Markets

SGX Nifty points to flat opening; Covid-19, global market trends to dictate D-Street direction

KS Badri Narayanan Chennai | Updated on February 22, 2021

Analysts say market will remain in consolidation mode; ‘expect domestic market to continue following global markets this week on lack of major domestic events’

Indian markets are expected to open flat on the first day of the week, as SGX Nifty points to a flat beginning even as Asia-Pacific markets are ruling firm in early trade on Monday. SGX Nifty is ruling at 15,025 against Nifty March futures Friday’s closing of 15,025 and February futures closing of 14,987, signalling flat opening for Nifty index.

Analysts expect the markets to remain in consolidation mode. Global cues and foreign fund flows will largely direct the market movement, they added. However, the key worry is rising Covid-19 cases in some States, especially Maharashtra, again, they added.

All public functions, including government, religious, political, and social events have been banned in Maharashtra from Monday as Chief Minister Uddhav Thackeray warned of a "stricter lockdown" if Covid-19 rules are flouted. Giving the slogan of "wear masks, say no to lockdown", the CM said that almost 7,000 daily cases are worrying, and it would be clear in a fortnight if Maharashtra is witnessing a second wave.

"We expect investor interest coming back to large Banks as FPI flows this month at over ₹24,000 crore reflects the appetite of foreign funds," said S Ranganathan, Head of Research at LKP Securities.

While Japan's Nikkei is up about 1 per cent, other markets such as Hong Kong, Korea, Taiwan and Australia are up between 0.2 per cent and 0.8 per cent.

Vinod Nair, Head of Research at Geojit Financial Services, said: "We expect the domestic market to continue following the global markets in the coming week due to lack of any major domestic events. GDP data for the third quarter, which is to be released towards the end of the week, is expected to show signs of economic recovery adding positive momentum to the Indian market."

Stocks to watch

Adani Ports & SEZ has incorporated a wholly-owned subsidiary Aqua Desilting Pvt Ltd to carry out the business of dredging, desiltation and sale/disposal of such desilted material from sea, river, dams and other water bodies.

McNally Bharat Engineering Company Limited (lead partner of joint venture McNally-AML) has received an order for ₹643.10 crore from Northern Coalfields Limited for "planning, design, engineering, construction, fabrication, erection, supply, installation, testing, trial run and commissioning of coal handling plant (Phase-IV) of 10 MTPA consisting of all civil, structural works.

Jubilant Foodworks has said that its wholly-owned subsidiary Jubilant Foodworks Netherlands B.V., has entered into a purchase agreement with Turkish Private Equity Fund II L.P. to fully acquire Fides Food Systems Coöperatief U.A. which holds 32.81 per cent stake in DP Eurasia N.V. The cost of acquisition is approximately ₤24.80 million. The company has also executed the purchase agreement as guarantor in connection with the investment obligations of Jubilant Foodworks Netherlands B.V.

Sheela Foam has received a closure order for its Jalpaiguri plant from the West Bengal Pollution Control Board. The company has suspended operations at the unit.

Torrent Power has emerged as the highest bidder for the sale of 51 per cent stake in the power distribution company in the UT of Dadra & Nagar Haveli and Daman & Diu. The bidding has been undertaken as part of the Government of India's initiative to privatise distribution utilities of Union Territories to usher in efficiency, which will provide a model for emulation by other utilities across the country.

The Board of Thomas Cook (India) Limited has approved the issuance of up to 45 crore optionally convertible cumulative redeemable preference shares to Fairbridge Capital (Mauritius) Limited, the promoter of the company, through private placement on preferential basis at ₹10 a OCCRPS, aggregating to ₹450 crore. The decision is, however, subject to the approval of regulatory/statutory authorities (including the Reserve Bank of India) and the shareholders of the company at the forthcoming Extraordinary General Meeting.

The board of Shriram City Union Finance will meet on February 24 to consider the issue and allotment of secured, rated, listed, redeemable, principal protected market-linked (PP-MLD) NCDs of face value ₹10 lakh each worth ₹100 crore with a green shoe option of up to ₹400 crore.

The Board of Directors of Ravindra Energy Limited (formerly Ravindra Trading & Agencies Limited) has approved issue of fully/ partly /optionally convertible debentures (secured or unsecured) on preferential basis to such willing investors, including the promoters and others, up to the limit of ₹60 crore, in one or more tranches. The rate of interest will be determined by the board based on market conditions from time to time.

The board of Suven Life Sciences has approved issuance of 1.81 crore fully convertible warrants on preferential basis to the promoter/promoter group. The price at which the warrants will be issued shall be determined later, it said in a notice to the stock exchanges.

The board of Wanbury has approved the reclassification of the existing authorised share capital of the company from ₹50 crore (divided into three crore equity shares of ₹10 each, and 20 lakh preference shares of ₹100 each, adding up to ₹50 crore (divided into five crore equity shares). The board has approved issuance and allotment of 76,15,381 equity shares through preferential issue to investors at a price of ₹65 a share aggregating to ₹49,49,99,765, for settlement of debt with lenders.

Inox Leisure has commenced commercial operations of Multiplex Cinema taken on leave and license basis in Kolkata. The multiplex has two screens and 422 seats.

Narayana Hrudayalaya has informed the exchanges that Health City Cayman Islands, a step-down subsidiary of the company running an existing hospital in the Cayman Islands, is expanding to a new location in the Camana Bay Development area of Grand Cayman. The objective of the new facility is to expand the scope of superspecialty treatment options offered by HCCI’s existing facility and offer medical services closer to the city centre.

Jagran Prakashan: Board meeting on March 2, 2021 to consider buyback of equity shares.

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Published on February 22, 2021
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