In the week gone by, global stock markets sentiment remained lukewarm after Federal Reserve Chair Jerome Powell said that a half-percentage point rate hike is "on the table" for next month. Besides, inflation worries, crude prices, and the war in Ukraine also kept the investors cautious. Now market participants across the globe are bracing for the possibility of more aggressive policy tightening by the Federal Reserve. Recently, Reserve Chair Jerome Powell suggested that the central bank's primary goal at this juncture is to bring down inflation while trying to avoid tipping the economy into a recession in the process. While inflation and central-bank reactions to the spike in rising prices are big drivers of markets right now, earnings too will be on focus. Meanwhile, the number of Americans filing new claims for unemployment benefits fell moderately last week, suggesting that April was another month of strong job growth.
Back at home, investors' focus has turned to the first-quarter earnings season. The Q4FY22 earnings season has begun on a mixed note with small disappointments from a couple of large sectoral majors. Factors such as geopolitical worries, inflation fears and likely hike in Fed rates are making the investors nervous. Meanwhile IMF has said that India is projected to be the fastest growing large economy in the world in current year. On the pandemic front, India's tally of daily cases is significantly increasing, while hospitalizations have remained low. In another development, the finance ministry has barred public sector enterprises from bidding for other Central Public Sector Enterprises (CPSEs) which are on the block for privatization, as it would defeat the very purpose of the disinvestment policy. Going forward, due to looming concerns of elevated commodity prices due to geopolitical situation and supply chain challenges, and with increasing expectations of a harsher hike by the US Fed, the market is expected to continue its volatile movements.
On the commodity market front, CRB plunged last week on fresh selling in the bullion and energy counter. Energy counter witnessed selling as IMF cut its economic growth forecasts and warned of higher inflation. Still Crude is trading above $100. It can move in the range of 7200-8100 levels. OPEC and allies led by Russia, agreed last month to a monthly oil output boost of 432,000 bpd for May, resisting pressure by major consumers to pump more. The possibility of a European Union ban on Russian oil continued to keep the market on edge. Gold should continue to see strong inflows as uncertainty over inflation and growth will remain elevated over the coming months due to geopolitics and differing views on how aggressive the Fed will need to be with tightening of monetary policy during the summer months. Gold and silver can trade in a range of 51500-54000 and 64500-69000 respectively.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
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SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The Company remains focused on leveraging its strong brand portfolio, evolving its product profile in line with changing consumer preferences, expanding its reach & accelerating its Omni-channel play. Sharp focus on cost and capital productivity will continue to guide the Company’s business model. Moving forward, ABFRL will look to expand into segments and businesses that are inherently more digital in nature, in sync with the consumer trends in fashion. Thus, it is expected that the stock will see a price target of Rs.342 in 8 to 10 months time frame on a current P/Bv of 10.47x and FY23 BVPS of Rs.32.66.
The Company showcase strong financial performance in the last few quarters helped by strong growth in its residential business. Going forward residential business is expected to continue its growth momentum with new launches in the upcoming quarters and the ongoing projects. Growing contribution from Hyderabad and Chennai business and entry into plot development business auger well for the company. Higher sales realisation along with revival in the rental and hospitality business indicates future growth visibility. Thus, it is expected that the stock will see a price target of Rs.543 in 8 to 10 months’ time frame on a current P/Bv of 3.94x and FY23 BVPS of Rs.137.8.
The stock closed at Rs 3364.10 on 22nd April, 2022. It made a 52-week low at Rs 3050.00 on 08th March, 2022 and a 52- week high of Rs. 4153.00 on 14th September, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 3501.90.
After giving healthy correction from high, the stock consolidated in narrow range and formed a “Bearish Pennant” pattern on weekly charts. Moreover, it has given the breakout of downward sloping resistance line along with high volumes and also has managed to close above the same. So, further buying is expected in the stock from the current levels. Therefore, one can buy in the range of 3310-3330 levels for the upside target of 3600-3650 levels with SL below 3180 levels.
The stock closed at Rs 4031.05 on 22nd April, 2022. It made a 52-week low of Rs 2971.15 on 22nd April, 2021 and a 52-week high of Rs. 4329.00 on 28th December, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 3733.57.
On charts, the stock is trading in higher highs and higher lows. This indicates bullishness in the stocks. Apart from this, it is forming a “Continuation Triangle” pattern on weekly charts, and is likely to give the breakout of same. On the technical indicators front such as RSI and MACD, they are also suggesting buying for the stock. Therefore, one can buy in the range of 3940-3970 levels for the upside target of 4400-4500 levels with SL below 3800 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
In the week gone by, most of the major indices closed in red territory. Bank nifty gave steeper correction in the week gone by, as compared to Nifty. From the derivative front, option writers were seen active at 17500 call strike and 17000 put strike. With overall correction in markets, call writers were seen aggressive and they had added hefty open interest as compared to put writers. Implied volatility (IV) of calls closed at 16.85% while that for put options, it closed at 17.89. The Nifty VIX for the week closed at 17.85%. PCR OI for the week closed at 0.94 lower than the previous week, which indicates more call writing than put writing. On the technical front, both the indices are trading close to their 200 DMA on daily charts. For upcoming sessions, traders need to remain cautious as market could get deeper cuts, if it manages to slide down its 200 DEMA on daily interval. In the upcoming sessions, we expect Nifty to trade in the range of 17000-17400 levels while Bank nifty could sail in zone of 35700 - 36700 range. On higher side, Nifty needs to give decisive move beyond 17400 levels for any further upside.
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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
Last week, we have witnessed good recovery in spices prices after it slipped to almost 4-weeks low. At the lower prices, the industrial bulk and bulk traders had become active and bought aggressively in the physical market. The arrivals of most of the spices in the physical market were normal as par the seasonal arrival but demand for buying increased. We expect turmeric to trade in a broad range as resistance at 9600 and support at 8680 levels. There are chances of increase in export demand that support prices going forward and expected to move higher towards 9500 levels. New season sowing also started in south India. Currently, turmeric prices are 11% higher compared to last year but down about 6% in 2022. In Feb, turmeric exports were lower by 17% y/y at 10400 tonnes vs 12,575 tonnes while in FY 2021/22 (Apr-Feb), exports down 20% at 1.37 lakh tons compared to last year but higher by 8.3% compared with 5-year average. As per first advance estimates by the Govt for 2021/22 season, turmeric output is pegged at 11.76 lakh tonnes against 11.24 lt in 2020-21. We have witnessed improving domestic demand for jeera from the spices industries. In coming week, it is expected to break all time high levels of 23240 while the support is at 21650. Prices are likely to remain higher this season as crop size is weak. Traders expect jeera production in 2021/22 at 5.0-6.0 mln bags (1 bag = 55 kg), down from 8.0-8.5 mln bags the previous year. As per govt data, jeera exports in Feb 2022 down by 23.6% Y/Y at 14000 tonnes compared to 18300 tonnes while exports for FY 2021/22 (Apr-Feb) period is also down by 23% Y/Y at 2.02 lt compared to 2.62 lt last year. Dhaniya prices closing higher for the fifth successive week due to improving export demand. It is likely to trade towards 13300 levels with support seen at 11750 levels. Aggressive buying from bulk buyers and lower arrivals in the spot markets is keeping the prices supportive at higher levels. The processors and traders are buying as per their current requirement as market is witnessing cash crunch and prices of coriander seed are still ruling high as compared to last year. However, good export demand is supporting prices. As per data release by Dept of commerce, coriander exports in Feb 2022 were up 5.5% y/y at 3320 tonnes compared to 3150 tonnes last year.
Bullion counter has witnessed huge volatility in the previous week where Gold rose to a one-month high, just shy of the $2,000 an ounce level, as concerns around the Russia-Ukraine conflict and rising inflationary pressures. But after that it continues to see solid selling pressure with disappointing economic data. Philadelphia Federal Reserve said its manufacturing business outlook rose to a reading of 17.6 in April, down from March’s reading of 27.4. The data significantly missed expectations as consensus forecasts were calling for a reading around 21.5. Looking at the components of the report, the new orders index dropped to a reading of 17.8, down from March’s reading of 25.8. At the same time, shipments index fell to 19.1, down from the previous reading of 30.2. Gold is seeing a correction since the market is expecting the Fed to be more aggressive in hiking rates, while yields are also moving up. While gold is considered a hedge against inflation, rising interest rates increase the opportunity cost of holding non-yielding bullion. U.S. 10-year Treasury yields edged towards the more than three-year peak scaled, as bond markets suffered another sharp sell-off amid bets for aggressive rate hikes. On the technical front, gold is consolidating around $1,940-$1,960 per ounce, and beyond that, it could find support around $1,915-$1,930. Ahead in the week price on MCX may trade in the wide range where huge volatility may be witnessed and the range would be 51500-53800 levels. On the other hand, silver may continue to trade with bearish bais where it may take support near 65200 and could face resistance near 69500 levels. Overall trend looks bearish sell on rise is advised.
Oil prices were slipped and witnessed huge volatile on demand concerns after the International Monetary Fund (IMF) cut its economic growth forecasts and warned of higher inflation. Prices declined despite lower output from OPEC+, which produced 1.45 million barrels per day (bpd) below its targets in March, as Russian output began to decrease following sanctions imposed by the West over its invasion of Ukraine, according to a report from the producer alliance. OPEC+ agreed last month to a monthly oil output boost of 432,000 bpd for May, resisting pressure by major consumers to pump more. The IMF lowered its forecast for global economic growth by nearly a full percentage point, citing Russia's invasion, and said that inflation is now a "clear and present danger" for many countries. The bearish outlook added to price pressure from the dollar trading at a two-year high. A firmer greenback makes commodities priced in dollars more expensive for holders of other currencies, which can dampen demand. Fuel demand in China, the world's largest oil importer, could begin to pick up as manufacturing plants prepare to reopen in Shanghai. Ahead in the week, prices are likely to witness huge volatility and both side movements and may trade in the range of 7600-8050. Natural gas futures surged on 18th Apr to levels unseen since 2008 as the Northeast braces for a rare April blast of heavy snow. The gains leave natural gas up by a staggering 113% since the end of last year. The latest natural gas surge will only add to inflationary pressures in the United States, which is already grappling with a 40-year high in home prices. Ahead in the week, price may trade in the range of 490-580 levels.
Base metals may trade in range with positive bias but profit booking at higher level cannot be denied on boosting the dollar as prospects of a series of U.S. interest rate hikes this year may weigh on sentiment. China's financial markets are not immune to external shocks and the COVID situation also put more pressure on China's economy, governor of the People's Bank of China Yi Gang said. Russian President Vladimir Putin called for structural changes in Russia's metallurgical industry to counter Western sanctions. Copper may trade in the range 800-835 levels. COVID-19-led demand worries in top metals consumer China and rising inventories outweighed concerns over supply disruptions in key producer Peru. Peru will declare a state of emergency near Southern Copper Corp's Cuajone mine, the country's prime minister said on Wednesday, as protests hit top mines in the Andean nation, halting 20% of national copper output. Metals inventories are diminishing at the London Metals Exchange, with the exception of copper. Copper inventories in LMEapproved warehouses rose to their highest since October to 128,775 tonnes, as of April 20. Stocks of copper on the LME system have now climbed 60% over the last four weeks. Aluminum may trade in the range of 262-285 levels. Global primary aluminium output in March fell 1.55% year on year to 5.693 million tonnes, data from the International Aluminium Institute showed. Nickel may trade of 2450-2600 levels. Vale Indonesia's nickel matte output in January- March stood at 13,827 tonnes, 9% lower than the 15,198 tonnes produced in the year-ago period, the company said. Zinc can move towards 390 with support of 355 levels. Lead can move in the range of 184-192 levels.
Cotton is trading in a broad range since last 3-weeks but sustaining at higher levels due to persistent demand from the local mills and lower arrivals as compared to last year. Currently we see good support at 43820 and resistance at 44970 levels so breaking either of the levels will decide the trend in the coming weeks. Government has decided to exempt all customs duty on import of cotton to control cotton prices in the country. Cotton prices have corrected fallen in the global market, as the exports from US is lower compared to last year amid stronger dollar. Currently, the domestic prices are high 99.5% y/y and jumped about 29% in 2022 due to concerns over lower production, slow arrivals, and better domestic demand. Currently, the domestic prices are high 106% y/y and jumped about 31% in 2022 due to concerns over production, slow arrivals, better domestic and exports demand. Farmers start early sowing of cotton to prevent pink bollworm infestation in Punjab in the anticipation of a better return this season, putting their hopes on the abnormally high temperature suitable for crop planting.
Guar seed futures also stuck in a range last week due to balanced supply and demand situation. Moreover, forecast of normal monsoon also kept the prices under control while export demand for guar gum is supporting prices. We expect the prices to trade between its support of 6100 and resistance of 6610 levels. Currently, prices are up 51% y/y on reports of lowest production last year in last 5 years, multi-year lower stocks and improving export demand due to higher crude oil prices. The US oil rig count is also higher at 548 up by about 204 compared to last year. In Feb 2022, Guar gum exports are higher by 55.6% y/y at 31000 tonnes while exports in 2021/22 (Apr-Feb) are up by 40% y/y at 2.95 lakh tonnes. Castor Seed is trading in a very narrow range due to peak arrivals witnessed in the physical market. Currently Castor seed May is experiencing resistance near 7300 levels. We expect prices to trade lower towards 6600 levels with resistance at 7360 while support at 6950 levels. Market is expecting heavy arrivals in April – May, this is putting pressure on prices but the support may come, if exports demand continues at the current high prices. Castor seed prices have increased 23% this year due to lower production estimates and higher by 37.5% y/y. Mentha Oil prices have corrected for the second consecutive week mainly due to profit booking at higher levels. Prices have surged to one year high in April first week. We see immediate resistance is 1120 levels and support is at 1095. The trend looks positive and likely to trade higher towards 1150levels in coming weeks.
ZINC MCX (MAY) contract closed at Rs. 370.55 on 21st Apr 2022. The contract made its high of Rs. 379.50 on 18th Apr’2022 and a low of Rs. 330.50 on 29th Mar’2022. The 18- day Exponential Moving Average of the commodity is currently at Rs 359.38. On the daily chart, the commodity has Relative Strength Index (14-day) value of 68.452.
One can buy near Rs. 365 for a target of Rs. 380 with the stop loss of 357.
CRUDE OIL MCX (MAY) contract was closed at Rs. 7865.00 on 21st Apr’2022. The contract made its high of Rs. 9315.00 on 08th Mar’2022 and a low of Rs. 6600.00 on 25th Feb’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 7794.19. On the daily chart, the commodity has Relative Strength Index (14-day) value of 53.094.
One can sell below Rs. 7800 for a target of Rs. 7500 with the stop loss of Rs 7950.
CASTOR SEED NCDEX (MAY)contract closed at Rs. 7228.00 on 21st Apr’2022. The contract made its high of Rs. 7642.00 on 01st Apr’2022 and a low of Rs. 7050.00 on 08th Apr’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 7216.65. On the daily chart, the commodity has Relative Strength Index (14-day) value of 50.186.
One can buy near Rs. 7170 for a target of Rs. 7500 with the stop loss of Rs. 7000.
CRB witnessed profit booking in previous week. Gold prices nudged lower as a rebound in U.S. Treasury yields tempered bullion's safe-haven demand stemming from the Ukraine crisis and its potential impact on the global economy. For the first time in the history of the Indian gem and jewellery, export grew by 93% in 2021-22 as compared to the previous year. According to the technical chart patterns, gold looks bearish and may post further selling where it may take support near 51300 and could find resistance near 53600 levels. Geopolitical risk and inflation pressure are currently the two primary drivers for the gold market. An aggressive Fed rate hike of 75 bps could be a short-term price damper, while elevated inflation due to supply shocks could mitigate the negative impact. Crude oil prices slipped after the UAE and the Iran-aligned Houthi group welcomed a truce that would halt military operations on the Saudi-Yemeni border, alleviating some concerns about potential supply issues. Oil prices settled down around 13% last week - their biggest weekly falls in two years - when U.S. President Joe Biden announced the largest-ever U.S. oil reserves release. After kissing $110 on NYMEX and 8372 on MCX, Prices slipped and witnessed profit booking. Based on technical chart pattern, prices are likely to take further correction where it may take support near 7600 and could face resistance near 8400 levels. Before witnessing selloff the Natural Gas, prices hit highest level in 14 years. On NYMEX, prices hit high of $8.065 and on MCX, it hit all-time high of 615.20 levels. In the base metals, copper prices fell and were on track for their third consecutive weekly loss, as rising inventories and COVID-19 lockdowns in top metals consumer China weighed on demand prospects for the red metal. Lead is the only metal which outperforms the other base metals counter and rallied over 3.5%.
Cotton prices rallied over 2.5% in the previous week; hit all time high on MCX & have been at 10- year highs in the international markets. Prices touched Rs 45,000 high here and since then there has been some profit-taking into the markets. Markets are reacting to the kind of import duty cuts from the Indian government. Till now, 5 percent of Customs duty and 5 percent of taxes have been waived off until September 30 to ensure or allow cheaper cotton imports. That is the reason behind the correction in the Indian markets. The global markets have also continued to see gains. China, which is the biggest exporter of yarn and cotton products, has seen exports declined by nearly 9 percent in March on a year-on-year basis.
Silver is known as precious metals as well as an industrial commodity. This is most versatile metal from industrial use to decoration, technology, photography and medicine. Silver had witnessed overall weak demand in 2020 amid the COVID-19 pandemic, which crippled the industrial sector that accounts for roughly 60% of the global silver consumption. Last year, every key element of demand rose for the first time since 1997. The increase in silver usage builds on a rebound from a slump during the early period of the covid-19 pandemic. The demands of the home working economy, a boom for consumer electronics, 5G infrastructure investments, inventory build along the supply pipeline and rising end-use in the green economy supported the overall demand.
Important fact about silver demand
With no clear end to the Russia- Ukraine war, the near-term outlook remains uncertain. Meanwhile, the jump in energy prices, ongoing supply chain disruptions and the re-emergence of COVID cases in China all point to growing downside risks for the global economy. With an aggressive Fed rate hike cycle still factored in, the possibility that these expectations will be scaled back in the coming months remains high. All these factors, along with persistently high inflation, may well encourage further investment inflows into silver. Silver demand will climb to a record level this year thanks to increasing use of solar panels as governments boost renewable energy to meet climate goals. Indian investment is set to recover further, although remaining below 2019 levels.
Rupee continued its losing streak below 76.00 vs dollar after US 10-year yield inching towards 3% which is inevitably weigh emerging currencies including rupee as well. Additionally net long dollar speculative positions vs rupee since the beginning of this year is still showing the upside momentum will continue amid Fed's tightening cycle. Although speculative positions may change hands quickly but broadly Asian currencies are under pressure now including Chinese yuan which fell to six months low vs dollar. Technically medium term support for the USDINR pair is still intact around 75.70 while strong resistance now remains 76.57 followed by 76.93 in coming days. The UK pound hit to the lowest level to 1.2906 vs dollar after UK retail sales volumes slid by 1.4% in March from February which is far below than estimated drop of 0.3%. We will maintain bearish view in GBPINR to fall below 98.00 in coming days. While euro somehow managed to hold this week fueled by reports that markets are betting on three 25 bp rate hikes from the ECB this year. Rising inflation is expected to pressure the central bank to raise its benchmark rate above zero (currently at -0.50%) for the first time in 10 years. Hawkish comments from a ECB Governing Council member spurred the change in market sentiment. However it will be very pre-mature for euro to support higher levels. Next week we can expect further slide in euro-rupee pair as well.
USD/INR (APR))contract closed at 76.2125 on 21-April-22. The contract made its high of 76.6400 on 19- April-22 and a low of 76.1200 on 21-April -22 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 76.1895.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 55.93.One can buy at 76.00 for the target of 77.00 with the stop loss of 75.50.
GBP/INR (APR)) contract closed at 99.5025 on 21- April -22. The contract made its high of 99.8500 on 19- April -22 and a low of 99.24500 on 19- April -22 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 99.6894.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 37.56. One can sell at 99.00 for a target of 98.00 with the stop loss of 99.50.
| 22th MAR | British retail sales fell sharply as inflation squeezes households |
| 22th MAR | UK consumer confidence plunged to near-record low |
| 22th MAR | Johnson to order further delay to UK border checkson EU imports |
| 22th MAR | Bailey warns of risk of persistent inflation from strong UK labour market |
| 21th MAR | Powell signals Fed prepared to raise rates by half-point in May |
| 21th MAR | Yellen calls for EU caution on Russian energy ban |
| 20th MAR | UN asks Sri Lanka to negotiate ‘debt-for-nature’ swaps to ease economic meltdown |
| 19th MAR | IMF cuts global growth forecast to 3.6% as Ukraine war hits neighbours hard |
| 18th MAR | China GDP beats forecasts but lockdowns weigh on economic outlook |
EUR/INR (MAR) contract closed at 83.0025 on 21- April -22. The contract made its high of 83.3100 on 21- April -22 and a low of 82.2975 on 19- April -22 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 83.2698.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 37.41. One can sell at 83.00 for a target of 82.00 with the stop loss of 83.50.
JPY/INR (MAR)) contract closed at 59.5800 on 21- April -22. The contract made its high of 60.5825 on 11- April -22 and a low of 59.3850 on 18- April -22 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 61.4250.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 24.77. One can sell at 60.00 for a target of 59.00 with the stop loss of 60.50.
The Rs.1,400 crore initial public offering of Campus Activewear will open for subscription on Tuesday. The company will sell 48 million shares at a price band of Rs.278-292 per share in the issue. The three-day offer will conclude on April 28. Bids can be made for a minimum of 51 shares and their multiples thereof. Currently, promoters hold a 78.21% stake in the company, while TPG Growth and QRG Enterprises own 17.19% and 3.86%, respectively. Campus Activewear will be the first IPO to be launched after market regulator Sebi amended its ICDR (Issue of Capital and Disclosure Requirements) regulations on allotment under the noninstitutional investor category and changed the lock-in period for anchor investors. BofA Securities, JM Financial, CLSA India, and Kotak Mahindra Capital are the bankers to the issue.
Rainbow Children's Medicare (RCML) has fixed the price band for its initial public offering (IPO) at Rs 516-542. The issue will be raising Rs 1,581 crore through its initial stake sale, the subscription for which will open on April 27 and investors can make their bids till April 29. Investors can bid for a minimum of 27 equity shares and in multiples thereafter. The issue consists of issuance of fresh equity shares aggregating to Rs 280 crore and an offer for sale (OFS) of up to 24 million equity shares by promoters and existing shareholders of the company. The net proceeds from the fresh issue will be utilized towards the early redemption of nonconvertible debentures (NCDs) issued by the company, along with capital expenditure towards setting up new hospitals and purchase of equipment. Backed by UK-based CDC Group, RCML operates a multi-speciality pediatric, obstetrics and gynaecology hospital chain in India. The company kicked off its operations in 1999. As of December 20, 2021, Hyderabad based Rainbow operated 14 hospitals and three clinics in six cities in India, with a total bed capacity of 1,500 beds. Kotak Mahindra Capital Company, JP Morgan India and IIFL Securities are the books running lead managers to the issue. KFin Technologies has been appointed as registrar to the issue.
Kaynes Technology India Limited (KTIL), an end-to-end and IoT solutions enabled integrated electronics manufacturing player, has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). The IPO consists of a fresh issue of equity shares aggregating to Rs 650 crore, and an offer for sale (OFS) of up to 7.2 crore equity shares by a promoter and an existing shareholder, according to the draft red herring prospectus (DRHP). The OFS comprises sale of up to 37 lakh equity shares by promoter Ramesh Kunhikannan and up to 35 lakh equity shares by existing shareholder Freny Firoze Irani. The offer also includes reservation of up to Rs 1.5 crore for subscription by eligible employees. The proceeds from the fresh issue worth Rs 130 crore will be used to repay debt and Rs 98.93 crore will be utilised for funding capital expenditure for its manufacturing facilities at Mysore and Manesar. The company has eight production plants in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu and Uttarakhand. It has a total capacity of approximately 600 million components as of December 2021. For FY21, the company posted a revenue of Rs 420.63 crore as against Rs 368.24 crore in the preceding fiscal. Net profit for the period under review was at Rs 9.73 crore as compared to Rs 9.35 crore in the previous financial year. DAM Capital Advisors and IIFL Securities are the book-running lead managers to the issue.
Senco Gold, a pan-India jewellery retailer, has filed a draft red herring prospectus with the Securities and Exchange Board of India to raise Rs 525 crore through an initial public offering (IPO). The IPO comprises fresh issue of equity shares aggregating up to Rs 325 crore and an offer for sale of equity shares aggregating up to Rs 200 crore by selling shareholder SAIF Partners India IV Limited. The company proposes to utilise Rs 240 crore of net proceeds from the fresh issue towards funding working capital requirements and the rest towards general corporate purposes. Besides, the company may consider a pre-IPO placement of equity shares aggregating up to Rs 65 crore. If the pre-IPO placement is undertaken, the amount raised from the pre-IPO placement will be reduced from the fresh Issue. The company recently entered into a share subscription with Oman India Joint Investment Fund Trustee Company Private Limited, the trustee of Oman India Joint Investment Fund II for the issue and subscription of 26,63,541 equity shares for an aggregate consideration of Rs 75 crore. The book running lead managers to the offer are IIFL Securities Limited, Ambit Private Limited and SBI Capital Markets limited. The equity shares are proposed to be listed on the BSE and NSE.
Prasol Chemicals, a specialty chemicals company, has filed draft papers for its initial public offering with the Securities and Exchange Board of India. The IPO consists of a fresh issue of up to Rs 250 crore with a face value of Rs 2 per share and an Offer For Sale of up to 9,000,000 equity shares by existing shareholders. “The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders,” the company said. As of December 31, 2021, the company had a portfolio of more than 140 products and a pipeline of 32 products under development. The company clocked a profit of Rs 50.10 crore in the nine months ended December 2021 against Rs 25.08 crore and Rs 37.77 crore in FY21 and FY20, respectively. JM Financial Limited and DAM Capital Advisors Limited are the book-running lead managers and Kfin Technologies is the registrar of the offer.
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The equity value of the domestic mutual funds or the assets under management (AUM) hit a record Rs 20 lakh crore in March following sustained inflow, according to the NSDL data. This includes equity funds, arbitrage funds, equity exposure in balance funds and exchange traded funds (ETFs). The local funds had the second largest equity AUM at the end of March 2022 following foreign portfolio investors (FPIs) with an AUM of Rs 47 lakh crore. The share of local mutual funds in the country’s market capitalization rose by 300 basis points to 8% over the past year. The AUM share of domestic funds in the total institutional equities rose by nearly 160 basis points to 17.4% in March. The total institutional equity AUM at Rs 117.7 lakh crore accounted for nearly half of India’s market capitalization. With a sustained local inflow, the ratio of the AUMs of the domestic funds and FPIs improved to 82.8% in March from 73% a year ago. The improving ratio implies that the country’s market cap will show lesser volatility in times higher redemption pressure by foreign investors. For instance, despite recent heavy selling by FPIs, Indian equities have shown limited impact.
Increasing awareness about mutual funds, ease of transactions through digitisation and sharp surge in equity markets have aided asset management companies to add a staggering 3.17 crore investor accounts in 2021-22, with experts saying the trend is likely to continue this fiscal as well. This was a significant rise from 2020-21 when 81 lakh accounts (or folios in mutual fund parlance) were opened, data with the Association of Mutual Funds in India (Amfi) showed. According to the data, the number of folios with 43 fund houses rose to 12.95 crore in March 2022 from 9.78 crore in March 2021, registering a gain of 3.17 crore during the one-year period. The industry crossed a milestone of 10 crore folios in May 2021. The number of folios under equity, hybrid and solution oriented schemes, wherein the maximum investment is from retail segment, stood at about 10.34 crore as of March 2022.
Strong SIP book and lower returns from traditional investments made equity mutual funds an attractive investment destination for investors with equity-oriented funds receiving a staggering net inflow of Rs 1.64 lakh crore in 2021-22. This comes following a net outflow of Rs 25,966 crore during 2020-21, data with Association of Mutual Funds in India (Amfi) showed. Going ahead, we expect the growing inflow trends in equity mutual funds to sustain given the current economic condition and markets, Manish Kothari- CEO and Co-Founder, ZFunds, said. According to the data, equity mutual funds witnessed a net inflow of Rs 1,64,399 crore in the entire 2021-22. This included an all-time high inflow of Rs 28,464 crore last month. The robust inflow pushed the asset base of equity mutual funds by 38 per cent to Rs 13.65 lakh crore at the end of March this year. The robust inflow pushed the asset base of equity mutual funds by 38 per cent to Rs 13.65 lakh crore at the end of March this year.
Equity mutual funds attracted a net sum of Rs 28,463 crore in March, making it the 13th consecutive monthly net inflow, amid a volatile stock market environment and continued FPIs (foreign portfolio investors) selling. In comparison, equity mutual funds saw a net inflow of Rs 19,705 crore in February, Rs 14,888 crore in January and Rs 25,077 crore in December 2021. Equity schemes have been witnessing net inflow since March 2021, highlighting the positive sentiment among investors. Prior to this, such schemes had consistently witnessed outflows for eight months from July 2020 to February 2021 losing Rs 46,791 crore. Within the equity segment, all categories saw net inflows. Multi-cap fund category saw the highest net inflow of Rs 9,694 crore, followed by large & mid-cap fund and large cap fund that witnessed over Rs 3,000 crore net infusion each. However, the debt segment saw a net outflow of Rs 1.15 lakh crore last month, after witnessing a net inflow of Rs 8,274 crore in February.
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