Rolling Back of GST Hike, Stabilise Cotton Price are key Expectations of the Textile Sector from Union Budget 2022 – SVP Global Textiles Ltd.

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Indian Textile sector has bounced back very strongly post unlock from COVID-19 slump. Slowdown in Chinese economy, anti-China sentiment has helped Indian Textile manufacturers and exporters to grab a bigger share in the global textile business and strengthen its presence in US and European Union markets. The textile industry feels that it is the opportune time for the Centre to provide appropriate support to the industry to fuel its next phase of growth and expect it is address in the upcoming Union Budget 2022. Maj Gen OP Gulia, SM, VSM (retd) CEO, SVP Global Textiles Ltd.Maj Gen OP Gulia, SM, VSM (retd) CEO, SVP Global Textiles Ltd., said, “Rolling back of GST hike, stable cotton prices, simplifying CAROTAR 2020 and incentivising use of renewal energy are some of the key expectations of the textile sector from the upcoming Union Budget of 2022. Despite concerns expressed by the industry, the Govt increased the GST on textiles from 5% to 12%, to be effective from 1 January, 2022. This will have a negative effect on the growth of the Textile Industry which contributes a major share in employment generation and export earnings. It is requested to keep the GST rates at 5% only.”India has advantage of being the largest producer of raw materials including cotton and polyester along with skilled labour, high-tech machinery. It also has the second-largest yarn-spinning capacity in the world (after China), accounting for approximately 20 percent of the world’s spindle capacity.”The cotton is the major raw ingredient (60%) and the prices of cotton have skyrocketed since the last 11 seasons. We request the Govt to stabilise the cotton prices. The Govt may set up a cotton price stabilisation fund scheme comprising 5% interest subvention or loan at NABARD rate of interest, reduction in margin money from 25% to 10% and increase in the cotton working capital limit from 3 months to 9 months,” said Mr. OP Gulia.India is the second largest textile exporter in the world after China. Indias textile industry contributes 14 per cent of the industry production and 12 per cent to the countrys export earnings. Recently exporters are facing difficulty in clearance of import goods from FTA Countries in the wake of implementation of Customs Administration of Rules of Origin under Trade Agreements (CAROTAR), 2020. The industry expects Govt should simplify the clearance of import goods from FTA Countries.”Textile industry is the major consumer of power. To encourage use of renewable power, the Govt must encourage and incentivise investment in green energy and eco-friendly technologies by offering tax benefits to the manufacturers. The China plus One is a big opportunity for India to grab. The world textile sector is going through an overhaul. India has the potential and with requisite Govt support it can fill the vacuum and attain a leadership role in Textile and Apparel sector,” said Maj Gen OP Gulia, SM, VSM (retd) CEO, SVP Global Textiles Ltd.

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Share Market Weekly Outlook for Next Week

Share Market Weekly Outlook for Next Week

Indian market plummets for the second consecutive week, seems bulls losing their upper hands in the coming days. Index reacted violently grasping Indian as well as global factors throughout the past week.

High oil prices, uncertainty amid Ukraine war, mounting inflation and prospects of aggressive monetary tightening by the U.S. Fed all contributed to poor sentiment. Undoubtedly, the biggest negative sentiment was led by continued inflation all over the world. Sensex sheds 2041.96 points or 3.72 percent while Nifty losses 629.10 points or 3.83 percent in a week. Simultaneously, Bank nifty also lost control over the bears’ dominance. Nonetheless, no sector ended in green while Nifty Energy lost 10.56 percent and remained the prime laggard followed by Nifty PSE, and Nifty Realty losing 5 to 6 percent in a week.

In Nifty stock, BAJAJ AUTO gained 4.07% while TATASTEEL lost 14.54% on a weekly basis. INDIA VIX closes at 23.48 suggesting no sign of relief in volatility. Whenever the market tanks 20% from its peak, it is technically termed as the bear market. Currently the Indian market remains at the edge of 15 percent fall. Technically, on a weekly chart, the index has formed a long bearish candle confirming change in trend from positive to negative side.

Index has also faced resistance around 16300 levels throughout the week. Indicators as RSI still remains in the oversold zone and MACD also indicating no sign of reversal. In the daily chart lower low- lower high formation suggests no major pullback is expected. Coming to the OI monthly Data, on the call side the highest OI witnessed was 16000 followed by 16500 strike price while on the put side, the highest OI was at 15500 followed by 15000 strike price. Overall, Nifty is having support at 15500 mark while on the upside 16100 followed by 16300 may act as an immediate resistance. While Banknifty has support around 32000 while resistance is placed at 34300 on weekly chart.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India

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Share Market Closing Bell: Closing Bell: Nifty ends below 16,200, Sensex pares losses to close 276 pts lower

Share Market Closing Bell: Closing Bell: Nifty ends below 16,200, Sensex pares losses to close 276 pts lower

It was a volatile trading session after a positive opening, Nifty made an intraday high at 16318.75 level but showed downside momentum and tested the 16000 mark and managed to close at 16167.10 level with a loss of 72.95 points.

However, Bank nifty closed the session at 34693.15 level with a gain of 210.50 points. 31 out of Nifty 50 stocks ended in Red which suggest broad based selling. Among sectors, Bank, Commodities indices up by 0.5-0.3 percent each, while IT and Auto indices down by 1 percent each.

Stocks like ONGC, AXISBANK, INDUSINDBK, CIPLA & HDFC ended in green SHREECEM, BAJAJFINSV, LT & BAJFINANCE were the prime laggards.Technically, The Nifty has formed a Hammer Kind of candlestick pattern on a daily chart which indicates value buying from lower levels. Moreover, Nifty has taken support from the lower band of Bollinger on a Four- hourly chart which is a sign of short-term reversal in the counter.

However, the momentum indicators RSI bounced from oversold zone as well as divergence has been seen on an hourly chart which indicates bounce back momentum. The Nifty may find Strong support around 16000 levels, while on the upside 16400 may act as an immediate hurdle for the Nifty crossing above the same can attract fresh buying. On the other hand, Bank nifty has support at 33800 levels while resistance at 35500 levels.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India