Stocks

Covid-19 measures to keep market volatile

KS Badri Narayanan Chennai | Updated on April 16, 2021

Downward revision of GDP growth by economists adds to market jitters

After a volatile session, markets are likely to see positive beginning, thanks to global cues. The SGX Nifty at 14,630 (8 am IST) indicates a gap-up opening of about 40 points for the Nifty. However, most Asian markets are ruling mixed with little change, though the US market ended at a record high overnight. The Dow closed at over 34,000 — at 34,036 — while the S&P 500 and tech-heavy Nasdaq jumped over 1 per cent each.

Rising number of Covid-19 cases and harsher restrictions across various States spoiled the sentiments. Analysts expect the market to be cautious going forward as already economists are revising down India’s economic growth.

Global investment advisory firm Nomura has cut the 2021 gross domestic product (GDP) forecast for India to 11.5 per cent from the earlier 12.4 per cent due to the rising number of Covid-19 cases amid the possibility of higher inflation.

Similarly, Goldman Sachs lowered India’s GDP forecast for the full year to 10.5 per cent from 10.9 per cent.

“The increasing Covid-19-led restrictions in Mumbai, Delhi and Rajasthan further added jitters to the market. However, we believe that the market volatility is a knee-jerk reaction and the situation is likely to improve sooner than expected,” said Mohit Nigam, Head, PMS & Advisory, Hem Securities.

Stock to watch

Amarjothi  Spinning Mills: The Board has accorded its approval for purchase of land admeasuring three acres and 88.50 cents from Jaichander Wind Farms Private Limited for an overall consideration of ₹15.62 lakh.

Ashoka Buildcon has received a Letter of Award (LoA) from Gujarat Rail Infrastructure Development Corporation for gauge conversion at the Bechraji-Ranuj section, with 25 KV AC electrification in the Ahmedabad division of Western Railway. The project cost is ₹333.62 crore.

Sadbhav Infrastructure Projects has raised ₹550 crore by allotting unlisted, unrated, secured, redeemable, non-convertible debentures on private placement.

Results calendar: Den Networks, Mindtree and GTPL Hathway will declare their quarterly as well as full-year results for the period ended March 2021.

The board of MMTC will meet for December quarter results.

Published on April 16, 2021

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