Markets

Markets to open in green after a gap

KS Badri Narayanan Chennai | Updated on July 22, 2021

HUL, UltraTech, Bajaj Auto, IEX, ICICI Lombard, Biocon key results

Domestic markets are likely to open higher, after a break on Wednesday, as global cues turned positive. As value buying at lower level emerged across-the-globe, Indian markets, too, see a bounce-back, said analysts.

The SGX Nifty at (8 am) 15,740 indicates a 100-point gap up opening. The Nifty futures on Tuesday closed at 15,637. US and Asia Pacific markets are presenting positive signal to domestic markets.

For the second successive day, the US stocks closed higher. The Dow Jones Industrial Average on Wednesday closed with a sharp gain of 286 points; S&P 500 and Nasdaq lost jumped 37 and 133 points, respectively. Most Asia-Pacific markets almost gained around one per cent in early morning on Thursday. The US stock futures, too, are in positive territory on Thursday.

However, India VIX moved up by 4.14 per cent from 12.68 to 13.20 levels on Tuesday. Spike in volatility is seen due to result season and global uncertainty.

According to experts, monsoon progress and Q1 financial performance of India Inc will be closely monitored. The benchmark indices are expected to move in a narrow range till the emergence of big buying by foreign portfolio investors. According to them, the Q1 result season so far has been mixed with sectors such as cement and IT performing well. Sector/stocks specific action is likely to continue, they added.

Stocks to watch

The Supreme Court will pronounce its judgment on the Airtel, Voda-Idea plea seeking recomputation of adjusted gross revenue (AGR) dues on July 22. Three telecom companies — Bharti Airtel, Vodafone Idea, and Tata Teleservices — had appealed to the apex court to allow them to make staggered AGR payments. They had also sought correction to calculation errors made by the Department of Telecommunication (DoT) in its AGR demand.

Wipro To invest $1 billion in cloud technologies, capabilities, acquisitions and partnerships over the next three years. The IT company also launched Wipro FullStride Cloud Services, which will work with clients to better align business and IT with the cloud imperative. Wipro currently employs more than 79,000 cloud professionals and will declare quarterly results for Thursday.

Bajaj Finserv Bajaj Finance to buy 19.9 per cent stake in Bajaj Finserv Direct Ltd. BFSD is a wholly owned subsidiary of Bajaj Finserv. Bajaj Finance will invest ₹284 crore and Bajaj Finserv will invest ₹342 crore in BFSD during the transaction. BFSD is in the business of distribution of insurance products through digital marketplace. The investments would be in the form equity shares and/or convertible loan or security into equity shares.

Allcargo Logistics The promoter and promoter group of Allcargo Logistics Ltd have announced an initial plan to acquire all the equity shares held by public shareholders and voluntarily delist from the stock exchanges. The floor price determined in accordance with the Delisting Regulations will be informed in due course, the company said in a public announcement on Wednesday. Promoter Shashi Kiran Shetty holds 62.08 per cent of the paid-up equity share capital of the company. The aggregate shareholding of the promoter group aggregates to 70.01 per cent of the paid-up equity share capital of the company.

Mukand The Competition Commission of India (CCI) has approved acquisition of certain equity shareholding of Mukand Ltd by Bajaj Group entities. The acquirers - Bajaj Sevashram Pvt Ltd, Bachhraj and Company Pvt Ltd, Bachhraj Factories Pvt Ltd and Sanraj Nayan Investments Pvt Ltd, all part of the Bajaj Group of companies — plan to mop up 16.57 per cent of the equity share capital of Mukund. The sellers are co-promoters of Mukand along with the Bajaj Group. The acquisition is in addition to the around 57.7 per cent of the issued and paid-up equity share capital presently held by the Bajaj Group.

Granules India has announced that Granules Pharmaceuticals, Inc. (GPI), a wholly-owned US subsidiary, had undergone a PreApproval Inspection (PAI) audit by the US Food and Drug Administration (FDA) from June 21-25. The audit is a pre-approval inspection for three of its applications filed from this facility. The FDA issued two minor observations during the audit, it said.

Sonata Software In 2018, Sonata Software acquired Scalable Data Systems, an Australian company known for its commodity trade and agri-manufacturing solutions. Today, the company announced the new brand identity of the acquisition: Sonata Scalable. The strategy, announced at the time of acquisition, was to combine the strength of both companies to make a significant impact on the Australian market.

Sangam India The Board has approved the proposed expansion program for installation of 32832 spindles for manufacture of cotton yarn at Spinning Unit-II, Village Sareri Bhilwara (Rajathan). The total cost of the project will be ₹137.25 crore which is proposed to be funded partly by term loans of ₹102 crore and balance by internal accruals.

PDS Multinational Fashions, a design-led sourcing, manufacturing & supply chain platform catering to leading brands and retailers globally with a presence in over 22 countries, is focusing on building and strengthening its presence in new geographies and categories intending to cater to new customers and increase its penetration with its existing customers. The company has already onboarded senior business heads to drive business in new categories and new geographies including the US, South Africa, Australia amongst others.

Everest Organics has received Extension of Revocation of Factory Closure Order for a further period of six months from Telangana State Pollution Control Board orders issued dated 13.07.2021. Further, the company is in full compliance with all the pollutions norms and is confident that it would be revoked permanently.

Sterling Gtake E-Mobility Limited (SGEM), NCR-based motor control units (MCUs) and manufacturer for electric vehicles, announced that it has secured an order worth ₹60 crore for MCUs from a leading 2W EV OEM.

Zydus Cadila has received tentative approval from the USFDA to market Ibrutinib Tablets, in the strengths of 140 mg, 280 mg, 420 mg and 560 mg. Ibrutinib belongs to a class of drugs known as kinase inhibitors and is used to treat certain cancers, such as mantle cell lymphoma or marginal zone lymphoma, chronic lymphocytic leukemia/small lymphocytic lymphoma, and Waldenstrom’s macroglobulinemia. The drug will be manufactured at the group’s formulation manufacturing facility at the SEZ, Ahmedabad. The group now has 319 approvals and has so far filed over 400 ANDAs since the commencement of the filing process in FY 2003-04.

Results calendar

Agro Tech Foods, Bajaj Auto, Bajaj Holdings & Investment, Bank of Maharashtra, Biocon, Can Fin Homes, Chennai Petroleum Corporation, CSB Bank, Heidelbergcement India, Hindustan Zinc, Hindustan Unilever, ICICI Lombard General Insurance Company, Indian Energy Exchange, IIFL Securities, IndiaMart InterMESH, India Pesticides, Lloyds Steels Industries, Mahindra EPC Irrigation, Mphasis, Persistent Systems, Music Broadcast, Mukat Pipes, Newtime Infrastructure, Rane Engine Valve, Sahyadri, Saregama, Shiva Cement, South Indian Bank, Sterlite Technologies, Super Sales, Suraj, UltraTech Cement, Victory Paper Wockhardt and Zen Labs.

Published on July 22, 2021

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