In the week gone by, global markets witnessed a volatile trade as drop in US retail sales has raised concerns about the economic recovery, amid buoyed by fears that the Delta coronavirus variant could delay the global economic recovery. Taper's sales rumours have again started impacting markets. The minutes from the July policy meeting published Wednesday fleshed out the Fed’s thinking on when to taper its monthly bond purchases, and showed officials expected they could ease stimulus this year if the economy continues to improve. This too has weakened the sentiments of the global markets. U.S. Fed next meet is scheduled on September 21-22. Japan's economy rebounded more than expected in the second quarter after slumping in the first three months of this year, data showed, a sign consumption and capital expenditure were recovering from the coronavirus pandemic's initial hit. The world's third-largest economy grew an annualised 1.3% in April-June after a revised 3.7% slump in the first quarter.
Back at home, Market also witnessed the volatile trade tracking global cues. Actually, tapering is negative news for markets since it will eventually reduce the liquidity available in the financial system. On the flip sides, retail investors continued to buy aggressively in the market . On the economy front, the economy is recovering from the second pandemic wave and is on the path of revival. As per Finance Minister Nirmala Sitharaman the government is keen to step up capital spending. On the independence day , Prime Minister Narendra Modi announced that the government will launch a ₹100 lakh crore Gati Shakti initiative aimed at giving a boost to manufacturing sector and infrastructure that will generate huge employment opportunities for the youth. As per finance minister Nirmala Sitharaman, the government and the Reserve Bank of India (RBI) were keeping a close watch on the consequence of an increase in interest rates by the US Federal Reserve. As per the Reserve Bank of India (RBI) latest assessment of the economy, aggregate demand in the economy is 'limping back' but a catchup with the pre-pandemic level will take some more time. Another data showed that India’s wholesale price inflation eased for the second consecutive month in July to 11.16% from 12.07% a month ago but remained in double digits for the fourth month, led by manufactured items. Going forward, market will continue to track the global and domestic factors.
On the commodity market front, CRB noticed a pause in the rally on FOMC stand. Minutes from the latest Federal Reserve meeting suggested that tapering of monthly asset purchases could begin as soon as this year, a move that could strengthen the dollar and lower the appeal of commodities priced in the currency. Investors now await the Fed’s Jackson Hole symposium, due to take place from Aug. 26 to 28. Fresh buying may emerge in metals and energy as recent fall make may stimulate physical buying as well. Gold and silver are likely to trade in a range of 46500-48500 levels and 61500-64000 levels respectively. Festive demand stimulated fresh buying in agricommodiites and thus Agridex also closed up. Newly launched Guarex closed the week on strong note on better demand for guar in spot market. Market Manufacturing PMI Flash, GDP Growth Rate, Core PCE Price Index, PCE Price Index, Michigan Consumer Sentiment Final, Durable Goods Orders of US, GDP Growth Rate, GfK Consumer Confidence and Ifo Business Climate of Germany, GDP Growth Rate of Mexico, ECB Monetary Policy Meeting Accounts etc outcome may affect 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.
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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.
company, Bangalore market has least impact of COVID-19 amongst the metros and is expected to perform better. Good cash inflow from ongoing and completed projects, focus on cost optimisation and efficient cash flow management would help keep the company's debt levels under control in these uncertain times which would further improve the overall performance of the company.
The company is doing well and Q1FY22 has been a good quarter for the company due to adoption of innovative technological tools, self-reliant model, strong brand, on time delivery, robust balance sheet, presence in major cities, availability of sufficient liquidity and huge land bank for future growth. The management of the company strongly feels that the company is well equipped to face the recent challenges. Moreover, Real estate sector is expected to perform better due to all time low housing loan interest rates, inherent demand for housing, various tax exemptions under income tax, CLSS (Credit linked subsidy scheme) scheme & other government benefits. Thus, it is expected that the stock will see a price target of Rs.687 in 8 to 10 months time frame on an expected P/BVx of 2.45x and FY21 BVPS of Rs.280.25.
The company has been able to generate a steady stream of free cash flows, supported by a combination of high margins in the EPC segments, efficient working capital deployment, and asset monetisation initiatives. Despite challenges, the company is confident of maintaining margins at 15%. Its margins are considerably higher than its peers, which demonstrate strong execution capability, and its strategy to be present in segments which have a minimum threshold level of design and engineering complexity leading to less competitive pressures. Thus, it is expected that the stock will see a price target of Rs.325 in 8 to 10 months time frame on a target P/E of 17x and FY22 (E) earnings of Rs.19.14.
The stock closed at Rs 3112.95 on 20th August, 2021. It made a 52-week low at Rs 1831 on 18th August, 2020 and a 52-week high of Rs. 3179.50 on 20th July, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 2650.11.
Short term, medium term and long term bias are looking positive for the stock as it is trading in higher highs and higher lows on charts, which is bullish in nature. Apart from this, stock has formed a “Bull Flag” pattern on weekly charts and gave the breakout of pattern along with high volumes and also managed to close above the same. So, buying momentum may continue for coming days. Therefore, one can buy in the range of 3060-3080 levels for the upside target of 3400-3460 levels with SL below 2940 levels.
The stock closed at Rs 1742.60 on 20th August, 2021. It made a 52-week low of Rs 1237.00 on 18th August, 2020 and a 52- week high of Rs. 1778.00 on 20th August, 2021. The 200 days Exponential Moving Average (DEMA) of the stock on the daily chart is currently at Rs 1523.76.
As we can see on charts that stock is continuously trading in uptrend since February, 2019 while trading in rising channel on broader charts. Apart from this, it has formed an “Inverse Head and Shoulder” pattern on weekly charts which is considered to be bullish. Last week, the stock ended with over 2.2% gains and conclusively gave the pattern breakout with high volumes and also closed above the breakout levels. Technical indicators such as RSI and MACD are also suggesting buying for the stock. Therefore, one can buy in the range of 1720-1730 levels for the upside target of 1900-1930 levels with SL below 1630 levels.
Disclaimer : The analyst and its affiliates companies make no representation or warranty in relation to the accuracy, completeness or reliability of the information contained in its research. The analysis contained in the analyst research is based on numerous assumptions. Different assumptions could result in materially different results.
The analyst not any of its affiliated companies not any of their, members, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of the analysis research.
SOURCE: RELIABLE SOFTWARE
Charts by Reliable software
Indian markets remained volatile in the week gone by on the back of mixed cues from global front. Continued weakness in global markets kept bears on front foot even though Nifty tested its record highs last week. Banking index once again could not manage to sustain above 36000 levels and slid down sharply to end the week with loss of nearly 3%. From the derivative front, Put writers were seen unwind their positions at 16500 strike while call writers added hefty open interest at same level. The Implied Volatility (IV) of calls closed at 11.01 % while that for put options closed at 12.03%. The Nifty VIX for the week closed at 12.91%. PCR OI for the week closed at 1.34. Technically we are observing some negative divergences on secondary oscillators on both the indices, which points towards limited upside in index for upcoming week. However, volatility is likely to remain intact in markets with some sector specific action. On downside, 16400 & 16250 levels will act as immediate support for Nifty while any sharp upside would likely to remain capped under 6600-16650 zone.
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**The highest call open interest acts as resistance and highest put open interest acts as support.
# Price rise with rise in open interest suggests long buildup | Price fall with rise in open interest suggests short buildup
# Price fall with fall in open interest suggests long unwinding | Price rise with fall in open interest suggests short covering
Turmeric futures (Sep) look to trade positively in the coming week due to improving demand from the traders. We expect the prices to trade towards 8600 levels with immediate support at 7710. Turmeric prices have increased to above 7500 per 100 kg in Nizamabad market due to improving demand from upcountry buyers and export enquiries. Turmeric exports expected to pick-up in coming weeks as market witnessed arrivals of good quality turmeric. Jeera futures (Sep) continued to trade positive this week on good demand from the physical market players and stockists. We expect the prices to trade positively towards 15000/15500 with the immediate support at 14330 levels. There is very good demand from the traders to fill their stocks before the festival season. At spot trading in prominent Unjha market, all varieties increased by Rs 20-40 while in Rajkot all grades were higher by Rs 30 per 20 kg. Jeera exports from Apr-May is higher by 14% compared to last year exports as per Dept of Commerce data release. In 2021 (Jan-Jun), country exported more than 1.20 lakh tonnes of jeera compared to 90,000 tonnes last year same time. Dhaniya futures (Sep) prices rise for the third consecutive week due to strong physical demand from the traders across the country. We expect prices to trade with positive bias towards 8500 levels with support at 7500 levels. Mandi traders are anticipating that coriander may remain strong till January. An increase in export demand is also bound to boost prices. In Rajasthan bullish trend has been observed for the fourth consecutive day of the trading week. An average price jump of Rs 100 per quintal was seen in the mandis across the country.
Gold extended its winning streak for second week, supported by a drop in U.S. bond yields and worries that a spike in COVID-19 Delta variant cases could hinder a recovery in the global economy. Lower U.S. yields and the fact that equity markets are slightly softer on the back of the weakness in Asia markets is helping gold. Benchmark 10-year Treasury yields dipped to a near two-week low, translating into reduced opportunity cost of holding non-interest-bearing gold. A surge in COVID-19 cases in Asia and elsewhere sapped risk sentiment in wider financial markets. Concerns over China's regulations for its oncefreewheeling internet sector and turmoil in Afghanistan also kept investors on edge. Gold is considered as a safe store of value during times of political and financial uncertainty. Market focus is now on the annual meeting on Aug. 26-28 of central bankers in Jackson Hole, Wyoming. Taper talks and concerns over rising COVID-19 Delta variant cases hammered risk sentiment in wider financial markets, driving investors towards safe-haven assets. Gold prices are up about 6% from a more than four-month low of $1,684.37 hit last week. On the other hand, the minutes from July meeting showed U.S. central bank officials saw the potential to ease bond-buying programme this year if the economy continues to improve as expected. However, the minutes also magnified the importance of the next few months’ jobs reports, with solid gains needed to meet the Fed’s expectations and show that the coronavirus has not begun to again slow the economy. Ahead in the week we may see huge volatility in the counter where it may trade in the wide range of 45700-48300 and silver may trade in the range of 59000-64100.
Soybean futures (Sep) witnessed some upside this week due to fresh buying. In previous two weeks we have seen sharp correction due to allowing 15 lakh tonnes of soy meals imports into the country to support poultry. We expect the prices to remain in the range of 7100-8200 levels. In this Kharif, Soybean area is at 116.33 lakh ha higher compared to normal area but behind last year area by 2.3 lakh hac. India's export of soyameal, used as livestock feed, declined 57% to 26,725 tonne in July as compared to the year-ago period, amid tight domestic supplies. RM Seed futures (Sep) witnessed some resistance this week after good rally since June. However, the trend still looks positive and prices likely trade towards 8000/8300 levels with support at 7650 and resistance at 8300 levels. The domestic demand for mustard is increasing continuously and the stocks are declining fast. Export of Rapeseed meal increased to 4.8 lakh tonnes compared to 4.4 lt last year this season (Apr-Jul). Edible oil prices are expected to trade in a range as they are trading near long term resistance while the stock in the country is also high. Domestic market is also tracking weakness in Malaysian CPO and Soybean Oil in US markets. As per SEA, India’s palm oil imports declined 43.55% Y/Y to 4.65 lakh tonnes in July, lowest in five months, due to higher domestic stocks. Moreover, exports of Malaysian palm oil products for August 1-20 fell 15% compared to July 1-20 and there is expectation of improving production in August. Ref Soy oil futures (Sep) likely to trade with sideways with positive bias towards 1440 with support at 1390 levels while CPO futures (Aug) likely to trade in the range 1140-1210 with support at 1152.
Crude Oil prices saw more than 5% weekly drop as new lockdowns in countries facing surging cases of the COVID-19 Delta variant dampened the outlook for fuel demand. Broader investor risk aversion also weighed on oil with the U.S. dollar jumping to a nine-month high on signs the U.S. Federal Reserve is considering reducing stimulus this year. The spread of the Delta variant amid moderating economic growth and the prospects of tighter monetary policy are creating short-term ripples in the commodity market. Increasing restrictions on mobility are raising concerns for oil demand. The latest lockdowns in major economies around the world has likely harmed the economic activities and growth forecasts in the months to come. Japan has extended its emergency lockdown and confirmed cases are on the rise in countries such as South Korea, Malaysia, Philippines, Vietnam and Thailand, whose industries need oil, which will also be affected by the Delta variant. Ahead in the week, crude may trade with bearish bias where some bounce from support also witnessed and the trading range would be 4550-4900 levels. Natural Gas prices dipped on forecasts for milder weather over the coming weeks that could reduce the use of electricity to power air-conditioning in many parts of the country. NatGasWeather said long-range models have become increasingly bearish for the late August/early September period as the upper ridge weakens. Rather than keep the hot pattern intact, this weakening instead would bring “perfect” daytime temperatures in the 70s and 80s across the northern United States. Ahead in the week, it may trade with mixed bias and trade in range of 278-305.
Cotton futures (Aug) is in correction mode due to low demand from the domestic mills and tracking weakness in US cotton prices due to improving weather and sufficient rainfall. We expect prices to trade with some negative bias in the range 25500 – 26600 levels with support at 25890 levels. Cotton prices were stable in the markets of Gujarat this week amid limited buying by spinning mills and Multinational companies (MNCs), while daily arrivals registered an increase as stockists are unloading their stocks as new season is nearing. The cotton sowing area (116.17 lh) is lagging by almost 7 lakh hac compared to last year due to erratic rainfall distribution but according to USDA the cotton production will be higher at 371 lakh bales Vs 354 lakh bales last year. Guar seed futures (Sep) expected to trade higher towards 5500 levels due to expectation of lower production next season. There is a support at 4900 levels. The area under guar seed as on 17-Aug was 20 lakh hac compared to 23.9 l hac last year and market is expecting lower guar area target by than the govt at 24 lakh hac. due to irregular and deficient rains. Castor Seed (Sep) is likely to trade higher towards 6050 levels with support at 5800 levels. The demand is increasing steadily from the industrial consumers while the castor oil exports are also increasing. In the month of June, exports jumped to all time high for the single month at 81750 tonnes. In the first 6- month of 2021, India export 3.6 lakh tonnes (lt) of castor oil compared to 3 lt last year. Sowing progress in Gujarat and Rajasthan is also a worry for castor production.
Base metals may trade with negative bias as demand concern due to the highly transmissible Delta variant in some major economies-including China and the United States, strong dollar index and easing supply disruptions while lower level buying may cushion some support the prices. Worries over Chinese steel production, global growth risks and the prospect of reduced U.S. stimulus may pressurise metals markets. The dollar rose to a nine-month high on expectations that the U.S. Federal Reserve will start tapering its huge stimulus this year. Copper may trade in the range 660-710 levels. Residents near MMG Ltd's Las Bambas copper mine in Peru lifted the blockade of a road used to transport the metal, while operations resumed at Teck Resources Ltd's Highland Valley Copper operations in Canada after a wildfire evacuation order was lifted, easing copper supply pressure. Zinc can move in the range of 240- 250 levels. Lead can move in the range of 176-183 levels. The power curtailment has been loosened in Guangxi, Hunan, and Yunnan, but the affected output in August is still higher than expected. The output of zinc ingot is expected to be 494,400 mt in August, and the supply will remain tight. Nickel may trade in the range of 1360-1430 levels with firm note on worries over dwindling stockpiles. However China’s curbs on carbon emissions include limits on the output of steel, hurting demand for the raw material used to produce it. Aluminum may move in the range of 200-210 levels. Record aluminium prices in the United States and Europe will be sustained by Russia's mining tax for some months, but attempts to push prices even higher are likely to face headwinds from traders cashing in their stocks.
COPPER MCX (SEP) contract closed at Rs. 686.25 on 19th Aug’2021. The contract made its high of Rs. 769.90 on 26th Jul’2021 and a low of Rs. 677.00 on 19th Aug’2021. The 18- day Exponential Moving Average of the commodity is currently at Rs 718.83. On the daily chart, the commodity has Relative Strength Index (14-day) value of 32.214.
One can sell near Rs. 700 for a target of Rs. 660 with the stop loss of Rs.720.
GOLD MCX (OCT) contract closed at Rs. 47169.00 on 19th Aug’2021. The contract made its high of Rs. 50040.00 on 02th Jun’2021 and a low of Rs. 45662.00 on 11th Aug’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 47123.58. On the daily chart, the commodity has Relative Strength Index (14-day) value of 47.502.
One can sell below Rs. 47050 for a target of Rs. 45500 with the stop loss of Rs. 47850
TURMERIC NCDEX (SEP) contract was closed at Rs. 8204.00 on 18th Aug’2021. The contract made its high of Rs. 8370.00 on 20th Aug’2021 and a low of Rs. 7214.00 on 03th Aug’2021. The 18-day Exponential Moving Average of the commodity is currently at Rs. 7889.60. On the daily chart, the commodity has Relative Strength Index (14-day) value of 69.067.
One can buy near Rs. 8100 for a target of Rs. 8700 with the stop loss of Rs 7800.
CRB noticed a pause in the rally on FOMC stand. Minutes from the latest Federal Reserve meeting suggested that tapering of monthly asset purchases could begin as soon as this year, a move that could strengthen the dollar and lower the appeal of commodities priced in the currency. Energy counter was in pressure. Crude in New York dropped to the lowest since May after a surprise increase in U.S. gasoline inventories signalled fuel demand is under threat with the delta variant menacing the nation. Domestic gasoline stockpiles inventories climbed by 696,000 barrels, the first increase in more than a month. The EIA data also showed a 3.234- million-barrel draw in U.S. crude oil supplies in the week to Aug. 13. Natural gas also moved down on low cooling demand. Gold was down, with the dollar strengthening after the U.S. Federal Reserve hinted that it could begin asset tapering as soon as 2021 in the minutes from its latest meeting. Investors now await the Fed’s Jackson Hole symposium, due to take place from Aug. 26 to 28. Base metals saw a correction. Yunnan Chihong Zinc & Germanium, a unit of staterun Chinese metals group Chinalco, said late on Tuesday one of its zinc subsidiaries had suspended production after three workers were killed in a gas leak. The copper price edged lower despite fears of supply disruption at Las Bambas mine in Peru amid ongoing labour strikes in top producer Chile. Despite the supply risk, the copper price has been weighed down by possible policy tightening in some major economies and rising global coronavirus cases, which could drag on recovery. Top consumer China announced that its refined copper imports fell for the fourth straight month in July, adding to the sense of lost momentum.
Festive demand stimulated fresh buying in agri-commodities and thus Agridex also closed up. Castor continued its magical run. The demand is increasing steadily from the industrial consumers. Castor oil exports in the month of June jumped to all time higher for the single month exports to 81750 tonnes. In the first 6-month of 2021, India export 3.6 lakh tonnes of castor oil compared to 3 lt last year. Newly launched Guarex closed the week on strong note on better demand of guar in spot market. Oil seeds and edible oil counter took a correction on weak international market. Cotton prices dropped on profit booking from higher side, despite low production news. USDA has cut production of cotton in China and Brazil by 3 and 5.66% respectively while the global production cut by 0.5% to 118.84 million bales.
Natural gas is a fossil fuel and used to generate electricity, cooking and heat homes, was abundant and cheap during much of the last decade amid a boom in supply from the U.S. to Australia. Natural gas is the cleanest burning fossil fuel, and emits almost 50% less CO2 than coal. With few other options, the world is expected to depend more on cleaner-burning gas as a replacement to coal to help achieve near-term green goals.
Recently the natural gas prices zoomed sharply and as the September NYMEX gas contract touched to three-year high of $4.20/MMBtu as demand drastically outpaced new supply. In 2020, prices during the crush of Covid-19 were just $1.85. The prices in the U.S., where the shale revolution has significantly boosted production of the fuel, have rallied to the highest level for this time of year in a decade. European natural gas rates have surged record from low in May 2020 due to the pandemic, while Asian LNG rates have jumped about six-fold in the last year as deliveries of the liquefied fuel to Asia are near an all-time high for this time of year.
Global demand of natural gas
Global demand of natural gas will rebound by 3.6% in 2021, the International Energy Agency (IEA) has forecast, India’s natural gas consumption will rise 4.5%. By 2024, the global gas demand is forecast to be up 7% from 2019’s pre-Covid levels, according to the IEA’s latest report. Global demand dropped by 1.9% in 2020 due to an exceptionally mild winter in the northern hemisphere and the impact of the Covid-19 pandemic. Looking further out, the appetite for liquefied natural gas is expected to grow by 3.4% a year through 2035, outpacing other fossil fuels, according to an analysis by McKinsey & Co. Indeed, between 2009 and 2020, global gas consumption surged by 30% as utilities and industries took advantage of booming output. Asia imported about 250 million tons of LNG last year.
More likely to stay elevated
Indian Rupee reversed its last week gains amid sharp rise in US dollar. Rupee fell below 74.40 versus dollar. Inevitably the gauge of the US dollar hit 9-month highs as market participants remained concerned over the spread of the delta variant. Additionally the Fed released minutes signaling a more hawkish view with most officials agreeing to scale back bond purchasing sometime this year. We think USDINR is likely to rise further in the coming days towards 74.75 levels. Meanwhile pound plunged to three months lows amid inflation in the UK eased back to the 2% goal for the first time since April. Technically GBPUSD breaches major support level of 1.3700 and weaker trend in GBPINR will continue for next week. While EURUSD broke below the 1.17 handle hitting a low of 1.1668. ECB Chief Economist, Philip Lane stated that the central bank’s revamp of plans for interest rates is only the first step to implement the ECB’s new strategy. We remain bearish in EURINR since mid - July amid the stronger dollar trend. Going forward EURINR may dip further in next couple of days subject to how EURUSD pans out around 1.1650 regions.
USD/INR (AUG) contract closed at 74.3225 on 18-Aug-21. The contract made its high of 74.4950 on 17-Aug-21 and a low of 74.2925 on 17-Augl-21 (Weekly Basis). The 21-day Exponential Moving Average of the USD/INR is currently at 74.5146.
On the daily chart, the USD/INR has Relative Strength Index (14-day) value of 42.94.One can buy at 74.20 for the target of 75.20 with the stop loss of 73.70.
GBP/INR (AUG) contract closed at 102.2400 on 18-Aug-21. The contract made its high of 102.9675 on 17-Aug-21 and a low of 102.1525 on 18-Aug-21 (Weekly Basis). The 21-day Exponential Moving Average of the GBP/INR is currently at 103.1644.
On the daily chart, GBP/INR has Relative Strength Index (14-day) value of 42.74. One can sell at 102.00 for a target of 101.00 with the stop loss of 102.50.
| 20th AUG | UK consumer confidence beats pre-pandemic levels in August |
| 19th AUG | Chip shortage deepens supply problems at global carmakers |
| 19th AUG | U.S. second-quarter growth likely to be revised higher after slew of strong data |
| 18th AUG | Brexit immigration rules blamed for run on chickens |
| 18th AUG | Taliban prepares to govern Afghanistan |
| 18th AUG | UK inflation slows more than expected to 2% |
| 17th AUG | Biden’s debacle dims the outlook for higher rates |
| 16th AUG | Delta variant and floods spark anxiety over China growth |
| 16th AUG | Japan’s economy edges back into growth in the second quarter |
EUR/INR (AUG) contract closed at 87.1025 on 18-Aug-21. The contract made its high of 87.7250 on 17-Aug-21 and a low of 87.0875 on 18-Aug-21 (Weekly Basis). The 21-day Exponential Moving Average of the EUR/INR is currently at 87.9529.
On the daily chart, EUR/INR has Relative Strength Index (14-day) value of 31.09. One can sell at 87.30 for a target of 86.30 with the stop loss of 87.80.
JPY/INR (AUG) contract closed at 67.7050 on 18-Aug-21. The contract made its high of 68.1600 on 17-Aug-21 and a low of 67.6925 on 18-Aug-21 (Weekly Basis). The 21-day Exponential Moving Average of the JPY/INR is currently at 67.70772.
On the daily chart, JPY/INR has Relative Strength Index (14-day) value of 44.18. One can buy at 67.50 for a target of 68.50 with the stop loss of 67.00.
Emcure Pharmaceuticals, on August 19 filed its DRHP with market regulator SEBI for its proposed IPO. The initial public offering comprises a fresh issue of equity shares aggregating up to Rs. 1,100 crore and an offer for sale of up to 18,168,356 equity shares that include promoters - Satish Mehta selling up to 2,030,000 equity shares and Sunil Mehta aggregating up to 2,50,000 equity shares. Other selling shareholders include private equity investor Bain apital, as well as certain individual selling shareholders. The Pune-based company said it proposes to utilise net proceeds from fresh issue towards repayment of all or a portion of debt and general corporate purposes.
RateGain Travel Technologies, a travel and hospitality technology services provider – has filed draft papers with markets regulator Sebi to raise funds through an initial share sale. The IPO comprises a fresh issue of equity shares, aggregating up to 400 crore and an OFS of up to 2.26 crore shares by promoters and existing shareholders, according to the DRHP . The funds will be invested in technology innovation, artificial intelligence and other organic growth initiatives; the purchase of certain capital equipment for the data centre and general corporate purposes. RateGain is among the leading distribution technology companies globally and the largest Software as a Service (SaaS) company in the hospitality and travel industry in India.
Pharmacy retail chain MedPlus Health Services, backed by investors like Warburg Pincus and PremjiInvest, has filed preliminary papers with capital markets regulator Sebi to raise Rs 1,639 crore through an initial share-sale. The IPO comprises fresh issuance of equity shares worth Rs 600 crore and an OFS of up to equity shares aggregating up to Rs 1,038.71 crore by promoter and existing shareholders, according to the DRHP. The offer for sale comprises equity shares aggregating up to Rs 450 crore by Lone Furrow Investments, equity share aggregating up to Rs 500 crore by PI Opportunities Fund I and equity shares aggregating up to Rs 88.71 crore by other selling shareholders, consisting of certain entities and individual selling shareholders. The offer will include a reservation of shares for employees of the company. Proceeds of the fresh issue will be used for funding working capital requirements of the company's subsidiary, Optival.
Data analytics services provider Latent View Analytics has filed draft papers with the capital markets regulator SEBI for fundraising via an IPO. The company intends to raise Rs 600 crore through the public issue that comprises a fresh issue of Rs 474 crore, and an offer for sale of Rs 126 crore by promoters and investors. The company has a total of 44 shareholders including two promoters. The net proceeds from its fresh issue will be utilised for funding inorganic growth initiatives, working capital requirements of the subsidiary Latent View Analytics Corporation, and investment in subsidiaries to augment their capital base for future growth, along with general corporate purposes.
Baring Private Equity Asia-backed CMS Info Systems has filed a DRHP with capital markets regulator SEBI to launch its IPO. The company plans to mobilise Rs 2,000 crore through the public issue that comprises entirely an offer for sale by promoter Sion Investment Holdings Pte Limited. Sion Investment Holdings, an affiliate of Baring Private Equity Asia, acquired the company in 2015. As of March 2021, the company is 100 percent owned by the promoter. Axis Capital, DAM Capital Advisors, Jefferies India, and JM Financial are appointed as the book running lead managers to the issue.
Cybersecurity and digital transformation services provider Inspira Enterprise India has filed draft papers with the capital markets regulator SEBI on August 13 to launch its IPO. The company plans to raise Rs 800 crore through a public offer that comprises a fresh issue of Rs 300 crore and an offer for sale of Rs 500 crore by promoters Prakash Jain, Manjula Jain Family Trust and Prakash Jain Family Trust. The offer will also include a reservation of shares for employees of the company. The net proceeds from the fresh issue will be utilised working capital requirements (Rs 109.63 crore), repayment of debt (Rs 115.37 crore) and general corporate purposes. Inspira Enterprise India is a eading digital transformation company in India with a focus on cybersecurity. It has a global presence across several verticals which are fully owned by promoters. As of March 2021, it has operations across India, the US, Southeast sia, the Middle East and Africa.
Beauty and wellness firm VLCC Health Care has re-filed DRHP with the capital markets regulator SEBI on August 13 to raise funds via an IPO. The initial public offering comprises a fresh issue of Rs 300 crore by the company and an offer for sale of 89,22,672 equity shares by promoter and investors. Promoter Mukesh Luthra is going to offload 18,83,414 equity shares, while investors OIH Mauritius and Leon International will look to exit the company by selling their entire shareholding of 18,97,540 (5.04 percent of pre-offer paid-up equity) and 51,41,718 equity shares (13.65 percent of pre-offer paid-up equity). The company and selling shareholders, in consultation with merchant bankers, may consider a private placement of Rs 100 crore, and if the said pre-IPO placement will be undertaken prior to the filing of RHP with ROC, the fresh issue size will be reduced. VLCC is going to utilise the net proceeds from the fresh issue for setting up VLCC Wellness Clinics in India and GCC Region, and VLCC Institutes in India. It will also deploy capital to refurbish certain existing VLCC Wellness Clinics in India and GCC Region, repay debts, invest in brand development, invest in digital and information technology infrastructure, and general corporate purposes.
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SBI Mutual Fund on August 11 announced the launch of SBI Balanced Advantage Fund, an open-ended dynamic asset allocation fund that seeks to generate long term capital appreciation by aiming to capture the potential upside and limit the downside in volatile equity markets. SBI Balanced Advantage Fund would track CRISIL Hybrid 50+50 – Moderate Index TRI. The new fund offer (NFO) would open on August 12 and close on August 25. The minimum application amount (during the NFO period) required is of Rs 5,000 and in multiples of Re 1 thereafter, SBI MF said in a press release. The Fund Managers for SBI Balanced Advantage Fund are Dinesh Balachandran and Gaurav Mehta for Equity portion, Dinesh Ahuja for Debt portion, and Mohit Jain for managing overseas investments, it added. "SBI Balanced Advantage Fund would manoeuvre across equity for long-term wealth creation and fixed income to provide stability to the overall scheme portfolio," the statement said. The scheme would invest between 0 percent and up to to a maximum of 100 percent investment in equity and equity related instruments. It will also invest minimum 0 percent and up to a maximum of 100 percent investment in Debt securities (including securitised debt) and money market instruments (including Triparty Repo, Reverse Repo and equivalent) and 0 percent to 10 percent in units issued by REITs and InvITs (in line with SEBI limits prescribed from time to time), SBI MF said.
India-focused offshore funds and exchange-traded funds (ETFs) witnessed a net outflow of USD 1.55 billion in three months ended June 2021, making it the 13th consecutive quarter of withdrawal. This was significantly higher than the net outflows of USD 376 million registered during the quarter ended March 2021. During the quarter ended June 2021, the offshore fund segment registered net outflows to the tune of USD 1.7 billion, higher than USD 1.1 billion seen in the preceding quarter, the report mentioned. Interestingly, the segment received net inflows of USD 33.2 million in the month of March, which was the first monthly net inflow for the segment after 37 consecutive months of net outflows. However, this could not be sustained, as the scenario turned adverse with the onset of the second wave of COVID-19 in the country.
The growing affinity of retail investors towards flexi-cap and sectoral funds has led to domestic equity funds adding 2.16 million folios in July 2021, the highest on record for a month, according to data from the Association of Mutual Funds of India. The net folio addition in July was nearly five times the monthly average for the last two years. This is the third month in a row equity funds have witnessed more than a million folios. Since this April, equity funds have recorded a net folio addition of more than 5.3 million compared with 3 million in the entire fiscal year ended March 31, 2021. The total tally of equity fund folios was 71.1 million at the end of last month. Of this, 18% was contributed by sectoral funds. Large-caps accounted for 15.3% and flexi-caps for another 13.3%, while the balance was other categories.
Nippon India Mutual Fund said it has collected Rs 2,860 crore through the new fund offer (NFO) of its Flexi cap fund. Over 2.5 lakh investors spread across 2,398 cities invested in the NFO through both digital and offline mode, the company said in a statement. Further, more than 53,000 SIP (systematic investment plan) applications were received, reflecting long-term commitment of many investors and distributors for the product. Further, more than 53,000 SIP (systematic investment plan) applications were received, reflecting long-term commitment of many investors and distributors for the product. The scheme -- Nippon India Flexi Cap Fund -- is an open-ended dynamic equity scheme investing across large-cap, midcap, small-cap stocks that allow investors to participate in opportunities across market caps. The company said that the fund is well-positioned to increase allocation to large caps during times of uncertainty and at the same time benefit from the growth potential of mid and small caps curing market uptrends.
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