Macro Economy

Market may open positive, amid mixed global cues

K.S. Badri Narayanan Chennai | Updated on May 17, 2021

All eyes on Covid cases, geopolitical tension

The Indian stock markets are likely to open positive on Monday, the first day of the week. However, global signals are mixed due to geo-political tension, though SGX Nifty indicates a 60-point gap-up opening for Nifty. The SGX Nifty (8:00 am IST) is currently ruling at 14,775 against Nifty May futures close of 14,715.

The US markets on Friday closed on a strong note with Dow Jones Industrial Average surging over one per cent. The S&P 500 and tech-heavy gained even better by 1.5 per cent and 2.3 per cent.

Among the Asia-Pacific markets, Taiwan, which was reeling under selling pressure, slipped another 1.11 per cent while Korea’s Kospi and Japan’s Nikkei slipped 0.6 per cent and 1.11 per cent respectively.

Australian markets are, however, up by about 0.3 per cent.

Analysts expect the market to move in a narrow range. As rising COVID cases and subsequent lock-downs in several States keep the market under pressure, marketmen expect that the action is likely to be in specific stocks.

“The market is expected to have a stock-specific rally based on the forthcoming results. The effectiveness of the vaccination in curbing COVID spread will be a key in determining the long-term trend in the market. International metal prices are high compared to actual economy activity, this can impact metals stocks. The WPI inflation is the major economic data point that is due for release in the coming week, but should have a meaningful effect on the market," said Vinod Nair of Geojit Financial Services.

Stocks to watch

Camlin Fine Sciences: The board of Camlin Fine Sciences has approved a strategic investment in AlgalR NutraPharms Private Limited by way of acquisition of equity shares amounting to 69.33 per cent of the existing paid-up share capital. The Committee has also approved subscription to the equity shares of AlgalR. Upon consummation of the secondary purchase and primary subscription, the company will hold 80 per cent of the paid-up capital of AlgalR on a fully diluted basis. AlgalR provides an opportunity to the Company for expanding its footprint into the Nutraceuticals segment.

Sterling and Wilson Solar Limited has given an update on certain recent one-off events that have had an unanticipated impact on the company's operations. Following the insolvency of one of the company's prime sub-contractor in a particular geography, the company has had to appoint alternative sub-contractor(s) at a higher price due to border restrictions and other impacts arising from the ongoing COVID-19 pandemic. This has also led to an increase in project timelines and consequential overheads which are material in this particular geography.

Trident: The Board of Directors of Trident had approved the resolution for raising of funds and further recommended enabling resolution for approval of shareholders: for an amount not exceeding ₹600 crore by issue of Non-Convertible Debentures by way of public or private offering, in one or more tranches; and for an amount not exceeding ₹500 crore by issue of equity shares, NCDs instruments along with warrants, convertible debt instruments, convertible securities other than warrants or foreign currency convertible bonds and or such other securities, as may be permitted, by way of a public or private offering, including Qualified Institutions Placement or any combination thereof.

Results Calendar:

3i Infotech, Asit C Mehta Financial Services, ATV Projects India, Butterfly Gandhimathi Appliances, Bharti Airtel, Colgate Palmolive, Federal Bank, Gland PharmaOrient Cement, Gujarat Narmada Valley Fertilizers, Gokul Agro Resources, Garden Reach Shipbuilders & Engineers, Indo Count Industries, Mangalore Refinery & Petrochemicals, Nalin Lease Finance, Nutricircle, Prakash Pipes, Rane Brake Lining, SBEC Systems, Shakti Pumps (India), Sun Pharma Advanced Research Company, Subex, Suraj and Wabco India will declare their quarterly results on Monday.

Published on May 17, 2021

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