In the week gone by, by, global stock market looked calm on the back of a strong recovery in Chinese tech stocks after a brutal selloff, progress in Russia-Ukraine peace talks, and a drop in crude oil prices. Another factor was the announcement made by China that they would likely be taking strong measures to boost the Chinese economy in coming quarter. Meanwhile, the Fed has hiked its interest rate by 0.25 percentage points, its first rate hike since 2018, to tackle the highest inflation figures witnessed in four decades. Moreover, it has also indicated to hike interest rates at all the remaining 6 meetings, thereby raising rates by a consolidated 1.9% by the end of the year. The Widespread lockdowns in China akin to the measures just taken in the southern technology hub of Shenzhen is expected to affect half of the country's gross domestic product. In another development, Japan's core machinery orders slipped for the first time in five months in January, a worrying sign for an economy already facing heightened pressure from the Ukraine war and high energy and raw material prices.
Back at home, ease in FII selling, and positive global cues moved the market higher. Sentiments were further supported by the cool-off in the oil prices, and the progress on the peace talk between Russia and Ukraine conflict. The recent Fed’s 25 basis point rate increase is expected to put pressure on other central banks to follow suit, including RBI. Meanwhile, the country’s index of industrial production (IIP) grew 1.3 per cent to 138.4 in the month of January, data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed. Whereas India's retail inflation touched 6 per cent in January, the highest since July 2021. This is the fourth successive rise seen in inflation. Going forward, the movement in global markets as well as fluctuations in domestic currency and crude prices will be closely tracked.
On the commodity market front, Commodities have seen much needed correction for second consecutive weeks on progress of ceasefire between Russia and Ukraine war and bounce in equity market. CRB breached the level of 300; which made a high of 328.75 in its previous week. Most of the commodities have already seen sharp fall after sharp rise as war premium wiped out significantly, however war is already going on and supply side is historically tight and shipment delay is expected to continue amid record high freight rates. In these situations we can’t expect further sharp fall in commodities. Crude may take support near 6975 and upside is capped near 7600. Bullion can see fresh buying on correction. Now it will see both side of movements on buy and sell side. Inflation Rate YoY and BoJ Interest Rate Decision of Japan, Core Inflation Rate and Inflation Rate of UK, Durable Goods Orders MoM and Markit Manufacturing PMI Flash of US are few triggers for the commodities market. However, the major trigger for the market will remain the development in peace talk between Russia and Ukraine and war status.
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SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The company has been securing orders both from India and major international markets. The Management has also mentioned that enquiry levels remained healthy both in domestic and exports market and it is confident that the order booking momentum will continue in the coming quarters which will aid sustained growth for the Company. Thus, it is expected that the stock will see a price target of Rs.225 in 8 to 10 months’ time frame on a target P/Bv of 7x and FY23 BVPS of Rs.32.10.
The bank has exhibited healthy improvement in operating efficiency driven by a top-line growth. The business growth of the bank is as per the industry and every segment is showing good growth. Thus, it is expected that the stock will see a price target of Rs.57 in 8 to 10 months’ time frame on a 3 year’s average P/BVx of 0.57x and FY23 BVPS (Book Value per Share) of Rs.99.88.
The stock closed at Rs 719.85 on 17th March, 2022. It made a 52-week low at Rs 469.25 on 20th December, 2021 and a 52- week high of Rs. 723.95 on 17th March, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 577.48
As we can see on charts that stock is trading in higher highs and higher lows on charts which is bullish in nature. Apart from this, stock has consolidated in narrow range and given the breakout of same during last week and also has managed to close near week’s high, made “Long Marubozu” candlestick on weekly charts which is considered to be bullish. Therefore, one can buy in the range of 700-707 levels for the upside target of 800-820 levels with SL below 660 levels.
The stock closed at Rs 2703.00 on 17th March, 2022. It made a 52-week low of Rs 1400.05 on 04th May, 2021 and a 52-week high of Rs. 2721.65 on 17th March, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 2203.54
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 has formed a “Bull Flag” pattern on weekly charts which is bullish in nature. Last week, stock has given the pattern breakout along with high volumes and also has managed to close above the same, So, follow up buying may continue in coming days. Therefore, one can buy in the range of 2650-2670 levels for the upside target of 2900-2950 levels with SL below 2520 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 market extended its previous week gains as Nifty surged more than 3.50 % while bank nifty ended the week with gains of more than 5% on the back of positive global Cues. The rally got extended over the week after the Fed rate hike, softening oil prices and progress in Russia- Ukraine talks boost sentiments of bulls. From derivative front, short covering was observed by call writers at 17000 strike which push the Nifty towards17250 mark. Implied volatility (IV) of calls closed at 22.73% while that for put options closed at 24.17. The Nifty VIX for the week closed at 24.12% which was higher than the previous week. PCR OI for the week closed at 1.46. From the technical front, Nifty has once again managed to close above its short and long term moving averages on daily and weekly charts after witnessing a v shape recovery from its recent lows. Going forward, we expect that bulls will likely to dominate Indian market while intraday volatility cannot be ruled out. On higher side, now 17400-17500 zone will act as a strong resistance zone for Nifty while 17000-16900 zone will provide support on any pull back.
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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) correction continued last week as the new season arrivals were increasing in the physical market. We expect the prices to trade lower towards 8000 with major resistance at 8950. Currently, new season turmeric is hitting the market but the exports are normal this season. As per data release by Dept. of commerce, turmeric exports in Jan 2022 is down by 25% on month to 10,600 tonnes compared to 14275 tonnes in Dec 2021. In the first 10-months (Apr-Jan) of FY 2021/22, exports down 20.1% at 1.27 lakh tons compared to last year but higher by 9.2% compared with 5-year average. Jeera futures (Apr) traded under pressure last week at higher price on expectation that the exports may be affected due to corona outbreak in China. It is likely to correct more if it breaches the immediate support at 19350 in coming week. The peak season for arrivals of new season jeera will be commencing in next onemonth time. The physical arrival of old and new crop in Unjha improved to around 20000-25000 bags (1 bag = 55 kg) daily compared to less than 15000 bags last week. In the New Year, jeera prices have jumped more than 29% and currently prices are higher by 40% y/y on reports lower production estimated in the state of Gujarat and Rajasthan. As per data release by Dept of commerce, jeera exports in Jan 2022 is up by 19% on month at 14725 tonnes compared to 12385 tonnes in Dec 2021. However, exports of jeera for Apr-Jan are down by 23% Y/Y at 1.88 lt as compared to 2.44 lt last year. Dhaniya futures (Apr) continued its corrections for the fourth consecutive week but taking good support 10400 levels since last one month. Now the resistance is at 11000 levels. The price may trade higher towards 11500, if it breaks the resistance. Currently prices are higher by 50% y/y and up 20% since January due to expectation of lower crop and good demand. As per data release by Dept of commerce, jeera exports in Jan 2022 is down by 15% on month at 3590 tonnes compared to 4630 tonnes in Dec 2021 while for fy 2021/22 (Apr-Jan) export volume is down by 15% at 41,100 tonnes Vs 48,350 tonnes last year but 11% higher compared to 5-year average.
Gold prices have been under pressure in the past few sessions amid Russia- Ukraine talks and strong equities. Gold extended its losses as ceasefire talks between Russia and Ukraine reduced demand for safe-haven assets. The US central bank raised interest rates for the first time since 2018 but gave an upbeat review of the world's number-one economy. Fed's rate decision lifted the U.S. 10-year Treasury yields to their highest since May 2019. The key question for gold in times of geopolitical crises is always whether economic and financial market risks are on the rise or whether they are receding. For the moment, the gold market is reflecting the latter even though it is constantly assessing the situation, which remains highly in flux and highly uncertain. Meanwhile, Ukraine and Russia resumed talks via video, with Zelenskyy adviser Mikhailo Podolyak saying Ukraine was demanding a cease-fire, the withdrawal of Russian troops, and legal security guarantees for Ukraine from several countries. Ukrainian President Volodymyr Zelensky said negotiations were becoming "more realistic" and Russia said proposals under discussion were "close to an agreement. The Russian central bank said it would suspend the buying of gold from banks to meet increased demand for the metal from households, its latest attempt to weather the storm on Russian markets in the face of Western sanctions. Meanwhile, holdings of the world's largest goldbacked exchange-traded fund, SPDR Gold Trust, rose1,070.53 tonnes- its highest in one year. Ahead in the week, prices may continue to witness both side movements where buying near support and selling near resistance would be a strategy. Whereas the range for gold would be 49000-53200. Whereas silver may trade in the range of 65800-71000 levels.
Crude oil prices fell by more than 12% as Ukraine and Russia looked to resume diplomatic talks and the United Arab Emirates said it supports hiking oil output to ease mayhem in energy markets. Russia's foreign minister Sergei Lavrov arrived in Turkey ahead of planned talks with his Ukrainian counterpart Dmytro Kuleba for what will be the first meeting between the two since Russia invaded Ukraine two weeks ago. Moscow warned it was considering a response to the U.S. ban on Russian oil and energy imports, saying the U.S. has declared economic war on Russia. Global oil prices fell by the most in nearly two years after the UAE said it will be encouraging Organization of the Petroleum Exporting Countries (OPEC) to consider higher output. International Energy Agency said that some 3 million barrels per day of Russian oil output could be shut-in due to Western sanctions and as buyers snub Russian exports. That would exceed a 1 million bpd drop in demand anticipated as a result of higher prices. The Russian invasion and ensuing sanctions are exacerbating supply chain problems created by the pandemic. Ahead in the week prices may continue to trade lower and probable range would be 6980-7580. Natural gas prices remains range bound as the weather continues to remain subdued during the shoulder season. According to a report from NOAA, the weather in the U.S. is expected to be warmer than normal throughout most of the United States for the next 6-10 and 8-14 days. U.S. consumption was down week over week. Ahead in the week prices may continue to trade with sideways to negative bias and range would be 340-370.
Base metals may trade in the range on mixed fundamentals. Supply disruptions due to continued conflict between Russia & Ukraine, sanctions on Russia, and low global stockpiles may provide cushion to the prices. Hopes of more stimulus measures in top metals consumer China will also positive for the counter. But prices may take a dip due to concerns over the fallout from surging COVID-19 cases in China that overshadowed its upbeat economic data. China's economy perked up in the first two months of 2022, with key indicators exceeding analysts' expectations, however, a surge in Omicron cases, property weakness and heightened global uncertainties may weigh on the outlook. Chinese Vice Premier Liu He urged government bodies to roll out market-friendly policies and "cautiously" introduce measures that risk hurting markets. New talk of compromise from both Moscow and Kyiv on a status for Ukraine outside of NATO lifted hope for a potential breakthrough after three weeks of war and it may ease the supply crunch. Copper may trade in the range 760-840. Southern Copper plans to import copper concentrate potentially from as far away as Mexico for its refinery in Peru after protests halted operations at its Cuajone mine. Zinc can move towards 330 with support of 310 levels. Lead can move in the range of 180-188 levels. Nickel may trade slip towards 2450. China's Tsingshan Holding Group has reached agreements with two companies to swap its nickel products with a purer form of the metal to close out large short positions it holds on the LME, statebacked Shanghai Securities News said. Aluminum may trade in the range of 255-280 levels with positive bias.
Cotton futures (Mar) continued to trade higher last week for the third consecutive week due to good physical demand and loser supplies. We expect prices to trade higher towards 40000 levels if it breaches its resistance of 38650 levels. The domestic prices are high 75% y/y and jumped about 14% in the New Year due to concerns over production, slow arrivals, better domestic and exports demand. In its latest March report, the USDA cut its forecast for global cotton production in 2021- 22 to 119.9 million bales (1 US bale= 218kg), compared to 120.2 million bales projected in Feb 2022. In the second advance estimates, govt has cut cotton production in the country to 340 lakh bales from 362 lakh bales in 1st estimate. Guar seed futures (Apr) corrected last week after closing higher for two consecutive weeks on profit booking at higher levels. The resistance is now at 6320, if this resistance is broken, the price may trade higher towards 6600 levels while support is 6000 levels. Currently, prices are up 60% y/y on reports of lowest production in last 5 years, multi-year lower stocks and improving export demand due to higher crude oil prices. The oil-rig count is also higher by about 248 compared to last year. As per data release by APEDA, Guar gum exports in the month of jan 2022 are higher by 5% y/y at 22300 tonnes while exports in 2021/22 (Apr-Jan) are up by 38.4% y/y at 2.64 lakh tonnes. Castor Seed (Apr) is trading at higher levels near the resistance at alltime high at 7460 levels. The trend is still positive and expects it to trade higher towards 7600 if it breaks its resistance. Prices jumped more than 24% this year due to its higher demand and lower production estimates and higher by 54% y/y. Castor Crop Survey for 2021-22 at the SEA Global Castor Conference 2022, India’s castor seed production is estimated at 17.95 lakh tonnes (lt) during the current 2021-22 season, against 17.89 lt in 2020-21. Castor oil exports during Apr-Jan are at par with the last year export volume at 5.06 lakh tonnes. Mentha Oil (Mar) traded in a very narrow range last week to close little lower. The immediate resistance is 1050 levels and support is at 1000 levels. The trend looks positive in the weekly timeframe and is likely to trade higher towards 1100 levels in coming weeks. On the fundamental side, the sowing of mentha is going to be affected this season due to area covered under maize and other summer crops in Uttar Pradesh.
ZINC MCX (APR) contract closed at Rs. 316.05 on 16th Mar 2022. The contract made its high of Rs. 370.00 on 08th Mar’2022 and a low of Rs. 293.75 on 21st Feb’2022. The 18- day Exponential Moving Average of the commodity is currently at Rs 314.46. On the daily chart, the commodity has Relative Strength Index (14-day) value of 55.119.
One can sell near Rs. 317 for a target of Rs. 302 with the stop loss of 323.
COTTON MCX (MAR) contract was closed at Rs. 38330.00 on 16th Mar’2022. The contract made its high of Rs. 39040.00 on 14th Feb’2022 and a low of Rs. 32320.00 on 02nd Feb’2022. The 18-day Exponential Moving Average of the commodity is currently at Rs. 37704.99. On the daily chart, the commodity has Relative Strength Index (14-day) value of 63.683.
One can buy near Rs. 38400 for a target of Rs. 39500 with the stop loss of Rs 37900.
JEERA NCDEX (APR)contract closed at Rs. 20490.00 on 16th Mar’2022. The contract made its high of Rs. 22800.00 on 23rd Jan’2022 and a low of Rs. 16910.00 on 22nd Dec’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 20940.31. On the daily chart, the commodity has Relative Strength Index (14-day) value of 49.470.
One can buy near Rs. 20500 for a target of Rs. 21500 with the stop loss of Rs. 20000.
Commodities have seen much needed correction for second consecutive weeks on progress of ceasefire between Russia and Ukraine war and bounce in equity market. CRB breached the level of 300; which made a high of 328.75 in its previous week. The dollar traded near a five-year high against the yen as investors awaited a Federal Reserve policy decision, with the Ukraine war and China's surging COVID-19 cases as the backdrop. Treasury yields surged ahead of the Federal Open Market Committee decision. Within two week, gold and silver saw a fall from 55558 to 51220 and 73078 to 67607 respectively. Gold was down, holding near a two-week low. Investors stayed away from big bets as they await the U.S. Federal Reserve’s latest policy decision. Higher interest rates increased the opportunity cost of holding non-yielding bullion. Crude oil prices tumbled to their lowest in nearly three weeks on Tuesday as Covid-19 lockdowns in China combined with more encouraging news on the supply side to trigger hastier selling in an overbought market. In a monthly report, OPEC stuck to its view that world oil demand would rise by 4.15 million barrels per day (bpd) in 2022. But OPEC said the war in Ukraine and continued concerns about COVID-19 were reshaping the world economy, and it said this would have a negative short-term impact on global growth. Natural gas took support near 340 and closed the week in green territory above 360. Base metals traded in a different direction. After a razor sharp falls, nickel traded in a range with negative bias. LME resumed trading on 16th of April but gain shut down the trading in nickel "to investigate a potential technical issue with the limit down band. Copper, aluminum and lead saw further fall as rising cases of the Omicron variant of COVID 19 dampened the economic outlook for top metals consumer China whereas zinc recovered to some extent. Due to severe losses on imported zinc ore at the current SHFE/LME zinc price ratio, smelters prefer Chinese domestic ore. If the SHFE/LME zinc price ratio does not improve significantly, some smelters may be forced to reduce their production.
It was a weak week for Spices in which all the three spices witnessed proftbooking from higher side. Jeera was down on profit booking and expectation of slow exports to China due to fresh Corona Outbreak. Turmeric and Dhaniya prices slipped on fresh arrivals ahead of Holi festival. The Russian invasion of Ukraine may affect supply of coriander from Romania and Bulgaria, which will support Indian market in long run. Cotton oil seed cake was down on lower export demand. Guar counter was down on bearish sentiments in crude oil.
The ongoing Russian-Ukraine clash has sparked a major surge into safe-haven metals. Fears of supply interruptions, economic outcomes and inflation are pushing precious metals prices such as gold and silver. Aside from buying gold and silver directly, some investors consider ETFs to be a more liquid and low-cost way to invest in gold or silver than other options such as futures or shares of gold & silver mining companies. Like gold ETFs, silver exchange-traded funds closely track the price of silver and are generally more liquid than owning the precious metal itself.
Rather than buy the bars or bullion, then arrange delivery, then find safe storage for the metal, then deal with the difficulty of finding a buyer when you're ready to unload it, ETFs allow to buy and sell silver with the click of a button in brokerage account. Apart from being heavy and difficult to store, physical silver can also trade at a large premium to spot prices. Thus, for exposure to silver, it will be better to buy ETFs as one need not have to worry about the bulky nature of silver, purity, quality or liquidity of the investment. In India, when you buy physical silver you have to pay the GST but no credit is available to you for GST paid when you actually sell the physical silver.
Silver ETFs
Globally, there are many silver ETFs that traded in different markets. The iShares Silver Trust (SLV) is the largest silver ETF with $12.7 billion in assets under management, a little more than a fifth of the size of the $60 billion SPDR Gold Shares. The fund currently holds 544 million ounces of physical silver in its vaults, located in England and the U.S.
In India, after getting approval from markets regulator Sebi, India’s secondlargest mutual fund house, ICICI Prudential Asset Management Company Ltd, started the India’s first silver exchange-traded fund (ETF) in January 2022. In the last one month, the newly launched silver ETF category has outperformed gold funds with an average return of 8%. Mutual fund managers believe that the geopolitical scenario and the environment of uncertainty and chaos are pushing the prices of silver and other commodities. Aditya Birla Sun Life Mutual Fund and Nippon Life India Asset Management LTD have also launched new fund offers of ETFs based on silver. The Silver ETFs are benchmarked against the domestic price of silver as derived from the LBMA prices.
The investors can buy/ sell units of the scheme in round lot of 1 unit and in multiples thereof while Authorized Participant(s)/ Investor(s) can buy/ sell units of the scheme in Creation Unit Size viz. 30,000 units and in multiples thereof.
Guidelines regarding silver ETF in India
As per the guidelines by SEBI, a Silver ETF scheme must invest at least 95 per cent of the net assets in silver and silver-related instruments. Physical silver must be of standard 30 kgbars with 99.9 per cent purity (999 parts per thousand) conforming to London Bullion Market Association (LBMA). Also, to bring more transparency, the regulator has asked the fund houses for physical verification of silver underlying the Silver ETF units. This verification will be carried out by the mutual fund’s statutory auditor, who will report to the trustees every six months.
Silver has many roles to play in future technologies such as 5G telecom, electric vehicles and green energy. This opens a new window for consumption and demand for the metal. So silver ETFs also offers good portfolio diversification, a hedge against inflation and better returns than gold during economic revival over a longer period.
Indian Rupee reversed from its last week record low of 76.96 to rally towards 76.00 this week after risk-on sentiment advances supported by de-escalated news came from Russia-Ukraine front. Meanwhile the US Federal Reserve raised interest rates by a quarter percentage point and signaled hikes at all six remaining meetings this year, launching a campaign to tackle the fastest inflation in four decades. Further Fed Chief Jerome Powell ruled-out for a larger half-point increase, which would have been the first since 2000, but said it could still happen in the future. Accordingly markets was discounted the 25 bps hike which helped euro to remains steady as well. Additionally euro got supported this week after Ukrainian and Russian officials are set to have further talks in coming days. However we will remain slightly cautious in euro for next week as well. While GBPUSD advances in anticipation of further rate hike from Bank of England. We will maintain our bullish stance in GBPINR in coming days. on charts Dollar rupee has pause its upward rally after knocking record high near 77.33 level and now consolidating in range of 76.00 to 76.85 levels from last few trading sessions which are going to act as immediate support and resistance respectively. However overall trend for USDINR is still bullish as hold above it major moving averages. On down side, below range next support is placed around 75.60 breaking down the same may turn to negative while on higher side beyond range next resistance will be near 77 levels.
USD/INR (MAR) contract closed at 76.2750 on 16-Mar-22. The contract made its high of 76.8525 on 14-Mar-22 and a low of 76.2400 on 16 Mar-22 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 76.0690.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 50.49.One can sell at 76.25 for the target of 75.25 with the stop loss of 76.75.
GBP/INR (MAR) contract closed at 99.7900 on 16-Mar-22. The contract made its high of 100.8325 on 16-Mar-22 and a low of 99.6350 on 16-Mar-22 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 100.9000.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 34.28. One can buy at 99.60 for a target of 100.60 with the stop loss of 99.10.
| 16th MAR | US Fed delivers first rate hike after more than 3 years, raises interest rate by 0.25% |
| 16th MAR | Retail sales in the US jumped 3.8% mom in January of 2022, |
| 16th MAR | US tells allies China signalled openness to providing Russia with military support |
| 15th MAR | China warns of retaliation if hit by Russia sanctions fallout |
| 15th MAR | The UK unemployment rate declined to 3.9 percent in the three months |
| 15th MAR | The Producer Price Index for final demand increased 0.8 percent in February |
| 14th MAR | Russia has asked China for military help in Ukraine, US officials say |
| 14th MAR | BoE poised to raise interest rates to pre-Covid level |
| 14th MAR | Retail inflation in India rises to 6.07% in February |
EUR/INR (MAR) contract closed at 84.0225 on 16-Mar-22. The contract made its high of 84.6000 on 11-Mar-22 and a low of 83.7625 on 14-Feb-22 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 84.4450.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 39.38. One can sell at 84.00 for a target of 83.00 with the stop loss of 85.50.
JPY/INR (MAR)) contract closed at 64.6100 on 16-Mar-22. The contract made its high of 65.9575 on 11-Mar-22 and a low of 64.5600 on 16-Feb-22 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 65.3940.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 35.00. One can buy at 63.90 for a target of 64.90 with the stop loss of 63.40.
Diversified FMCG company Ruchi Soya will launch its follow-on public offer on March 24. A follow-on offering is an issuance of additional shares made by a company after an initial public offering. The issue will close on March 28. "The FPO comprises equity shares of face value of Rs 2 each aggregating to Rs 4,300 crore. The issue also includes a reservation of up to 10,000 equity shares for subscription by eligible employees. If such placement is completed, the follow-on size will be reduced," it said in a statement. In order to comply with market regulator, SEBI's requirement of a minimum public shareholding of 25 per cent in a listed business, the company is issuing the additional public offering. Currently, Patanjali Group owns about 98.9 per cent stake in Ruchi Soya. Public shareholders own about 1.1 per cent stake. Post the FPO, Patanjali Group's holding in Ruchi Soya will come down to about 81 per cent and the public would hold about 19 per cent. Entire proceeds from the issue will be used for furthering the company's business by repayment of certain outstanding loans, meeting its incremental working capital requirements and other general corporate purposes, the statement said.
Rainbow Children’s Medicare, the multi-speciality pediatric and obstetrics and gynaecology hospital chain backed by UK-based development finance institution CDC Group plc, has received approval from the Securities & Exchange Board of India (SEBI) to launch Rs 2000 crore initial public offering (IPO). The IPO comprises a fresh issue of equity shares aggregating up to Rs 280 crore and an offer sale of up to 24,000,900 equity shares (up to 2.4 crore equity shares) by the selling shareholders. The company proposes to utilise the net proceeds from the fresh issue towards early redemption of NCDs (non-convertible debentures) issued by the company and spend on capital expenditure towards setting up of new hospitals and purchase of medical equipment for such new hospitals; and general corporate purposes. The offer also includes a reservation for subscriptions by eligible employees. The Hyderabad-based speciality chain is one of India’s largest multi-speciality pediatric care providers based on hospital beds, as of March 31, 2021. Rainbow was established its first 50-bed pediatric speciality hospital in 1999 in Hyderabad by NRI doctor-turned entrepreneur Dr Ramesh Kancharla. 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.
Flipkart co-founder Sachin Bansal-led tech-driven financial services startup Navi Technologies, which turned profitable in FY21, has filed papers with market regulator Securities and Exchange Board of India (Sebi) to raise up to Rs 3,350 crore via an initial public offer. Navi has opted for the inorganic route in the past to enter segments and its businesses include lending, general insurance, mutual funds, and microfinance. In 2019, Navi had acquired Chaitanya India Fin Credit for Rs 739 crore and entered the microfinance segment. Chaitanya had also applied for a universal banking licence from the Reserve Bank of India (RBI). According to reports, Navi’s loan book size is about Rs 3,500 crore. Navi MF had acquired assets of Essel MF in 2021 and the firm had also filed for a blockchain fund last year. It also has a stockbroking licence from Sebi.
Hexagon Nutrition has received capital markets regulator SEBI’s approval to raise up to Rs 600 crore through an initial public offering (IPO). The company’s public issue consists of a fresh issue of equity shares aggregating to Rs 100 crore, and an offer for sale (OFS) of up to 30,113,918 equity shares, according to the draft red herring prospectus (DRHP). The OFS comprises sale of up to 77 lakh shares by Arun Purushottam Kelkar, up to 61.36 lakh shares by Subhash Purushottam Kelkar, up to 15 lakh shares by Anuradha Arun Kelkar, up to 25 lakh shares by Nutan Subhash Kelkar, up to 1.22 crore shares by Somerset Indus Healthcare Fund I Ltd and up to 73,668 shares by Mayur Sirdesai. As per market sources, the issue size will be approximately in the range of Rs 500-600 crore. Proceeds from fresh issuance will be used for debt payments, funding incremental working capital requirements, supporting capital expenditure for expanding an existing facility, investment in subsidiary and financing capital expenditure at the existing facility and general corporate purposes. Mumbai-based Hexagon Nutrition is a fully integrated company engaged in product development and marketing, including research and development and nutrition manufacturing. Founded by Arun and Subash Kelkar in 1993, Hexagon Nutrition started as a micro-nutrient formulations player, and today it has moved up the value chain to develop brands like Pentasure, Obesigo and Pediagold, which are leading names in the health, wellness and clinical nutrition space. In 2016, offshore private equity firm Somerset Indus Healthcare Fund-I, along with Mayur Anand Sardesai, an advisor and director at Somerset Health Capital Advisors, had invested Rs 25 crore for a 10 per cent stake in the company.
The government has time till May 12 to launch the initial public offering (IPO) of LIC without filing fresh papers with market regulator Sebi, an official said. The government's sale of about 31.6 crore shares or 5 per cent stake in Life Insurance Corporation (LIC), which was estimated to fetch around Rs 60,000 crore to the exchequer, was originally planned to be launched in March, but the Russia-Ukraine crisis has derailed the plans as stock markets are highly volatile. On February 13, the government filed the draft red herring prospectus (DRHP) for the IPO with Sebi, which granted its approval for the same last week. If the government misses the May 12 window available with it, LIC would have to file fresh papers with Sebi giving the results of December quarter and also update the embedded value. LIC's embedded value, which is a measure of the consolidated shareholders value in an insurance company, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors.
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Tata Mutual Fund launched Tata Nifty India Digital Exchange Traded Fund - an open-ended Exchange Traded Fund replicating / tracking Nifty India Digital Index. The new fund offer or NFO opened for subscription on 14 March, and it will close on 25 March. The index will select top 30 companies, based on market cap which align to the pre-defined set of basic industries. Tata Nifty India Digital Exchange Traded Fund is a passive portfolio replicating a predefined Digital India Index. Current characteristics of Nifty India Digital Index based on its index construction methodology represents the digital change agent companies and digital enablers. Digital transformation is still in the early stages and we expect more new age companies to achieve scale, raise capital and get listed over the next 3-5 years. As this transformation unfolds and the new age companies become a more prominent part of the economy and equity markets, we see the emergence of new hybrid segments like consumer tech, fintech, edtech, etc. The portfolio, over a period, would have adequate representation to Digital enablers as well i.e. IT Services/ Cloud transformation / SaaS companies. The Indian IT services companies which are ahead in digital and cloud capabilities will also be an important part of this segment along with companies which are in the automation/robotics/IoT space.
Axis Mutual Fund has announced the launch of Axis NIFTY Midcap 50 Index Fund. The scheme will be managed by Jinesh Gopani, Head – Equity. The fund will track the NIFTY Midcap 50 Index TRI. The new fund offer or NFO will open for subscription on 10 March, and close for subscription on 21 March. The minimum application amount is Rs 5,000 and in multiples of INR 1, thereafter. According to the press release, Axis NIFTY Midcap 50 Index Fund will follow a rule-based passive investing strategy. The fund house says that this low cost investing solution is ideal for investors looking for exposure to midcaps, while following a disciplined and systematic format of investing. Investors can look to invest through various systematic options like SIPs, STP’s to adopt a more disciple approach or invest via lumpsum. Axis NIFTY Midcap 50 Index Fund will invest in 50 most liquid midcap stocks, giving preference for stocks where F&O contracts are traded on NSE.
HSBC Mutual Fund has launched HSBC CRISIL IBX 50:50 Gilt Plus SDL Apr 2028 Index Fund (HGSF), an open-ended Target Maturity Index Fund tracking CRISIL IBX 50:50 Gilt Plus SDL Index - April 2028. The fund house says that the scheme has relatively high interest rate risk and relatively low credit risk. According to the press release, HGSF with a mix of quality debt papers aims to provide better risk-adjusted performance and liquidity. The fund will be benchmarked against CRISIL IBX 50:50 Gilt Plus SDL Index - April 2028 and managed by Kapil Punjabi, SVP - Fund manager Fixed Income. The fund aims to focus on the six-year target maturity segment and gain from the current volatile outlook on long-term securities. The fund will invest in government securities forming part of the GSec portion of CRISIL IBX 50:50 Gilt Plus SDL Index – April 2028, State Development Loans securities forming part of the SDL portion CRISIL IBX 50:50 Gilt Plus SDL Index – April 2028. Apart from this, the scheme will also have an allocation to money market instruments including cash and cash equivalents (Treasury Bills, Government Securities with residual maturity of up to 1 year and Tri-Party Repos and any other like instrument as specified by the Reserve Bank of India from time to time).
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