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Currencies Trading Ideas & Charts

Despite India’s lowest coronavirus mortality since April, the rupee bears recover 75.50

Even as the death toll in India declines, market mood dwindles amid covid troubles

The official covid data for India, obtained from the Health Ministry early Monday, indicated a 39,796 daily increase in coronavirus infections, bringing the total to 30.59 million. The bulletin also cites 723 covid-related deaths the day before, the lowest number since April 2008, bringing the overall number of fatalities to 402,278.

Statements from Barclays and Nomura predicting an increase in the current budget deficit could also be fuelling the quotation (CAD). According to Nomura, the CAD will grow from 0.9 percent of GDP in FY 2021 to 1.5 percent of GDP in FY 2022. Barclays is aiming for a 1.1 percent CAD figure, which appears to be a tad bullish on Indian economics.

USD/INR pair has reversed Friday’s decline from late-April highs.

Despite Friday’s mixed US jobs figures, a negative attitude and uncertainty over the Fed’s next moves keep the US dollar bought versus key currencies. However, S&P 500 futures are down 0.15 percent, while markets in Asia-Pacific are down somewhat as of press time.

Moving on, a prolonged holidays in the United States and a light schedule elsewhere may hold the USD/INR near the mid-72.00s. Any unexpected benefits from India, on the other hand, should not be overlooked.

Despite the fact that the mid-April lows test USD/INR bulls near 74.50-55, also short-term sellers are less inclined to take risks entry until the price stays above the 10-DMA level of 74.32. Overall, the USD/INR is forming a bullish rounding bottom chart pattern on the daily chart, implying additional upward towards the yearly top near 75.65.

Source: https://www.fxstreet.com/

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
ipo IPO Watch

Tatva Chintan Pharma, Chemplast Sanmar Chem receives approval from the SEBI for IPOs

According to a Monday update with Sebi, Chemplast Sanmar and Tatva Chintan Pharma Chem acquired Sebi’s findings on July 2 and June 30, respectively. Any firm planning to conduct a public offering, such as an initial public offering (IPO), a follow-on public offering (FPO), or a rights issue must adhere to Sebi’s guidelines.

According to the draught papers, Chemplast Sanmar’s Rs 3,500 crore IPO includes a Rs 1,500 crore fresh issue of equity shares and a Rs 2,000 crore offer for sale. Sanmar Holdings Ltd and Sanmar Engineering Services Ltd are selling shares worth Rs 1,850 crore and Rs 150 crore, respectively, in the offer for sale.

About Chemplast Sanmar

Chemplast Sanmar is a prominent specialised chemicals company that specialises in speciality paste PVC (polyvinyl chloride) resin and bespoke manufacturing of raw ingredients and intermediates for the pharmaceutical, agrochemical, and fine chemicals industries. The net proceeds would be used to pay for the early redemption of the company’s non-convertible debentures (NCDs) to the tune of Rs 1,238.25 crore. The money will also be put to good use in the company.

About Tatva Chintan Pharma Chem

According to the draft red herring prospectus, Tatva Chintan Pharma Chem’s IPO consists of a fresh issue of equity shares worth Rs 225 crore and an offer of sale by current founders and shareholders for Rs 225 crore .The proceeds from the new offer will be utilised to pay capital expenditures for the company’s Dahej manufacturing facility, as well as upgrades to its R&D facility in Vadodara and other general business reasons.

Source; Economic times

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Property

Initiating Coverage of Pexa with a AUD 13.20 Fair Value Estimate and a Wide Moat Rating

Pexa’s competitive advantages will be undermined somewhat following the introduction of interoperability in 2023. However, this will only impact its network effect, with customer switching costs likely to remain robust.

In turn, Pexa’s economic moat should enable relatively high investment returns and profit margins and the asset-light business model should enable strong cash generation and ultimately sustainable franked dividends.

Despite Pexa’s attractive attributes, the shares look expensive. Our base-case equity value of AUD 2.2 billion, or AUD 13.20 per share is 23% below the market price of AUD 17.15.

The strong market price is due to a combination of Pexa’s highly defensive annuity-style earnings coupled with record low interest rates, investor excitement about Pexa’s growth options, and recent real estate market strength. Link Group (ASX:LNK), which owns 43% of Pexa, offers cheaper exposure to Pexa.

Company Profile

Pexa is the first electronic conveyancing platform for real estate in Australia and derives revenues by charging fees to facilitate real estate transactions over its network. The emergence of electronic conveyancing creates a number of efficiencies and replaces the historical labour-intensive process which was vulnerable to errors. Having achieved dominance of the Australian electronic conveyancing market, Pexa is looking to expand overseas and replicate its success in international locations. The company was founded in 2010 by a group of Australian state governments with Australia’s “big four” banks beginning to transact on the platform shortly after.

(Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.