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The rupee appreciated 11 paise against the dollar this evening, closing at Rs 83.36.At the end of trading, BSE Sensex closed at 73,648.62, up 560.29 points or 0.77%. Whereas NSE's 50-share index Nifty closed at 22,336.40, up 189.40 points or 0.86%.Read more : - Adverse Economic Policies Force Closure of Rajapalayam Spinning Mills, Leaving Hundreds Jobless

In early trade, the rupee gains 5 paise to 83.39 against the US dollar.The rupee appreciated 5 paise to 83.39 against the US dollar in early trade on Monday, supported by a firm trend in domestic equities. Forex traders said the local unit gained ground as the American currency and crude oil prices retreated from their elevated levels.Sensex, Nifty jump at open as global sentiment improves, Asian markets firm upThe NSE Nifty 50 opens up by 189.90 points or 0.86% at 22,336.90, while the BSE Sensex jumps 578.18 points or 0.79% to 73,666.51 in the opening trade. The broader indices opened in positive territory. Bank Nifty index opens higher by 571.55 points or 1.20% to settle at 48,145.70.Read more :-  Outlook for Cotton Spinners Set to Improve Amid Softening Cotton Prices

The rupee appreciated 7 paise against the dollar this evening, closing at Rs 83.47.At the end of trading, BSE Sensex closed at 73,088.33, up 599.34 points or 0.83%. Whereas NSE's 50-share index Nifty closed at 22,147.00, up 151.15 points or 0.69%.Read more :- Outlook for Cotton Spinners Set to Improve Amid Softening Cotton Prices

In early trade, the rupee drops 6 paise to 83.58 against the US dollar.The rupee depreciated 6 paise to 83.58 against the US dollar in early trade on Friday, weighed down by a negative trend in domestic equities and elevated crude oil prices.Sensex, Nifty extend losses to 5th day as Israel's fresh 'attack' on Iran spooks investorsIndian benchmark indices, Sensex and Nifty, opened significantly lower, tracking Asian markets amidst escalating geopolitical tensions in the Middle East. The BSE Sensex fell 583.09 points to 71,905.91, and the NSE Nifty declined 181.35 points to 21,814.50 in early trade.Read More :> Outlook for Cotton Spinners Set to Improve Amid Softening Cotton Prices

Rupee steady to close at 83.54 against US dollarSensex ends down 450pts, Nifty at 21,995Sensex, which had opened higher at 73,183.10, climbed to an intraday high of 73,473.05. But unable to keep the momentum going, the 30-stock benchmark index shed its gains to touch a low of 72,365.67 in the later hours of the trading session. At close, the BSE Sensex had shed 454.25 points, or 0.62%, to close at 72,488.99.

Amidst declining cotton prices, the outlook for cotton spinners is expected to improve.Market DynamicsRecent developments in the global cotton market have indicated a decrease in cotton futures, primarily driven by a reduced uptake from major consumer countries like China. This downturn in demand has prompted multinational traders to reduce their stockpiles, subsequently lowering domestic cotton prices by approximately 8-9% from their recent peak levels.Impact on Domestic Cotton SpinnersDomestic cotton spinners, who have faced challenging quarters marked by low yarn sales and elevated cotton prices impacting their profitability, are now seeing a silver lining. With cotton prices declining, these spinners are poised for a potential turnaround in their financial performance. The easing of cotton prices is particularly timely, coinciding with a recovery in demand for readymade garments and home textiles both locally and in export markets.Industry ProjectionsAccording to a Crisil Research analysis of 95 cotton yarn spinners, which represent 35-40% of industry revenue, it is forecasted that yarn volumes could witness a growth of 4-6% year-over-year in FY2025. This growth is anticipated due to increased capacity utilization and sustained demand, suggesting a promising horizon for the industry.Profitability and Margin ImprovementThe softening of cotton prices is expected to enhance yarn mills' profit margins significantly. Crisil’s report highlights an improvement in cotton yarn spreads to Rs 90-92 per kg in the current fiscal year, up from Rs 87 per kg in the previous year. This improvement is attributed to better domestic cotton availability and continued demand growth in downstream sectors.For the current fiscal year, analysts are optimistic, predicting an increase in operating margins by 150-200 basis points after a period of historically low margins ranging from 8.5-9% last fiscal.Future ConsiderationsWhile the outlook appears favorable, cotton spinners and market analysts must remain vigilant. Any further downturn in demand from downstream industries like readymade garments, or unfavorable shifts in cotton prices relative to international markets, could pose risks to the anticipated recovery. Moreover, an increase in cotton market arrivals could further boost profitability, making it a key factor to watch in the coming months.In conclusion, the recent developments in cotton prices and market demand have set the stage for a potential resurgence in profitability for domestic cotton spinners, though the industry must navigate remaining uncertainties and market dynamics carefully.Read More :> CRISIL Forecasts Improved Operating Margins for Cotton Yarn Spinners

In early trade, the rupee climbs 12 paise to 83.49 against the US dollar.The rupee rebounded from its all-time low levels and appreciated 12 paise to 83.49 against the US dollar in early trade on Thursday, supported by a firm trend in domestic equities and tracking gains in Asian currencies.Sensex up 140pts, Nifty at22,21Sensex was up 129.65 points, or 0.18%, at 73,073.33, and Nifty was up 61.40 points, or 0.28%, at 22,209.30.Read More :> Adverse Economic Policies Force Closure of Rajapalayam Spinning Mills, Leaving Hundreds Jobless

Unfavorable Economic Policies Cause Rajapalayam Spinning Mills to Close, Creating Hundreds of Jobs LossesA string of unfavorable economic policies enforced by the Central government has led to the closure of several spinning mills in and around Rajapalayam, leaving hundreds unemployed, according to B. Mariappan, a functionary of the Communist Party of India (Marxist).Mariappan attributes the closures to various factors, including volatile cotton prices, the influx of cheap imported garments, and the failure of the Cotton Corporation of India (CCI) to stabilize cotton prices. He criticizes the CCI for selling cotton to corporates, resulting in hoarding and price hikes, thus defeating the purpose of the organization.The textile industry in the Rajapalayam region, which comprises 110 spinning mills and employs approximately one lakh workers directly and indirectly, has been severely impacted by these policies. High volatility in cotton prices, compounded by the imposition of GST exclusively on cotton, has further hampered the industry's competitiveness.Mariappan points out the irony of allowing imports of cheaper garments while domestic textile producers struggle. He suggests that imposing anti-dumping duties and reducing tariffs on electricity could alleviate some of the industry's burdens.G. Ganesan, district president of the Spinning Mills Workers Union affiliated with CITU, highlights the reduced operational days of some mills due to decreased demand, noting that many are barely operating to avoid loan defaults.Mariappan advocates for policy changes, including zero input tax on cotton and lower interest rates on bank loans, to support struggling mills. He laments the economic fallout, with many former mill workers now seeking employment in the construction and agricultural sectors, while those who borrowed from self-help groups face challenges in repaying loans on time.Read More :> CRISIL Forecasts Improved Operating Margins for Cotton Yarn Spinners

Better Operating Margins for Cotton Yarn Spinners are Predicted by CRISILCRISIL Ratings anticipates a significant uplift for the cotton yarn spinning industry this fiscal year, with operating margins poised to improve by 150-200 basis points (bps) following last fiscal's decade-low margins of 8.5-9 percent. The forecast, outlined in a recent report, attributes the improvement to stabilized cotton prices and enhanced cotton yarn spreads.The report cites stable cotton prices, bolstered by improved availability during the current cotton season, as a key factor supporting margin recovery. Additionally, it predicts a 4-6 percent increase in revenue driven by moderate growth in downstream demand alongside stable yarn prices. Last fiscal saw a decline in revenue due to a substantial reduction in yarn prices.CRISIL's analysis, encompassing 95 cotton yarn spinners responsible for 35-40 percent of industry revenue, indicates an overall enhancement in credit profiles due to better operating performance and restrained capital expenditure on deleveraged balance sheets.Gautam Shahi, Director at CRISIL Ratings Ltd., emphasizes the positive impact of improved domestic cotton availability on yarn spreads, expecting a recovery to Rs 90-92 per kg this fiscal from approximately Rs 87 per kg last fiscal. He anticipates a recovery in operating margins to 10.5-11 percent, buoyed by benign cotton prices and sustained domestic demand.While yarn prices are projected to remain steady, domestic sales volume, constituting 70-75 percent of industry revenue, is set to grow by 4-6 percent driven by demand from key segments like readymade garments and home textiles. Conversely, exports are expected to grow modestly at 3-4 percent due to sluggish global economic conditions, following an 80-85 percent surge last fiscal.CRISIL underscores the industry's improving capacity utilization levels, reaching 80-85 percent, with further improvement anticipated this fiscal. Moderate capex plans are forecasted for cotton yarn spinners, contributing to improved interest coverage ratios and gearing ratios.CRISIL identifies downstream demand slowdowns and fluctuations in domestic cotton prices compared to international prices as key monitorables for the industry's performance in the near term.Read More :> Cotton Prices Governed by Global Market, Not Domestic Policy: CM Shinde

Global Market, Not Domestic Policy, Determines Cotton Prices: CM ShindeThe Chief Minister, Eknath Shinde, emphasized that cotton prices are determined by the international market, dismissing any claims that farmers are being disadvantaged due to local policies. He specifically addressed criticism from Uddhav Thackeray, leader of the Shiv Sena, labeling him as an "egoistic king" who is out of touch with reality.Shinde highlighted that during the previous government's tenure led by Thackeray, farmers received good prices for cotton due to demand in the international market. However, he noted that the current price of cotton is significantly lower, attributing it to fluctuations in the NASDAQ market in the US.Regarding orange crops, Shinde mentioned challenges in exporting to Bangladesh due to increased import duties. However, he assured that the government is committed to providing relief to farmers once the model code of conduct is lifted.Shinde also touted the government's efforts to assist farmers during unseasonal rains, mentioning modifications to the norms set by the National Disaster Response Force (NDRF) to maximize benefits for farmers.In terms of infrastructure development, Shinde claimed that stalled projects, including railway projects, have been restarted under their administration. He also credited the central government for providing Vande Bharat trains to the state.Turning his attention back to Uddhav Thackeray, Shinde criticized him for his perceived lack of direct engagement with the public and reliance on social media platforms like Facebook Live. He echoed sentiments expressed by Prime Minister Narendra Modi, suggesting that the Shiv Sena under Thackeray's leadership is not true to its principles.Read More :> India Set to Experience Above-Average Monsoon Rains in 2024: IMD

The rupee fell 9 paise versus the dollar to close at Rs 83.54 Thursday evening.At the close of trade, the BSE Sensex closed down 456.10 points or 0.62% at 72,943.68. At the same time, NSE's 50-share index Nifty closed down 124.60 points or 0.56% at 22,147.90.Read more :-   India Set to Experience Above-Average Monsoon Rains in 2024: IMD