Stocks

A strong opening seen for Indian markets

KS Badri Narayanan Chennai | Updated on July 05, 2021

Analysts eye results, FPIs flows

Trend in SGX Nifty indicates a strong opening for Indian markets on Monday. While Asian markets are trading mixed in early deal, the US and most European stocks closed higher on Friday.

As the result season for the April-June quarter starts from this week, analysts expect stock-specific action and narrow movement for broader market due to lack of any global or domestic triggers. However, fund flow from foreign portfolio institutional investors is a key element to sustain the momentum, marketmen said.

According to Motilal Oswal Financial Services "We expect earnings momentum to accelerate in FY22 as the pace of vaccinations picks up and the economy opens up further. BFSI and commodities are expected to drive FY22E earnings. The market has been strong and largely looked through the second Covid wave on the back of strong liquidity and robust participation from non-institutional investors."

SGX Nifty is currently ruling at 15,835 (8 am IST), as against Nifty futures close of 15,741.55, signalling about 100-point gap up opening for Nifty.

S Ranganathan, Head of Research at LKP Securities, said: "As the Profit to GDP ratio hit a 7-year high, foreign portfolio investors continued to repose faith in Indian Equities with positive flows of over ₹120 bn during the month of June 2021. The month of June witnessed a gradual opening up of the localised lockdown seen in April & May and FPI's bought stocks across sectors like IT, Fintech & Insurance which again was pretty much broad-based across Largecaps & Midcaps"

STOCKS TO WATCH

India Pesticides: After successful IPO, equity shares of the company will be listed on the bourses today. The company has fixed the final price as ₹296 a share at the upper end of the price band Rs 290-296. India Pesticides IPO was subscribed 29.04 times overall with retail portion receiving bids for 11.30 times; QIB portion got 42.95 times and non-institution category had bid for 51.88 times.

The Indian Hume Pipe Company Limited has received the Letter of Acceptance for the work of about Rs 257.60 crore (including GST) from Madurai City Municipal Corporation for dedicated water supply scheme for Madurai City Municipal. The project is to be completed within 36 months.

Info Edge: THe company has reduced it stake sale through offer for sale in Zomato IPO. Instead of earlier Rs 750 crore, the company board approved for a reduction in the size of the OFS by the company to ₹375 crore, it said in a notice to the stock exchanges.

IPO corner

Aditya BIrla Fashion & Retail right entitlement shares will be traded on the special window of the exchanges. Investors need to pay Rs 27.50 a share in this final call. ABFRL had offered 9.05 crore shares of ₹10 each at ₹110 a share as rights offer to its existing shareholders in the ratio of 9 shares for every 77 shares held as on record date of July 1, 2020. Investors had paid ₹55 a share on application and the balance Rs. 55 in two installments of Rs. 27.50 each as allotment and final call money when called by the company. Shares of Aditya Birla Fashion closed at ₹214.90 on the BSE.

Published on July 05, 2021

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