By admin       2017-01-10

January 09, 2017 - The World's second-largest producer of cotton, India, has witnessed a solid increase in stocks by 10% in the past two weeks period owing to falling supplies in the spot markets, and drop in exports by mills. With farmers holding the crop due to lack of cash inflow in the market, post the recent demonetisation move, prices are expected to remain bullish. On Saturday, Shankar 6 cotton prices in the Rajkot mandi were trading at Rs 40,000-41,000 per candy of 356 kg each, from Rs 37,500 -38,000 per candy, a fortnight ago. While domestic demand and prices remain firm, everyone is trying to meet their export shipment deadlines. We expect a bullish sentiment to prevail. Moreover, traders said that we could also see an upward trend of 10% in the coming days with exports and domestic demand picking up amid fall in arrivals in mandis. Further, news from Cotton Corporation of India stating that it will procure 1520 lakh bales of 170 kg each of cotton in the year ahead, too has supported the prices. Currently, major purchases were happening from Gujarat, Maharashtra, Andhra Pradesh, Punjab and Karnataka. The continuous increase in the cotton prices has affected the Textile stocks, like Arvind Mills which is down by 0.28%, Raymond Limited is down by 1.52% and Mafatlal Industries is down by 1.79%.Stock view: Arvind Ltd is currently trading at Rs 357.95, down by Rs 3.1 or 0.86% from its previous closing of Rs 361.05 on the BSE. The scrip opened at Rs 360.8 and has touched a high and low of Rs 362.8 and Rs 357.5 respectively. So far 531981(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 9328.05 crore. The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 423.6 on 01-Nov-2016 and a 52 week low of Rs 235.9 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs 368.8 and Rs 351.1 respectively. The promoters holding in the company stood at 43.76 % while Institutions and Non-Institutions held 38.7 % and 17.53 % respectively. The stock is currently trading above its 50 DMA.

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