Aarti Industries’ profit increased by 2% year on year to Rs 149 crore for the quarter ending March 2023, while revenue increased by 15% to Rs 1,656 crore.
On May 10, Aarti Industries’ shares tumbled more than 8%, a day after the speciality chemical company’s Q4 earnings call, in which management emphasised a negative demand outlook in key regions and the discretionary category.
“Product offtake associated with the textile industry, such as dyes and pigments, remains subdued,” management stated.
The corporation also supplied certain discretionary products to ‘non-regular markets,’ such as China, resulting in lower than normal margins. Demand in the’regular market,’ such as North America and Europe, remained poor.
Aarti Industries’ profit increased by 2% year on year to Rs 149 crore for the quarter ending March 2023, while revenue increased by 15% to Rs 1,656 crore. However, revenue remained flat over time.
EBITDA margin fell to 15.2 percent from 17.3 percent QoQ and 18.2 percent year on year. The company’s net debt climbed to Rs 2700 crore from Rs 25o crore in September 2022.
Nuvama Institutional Equities is likewise rated Buy, with a target price of Rs 776. In a recent study, it stated, “Considering the revival in earnings and return ratios, we argue Aarti Industries offers a favourable risk-reward at 30x FY25E earnings per share.”
Meanwhile, Kotak Institutional Equities has a Neutral rating with a target price of Rs 557. It sees the comeback of Chinese competition in certain categories, such as agrochemicals, as an additional challenge.
HPL Electric and Power Limited increased by 9% after winning smart metre orders worth INR 204 crore, owing to government initiatives and widespread adoption of smart metering technologies.
According to the corporation, the orders would be filled at a faster rate in accordance with government-led smart metering initiatives.
It also indicated a pipeline of pending orders and an order book worth more than Rs 1500 crore.
“Government schemes have significantly aided the industry, and we are seeing tangible results.” Our solid pipeline of pending orders, along with our R&D and process automation initiatives, positions us well for ongoing growth and market leadership,” said Gautam Seth, Joint MD, HPL Electric and Power.
HPL Electric and Power Limited provides a variety of electric equipment items, including metering solutions, switchgear, lighting equipment, and wires and cables.
The company reported a 31.2 percent drop in overall net profit to Rs 6.36 crore in the third quarter of FY23, compared to Rs 9.3 crore in the same time the previous year.
Net sales increased 7.7 percent to Rs 301.59 crore, up from Rs 280 crore in Q3FY22. Earnings before interest, taxes, depreciation, and amortisation
The company’s market valuation has increased by more than 60% in the last year but has decreased by 7% in the last six months. As of 12:07 p.m., the scrip was trading 6.04 percent higher at INR 95.70, while the benchmark nifty was trading 0.029 percent higher at 18,270.45 points.
Pharmaceutical company Mankind Pharma Ltd. was established in 1991 and has been in business for 33 years. The business creates and produces a wide variety of pharmaceutical formulations for both acute and long-term therapeutic sectors. Additionally, it is well known in India for its consumer healthcare goods, particularly those marketed under the Prega News and Manforce brands. Among other things, its formulations brand addresses respiratory, cardiovascular, gastrointestinal, and anti-diabetic concerns.
The firm raised Rs 4,326 crore through its IPO, making it the greatest in a single year and the largest by a pharmaceutical company since Gland Pharma raised Rs 6,480 crore through its IPO in 2020. market | 10:00 AM IST, May 9, 2023. On Tuesday, May 9, the Mankind Pharma shares made a good launch on the NSE and BSE stock exchanges.
97% of Mankind Pharma’s revenues come from the domestic market, making India the primary market for the company. The company brings in more than Rs. 7,700 crore in annual sales and has morethan 22,000 employees on its payroll. Over 600 scientists work at Mankind Pharma’s R&D facility, where 54 ANDAs have previously been submitted. The business also has one of the biggest medical representative distribution networks in the Indian pharmaceutical industry. In the recent years, it has won a number of accolades.
Who is the Father of Pharma?
The father of Indian pharmacy education is Mahadeva Lal Schroff.
Who is the Mother of Pharma?
The first woman chemist in the United States was Elizabeth Gooking Greenleaf. She was a mother to twelve children and is regarded as the founder of pharmacy. In 1727, Elizabeth established her own apothecary business in Boston.
Who is the Biggest Pharmacist in India?
Since April 2009, Dr. Murtaza Khorakiwala has served as managing director of the Indian company Wockhardt Limited. The nation’s top research-based healthcare company, Wockhardt, has relevance in the industries of pharmaceuticals, biotechnology, and a network of cutting-edge Super Speciality Hospitals.
Which is the Largest Pharma city?
The biggest integrated pharmaceutical cluster in the world, Hyderabad Pharma City (HPC) is located in Hyderabad and is focused on R&D and manufacturing. Because of the cluster’s importance on the national and international levels, the Government of India has designated it as a National Investment and Manufacturing Zone (NIMZ).
Who is the Pharma king of the world?
Dillip Shanghvi’s THE KING OF THE PHARMACEUTICAL WORLD (The Money Makers) Kindle Edition.
Who is the Pharma queen of the world?
The executive director of Emcure Pharmaceuticals is Namita Thapar. An international pharmaceutical corporation with its headquarters in Pune, Maharashtra, is called Emcure Pharmaceuticals.
What is the Rank of Mankind Pharma in India?
Based on total sales, ManKind Pharma is the tenth-largest pharmaceutical firm in India.
What is the highlight of the IPO issues of Mankind Pharma Ltd
The IPO will involve the issuance of 4,00,58, 844 shares (400.59 lakh shares), wholly through an offer for sale (OFS) by the existing shareholders of the company, according to the Draught Red Herring Prospectus (DRHP) submitted with SEBI. The stock will be listed on the BSE and the NSE after the IPO, which will take place via the book-built approach.
Kotak Mahindra Capital Company, Axis Capital, IIFL Securities, Jefferies India, and JP Morgan India will manage the issuance. KFIN Technologies will serve as the issue’s registrar.
The promoter group, along with some of the/ early private equity and other institutional investors, would be the selling shareholders in the OFS. Here is a list of shareholders who are withdrawing a portion of their ownership through the OFS.
Name of Seller in OFS
Status of seller in OFS
Maximum Shares to be sold
Ramesh Juneja
Promoter shareholder
37,05,443 shares
Rajeev Juneja
Promoter shareholder
35,05,149 shares
Sheetal Arora
Promoter shareholder
28,04,119 shares
Cairnhill CIPEF Limited
Investor shareholder
174,05,559 shares
Cairnhill CGPE Limited
Investor shareholder
26,23,863 shares
Beige Limited
Investor shareholder
99,64,711 shares
Link Investment Trust
Investor shareholder
50,000 shares
The shares of Mankind Pharma Ltd., which has a par value of Rs. 1, will be listed on the NSE and the BSE following the IPO. The IPO, which is an offer for sale (OFS) of equity, only involves the transfer of shares from the promoters and early investors to the general public and will not cause any dilution of equity or EPS.
Key dates for Mankind Pharma Ltd IPO and How to apply?
The issue is available for subscription starting on April 21 and closing on April 25 (both days inclusive). On April 28, 2023, the basis for allocation will be finalised, and on May 2, 2023, the reimbursement process will begin. The stock will float on the NSE and the BSE on May 4th 2023, and the demat credits are anticipated to take place on May 3rd 2023. Following Avalon Technologies, Mankind Pharma will be the second mainboard IPO of FY24, and its success will be key in gauging the appetite for expensive IPOs.
Investors have two options for applying: through their current trading account or directly through their online banking account. Only the authorised list of self-certified syndicate banks (SCSB) can be used for this. In an ASBA application, the necessary amount is only debited at the time of allotment and is only temporarily stopped at the time of application. Investors may apply in the HNI/NII quota (above Rs2 lakh) or the retail quota (up to Rs 2 lakh per application). After pricing, minimum lot sizes will be known.
Financial Highlights of Mankind Pharma Ltd
The financial highlights for Mankind Pharma Ltd’s most recent three fiscal years are shown in the table below.
Details
FY22
FY21
FY20
Total Revenues
Rs7,977.58 cr
Rs6,385.38 cr
Rs5,975.65 cr
Revenue growth
24.94%
6.86%
–
Profit after tax (PAT)
Rs1,452.96 cr
Rs1,293.03 cr
Rs1,056.15 cr
PAT Margins
18.21%
20.25%
17.67%
Total Borrowings
Rs868.03 cr
Rs234.53 cr
Rs126.92 cr
Return on Assets
15.88%
20.29%
20.82%
Asset Turnover Ratio (X)
0.87X
1.00X
1.18x
What is GMP Mankind Pharma IPO
The grey market pricing(GMP) trading typically begins 4-5 days before the launch of the IPO and lasts until the listing day. We already have GMP data for the last five days for Mankind Pharma Ltd, which should provide a reasonable post-listing picture. The GMP is impacted by 2 things. First and foremost, the Nifty and Sensex levels as well as the general macro and IPO market circumstances have a significant impact on the GMP. Second, as a measure of investor fervour, the extent of IPO subscription across the retail and QIB categories also has a significant impact on the GMP.
Here, it’s important to keep in mind a little detail. The GMP is merely a well-liked informal price point and not an official price point. However, it has generally been found to be a reliable informal indicator of supply and demand for the IPO. As a result, it does provide a general indication of how the listing is likely to go and how the stock’s performance will be after the listing.
For the Mankind Pharma IPO for which the data is available, here is a brief description of GMP.
Date
GMP
9-May-2023
Rs. 121
8-May-2023
Rs. 140
7-May-2023
Rs. 113
6-May-2023
Rs. 113
5-May-2023
Rs. 97
4-May-2023
Rs. 103
3-May-2023
Rs. 79
2-May-2023
Rs. 82
1-May-2023
Rs. 96
30-Apr-2023
Rs. 88
29-Apr-2023
Rs. 83
28-Apr-2023
Rs. 84
27-Apr-2023
Rs. 60
26-Apr-2023
Rs. 28
25-Apr-2023
Rs. 80
24-Apr-2023
Rs. 90
23-Apr-2023
Rs. 71
22-Apr-2023
Rs. 71
21-Apr-2023
Rs. 65
20-Apr-2023
Rs. 74
19-Apr-2023
Rs. 74
18-Apr-2023
Rs. 95
17-Apr-2023
Rs. 96
16-Apr-2023
Rs. 75
15-Apr-2023
Rs. 82
How Does The GMP Impact The IPO Listings?
The grey market premium aids in determining whether investors are interested in a particular IPO depending on whether it is positive or negative.
Similar to stock pricing, the supply and demand for a stock determines the grey market premium for an IPO. If fewer subscriptions are received for a particular IPO than the number of shares offered in the IPO, the GMP will be lower. On the other hand, if there are more subscribers than there are shares being sold in the IPO, the GMP will be higher.
How is GMP relevant?
1.Retail investors claim that GMP is a very reliable indicator of how well an IPO will do. 2.The Kostak rate is the price at which an IPO application could be sold off for a set amount, whether or not allocation is gained. 3.The GMP is what decides how interested investors are in an IPO. 4.The Grey Market Premium’s ability to estimate the listing price with accuracy, however, cannot be guaranteed. It is one of the instruments to use, though, before making an IPO investment. 5.The grey market still functions effectively today because the trades are honoured in the vast majority of circumstances.
What are Pharma Stock in India 2023-
The “pharmacy of the world” label has been obtained by India. Even during the COVID-19 epidemic, the pharmaceutical industry was crucial in guaranteeing the uninterrupted availability of medications around the world.
India is rated third globally in terms of pharmaceutical product output by volume and fourteenth globally in terms of value. India has a 20% share in the volume of generic drugs supplied globally, making it the largest supplier in the world. Additionally, the nation is a major producer of vaccines.Shares in pharmaceutical companies are known as pharma stocks. These businesses engage in a variety of business activities, including the production of vaccines, generic drugs, over-the-counter medications, active pharmaceutical ingredients/bulk drugs, biosimilars, and biologics. The pharmaceutical sector has switched its emphasis over time from volume play to value creation. By 2030, the industry is predicted to be worth $130 billion. This suggests that businesses should increase their production capabilities while getting ready to pay for R&D expenditures.
Government programmes like production-linked incentive schemes, which increase domestic manufacturing capacity and promote high-value goods throughout the global supply chain, also benefit the sector.All of these elements are enticing investors to consider pharmaceutical stocks.
Best Pharma Stock in India 2023-
1. Sun Pharmaceutical Industries Ltd
The largest pharmaceutical company in India, Sun Pharma, with a market value of more than Rs 2 lakh crore. Given its significant position, it ranks among the best pharmaceutical stocks. With a global revenue of more than $5.1 billion, it is the fourth-largest specialty generic pharmaceutical firm in the world.
It has developed a range of specialised medications with patent protection for international markets. Additionally, its product line also offers OTC and generic drugs. Your choice of Sun Pharma as the best pharmaceutical stock to purchase in India in 2023 may be based on the company’s wide geographic reach and variety of product offerings.
2.Divi’s Laboratories Ltd
The top manufacturer of APIs (active pharmaceutical ingredients) is this Hyderabad-based business. The company has invested 2,800 crores of rupees in capital expenditures at its current facilities, which are anticipated to support the company’s expansion over the next 12 to 24 months. Take notice, growth investors searching for the greatest pharmaceutical stocks.
3.Dr Reddy’s Laboratories Ltd
Investors seeking for pharmaceutical stocks to purchase ought to consider this business, which aims to crack the top 5 in India. Although the company’s API business is a major pillar, its portfolio also includes generic and branded generic drugs, biologics, and OTC products.
4.Cipla Ltd
It has become one of the top pharmaceutical stocks to purchase in 2023. It has a wide range of products, and the generics business it operates in India accounts for 19% of domestic pharmaceutical sales.
5.Biocon Ltd
Biocon is a biopharmaceutical business situated in Bangalore. In 1978, Kiran Mazumdar-Shaw started it. The company creates branded formulations, biosimilars, innovative biologics, and generic active pharmaceutical components. More than 120 nations around the world, including the US and Europe, sell its products.
6.Apollo Hospitals
Despite not being a pharmaceutical company, Apollo is India’s largest hospital network. It was founded in 1983 and has a significant presence throughout the healthcare ecosystem, including among others, hospitals, pharmacies, primary care, and diagnostic clinics. Apollo Hospital is now one of the top healthcare stocks as a result.
Investors can also search for more businesses like Zydus Lifesciences, Lupin, Abbott India, Alkem Laboratories, and Torrent Pharmaceuticals Ltd. while looking for the finest pharmaceutical stocks to buy.
Which is number 1 Pharma Company?
Sun Pharmaceutical Industries Ltd
As of March 31, 2023, Sun Pharmaceutical Industries Ltd. is the largest pharmaceutical firm in India. For the fiscal year that ended in March 2022 (FY2022), the business recorded revenues of $5,235 million, an increase of 15.4% over FY2021.
Who are the 3 big in Pharma?
The “Big Three”—AmerisourceBergen, Cardinal Health, and McKesson—control the wholesale (primary care) and generic drug distribution markets, and these businesses are also distributing more and more speciality medications.
What are the top 5 Pharmaceutical Companies ?
displaying 10 of 25 businesses. According to market capitalization as of March 31, 2023, Johnson & Johnson, Eli Lilly and Co., AbbVie Inc., Merck & Co. Inc., and Pfizer Inc. are the top 5 pharmaceutical corporations in the US.
Which Pharma Company gives you the Highest Salary?
Some of the top pharmaceutical firms in India are Dr. Reddy’s Laboratories, Sun Pharmaceuticals, Aurobindo, Mylan Labs, Laurus Laboratories, NATCO Pharma, Divis Labs, Gland Pharma, Santha Biotech, Indian Immunological, Cadila, and Aventis.
Benefits of Investing in Pharma Stock 2023
1. Growth plus value
Pharma stocks are renowned for being both growth and value companies, bringing stability and profits. Given the rise in non-communicable diseases including diabetes and hypertension as well as chronic diseases like these, the sector is expected to expand due to increased demand in the domestic market. Many pharmaceutical firms took action in 2022 to increase their field capacity in the domestic market, which is anticipated to increase penetration during the next two to three years.
2.High profit margin
The average industry profit margin is high, and the majority of businesses also have substantial levels of free cash flow. Additionally, pharmaceutical firms have a history of paying dividends on time. When these elements are considered collectively, pharmaceutical stock investors would see larger returns.
3. Diversification and defensive
Because their revenues are unrelated to economic success, pharmaceutical companies are renowned for being defensive investments. Simply put, individuals will continue to purchase the necessary medications even in a recession. Pharma businesses are concentrating on balancing local and export market revenues, despite the possibility that pricing pressure, particularly in the important US market, could have an impact. The protective character of pharmaceutical stocks makes them a potential asset for the portfolio.
If the Nifty50 maintains firmly above 17,800, it can march towards former swing highs of 17,860 and 17,900-18,000, where some profit taking is possible, while 17,500-17,600 remain critical support levels, according to experts.
The pattern shows a tug of war between bulls and bears for further market direction, as the index has failed to close above the 17,800 level.
The index opened higher at 17,762 and fell to an intraday low of 17,717 before recouping losses near the conclusion of the first hour and trading upward for the remainder of the session. It closed 26 points higher at 17,769, continuing the rise and making higher highs and lower lows for the second consecutive session, which is a good sign.
As a result, if the index maintains firmly above 17,800, the Nifty50 can march towards the earlier swing highs of 17,860 and 17,900-18,000, where some profit taking is possible, although 17,500-17,600 remain critical support levels, according to experts.
If the index falls below 17,720 and retests the level of 17,670-17,625, a slight intraday correction is conceivable,” said Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities.
On the other hand, a new uptrend wave is feasible only after the rejection of 17,820, and post-breakout, the odds of the index reaching 17,900-17,925 would improve, he said.
According to option data, the Nifty50 may trade in the 17,500 to 18,000 region in the next sessions.
which might provide immediate support for the Nifty, followed by the 17,600 strike, with Put writing at the 17,800 strike, then the 17,500 strike.
In the later half of the day, it remained consolidative in a narrow range of 150 points between 42,650 and 42,800 levels. Finally, it closed at 42,679, up 43 points, with a tiny body bearish candlestick pattern on the daily charts.
According to Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services, it now has to hold above 42,500 levels to rise up to 43,000, then 43,200 levels, while on the downside, supports have gone higher to 42,250, then 42,000 levels.
According to Rahul Ghose, Founder & CEO of Hedged, a breakthrough in Bank Nifty above 43,200 would also confirm an Inverse Head and Shoulder pattern with a first objective of 44,000.
Bank of Baroda and ABB India were removed from the largecap portfolio. Devyani International has been withdrawn from the midcap portfolio.
Bank of Baroda, ABB India, and Devyani International have been removed from Kotak Institutional Equities’ largecap and midcap portfolios, while Canara Bank and Adani Ports & SEZ have been added.
The brokerage business said it withdrew Bank of Baroda, which had a weight of 160 basis points, from its largecap portfolio due to its exceptional performance over the last six and twelve months, when it climbed 27 percent and 73 percent, respectively.
Canara Bank has replaced Bank of Baroda with a weight of 150 basis points. Canara Bank was once part of its midcap portfolio. One basis point equals one tenth of a percentage point.
“The portfolio has a good exposure to PSU banks through SBI and Canara Bank.” SBI trades at 1.1X FY2024E BV after deducting the value of its partners and subsidiaries.
Canara Bank is now trading at 0.9X FY2024E BV.
Given similar return profiles and values, there is not much to choose amongst the main PSU banks (except SBI) at the moment,” Kotak stated in its analysis.
The brokerage company also withdrew ABB India, which had a 200-bps weight in its largecap portfolio, since it believed the stock had exceptionally rich values. It added Adani Port SEZ with a weight of 150 bps.
“We remain impressed with ABB’s fundamentals and remain optimistic about the investment cycle.”
ABB’s valuations assume long-term robust revenue growth and margins.
According to Kotak, Adani Port’s stock is trading at 12.3X FY2024E EBITDA and 10.2X FY2025E EBITDA. The stock is trading substantially below its fundamental worth (its 12-month Fair worth of Rs 810) and has down 10% since January 24, 2023, the day before the publication of a short-seller report on Adani Group.
“We remove Devyani International from the mid-cap model portfolio, given the stock’s 21% gain in the last month, which has pushed the stock price well above our 12-month Fair Value of Rs 160,” the company said of the KFC and Pizza Hut franchise.
When the RBI discovered the same and asked the accused to restore the amount to the depositors, the accused answered to the RBI that they have repaid the money to the depositors, but an ED probe revealed that there is no proof of payback or no KYC of the depositors, the ED claimed.
Manappuram Finance Ltd’s shares fell 14% in early trade, trading at Rs 103 on the BSE at 9:32 a.m., after the Enforcement Directorate froze the assets worth Rs 143 crore of the major Kerala-based NBFC’s MD and CEO VP Nandakumar in a money laundering case.
According to the ED, the proceeds of the crime were “diverted and invested” by Nandakumar into immovable assets in his name, the names of his spouse and children, and shares of Manappuram Finance Ltd.
The frozen assets include deposits in eight bank accounts, investments in listed shares, and shares of Manappuram Finance Limited, according to the agency. Various “incriminating” documents demonstrating money laundering, as well as property documents for 60 immovable properties, were also seized during the searches.
It stated that “evidence” of money laundering and large-scale cash transactions in the form of public deposits carried out without RBI authorisation by Nandakumar through his proprietary entity Manappuram Agro Farms (MAGRO) had been collected.
The deposits were “illegally” acquired by Nandakumar through some of the staff of Manappuram Finance Limited, a listed firm.
“The outstanding illegally collected deposits, which are crime proceeds, total Rs 143 crore.”
the accused answered to the RBI that they had repaid the money to the depositors, but an ED probe revealed that “there is no proof of repayment or no KYC of the depositors,” the ED claimed.
Deposits totaling Rs 53 crore are reported to have been returned in cash, but with no proof of repayment or KYC, according to the report.
The role of Manappuram Finance Limited’s chief finance officer (CFO) and other staff accused of assisting in money laundering is being scrutinised, according to the agency.
Cholamandalam Investment and Finance Company, a member of the Murugappa Group, increased by over 9% on May 4 following the release of better-than-anticipated profits.
On May 4, after the company released higher-than-expected earnings, shares of Cholamandalam Investment and Finance Company, a member of the Murugappa Group, increased by almost 9%. This accomplishment was substantially enhanced by the rapid growth in disbursals and collections.
Cholamandalam Investment was trading at Rs 960 on the BSE at 9.30 a.m. on Thursday, up 8.3 percent from its previous finish, while the Sensex was up 0.11 percent to 61,262.39 points.
JP Morgan has upgraded the company to ‘overweight’ from ‘underweight’ following solid earnings and boosted its target price to Rs 1,020 from Rs 700 per share. Macquarie has upgraded the stock to ‘outperform’ and raised the target price to Rs 860 per share.
According to Jefferies India, Cholamandalam Investment is their top pick, with a target price of Rs 900 per share, unchanged from its current market price.
However, Elara Securities downgraded the stock to ‘accumulate’ from ‘buy’ and maintained a target price of Rs 930 per share, up 5% from its current market price.
During the March quarter, the company’s standalone net profit increased by 24% to Rs 853 crore, up from Rs 690 crore the previous year.
It also announced that it has increased its market share in both auto finance and other business areas. Total assets under management increased by 36% to Rs 112,782 crore in FY23, up from Rs 82,904 crore in FY22.
Elara, a brokerage firm, forecasts a 25% AUM CAGR in FY23-25, citing macro tailwinds and new growth engines in place.
The ratio of Stage 3 (S3) assets reduced by 50 basis points (bps) QoQ, reaching 3.0 percent, while the ratio of Gross Non-Performing Assets (GNPA) decreased by 74 bps, reaching 4.6 percent (based on Income Recognition and Asset Classification or IRAC). Furthermore, credit costs fell by 25 basis points year on year.
“Taking advantage of macro tailwinds, CIFC has been a consistent outperformer, striking a fine balance between healthy growth and NIM management.
Expect a 25% AUM and a 22% earnings CAGR in FY23-25, with an average NIM of 7% and a healthy return profile (2.6 percent ROA/20% ROE).
“CIFC will now be reckoned as a steady-state compounder story, commanding a rich multiple,” Elara Securities stated in a recent note.
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The Nifty50 is likely to stay in the region of 18,000 to 18,200 in the near future, according to Rupak De of LKP Securities. He suggested that the index may climb towards 18,500 with a strong advance above 18,200.
After a one-way 600-point run from 17,550 to 18,150, the Nifty50 dipped for the first time in seven straight sessions, but concluded with modest gains on May 3.
Technology, metal, oil & gas, and a few equities in the banking & financial services industry have all experienced corrections.
As a result of session-long volatility, the index, which had started the day at 18,114, was controlled by bears. On the daily charts, a bearish candle with a lower shadow was formed as it closed at 18,090, down 58 points.
After a six-day rally and in anticipation of the outcome of the Federal Reserve’s two-day meeting tonight, the profit taking and cautious trading followed the predicted patterns.
The psychological 18,000-mark is anticipated to act as a crucial area for further direction, so if it breaks that level, then 17,900-17,800 can be possible levels on the downside, whereas on the other side, 18,200-18,500 zone on the higher side can be seen, experts said. Given the trend, this is just a normal retreat.
After a cautious beginning as investors awaited the Fed’s rate announcement, the Nifty remained largely rangebound. A little candle with a red body has formed on the daily chart. As long as the index continues over 18,000, sentiment will remain optimistic, according to Rupak De, Senior Technical Analyst at LKP Securities.
He believes that the index will likely stay in the 18,000–18,200 region in the near future.
Prior to weekly expiry, the Nifty50 saw maximum Call open interest at the 18,200 strike, which is anticipated to be a significant hurdle moving forward. This was followed by strikes between 18,100 and 18,300, with notable Call writing at 18,100 and 18,200 strikes.
The 18,000 strike, which is likely to provide immediate support for the index, had the highest open interest on the put side, followed by the 17,900 and 17,800 strikes.
“The open interest (OI) statistics for both the indices (Nifty50 and Bank Nifty) going into tomorrow’s expiry are mixed, with the Nifty OI data showing more Call open interest and the Bank Nifty OI data showing more Put writing.
From 17,850 to 17,500 odd levels, there is strong demand for the Nifty index.
On a daily basis, the index has developed a respectable bullish candlestick pattern, and the momentum indicator MACD (moving average convergence divergence) has shown a great positive crossover, indicating that the trend is continuing upward even though there has been a little correction today.
“At 43,150, immediate support is apparent. A move above 43,500, though, might spark a surge towards 44,000, he continued.
The company’s top executive warned that, in the worst event, various assets would be shut down as they approached end-of-life if the UK government did not support a green transition.
Chief Executive Officer and Managing Director of Tata Steel TV Narendran
The assets are nearing the end of their useful lives and cannot last for much longer. In a year or two, we will need to make a decision, according to TV Narendran, Tata Steel’s CEO and managing director.
Financial information on the last UK Government proposal was withheld by Tata Steel. In the past, media sources have estimated it to be worth £600 million for two businesses, including Tata Steel UK.
Tata Steel stated in a May 2 note for its March quarter financial results that it was closely monitoring the progress of discussions with the UK government because it was still unclear, based on initial and subsequent discussions, whether adequate support for the decarbonization strategy would be reached.
We are unable to finance the shift due to the company’s cash flow. The government has responded with a package that is not even close to what we are requesting, therefore discussions are still ongoing, according to Narendran in the interview from May 3.
The corporation receiving the package it seeks would represent the assets’ best-case scenario, he continued. The UK has a glut of scrap and is exporting it, which is our main argument.
Why shouldn’t a nation use that (junk) in the production of steel? he said.
If there was no package, he continued, “…we will have to close them as and when separate assets come to end-of-life. If an asset is unsafe, we cannot manage it.
It seems obvious that more upstream assets, particularly those that are vital, will expire over the next two years.
In FY22, 3.5 million tonnes of liquid steel were produced at Tata Steel’s Welsh Port Talbot Steel Works, which is operating at a loss.
