Global stock markets moved higher last week amid strong earnings and continued Ggains in megacap technology stocks. The S&P 500 stock index reached a record high of 5,000 for the first time, as a narrow group of companies continued to drive the index higher. On the economic data front, the number of Americans filing new claims for unemployment benefits fell slightly more than expected last week, suggesting a strong job market. The Japanese stock market rose as investors bought stocks at low prices and betterthan-expected corporate earnings results. Beijing added about 1 trillion yuan into markets with the previously announced cut to banks' reserve requirement ratio taking effect. That has helped keep cash ample, with money markets showing few signs of stress. In another development, China's producer prices declined for a 16th month in January, with the producer price index declining 2.5% in January from a year earlier.
Back home, domestic markets moved higher with an end to Budget uncertainty and amid strong global cues. Despite premium valuations, confidence is upheld among investors due to the some major announcement in the interim budget and recent set of results aligning with forecasts. The Interim Budget highlighted fiscal consolidation, infrastructure, agriculture, green growth, and railways. The Fiscal Deficit target for FY25 exceeded expectations at 5.1 percent of the GDP, with the FY24 target revised down to 5.8 percent. The FY25 capex target was raised by 11.1 percent to Rs. 11.1 lakh crore, indicating a focus on robust capital expenditure. The complete budget is slated for July, post the formation of the new government after the Lok Sabha Elections. Now the focus of the market would shift towards earning season and global cues.
On the commodity market front, the CRB index faced challenges at 315 and saw a notable decline thereafter, largely due to the strengthening dollar index and rising US treasury yields. The appreciation of the Indian rupee somewhat constrained commodity movements. Gold saw gains from safe-haven buying amid mounting concerns about China's economic growth. However, silver lagged behind as it was influenced by base metals, which faced challenges stemming from negative developments in China. Expectations suggest limited room for growth for both gold and silver, with potential price ranges of 61800-64500 and 70000-74500 respectively. Crude oil is anticipated to continue its upward trajectory, potentially reaching 6420, while natural gas may find support in the range of 130-140 levels. A many economic data points including the ZEW Economic Sentiments Index of Germany and the Euro Area, UK and Australia's Unemployment Rates, Core Inflation Rates and Inflation Rates of the US, Canada, and UK, as well as GDP figures for the Euro Area, Mexico, and Japan, New Yuan Loans of China, Retail Sales, PPI, Building Permits, Michigan Consumer Sentiments, FOMC minutes from the US, and Manufacturing PMI of Germany, among others, are anticipated to have significant impacts on commodity prices.
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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 continues to enjoy leadership position in various segments. The capacity additional and new product launches augers well for the future growth. Its focus on consumer centricity, purposeful innovation, agility, and execution excellence indicates creation of sustained value for all stakeholders. Thus, it is expected that the stock will see a price target of Rs. 497 in 8 to 10 months' time frame on a one year average P/Ex of 28.03x and FY25 EPS of Rs.17.74.
The company has robust portfolio and the strong momentum in business, led by its three year strategy, especially in the healthcare and public sector pipeline, and promising accounts in manufacturing and retail. Demand for its services across service lines remains healthy, and has several large and integrated deals lined up for FY25. In terms of order book and revenue, the management of the company is seeing momentum building up in its US region together with UK public sector and AMEA region. Moreover, its margin improvement program continues to gain traction. Thus, it is expected that the stock will see a price target of Rs. 3323 in 8 to 10 months' time frame on expected P/Ex of 26x and FY25 EPS of Rs.127.79.
The stock closed at Rs.10732 on 09th February, 2024. It made a 52-week low of Rs.8130 on 20th March, 2023 and a 52-week high of Rs.10973.50 on 07th February, 2024. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs.9936.
After taking support at its 200 DEMA on daily interval, the stock has given a fresh break above the falling trend line of downward sloping channel in recent past. Since then, price has been consistently moving up and maintaining its bullish trend and can be seen trading in a rising channel with formation of higher high & high low pattern. At current juncture, some consolidation moves have been witnessed in the stock after a sharp run as range bound moves has kept the stock in a range of 10500-10900 levels. The positive divergences on secondary oscillators suggest next upswing into the stock. Therefore, one can buy the stock in the range of 10600-10700 levels for the upside target of 11650-11750 levels with SL below 10000 levels.
The stock closed at Rs.2628 on 09th February, 2024. It made a 52-week low at Rs.1592.35 on 29th March, 2023 and a 52-week high of Rs.2645 on 09th February 2024. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs. 2086.
In recent past stock has given a fresh move above its key resistance level of 2100 levels after a series of prolong consolidation phase. At current juncture, the stock can be seen rising consistently with formation of higher high pattern and maintaining its bullish run with prices holding well above its 200 DEMA on weekly interval as well. On daily charts stock has given a fresh breakout above the rectangle pattern as stock also marked its 52 week high on 09th February. The follow up buying is expected in a stock after a breakout, as price volume action suggests further bullish moves. Therefore, one can buy the stock in the range of 2600-2630 levels for the upside target of 3050-3100 levels with SL below 2300 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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Nifty ended the week nearly unchanged, experiencing slight losses, while Banknifty concluded with a 0.7% decrease, following the RBI's decision to maintain the repo rate. The market witnessed elevated intraday volatility last week, ultimately closing with modest losses. In the previous week, major gains were witnessed by PSU banks, Oil & Gas, and healthcare sectors, while profit-booking activities were noted in the private bank, FMCG and consumer durable counters. In the Nifty options segment, the highest call open interest is held at 22200 strike followed by 22200 strike whereas on the put side, the highest open interest is at the 21,500 and 21,000 strike. For Banknifty, the highest call open interest is at the 46,000 strike followed by 46,500, while the highest put open interest is at the 45,000 strike followed by 45,500. Implied volatility (IV) for Nifty's call options settled at 14.66%, while put options concluded at 15.03%. The India VIX, a key indicator of market volatility, concluded the week at 15.83%. The Put-Call Ratio Open Interest (PCR OI) stood at 1.20 for the week. From the technical front, the immediate support for Nifty lies in range of 21,500 - 21,400 zone while on higher side 22,000-22,200 zone would act as an immediate hurdle for the index.
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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 prices are expected to trade on weaker note due to muted domestic buying. Stockists remained away from bulk buying in anticipation of rise in fresh arrivals with advancement of harvesting activities in Telangana. Prices spread between spot prices at Nizamabad and futures prices have expanded again ruled near about 1500 points that will lead to fall in futures prices in terms of basis adjustment. Normal spread between spot and futures ruled in between 500-1000 points. However, arrivals pace is still slower as compared to last year as bout 2393 tonnes of arrivals touched the market in first 7 days of Feb'24 against the 5240 tonnes of turmeric of previous year. Arrivals are expected to improve further with advancement of harvesting activities. Losses in turmeric are likely to be limited due to tighter stocks in the market and expectation of rise in festive demand. Weaker production outlook is likely to cap the downfall in prices. Production is likely to be dropped by about 20% due to lower area under turmeric amid tumbling yield. Arrivals pace have been slower due to delayed harvesting activities in Telangana and Andhra Pradesh. Exports dropped in Nov as India exported only 8.58 thousand tonnes of turmeric in Nov'23 against the 12.39 thousand tonnes of previous year wherein total export during Apr-Nov'23 reported at 110.74 thousand tonnes as compared to 111.94 thousand tonnes of previous year down by 1% Y-o-Y. Exports are likely to increase as per export seasonality that will support firmness in prices further. Turmeric prices are expected to face resistance near 16300 in the near term wherein support is anticipated near 15000.
Jeera futures traded down with surging selling pressure in the market mounted with bumper crop expectation ahead. However, export enquires have improve on recent fall in prices that is likely to cap the further downfall in prices in near term. Exports have been subdued but expected to increase in wake of tighter global supplies ahead of Ramdan season. Lean arrival period in India as well as in global market is likely to support prices unless new crop touches the market in India during March. Harvesting activities is likely to pick up in March on wards that will lead to rise in supplies. Export are expected to increase I upcoming season with rise in domestic supplies. Jeera export may rose up to 2.2-2.5 lakh tonnes in marketing year 2024-25. India exported about 76.3 thousand tonnes of jeera during Apr'23-Nov'23 as compared to 115.75 thousand tonnes of previous year down by 34% Y-o-Y. Exports dropped to 6.2 thousand tonnes in Nov'23 against the 11.7 thousand tonnes of previous year. Gains are likely to be limited in the wake of higher production outlook. Production for the year 2024-25 is likely to be increased by around 30% year-on-year, with a substantial rise in cultivation area. Jeera prices are likely to trade in range of 26000-32000.
Dhaniya prices remained higher with rising export demand. Gains in coriander is likely to remain intact in wake of weaker production outlook in India. Improved festive buying and robust export is likely to keep prices firm in near term. India exported about 3.05 thousand tonnes of coriander in Nov'23 as compared to 2.4 tonnes of previous year whereas total exports during Apr'23-Nov'23 was reported at 73.18 thousand tonnes against the 21.3 thousand tonnes of previous year up by 243%Y-o-Y. Weaker production outlook will lure stockists for aggressive buying with every dips in prices. However, heavy stocks in the market will cap the excessive gains.Dhaniya prices are likely to trade in range of 7500-8200.
Gold prices couldn't sustain at higher levels as Chinese markets observed closure for the Lunar New Year break, while a stronger U.S. dollar offset safe-haven demand driven by tensions in the Middle East. With the Shanghai Futures Exchange shut from Feb. 9 to Feb. 16 for the holiday, stress in U.S. regional banks, coupled with Chinese New Year demand and Middle East tensions, provided support to the metal. Concerns persisted over the situation in the Middle East, particularly as Israeli forces conducted bombings in the southern border city of Rafah following the rejection of a Hamas truce proposal by Prime Minister Benjamin Netanyahu. Both the dollar index and the 10-year Treasury yield recorded weekly increases. Attention is set to shift to the U.S. consumer price index report next week, following Federal Reserve officials' statements indicating a reluctance to cut interest rates until they are more confident about inflation reaching the 2% target. The US Labor Department said initial jobless claims last week fell to 218,000 from 224,000 a week earlier, while the consensus analyst expectation called for 220,000 new claims, according to Marketwatch. The robust data is the latest sign the US job market is not cooling despite high interest rates, and the strength could push off expected cuts to US rates. This expectation of prolonged higher rates reduces the appeal of non-interestbearing precious metals. On COMEX, gold prices are finding support around $2010 and could encounter resistance near $2060, while silver may trade within the range of $21.900-$23.100. Looking ahead, gold prices may persist within the range of 61700, facing resistance near 63500, while silver may maintain a bullish bias, finding support near 69000, having upside potential of 73000.
Crude oil recorded weekly gains amidst ongoing tensions in the Middle East following Israel's rejection of a ceasefire proposal from Hamas. Both Brent and WTI benchmarks surged approximately 3% in the previous session, spurred by Israeli airstrikes on the southern border city of Rafah in response to Prime Minister Benjamin Netanyahu's dismissal of peace overtures in the Palestinian enclave. These tensions sustained elevated oil prices, with both Brent and WTI poised to achieve over 5% gains for the week, bolstered by geopolitical unrest in the region. Simultaneously, the United States and the United Kingdom escalated airstrikes against Houthi rebels in Yemen, retaliating against Houthi assaults on commercial vessels in the Red Sea. Houthi attacks, initiated in mid-November in support of Hamas during the Israeli-Hamas conflict, prompted the U.S. Navy to caution ships against traversing the southern Red Sea, leading to disruptions in global crude oil supplies. The Houthi rebels have vowed to persist with these assaults until Israel ceases its offensive in Gaza, exacerbating tensions in the region. On the demand front, official data revealed a substantial decline of 3.15 million barrels in US gasoline inventories, surpassing forecasts for a 140,000 barrel drawdown. Conversely, US crude stockpiles surged by 5.5 million barrels, exceeding market expectations for a 1.895 million barrel increase. Looking ahead, bullish movements in prices are anticipated, with potential support near 6150 and resistance near 6600. However, natural gas prices plummeted to a three-year low due to abundant supplies in the United States amid an unusually mild winter, dampening heating demand and maintaining elevated inventories. Consequently, prices are expected to continue a bearish trend, with a projected trading range of 135-170.
Copper saw its most significant weekly decline since September, driven by concerns over demand from China, the world's largest consumer, and a strengthening U.S. dollar. China's ongoing property sector crisis, which heavily relies on base metals for construction, has dampened market sentiment. Additionally, Thursday's data revealing the sharpest drop in consumer prices since 2009 has exacerbated short-term demand anxieties. The Chinese economy has also grappled with plummeting share markets, leading to intervention measures by Beijing. Analysts at China Futures note that pre-holiday restocking this year has been less robust, with expectations for subdued demand for copper tube and strip throughout the year due to the property sector woes. Mine-side disruptions also cast risks over supply. Also weighing on the market was a steady dollar after U.S. unemployment benefits data again pointed to a resilient labour market, reinforcing the Federal Reserve's message that interest rates are unlikely to be cut in the near term. Copper is anticipated to trade within the range of 700-715 levels with a sideways bias. Meanwhile, zinc prices dipped below $2,400 per tonne, hitting their lowest level since August 2023, amid increasing inventories and demand concerns stemming from the struggling real estate sector in China. Zinc is forecasted to trade between 203 and 215. Furthermore, zinc inventories at LME warehouses surged by over 14% in the past fortnight, reaching a one-month peak. Lead is expected to trade in the range of 179 to 187 levels, while aluminium is anticipated to fluctuate between 194 and 210. Aluminium prices have found support from growing expectations of EU sanctions on Russian aluminium imports. However, European Aluminium notes that the imposed restrictions only affect 12% of EU imports, prompting calls for a broader ban.
It closed at Rs.706.25 on 08th Feb 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs.719.022. On the daily chart, the commodity has Relative Strength Index (14-day) value of 34.129. Based on both indicators, it is giving a sell signal.
One can sell near Rs.712 for a target of Rs.690 with the stop loss of 722.
It closed at Rs.6307.00 on 08th Feb 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs.6204.201. On the daily chart, the commodity has Relative Strength Index (14-day) value of 57.748. Based on both indicators, it is giving a buy signal.
One can buy near Rs.6280 for a target of Rs.6700 with the stop loss of 6150.
It closed at Rs.5620.00 on 08th Feb 2024. The 18-day Exponential Moving Average of the commodity is currently at Rs.5657.288 On the daily chart, the commodity has Relative Strength Index (14-day) value of 41.405. Based on both indicators, it is giving a buy signal.
One can buy near Rs.5550 for a target of Rs.5850 with the stop loss of 5420.
NOTE: *M.High / M.Low stands for Monthly High / Monthly Low
CRB encountered resistance at 315 levels and experienced a significant decline thereafter, primarily due to the rise in the dollar index and US treasury yields. The appreciation of the INR somewhat restricted commodity movements. Gold benefited from safe-haven buying amidst growing concerns about China's economic growth, but couldn't sustain at higher levels. However, silver underperformed as it was influenced by base metals, which had a challenging week due to negative developments in China. Industrial metals were bearish as an economic and demand slowdown in China pressured the market due to a long public holiday in the top consumer. China falls deeper into deflation, with CPI suffering biggest fall since 2009 amid worsening economic turmoil. Despite Stimulus and Interest Rate Cut, Real Estate sector is not gaining momentum which consumes base metals significantly. Oil prices rose on track for weekly gains, with tensions persisting in the Middle East after Israel rejected a ceasefire offer from Hamas. Oil prices rose about 3% in the previous session as Israeli forces bombed the southern border city of Rafah after Prime Minister Benjamin Netanyahu rejected a proposal to end the war in the Palestinian enclave. Natural gas breached the support of 160 on mild weather in Northern Hemisphere.
In the agricultural sector, there was a marginal upward movement in castor seed prices, while sun oil rebounded due to buying at lower levels. Castor had limited upside due to muted export enquires of castor oil. Cotton prices at MCX have been gradually increasing over the past four weeks. Conversely, cotton oil seeds cake faced a decline for the sixth consecutive week. Jeera prices remained within a range, whereas turmeric prices dropped for the second consecutive week. Turmeric prices moved down on weaker note due to muted domestic buying. Stockists remained away from bulk buying in anticipation of rise in fresh arrivals with advancement of harvesting activities in Telangana. Prices spread between spot prices at Nizamabad and futures prices have expanded again ruled near about 1500 points that will lead to fall in futures prices in terms of basis adjustment. Coriander also experienced a bearish trend, and the guar market remained weak. Mentha remained under pressure due to sluggish buying in domestic market. Reports of tumbling exports of menthol and mentha oil will drag the prices down further. The export of menthol and mentha oil from India witnessed a decline of 15.9 % Y-o-Y to 7.3 thousand tonnes and 19% Y-o-Y to 1.06 thousand tonnes, respectively, during the period from April 2023 to October 2023.
Terming Farmers as our 'Annadata', Union Finance minister Smt. Nirmala Sitharaman said in her Budget about farmers' empowerment and well-being that will drive the country forward. The allocation for the Agriculture Ministry is Rs.1,17,528.79 crore, an increase of Rs.1,997 crore when compared with the previous Budget. The allocation for the Ministry in the revised estimates was Rs.1,16,788.96 crore while the actual expenditure in 2022-23 was Rs. 99,877.01 crore. This budget is a mirror of the guarantee of Prime Minister Shri Narendra Modi while rapidly paving the way for India on the path of development. The Budget continues to support growth and productivity in agriculture through interventions in crop insurance, encouraging use of nano fertilizers, promoting self-sufficiency in oilseed production and increasing investments in micro food processing
Highlights of Agricultural budget
The details of actual expenditure and amount unutilized from the Budget by the Ministry of Agriculture and Farmers Welfare during 2019-20 to 2022-23 are as follows: (Amount: Rs in crore)
The Government is implementing a comprehensive range of central sector as well as centrally sponsored schemes and programmes for the welfare of farmers in the country. These schemes encompass entire spectrum of agriculture including credit, insurance, income support, infrastructure, crops including horticulture, seeds, mechanization, marketing, organic and natural farming, farmer collectives, irrigation, extension, procurement of crops from farmers at minimum support prices, digital agriculture etc
Although production in crop sector, including foodgrains and horticulture, has been increasing, it is not reflected in the income of farmers. In a vast country like India, regional approach is needed as states play an important role in agriculture and rural development. It is too much to expect announcements on investments to boost agriculture and rural development in an Interim Budget. More policies are needed to improve incomes and demand in rural areas in tune with the goals of Amrit Kaal.
The USD/INR pair faced pressure from inflows throughout the week, although it managed to find support at the crucial level of 82.90. Despite this, the Indian rupee edged down marginally by 0.1% by Thursday's close. The RBI kept the repo rate unchanged at 6.50% in its latest policy announcement, in line with market expectations. The RBI Governor expressed optimism regarding higher growth and lower inflation, despite a mixed global economic outlook. However, the rupee struggled to hold its gains amidst fading expectations of rate cuts by the Federal Reserve in March or May. In other rupee pairs, the Euro traded flat as markets awaited the next round of fresh data. A hawkish statement from ECB staff added support to the Euro during the week. The technical bias for EUR/INR remains weak as long as it holds below the 89.55 level. The Pound traded steadily in Asia above 1.2600 as the dollar softened. GBPINR is likely to face pressure until it trades below 105.00 in the next few days. The spotlight was the Japanese Yen which fell to a 10-week low after the Bank of Japan (BoJ) dialled back its hawkish move. USDJPY saw a breakout above 149.00, which consequently pushed JPYINR to slide further. Key support for JPYINR stands at 55.20. At the same time the IMF urges the Bank of Japan to consider sending its yield curve control and massive asset purchases now, and then gradually raise short-term interest rates which may support yen at lower levels in coming days. The next week's spotlight will be the U.S CPI due out on Tuesday to assess the market move based on rate cut expectations from Fed. The upshot stands favourable for the dollar in coming days.
USDINR (FEB) pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 83.2. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 45 on the daily chart. Major support is seen around 82.8 levels, while resistance is expected near 83.3 levels.
One can buy near 82.9 for the target of 83.4 with the stop loss of 82.7
GBPINR (FEB) pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 105.2. However, the pair is in Neutral territory with a Relative Strength Index (14-day) value of 47 on the daily chart. Major support is seen around 104.2 levels, while resistance is expected near 105.5 levels.
One can buy near 104.5 for the target of 105.5 with the stop loss of 104
EURINR (FEB) pair is currently in an Sideways trend as trading between its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 90.2. However, the pair is in Borderline territory with a Relative Strength Index (14- day) value of 39 on the daily chart. Major support is seen around 88.8 levels, while resistance is expected near 90.2 levels.
One can buy near 89.4 for the target of 90.4 with the stop loss of 88.9
JPYINR (FEB) pair is currently in an Bearish trend as trading below its major Exponential Moving Average where, the 21-day Exponential Moving Average is around 56.7. However, the pair is in Borderline territory with a Relative Strength Index (14- day) value of 34 on the daily chart. Major support is seen around 55 levels, while resistance is expected near 56.8 levels.
One can sell near 56.5 for the target of 55.5 with the stop loss of 57
The Capital Small Finance Bank IPO has seen 50 percent subscription on February 7, the first day of bidding. All categories of investors participated in the public issue, buying in total 40.83 lakh equity shares against an offer size of 81.47 lakh shares. Retail investors were at the forefront to support the issue, picking 67 percent shares of allotted quota, followed by non-institutional investors (high networth individuals) who bought 38 percent shares, and qualified institutional investors 29 percent of the reserved portion. The Punjab-based small finance bank intends to raise Rs 523.07 crore through its public issue of 1.1 crore equity shares at the upper end of price band of Rs 445-468 per share. Whiteoak Capital, Ashoka India Equity Investment Trust, 360 ONE Mutual Fund, Ananta Capital Ventures Fund, HDFC Life Insurance Company, Edelweiss Tokio Life Insurance, ICICI Prudential Life Insurance Company, and Kotak Mahindra Life Insurance Company were among anchor investors participated in the public issue. The Capital Small Finance Bank IPO, which closes on February 9, is a mix of fresh issue of shares worth Rs 450 crore and an offer-for-sale of 15.61 lakh equity shares worth Rs 73.07 crore by the existing shareholders including investors Oman India Joint Investment Fund II, and Amicus Capital. The small finance bank with banking products business operations in Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh and Union Territory of Chandigarh will use net fresh issue proceeds mainly for augmenting its Tier - I capital base to meet future capital requirements.
BLS E-Services shares attracted a lot of interest from investors on its debut on February 6, freezing at the upper circuit following a significant rally in technology stocks and robust subscription numbers of its IPO. The stock opened at Rs 305, up 126 percent, over the issue price of Rs 135 on the NSE and gained more strength as the day progressed. In the last one-and-half-hour of trade, the stock was locked at Rs 366 till the closing, climbing 171.11 percent over the offer price and up 20 percent over the opening price with a volume of 4.99 crore equity shares. BLS E-Services shares recorded the biggest single-day gains on listing day on a closing basis among the IPOs listed since November 2021. Sigachi Industries recorded a 270 percent rally on November 15, 2021. Meanwhile, the Nifty IT index surged nearly 3 percent to 38,246.30, the highest closing level since January 17, 2022, while the benchmark index Nifty50 climbed 158 points or 0.7 percent to 21,929 levels. The New Delhi-based business correspondence services provider has raised Rs 310.91 crore through its maiden public issue, which was subscribed 162.47 times during January 30-February 1. The price band for the IPO launched by the digital service provider was Rs 129-135 per share. BLS E-Services has an asset-light business model with multiple cross-selling and up-selling opportunities, network effect, and wide reach for customer acquisition along with the strong parentage of its corporate promoter BLS International Services. It reported strong financial performance in the past. Revenue from operations grew at a CAGR of 56 percent during FY21-FY23, reaching Rs 243.1 crore in FY23, while net profit stood at Rs 20.3 crore in FY23 and increased at a CAGR of 86 percent during the same period.
The stock of Gabriel Pet Straps listed at a 13.8 percent premium over the IPO price on February 7. The shares debuted at Rs 115 against the issue price of Rs 101 on the BSE SME platform. The stock was commanding a 49 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the Grey Market Premium (GMP) to get an idea of the listing price. The Rs 8.06-crore public offer of Gabriel Pet Straps was entirely a fresh issue of 7.98 lakh shares. The promoters of the company are Shah Jay Pareshbhai, Varasada Vimal Dayabhai and Kavathiya Vivek Dharmendrabhai. Gabriel Pet Straps plans to use the net proceeds to repay or prepay borrowings availed by the company from banks, financial institutions and non-banking financial companies. It will also use the funds to acquire land and also to meet its capital expenditure requirements for setting up of the solar power plant. The IPO, which opened on January 31 and closed on February 2, was subscribed 246 times. The retail portion was booked 122 times and non-institutional investors picked up 360 times their allotted quota. Shreni Shares was the book-running lead manager and market maker while Bigshare Services was the registrar for the issue. Gabriel Pet Straps manufactures and sells pet straps under the brand name Gabriel for the packaging of heavy materials. It operates across India and has a distribution network in 10 states for the domestic market.
EV charger manufacturer, Exicom Tele-Systems may go public by the end of February 2024. The price band forthe issue could be around Rs 140-145 per share implying a post-listing market capitalisation of Rs 1,750 crore, reported CNBCTV18 citing sources. Exicom Tele-Systems is a power management solutions provider. It operates under two business verticals - the EV chargers business, where it provides smart charging systems for residential, business, and public charging use in India. The other one is the critical power solutions business, wherein it designs, manufactures, and services critical digital infrastructure technology to deliver overall energy management at telecommunications sites and enterprise environments in India and overseas. The company was amongst the first entrants in the EV chargers manufacturing segment. As of March 31, 2023, it had a market share of 60 percent and 25 percent in the residential and public charging segments and further,it has deployed over 35,000 EV chargers across 400 locations in India.
Juniper Hotels, Arkade Developers, CJ Darcl Logistics and Indo Farm Equipment received final observations from Securities and Exchange Board of India (Sebi) for their proposed initial public offerings (IPOs). When a company receives a final observation from Sebi, it's a signal from the regulator to go ahead with the IPO process. Juniper Hotel's IPO is a fresh issue of ₹1,800 crore with no offer for sale component. The Juniper is engaged in luxury hotel development and ownership and its properties are managed by the global hotel operator Hyatt. Arkade Developers' IPO consists solely of a fresh issue of ₹430 crore. It plans to use the proceeds on ongoing and upcoming projects, acquisition of projects and general corporate expenses. Logistics company, CJ Darcl Logistic's issue comprises a fresh issue of ₹340 crore and an offer for sale of 54.31 lakh shares. Tractor and crane manufacturer, Indo Farm Equipment's IPO consists of a fresh issue of ₹1.05 crore shares and an offer for sale of 35 lakh shares.
Garuda Construction and Engineering Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering. With this, the total number of draft offer documents filed by the companies has reached 10 in this year so far. The proposed IPO is a combination of a fresh issue of 1.83 crore equity shares and an Offer For Sale of 95 lakh equity shares by promoter PKH Ventures Ltd, according to the Draft Red Herring Prospectus (DRHP) uploaded on Sebi's website. Proceeds from the fresh issue will be used to supportthe working capitalrequirement ofthe Mumbai-based company and for general corporate purposes, including unidentified inorganic acquisition. PKH Ventures currently holds 77.07 per cent stake in Garuda Construction and Engineering. Garuda Construction and Engineering is involved in several projects for residential, commercial, residential-cum-commercial, hospitality, infrastructure and industrial projects. According to the CareEdge Research Report, the construction sector is the country's second-largest economic segment after agriculture. CorpwisAdvisors Private Limited is the sole book-running lead managerto the maiden public issue.
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Inflows into open-ended equity funds jumped 28 percent to Rs 21,780.56 crore during January, a 22-month high, according to the data released by the Association of Mutual Funds of India (AMFI), the industry trade body for mutual funds on February 8. Inflows into equity funds have remained in the positive zone for the 35th straight month now starting with March 2021. Notably, investments via systematic investment plans (SIPs) hit a fresh record high of Rs 18,838 crore last month against Rs 17,610 crore in December. The number of new SIPs registered attained a milestone in January as it reached 51.84 lakh, while the SIP assets under management (AUM) stood at Rs 10.27 trillion compared with Rs 9.96 trillion in December. Venkat Chalasani, Chief Executive, AMFI said, "It is abundantly clear that we are in an era of growth and participation through financial savings instruments. The surge in SIP accounts to an unprecedented 7.92 crore in January, coupled with the milestone of 51.84 lakh new SIP registrations, underscores the unwavering commitment of investors towards disciplined wealth creation". Overall, net inflows into open-ended equity funds came in at Rs 1.23 trillion against a net outflow of Rs 42,761 crore in December. The overall AUM of the mutual fund industry stood at Rs 52.74 trillion in January against Rs 50.78 trillion in December. The assets under management of the Indian mutual fund industry rose above Rs 50 trillion (Rs 50 lakh crore) in December thanks to the continuous inflows and rally in Indian equity markets. In December, net inflows into open-ended equity mutual funds gained 9 percent to Rs 16,997 crore against Rs 15,536 crore in November.
Bank of India Mutual Fund is targeting to garner at least Rs 500 crore through its newly launched multi-asset allocation fund during the primary subscription period. The new fund offer (NFO) of Bank of India Multi Asset Allocation Fund, which opened for subscription on February 7, will close on February 21. The new scheme is designed for investors who are seeking low volatility in their portfolio and exposure to multiple asset classes -- equity, debt and gold -- with better returns. On the fundraising target, Mohit Bhatia, CEO of Bank of India Investment Managers Private Ltd, told PTI, "We have kept an internal target of at least Rs 500 crore collections across our distribution channels during the NFO period." He said that the new scheme is aiming to capture the positives of the three asset classes. "The structural outlook on Indian equities continues to be quite good over the long term. Further, the general outlook on global and domestic interest rates seems to point to a likelihood of a downward movement over the next few years, which makes a good case for exposure to highquality debt. Also, India's inclusion in global bond indices adds a big structural positive for allocation to Indian debt," Bhatia said. Additionally, gold as an asset class has worked well as a hedge against inflation and part exposure to this asset class seems to work well as a diversifier over the long term, he added. The Multi Asset Allocation Strategy comprises investment of 35-40 per cent in equity & equity related instruments, 45-55 per cent in debt & money market instruments, 10-15 per cent in Gold ETF and up to 10 per cent in units issued by REITs and InvITs.
LIC Mutual Fund launched LIC MF Nifty Midcap 100 ETF, an open-ended scheme, replicating/tracking the Nifty Midcap 100 Total Return Index. The new fund offer or the NFO of the scheme is open for subscription and will close on February 12. The scheme will re-open for continuous sale and repurchase on February 19. The scheme will be managed by Sumit Bhatnagar. The scheme is benchmarked against Nifty Midcap 100 Total Return Index. The investment objective of the scheme is to provide returns that closely correspond to the total returns of securities as represented by the Nifty Midcap 100 Total Return Index, subject to tracking errors. The minimum investment amount is Rs 5,000 and in multiples of Re 1 thereafter. Units will be allotted in the whole figures and the balance amount will be refunded, even if it falls below the minimum amount. The creation unit size for the scheme shall be 2,00,000 units. “LIC Mutual Fund is optimistic about the potential of LIC MF Nifty Midcap 100 ETF. Given the prevailing macro environment, we feel we are launching the Fund at the right time. As per the International Monetary Fund Report, the growth in India is projected to remain strong in the upcoming years. Additionally, the Centre's positive outlook on the high GDP growth rate and reduced market borrowing plan may bode well with the financial markets. In the light of the same, we invite the investors to subscribe to the New Fund Offer of LIC MF Nifty Midcap 100 ETF,” said Ravi Kumar Jha, Managing Director and Chief Executive Officer, LIC Mutual Fund Asset Management. The scheme is suitable for investors who are seeking long-term investment and want investment in equity and equity-related securities and portfolios replicating the composition of the Nifty Midcap 100 Total Return Index, subject to tracking errors.
Bajaj Finserv Mutual Fund launched the Bajaj Finserv Large and MidCap Fund. The scheme is an open-ended equity scheme that targets investment in both largecap and midcap stocks, emphasising the concept of economic moats to ensure long-term sustainability and profitability. The new fund offer (NFO) is now open subscription and will close on February 20. The scheme is benchmarked against Nifty Large Midcap 250 TRI. It will be managed by Nimesh Chandan and Sorbh Gupta for equity investments and Siddharth Chaudhary for debt investments. The scheme will use the concept of 'Economic Moat'in deciding the asset-allocation strategies, according to the press release. It will follow InQuBE investment philosophy, a process which integrates quantitative attributes, such as Return on Incremental Capital (ROIC) and sustained margins, along with qualitative criteria like pricing power and management quality, ensuring superior information collection and prudent decision-making for market outperformance.
LIC Mutual Fund Asset Management on Tuesday announced the appointment of Ravi Kumar Jha as its Managing Director and Chief Executive Officer. Jha has worked for over 30 years with LIC and has handled diverse positions. He was serving as executive of corporate strategy till December 2023 at the company. The 57-year-old Jha holds a bachelor's degree in commerce from Ranchi University
Franklin Asian Equity Fund will increase allocation to Indian equities given the strong India growth story, and also enable investors to get the benefit of longterm capital gains tax with indexation if they hold for more than three years. Franklin Asian Equity Fund, with assets of Rs 250 crore is an open-ended scheme, launched in 2008, that invests in undervalued companies in India and other Asian regions. The scheme will now increase its allocation to Indian equities. As per the new structure, it will now allocate 35-45% to Indian equities, 45-65% to foreign securities of Asian companies (excluding Japan) and 0-20% to debt securities. This structure will make it eligible for debt taxation, where investors need to pay only 20% long-term capital gains tax with indexation benefits if they hold for more than three years, which significantly reduces tax liability.
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