Domestic benchmarks are likely to move range-bound in early part of Friday, as global cues are negative. Though the US markets ended on a mixed note overnight, most Asian markets in early morning are ruling weak.

However, the SGX Nifty 15,955 (8 am IST) indicates a positive opening for Indian markets, as Nifty futures on Thursday closed at 15,937. Though it may open in green, the market will face profit taking later, experts said.

According to analysts, easy liquidity will help the market sustaining the current trend. According to them, the rally this time is broad-based with mid-cap and small-caps too participating. In fact, small-cap indices, too, hit all-time high indicating the flow of funds. However, thin volumes at the bourses are a worrying factor, they added.

Harsh Agarwal, Co-founder, RAIN Technologies - an Algo trading platform, said: “Money flow and liquidity continue to guide markets to new highs. We anticipate this pattern to continue going forward. The Banking Index is still about 10 per cent off from its previous highs, giving the markets the comfort of possible sector rotation. This should keep the Nifty well supported. The RBI and the policymakers continue to enjoy sufficient room and levers to trigger an economic recovery. All in all, the markets remain healthy.”

The Dow Jones Industrial Average index edged up 0.15 per cent, while the S&P 500 index and The tech-focussed Nasdaq Composite Index slipped 0.33 per cent and 0.7 per cent on Thursday. Markets across Asia Pacific region, slipped between 0.06 per cent and 1.2 per cent.

Economic recovery

Equity market so far has shown strong resilience even though it faces headwinds from the advent of a possible third Covid wave, persistent inflation readings prompting a potential rate increase, and volatility around the US Fed taper talk, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

“It has been consolidating for quiet sometime due to lack of trigger. Q1-FY22 earnings season has started off and would continue to provide stock specific action. Also it may give some direction to the market as investors would eye management commentary to gauge scale of economic recovery,” he added.

According to S Ranganathan, Head of Research at LKP securities, “As Global Investors digest inflation data and the FED commentary, Dalal Street Bulls were seen betting on economic recovery as IT stocks continue to power the Indices to new highs. Markets seemed in no mood to oblige investors waiting on the sidelines for a correction as sector rotation played it’s part today as Capital Goods made a smart comeback across market capitalisation. The broader market was buzzing with action across Cement, Real Estate & Pharma names.”

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said the extended upsurge helped Nifty/Sensex move past the trading range on the upward boundary at 15,915/53,129. The development is positive as this might push the market towards 16,100/53,600 levels, he added.

Stocks to watch

Grasim/Century Textiles and Industries have incorporated a Joint Venture Company Birla Advanced Knits Private Ltd to foray into manufacturing of Man-Made Cellulosic Fibre (MMCF) Knit Fabrics. Both the parties will subscribe 50 per cent each in the paid-up equity share capital of the Joint Venture Company.

Authum Investment & Infrastructure Ltd has emerged as the successful bidder in relation to acquisition of Reliance Commercial Finance Limited after completion of resolution process in terms of Reserve Bank of India . In this connection, the Lead Bank (on behalf of Lenders of RCFL under the Inter-Creditor Agreement (ICA)) has issued a letter of intent in favour of the company.

Venus Remedies Foraying into the ₹30,000-crore Indian consumer healthcare market, Venus Remedies Ltd has launched its full-fledged Consumer Healthcare Division. Venus Medicine Research Centre, the R&D wing of Venus Remedies, and the company’s Consumer Healthcare Division will come up with a wide range of products covering the crucial pain management, gastroenterology, hygiene, stress management and vitamins and supplements segments.

Xelpmoc Design and Tech The company approved raising of funds by issuing up to 7,20,000 equity shares at an issue price of ₹375 per share aggregating up to ₹27 crore on a preferential allotment basis.

Sona BLW Precision Forgings The company approved a terms sheet executed between Sona Comstar and Israel’s IRP Nexus Group Ltd, to collaborate to conceive, design, prototype and manufacture high efficiency, low-cost, magnet-less drive motor and matching controller (system) for electric two-wheelers and three-wheelers, for the global market.

IPO Screener

Zomato The ₹9,375 crore share sale will close today. The initial public offering (IPO) so far was subscribed 4.8 with qualified institutional investors and retail investors showing overwhelming interest even as HNIs remained on sidelines. The portion reserved for retail investors was subscribed 4.73 times while the non-institutional investors (NII) subscribed just 0.45 times. The portion reserved for qualified institutional buyers was subscribed 7.07 times. The company has fixed the price band of the primary market offering at ₹72-76 per share. The IPO consists of a fresh issue of ₹9,000 crore and an offer for sale (OFS) of ₹375 crore by the promoter - Info Edge India.

Tatva Chintan Pharma Chem The ₹500-crore IPO comprises fresh issuance of equity shares worth ₹225 crore and an offer of sale of ₹275 crore by existing promoters and shareholders, will open for subscription on Friday. The offer for sale size has been increased to ₹275 crore from ₹225 crore earlier mentioned in the draft papers. The company has fixed the price band as ₹1,073-1,083 a share. The issue closes on July 20.

Results calendar

Den Networks, HDFC Asset Management Company, Just Dial, L&T Finance Holdings, Maximaa Systems, Starlog Enterprises and Visagar Polytex will release their quarterly earnings on July 16.

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