In the week gone by, global stock market witnessed a volatile move after evidence of a cooling economy exacerbated worries that the Federal Reserve's campaign to rein in decades-high inflation may cause a deep downturn. Actually, the recent US data revealed a softening in the labour market and declining factory orders has increased the likelihood of a pause in rate hikes by the Federal Reserve. Back in Europe, the Eurozone economy expanded at its fastest pace since May in March, according to final PMI estimates from S&P Global, but this growth is not expected to last, given the tightening of credit conditions across the region that started well before last month’s banking issues. Meanwhile, Japanese manufacturers' sentiment soured in the first quarter to its worst level in more than two years, eclipsing an uptick in service-sector mood, a central bank survey showed, reinforcing views a strong post- COVID economic recovery is some time away.
Back at home, the domestic market marched northward unaffected by the weaker global peers, thanks to strong banks and NBFCs quarterly numbers and the windfall tax cut. Sectors such as capital goods, FMCG and information technology shares supported the sentiments of the investors. In the recent meeting, RBI kept the repo rate unchanged at 6.5 per cent even as inflation is trending above its tolerance level. The rate increase has been paused after six consecutive rate hikes aggregating to 250 basis points since May 2022. The Asian Development Bank (ADB) said that India’s economy would grow at a slower-than-expected 6.4% this year.Meanwhile, India's service sector activity continued to expand sharply in March despite easing from last month amid favorable demand conditions and new business gains along with easing inflationary pressures. The services Purchasing Managers' Index dropped to 57.8 in March from 59.4 in February. While the purchasing managers' survey from S&P Global, India's manufacturing activity expanded at the fastest pace in three months amid faster rises in new orders and output. The manufacturing Purchasing Managers' Index, or PMI, rose to 56.4 in March from 55.3 in February. With all the major events behind us, the focus would return to earnings and upcoming macroeconomic data.4
On the commodity market front, CRB continued to move up; it closed near 300 mark. INR appreciated for third week whereas dollar index continued its southward journey for sixth week. Gold and silver surprised the market with their mighty upside move. In four week time span, COMEX and MCX silver moved up from the low $20.65 and Rs 63348 to $25.32 and 75175 respectively. Gold and silver can trade in a range of 58500- 62500 and 72000-78000 respectively. Crude oil prices jumped after surprise production cut by OPEC+. OPEC had described the cuts as precautionary; a weakening economy and rising oil stockpiles supported the decision. Crude oil can trade in a range of 6350-7050. Base metals can see further fall on negative data from both US and China. Westpac Consumer Confidence Index of Australia, Inflation Rate and New Yuan Loans of China, Core Inflation Rate, FOMC Minutes, PPI and Inflation Rate of US, BoC Interest Rate Decision, Employment Change and Unemployment Rate of Australia, GDP of UK etc are many triggers scheduled this week which can influence commodities prices.
SMC Global Securities Ltd. (hereinafter referred to as “SMC”) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited and its associate is member of MCX stock Exchange Limited. It is also registered as a Depository Participant with CDSL and NSDL. Its associates merchant banker and Portfolio Manager are registered with SEBI and NBFC registered with RBI. It also has registration with AMFI as a Mutual Fund Distributor.
SMC is a SEBIregistered Research Analyst having registration number INH100001849. SMC or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing /dealing in securities market.
SMC or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. SMC or its associates and relatives does not have any material conflict of interest. SMC or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. The subject company has not been a client of SMC during the past twelve months. SMC or its associates has not received any compensation or other benefits from the company covered by analyst or third party in connection with the research report. The Analyst has not served as an officer, director or employee of company covered by Analyst and SMC has not been engaged in market making activity of the company covered by Analyst.
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SAFE HARBOR STATEMENT: Some forward statements on projections, estimates, expectations, outlook etc are included in this update to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially form those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, Impact of competing products and their pricing, product demand and supply constraints. Investors are advised to consult their certified financial advisors before making any investments to meet their financial goals.
The company has strong position with diversified product portfolio catering a full suite of building solutions. Huge capacity addition plan is reinforcing its position as the third largest cement company in the world, outside of China and the largest in India by far. Moreover, given the government's focus on infrastructure growth and the consequent rising demand for urban housing, the cement sector is poised for strong growth in the coming years. Thus, it is expected that the stock will see a price target of Rs.8905 in 8 to 10 months’ time frame on target P/BV of 4.3x and FY24 BVPS of Rs.2070.86.
Strong balance sheet, low debt, healthy order book and robust execution would give strong base for the growth of the company. A higher capital expenditure on roads and railways would benefit to company in near term. Moreover, the government’s focus on social and urban infrastructure would result healthy order pipeline for the company. Thus, it is expected that the stock will see a price target of Rs.293 in 8 to 10 months time frame on a two year average P/BVx of 0.84x and FY24 BVPS of Rs.348.55.
The stock closed at Rs 2729.30 on 06th April, 2023. It made a 52-week low of Rs 2026 on 17th June, 2022 and a 52-week high of Rs.2780 on 24th January, 2023. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 2549.
After testing its 52 week high of 2780, stock witnessed a correction phase, over the months, and seen sliding back towards 2550 levels. The correction in prices was observed with formation of lower top pattern on daily charts. However stock managed to take support at its 200 days exponential moving average on daily charts, and once again caught an upside momentum. Last week, stock has given a breakout above the falling trend line of downward sloping channel. The rising volumes along with rising price action suggests next up swing into the stock. Therefore, one can buy stock in the range of 2700-2730 levels for the upside target of 2950-3000 levels with SL below 2550 levels.
The stock closed at Rs 382.90 on 06th April, 2023. It made a 52-week low at Rs 294.70 on 20th June, 2022 and a 52-week high of Rs.418.50 on 05th Dec, 2022. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 367
From, nearly last three months, stock has been consolidating in broader range of 340-375 zone, as prices can be seen fluctuating around its 200 days exponential moving average on daily charts. Last week fresh breakout in prices, has been observed after a prolong consolidation phase. The sudden spike in average volumes along with positive divergences on secondary oscillators, with rise in price, points towards more upside in coming sessions. Therefore, one can buy the stock in the range of 375-380 levels for the upside target of 425- 430 levels with SL below 345 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
Broader indices bounced back and closed in green for the second consecutive week. Nifty and Bank Nifty both the indices ended the week with gains of more than 1% and are trading well above their rollover levels. Buying interest was seen in infra and realty stocks whereas IT and Oil & gas stock faced pressure in the week gone by. From the domestic front, there is a pause in a rate hike by the RBI as announced last week. The Implied volatility (IV) of calls closed at 11.09% while that for put options closed at 12.35%. The Nifty VIX for the week closed at 12.41%. PCR OI for the week closed at 1.23 higher than the previous week indicates more put writing than call. Technically both the indices are trading above its 200 exponential moving average on daily interval, and also above its short term 50 period exponential moving average. For upcoming week, we keep our stance, bullish for the Nifty and expect markets to remain volatile as well. On lower side, 17200-17300 would act as a major support for the index, below which we could witness further downside towards its next support of 17000.
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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 NCDEX Apr futures is likely to trade on positive bias due to active buying in local market. Arrivals are in full swing in Maharashtra and Telangana but reported lower as compared to last year. About 10.5 thousand tonnes of arrivals were reported in first week of Apr’23 as compared to 20 thousand tonnes of previous year for corresponding period. In wake of bleak production outlook, stockists and exporters are showing good interest at prevailing levels and filling up their inventory. Demand from spice millers have increased with improved export enquires for premium quality of turmeric that will support the firmness in prices. However, gains are likely to be limited as arrivals are expected to increase in Apr that will cap the excessive gains in prices. Turmeric Apr contract is expected to find support near 6700 and will move gradually towards 7400 in near term.
Jeera NCDEX Apr futures are likely to trade higher due to disruption in harvesting activities in Gujarat and Rajasthan caused by unseasonal rainfall. Unseasonal rainfall led to delay in harvesting activities and also hampered the yield. Reports of crop damage in Gujarat and Rajasthan due to unseasonal rainfall will lead to downward revision in production numbers of Jeera. Overall production in Gujarat is likely to be down due to lower acreages and yield losses. Seasonal export demand of jeera is expected to pick up with increased supply of good quality of produce in the market. Federation of Indian Spices Stakeholder has projected total production is estimated to increase by 28% Y-o-Y in year 2023 but it may fall due to crop damage in major growing states. Prices are likely to hold support near 33000 and will move towards 39000.
Dhaniya NCDEX Apr prices are likely to trade on mixed to higher due to lower arrivals in major growing states. Harvesting activities has delayed due to unseasonal rainfall and hailstorm in northern part of India. However, overall production of Dhaniya is estimated to be higher by 18%-20% that will cap the excessive gains in prices in near future. Demand has been subdued as major buyers and spices millers are avoiding bulk buying with rising supplies of new arrivals in major mandies. Dhaniya NCDEX Apr Prices are likely to trade in range of 6650- 7200 levels.
Gold prices posted positive returns throughout the week as the recent U.S. data fanned fears of a slowdown and spurred bets the Federal Reserve may ease up on rate hikes. Gold raced past the key $2000 levels after sharp drop in U.S. Job opening in February, adding on to gains from earlier after an OPECled spike in oil triggered worries of another run higher in inflation. Softer than expected growth in private payrolls in March also exacerbated worries over the economic toll from the Fed’s rapid rate hikes. Bullion found additional support from a subdued dollar overall, and a retreat in U.S. yields. Traders now see a 53.80% chance of U.S. rate hikes pausing in May, brightening the outlook for zero-yield gold and its status as the preferred inflation hedge. Gold silver ratio reads above 81 which means silver is still undervalued which mean that silver is undervalued relative to Gold. Most of the time, the Gold/Silver Ratio has been in a range between 45 and 85. Although we have seen some improvement in the Ratio compared to previous week. The gold trade is getting a bit overcrowded but the macro backdrop still strongly remains firmly in its favour. On the charts, COMEX Gold prices are facing resistance near $2050, a successful break above the level will push the prices to $2100 whereas failed to sustain above the levels will reverse the trend to bearish and take the rally to $1980. Silver on COMEX have given breakout and prices are now approaching $26.900 and the short term support is holds near $23.40. Ahead in the week gold prices on MCX may trade in the wider range of 57800-62500 and silver may trade in the range of 70000-78000.
Crude oil prices posted positive returns as drawdown in U.S. inventories helped oil prices continue to rally prompted by Saudi led production cuts. U.S. crude stockpiles slumped by 4.3 million barrels, marking a second week of sizable declines for U.S. oil inventories, a sign of strengthening demand, just as a group of OPEC+ members said they would slash output by over 1 million barrels a day. After touching 5 months highs oil prices slipped as the U.S. economic data hints the world’s largest economy is headed towards a recession. The U.S. services sector slowed more than expected in March as demand cooled, while a measure of prices paid by services businesses fell to the lowest in nearly three years, giving the Federal Reserve a boost in the fight against inflation. The U.S. dollar index rebounded from a recent two-monthlow. A stronger greenback could dent oil demand as crude becomes more expensive for holders of other currencies. Underpinning the market, Saudi Arabia, the world's top oil exporter, raised prices for its flagship crude for Asian buyers for a third straight month. Ahead in the week, prices may trade with in the wider range of 6100-7000. Natural gas prices stuck in the minor range of 172-182. Natgas weather said that national demand for natural gas will increase as colder temperatures track across the Great Lakes and Northeast into next week. Nat-gas prices have fallen sharply over the past three months and posted a 2-1/2 year nearest-futures low as normally mild weather across the northern hemisphere erodes heating demand for Natural Gas. Ahead in the week prices may witness some buying in the counter and the possible trading range would be 160-210.
\Base metals witnessed selling throughout the week as the U.S. economic data stoked concerns about global growth and metals demand. Stock markets slipped as evidence of a cooling labour market and low orders for U.S.-manufactured goods followed a surprise output target cut by OPEC+ over the weekend that pushed up oil prices, threatening a flare-up in inflation. Improving Chinese demand is likely to be countered by credit concerns in the U.S. and Europe, strong mine supply and ramping Chinese refined copper output. Meanwhile, satellite surveillance of metal processing plants showed that global copper smelting activity fell in March. Ahead in the week copper prices may continue to witness selling pressure and may take support near 750 and could face resistance near 790. Investor sentiment was also hampered by China's factory activity, which lost momentum in March amid still-weak export orders. Chile, the world's largest copper producer, posted its lowest production in six years. State-owned firm Codelco warned its output woes of 2022 will only get worse this year as it strives to revive its aging operations following years of under-investment. Traders were also watching for any possible further production disruptions in the south-western China's Yunnan province, where local aluminium producers have been asked to cut power usage due to tight hydro-power supply. Ahead in the week aluminium prices may trade in the range of 200-215. Lead prices may trade in the range of 175-186 levels. Zinc prices slipped to 5 months low amid decrease demand and increase in supply. The latest ISM manufacturing survey in the United States also revealed industrial activity slumped to its lowest in three years in March. Ahead in the week prices may trade in the range of 240-260 levels.
Cotton/Kapas prices are likely to trade sideways to down as some profit booking is likely to be seen in cotton and Kapas prices on recent highs. Cotton prices witnessed sharp gains last week tracking positive cues from global market. Arrivals has been higher in Mar’23 and expected to improve further as farmers are getting good realization on prices. Farmers and stockists have heavy stocks that will cap the major gains in cotton prices in coming days. Overall production has been higher by 5%-8% Y-o-Y wherein total arrivals has been down by more than 40% Y-o-Y that indicates there is huge stocks left with farmers. Despite an increase in production compared to last year, exports have been down due to uncompetitive Indian prices that will pull down the prices. Kapas Apr NCDEX prices are likely to trade in range of 1550-1650. MCX cotton is likely to trade in range of 60000-64000.
Cotton seed oil cake NCDEX Apr futures are likely to trade mixed to higher due limited availability in the market. Ginning activities has been down due to limited export demand of cotton that has impacted cotton seed production badly in year 2022-23. Availability of green fodder is likely to be dropped with rising temperature in northern part of India that led to rise in demand in cattle feed industry. Cotton seed oil cake prices are likely to trade in range of 2600- 3000.
Guar seed Apr futures are expected to trade higher due to improved buying activities after recent fall in prices. Milling demand of guar seed has increased that will keep prices elevated in near term. Forecast of above normal temperature and increased possibilities of bleak monsoon is likely to support firmness in prices. Milling demand of guar seed has been increased due to expected rise in crude oil production that has boosted the export prospects of gum. Guar seed prices will trade in range of 5600-6000 in near term wherein Guar gum prices are likely to trade in range of 11000-13500 levels.
Mentha oil Apr contract is likely to trade higher on weaker production outlook for upcoming season. Forecast of above normal temperature during Apr-May is likely to affect the sowing activities adversely that will support the firmness in prices. Prices are likely to hold support near 970 and will honor the resistance of 1035.
Castor seed Apr prices are expected to trade sideways to higher with improved buying activities in local market. Increased export enquires of castor oil and shrinking arrivals are likely to help prices to trade on positive note in coming days. Going forward, castor seed prices are likely to trade in range of 6000-6600.
It closed at Rs. 205.80 on 05th Apr 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 207.71. On the daily chart, the commodity has Relative Strength Index (14-day) value of 44.047. Based on both indicators, it is giving a sell signal.
One can sell near Rs. 208 for a target of Rs. 198 with the stop loss of 212.
It closed at Rs. 176.30 on 05th Apr 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 191.03. On the daily chart, the commodity has Relative Strength Index (14-day) value of 191.03. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 175 for a target of Rs. 210 with the stop loss of 158.
It closed at Rs. 7014.00 on 05th Apr 2023. The 18-day Exponential Moving Average of the commodity is currently at Rs 6989.88. On the daily chart, the commodity has Relative Strength Index (14-day) value of 52.085. Based on both indicators, it is giving a buy signal.
One can buy near Rs. 7000.00 for a target of Rs. 7500 with the stop loss of 6750.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
In the week gone by, CRB continued to move up; it closed near 300 mark. INR appreciated for third week whereas dollar index continued its southward journey for sixth week. Gold and silver surprised the market with their mighty upside move. In four week time span, COMEX and MCX silver moved up from the low $20.65 and Rs 63348 to $25.32 and 75175 respectively. MCX gold made new record high of 61399 whereas COMEX gold was few dollars shy away from the record high. The yellow metal also benefited from an increasing number of bets that the Fed will have limited economic headroom to keep raising interest rates. In the energy counter, crude oil surged on surprise cut by OPEC+ whereas natural gas prices were remain in the range. Brent crude and WTI had jumped by more than 6% after the Organization of the Petroleum Exporting Countries and allies including Russia, collectively known as OPEC+, rocked markets with an announcement of voluntary production cuts of 1.66 million barrels per day (bpd) from May until the end of 2023. The latest pledges bring the total volume of cuts by OPEC+ to 3.66 million bpd including a 2 million barrel cut last October, according to Reuters calculations, equal to about 3.7% of global demand. Natural gas was facing barricades amid a bleak demand outlook due to a delay in the summer season in North America. Natural gas prices in US fell to a 30-month low last week, dropping to $2 per mmBtu. And, while some producers have curbed drilling, the surplus isn’t going away anytime soon. Base metals traded in a range with downside bias on some negative data from US and China. U.S. manufacturing activity slumped to the lowest level in nearly three years in March and could decline further on tighter credit and higher borrowing costs. Weak manufacturing activity data from several countries, chiefly China, weighed heavily on demand prospects for the red metal.
In agri, castor was down for forth week due to adequate supplies in the market. Daily arrivals have increased wherein crushing demand is still poor due to sluggish export of castor oil. Cotton oil seed cake found stability above 2800. Cotton prices witnessed rebound from the lower levels. Guarseed and guargum noticed further upside due to improved buying activities after recent fall in prices. Milling demand of guar seed has also increased. It was a good week for spices in which all three saw upside. Jeera surpassed 36000. Reports of crop damage in Gujarat and Rajasthan due to unseasonal rainfall have sparked the fear of downward revision in crop number. Overall production in Gujarat is likely to be down due to lower acreages and yield losses. Seasonal export demand of jeera is expected to pick up with increased supply of good quality of produce in the market. Increased imports of menthol added pressure on the mentha prices despite the news of low production.
Despite persistent calls from the US to increase oil production, Saudi Arabia and other OPEC+ oil producers, in a surprise move, on April 2, announced voluntary oil output cuts of around 1.16 million barrels per day. The U.S. has argued that the world needs lower prices to support faltering economic growth and prevent Russian President Vladimir Putin from earning more revenue to fund the Ukraine war. The rising inflation is holding back the pace of global growth. The Saudi energy ministry said in a statement that the kingdom’s voluntary cut was a precautionary measure aimed at supporting the stability of the oil market. The latest voluntary cuts start from May and last until the end of the year.
Last October, OPEC+ had agreed to an output cut of 2 million bpd from November until the end of the year, a move that angered Washington as tighter supply boosts oil prices. Since those cuts, oil prices have trended down. Brent crude, a global benchmark, was trading around $80 a barrel at the end of last week, down from around $95 in early October, when the earlier cuts were agreed.
OPEC+ Production cut
The pledges bring the total volume of cuts by OPEC+ to 3.66 million bpd according to Reuters calculations, equal to 3.7% of global demand. Russia’s deputy prime minister also said Moscow would extend a voluntary cut of 500,000 barrels a day until the end of 2023. Moscow announced those cuts unilaterally in February following the introduction of Western price caps. Saudi Arabia, as OPEC's largest producer, announced the biggest cut at 500,000 barrels a day. This represents less than 5% of Saudi's average production of 11.5 million barrels a day in 2022. The UAE said it would cut production by 144,000 bpd, Kuwait announced a cut of 128,000 bpd while Iraq said it would cut output by 211,000 bpd and Oman announced a cut of 40,000 bpd. Algeria said it would cut its output by 48,000 bpd. Kazakhstan will also cut output by 78,000 bpd. Gabon would make a voluntary cut of 8,000 bpd but not all OPEC+ members were joining the move as some are already pumping well below agreed levels due to a lack of production capacity.
Ominous sign for global inflation
Even though the production cut is only about 1% of the roughly 100 million barrels of oil the world uses per day, the impact on prices could be big. The move has brought concerns around inflationary pressures back to the fore, adding to worries that higher prices and an aggressive monetary tightening by central banks could tip the global economy into recession. The latest reductions could lift oil prices by $10 per barrel, the investment firm Pickering Energy Partners said. Goldman Sachs lowered its end- 2023 production forecast for OPEC+ by 1.1 million bpd and raised their Brent price forecasts to $95 and $100 a barrel in 2023 and 2024, respectively, its analysts said in a note.
For oil-importing countries, particularly developing and undeveloped, rising oil prices can have severe knock-on financial effects.
This week, the Indian Rupee hit a high of 82.00 against the US Dollar, its highest level in over three weeks. The rise in the Rupee can be attributed to the broad weakness in the US Dollar index, which fell to a oneyear low after US economic data highlighted the need for the Federal Reserve to consider a pause in its rate hikes. However, the Rupee fell to as low as 82.44 per dollar following the surprise voluntary oil production cut of more than 1 million barrels per day by Saudi Arabia and other OPEC+ members. This cut caused oil prices to jump nearly 8% higher, and Saudi Arabia announced that it would reduce production cuts by 0.5 million barrels per day, equivalent to 5% of its production. This move made amid fears of weakening oil demand and was aimed at boosting oil prices. Despite the fear of weakening oil demand, the expectation of a Fed pause in its rate hike cycle has led to a rebound in the Rupee and other currencies against the US Dollar. However, supply-side inflation worries may lift expectations of global rate hikes, which could lead to another shift in the markets. In the coming days, we anticipate that the trend in the US Dollar will continue to stay lower. We predict that USDINR may edge below 81.70, while EURINR and GBPINR have scope to rally further.
USDINR (APR)is trading below its major Exponential Moving Average indicating downwards trends for short term view. The Pair has major support placed around 81.50 levels while on higher side resistance is seen around 82.60 levels. The 21-day Exponential Moving Average of the USD/INR is currently around 82.40 Levels. On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 39.60.
One can sell near 82.20 for the target of 81.50 with the stop loss of 82.60.
GBPINR (APR)is trading above its major Exponential Moving Average indicating upwards trends for short term view. The pair has major support placed around 100.90 levels while on higher side resistance is seen around 102.75 levels. The 21-day Exponential Moving Average of the GBP/INR is currently around 100.90. On the daily chart, the GBP/INR has Relative Strength Index (14-day) value of 64.12.
One can buy near 101.90 for the target of 102.90 with the stop loss of 101.40.
EURINR (APR) is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 88.40 levels while on higher side resistance is seen around 90.10 levels. The 21-day Exponential Moving Average of the EUR/INR is currently around 88.84. On the daily chart, the EUR/INR has Relative Strength Index (14-day) value of 57.97.
One can buy near 89.00 for the target of 90.00 with the stop loss of 88.50.
JPYINR (APR) is trading between its major Exponential Moving Average indicating sideways trends for short term view. The pair has major support placed around 61.75 levels while on higher side resistance is seen around 63.60 levels. The 21-day Exponential Moving Average of the JPY/INR is currently around 62.30. On the daily chart, the JPY/INR has Relative Strength Index (14-day) value of 53.05.
One can sell near 62.75 for the target of 61.75 with the stop loss of 63.25.
Four companies namely Zaggle Prepaid Ocean Services, Cyient DLM, Healthvista India, and Rashi Peripherals have received green signal from the capital markets regulator Securities and Exchange Board of India (SEBI) to go ahead with their IPO plans. All of them have received observations letter last week, with Zaggle and Cyient subsidiary getting on March 29, while the SEBI issued observations for Healthvista and Rashi Peripherals IPOs on March 31, according to an update on the market regulator's website as March 31. As per SEBI, the issuance of the observation letter for draft red herring prospectus for any IPO filed by the company implies the go-ahead from the market regulator for its proposed fund raising via IPO. B2B SaaS fintech company Zaggle Prepaid Ocean Services had filed its DRHP with the regulator in December 2022, to raise funds via initial public offering that comprises a fresh issuance of shares worth Rs 490 crore and an offer for sale of 1.05 crore equity shares by promoters and investors. Cyient DLM, the subsidiary of listed IT services firm Cyient, has filed draft papers in January this year, to raise Rs 740 crore via initial public offering. The IPO comprises only a fresh issue and there is not offer for sale portion, which means the entire funds, excluding issue expenses, will be utilised by the company. Information and communications technology products distributor Rashi Peripherals is planning to raise Rs 750 crore via public issue that comprises only fresh issue. The preliminary documents were filed by the company for IPO in January 2023. Healthvista is 100 percent owned by the public shareholders with Accel Growth III Holdings (Mauritius), Accel India III (Mauritius) being the biggest shareholders in the company with 14.92 percent and 10.51 percent stake respectively. The company will make use of fresh issue funds for working capital requirements of material subsidiary Medybiz Pharma, repaying debts, purchase of medical equipment, marketing and brand building activities, inorganic growth initiatives, and general corporate purposes.
Samhi Hotels Ltd has re-filed preliminary papers with capital markets regulator Sebi to raise funds through an IPO. The IPO comprises fresh issue of equity shares worth Rs 1,000 crore and an OFS of 90 lakh equity shares by existing shareholders, according to the DRHP. The OFS consists of sale of 42.36 lakh equity shares by Blue Chandra Pte Ltd, up to 24.78 lakh equity shares by Goldman Sachs Investments Holdings (Asia) Limited, up to 15.47 lakh equity shares by GTI Capital Alpha Pvt Ltd, and up to 7.39 lakh equity shares by International Finance Corporation. It is a partial exit by the existing shareholders to meet the listing regulations. JM Financial Ltd and Kotak Mahindra Capital Company Ltd are the book-running lead managers for the issue, and KFin Technologies Ltd is the registrar. Earlier, the company had filed its IPO papers with the Sebi in September 2019 and had obtained the markets regulator approval in November 2019, to float the initial share-sale but the company did not go ahead with the launch. The Gurugram-based company may consider a private placement of equity shares aggregating up to Rs 200 crore in pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.
Branded hotel ownership and asset management platform Samhi Hotels, which operates top global players like Marriott, Hyatt and IHG in India, has refiled its draft red herring prospectus (DRHP) with market regulator Sebi to unlock value via an initial public offer (IPO). Backed by the likes of Goldman Sachs, Equity International, GTI Capital and IFC, the firm founded by Ashish Jakhanwala and Manav Thadani in 2010, filed for an IPO in September 2019 but later dropped the plans due to market conditions and the impact of the Covid-19 pandemic. The company is now betting on the surge in domestic consumption and underlying GDP growth, due to which the Indian hospitality industry is seeing strong capacity utilisation in recent quarters of the Financial Year 2023. According to the re-filed DRHP, Samhi Hotels is looking to raise Rs 1,000 crore via the fresh issue route and the IPO will also consist of an OFS component of up to 9,00,00,000 equity shares with all the key investors looking to dilute stake. The net proceeds will be used for repayment of borrowings of the firm and its subsidiaries, payment of interest and general corporate purposes.
Canada's Fairfax and cricketer Virat Kohli-backed Go Digit General Insurance Ltd has refiled its draft papers with the SEBI to raise funds via an IPO. The market regulator had in February returned the draft papers. The DRHP was returned in terms of SEBI’s Issuance of Capital and Disclosure Requirements rules, which exempts rights granted under the ESOP to subsist at the time of filing the draft prospectus, but does not similarly exempt employee stock appreciation rights, the company has said. The company said it made amendments to ESOP, which had been approved by both the board and shareholders earlier in the month. The IPO comprises a fresh issue of Rs 1,250 crore and an offer for sale of up to 109.45 million shares by shareholders and promoters. The OFS consists of up to 109.43 million shares by Go Digit Infowarks Services Pvt Ltd. Kohli and his wife, actor Anushka Sharma, are among the investors in the firm. Proceeds from the fresh issue will be used to augment the company's capital base and maintenance of solvency levels and for general corporate purposes.
Updater Services Ltd has submitted a preliminary red herring prospectus to the Securities Exchange Board of India, with the aim of securing funds through an initial public offering. The IPO will include a fresh issue of Rs 400 crore and an offer for sale of up to 13.30 million shares by its current shareholders and promoters. The offer for sale will consist of up to 6.65 million shares by Tangi Facility Solutions Pvt Ltd, up to 1.33 million shares by India Business Excellence Fund - II, and up to 5.32 million shares by India Business Excellence Fund - IIA. The Rs 133 crore raised from the fresh issuance will be allocated towards debt repayment. As of December 2022, Updater Services Ltd had a consolidated borrowing of Rs 194.17 crore. Additionally, Rs 115 crore will be utilized to cover working capital requirements, as the company had a consolidated outstanding indebtedness of Rs 134.48 crore with respect to working capital facilities as of December 2022. Finally, the company intends to allocate Rs 80 crore of the fresh issue towards pursuing inorganic initiatives with a focus on expanding its operations. IIFL Securities, Motilal Oswal Investment Advisors and SBI Capital Markets are the lead managers to the issue.
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Indian mutual funds are seeing a spurt in inflows into debt-oriented schemes ahead of a change in the country's taxation process effective April 1. The country will tax investments in debt mutual funds as short-term capital gains, according to recent amendments to the finance bill - a move that is feared could take away some benefits that have so far made these investments popular.Investments made before March 31 would be taxed as per the current rules, leading to the rush.At least two mutual fund managers have estimated inflows of around 50 billion rupees ($608.35 million) in the system after government's decision to take away long term tax benefits for debt mutual funds.
The Securities & Exchange Board of India (SEBI), the financial market regulator, has announced a slew of measures to boost ESG factor-based investing in India through mutual funds. Mutual fund houses henceforth, can launch more than one scheme, the investment mandate of which is governed by ESG factors. ESG ― Environmental, Social and Governance ― factors-based investing is catching up in all parts of the world. Indian policymakers are also incentivising sustainable investing. In order to address the risk of mis-selling and greenwashing, to enhance stewardship reporting requirements, and to promote ESG investing SEBI has made some key announcements today, which are expected to impact mutual funds. As per extant rules of categorisation of mutual fund schemes, ESG schemes are considered thematic funds. And fund houses are allowed to launch only one ESG scheme. Now with the regulator allowing multiple schemes based on ESGrelated factors, investors may get more alternatives in this space that suit their requirements.There are 10 ESG mutual fund schemes that manage Rs 10,216 crore. Mirae Asset Nifty 100 ESG Sector Leaders ETF is the only passively-managed equity fund, the rest are actively-managed ESG schemes. ESG schemes gave 21.47 percent returns compared to 24.67 percent in the three years ended March 28, 2023, as per Value Research.
The Securities and Exchange Board of India extended the timeline for making nomination or opting out of nomination for mutual fund unit holders to September 30 instead of March 31. Last year, the markets regulator had asked all the existing individual unite holders holding mutual fund units either solely or jointly to provide nomination by March 31, failing which the folios would be frozen for debits. The regulator said based on representations received from the market participants it has decided to extend the timeline. Sebi has asked asset management companies to encourage unit holders to fulfil the requirement for nomination by sending a communication on fortnightly basis by way of emails and SMSs to all such who have not yet filed the nomination.
Capital markets regulator Sebi on Wednesday came out with a new time limit for disclosure of net asset value (NAV) of mutual fund schemes investing overseas due to differences in time zones and market hours. Under the rule, mutual funds are mandated to disclose the NAVs of all schemes within a given outer time limit.However, to address the difficulties being faced in calculation of NAV for schemes investing overseas due to differences in time zones and market hours, Sebi has made partial modification with regard to timelines for declaration of NAV depending on investment objective and asset allocation of schemes. The new timeline will come into force from July 1, 2023, the Securities and Exchange Board of India (Sebi) said in a circular.
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