Maruti Suzuki: Yen at 34-Year Low After BoJ Ends Negative Rates; 3 Indian Stocks to Benefit
The Bank of Japan ending negative rates is benefitted for 3 Indian- Japanese Stocks. Maruti Suzuki, Lumax and JTEKT company. Their revenue given for Parent company as Yen, So Depreciation of Yen is Favored for these 3 companies in INR Profit.
Recently, the Japanese yen experienced a significant downturn, hitting a 34-year low following the decision by the Bank of Japan (BoJ) to terminate negative interest rates. Typically, a currency strengthens in response to rate hikes, as higher interest rates attract investors seeking returns on debt investments.
However, the yen’s situation diverges from this norm due to the central bank’s officials adopting a more dovish stance. This suggests that monetary policy will likely remain accommodating, which has exerted downward pressure on the yen.
According to Kunal Sodhani from Shinhan Bank, the BoJ’s statement implies that the move isn’t indicative of the beginning of an aggressive rate hike cycle, despite expectations of significant wage inflation. Consequently, investors are selling the yen in favor of the dollar due to the substantial interest rate differential, with the BoJ pursuing an ultra-loose monetary policy compared to the US Federal Reserve’s tighter stance.
MARUTI SUZUKI Market Price is moving in Ascending channel and market has reached higher high area of the channel
This recent decline marks the yen’s third dip to as low as 152 against the dollar within two years. On previous occasions, such lows prompted robust and sustained reversals. Therefore, market anticipation of potential BoJ intervention around these levels persists. Sodhani also notes technical indicators suggesting a possible rise to 154.00 levels for the USD-JPY pair, but a close below 149.20 could signal a return to consolidation.
The weakening yen presents opportunities for certain sectors in India. Auto ancillary firms supplying components to Japanese automakers and Indian banks with yen exposure may benefit from exchange rate advantages resulting from a depreciating yen. Moreover, Indian businesses reliant on imports from Japan could enjoy reduced costs due to the softer yen, potentially benefiting sectors such as electronics, machinery, automotive, chemicals, and FMCG.
This favorable currency condition extends to collaborations between Indian and Japanese companies, particularly in the automotive industry. A weaker yen makes Japanese products relatively cheaper in international markets, potentially boosting the competitiveness of Indian companies like Maruti Suzuki, which pays royalty to its Japanese parent company and conducts transactions in yen.
For instance, Maruti Suzuki, heavily reliant on Japanese collaborations, saw its shares rise by 3 percent following the yen’s slump. Similarly, companies like Lumax Industries and JTEKT India, involved in collaborations with Japanese entities, stand to benefit from reduced costs and improved financial performance due to the yen’s depreciation. This positive impact on operational efficiency and financial performance directly translates into enhanced stock values in the automotive and related sectors, aligning with Japan’s economic fluctuations.
BAJAJ FINANCE: “Bajaj Finance Surges 4.5% Ahead of Housing Finance Arm’s IPO”
The Bajaj Finance has informed exchange they are going to list out Bajaj Housing finance as separate IPO by September 2025 and Value of rising from $900 million or $1 Billion.
BAJAJ FINANCE LTD Market Price is moving in box pattern and market has fallen from the resistance area of the pattern
On March 28, shares of Bajaj Finance experienced a notable surge, climbing by 4.5%. This upward movement came in response to reports indicating that its subsidiary, Bajaj Housing Finance, was gearing up for an initial public offering (IPO) with a targeted valuation ranging between $9 billion to $10 billion.
Moneycontrol was the first to report on March 28 about Bajaj Housing Finance’s preliminary discussions with various investment banks regarding the potential IPO. The objective behind this move is to align with regulatory guidelines, particularly the Reserve Bank of India’s (RBI) mandate for “upper layer” Non-Banking Financial Companies (NBFCs) to list within three years of notification. As per the current regulatory timeline set by the RBI, Bajaj Housing Finance is required to list by September 2025.
It’s worth noting that while the IPO plans are underway, sources contacted by Moneycontrol have indicated that it’s still in the early stages. The firm is contemplating raising funds ranging from $900 million to $1 billion through the IPO, while keeping in mind the minimum dilution and the expected valuation range.
AMBUJA cements: “Adani Family Boosts Ambuja Cements Stake to 66.7% with Rs 6,661 Crore Investment”
The Adani Family infused Rs.6661 cr in the Ambuja cements, already Rs.5000 crore invested in 2022, Now Rs.11661 Cr infused in this company and 66.7% percent holder of company is Adani family. This investment main purpose is cement manufacturing increasing to 140 million tonnes Per annum by 2028.
AMBUJA CEMENTS LTD Market Price is moving in Ascending channel and market has reached higher high area of the channel
The Adani family, known for their prominence as the promoters of Ambuja Cements, has recently infused a substantial sum of Rs 6,661 crore into the company’s operations. This injection of funds has had a tangible impact, evident in the near 2% rise in the company’s stock following the announcement. Consequently, the Adani family has seen their ownership stake in Ambuja Cements surge by 3.6%, now standing at an impressive 66.7%.
This recent financial maneuver follows a prior investment made by the Adani family in October 2022, wherein they injected Rs 5,000 crore into Ambuja Cements through warrants. In total, their investments in Ambuja have now reached a significant sum of Rs 11,661 crore, marking a substantial commitment to the company’s growth trajectory since they assumed control from Holcim.
In an official statement released by Ambuja Cements, it was highlighted that this infusion of funds serves as a pivotal step towards the realization of the company’s ambitious expansion plans. One of the key objectives is to ramp up the group’s cement capacity to an impressive 140 million tonnes per annum by the year 2028.
Moreover, the additional financial resources will be strategically allocated towards initiatives aimed at enhancing operational efficiency, debottlenecking capex to ensure scalability, and optimizing efficiencies across various facets of the business, including resources and the supply chain. These efforts are poised to fortify Ambuja Cements’ competitive positioning in the market and reinforce its capabilities to capitalize on emerging opportunities.
Furthermore, Ambuja Cements emphasized that the infusion of funds will not only bolster the company’s financial standing but also empower it to pursue its growth agenda with vigor. It will provide the necessary impetus to undertake innovative measures and integrate advanced technologies to enhance product offerings, thereby aligning with the evolving needs and demands of the sector.
In essence, the significant investment from the Adani family signifies a strong vote of confidence in Ambuja Cements’ future prospects. It underscores their commitment to fostering sustained growth and innovation within the company, ultimately positioning it as a formidable player in the competitive landscape of the cement industry.
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