Indian markets are expected to open higher on Monday, thanks to positive global cues. The SGX Nifty, which currently rules at 15,006 (8 am IST) on the Singapore Stock Exchange, indicates at least 130 points gap-up opening for Nifty futures, which on Friday closed at 14,869.55
Following a strong closing at the US on Friday, Asian markets too are ruling on firm ground on Monday. Benchmarks of Japan, Australia and Korea are up in excess of one per cent. Last week, the US indices such as Dow Jones Industrial Average and S&P 500 closed at a record high; even the tech-heavy Nasdaq, which was facing some headwind in recent times, closed with sharp gains on Friday.
However, analysts still remain cautious due to rising Covid cases and resultant lock-down in various States. The second wave of coronavirus infections forcing localised or state-wide restrictions poses a downside risk to economic activity in the first quarter of the ongoing financial year, according to the Department Of Economic Affairs. The momentum in economic recovery since the first wave has moderated in April.
The silver lining, according to analysts, is that Q4 earnings, so far announced by India Inc, is better-than-expected. Analysts are also relieved, as comments from top managements across various sectors are positive so far.
Vinod Nair, Head of Research at Geojit Financial Services, said: “In the coming week, the trend in the market will be dictated by developments in the Covid spread, upcoming result outcomes and global cues. Industrial production data for March and inflation data for the month of April is expected to be released this week. IIP data is expected to show robust growth due to economic recovery witnessed in March while inflation rates are to remain at elevated levels".
Stocks to watch
Amara Raja Batteries Limited has resumed operations at its plants at Nunegundlapalli and Karkambadi at Chittoor District from May 8 after the High Court of Andhra Pradesh granted an interim suspension of the orders passed by Andhra Pradesh Pollution Control Board (APPCB).
Continuing with its focus on the best-in-class systems and processes for environmental, safety and health practices, the company will continue to engage closely with APPCB to resolve any potential issues, it said.
Due to a surge in Covid-19 cases being witnessed in Goa, the office of the District Magistrate, North Goa has extended the lockdown and directed that casinos in North Goa shall remain closed until 7.00 a.m. on May 24. Accordingly, the casinos operated by Delta Corp and its subsidiaries in Goa will remain closed during this period. The company is unable to estimate the quantum of potential losses on account of this temporary closure and the pandemic at this time.
Hero MotoCorp has informed the exchanges that due to the prevailing Covid-19 situation across the country, it has decided to extend the shutdown at its manufacturing facilities across India, its Global Parts Center (GPC) in Neemrana and its R&D facility - the Centre of Innovation and Technology (CIT) in Jaipur - by another week, till May 16.
Jubilant Pharma has said that Jubilant Pharmova, subsidiary of the company, has received a favourable and unanimous judgment from the United States Court of Appeals summarily affirming Jubilant's earlier favourable rulings from the US Patent Office (PTAB) and the US International Trade Commission (ITC). These two rulings by the Appellate Court deny the appeals filed by Bracco Diagnostics, Inc
Housing Development Finance Corporation Ltd. (HDFC), in accordance with the direction of Reserve Bank of India to reduce its shareholding in HDFC ERGO to 50 per cent or below, has entered into a share purchase agreement with ERGO International for sale of 44,12,000 equity shares of ₹10 each, representing 0.62 per cent of the issued and paid-up share capital of HDFC ERGO. ERGO International AG does not belong to the promoter/ promoter group of HDFC.
TT has cancelled an MoU for sale of spinning mill assets located at Rajula, Gujarat, to Resilient Cotspin, Bhavnagar, Gujarat. Last November, the company had entered into a pact with Resilient Cotspin for sale of company’s Spinning Mill Assets located at Rajula, Gujarat
Close to two dozen companies including Artemis Medicare Services, Chambal Fertilisers & Chemicals, Dai-Ichi Karkaria, DE Nora India, Escorts Finance, Ganges Securities, Gayatri Tissue & Papers, HFCL, HSIL, Inspirisys Solutions, Intellect Design Arena, JMC Projects (India), Nutricircle, Oriental Aromatics, Onesource Ideas Venture, Paushak, PPAP Automotive, Sangam Renewables, Satia Industries, Suryalakshmi Cotton Mills, TTI Enterprise, Venky's (India) and Zydus Wellness will declare their quarterly results on Monday.