Last week, global stock markets rose after the release of the minutes from the January 30-31 Federal Open Market Committee meeting. The minutes revealed policymakers' ongoing concerns about inflation, with some worried that progress towards the central bank's 2% target could stall. This reinforced the Fed's preference for more evidence of a consistent downward trend in inflation. European stocks have attracted growing investor interest recently, partly due to increasingly expensive valuations of global companies listed in the US. While Eurozone manufacturing activity declined in February, the services sector returned to growth, according to preliminary data. The manufacturing purchasing managers' index fell to 46.1, but the services PMI rose to 50.0. Meanwhile, China's central bank cut a key lending rate to support its struggling housing market and boost economic growth. In Japan, factory activity continued to decline, and service sector growth eased in February, as indicated by the au Jibun Bank flash Japan composite PMI, which fell to 50.3 from 51.5 in January.
The Indian stock market enjoyed a buoyant week, with both the Nifty and Sensex posting gains. This positive performance was fueled by a combination of domestic and global factors. Additionally, optimism returned to global markets, driven by positive earnings reports from companies like chipmaker Nvidia. This boosted investor sentiment, leading to a sharp rebound in the latter half of the week. While banking and financial sectors saw some losses, IT, metals, and auto sectors emerged as major gainers. On the economy front, India's economic activity remained strong, with both service and manufacturing PMIs showing improvement. Looking ahead, the market will continue to be influenced by both domestic and global cues, so stay tuned for further developments!
The CRB index, a measure of commodity prices, staged a comeback after recent dips. This rebound is likely due to a temporary break in the dollar's upward trend. While the appreciating Indian Rupee kept gold prices in check after a brief recovery, silver continued to slide, pushing the gold-silver ratio wider once again. Natural gas has received much-needed support after a three-week plunge, whereas WTI crude oil encountered resistance around the $80 mark, prompting a retreat from its recent highs. The trading range for natural gas is anticipated to be between 130 and 175, while crude oil may face resistance near 6600. Gold and silver are expected to trade within the ranges of 61500-62500 and 69000-72400, respectively. Various economic indicators such as inflation data from Japan and France, consumer confidence, inflation rate, and unemployment rate of Germany, durable goods orders, GDP growth rate, core PCE price index, PCE price index, ISM manufacturing PMI, Michigan Consumer Sentiment Final, and consumer confidence in the US, GDP growth rate of Switzerland, Canada, and India, manufacturing PMI of China, core inflation rate of the Euro Area, GDP growth rate, and inflation rate of Italy, among others, are significant factors that could contribute to volatile movements in commodity 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.
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 continues to report robust execution momentum led by growing order book in Q3FY2024. It has strong order book with highest ever quarterly order inflow in Q3FY2024 aided by ultra-mega Hydrocarbon orders in GCC. Moreover, the company is focused on tapping emerging opportunities both in India and overseas with its proven competence in the domains of engineering, manufacturing, construction, project management and services for profitable execution of its large order book. As it has always been, the company continues to remain committed to creating sustainable long-term returns for its stakeholders. Thus, it is expected that the stock will see a price target of Rs. 3905 in 8 to 10 months'time frame on 2 yrs average P/E of 31.83x and FY25 EPS of Rs. 122.68.
The company`s premiumization efforts has helped to gain market share in all the major markets, indicating future growth visibility. The excellent harvest, the ongoing boom in domestic wine tourism, and more consumers choosing premium Indian wines bode well for the future. Thus, it is expected that the stock will see a price target of Rs. 734 in 8 to 10 months' time frame on current P/BV of 8.99x and FY25 BVPS of Rs.81.69.
The stock closed at Rs.3927.05 on 23rd February, 2024. It made a 52-week low of Rs.2836 on 28th March, 2023 and a 52- week high of Rs.4200 on 04th December, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.3629.
After hitting 52 week high 4200 in late December 2023, the stock witnessed a series of profit booking as once again prices seen retraced back towards its 200 DEMA on daily charts. However, double bottom formation along with V shape recovery from 3600 levels had been witnessed into the stock thereon, as stock maintains its bullish momentum. At current juncture, the stock has formed an Inverted Head & shoulder pattern and is on verge of fresh breakout above the neckline of the pattern formation. The positive divergences on secondary oscillators suggest for next upswing into the prices. Therefore, one can buy the stock in the range of 3900-3930 levels for the upside target of 4550-4600 levels with SL below 3550 levels.
The stock closed at Rs.2075.90 on 23rd February, 2024. It made a 52-week low at Rs.1297.80 on 28th March, 2023 and a 52-week high of Rs.2095 on 23rdFebruary 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.1835.
In recent past stock took support around its 200 DEMA on daily charts and bounced back sharply to reclaim a move above 1800 levels. From last six to eight months stock has been consolidating in broader range of 1700-2000 zone as prices can be seen fluctuating above its 200 days exponential moving average on daily charts. Last week stock has managed to give fresh breakout above 2000 levels after a series of prolong consolidation phase. The positive divergences on secondary oscillators along with prices action suggest for next upswing as follow up buying is expected in a stock after a breakout. Therefore, one can buy the stock in the range of 2050-2075 levels for the upside target of 2550-2600 levels with SL below 1700 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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Nifty reached to record highs last week, while Banknifty concluded the week with marginal gains. On the sectorial front, realty, consumer durable and FMCG stocks outperformed in the previous week, whereas PSE, IT, along with oil & gas stocks underperformed. In the Nifty options segment, the highest call open interest is held at 22500 strike followed by 22300 strike whereas on the put side, significant open interest is at the 22,000 strike. For Banknifty, the highest call open interest is at the 47,000 strike while the highest put open interest is at the 47,000 strike followed by 46500 and 46000 strike. Implied volatility (IV) for Nifty's call options settled at 13.76%, while put options concluded at 14.03%. The India VIX, a key indicator of market volatility, concluded the week at 15.2%. The Put-Call Ratio Open Interest (PCR OI) stood at 1.05 for the week indicating more put writing than call which is a bullish sign. For the upcoming week, we expect markets to trade in a range bound manner. However bias is likely to support bullish moves with stock and sector specific actions. Traders are advised to use these dips for creating fresh long positions.
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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 traded sideways to higher last week following firm cues from lingering concerns over weaker supply outlook for upcoming season. Impact of lower production is being seen on arrival pace as about 6278 tonnes of arrivals touched the major APMC market so far in Feb'24 against the 23760 tonnes of turmeric of previous year. Prevailing supply tightness is likely to lure stockists to buy turmeric at every dips in prices. Prices seasonality of turmeric suggests prices to remain higher during Feb-Mar mainly due to festive buying. In the wake of series of festivals ahead in coming months and commencement of wedding season demand is likely to keep buyers engage in active buying. Production is likely to be dropped by about 20% due to lower area under turmeric amid tumbling yield. However, reports of bleak exports in recent months is likely to cap the excessive gains as turmeric export from India dropped 13% Y-o-Y in Dec'23 reported at 10.4 thousand tonnes due to lower buying from Bangladesh. India exported about 121.17 thousand tonnes of turmeric during Apr'23-Dec'23 down by 2.27% Y-o-Y. Turmeric prices are expected to face resistance near 16150 in the near term wherein support is anticipated near 14400.
Dhaniya prices rose sharply tracking firm demand in physical market as well as in overseas market. Fear of yield losses sparked with recent rainfall in northern and central part of India supported buying activities in physical market. Production is likely to be down about 10-15% Y-o-Y due to fall in area and yield. India exported about 78.47 thousand tonnes of coriander during Apr-Dec in year 2023 compared to 24.8 tonnes of previous year up by 215% Y-o-Y. Firmness in dhaniya is likely to remain intact due to bleak supply outlook supported by lower production estimates. However, new arrivals are likely to commence in coming weeks that will cap the excessive gains. Dhaniya prices are likely to trade in range of 7320-8450.
Jeera futures surged up further on improved export enquire at prevailing rates. Jeera prices have turned competitive at prevailing rates that attracted international buyers. Exports seasonality of jeera suggest that export demand remains higher during Feb-Mar due to strong demand prospects ahead in wake of series of festivals in Mar-Apr. Jeera exportfrom India rose in Dec'23 with increased demand as India exported about 12.23 thousand tonnes in Dec'23 as compared to 11.79 thousand tonnes of previous year. However, overall export during Apr'23- Dec'23 remained down by 30% Y-o-Y reported at 96.7 thousand tonnes. Gains are likely to be limited in expectations of a bumper crop. Production forthe year 2024- 25 is likely to be increased by around 30% year-on-year, with a substantial rise in cultivation area. Jeera prices are likely to trade in range of 23500-34500.
Gold experienced weekly gains driven by a weakening U.S. dollar and escalating tensions in the Middle East, amplifying bullion's allure. Robust physical buying, particularly from central banks, combined with the stable dollar, provided support to gold. Geopolitical uncertainties, particularly in the Middle East, added further bolstering to gold's value. Tensions escalated as Yemen's Iranaligned Houthis claimed responsibility for attacking a UK-owned cargo ship and targeted Israel's port city of Eilat with ballistic missiles and drones. Simultaneously, the dollar index was poised for its first weekly decline in almost two months, making gold more affordable for international buyers. However, hopes for an early interest rate cut from the Federal Reserve were tempered by recent data indicating higher-than-anticipated U.S. consumer and producer prices, thereby restraining bullion's gains. Fed Governor Christopher Waller advocated for a delay in rate cuts, suggesting a wait of at least a couple of months to evaluate if the recent uptick in inflation indicates a hindrance to progress towards price stability or is merely a transient issue. Market sentiment currently leans towards a 62% probability of a Fed rate cut in June, as indicated by the CME Fed Watch Tool. In Comex trading, gold prices are encountering resistance near $2060 and finding support around $1990. The breakout above or below these levels will likely determine gold's next trend. Silver is anticipated to trade within the range of $21.90 to $24.20. Looking ahead, gold prices are expected to sustain buying interest, with potential support near 61000 and resistance near 63000. Silver prices may continue trading within the wider range of 68900-72500. Investors are closely monitoring geopolitical developments and inflation data to gauge the future trajectory of precious metal prices.
Crude oil ended the week with minimal changes as investors weighed various demand and supply factors. Earlier, prices dropped nearly 2% due to concerns about prolonged higher interest rates and uncertainties surrounding demand. Strong US inflation data reinforced expectations of the Federal Reserve maintaining borrowing costs at elevated levels. Additionally, the International Energy Agency reported a slowdown in global oil demand due to the transition towards renewable energy sources. However, towards the end of the week, the market regained some of its losses as supply worries resurfaced amidst escalating geopolitical tensions in the Middle East. US crude inventories rose less than anticipated, adding support to prices. Concerns intensified over the IsraelHamas conflict potentially expanding to Lebanon, further bolstering crude prices. Additionally, airstrikes against Houthi rebels in Yemen disrupted global crude oil supplies by diverting shipments around Africa's southern tip. Looking ahead, prices may find support around 6250 and face resistance near 6600. In contrast, natural gas prices surged as the largest US gas producer announced plans to reduce production by approximately 20% due to market conditions. Prices had plummeted earlier in the year to a 3-1/2 year low due to a mild winter, which reduced heating consumption and led to an oversupply. Nat-gas prices are also under pressure from the announcement by the Freeport LNG nat-gas export terminal in Texas on January 26 that it was forced to shut down one of its three production units for a month for repairs after extreme cold in Texas damaged equipment. The closure of the unit will limit U.S. nat-gas exports and increase U.S. nat-gas inventories. Expectations of continued volatility persist, with support likely around 130 and resistance near 160.
Base metals may trade in the range on mixed fundamentals. The counter may get support on hopes of strong demand outlook in top metals consumer China following Beijing's efforts to boost its economy and property sector. China announced its biggest ever reduction in the benchmark mortgage rate, cutting the five-year loan prime rate by 25 basis points. However, investors are looking for more action from the central bank. The China's property crisis is seen as one of the biggest stumbling blocks to a sustainable economic recovery, with rising risks of default among private developers. Copper may trade in the range of 720- 745 levels. Analysts have forecast a copper deficit from this year on signs that supply may not be as robust as previously thought after Panama ordered the closure of First Quantum's 350,000-ton mine and producers such as Anglo American and Vale Base Metals lowered annual guidance. The global refined copper market showed a 20,000-metric-ton surplus in December, compared with a 123,000-metric-ton deficit in the prior month, the International Copper Study Group said in its latest monthly bulletin. Zinc can trade in range of 202-222 levels. Lead can move in the range of 175-184 levels. Zinc and lead are seen as well supplied markets this year and the median forecast is for both to rack up significant supply surpluses of 300,000 and 71,820 tonnes respectively. Aluminium can trade in the range of 194-208 levels. The International Aluminium Institute released data showing that global primary aluminium production increased by 2.4% year-on-year in January to 6.039 million tonnes, with a daily average production of 194,800 tonnes. Steel long (Mar) is likely to trade in the range of 41700-43400 levels with negative bias.
It closed at Rs.733.25 on 22nd Feb 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs.725.47. On the daily chart, the commodity has Relative Strength Index (14-day) value of 36.129. Based on both indicators, it is giving a sell signal.
One can sell near Rs.735.00 for a target of Rs.720.00 with the stop loss of 745.
It closed at Rs.6535.00 on 22nd Feb 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs.6381.56. On the daily chart, the commodity has Relative Strength Index (14-day) value of 40.643. Based on both indicators, it is giving a buy signal.
One can buy near Rs.6350 for a target of Rs.6700 with the stop loss of 6200.
It closed at Rs.7786.00 on 22nd Feb 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs.7715.83. On the daily chart, the commodity has Relative Strength Index (14-day) value of 59.941. Based on both indicators, it is giving a sell signal.
One can sell near Rs.7800 for a target of Rs.7400 with the stop loss of 8000.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
The CRB index showed resilience with a robust recovery following previous declines; closed above 315, attributed to a temporary halt in the dollar index rally. The appreciation of the Indian Rupee curbed movement in gold prices, which rebounded after a two-week slump, while silver experienced a decline, widening the gold-silver ratio once more. Gold prices edged up supported by safe-haven demand amid rising geopolitical tensions in the Middle East and a softer dollar, while minutes of the latest U.S. Federal Reserve meeting dampened hopes for an early interest rate cut. January inflation data, with consumer prices rising faster than anticipated, complicate upcoming Fed rate decisions. Natural gas found much-needed support after a three-week plunge, whereas WTI crude encountered resistance around the $80 mark and retreated from its recent highs. Oil prices rose slightly amid signs of tighter supply. Copper saw a second consecutive week of recovery, although on the MCX, it faced a downturn from its peak. Lead, aluminum, and zinc all followed bearish cues, moving downward on demand concern in top metals consumer China. China announced its biggest reduction in the benchmark mortgage rate, as authorities sought to prop up the struggling property market and broader economy.
Castor seed prices failed to maintain higher levels, breaking below the 5800 support mark. Cotton witnessed a substantial increase in prices over the past six weeks, contrasting with a decline in kapas. Guar showed strength with renewed buying interest. India has exported about 65.03 thousand tonnes of guar exports in cumulative in form of meal and gum down by 9% Y-o-Y. However, short covering witnessed due to shrinking supplies. Jeera halted its fourweek decline to close above 27000. Spot prices in Unjha market dropped by 8.7% W-o-W due to muted domestic buying but still ruling at premium of about 4500 over futures, it sparked short covering in futures market as futures prices have tendency to trade above to the spot. Turmeric extended its upward trend for a second week, and dhaniya had a positive week as buying resumed following three weeks of selling pressure weaker production outlook in India. India exported about 3.05 thousand tonnes of coriander in Nov'23 as compared to 2.4 tonnes of previous year whereas total exports during Apr'23-Nov'23 was reported at 73.18 thousand tonnes against the 21.3 thousand tonnes of previous year up by 243% Y-o-. Arrivals have picked up but still lower as compared to last year due to delayed harvest in Telangana in turmeric.
Copper is often viewed as a barometer of economic demand given its use in a broad number of industrial applications. Alongside the world's growing commitment to efforts in sustainability and efficiencies in multiple industries, copper is leading the charge in finding new ways to do old things.
After touching the Rs 886 mark in the first quarter of 2022 on MCX, prices have been unable to return to that level, pressured by global economic uncertainty related to inflation and weak demand from China. But the long-term picture for copper, which has high electrical conductivity, is still bright—the green energy transition is expected to see demand for the base metal increase.
Factors impacting the copper market:
Rising interest rates along with Inflation & slowing global growth
As per International Monetary Fund, global growth is projected to stay at 3.1 percent in 2024 and rise to 3.2 percent in 2025. Elevated central bank rates to fight inflation and a withdrawal of fiscal support amid high debt weigh on economic activity. Inflation is falling faster than expected in most regions, amid unwinding supply-side issues and restrictive monetary policy. Global headline inflation is expected to fall to 5.8 percent in 2024 and 4.4 percent in 2025, with the 2025 forecast having been revised down. As of February 2024, global inflation seems to have peaked but remains above central bank targets in many countries. This could put mixed pressure on copper demand.
China's growth & demand of base metals
China's stuttering economy is now the biggest threat to global commodities demand, as economic activity and credit flows in the world's top buyer deteriorate sharply and put Beijing's modest growth targets at risk. China's property sector, which typically accounts for more than a quarter of the overall economy, has slowed markedly because of a two-year liquidity crisis. The People's Bank of China is widely expected to keep its loan prime rates at record lows as it moves to shore up economic growth. But despite simulative measures, the outlook for China's property market remains largely unresponsive.
The green energy transition
As the world moves away from fossil fuels, the use of copper to electrify the world will become essential. Most analysts agree that the base metal is bound to be a winner of the green energy transition. In fact, electric vehicles use three times more copper than internal combustion engine cars — add to that the use of copper in electric vehicle charging stations and energy storage systems, and the demand keeps on growing.
Copper Production & demand estimates
Preliminary data from ICSG indicates World copper mine production is increased by 1% in 2023. World refined copper production increased by about 6% in 2023 with primary production up by 5% and secondary production (from scrap) up by 9%.
Preliminary data suggests that world apparent refined copper usage grew by about 4% in 2023. Growth in world refined usage was mainly supported by strong apparent demand in China, with usage in the rest of the world estimated to have declined. In 2023, the world refined copper balance indicated a preliminary deficit of about 87,000 t. The world refined copper balance adjusted for estimated changes in Chinese bonded stocks suggested a market deficit of about 113,000 t.
Copper is essential to economic activity and the modern technological society. Additionally, infrastructure developments in major countries and the global trend towards cleaner energy and electric cars will continue to support copper demand in the longer term.
The Indian Rupee hit a five-week high of 82.82 againstthe US Dollar due to improved global risk sentiment driven by a broaderrally in equities. However,the rupee's gains may be limited by persistent comments from Fed officials indicating a desire to keep the Fed Funds rate higher. The first Fed rate cut may occur in June, according to rate derivatives pricing. USD/INR is trading near its 200-day moving average, and a close below 82.77, which was January 15 low could lead to a further decline towards 82.60 in coming days. Resistance levels are at 83.00 and 83.09. The central bank is expected to intervene around the 82.80 level in the coming sessions to support the USD/INR pair. In major currencies, the Euro recorded its biggest weekly gain in the last two months against the Dollar, following a scaling back of rate cut expectations from the ECB in derivatives markets. Futures now price in about 90 basis points of cuts, down from nearly 160 basis points at the beginning of the year. This shift comes as data from business surveys suggest the Eurozone's economic downturn is easing. Sterling posted significant gains against both the Rupee and the Dollar after a stronger-than-expected British business survey in January. The market currently reflects just under a 50% chance of a BoE rate cut by June, and a cut by August is seen as almost certain, which could push the pound higher in the coming days. The Japanese Yen weakened, with USD/JPY drifting back below 150.40 against dollar in the wake of rising yields. JPY/INR is also expected to remain weak, with key support at 54.40 in the coming days. Looking ahead to next week, key data to watch includes the Fed's preferred measure of inflation, which is likely to increase by 0.3% in January, providing additional support to the dollar globally.
USDINR (FEB) pair is currently in an Mild Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 83.04. However, the pair is in Borderline territory with a Relative Strength Index (14- day) value of 38 on the daily chart. Major support is seen around 82.6 levels, while resistance is expected near 83.4 levels.
One can sell near 83.1 for the target of 82.6 with the stop loss of 83.4
GBPINR (FEB) pair is currently in an Mild Bullish trend as trading above its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 104.9. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 50 on the daily chart. Major support is seen around 104.2 levels, while resistance is expected near 105.8 levels.
One can buy near 104.8 for the target of 105.8 with the stop loss of 104.3
EURINR (FEB) pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 89.8. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 47 on the daily chart. Major support is seen around 89.28 levels, while resistance is expected near 90.7 levels.
One can buy near 89.65 for the target of 90.65 with the stop loss of 89.15
JPYINR (FEB) pair is currently in an Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 55.94. However, the pair is in oversold territory with a Relative Strength Index (14-day) value of 30 on the daily chart. Major support is seen around 54.6 levels, while resistance is expected near 55.94 levels.
One can sell near 55.6 for the target of 54.6 with the stop loss of 56.1
Bharat Highways InvIT, an infrastructure investment trust said it will launch its Rs 2,500 crore initial public offering (IPO) on February 28. The InvIT's maiden public issue will conclude on March 1 and the price band has been set at Rs 98-100 per unit for the issue, Bharat Highways InvIT said in a statement. Proceeds from the issue will be utilised to provide loans to the project SPVs (special purpose vehicles) for repayment of their outstanding loans. Bharat Highways InvIT is an infrastructure investment trust established to acquire, manage, and invest in a portfolio of infrastructure assets in India and to carry on the activities of an infrastructure investment trust under Sebi's InvIT rule. Its initial portfolio consists of seven road assets, all operating on HAM (hybrid annuity model) basis, in Punjab, Gujarat, Andhra Pradesh, Maharashtra, and Uttar Pradesh consisting of about 497.292 km of constructed and operational roads. Additionally, the InvIT has entered into an agreement with G R Infraprojects (GRIL) after which GRIL granted a right of first offer to the InvIT to acquire certain of its road assets. About 75 percent of the issue size has been reserved for qualified institutional bidders (QIBs) and 25 percent for non-institutional investors (NIIs). Investors can bid for a minimum of 150 units in one lot and in multiples of 150 units thereof. ICICI Securities, Axis Capital, HDFC Bank, and IIFL Securities are the book running lead managers to the issue.
Mumbai-based stabiliser manufacturer Platinum Industries Ltd has set a price band of Rs 162-171 a share for its initial public offering that will open for subscription on February 27. The issue will close for subscription on February 29, while the anchor book of the IPO will open for a day on February 26. The allotment will be on February 29 and refunds will be on March 4. The shares of the company will be listed on the exchanges on March 5. On the upper band, the fresh issue size will be around Rs 235 crore and after listing, the market capitalisation of the company will be Rs 704 crore. Proceeds from the issue will be used to invest in its arm Platinum Stabilizers Egypt LLC for financing its capital expenditure requirements in relation to the setting up of a manufacturing facility for PVC Stabilizers at SC Zone in Egypt. The firm will also use funding of capital expenditure requirements of the company towards setting up of a manufacturing facility for PVC Stabilizers at Palghar and other working capital requirements. Platinum, which operates in the speciality chemicals industry, manufactures PVC stabilizers, CPVC additives and lubricants, which are used in PVC pipes, PVC profiles, PVC fittings, electrical wires, and cables, SPC floor tiles, Rigid PVC foam boards, and packaging materials. It does not have listed peers that exclusively undertakes the manufacturing of PVC stabilizers and CPVC additives. Promoters hold 94.74 percent stake in the company, while public shareholders, including Dr Horst Michael Schiller, have 5.26 percent shares. Unistone Capital is the sole book running lead manager to the issue.
EV charger manufacturer Exicom Tele-Systems Ltd has set a price band of Rs 135-142 a share for its public issue that will open for bids on February 27. The anchor book will open on February 26 and the issue will close on February 29. Basis of allotment will be on March 1 and the stock will list on the exchanges on March 5. The public offer comprises a fresh issue of shares worth Rs 329 crore and an offer-for-sale of 70.42 lakh shares. On the upper band price, OFS will be worth Rs 98.59 crore and total issue size will be at Rs 428 crore. The total market capitalisation after listing will be around Rs 1,700 crore. The proceeds from the issue worth Rs 145.77 crore will be used to part finance setting up the production lines at a planned manufacturing facility in Telangana. The company operates three manufacturing units in India - one in Solan, Himachal Pradesh, and two in Gurugram, Haryana. The company will use Rs 50.30 crore for repayment of debt. As of December 2023, its total borrowings stood at Rs 95.34 crore. NextWave Communications, Satellite Finance and Vinsan Brothers hold a 76.55 percent, 4.64 percent and 4.35 percent stake in the company, respectively. HFCL has a 7.74 percent stake in the company. The HFCL stock has gained over 30 percent year-to-date mainly because of the upcoming IPO of Exicom. Monarch Networth Capital, Unistone Capital, and Systematix Corporate Services are lead managers. The company, led by NextWave Communications and Anant Nahata, focuses on EV chargers and critical power solutions with a 60 percent market share in residential charging and 25 percent in public charging as of March 31, 2023, deploying over 35,000 chargers across 400 locations in India.
Gurugram-based diagnostics company Agilus Diagnostics, earlier known as SRL, has withdrawn its initial public offering plan on February 12. The Agilus Diagnostics IPO consisted of only an offer-for-sale (OFS) of 1,42,33,964 equity shares by the existing shareholders, with no fresh issue component. International Finance Corporation, NYLIM Jacob Ballas India Fund III LLC, and Resurgence PE Investments were the selling sharehol ders in the OFS. As per the processing status of draft offer documents published dated February 16, the capital market regulator SEBI said Agilus Diagnostics has withdrawn its public issue on February 12. Agilus, one of India's largest diagnostics service providers with a network of 413 laboratories, had filed draft red herring prospectus with the SEBI on September 29, 2023. As per the said DRHP, promoter Fortis Healthcare held 57.68 percent stake in Agilus Diagnostics, while the 42.32 percent shares were held by public shareholders.
The stock of Thaai Casting made an impressive debut, listing at a 141.42 percent premium over the IPO price on February 23. The stock opened at Rs 185.9 against the issue price of Rs 77 on the NSE SME platform. The company's promoters are Sriramulu Anandan, Anandan Shevaani and Chinraj Venkatesan. GYR Capital Advisors was the book-running lead manager, Purva Sharegistry India was the registrar and Giriraj Stock Broking and Commodity Mandi were the market-makers for the issue. The company plans to use the net fresh issue proceeds to meet the capital expenditure and for general corporate purposes. Thai Casting is an automotive ancillary company specialising in high-pressure die-casting, as well as the precision machining of both ferrous and non-ferrous materials and Induction heating and quenching.
Fabric maker Kalahridhaan Trendz listed at a 4.7 percent premium over the issue price on February 23. The stock opened at Rs 47.15 on the NSE SME platform against the issue price of Rs 45. Interactive Financial Services was the book-running lead manager, Bigshare Services was the registrar and Sunflower Broking was the market-maker for the issue. The company plans to use the proceeds to meet the working capital requirements and for general corporate purposes. Kalahridhaan Trendz manufactures and trades fabrics with embroidery, trading grey fabrics, buying grey fabrics and printing and dyeing of suiting, shirting and dress fabrics for sale in the B2B market. The company has a manufacturing facility in Ahmedabad, Gujarat.
The stock of Interiors and More made a decent debut with 18.9 percent premium gains over the IPO price on February 23. The shares opened at Rs 270 each against the issue price of Rs 227 on the NSE SME platform. The company's promoters are Manish Mohan Tibrewal, Rahul Jhunjhunwala, Ekta Tibrewal, Puja Jhunjhunwala and Reena Jhunjhunwala. Gretex Corporate Services was the book-running lead manager, while Bigshare Services was the registrar and Gretex Share Broking was the market-maker for the issue. The company plans to use the net fresh issue proceeds to repay or prepay certain debt facilities, working capital requirements and general corporate purposes.
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Canara Robeco Mutual Fund has launched a manufacturing fund scheme to capitalise on India's potential to become the next world's factory. The Canara Robeco Manufacturing Fund is an open-ended equity scheme that represents India's manufacturing theme and will be benchmarked against the S&P BSE India Manufacturing Total Return Index. The NFO, which opened on February 16, closes March 1. Manufacturing is a relatively new category for mutualfunds - there are only five active schemes with this theme. The fund enters the market at a pivotal moment when there is a rising middle class and rising working-age population in India, Canara Robeco Mutual Fund CEORajnish Narula said. “India seems to be well-positioned to become an attractive investment destination.This fund will seek to benefitfrom policy reforms likeAtmanirbhar Bharat, Production Linked Incentive Scheme, Make in India, Single Window Clearance and import substitution," he said.The fund will invest a minimum of 80 percentinto manufacturing and allied stocks, 0-20 percentin equity and equity-related instruments of companies other than those engaged in manufacturing theme, 0-20 percentin debt and debt marketinstruments and 0-10 percentin units issued by Real estate investmenttrusts (REITs) and infrastructure investmenttrusts (InvITs). The minimum investmentin the fund is Rs 5,000 and in the multiplies of Re 1,thereafter. The fund managers forthis scheme are PranavGokhale (seniorfund manager) and Shridatta Bhandwaldar,Head Equities, Canara RobecoAMC.
ICICI Prudential Mutual Fund announced the launch of ICICI Prudential Nifty LargeMidcap 250 Index Fund, an open-ended index scheme replicating the Nifty LargeMidcap 250 Index. The new fund offer or NFO of the scheme is open for subscription and will close on March 7. The scheme will re-open for continuous sale and repurchase within five business days from the date of allotment. The investment objective of the scheme is to invest in companies whose securities are included in the Nifty LargeMidcap 250 Index in the same weightage that they represent in the Nifty LargeMidcap 250 Index to achieve the returns of the above index, subject to tracking errors. The scheme will be benchmarked against Nifty LargeMidcap 250 TRI. It will be managed by Nishit Patel, Priya Sridhar and Kewal Shah. The exit load will be nil. The maximum total expense ratio (TER) permissible under Regulation 52 (6) (c) (i) and (6) (a) is up to 1% and additional expenses for gross new inflows from specified cities is up to 0.30%.The scheme will offer regular and direct plans with both growth and IDCW options. The minimum application amount is Rs 100 (plus in multiples of Re 1). The minimum application amount for switch-ins is Rs 100 and any amount thereafter. The minimum application amount for daily, weekly, fortnightly and monthly SIP is Rs 100 (plus in multiples of Re 1) with a minimum of six instalments. The minimum application amount for quarterly SIP is Rs 100 (plus in multiples of Re 1) with a minimum of four instalments.
Mirae Asset Mutual Fund has filed a draft document with Sebi for the Nifty MidSmallcap400 Momentum Quality 100 ETF. Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF will be an open-ended scheme replicating/tracking Nifty MidSmallcap400 Momentum Quality 100 Total Return Index. The investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Nifty MidSmallcap400 Momentum Quality 100 Total Return Index, subject to tracking error. The scheme will be benchmarked against Nifty MidSmallcap400 Momentum Quality 100 TRI (Total Return Index) and managed by Ekta Gala and Vishal Singh. The creation unit size for the scheme shall be 2,10,000 units. The minimum application amount will be Rs 5,000 per application and in multiples of Re 1 thereafter. Units will be allotted in whole figures and the balance amount will be refunded. There will be no exit load for investors transacting directly with the AMC as the exit load will be levied on redemptions made by Market Makers/ Large Investors directly with the AMC. Exit load is not applicable for investors transacting on the exchange. The scheme will invest 95-100% in securities included in the Nifty MidSmallcap400 Momentum Quality 100 Index and 0-5% in money market instruments/debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds. The investment strategy of the scheme will be to invest in a basket of securities forming part of the Nifty MidSmallcap 400 Momentum Quality 100 Index in a similar weight proportion. The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, considering the change in weights of stocks in the index as well as the incremental collections/redemptions in the scheme. Apart of the funds may be invested in debt and money market instruments, to meet the liquidity requirements.
Quantum Mutual Fund launchedQuantum MultiAssetAllocation Fund, an open-ended scheme investing in equity and equity-related instruments, debt and money market instruments, and gold-related instruments. The new fund offer or NFO of the scheme is open for subscription and will close on March 1. The investment objective of the scheme is to generate long-term capital appreciation/income by investing in a diversified portfolio of equity and equity-related instruments, debt and money market instruments and gold-related instruments. The scheme will have a direct and regular plan and will be managed by Chirag Mehta and Pankaj Pathak. It will be benchmarked against NIFTY 50 TRI (40%) + CRISIL Short Term Bond Fund AII Index (45%) + Domestic Price of Gold (15%). The scheme will allocate 35-65% in equity and equity-related instruments, 25-55% in debt and money market instruments, and 10-22% in gold-related instruments. It will predominantly investin securities ofthe Nifty50 index and otherlargecap stocks forits equity component, sovereign and PSU debt securities across durations for its fixed income allocation and Quantum Gold ETF and other gold-related instruments for its gold component. The minimum application amount for a lump sum investmentis Rs 500 and in multiples of Re 1 thereafter and minimum additional investment can be made in Rs 500 and in multiples of Re 1 thereafter / 50Units.
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