Bears to ring opening bell, but brace for volatility on F&O settlement day

KS Badri Narayanan Chennai | Updated on January 28, 2021

Aditya Birla Fashion, Quess Corp, NALCO, Power Grid among stocks likely to see action today

The domestic market is likely to open with a downward gap of 80 points on Thursday as indications from the SGX Nifty and global cues point to bearish signals. The SGX Nifty is ruling at 13,906 as against the Nifty50 Feb futures close of 14,020.35 and January futures value of 13,982.

Settlement of F&O monthly contracts on the NSE will add to volatility.

Asia-Pacific markets such as Japan, Singapore, Australia, China, Hong Kong and others have slumped about one per cent. Overnight, the Dow Jones, S&P 500 and the Nasdaq slumped over two per cent.

The S&P BSE Sensex on Wednesday plunged 1.9 per cent or 937 points to 47,409.93, while the Nifty50 index plunged 271.40 points to 13,967.50, as foreign portfolio investors resorted to heavy selling.

Stocks to watch

Aditya Birla Fashion and Retail Ltd has announced a strategic partnership with India's largest designer brand, Sabyasachi, by signing a definitive agreement to acquire 51 per cent stake in the brand for Rs 398 crore. The brand straddles categories such as apparel, accessories and jewellery and has a strong franchise in India, the US, the UK and West Asia. The ABFRL platform will complement brand Sabyasachi on its journey to becoming a global luxury house out of India.

The Quess Corp board has approved the subscription of 49 per cent equity shares in Taskmo, legal entity name - Stellarslog Technovation Pvt Ltd - a gig economy start-up for Rs 10 crore, to be invested in multiple tranches. Taskmo is a B2B managed marketplace that serves as an on-demand task fulfillment platform for enterprises seeking to outsource task-based operations to a distributed network of gig workers. This investment will mark Quess' entry into the digital gig economy and enable it to serve the demand for flexible gig workers from existing and new clients.

National Aluminium Company: The board of NALCO on Wednesday approved share buyback worth Rs 749.23 crore. It plans to buyback 3 crore shares at Rs 57.50 a share.

Power Grid Corporation: Powergrid Infrastructure Investment Trust, an infrastructure investment trust of PowerGrid, has filed a draft offer document for the proposed initial public offer of units by PGInvIT. The offer consists of a fresh issue of units by PGInvIT and an offer for sale of units by Power Grid..

SVP Global Ventures Ltd, one of the largest compact cotton yarn manufacturers, has announced its intention to issue up to 2.24 crore convertible equity warrants to its parent company, Shri Vallabh Pittie Ventures Private Pvt. Ltd. The aggregate value of the transaction would be Rs 235 crore for cash and the allotment of warrants will be completed within a 15-day period from the date of shareholders’ approval, it said. The warrant holder has the option to convert equity warrants into an equivalent number of fully paid-up equity shares of face value of Rs 1 each, in one or more tranches within 18 months from the date of allotment of warrant, at an issue price of Rs 105 a share.

PVR: The fund raise committee of PVR has approved opening of the qualified institutional placement on January 27, 2021. The floor price in respect of the QIP is Rs. 1,495.93 a share. The company may at its discretion consider offering a discount on the floor price within the limit prescribed under the SEBI ICDR regulations, if at all.

MMTC: The Department of Investment and Public Asset Management, Ministry of Finance,has issued a Notice of EOI inviting bids for divestment of equity held by the CPSEs and State PSUs in Neelachal Ispat Nigam Ltd, a joint venture company of MMTC Ltd.

GMR Infrastructure: GMR Hyderabad International Airport, subsidiary of GMR Infra, has raised $300 million via senior notes at a coupon rate of 4.75 per cent.

Endurance Technologies: Rating agency Crisil has upgraded the long-term rating of bank credit facilities to AA+/Stable from AA/Positive and reaffirmed the short-term rating for bank credit facilities/Commercial Papers at A1+.

Result calendar

Almost 130 companies will declare their quarterly numbers on Thursday. Among them are some of the high profile and actively tracked companies such as 3i Infoech, Aarti Industries, Angel Broking, AU Small Finance, Bharat Electronics, Coforge, Colgate Palmolive, DB Corp, Equitas SFB, Granules India, HSIL, InterGlobe Aviation, IDBI Bank, IRCTC, KEC International, KPIT Technologies, eClerx Services, Laurus Labs, Lupin, M&M, Maruti Suzuki India, Motilal Oswal, Persistent Systems, Pidilite Industries, RBL Bank, Route Mobile, Shriram Transport Finance, Suven Life Sciences, Tata Chemicals, TVS Motor Company and Welspun Corp.

IPO watch

Stove Kraft: The issue closes today. So far the IPO has been subscribed almost three times. Ahead of the IPO, the manufacturer of kitchen appliances raised a little over ₹185 crore from anchor investors. A total of 48,22,290 shares have been allotted to 32 anchor investors at ₹385 apiece, which is the upper end of the price band. The initial public offering comprises of a fresh issue aggregating ₹95 crore and offer for sale of up to 82,50,000 equity shares by selling shareholders.

Published on January 28, 2021

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