In the week gone by, global markets witnessed mixed movements as investors were uncertain about the consequences of surging Covid 19 cases in different parts of the world amid surging inflation worldwide. A rapid surge in Omicron cases has already led to economic disruptions across many countries in the world due to a fresh wave of restrictions. Meanwhile, new claims for US unemployment benefits fell in the week leading up to Christmas and benefits rolls slid to their lowest level of the coronavirus pandemic era the week earlier. China's factory activity unexpectedly accelerated in December, but only by a small margin, according to an official survey released, amid disruptions from COVID outbreaks and as the broader economy loses momentum in the fourth quarter. Going forward, Covid variants, rising inflation, Fed lift-off of stimulus and raising rates faster than expected, China’s regulatory crackdown, hard Brexit and a fresh euro crisis are concern areas for the global economy and markets.
Back at home, domestic markets remained cautious amid surging Omicron cases and persistent selling by the foreign players ahead of the expiry of December series F&O contracts. FIIs have sold equities worth almost $2.7 billion in December. This is the 3rd consecutive month wherein FIIs would be the net sellers. Overall, FIIs continue to be the net sellers for the entire year 2021. Meanwhile, RBI’s financial stability report suggested a surge in bad loans with NPA’s rising from 6.9% in September 2021 to 8.1% in September 2022 under the base case scenario. However, RBI said that if the stress conditions do not materialize and the situation improves as compared to the baseline scenario, the gross NPA ratio of banks may moderate. Meanwhile, investors will continue to keep an eye on news on the new strain. There is a fear among investors that with increase of cases there will be restrictions too which may impact the earnings of the companies. Besides, updates with regards to rise in Omicron cases in domestic as well as global markets will give direction to the markets.
On the commodity market front, it was a thin trading week as world was celebrating Christmas and New Year; impact was visible in domestic market as well. Downside in dollar index strengthened CRB, which closed near 249. Treasury closed up for consecutive second week; pressurized gold prices. The yellow metal has fallen nearly 5% to date in 2021 and is expected to record its biggest annual decline since 2015. Oil prices also drew support from wild winters amid dropdown in inventories. Global oil prices have rebounded by 50% to 60% in 2021 as fuel demand roared back to near prepandemic levels. Going ahead, OPEC+ will meet on Jan. 4 to decide whether they will continue increasing output in February. It can trade in a range of 5500-5900. Base metals may trade with bullish bias. Markit Manufacturing PMI Final, Inflation Rate YoY Prel of France, Unemployment Change, Inflation Rate YoY Prel and Unemployment Rate Germany, ISM Manufacturing PMI, FOMC Minutes, Non-Farm Payrolls, Unemployment Rate and ISM Non-Manufacturing PMI of US, Inflation Rate YoY Prel of Italy, Unemployment Rate of Canada etc are important triggers for this week.
Wishing you all a blissful new year. Hope that joy and success follow you in every sector of life.
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's financial performance remains strong on account of healthy profitability and return indicators, negligible borrowings, comfortable liquidity and strong debt coverage metrics. Also, the company is well positioned to benefit from rising defence expenditure supported by strong execution track record and a strong order book providing healthy revenue visibility ahead. Thus, it is expected that the stock will see a price target of Rs.260 in 8 to 10 months’ time frame on a current P/BV of 4.46x and FY23 BVPS of Rs.58.29.
55,453 MT in Q2FY22 against 43,618 MT in Q2FY21, EBITDA stood at Rs 301.46 Cr for Q2FY22 up by 108.3% against Rs 144.76 Cr for Q2FY21 and Profit after tax was at Rs 235.08 Cr for Q2FY22 up by 96.4% against Rs 119.72 Cr for Q2FY21.
The company is doing well and has strong balance sheet. According to the management, the company has demonstrated excellent growth on all operating parameters. Double digit percentage improvement in terms of the volumes indicates the resilience of business. Moreover, the gradual shift in sales mix in favour of higher value added Plumbing and Sanitation product basket is in line, with its long term goal to has a more balanced product mix between the segments that its cater. Thus, it is expected that the stock will see a price target of Rs.236 in 8 to 10 months time frame on a current P/Bv of 3.75x and FY23 (E) earnings of Rs.62.83.
The stock closed at Rs 474.75 on 31st December, 2021. It made a 52-week low at Rs 261.60 on 30th December, 2020 and a 52-week high of Rs. 522.00 on 10th November, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 385.77.
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, it is forming a “Continuation Triangle” on weekly charts which is bullish in nature. Last week, stock tried to give the breakout of pattern but couldn’t hold the high levels but still manages to close with positive bias along with high volumes so further upside is anticipated from current levels. Therefore, one can buy in the range of 467-470 levels for the upside target of 510-520 levels with SL below 445 levels.
The stock closed at Rs 354.20 on 31st December, 2021. It made a 52-week low of Rs 258.70 on 22nd January, 2021 and a 52-week high of Rs. 387.00 on 11th June, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 317.91.
After giving decent upside move stock has consolidated in narrow range and formed a triple bottom on weekly charts and started moving higher. Last week, stock ended with over 4% gains and conclusively gave the breakout of its previous swing high and also has managed to close above the same so follow up buying may continue for coming days. Therefore, one can buy in the range of 348-350 levels for the upside target of 380-390 levels with SL below 330 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
Indian Markets begin new series on a positive note and Nifty ended the last trading session of 2021 above 17350 mark. The market undertone remain upbeat as healthy buying in heavyweights from metal, auto and banking space supported the rally. From derivative front, put writers seen adding hefty open interest at 17300 & 17200 strike while call writers were observed shifting at higher bands. From technical front once again Bank Nifty has managed to close above its 200 days exponential moving average while Nifty has manage to close inch higher above its short term moving averages. The Implied Volatility (IV) of calls closed at 15.68% while that for put options closed at 16.50%. The Nifty VIX for the week closed at 16.57 and is expected to remain volatile. PCR OI for the week closed at 1.66. For upcoming week we expect that rally in markets likely to continue towards north and traders are advised to keep strong vigil on Omicron updates from domestic front. However next immediate hurdle for Nifty is placed in zone of 17450-17500 mark while Bank nifty could face strong resistance in range of 35750-35850.
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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 (Apr) closed in positive last week after a brief profit booking period in the previous week. It is likely to trade higher towards 9400 levels with support at 8900. Currently, prices are up about 55% y/y on expectation of lower production due to excess rains. However, lower than expected export volume is keeping prices under control. In the first 7-months (Apr-Oct) of FY 2021/22, exports down 23% to 89,850 tons Vs last year but higher by 6.5%, if compared with 5-year average. In view of heavy rains in the growing areas, particularly Maharashtra, crop’s yield could be lower and delayed by two to three weeks. The production could be lower in Karnataka by about 20-25% due to disease. Jeera futures (Jan) continue its bearish trend last week due to subdued demand for the old stocks despite expectation of lower production in the coming season. Currently prices are higher by 27% y/y on reports of drop in area and improving domestic demand. As per respective Agriculture Dept data, area under jeera in Gujarat as on 27-Dec was only 3.00 lakh ha Vs 4.64 lakh hac last year while in Rajasthan jeera is sown in 5.30 lakh hac. As per Govt. data, exports of jeera for Apr-Oct down by 17% Y/Y at 1.50 lakh tonnes compared to 1.82 lt last year. Demand is currently sluggish as export demand is not increasing as per expectations. However, export demand is expected to rise in near future. Arrivals in Unjha market are around 10000/12000 bags, while Rajkot mandi had arrivals of 1000/1500 bags of 20 kg each. Dhaniya futures (Jan) closed lower for the second consecutive week last week due to lower physical demand and likely to trade lower towards 8100 with resistance at 8630. The processors and stockists were reluctant to increase their stock position at current rates Sowing is progressing well, exports not picking up and traders are off loading their old stocks. Recent rains in MP and Rajasthan to benefit coriander crop. Currently prices are higher by 44% y/y due to lower acreage compare to normal. Area under coriander in Gujarat as on 27-Dec is pegged at 1,25,171 hac which is 145% area compared to normal area but less than last year 1,35,560 hac. As per govt. data, exports have been down 12.7% during Apr-Oct period to 28,800 tonnes Vs 33,000 tonnes last year but 8.6% higher compared to 5-year average.
Gold was set for its worst performance in six years, as U.S. Treasury yields dipped, increasing the bullion's appeal by reducing its opportunity cost. Gold was set for its biggest annual decline since 2015, having fallen 4% so far this year, as economies recovered from the pandemic's impact, reducing demand for the safe-haven metal. Benchmark 10-year U.S. Treasury yields dipped from one-month highs on Thursday, with no major catalysts to drive market direction and many traders out before the New Year holiday. The dollar index moved away from a one-month low as investors looked beyond a surge in Omicron COVID-19 variant cases and favored riskier currencies. Stronger dollar makes gold more expensive for buyers holding other currencies. The spread of Omicron clouded the outlook for New Year. Limiting bullion's gains, U.S. stocks rebounded on renewed risk appetite as a drop in weekly jobless claims allayed fears over the economic damage from a rampant surge in COVID-19 infections in the United States. We're in an extremely low-volume holiday-type trading and gold is comfortable right around either side of $1,800. Gold prices could find more of a direction with volumes expected to pick up into next week. On the technical front, gold is stuck in the narrow range of 47000-48500. Break on either side will define the next trend in the counter. On COMEX prices are facing strong resistance around $1810 levels. If prices sustain above the levels then we may witness buying. Ahead in the week, gold prices may continue to trade within the tight range of 47500- 48600. Silver may also witness lower level buying where the range would be 61100-63900.
Crude prices are trading higher on expectations that fuel demand held up despite soaring Omicron coronavirus infections and that OPEC and its allies would continue to increase imports only incrementally. Oil prices also drew support from steps taken by governments to limit the impact of record-high COVID-19 cases on economic growth, such as easing testing rules. OPEC+ will meet on Jan. 4 to decide whether to continue increasing output in February. Saudi Arabia's King Salman said that the OPEC+ production agreement was needed for oil market stability and that producers must comply with the pact. Iraq said it would support sticking to existing OPEC+ policies to raise output by a combined 400,000 bpd in February. The U.S. Commodity Futures Trading Commission said Money managers raised their net long U.S. crude futures and options positions in the week to Dec. 21. Ahead in the week, the crude price may witness both side movements where it may take support near 5400-5900. It’s quite remarkable that the biggest natural gas rally in five years is also masking the worst quarterly loss in 13 years. Gas futures on New York’s Henry Hub are poised to finish 2021 up more than 50%, the most for a year since 2016. For the fourth quarter though, they are down nearly 35%—the biggest drop since the third quarter of 2008. Colder than average weather is expected to move down into the center of the United States over the next 2-weeks. The weather will remain warmer than normal on the East Coast. Ahead in the week prices may continue to trade in the wider range of 240-305.
Base metals may trade in the range on mixed fundamentals as China's factory activity unexpectedly accelerated in December, but only by a small margin, according to an official survey released, amid disruptions from COVID-19 outbreaks and as the broader economy loses momentum in the fourth quarter. China aims to cut energy consumption of steel by 2%, and to lower carbon emissions in the aluminum sector by 5% by 2025, the country’s industry ministry said in a raw materials development plan. Copper may trade in the range 725-755. Las Bambas mine in Peru, the world's No. 2 copper producer, said it would restart operations after reaching a deal with a Peruvian community that blocked a key transport road for a month, with the process expected to take up to six days. Chile's state-controlled Codelco, the world's largest copper producer, has successfully concluded its sales plan for 2022 in Southeast Asia with the signing of multi-year deals. Zinc can move in the range of 275-295. LME inventory continued to decline and the Nord Stream 2 plan issues may not be solved. The cost pressure of the smelters supports to LME zinc. Lead can move in the range of 182-192. Nickel may trade in the range of 1530-1590. Chinese battery materials producer CNGR said it would buy approximately 80,000 tonnes of nickel from compatriot Xiamen Xiangyu over a five-year period. Aluminum may move towards 235 levels with support of 200 levels on persisting supply concern. Alcoa Corp reached a deal with workers to end primary aluminum production at its San Ciprian facility in Spain for two years, the Industry Ministry said, as soaring European energy prices pressure heavy electricity users.
Cotton futures (Jan) closed higher for the fourth consecutive week tracking firm trend in ICE cotton futures. It is likely to trade higher towards 35,900, if sustains above 34000 with support at 33320. USDA cuts world cotton production for 2021/22 by 0.18% to 121.56 million bales in its latest monthly release but no change in India cotton production. Demand for U.S. cotton is robust and might continue to grow stronger in 2022 if the supply chain situation improves. Domestic cotton prices are high y/y 63% due to concerns over production, slow arrivals and better demand for exports. There is increased buying by spinning mills, while daily arrivals remained steady. As per market sources, only 97 to 98 lakh bales of kapas have arrived in the mandis across the country till December 15 in the current season starting October 1. While the export deals during this period stood at about 10.50 to 11 lakh bales. Lower arrivals resulted in a lower outstanding/leftover stock of cotton with the mills. In the current season, overall availability will be lower than last year, while consumption expected to rise because of higher demand from mills and exports. Guar seed futures (Jan) witnessed some correction last week after closing positive for prior three weeks due to profit booking. It is expected to trade higher towards 6300 levels with support at 5860. Currently, prices are up around 50% y/y due to expectation of lower production, multiyear lower stocks and good export demand. The prices have slipped to 2- month low earlier this month, which slows down the physical arrivals in markets. In Oct, Guar gum exports are higher by 60% y/y at 27,150 tonnes while exports in 2021/22 (Apr-Oct) are up by 46% y/y at 1.85 lakh tonnes but still not reached the pre-covid levels. Castor Seed (Jan) closed lower for the fifth consecutive week and likely to trade in a range 5750-6120. The prices are higher by 34% y/y, as production of castor expected to be lowest in last three years due to lower acreage at 15.98 lakh tonnes, according to advance estimates from Farm ministry. The exports of castor oil are lower during the last three months due to higher prices. Exports during Sep-Nov down by 16% at 1.39 lakh tonnes compared to 1.65 lt last year. Similarly, castor meal exports fall by 32% during (Aug-Nov) y/y. However, Gujarat agriculture department’s first advance estimate for kharif has pegged castor seed production at 14.08 lakh tonnes compared to average of 13.46 lt. This improvement in crop is expected due to revival of monsoon in September.
ALUMINIUM MCX (JAN) contract closed at Rs. 225.60 on 30th Dec 2021. The contract made its high of Rs. 229.25 on 24th Dec’2021 and a low of Rs. 210.60 on 26th Nov’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs 223.63. On the daily chart, the commodity has Relative Strength Index (14-day) value of 55.059.
One can buy above Rs. 227 for a target of Rs. 245 with the stop loss of 218.
NARURAL GAS MCX (JAN) contract was closed at Rs. 1560.20 on 30th Dec’2021. The contract made its high of Rs. 1600.00 on 24th Nov’2021 and a low of Rs. 1501.80 on 20th Dec’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 1565.00. On the daily chart, the commodity has Relative Strength Index (14-day) value of 60.178.
One can buy near Rs. 1550 for a target of Rs. 1610 with the stop loss of Rs 1520.
COCUDAKL NCDEX (JAN) contract closed at Rs. 3003.00 on 30th Dec’2021. The contract made its high of Rs. 3093.00 on 31st Dec’2021 and a low of Rs. 2365.00 on 20th Sep’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 2908.91. On the daily chart, the commodity has Relative Strength Index (14-day) value of 79.252.
One can buy near Rs. 3020 for a target of Rs. 3160 with the stop loss of Rs. 2950.
It was a thin trading week as world was celebrating Christmas and New Year; impact was visible in domestic market as well. Downside in dollar index strengthened CRB, which closed near 249 levels. The dollar edged lower in thin holiday trading, while the safe-haven yen touched a onemonth low as investors looked beyond a surge in Omicron cases and favored riskier currencies. Treasury closed up for consecutive second week. Gold reacted on the same and performed weak for second week in a row. The yellow metal has fallen nearly 5% to date in 2021 and is expected to record its biggest annual decline since 2015. The yellow metal has fallen nearly 5% to date in 2021 and is expected to record its biggest annual decline since 2015. Silver too, surrendered its previous gain. In energy pack, crude prices ignited for the second week on dropdown in inventories amid harsh winter whereas natural gas failed to take support from the lower side. Oil prices rose on Thursday to extend several consecutive days of gains, buoyed by data showing U.S. fuel demand holding up well despite soaring Omicron coronavirus infections. U.S. Energy Information Administration data on Wednesday showed crude oil inventories fell by 3.6 million barrels in the week to Dec. 24. Gasoline and distillate inventories also fell. Base metals performed mix; copper, aluminum and zinc prices slipped from higher side. Nickel and lead closed marginally higher. Copper prices climbed to their highest in a month on Wednesday, boosted by year-end trading, friendly sentiment for risky assets and arbitrage buying, but selling came later on. High power prices have forced some zinc smelters to suspend operations and some analysts believe the situation will continue to be difficult during the winter. The power shortage in Western Europe is expected to affect less than 6% of global aluminium capacity and reduce production by 500,000 mt, which is still lower than new capacity outside China in 2022.
Cotton saw well-built upside move from past three weeks as physical demand is intact and arrivals have affected due to unseasonal rains. Current cotton prices are high 63% y/y due to concerns over production, slow arrivals and better demand for exports. Mentha oil saw marginal gain. In spices, turmeric prices augmented whereas coriander and cumin saw some decline. Guar prices weakened due to fresh selling and subdued demand from the traders. Coriander prices fell due to fresh selling at current levels as sowing is progressing well, exports not picking up and traders are off loading their old stocks.
What an spectacular performance of commodities witnessed in 2021 despite of challenges from pandemic globally! Some commodity prices rose to or exceeded levels not seen since the spike of 2011 amid supply constraints and rebounding demand. Prices were buoyed by the recovery in global manufacturing, improved prospects for infrastructure investment in advanced economies, easy money, and supply disruptions due to COVID-19. Record vaccination, reopening of world economy amid record easy money drove the demand. For example, natural gas and coal prices, cotton, guar complex etc. It raised the inflationary concern and made recovery costlier. The guar complex brought back smiles on face of farmers in 2021 with more than 50% return in guarseed and 75% return in guar gum after last 5 years. Cotton prices surged more than 60% in the year 2021 supported by robust export demand, higher domestic consumption, delay in monsoon, reports of insect -pest and higher global prices of cotton. In Spices, strong domestic and export demand helped the turmeric prices to surge to 5-year high levels. with the same reason the coriander provided more than 45% return. Crude oil prices have been rebounded strongly throughout 2021 as a progressive recovery takes place with record vaccination which reopened trade worldwide and the oil prices hit their highest levels in six years. Low inventories, investment demand in ETF’s, strikes in mines, some delays in projects and shipment, low production gave support to the base metals prices. However, gold, friend of bad time, has seen a pause in 2021 after a super-fast rally of five years due to stronger U.S. dollar and rising bond yields. Markets currently expect the Federal Reserve to tighten monetary policy, which includes reducing their monthly bond purchases before the end of the year and potentially raising 3 interest rates in 2022. Monetary and fiscal policies give a significant impact and gold prices. Silver prices slipped by more than 9% on outflow in investment demand.
The Indian Rupee jumped nearly 2.5% since mid-December after year end dollar sales majorly from software exporters. Additionally the quarterly rebalancing of domestic indices linked funds led to sharp inflows in last few days. However with oil prices hovering around $80 along with surge in omicron cases will cap any major upside in rupee beyond 31st December. We do think USDINR likely to find some interim support for next few days near 74.40 (spot) however breach of 74.35 will lead to sharp fall in the pair towards 73.80 in coming days. From the majors, EUR reversed some of its early week gains falling to low of 1.1299 vs dollar. The euro remained weak against the US dollar on broad greenback strength as well as against rupee. Going forward, in the absence of major trigger in the markets, EURINR is likely to remain weak for next week. While Sterling is hitting higher towards 1.35 vs dollar while due to rupee appreciation, GBPINR unable to cross 101 convincingly. We will remain slightly bullish in the GBPINR in coming days.
USD/INR (JAN) contract closed at 74.6325 on 30-Dec-21. The contract made its high of 75.4400 on 27-Dec-21 and a low of 74.6025 on 30-Dec-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 75.2175.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 34.60.One can buy at 74.25 for the target of 75.25 with the stop loss of 73.75.
GBP/INR (JAN) contract closed at 100.6725 on 30-Dec-21. The contract made its high of 101.1500 on 27-Dec-21 and a low of 100.0900 on 28-Dec-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 100.5800.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 49.60. One can buy at 100.25 for a target of 101.25 with the stop loss of 99.75.
| 30th DEC | Oil Heads for Biggest Annual Gain Since 2009 |
| 30th DEC | Gold set for Worst Performance Since 2015 |
| 29th DEC | Global Omicron surged drives cases to record highs in 20 countries |
| 29th DEC | Chinese loans deterred poor nations from seeking debt relief, says Paris Club chair |
| 29th DEC | Businesses struggled to prepare for UK’s post-Brexit import controls |
| 28th DEC | Japan industrial output surge offered hope of end to supply chain squeeze |
| 28th DEC | Persistent inflation poses threat to Eurozone recovery, economists warn |
| 28th DEC | Turkish regulator filed criminal complaints over lira’s moves |
| 27th DEC | China increased scrutiny of companies seeking overseas listings |
EUR/INR (JAN) contract closed at 84.5650 on 30-Dec-21. The contract made its high of 85.5000 on 27-Dec-21 and a low of 84.4275 on 30-Dec-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 85.1525.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 34.12. One can sell at 84.75 for a target of 83.75 with the stop loss of 85.25.
JPY/INR (JAN) contract closed at 64.9100 on 30-Dec-21. The contract made its high of 66.0125 on 27-Dec-21 and a low of 64.8650 on 30-Dec-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 65.8625.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 32.40. One can sell at 65.25 for a target of 64.25 with the stop loss of 65.75.
Global Health, which operates and manages hospitals under the Medanta brand, and clinical research organisation Veeda Clinical Research has received markets regulator Sebi's go-ahead to raise funds through an initial public offering (IPO). These companies, which filed their preliminary IPO with Sebi in September, obtained its observations on December 21. In Sebi parlance, the issuance of observations letter implies its go-ahead for the IPO. Going by the draft papers, Global Health's IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, and an offer for sale of up to 4.84 crore equity shares. As part of the offerfor- sale (OFS), Anant Investments, an affiliate of private equity major Carlyle Group, will sell up to 4.33 crore equity shares and Global Health co-founder Sunil Sachdeva (jointly with Suman Sachdeva) will offload up to 51 lakh equity shares. The proceeds from the fresh issue will be used to pay debt and general corporate purposes. Co-founded by Naresh Trehan, a renowned cardiovascular and cardiothoracic surgeon, Global Health is a leading private multi-speciality tertiary care providers in the north and east regions of India.
Multi-specialty pediatric hospital chain Rainbow Children’s Medicare Ltd has filed preliminary papers with capital markets regulator SEBI to raise over Rs 2,000 crore through an initial public offering (IPO). The public issue comprises fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale of up to 2.4 crore equity shares by the selling shareholders, according to the draft red herring prospectus (DRHP). The offer also includes a reservation for subscription by eligible employees. According to market sources, the IPO size is expected to be more than Rs 2,000 crore.The company proposes to utilise the net proceeds from the fresh issue towards early redemption of non-convertible debentures (NCDs) issued by the company, in full; capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals; and general corporate purposes. Rainbow, backed by UK-based development finance institution CDC Group plc, established its first 50-bed pediatric specialty hospital in 1999 in Hyderabad. Since then, it has established its reputation as a leader in multi-specialty pediatric services, with strong clinical expertise in managing complex diseases. As of September 30, 2021, Rainbow operates 14 hospitals and three clinics in six cities in India, with a total bed capacity of 1,500 beds.
Private equity firm TPG-backed sports and athleisure footwear brand Campus Activewear has filed draft red herring prospectus (DRHP) with the capital markets regulator Sebi to garner funds via initial public offering. The public issue of 5.1 crore equity shares is entirely an offer for sale by promoters and investors. Promoters Hari Krishan Agarwal, and Nikhil Aggarwal cumulatively will sell 1.4 crore equity shares via offer for sale. Investors TPG Growth III SF Pte Ltd will offload 3 crore equity shares and QRG Enterprises 67 lakh shares. Among others Rajiv Goel, and Rajesh Kumar Gupta are going to sell 3 lakh shares via OFS. Hence, the money raised will go to selling shareholders, and the company will not receive any funds from the offer. Promoters hold 78.21 percent shareholding in the company, and the remaining 21.79 percent stake is held by TPG Growth III SF Pte Ltd (17.19 percent), and QRG Enterprises (3.86 percent). Campus Activewear claimed to be the largest sports and athleisure footwear brand in India in terms of value and volume in FY21. The brand 'CAMPUS' was launched in 2005. The company had an approximately 15 percent market share in the branded sports and athleisure footwear industry in India by value for FY20, which increased to approximately 17 percent in FY21, as per the DRHP filing.
Capillary Technologies India, an artificial intelligence-based cloud-native software-as-a-solution (SaaS) products and solutions provider, has filed preliminary papers with the markets regulator Sebi to launch a public issue. The company is planning to raise Rs 850 crore through its IPO that comprises a fresh issue of Rs 200 crore and an offer-for-sale of Rs 650 crore by promoter Capillary Technologies International Pte Ltd (CTIPL). CTIPL holds 98.06 percent shareholding in the company. Capillary may consider raising Rs 40 crore through private placement, prior to the filing of the draft red herring prospectus with the Registrar of Companies. If the pre-IPO placement is completed, the fresh issue size will be reduced to the extent of such pre-IPO placement, according to the filing with the Securities and Exchange Board of India. The fresh issue proceeds will be utilised for repaying of debts, product development, technology upgrade and other growth initiatives, besides strategic investments and acquisitions, and general corporate purposes.
Protean eGov Technologies Ltd, which issues Pan Cards and helps government agencies in e-governance projects, has filed a draft red herring prospectus with the Securities Exchange Board of India (SEBI) to raise funds via an initial public offering. The IPO consists of a pure offer for sale (OFS) of 12.08 million shares by its existing promoters and shareholders. ICICI Securities, Equirus Capital Pvt Ltd, IIFL Securities Ltd, Nomura Financial Advisory and Securities India Pvt Ltd are the book running lead managers to the issue. The company's shareholders include financial institutions such as IIFL, NSE Investments Limited, SUUTI, Citicorp Finance India Limited and certain public and private sector banks such as State Bank of India, Punjab National Bank, Union Bank of India, Bank of Baroda and Canara Bank, HDFC Bank Limited, Axis Bank Limited, Deutsche Bank A.G, The Hong Kong and Shanghai Banking Corporation Limited, Standard Chartered Bank, among others.
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A sustained buying by the domestic funds limited the fall in the Indian equity market to 3% over the three months to December despite selling by foreign investors. According to the SEBI data, the three-month net cumulative inflow of domestic mutual funds was at a record high of Rs 53,718 crore while the outflow by foreign funds was Rs 38,271 crore, the highest since May 2020. The domestic inflow was over Rs 18,000 crore in December taking the gross buy-to-sale ratio to 1.37 compared with the long-term average of 1.06. The domestic funds invested Rs 76,235 crore in equities in 2021 of which nearly 70% was deployed in the last three months of the year. Excluding the outflow in the first two months of the year, local funds have been net buyers of equities for ten months in a row that resulted in the inflow of more than Rs one lakh crore during the period. The higher deployment by local funds was on account of growing popularity of systematic investment plans (SIP). The SIP inflow was at a record Rs 11,004 crore in November 2021 taking their total assets under management (AUM) to Rs 5.5 lakh crore. Nearly 90% of SIPs are linked to equity funds. In addition, the folios under retail schemes including equity, hybrid, and solution-oriented schemes rose toa record 9.5 crore.
Navi Mutual Fund has announced the launch of Navi Nifty Next 50 Index Fund, an open-ended equity scheme that will replicate the Nifty Next 50 Index. The Nifty Next 50 Index is composed of the next 50 largest companies by market capitalisation after the Nifty 50 companies. The NFO will open in the 1st week of January 2022 for a period of 15 days. Navi’s Nifty 50 Index Fund which was launched in July this year had collected over Rs. 100 Crore in its NFO. The fund house says that, of the 75 stocks that have graduated to the Nifty 50 Index in the last 19 years, 51 have been from the Nifty Next 50 Index. The Nifty Next 50 index has achieved attractive returns over varied time horizons. Its 1 year, 5 year and 10 year CAGR are 57.7%, 14.4% and 17.1% respectively. Moreover, investing in a combination of Nifty Next 50 & Nifty 50 offers a higher risk adjusted return than investing in Nifty 50 alone, over the long term.
ICICI Prudential Mutual Fund has launched ICICI Prudential Passive Multi-Asset Fund of Funds. The fund will have investments in equity, debt, gold and international passive funds as well as ETFs. The cost of the scheme will be capped at 1%. The NFO opens for subscription on December 27 and closes on January 10, 2022. The offering aims to provide returns that closely correspond to the total return of the benchmark CRISIL Hybrid 50+50- Moderate Index (80% weightage) + S&P Global 1200 Index (15% weightage) + Domestic Gold Price (5% weightage) subject to tracking errors. According to the fund house, ICICI Prudential Passive Multi-Asset Fund of Funds aims to be a simple solution for multiple problems. The fund house says that the fund will provide investors the opportunity to take exposure to an offering which is well-diversified across asset classes and provides tactical allocation to a particular sector. The offering is both cost and tax efficient as the investor will not attract any tax incidence when the FoF is rebalanced.
Value-oriented mutual fund schemes or value funds offered an average return of 35% in 2021, according to Value Research. These schemes have given around the same 35% returns this year till date. The benchmark S&P BSE 100 TRI offered around 25.99% in the current year. Almost all schemes offered more returns than the benchmark returns. There are 18 schemes that have completed one year in the category. IDFC Sterling Value Fund, the topper in the category, offered around 63% returns in the last one year. Quantum Long Term Equity Fund stood last in the performance chart with 24% returns. ICICI Prudential Value Discovery fund, the larger fund with an AUM of Rs 21,800 crore, offered around 37% returns.
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