company a reputation as a reliable and trustworthy partner. The company has been awarded several contracts by the National Highways Authority of India (NHAI) and other government agencies. It is committed to continuing its track record of timely execution of projects. Thus, it is expected that the stock will see a price target of Rs.975 in 8 to 10 months’ time frame on a one year average P/BV of 2.77x and FY24 BVPS of Rs.351.90.
The stock closed at Rs.862.75 on 16thJune, 2023. It made a 52- week low of Rs.686.60 on 15th March, 2022 and a 52-week high of Rs.872.40 on 15th June, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.761.50.
The Stock has formed a Double Bottom pattern around 690 levels on weekly charts and bounced back sharply thereon towards 750 levels in short span of time. The momentum was seen moving above falling trend line of downward sloping channel along with rise in volumes. At current juncture, fresh breakout has been observed above the rectangle pattern, after a series of consolidation moves. The momentum is likely to carry in upcoming weeks as well as long build up into the prices have been observed. Therefore, one can buy the stock in the range of 850-860 levels for the upside target of 945-950 levels with SL below 800 levels.
The stock closed at Rs.665 on 16thJune, 2023. It made a 52- week low at Rs.557 on 06th July, 2022 and a 52-week high of Rs.774.90 on 07th November, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.646.50.
The stock has made its 52 week low of Rs. 557 and since then, slow and steady up move have been witnessed in prices, as stock can be seen rising with formation of higher bottom formation. On the short term charts, the stock has given a fresh breakout above the Ascending triangle pattern. The rise in prices along with rising volumes suggests for next upswing into the prices. On broader charts, the stock has managed to give breakout above the neckline of inverted Head & Shoulder pattern formation as well. Therefore, one can buy the stock in range of 655-665 levels for the upside target of 715-720 levels with SL below 620 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.
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Indian markets experienced considerable volatility throughout the past week, resulting Bank Nifty closing nearly unchanged whereas nifty gained nearly 1.4% over the week. The Nifty index concluded the week above key resistance level of 18800 level, while the Bank Nifty seen struggling to hold 44000 level. Notably, the Healthcare, FMCG, and Pharma sectors performed well, while profit booking was observed in banking and financial stocks along with IT. Regarding derivatives, the 19000 strike witnessed the highest call writing, whereas the 18700 followed by 18800 strike held the highest open interest concentration for put options. In the Bank Nifty, the highest open interest concentration for both call and put options was at the 44000 level. The implied volatility (IV) for call options concluded at 10.09%, while put options closed at 11.25%. The Nifty VIX, a measure of market volatility, ended the week at 11.08%. The PCR OI (Put-Call Ratio Open Interest) settled at 1.29 for the week. From a technical standpoint, both the indices are still trading in a bullish territory and expected to move steadily towards their all time highs. For Nifty, 18900 level would act as a strong immediate hurdle while on any downside 18700-18650 zone would provide support to market. Traders are advised to create fresh longs in case of any dip seen in coming sessions. We expect markets to remain buoyant with stock specific moves in upcoming sessions.
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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 prices climbed more than 9% on weekly basis following supply concerns in the market. Millers are struggling to get fair quality of produce as quality of major part of arrivals, which touched the market is not up to the mark. Harvesting activities were largely affected by rain. Quality of crop deteriorated due to long spell of unseasonal rainfall in major producing states. More than 60% of arrivals has touched the market and supply pace is likely to be slower in coming weeks. About 146.8 thousand tonnes of Turmeric has arrived across India so far in year 2023 since 1st Apr’23 as compared to 150 thousand tonnes of the previous year. Shrinking arrivals and reports of rise in export in Apr’24 will keep prices elevated in near term. India exported about 19.6 thousand tonnes of turmeric in Apr’23 against the 13.76 thousand tonnes of previous year for corresponding month. Turmeric Aug prices are likely to move up towards 9300 in near term with support of 7700 levels.
Jeera NCDEX July futures will remain higher on supply tightness in the market. Limited availability of premium quality of produce in the market will help prices to remain firm. Arrival pace is almost similar as compared to the last year. About 65.9 thousand tones have been arrived so far in year 2023 since 1st April as compared to 65.5 thousand tonnes of the previous year. Robust export demand and tighter inventory with millers is prompting them to buy jeera at every dip. India exported about 16.28 thousand tonnes of Jeera in Apr’23 against the 9.94 thousand tonnes of previous year. Considering the improved buying in spot market, jeera July prices is likely to move up further towards 51000 with support of 46000.
Dhaniya NCDEX July prices are likely to trade on positive bias due to increased buying at prevailing levels. Reports of rising export impacted market sentiments positively. About 10.68 thousand tonnes of dhaniya was exported in Apr’23 as compared to 3.16 thousand tonnes of previous year However; gains in dhaniya are looking limited due to huge supply at physical market. About 236 thousand tonnes of dhaniya has been arrived so far in year 2023 since 1st Apr’23 against the 94 thousand tonnes of prior year. Dhaniya NCDEX July futures are likely to trade in range of 5800-6600 levels.
Gold experienced a slight weekly decline as traders assessed recent U.S. economic data and the Federal Reserve's hawkish stance on further monetary tightening. The precious metal initially plummeted to a three-month low but managed to rebound and finish higher after the release of encouraging U.S. economic indicators, which provided temporary relief from the Fed's "hawkish pause" on interest rate hikes. However, gold's upward momentum remains challenged due to the continued hawkish tone of the Federal Reserve regarding inflation and interest rates. This has diminished the incentive for investors to buy gold, given the prospect of additional interest rate hikes on the horizon. Market participants are currently pricing in a 72% likelihood of a 25-basis point rate increase in July, following the Fed's indication that borrowing costs might need to rise by as much as half a percentage point by the end of the year. The dollar index, holding near a one-month low, has limited gold's losses to some extent. Despite this, gold's struggle to rally persists as the market digests the implications of potential future rate hikes. Investors will closely monitor upcoming economic data and the Federal Reserve's communications for further insights into the trajectory of interest rates, which will likely influence gold's performance in the coming weeks. On Comex, Gold price stuck in the wide range of $1930-$1980, and witness consolidation. On the other hand, silver prices trades with bullish pattern and the trading range is $22.200-$24.800. Ahead in the week, gold may witness a range trading where both side movements can be witnessed and the possible trading range would be 57800-60800 levels. Silver prices on MCX may trade in the range of 69700-73500 levels.
Crude oil experienced weekly gains driven by positive developments in China's oil demand and surprising retail sales data from the United States. Chinese refinery throughputs rose by 15.4% in May, confirming robust oil demand despite overall disappointing Chinese activity data. Additionally, the reduction of interest rates by China's central bank signaled stimulus hopes and an effort to accelerate economic recovery. In contrast, the European Central Bank raised rates, indicating a potentially higher cost of borrowing and a potential dampening effect on oil demand growth. Although Europe is not a major oil consumer, any changes in demand would have a global impact on oil prices due to its substantial consumption levels. Therefore, market sentiment remains influenced by expectations of future demand based on economic indicators and central bank actions. Overall, the positive news from China's oil demand and the unexpected increase in U.S. retail sales have contributed to the weekly gains in crude oil prices. However, ongoing developments in interest rates and economic indicators will continue to shape market sentiment and influence oil prices moving forward. Ahead in the week, crude oil prices may continue to witness both side movements where buying near support and selling near resistance is advised. Natural gas prices surge 8.2% higher to finish at $2.533/mmBtu, the largest one-day gain since May 18, and the highest closing price since May 19. According to NOAA's 8 to 14-day temperature outlook, above-average temperatures are expected for most of the Mid-West and Southern regions of the lower 48, which will likely add support to power generation demand in the latter half of June. Ahead in the week, prices may continue to trade higher and the possible trading range would be 190-230.
Base metals may trade with bullish bias as hopes grew that China would unveil more measures to shore up its shaky post-pandemic recovery after new home prices rose at a slower pace in May and property investment slumped at the steepest pace in more than two decades. Investor sentiment was also boosted by U.S. economic data showing an unexpected rise in May retail sales as consumers stepped up purchases of motor vehicles and building materials, which could help to stave off a recession in the near term. Copper may trade in the range of 718- 750 levels. The copper market in China remains under pressure as actual consumption is subdued despite supply tightness in the spot market. And, market participants expect to see an increase in supply with the arrivals of shipments from Congo as soon as late this month. Zinc can trade in range of 217- 232 levels. Swedish miner Boliden said it will suspend production at Europe's largest zinc mine in Ireland within the next month because of "unsustainable financial losses". S&P Global predicts a modest 1.4% growth in global refined zinc demand for 2023. Lead can move in the range of 180-189. Aluminum may trade in the range of 200-218 levels. China's production of aluminium edged up 1.1% to 3.42 million tonnes in May versus a year earlier, according to data released by the National Bureau of Statistics. Power supplies to aluminium smelters in China's south-western Yunnan province will be increased later this month allowing some capacity in the drought-hit region to restart operations. Steel long (July) is likely to trade in the range of 45500-48000 levels with weak bias on NCDEX.
Cotton prices are likely to trade mixed to higher due to reduced supplies in the market. Hike in MSP will also impact the market sentiment up. Government increased the MSP of cotton from 6080 INR/quintal to 6620 INR/quintal for year 2023-24. However, gains are likely to be limited due to improved production prospects for upcoming season. Cotton Sowing in Gujarat running on positive note. About 1.73 Lakh Ha was sown under cotton in Gujarat as on 12th June as compared to 1.33 Lakh Ha, higher by 31% Y-o-Y. Area of Groundnut is shifting towards cotton due to better return on cotton. Cotton MCX July prices are likely to trade in range of 55500-62300 levels. Similarly, Kapas Apr’24 futures are likely to trade in range of 1460-1530 levels.
Cotton seed oil cake NCDEX July futures are likely to trade higher due to limited availability in the market. Increased demand of feed meals due to above normal temperature in northern part of India is likely to support firmness in prices. Moreover, lower arrivals have affected the overall production of cotton seed oil cake adversely. Cotton seed oil cake prices are likely to trade in range of 2550- 2850 levels.
Guar seed July futures are likely to trade higher due to weaker production prospects of upcoming season. Slower progress of monsoon rainfall and increased demand for guar meal is likely to keep market sentiments up for guar. Export demand of gum is also improved that will support firmness in prices. Major focus will be on monsoon progress and price will track sowing progress to decide the further trend. Guar seed prices will trade in range of 5200-5600/5800 in near term wherein Guar gum prices are likely to trade in range of 9500-11000 levels.
Mentha oil June contract is likely to trade sideways to higher with emerging buying in local market. Prices have dropped to multiyear low due to demand concerns. India exported about 708 tonnes of menthol during Apr’23 as compared to 877 thousand tonnes of previous year down by 19% Y-o-Y. However, buying activities have increased at recent fall in prices that will push the prices up. Mentha oil June prices are likely to trade in range of 910-955.
Castor seed prices are likely to trade mixed to higher on increased buying against limited availability at major trading centers. However, gains will be limited due to higher production and limited export demand of castor oil. Overall Production is estimated at 18.82 lakh tonnes in year 2023 higher by 16% Yo- Y. Castor seed July prices are likely to trade in range of 5600-6200.
It closed at Rs. 209.30 on 15th Jun 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 203.45. On the daily chart, the commodity has Relative Strength Index (14-day) value of 71.655. Based on both indicators, it is giving a buy signal.
One can buy above Rs.212 for a target of Rs. 245 with the stop loss of 198.
It closed at Rs. 215.70 on 08th Jun 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 234.51. On the daily chart, the commodity has Relative Strength Index (14-day) value of 56.012. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 213 for a target of Rs. 223 with the stop loss of 209.
It closed at Rs. 5814.00 on 15th Jun 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 5977.88 On the daily chart, the commodity has Relative Strength Index (14-day) value of 72.322. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 5750 for a target of Rs. 6000 with the stop loss of 5630.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
In the week gone by, CRB saw strong recovery from the low as dollar index nosedived for continuous third week. Central banks meeting and lots of data kept traders on edge. The European Central Bank raised interest rates to a 22-year high as expected on Thursday. The U.S. Federal Reserve this week signaled at least a half of a percentage point increases by year end. Higher interest rates ultimately increase borrowing costs for consumers, which could slow economic growth and reduce oil demand. After two week upside, both gold and silver traded down. While gold saw large swings this week, the yellow metal stayed largely within a tight trading range seen over the past month, as mixed signals from the Fed and the U.S. economy offered little cues for a breakout in either direction. In the energy counter, natural gas witnessed much needed support whereas crude oil recovered from the low. Crude oil prices declined on negative data in the beginning of the week but recovered later on data that showed China's oil refinery throughput rose 15.4% in May from a year earlier, hitting its second-highest total on record. Chinese demand for oil is expected to keep climbing at an assured rate during the second half of the year. In the United States, data showed retail sales unexpectedly rose in May, along with higher-than-expected jobless claims last week. In the base metals, copper saw nonstop three week rally. Zinc and lead rallied for second week in continuation whereas aluminium closed in range with upside bias. Upside was due to cut in interest rate by China. However, weak economic outlook looms over market sentiment, as China's industrial output and retail sales growth in May missed forecasts. China trimmed medium and short-term lending rates this week, and is expected to cut its key loan prime rate next week, as Beijing struggles to shore up a slowing post-COVID economic recovery.
Castor made base near 5400 and closed near 5865 levels in three week time span owing to shrinking supplies and improved demand. Cotton oil seed cake recovered from the low but couldn’t face the resistance of 2600 levels. Kapas has started to move north on renewed buying. Guar counter saw a pause in the fall. Spices counter traded with mix sentiments. Jeera prices fell marginally. Turmeric added more color in portfolio with its strong upside on the lack of supplies of premium quality of produce in the market India exported about 19.6 thousand tonnes of turmeric in Apr’23 against the 13.76 thousand tonnes of the previous year for corresponding month. Coriander was in range. Mentha breached the mark of 900 levels and were recovering from the low.
Groundnut is one of the major oilseed crops and is grown in almost a hundred countries of the world. In India, Groundnut is also known as wonder nut or poor man’s almond. It is available throughout the year due to two-crop cycles, harvested in March and October. It is one of the most important foods and cash crops of our country. While being a valuable source of all the nutrients, it is a low-priced commodity. Groundnut is particularly valued for its protein content in kernels (24-36%). groundnuts contain more protein than meat and about 2 times more than eggs. Being an oilseed crop, it contains 40% to 53% oil.
Commodity bourse the National Commodity and Derivatives Exchange (NCDEX) has been relaunching futures contracts of groundnut on 20 June 2023 that had discontinued trading in groundnut futures around 2010. Currently, the contract expiring in the months of July 2023, August 2023 and September 2023 will be available for trade.
Groundnuts are cultivated in about 115 countries with a global annual production of 31.09 Mn T of kernels. Nearly 58% of the global production comes from Asia. China and India are the top two producers and contributes 35.4% and 15.4% respectively to the total global peanut production. Nigeria (9.0%) and the USA (6%) are the next two contributors.
Groundnut accounts about 45% of total oilseed area and 25% of total oilseed production in the country. India is rated as the second largest producer of groundnut in the world with annual production of over 100 million tons. As per a survey of Solvent Extractors Association of India (SEAI), Gujarat is likely to witness nearly 3 million tons of groundnut production. However, local traders, brokers and oil millers are expecting production of groundnut somewhere between 2.5 million tons to 2.8 million tons of produce. With around 60 % share in India’s total groundnut production Gujarat is the biggest producer of groundnuts in India followed by Rajasthan, Tamil Nadu, Andhra Pradesh and Karnataka.
As per the second Advance Estimate, groundnut production is estimated to be about 100.56 lakh tonnes during 2022-23 in the country.
Groundnut is an exportable commodity, so traders will use this derivative contract to protect their price and also by doing the hedging, they can protect the export price also.
The U.S. dollar index continued its decline below 102 for the third consecutive week due to the Federal Reserve pausing its tightening campaign while other central banks raise interest rates. Concerns about weakening economy suggest that U.S. interest rates may be approaching their peak. The Federal Reserve's decision not to hike rates this week, with the possibility of two more increases by year-end, reflects a cautious outlook. In contrast, the European Central Bank raised rates by 25 basis points and indicated further tightening, while the Bank of England is expected to follow suit. This is causing the U.S. dollar to experience significant weekly declines against the euro, sterling, and antipodean currencies, although it remains steady against the yen due to the Bank of Japan's dovish stance. Turning to the USD/INR pair, it recently reversed after encountering resistance around 82.90-82.95, marking a multi-month high. Currently trading below key moving averages, with the 5- day EMA crossing below the 21-day EMA, the pair signals a downward trend in the near future. It has also broken down from a consolidation range near 82.35, reinforcing the bearish sentiment. Technical indicators, such as the 14-period Relative Strength Index (RSI) at 35, just above the oversold threshold, suggest limited downside potential. Looking ahead, a significant support zone is expected around 81.71-81.73, coinciding with previous swing lows. With the present downtrend, restricted downside potential, and the support zone, the USD/INR pair is likely to trade negatively in a sideways manner. However, once it reaches the support zone, it may enter oversold conditions and deviate significantly from its mean levels, potentially leading to a reversal and bounce back towards the mean.
USDINR (JUN)pair is currently in an Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 82.42. However, the pair is in borderline territory with a Relative Strength Index (14- day) value of 35.62 on the daily chart. Major support is seen around 81.6 levels, while resistance is expected near 82.4 levels.
One can sell near 82.2 for the target of 81.6 with the stop loss of 82.5.
GBPINR (JUN)pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 103.22. However, the pair is in overbought territory with a Relative Strength Index (14- day) value of 70.3 on the daily chart. Major support is seen around 103.5 levels, while resistance is expected near 105 levels.
One can sell near 104.8 for the target of 103.8 with the stop loss of 105.3.
EURINR (JUN) pair is currently in an Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 89.05. However, the pair is in neutral territory with a Relative Strength Index (14-day) value of 61.4 on the daily chart. Major support is seen around 89 levels, while resistance is expected near 90.5 levels.
One can buy near 89.5 for the target of 90.5 with the stop loss of 89.
JPYINR (JUN) pair is currently in an Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 59.46. However, the pair is in oversold territory with a Relative Strength Index (14-day) value of 28.36 on the daily chart. Major support is seen around 58 levels, while resistance is expected near 59.4 levels.
One can buy near 58.20 for the target of 59.20 with the stop loss of 57.70.
ASK Automotive Ltd has filed draft papers with the Securities Exchange Board of India (Sebi) to raise funds via initial public offerings. The IPO consists of a pure offer for sale of upto 29.57 million shares by its promoters Kuldip Singh Rathee and Vijay Rathee. Kuldip Singh Rathee who holds 41.33 percent stake currently in the company, will sell upto 20.7 million shares while Vijay Rathee who has 32.2 percent stake, will sell upto 8.87 million shares via OFS. JM Financial Ltd, Axis Capital Ltd, ICICI Securities and IIFL Securities are the lead managers to the issue. The company is the largest manufacturer of brake-shoe and advanced braking (AB) systems for two-wheelers (2Ws) in India. In terms of production volume for original equipment manufacturers (OEMs) and the branded independent aftermarket, the company holds a market share of approximately 50 percent as of Fiscal 2022. ASK Automotive has expanded its operations to include a range of offerings in addition to brake-shoe and advanced braking (AB) systems. These new offerings include aluminum light weighting precision (ALP) solutions, wheel assembly for two-wheeler (2W) OEMs, and safety control cables (SCC) products.
India’s largest private, multi-modal asset-light logistics company, Western Carriers (India) Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India to raise funds via initial public offerings (IPO). The IPO consists of a fresh issue of Rs 500 crore and an offer for sale (OFS) of up to 9.33 million shares by its existing promoter Rajendra Sethia. Currently, Rajendra Sethia holds a 99.99 percent stake in the company. The proceeds from the fresh issue worth Rs 200 crore will be used to repay debt. As of March 2023, the firm has outstanding borrowings of Rs 260.81 crore. The firm will also use Rs 186 crore for capital expenditure. The company plans to buy commercial vehicles and 40 feet of specialised containers and 20 feet of normal shipping containers and reach stackers. As of December 31, 2022, the company owned over 400 GPS-enabled heavy commercial vehicles, 13 light commercial vehicles, over 400 shipping containers and 27 reach stackers. JM Financial and Kotak Mahindra Capital are the lead managers of the issue. For the nine months ended December 2022, the company reported a revenue of Rs 1,206.90 crore while the net profit stood at Rs 55.09 crore. For FY22, it reported revenue of Rs 1,470.88 crore versus Rs 1,110.11 crore a year ago. Net profit for the fiscal stood at Rs 61.13 crore against Rs 44.53 crore last year.
HMA Agro Industries Ltd has set the price band for its Rs 480-crore public issue at Rs 555-585 a share. The company had earlier said that its IPO will open on June 20 for subscription and close on June 23. The anchor bids will start on June 19. Initiation of refunds will be on June 30 and credit of equity shares to demat account of the allottees will be on July 3. The stock is scheduled to list on the exchanges on July 4. At the upper end of the price band, the company is valued at Rs 2780 crore. HMA Agro plans to raise Rs 150 crore through the fresh issue and Rs 330 crore from an offer-for-sale from its shareholders and promoters. The OFS comprises up to Rs 120 crore by Wajid Ahmed, up to Rs 49 crore each by Gulzar Ahmad, Mohammad Mchmood Qureshi, Mohammad Ashraf Qureshi and Zulfiqar Ahmad Qurashi. Parvez Alam will sell up to Rs 14 crore through OFS. The proceeds from the fresh issue of up to Rs 135 crore will be used on working capital requirements of the company. Aryaman Financial Services Ltd is the sole lead manager to the issue. The firm is currently among the largest exporters of frozen buffalo meat products from India and accounts for more than 10 percent of India’s total export of frozen buffalo meat. Its products are mainly packaged under the brand name “Black Gold”, “Kamil” & “HMA” exported to over 40 countries all over the globe.
Pharmaceutical ingredient manufacturing firm Valiant Laboratories has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO is an entirely fresh issuance of 1.15 crore equity shares with no offer-for-sale (OFS) component, according to the draft red herring prospectus (DRHP) filed with Sebi on Thursday. Proceeds of the issue will be utilised to set-up a manufacturing facility for speciality chemicals in Gujarat through its subsidiary -- Valiant Advanced Sciences Private Ltd (VASPL) and to meet working capital requirements of the subsidiary company. Valiant Laboratories is an Active Pharmaceutical Ingredient (API) or bulk drug manufacturing company with its focus on manufacturing Paracetamol, which is used in the treatment of headache, muscle ache, arthritis, back ache, toothache, cold and fever. The paracetamol API industry grew from Rs 2,200 crore in fiscal 2017 to Rs 3,900 crore in fiscal 2023 and going forward the industry is expected to clock a CAGR (compound annual growth rate) of 5-7 per cent between fiscal 2023 and fiscal 2027, largely driven by the demand from domestic formulation manufacturers as well as export markets. Unistone Capital Private Limited is the sole book running lead manager to the issue.
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Motilal Oswal Mutual Fund has launched Motilal Oswal Nifty Microcap 250 Index Fund, an open ended fund replicating/tracking Nifty Microcap 250 Total Return Index. The new fund offer of the scheme is open for subscription, and it will close on June 29. The performance of the scheme will be benchmarked against Nifty Microcap 250 TRI. The scheme will be managed by Swapnil Mayekar and Rakesh Shetty (Debt). The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by Nifty Microcap 250 TRI, subject to tracking error. The minimum subscription amount is Rs 500 and in multiples of Re 1 thereafter. The scheme will offer a regular plan and direct plan – with growth and IDCW options. The scheme would invest in the securities comprising the Nifty Microcap 250 Total Return Index in the same proportion (weights) as in the index and track the benchmark index. The scheme may also invest in the money market instruments, in compliance with regulation to meet liquidity requirements. The scheme will invest 95-100% in constituents of Nifty Microcap 250 Index and 0-5% in units of liquid schemes and/or money market instruments. The scheme is suitable for investors who are seeking a return that corresponds to the total returns of Nifty Microcap 250 Total Return Index, subject to tracking error.
Gold exchange-traded funds (ETFs), considered a safe haven during uncertain times, continue to glitter as they received a net inflow of Rs 103 crore in May. The development comes after a net inflow of Rs 124 crore witnessed in the asset class in April. Before that, investors withdrew Rs 266 crore from Gold ETFs in March, data from the Association of Mutual Funds in India (Amfi) showed. The slightly low inflow in May compared to the preceding month could be attributed to profit booking. Gold price came off its highs towards the second half of May on the back of positive news with regards to the US government raising the debt ceiling, thereby providing some buying opportunity, particularly after a sharp rally it witnessed since March this year, Melvyn Santarita, Analyst-Manager Research, Morningstar India, said. According to the data, gold-linked ETFs saw an inflow of Rs 103 crore last month, which helped in raising the assets under the management of such funds to Rs 23,128 crore at the end of May from Rs 22,950 crore at the end of April. Gold, with its superlative performance over the last few years, has attracted significant investor interest, and the consistent surge in its folio numbers is a testimony to the same. In short, gold ETFs are units representing physical gold, which may be in paper or dematerialised form. One gold ETF unit is equal to 1 gram of gold and is backed by physical gold of very high purity. They combine the flexibility of stock investment.
360 ONE Asset Management,(formerly known as IIFL Asset Management, announced the launch of ‘360 ONE Flexicap Fund.’ It is an open-ended dynamic equity scheme investing across large-cap, mid-cap, and small-cap stocks. The New Fund Offer (NFO) will remain open from 12 June to 26 June. The minimum application amount is Rs 1,000 (and in multiples of Re 1 thereafter.) 360 ONE Flexicap Fund follows the SCDV (Secular-Cyclical-Defensives-Value Traps) framework which enables the Fund to invest across different market segments. It adopts a bottom-up stock selection approach, based on in-depth fundamental research to capitalise on opportunities. The fund may also invest in opportunities arising from special situations such as IPO/FPO, OFS, demergers and acquisitions. The fund provides investors the flexibility to invest in companies of all sizes, from small-caps to large-caps, and across sectors. This fund is beneficial for those with a long-term investment horizon, and those who look to avoid the complexities associated with asset allocation in different types of funds.
SAMCO Asset Management Private Limited has announced the launch of India's first actively-managed momentum fund - SAMCO Active Momentum Fund. Leveraging the persistent and globally acclaimed momentum anomaly in finance, the fund aims to deliver exceptional risk-adjusted returns to investors, tapping into the immense potential of momentum investing in the Indian market. The Nifty 200 Momentum 30 index has achieved an impressive compound annual growth rate (CAGR) of 17.79% over 18 years, outperforming the broader Nifty 50 and Nifty 500 indices. Similarly, the Nifty Midcap 150 Momentum 50 index has achieved an exceptional CAGR of 21.28% since its inception. Moreover, when compared to the MSCI World Index, which produced 10x returns, the MSCI World Momentum Index delivered a commendable 20x return.
Bajaj Finserv announced the launch of its new mutual fund business under Bajaj Finserv Mutual Fund. Bajaj Finserv Mutual Fund will launch a comprehensive set of products across fixed income, hybrid and equity categories to meet the needs of diverse investor profiles ranging from retail and HNIs to institutions, said the press release. The company will launch a set of fixed income, liquid, overnight and money market products to cater to the institutional segment and company treasuries. Sanjiv Bajaj, Chairman & Managing Director, Bajaj Finserv, said, “We are committed to being a full-stack financial solutions provider to meet India’s growing needs and building deeper, long-term relationships with customers who are already invested in us. The launch of asset management helps diversify our retail franchise and leverage Bajaj Finserv companies’ combined strength in financial services across a much larger customer base.” “Technology and analytics have been the cornerstones of businesses at Bajaj Finserv and are not only enablers but also differentiators. Bajaj Finserv Mutual Fund will deploy technology at scale to empower teams, create platforms for distributors, simplify investments, and build long-term sustainable value for customers. We believe the asset management business positions Bajaj Finserv for an exciting new chapter of growth,” he added.
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