In the week gone by, anxiety that spread of Covid-19 variants could upend growthn going forward, back-pedalled reflation trades in global markets. Global market also remained weak following sharp moves in government bonds that hinted at slower growth and inflation than previously expected. Losses were led by companies that would benefit from a rapid economic comeback from the virus. On the data front, the Labor Department’s latest jobless claims data came in unexpectedly higher at 373,000, signaling a possible slowdown in the labor picture amid the Covid recovery. The Fed minutes indicated officials weren’t ready to communicate a schedule for scaling back their bond-buying program, due to high uncertainty over the course of the recovery. Meanwhile, China's consumer price index for June rose 1.1% as compared with a year ago. Whereas the producer price index for June rose 8.8% as compared with a year ago.
Back at home, pessimistic global cues dented the morale of domestic market with selling pressure seen across the sectors amid high volatility. Meanwhile, Automobile retail sales data showed signs of recovery in June due to pent-up demand as states eased lockdown restrictions and showrooms slowly reopened, raising expectations of better sales in July. On the flip side, devastated by the second wave of the pandemic, activity in the country’s crucial services sector contracted at its sharpest pace in nearly one year in June as firms witnessed decline in sales and output. Registering 41.2 in June, the India Services Business Activity Index highlighted a further contraction in output. In its first Cabinet meeting after reshuffle, the Centre approved the Rs 23,123 crore package allocated for emergency response to Covid-19, with the focus on immediate needs for the next nine months of FY 21-22. Global ratings firm Fitch cut its forecast on India’s growth to 10% for the ongoing fiscal year from the 12.8% expansion projected in March, as lockdowns amid the second wave of the pandemic have hurt banking sector prospects. As we are into earning season, we will see stock specific movement in the market. Going forward market will take direction from outcomes of macroeconomic data, Inflow and outflow of Foreign as well as domestic institutional fund, crude oil prices and Rupee movement amid global factors.
On the commodity front, various important meetings, including OPEC+ and many Central Banks put the investors on their toes. CRB traded in a range with downside bias. Dollar index took the benefit and traded above 92 levels as safe haven buying return. Crude oil saw a breather in rally on surge in Delta variant in many countries amid delay in OPEC+ members decision. Crude may trade in a wide range of 5200- 5700. China said it would continue to release stocks of metal in the near future after auctioning 100,000 tonnes of copper, aluminium and zinc on July 5. The sales are designed to cool prices. It may cap the upside and base metals may trade in a range. Gold may move in a range with a downside bias on a stronger dollar index and trade within 47350-48800. New Yuan Loans, Inflation Rate of Germany, Core Inflation Rate, Retail Sales, Michigan Consumer Sentiment Prel and Inflation Rate of US, Westpac Consumer Confidence Index of Australia, Interest Rate Decision of Newzeland, BoCInterest Rate Decision, Core Inflation Rate, Employment Change and Inflation Rate of UK, GDP Growth Rate of China, BoJ Interest Rate Decision and BoJ Quarterly Outlook Report, Core Inflation Rate of Eueo Area etc are lots of triggers scheduled this week.
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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.
up 32.05% from Rs. 1,617.32 crore in March 2020. Quarterly Net Profit at Rs. 130.11 crore in March 2021 up 52% from Rs. 85.60 crore in March 2020.
The Company remains committed in its long-term aspiration of delivering sustainable and profitable volume led growth, building on strong brand equity and accelerated focus on emerging businesses and implementation of government of PLI scheme for textile sector with large focus on growing the prospects of advance textile and man-made-fibres. Despite a strong capex plan to support growth in key segments, net debt is expected to remain at Rs. 2,400 crore as large capex funding will be done by improving cash flows. It is expected that the stock will see a price target of Rs.129 in 8 to 10 months time frame on a target P/BVx of 3.10x and FY22 BVPS of Rs.41.70.
for 20-25%YoY revenue growth in FY22 and margin guidance of 11-13% depending on the activity of the project.
Despite businesses taking a hit due to the Covid-19 pandemic, the company has witnessed robust sales driven by residential business along with continued stability in the Intuitional business. The management hopes that the strong pipeline of ongoing and upcoming projects, and favourable market conditions will help the company to maintain the momentum going forward. Thus, it is expected that the stock will see a price target of Rs.554 in 8 to 10 months time frame on a target P/BVx of 3.01x and FY22 BVPS of Rs.184.14.
The stock closed at Rs 3350.70 on 09th July, 2021. It made a 52-week low at Rs 2332.45 on 08th July, 2020 and a 52-week high of Rs. 3377.95 on 09th July, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 2879.07.
As we can see on charts that stock is trading in higher highs and higher lows on charts, since May 2020. Apart from this, stock has formed a “Rising Wedge” on weekly charts, which is considered to be bullish. Last week, the stock has given the pattern breakout along with high volumes and also has managed to close above the same so buying momentum may continue for coming days. Therefore, one can buy in the range of 3310-3330 levels for the upside target of 3550-3600 levels with SL below 3150 levels.
The stock closed at Rs 1455.70 on 09th July, 2021. It made a 52-week low of Rs 555.55 on 24th September, 2020 and a 52- week high of Rs. 1534.95 on 15th February, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1225.78.
Short term, medium term and long term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts. Apart from this, stock is forming a “Bullish Flag” pattern on weekly charts, which is bullish in nature. Last week, the stock tried to give the breakout of same, couldn’t hold the high levels but its consolidation from few weeks indicates that there may be strong spurt in coming days. Therefore, one can buy in the range of 1430- 1440 levels for the upside target of 1570-1590 levels with SL below 1380 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
Bears tried to keep Indian markets under pressure and Nifty indices once again could not managed to breach key psychological level of 16000 and closed near the unchanged line on week on week basis. However metal and banking counter along with mid-caps gave support to markets in the week gone by. From derivative front, call writers remained active at 15700 & 15800 strikes while put writers held maximum open interest at 15600 strike. The Implied Volatility (IV) of calls closed at 12.56 % while that for put options closed at 14.07%. The Nifty VIX for the week closed at 13.56%. PCR OI for the week closed at 1.32. Technical indicators suggested that volatility is likely to grip markets in coming week as well. Nifty likely to face strong hurdle at 15850 levels while 36000 levels for Bank Nifty would remain crucial. On downside 15550-15500 zone likely to provide support.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric futures (Aug) is likely to consolidate in the range of 7200-7600 levels. The upside may remain capped because demand from local consuming centres and overseas markets has slowed down. Export demand is very negligible in all the mandis. However, on spot prices in Erode and Nanded mandis, prices are getting some support as demand picked up from local buyers. The arrival of better quality was also priced higher. According to trade sources, few bags of turmeric of excellent quality were sold as high as Rs. 7700 per quintal. But turmeric remained bearish in Kesamudram and Warangal mandis. The arrival of poor quality Gattha was sold lower. Jeera futures (Aug) is expected to break the support level near 13200 and plunge further towards 12800 due to subdued demand from local and overseas markets and a likely arrivals pressure in spot markets. As of now, of the total production this season, only 45-50% of the crop has arrived in the market. In Unjha, the benchmark market, arrivals were steady at 15,000 bags (1 bag = 55 kg). Exchange quality jeera was sold at 13,200 rupees per 100 kg. Dhaniya futures (Aug) is expected to see lower levels of 6400-6300 tracking weak cues from the spot market and tepid demand from bulk buyers. The buyers from south are avoiding purchases from the mandis of Rajasthan, Gujarat and Madhya Pradesh. Higher production estimates also weighing on prices. Production of coriander was pegged at 822,210 tn in 2020-21 (Jul-Jun) season, up 17.3% on year, according to data from Spices Board India. Good quality Eagle and Badami coriander were sold at a brisk rate of Rs 70 per quintal. In Gujarat's Rajkot mandi, the arrival was affected as the farmers were busy in sowing.
Gold prices were set for the third straight weekly gain, as a slight pullback in the dollar made bullion less expensive for other currency holders, while a drop in U.S. Treasury yields also offered support to the safe-haven metal. The dollar index retreated from a three-month peak against its rivals. Benchmark U.S. 10-year Treasury yields languished near more than four-month low, reducing the opportunity cost of holding non-interest bearing gold. S&P 500 and the Nasdaq pulling back from record closing highs in a broad sell-off, driven by uncertainties surrounding the pace of the U.S. economic recovery. The European Central Bank set a new inflation target on Thursday and carved out a major role in the fight against climate change, embarking on a fundamental transformation of Europe’s most powerful financial institution. The new rise in the Delta variant causing some concerns on the global growth and the data out of U.S. started to ease off a little bit is helping gold. Minutes of the U.S. Federal Reserve's June policy meeting showed that while the economic recovery "was generally seen as not having yet been met," Fed officials agreed they should be poised to act if inflation. Fears over an imminent monetary policy tightening by the Fed have weighed on bullion, sending gold down 7% in June. Ahead in this week, we may continue to witness huge volatility and gold and range would be 46000-49200 whereas, Silver may trade in the range of 66300-71400 levels. Whereas on COMEX gold may trade in the range of $1730-$1840 and Silver may trade in the range of $25.10-$27.40.
Soybean futures (Aug) is expected to trade with a downside bias and remain below -7250 levels in days to come. The reason being, area under soybean planting is likely to increase by 5-7% across the country this kharif season despite speculation in the market over the shortage of seeds. Farmers, however, are keeping their fingers crossed due to the break in monsoon and hope for a revival of the monsoon to ensure a good crop. Record high prices for the oilseed could prompt some to switch from cultivating competing commodities such as cotton and pulses. If we look at the demand side, it seems that it has slowed down as data shows that India's soymeal exports were largely unchanged on year and flat on month at 80,000 tn in June. On the supply side, by the end of June, mills, traders, and farmers were left with around 1.9 mln tn of soybean stock. RM Seed futures (Aug) may witness further correction towards 6400-6200 levels as the arrivals pressure has started mounting on this counter. Mustard arrivals at major markets increased to 200,000 bags. In Jaipur, the benchmark market, the oilseed was sold at 7,100–7,125 rupees per 100 kg. Soy oil futures (Aug) is likely to trade sideways to down in the range of 1220-1280, while CPO futures (July) will probably see selling pressure with every rise, facing resistance near 1035. The government is considering imposing stock limits on edible oils and oilseeds to cool prices in the domestic market. This comes as prices remain elevated despite recent measures, including easing of import restrictions. The Reserve Bank of India's Monetary Policy Committee has been encouraging the government to take supply-side measures to reduce inflation.
Crude Oil prices fell as investors feared what this week's collapse in OPEC+ talks meant for worldwide production. Crude markets have been volatile over the week following the breakdown of discussions between major oil producers Saudi Arabia and United Arab Emirates. The OPEC+, have restrained supply for more than a year since demand crashed during the coronavirus pandemic. The group is maintaining nearly 6 million bpd of output cuts and was expected to add to supply, but three days of meetings failed to close divisions between the Saudis and the Emiratis. For now, the existing agreement that keeps supply restrained remains in force. But the breakdown also could lead producers, eager to capitalize on the rebound in demand, to start supplying more oil previously predicted. Russia is now leading efforts to close divisions between the Saudis and UAE to help strike a deal to raise oil output in coming months, three OPEC+ sources said. Saudi Energy Minister Prince Abdulaziz bin Salman dampened concerns of a price war. Ahead in the week crude oil prices may continue to trade with bullish bias in the range of 5220-5780 levels with higher volatility. Natural Gas dipped as forecasts projected cooler weather over the next two weeks, while output is expected to rise. Data provider Refinitiv projected average gas demand, including exports, would dip from 89.7 bcfd this week to 88.6 bcfd next week as milder weather curbs air conditioning use. Refinitiv said gas output in the Lower 48 U.S. states fell to an average of 90.7 bcfd so far in July due mostly to pipeline problems in West Virginia. Ahead in week it is expected that prices may continue to trade with mixed bias as range would be 256-289 levels.
Cotton futures (July) is expected to trade sideways in the range of 24000- 26000. In the present scenario, the sentiments are mixed amid slower pace of exports &sowing also. The sowing has picked up in recent weeks; however, it still lags due to the delayed harvest of winter crops coupled with delayed monsoon, which has affected the overall sowing of Kharif. On the demand side, persistently high prices in the domestic market continued to be a drag on India's cotton exports. India's exports are priced at 97-98 cents a pound on a cost-and-freight basis, slightly higher than the superior quality crop from Brazil and the US. Industry experts say cotton exports may touch 6.5-7.0 mln bales by September-end. The Cotton Association of India has estimated exports at 7.2 mln bales for the current season. Guar seed futures (Aug) may trade with a downside bias in the range of 4000-4200, while guar gum futures (Aug) is expected to remain range bound within 6200-6600. Guar seed and gum prices are seen under pressure since last month amid weak demand. Moreover, progress of monsoon may force farmers to cultivate guar due to delay in the sowing of other crops. As per the IMD, the southwest monsoon is likely to advance over remaining parts of west Uttar Pradesh, some more parts of Punjab, Haryana and Rajasthan and Delhi around 10th July. Chana futures (Aug) is expected to take support around 4750 & witness some pull back towards 5100. As per market sources, auction schedule for Nafed PSF Chana Rabi 2019 and Rabi 2020 for state of Andhra Pradesh, Telangana and Karnataka has been suspended till further information. Also, Nafed stopped selling Rabi 2020 Chana in Maharashtra from tomorrow onwards.
Base metals may trade with bearish bias as well as high volatility. The prices are being pressured after the U.S. Federal Reserve confirmed plans to tighten monetary policy sooner than expected amid doubts about the pace of the global economic recovery. China also raised expectations that it could ease monetary policy to support its economy, which was interpreted by the market as sign of weakness in the world’s top metals consumer. The rapid spread of the highly-contagious Delta variant of COVID-19 in many countries has raised concerns that the global economic rebound might be derailed, dampening expectations for metals demand. Copper may trade with bearish bias in the range of 690-740 levels. Total stocks in LME-registered warehouses are at their highest in more than a year at 212,575 tonnes. The LME cash contract is at a $33 a tonne discount to the three-month price, pointing to plentiful supply. Zinc may trade in the range of 230-245. The mining company Central Asia Metals PLC said zinc output fell 3.4% quarter-on-quarter to 5,549 metric tons in the three months to June. Lead can move in the range of 174-184. A jump in demand for traditional lead-acid car batteries and lingering freight problems have created shortages and driven up lead prices. Nickel may trade in the range of 1340-1410. The metal is taking support by growing demand from automakers, as it recently has attracted strong demand from the electric vehicle industry. Aluminum may move in the range of 190-205. Plans by Russia to impose taxes on exports of aluminium have fuelled a surge in spot market costs for consumers in Europe and the United States.
COPPER MCX (JUL) contract closed at Rs. 720.60 on 08th Jul’2021. The contract made its high of Rs. 804.60 on 12th May’2021 and a low of Rs. 690.00 on 21st Jun’2021. The 18- day Exponential Moving Average of the commodity is currently at Rs 722.80. On the daily chart, the commodity has Relative Strength Index (14-day) value of 46.633.
One can buy above Rs. 720 for a target of Rs. 750 with the stop loss of Rs. 705.
GOLD MCX (AUG) contract closed at Rs. 47721.00 on 08th Jul’2021. The contract made its high of Rs. 49721.00 on 01st Jun’2021 and a low of Rs. 44501.00 on 30th Mar’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 47505.21. On the daily chart, the commodity has Relative Strength Index (14-day) value of 51.376.
One can sell near Rs. 48000 for a target of Rs. 46300 with the stop loss of Rs. 48800.
TMC NCDEX (AUG) contract was closed at Rs. 7364.00 on 08th Jul’2021. The contract made its high of Rs. 8300.00 on 28th May’2021 and a low of Rs. 7234.00 on 29th Jun’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 7463.63. On the daily chart, the commodity has Relative Strength Index (14-day) value of 34.970.
One can buy above Rs. 7390 for a target of Rs. 7790 with the stop loss of Rs 7190.
Various important meetings, including OPEC+ and many Central Banks put the investors on their toes. CRB traded in a range with downside bias. Dollar index took the benefit and traded above 92 levels as safe haven buying return. The dollar traded near its highest in three months versus major peers on Thursday after minutes of the Federal Reserve's June policy meeting confirmed the world's biggest central bank is moving toward tapering its asset purchases as soon as this year. Fed officials said substantial further progress on economic recovery "was generally seen as not having yet been met," although participants expected progress to continue and agreed they must be ready to act if inflation or other risks materialize, according to the minutes of the Federal Open Market Committee (FOMC)'s June policy meeting released Wednesday. Crude oil saw a breather in rally on surge in Delta variant in many countries amid delay in OPEC+ members decision. Rally looked tired from the higher levels. Oil was down on Thursday, falling for a third consecutive session. Investors continued to keep an eye on the ongoing production dispute between Saudi Arabia and the United Arab Emirates (UAE) influencing global fuel supply. Natural gas saw a fall despite bullish fundamentals on fall in crude prices. U.S. natural gas prices jumped in previous week amid a tight natural gas market and expectations of high demand for electricity in hotter than usual weather in many parts of the United States. Gold held steady on Thursday as lower U.S. Treasury yields countered a stronger dollar after minutes from the Federal Reserve’s last meeting showed that the central bank is moving towards tapering its asset purchases as soon as this year. Silver too closed weak on pressure in both gold and base metals. Base metals noticed pressure from higher side and moved down on tapering news in US. China will continue to push real lending rates lower and reduce financing costs for small companies through targeted monetary policy tools. The People's Bank of China will also make timely adjustments to policy tools and keep the yuan exchange rate stable to help exporters. This news limited the downside of base metals.
Chana continued to trade weak as import allowed after a year of ban and stock release by NAFED. Oil seeds and edible oils also saw pressure, as there was an expectation by the market participants that government may take decision to cool off the prices; like chana. It is reported that the area under soybean planting is likely to increase by 5-7% across the country this kharif season despite speculation in the market over the shortage of seeds. Cotton futures remained traded firm taking positive cues from slower arrivals pace and higher demand from mills.
In a bid to provides real-time commodity futures price index, the National Commodity and Derivatives Exchange (NCDEX) has launched two sectoral indices — GUAREX and SOYDEX on July 05, 2021. Both indexes are designed to provide exposure of guar & Soy Complex Commodity respectively to market participants. These are price based Indices showing price changes taking place in the Guar Complex and Soy Complex Commodities market. GUAREX and SOYDEX are also the country''s first sectoral indices in the agri-commodities space.
GUAREX is a return-based index tracking the price movement in the futures contracts of its underlying, that is guar seed and guar gum refined splits on a realtime basis. Similarly, SOYDEX will follow the price changes in futures contracts of soybean and refined soy oil traded on NCDEX. The Index will act as an important tool in benchmarking and trading for the market.
Initially, both the indices will be available on the agri-commodity exchange's website and will be representative only to gauge the performance of guar complex and soy complex. The futures trading in these indices will be launched in due course, NCDEX stated.
Some highlights of the Indices are:
The weightage of Commodities in indices
Commodities are weighted based on their national production value and their total traded value on the Exchange platform.
Key benefits :
In May 2020, NCDEX had launched AGRIDEX, a return-based composite index tracking futures price movement in 10 commodities on NCDEX. The index has given over 40 per cent return in its first full year of operations, establishing itself as a benchmark for the commodity market participants.
Indian Rupee failed to reverse its losing streak this week amid strong bid in dollar kept the USDINR pair higher. However ease in oil prices from its three year high capped abrupt fall in the domestic unit. Next week domestic inflation for the month of June will be key for rupee. Although it is widely expected the headline print likely to touch near 6.8% which can turn out to be negative for rupee in coming days. We will maintain bullish stance in the USDINR pair for next week. Earlier the dollar index traded higher versus some peers amid risk off appetite. Additionally Fed minutes revealed officials are not ready to adhere to a tapering timeline, but expect conditions to be met somewhat earlier than they had anticipated at previous meetings. On the majors, pound dropped below 1.38 vs dollar amid deep concerns over rising covid cases. Inevitably rising covid cases in the UK likely to tamper recovery which will weigh pound in coming days. On the other hand euro remained steady after ECB set inflation target of 2%. However later ECB chair Laggard commented that the ECB doesn’t see 2% inflation as a ceiling in a hawkish change of tone. We think next week euro remains supported by the ECB latest comments for inflation.
USD/INR (JUL) contract closed at 74.9475 on 08-Jul-21. The contract made its high of 74.9975 on 08-Jul-21 and a low of 74.4250 on 06-Jul-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 74.4293.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 61.90. One can buy at 74.70 for the target of 75.70 with the stop loss of 74.20.
GBP/INR (JUL) contract closed at 103.2200 on 08-Jul-21. The contract made its high of 103.5475 on 06-Jul-21 and a low of 103.0625 on 08-Jul-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 103.4653.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 44.49. One can sell at 103.50 for a target of 102.50 with the stop loss of 104.00.
| 09th JUL | Top Fed official warns Delta variant poses threat to global recovery |
| 08th JUL | ECB changes inflation target, leaving extra room to keep rates low |
| 07th JUL | EU recovery boosted by fastest growth in decades, Brussels says |
| 07th JUL | Pandemic leaves 22m people out of work in advanced economies, OECD finds |
| 07th JUL | US piles pressure on EU to drop digital tax plan |
| 06th JUL | Inflation takes shine off booming central Europe |
| 06th JUL | Legal wrangle raises hurdles to EU implementation of global tax deal |
| 05th JUL | EU to develop investment initiative to counter Chinese influence |
| 05th JUL | Wallenberg warns against using Covid as excuse for protectionism |
EUR/INR (JUL) contract closed at 88.7650 on 08-Jul-21. The contract made its high of 88.8500 on 06-Jul-21 and a low of 88.3025 on 08-Jul-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 88.8736.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 38.85. One can sell at 88.75 for a target of 87.75 with the stop loss of 89.25.
JPY/INR (JUL) ccontract closed at 68.2325 on 08-Jul-21. The contract made its high of 68.2925 on 08-Jul-21 and a low of 67.1800 on 05-Jul-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 67.4381.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 49.73. One can buy at 67.50 for a target of 68.50 with the stop loss of 67.00.
The public offer of GR Infraprojects continued to witness overwhelming response from investors given the expected infrastructure boost in coming years and attractive valuations compared to peers, as it subscribed 5.75 times on July 8, the second day of bidding. The offer has received bids for 4.67 crore equity shares against IPO size of 81.23 lakh equity shares, the subscription data available on the exchanges showed. The retail investors have put in bids 7.49 times their reserved portion and non-institutional investors 6.31 times their portion set aside. A part set side for qualified institutional buyers has subscribed 2.78 times and that of employees 75 percent. The road sector contractor is planning to raise Rs 963 crore through its public issue which comprises a complete offer for sale by selling shareholders. The company already garnered Rs 283 crore from anchor investors on July 6, a day ahead of issue opening, at a higher end price band of Rs 828-837 per share.
The public offer of Clean Science, a technology-driven specialty chemical manufacturing company, has seen a strong demand from investors as it got subscribed 4.28 times so far on the second day of bidding, July 8. Investors have put in bids for 5.26 crore equity shares against the offer size of 1.23 crore equity shares, the subscription data available on the exchanges showed. The portion set aside for qualified institutional buyers has subscribed 2.12 times, while non-institutional investors have put in bids 4.51 times their reserved portion, and retail bidders 5.42 times their reserved portion. Clean Science and Technology opened its Rs 1,546.62 crore public issue for subscription on July 7, with a price band of Rs 880-900 per equity share. It is completely an offer for sale by existing selling shareholders, so the company will not get any money from the offer.
Food delivery giant Zomato announced in a press conference the price band for its much-awaited public issue at Rs 72-76 per equity share. The Rs 9,375-crore offer will open for subscription on July 14 and close on July 16. Anchor book, if any, will open for a day on July 13, a day before the issue opening. It is the largest IPO after SBI Card (Rs 10,355 crore) that was launched in March 2020. The public offer comprises a fresh issuance of Rs 9,000 crore, and an offer for sale of Rs 375 crore by existing selling shareholder Info Edge. The public issue includes a reservation of up to 65 lakh equity shares for its employees. Earlier, at the time of filing draft red herring prospectus in April this year, the total offer size was Rs 8,250 crore. As per the RHP, the fresh issue size has been increased to Rs 9,000 crore from the earlier Rs 7,500 crore, while Info Edge intimated exchanges last week that the offer-for-sale size has been reduced to Rs 375 crore from Rs 750 crore. Investors can apply for a minimum of 195 equity shares and in multiples of 195 shares thereafter. Zomato has reserved up to 75 percent of the total offer for qualified institutional buyers, up to 10 percent for retail investors, and the rest 15 percent for non-institutional buyers. The company in February this year had already mobilised $250 million in its pre-IPO placement from marquee investors such as Kora Management, Tiger Global, Fidelity, Dragoneer and Bow Wave, at a valuation of $5.4 billion.
Paytm’s initial public offering (IPO) will be worth around Rs 16,600 crore (about $2.23 billion) and the Noida-based fintech firm is likely to file a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) soon after its extraordinary general meeting (EGM) on July 12. Paytm may also seek shareholders’ approval to increase the size of the IPO to nearly Rs 19,318 crore ($2.6 billion) closer to the date of its proposed listing, one of the sources added. The proposal, if approved, will make it one of the largest IPOs in dollar terms after Coal India (about $3.3 billion) and Reliance Power (around $2.4 billion). Last month, Paytm told shareholders in a note that it intended to issue fresh shares worth Rs 12,000 crore, or $1.6 billion, in the IPO. The OFS option, where Paytm’s investors can directly sell their stakes during the IPO, will form the rest of the issue size, of about $600 million (Rs 4, 580 crore).
The primary market is set for a bumper Rs 80,000-crore bonanza with 30 companies already filing IPO papers to raise Rs 55,000 crore, while around 10 more are lined up for this month itself, seeking to mop up another Rs 25,000 crore, say investment bankers. The market has been on a non-stop rally, hitting new records almost every week, on the back of an influx of investors — a vast majority of them first-timers — coupled with a flood of liquidity. Foreign funds alone had pumped in a record USD 35 billion into the market in FY21, while the trend has continued this fiscal as well. Domestic institutions led by LIC have also infused trillions of rupees, helping woo retail investors in troves — the year saw over 20 million new investors coming to the market. Having already raised Rs 27,426 crore from 22 issues so far this year, 2021 is set to be a record year for fundraising through initial public offerings (IPOs). In 2020, 16 issues had mopped up Rs 26,628 crore, and a similar number of IPOs had collected Rs 12,687 crore in 2019, but 2018 was the best year so far for the primary market as 25 companies had raised Rs 31,731 crore.
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Equity mutual funs (MFs) saw Rs 5,988 crore of inflows in June, compared with inflow of Rs 10,082.9 crore in May, according to data from the AMFI. Net inflow for the MF industry stood at Rs 15,320 crore in June, vs outflow of Rs 38,602 crore in May.
Invesco Mutual Fund announced the launch of its new fund Invesco India Medium Duration Fund - an open-ended medium term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 3 to 4 years. The new fund offer (NFO) will close for subscription on July 13. The fund will be benchmarked to CRISIL Medium Term Debt Index and will be managed by Vikas Garg and Krishna Cheemalapati. The press release mentions that the Invesco India Medium Duration Fund seeks to generate income by investing in a portfolio of debt and money market securities. As per the press release the fund would be constructed following a detailed assessment of liquidity, interest rate view and credit environment. over 75% - 85% of exposure will be to 'AAA' rated corporate and government securities (G-Secs including SDLs).With an aim to enhance the portfolio yield, the fund will invest 15% - 25% of the net assets in selective 'AA' category corporate bonds and will utilize its in-house proprietary credit assessment framework to select such issuers.
SBI Mutual Fund has announced the launch of SBI ETF Consumption, an open-ended scheme tracking Nifty India Consumption Index. The New Fund Offer opens on June 30 and closes on July 14. The investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. The minimum application amount (during the NFO period) required is of Rs 5,000 and in multiples of Re 1 thereafter. The scheme would invest a minimum 95% and maximum 100% of its assets in securities covered by Nifty India Consumption Index with up to 5% in equity derivatives and up to 5% in money market instruments (including commercial papers, commercial bills, treasury bills, triparty repo, Government securities having an unexpired maturity up to one year, call or notice money, certificate of deposit, usance bills, and any other like instruments as specified by the Reserve Bank of India from time to time) and units of liquid mutual fund.
Navi Mutual Fund, owned by Flipkart co-founder Sachin Bansal, is set to launch a Nifty-tracking index fund that will cost the lowest in the segment to invest. The new entrant into the domestic mutual fund industry will charge an expense ratio of 0.06% for the index fund even as many established players more than doubled this annual fee. The NFO will open on July 3 and close for subscriptions on July 12. Currently, the Nifty fund operated by ICICI Prudential MF and Motilal Oswal MF that charges 0.1% as the expense ratio is the cheapest fund tracking the benchmark index.
PGIM India Mutual Fund has announced the launch of PGIM India Small Cap Fund. The NFO will open for subscription on July 9 and will close on July 23. The fund will be benchmarked against Nifty Small Cap 100 Total Return Index. The minimum amount of investment during the NFO is Rs 5,000 and in multiples of Re 1 thereafter. The fund will invest a minimum of 65% assets in small cap stocks. The scheme will also invest in equity related instruments and overseas stocks. The different parts of the portfolio will be managed by three fund managers. The scheme will be managed by Aniruddha Naha for equity investments, Kumaresh Ramakrishnan for debt and money market investments and Ravi Adukia for overseas investments.
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