In the week gone by, Global stock market sentiments got boosted after the US Senate approved the debt-ceiling suspension till January 1, 2025, thereby, averting a default. The Senate voted 63-36 to approve the bill that was passed on Wednesday by the House of Representatives, as lawmakers raced against the clock following months of partisan bickering between Democrats and Republicans. In another development, Fed’s Patrick Harker signalled a pause in rate hike in June FOMC. On the data front, US Weekly unemployment claims rose to 232,000 vs 230,000 in the previous week. ISM manufacturing PMI contracted for the seventh consecutive month to 46.9 in May vs 47.1 in April. On the flip side, European market look nervous after China reported weak economic data and it fuelled concerns about a global slowdown. The European Central Bank is widely expected to increase interest rates by another 25 basis points on June 15, adding to the combined 375 basis points of hikes over the past year to combat runaway prices. Recent data form China showed that Chinese manufacturing data showed further weakness. Even China's services sector also cooled off, further deflating hopes of a rebound.
Back at home, Domestic market looked enthusiastic with rotational buying seen across sectors including auto, banking and FMCG after strong earnings and expectations of a good monsoon. India's stock market capitalisation beat that of France to reclaim its spot as the world's fifth largest stock market, amid rapid revival in Adani Group stocks. Market is taking cues from the better-than-expected FY23 GDP growth rate. Besides other high frequency indicators such as like GST collections, manufacturing PMI, auto sales in May and impressive credit growth indicate a healthy and gradually improving economy. In the upcoming Monetary policy meeting, it is expected that the central bank would focus on two important aspects on headline retail inflation and a better than expected GDP growth print in Q4FY23. Besides, The MPC will continue with the 'pause' mode at its upcoming meeting. To note, the consumer price index (CPI) inflation moderated in April-23 to 4.70 per cent year-on-year (YoY), an 18-month low and remained within the RBI's target range (2-6 per cent) for the second consecutive month. Going forward, market will continue to take direction from the global and the domestic factors.
On the commodity market front, CRB slipped further on rise in dollar index. A stronger dollar makes oil more expensive for buyers holding other currencies. The greenback still remained close to 10-week highs hit in May, buoyed by the prospect of higher-for-longer U.S. rates. Buying returned in bullion counter after a three week fall. Gold experienced volatile movements but ultimately closed higher as buying returned after a three-week decline. The recovery in gold was fuelled by expectations that the Federal Reserve would keep interest rates unchanged in June and positive developments in the U.S. debt ceiling bill. Conversely, energy prices fell due to a stronger dollar and weak data from China, which raised concerns about demand. Base metals saw mixed performance, with zinc and lead prices declining while aluminum remained stable and copper rebounded slightly. Economic recovery in China showed signs of slowing down, impacting industrial metal prices. Zinc inventories also increased, indicating a surplus due to rising supply and weak demand. Castor prices decreased due to lack of export demand, while cotton oil seed cake and cotton candy prices recovered. Guar prices ended on a bearish note due to falling crude oil prices and sluggish export demand. Jeera prices saw buying interest, but dhaniya and turmeric remained weak.
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 is focussed on leveraging its brand to strengthen current relationships through new offerings, enhancing capital allocation, margin improvement and seeking new development options with worldwide partnerships. It is investing in green and clean technology and expanding its product portfolio. According to the management, the company is entering a phase where its mix of work would change over the next couple of years with opportunities emerging in the climate and energy transition space. Thus, it is expected that the stock will see a price target of Rs. 2733 in 8 to 10 months’ time frame on a one year average P/BVx of 7.27x and FY24 BVPS of Rs.375.97E.
The company has reported strong business growth and it expects the momentum to continue in FY2024 on the back of the launch of two new malls within the next six months, a sustained consumption growth in existing malls, ramp up at existing malls in Chennai, Pune and Kurla on account of increase in trading area and consumption growth in its newly launched malls. Thus, it is expected that the stock will see a price target of Rs.1725 in 8 to 10 months’ time frame on three year average P/BV of 3.36x and FY24 BVPS of Rs.513.26.
The stock closed at Rs 4266 on 02ndJune, 2023. It made a 52- week low of Rs.3308.20 on 14th March, 2023 and a 52-week high of Rs.4624.90 on 26th August, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 3899.
Stock can be seen trading under pressure since last two years as prices have witnessed a series of decline from 7200 levels to 3300 levels. On broader charts, the stock formed a “Double Bottom” pattern around 3300 levels and bounced sharply thereon to reclaim a fresh move above its 200 days exponential moving average on weekly interval. At current juncture, stock has given a fresh breakout above the falling trend line of declining channel. The breakout has been witnessed with marginally higher volumes, which suggest a long build up into the prices. Therefore, one can buy the stock in the range of 4250-4270 levels for the upside target of 5000-5050 levels with SL below 3700 levels.
The stock closed at Rs 1138 on 26th May, 2023. It made a 52- week low at Rs 877.35 on 15th July, 2022 and a 52-week high of Rs.1156.65 on 03rd February, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.1069.
From last six months, the stock has been consolidating in broader range of 4900-4150 levels as big wild swings kept the stock volatile over the period of months. At current juncture, fresh breakout in prices have been witnessed, after a period of prolong consolidation phase. The sudden spike in volumes, alongside suggests strength in current move. Additionally, positive divergences on secondary oscillators on daily and weekly charts also supports for next upswing into the prices. Therefore, one can buy the stock in the range of 4900-4950 levels for the upside target of 5450-5500 levels with SL below 4550 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
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Indian markets remained volatile in the week gone by and ended the week almost near an unchanged line as Nifty closed above 18500 levels, whereas Bank Nifty closed around 44000. On weekly basis, Auto, FMCG & Pharma sector performed well whereas profit booking was seen in energy stocks. From the derivative front, highest call writing was observed at 18600 strike whereas on put side the highest open interest concentration is held at 18500 strike. In banknifty, highest call & put open interest concentration is at 44000. The implied volatility (IV) of calls closed at 9.99%, while that for put options closed at 10.59%. The Nifty VIX for the week closed at 11.60%. The PCR OI for the week closed at 1.38. Technically, both the indices are struggling to give a fresh move above their key resistance levels. However, the bias is still in favor of bulls as fresh round of buying gets emerge from lower levels. We recommend traders to keep focus on stock specific action for upcoming week as Index is likely to remain on a volatile path, as we expect some wild intraday moves in upcoming sessions. On downside 18400-18350 zone can provide some support to Nifty while 18650-18700 zone can add some supply to keep a cap on any sharp upside.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric June futures are likely to trade on positive bias on supply concerns. Supplies are below normal due to lower production in major producing states. Arrivals are yet to pick up in Maharashtra that keeping prices up. Shortage of premium quality of produce is prompting millers and stockists to buy good quality at higher cost. About 114.5 thousand tonnes has been arrived so far since Apr’23 to so far in May’23 at major APMC mandies as compared to 134.1 thousand tonnes of previous year. However, arrivals surged up in second half of May’23 due to fair realization but quality of the crop is questionable. Reports of crop damage are coming out due to unseasonal rainfall in Maharashtra that raised the worries over actual production. Production is expected to be revised down in Maharashtra wherein forecast of bleak monsoon has raised concerns over upcoming crop as well. Acreages under turmeric may shift to other kharif crops that will lead to fall in production. However, heavy stocks will cap the excessive gains. Turmeric June contract is expected to trade in range of 7800-8350 levels.
Jeera NCDEX June futures are expected to remain down in upcoming week due to subdued demand in local market. Surging imports at cheaper rate and increased seasonal supply is likely to weigh on prices. Due to higher prices, export dropped from India; India exported about 176 thousand tonnes in FY 2022-23 as compared to 204 thousand tonnes of previous year. However, government official data showed that export increased in Mar’23 due to festive buying amid prevailing crop concerns. Major trend is still bullish due to tighter carryover stocks and below normal arrivals in the market. Quality of the new crop is also questionable after recent rainfall in Rajasthan and Gujarat. Jeera June futures are expected to trade in range of 41000-47500 levels.
Dhaniya NCDEX June prices are likely to remain under pressure due to adequate supplies in the market. Surging arrival pressure at major trading centers is likely to keep prices down. Overall dhnaiya production is estimated to increase by 8%- 10% across India that will keep supplies adequate in coming weeks. However, losses are likely to be limited as prices are ruling near to 2 years low that will spark fresh buying in the market. Short covering can be seen at futures platform any time so cautious selling is recommended. Dhaniya NCDEX June futures are likely to trade in range of 6000-6600 levels.
Gold prices experienced a notable surge, recording their biggest weekly gain in nearly two months. The combination of a weaker dollar and growing expectations of a pause in the Federal Reserve's tightening campaign contributed to the renewed appeal of bullion. In the week by, gold prices rose by 1.7%, marking the strongest performance since the week ending April 7. The sentiment in the gold market remains positive, and there is potential for further upward movement as the Federal Reserve is anticipated to maintain interest rates unchanged in June. Philadelphia Fed President Patrick Harker expressed his view that interest rates should not be raised at the upcoming meeting, despite the persistently slow pace of inflation decline. Market probabilities now indicate a 73.7% likelihood of rates remaining unchanged. The decline in the dollar index to a one-week low further supported gold prices, as it made the precious metal more affordable for buyers holding other currencies. Additionally, the successful passage of bipartisan legislation by the U.S. Senate, lifting the government's debt ceiling, averted the risk of a historic default. Gold, as a non-yielding asset, typically loses appeal when interest rates rise. However, the current dynamics in the gold market, including a softer dollar and hopes for a pause in Fed tightening, have fuelled optimism among investors, contributing to the recent surge in gold prices. Comex gold is encountering robust support around the $1930 mark, while facing resistance near the $2000 level. Similarly, silver is finding support around $22.650 and encountering resistance near $24.700. Ahead in the week, MCX Gold may trade in the range of 59000-61500 levels whereas MCX Silver may trade in the range of 70000-76000 levels.
Crude oil prices experienced significant volatility throughout the week due to concerns over the U.S. debt ceiling and uncertainty surrounding the OPEC+ meeting. Prices initially declined amid worries about the debt ceiling pact and mixed messages from major producers. However, after the U.S. House of Representatives passed the Debt Ceiling bill, prices rebounded from their lows. Despite the rebound, crude oil prices still recorded negative returns on a weekon- week basis. The market remains cautious as uncertainties persist regarding supply dynamics and the outcome of the OPEC+ meeting. Traders and investors will closely monitor developments in Congress and the decisions made by major oil producers to assess the future direction of crude oil prices. The market's focus has also shifted to a June 4 meeting of the Organization of the Petroleum Exporting Countries and allies including Russia, collectively called OPEC+. U.S. crude oil stockpiles experienced an unexpected increase last week. This was driven by a surge in imports and a decline in strategic reserves, which reached their lowest level since September 1983, according to data from the Energy Information Administration. Ahead in the week, prices may continue to witness both side movements and trade in the wide range of 5500-6100. Natural gas prices witnessed a bearish rally, due to warmer weather in the Northeast, resulting in reduced heating demand. US natural gas inventories rose by 110 Bcf, the largest weekly increase since January 2023, surprising analysts. Ahead in the week, prices may post some recovery from the lower levels but main trend remains on the bearish side and the possible trading range would be 160-185 levels.
Base metals may witness lower lever buying as investors are encouraged due to the passing of the U.S. debt ceiling bill. The U.S. Senate passed the bipartisan legislation backed by President Joe Biden that lifts the government's $31.4 trillion debt ceiling. However, demand concerns and a gloomy global economic outlook may offset optimism from the U.S. debt ceiling deal. The counter is already facing downside pressure stemming from recession risks, a lack of solid demand growth in top consumer China, as well as rising domestic supply on the back of ample raw materials. Contracting manufacturing activity and slumping industrial profits in China have turned investors bearish. Copper may trade in the range of 700-735 levels. Copper prices are likely to continue to be dictated by the pace of China's economic recovery as well as the Fed’s interest rate hiking path. Global copper prices are set to fall to $7,000 per tonne in the second half of this year, Chinese research firm Antaike predicted, as heightened risks of recession and a lack of solid demand growth in top consumer China weighed. Zinc can trade in range of 200-220. The total LME inventories of zinc are at a oneyear peak to 87,500 tonnes, the strongest level since May 2022, indicating surpluses of the metal used to galvanise steel. Lead can move in the range of 177-186 levels. Aluminum may trade in the range of 204-215 levels. Steel long (June) is likely to trade in the range of 45000-47000 levels with bearish bias on NCDEX . The steel prices are set to bend under the combined weight of a slowdown in global demand, influx of cheap imports from far-eastern Asia and Russia.
Cotton prices are likely to keep its firmness intact due to reduced supplies. Growing worries over upcoming crop numbers due to bleak monsoon prospects in year 2023 will support firmness in prices. Sowing acreages has been far behind to the target in Punjab due to weather concerns that will lead to fall in production in upcoming season. Cotton Association of India (CAI) lowered its cotton crop estimate by 465,000 bales for the 2022-23 season to 29.8 million bales as production is expected to decline in Maharashtra, Telangana, Tamil Nadu and Odisha. The latest estimate of cotton crop is the lowest since 2008-09 season which was 29.0 million bales. Cotton is likely to trade in range of 56500 -60000 levels. Similarly, Kapas Apr’24 futures are likely to trade in range of 1500-1570 levels.
Guar seed June futures are likely to trade down due to subdued demand. Heavy stocks of guar seed and bleak demand prospects of gum in wake of weakness in crude oil prices is likely to put pressure on prices. However, rising possibilities of drier spell of monsoon in year 2023 due to developing chance of an El Niño weather phenomenon will cap the excessive losses. Drier monsoon is likely to directly affect the sowing progress and yield of guar seed in year 2023. Guar seed prices will trade in range of 5200-5600/5800 in near term wherein Guar gum prices are likely to trade in range of 9500-11000 levels.
Mentha oil June contract is likely to trade sideways to higher with shrinking supplies in the market. However, gains will be limited due to reports of tumbling export of menthol from India. India exported about 12.7 thousand tonnes of menthol during FY 2022-23 as compared to 19.7 thousand tonnes of previous year down by 36% Y-o-Y. Improved sowing number will also weigh on prices. Mentha oil prices are likely to trade in range of 945-1000 levels.
Castor seed prices are likely to remain under pressure due to adequate supplies. Higher production and limited export demand of castor oil will cap the major upside movement. Overall Production is estimated at 18.82 lakh tonnes in year 2023 higher by 16% Y-o-Y. Castor seed June prices are likely to trade in range of 5350-5900 levels.
It closed at Rs. 715.90 on 01st Jun 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 720.11. On the daily chart, the commodity has Relative Strength Index (14-day) value of 56.074. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 715 for a target of Rs. 738 with the stop loss of 704
It closed at Rs. 208.50 on 01st Jun 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 207.91. On the daily chart, the commodity has Relative Strength Index (14-day) value of 64.499. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 208 for a target of Rs. 216 with the stop loss of 203.
It closed at Rs. 8030.00 on 01st Jun 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 8129.54. On the daily chart, the commodity has Relative Strength Index (14-day) value of 37.651. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 8150 for a target of Rs. 7600 with the stop loss of 8420.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
CRB slipped further on rise in dollar index. A stronger dollar makes oil more expensive for buyers holding other currencies. The greenback still remained close to 10-week highs hit in May, buoyed by the prospect of higher-for-longer U.S. rates. Gold saw see-saw movements and finally closed in green. Buying returned in bullion counter after a three week fall. Gold extended a recovery from two-month lows amid resurgent bets that the Federal Reserve will hold interest rates steady in June, while a bill to raise the U.S. debt ceiling drew closer towards passing after being approved by the House of Representatives. Rising interest rates push up the opportunity cost of holding non-yielding assets such as gold, weighing on investor demand. Energy counter surrendered its previous gain. Oil prices settled lower on Wednesday, pressured by a stronger U.S. dollar and weak data from top oil importer China that Fed demand fears. Chinese data showed manufacturing activity contracted faster than expected in May, as weakening demand cut the official manufacturing purchasing managers' index (PMI) down to 48.8 from 49.2 in April, lagging a forecast of 49.4.
Base metals moved in different directions. Zinc and lead prices moved down whereas aluminium was in range. Copper prices rebound marginally. Recent data showed that a post-reopening economic recovery in China was running out of steam, while manufacturing activity in the U.S. and euro zone was also slowing substantially. This weighed heavily on industrial metal prices, with copper sinking to a near seven-month low in May, however it recovered from the low. Zinc inventories in London Metal Exchange-registered warehouses nearly doubled since last week to a one-year peak after a shipment arrived in Malaysia, data published by the exchange showed on Wednesday. Steady arrivals of metal into storage facilities indicate there are surpluses of the metal used to galvanise steel due rising supply and weak demand from the construction sector.
On lack of export demand, castor prices slashed further. Cotton oil seed cake and cotton candy prices recovered from the three week low on growing worries on crop numbers on rising fear of occurrence of El Nino. Guar counter was unable to move up and closed the week on bearish note on fall in crude oil prices, sluggish export demand amid ample stocks with farmers. In spices, buying returned in jeera whereas dhaniya and turmeric remained traded weak.
As per third Advance Estimates for 2022-23, the production of Foodgrains in the country is estimated at record 3305.34 lakh tonnes which is higher by 149.18 lakh tonnes than the production of foodgrain during 2021-22. Record output is also estimated for each individual crop such as Rice, Wheat, Maize, Soybean, Rapeseed & Mustard and Sugarcane during the 2022-23, agriculture ministry said in a statement. The Ministry had set a target of achieving 328 mt foodgrain in this agricultural year.
The record production clearly outlines the tireless hard work & courage of farmers against rising cost of input and went out for higher sowing in the kharif and Rabi season as well as, research by agricultural scientists, and farmer-friendly policies of the Central Government. The government had gone for taking revolutionary steps to strengthen agriculture infrastructure and economic condition of the farmers.
As per Third Advance Estimates, the estimated production of major crops for 2022-23 is as under:
With record production continuously in the last 8 years, India has comfortable stocks of foodgrain that are not only providing confidence against the current global food crisis but the world is also looking towards India to fight the crisis. Though India has banned the export of wheat to avoid the hoarding of food grain by many countries, however, the government has promised the many countries to provide enough foodgrain on basis of government to government deals.
The Indian Rupee strengthened to a more than twoweek high this week and even recorded its highest intraday gains in two months on Thursday. This surge came after the market's expectations of a Federal Reserve rate hike during the June 13-14 Federal Open Market Committee (FOMC) meeting shifted from a hike to a pause. As a result, the modest upside momentum in the rupee is expected to continue for next week. However, we can expect the downside cap for USDINR around 82.00 as well. Parallelly the US dollar faced its largest daily loss in nearly a month against a basket of currencies notably against pound. This decline was influenced by the release of US manufacturing data and statements from Federal Reserve officials, which reinforced the belief that the central bank is likely to forgo an interest rate hike in its upcoming meeting. This decline came after investors scaled back their expectations of a rate increase this month. Going forward, we think the upside in euro and pound may get a cap as shifts in rate expectations cam turn around quickly to favor dollar over major currencies as US economic data still has scope to outperform the Eurozone and the UK on a relative basis.
USDINR (JUN)is trading between its major Exponential Moving Average indicating sideways trends for short term view. The Pair has major support placed around 81.70 levels while on higher side resistance is seen around 82.90 levels. The 21-day Exponential Moving Average of the USD/INR is currently around 82.50 Levels. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 47.72.
One can sell near 82.50 for the target of 81.70 with the stop loss of 82.90.
GBPINR (JUN)is trading above its major Exponential Moving Average indicating upwards trends for short term view. The pair has major support placed around 102.50 levels while on higher side resistance is seen around 104.00 levels. The 21-day Exponential Moving Average of the GBP/INR is currently around 102.64. On the daily chart, the GBP/INR has Relative Strength Index (14-day) value of 53.63.
One can buy near 103.00 for the target of 104.00 with the stop loss of 102.50.
EURINR (JUN) is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 88.18 levels while on higher side resistance is seen around 89.50 levels. The 21-day Exponential Moving Average of the EUR/INR is currently around 88.90. On the daily chart, the EUR/INR has Relative Strength Index (14-day) value of 41.35.
One can buy near 88.60 for the target of 89.60 with the stop loss of 88.10.
JPYINR (JUN) is trading below its major Exponential Moving Average indicating downwards trends for short term view. The pair has major support placed around 58.80 levels while on higher side resistance is seen around 60.40 levels. The 21-day Exponential Moving Average of the JPY/INR is currently around 60.06. On the daily chart, the JPY/INR has Relative Strength Index (14-day) value of 40.15.
One can sell near 59.80 for the target of 58.80 with the stop loss of 60.30.
The Rs.607-crore initial public offering of IKIO Lighting will open for public subscription on June 6. The company has fixed the price band at Rs.270 to Rs.285 per share. The issue will close on June 8. The public issue of IKIO, a LED lighting manufacturer, comprises a fresh issue of equity shares worth Rs.350 crore and an offer-for-sale (OFS) of up to 90 lakh shares by the existing shareholders. Investors can bid for a minimum of 52 equity shares and in multiples of 52 thereafter. Under the OFS, promoters Hardeep Singh will offload 60 lakh shares, and Surmeet Kaur will sell about 30 lakh shares. For the nine months ended December 31, 2022, the company's revenue from operations stood at Rs.328.63 crore, and profit after tax stood at Rs.51.35 crore. The company posted a revenue growth of 55.47% to Rs.331.84 crore in FY22. Its profit after tax has jumped 75.37% from Rs.28.81 crore in FY21 to Rs.50.52 crore in FY22. Some of its peers include Dixon Technologies, Amber Enterprises, Syrma SGS Technology, and Elin Electronics. Motilal Oswal Investment Advisors is the sole bookrunning lead manager. The company had filed its draft papers in October last year and received regulatory approval in December.
Nexus Select Trust was listed with a decent premium of 3 percent over the issue price of Rs 100 per unit on the National Stock Exchange on May 19. This is the fourth REIT listing on the bourses since 2019. The initial public offering of India’s leading consumption center platform with 17 best-in-class urban consumption centers across 14 cities had received a healthy response from investors last week subscribing 5.45 times as the portion set aside for institutional investors was subscribed 4.81 times and that of non-institutional investors 6.23 times during May 9-11. Nexus Select Trust, India's first retail assets-focused REIT sponsored by global investment giant Blackstone, has raised Rs 3,200 crore via public issue, of which fresh issue proceeds of Rs 1,400 crore will be utilised for repaying debts of the asset SPVs and the investment entity; acquisition of stake and redemption of debt securities in certain asset SPVs; and general corporate purposes. The rest of Rs 1,800 crore was an offer for sale issued by unitholders. The price band for the offer was Rs 95-100 per unit. Nexus has a well-diversified tenant base of 1,044 domestic and international brands with 2,893 stores as of December 2022 and is also well-diversified across cities with no single asset and tenant contributing more than 18.3 percent and 2.8 percent of total gross rentals for December 2022.
Auto-ancillaries company Happy Forgings Limited is reportedly planning to launch an IPO to list its shares on the Indian bourses and raise around Rs 1,000 to Rs 1,200 crores. Happy Forgings Limited is an auto component manufacturer headquartered in Ludhiana. The company was incorporated in 1979 and is one of the largest full services suppliers of forged engine and driveline components in India.
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ITI Mutual Fund has announced the launch of ITI Focused Equity Fund. The New Fund Offer or NFO is currently open for subscription and it will close on 12 June. ITI Focused Equity Fund will invest in a highly concentrated portfolio of 30 companies across market capitalisations. The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter. The fund will be jointly managed by Dhimant Shah and Rohan Korde. ITI Focused Equity Fund will be benchmarked against Nifty 500 Total Return Index. The fund will invest predominantly in equity and equity-related securities of up to 30 companies across various market capitalisation. The NFO is suitable for those investors who are looking to invest with a long-term horizon.
Mirae Asset Mutual Fund has announced the launch of Mirae Asset Silver ETF, an open-ended scheme replicating/tracking Domestic Price of Silver. The New Fund Offer (NFO) of the scheme is open and it will close for subscription on June 6. Scheme re-opens for continuous Sale & Repurchase on June 12. Mirae Asset Silver ETF will be managed by Ritesh Patel. During the NFO, an investor can invest a minimum of Rs 5,000 and in multiples of Re 1 thereafter. To counter adverse movements in a particular asset or asset classes, investors can achieve effective diversification in their portfolios by incorporating alternative investments such as commodities. In India, investing in gold and silver ETFs are two most prominent investment strategies to gain exposure in commodity segment without the need to trade commodities or derivatives, the fund house said.
Kotak Mahindra Mutual Fund has launched Kotak NIFTY 200 Momentum 30 Index Fund, an open-ended scheme replicating/ tracking the Nifty 200 Momentum 30 Index. The new fund offer of the scheme is open for subscription and will close on June 8. The scheme will open for sale and repurchase within five business days from the date of allotment. The performance of the scheme will be benchmarked against the NIFTY 200 Momentum 30 Index (Total Return Index). The scheme will be managed by Devender Singhal, Satish Dondapati, and Abhishek Bisen. The investment objective of the scheme is to provide returns that, before expenses, corresponding to the total returns of the securities as represented by the underlying index, subject to tracking error. To achieve the investment objective, the scheme will follow a passive investment strategy with investments in stocks in the same proportion as in the Nifty 200 Momentum 30 Index. The investment strategy would revolve around reducing the tracking error to the least possible through rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections/redemptions from the scheme. The minimum subscription amount is Rs 5,000 and in multiples of Rs 1 thereafter. The minimum amount for monthly and quarterly SIP is Rs 500 (Subject to a minimum of 10 SIP installments of Rs 500 each). The scheme will offer a regular plan and direct plan – with growth and IDCW options.
UTI Mutual Fund has launched UTI S&P BSE Housing Index Fund, an open-ended scheme replicating/tracking S&P BSE Housing Total Return Index (TRI). The new fund offer of the scheme is open for subscription and will close on June 5. The scheme will open for purchase and redemption within five business days from the date of allotment. The performance of the scheme will be benchmarked against S&P BSE Housing TRI. The scheme will be managed by Sharwan Kumar Goyal and Ayush Jain. The investment objective of the scheme is to provide returns that, before expenses, correspond to the total return of the securities as represented by the underlying index, subject to tracking error. The minimum subscription amount is Rs 5,000 and in multiples of Rs 1 thereafter. The minimum SIP amount for daily, weekly, and monthly SIP is Rs 500 and in multiples of Rs 1 thereafter. The minimum SIP amount for quarterly SIP is Rs 1,500 and in multiples of Rs 1 thereafter. The scheme will offer a regular plan and direct plan – with growth and IDCW options. The scheme will invest 95-100% in securities covered by the S&P BSE Housing Index and 0-5% in debt/ money market instruments including tri-party repo on government securities or treasury bills and units of liquid mutual funds.
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