Stocks

Covid fears likely to keep market under pressure

KS Badri Narayanan April 6 | Updated on April 06, 2021

Stocks to watch out for today: Trident, Avenue Supermarkets, Panacea Biotec, Tilaknagar Industries, and Ircon International

Despite global stocks remaining firm, Indian stock markets are expected to be cautious on Tuesday as well, on the back of rising Covid cases. The SGX Nifty is ruling at 14,727, as against Nifty futures Monday's close of 14,698.15, just a marginal gain.

Overnight, the Dow Jones Industrial Average and S&P 500 hit a record high on the back of healthy US job data numbers. Nasdaq jumped 1.67 per cent, which is still a few points away from its peak.

However, Asian markets are ruling negatively, with Japan's Nikkei, Korea's Kospi and China's Shanghai index are down about 0.50 per cent. However, Australian and Taiwan markets are up by one per cent.

According to analysts, the expectation is that Covid cases may peak by mid-April and may not cause much disruption like last year. However, most investors have turned very cautious and preferred to remain on the sidelines, they added.

The focus will also be on the outcome of the RBI monetary policy meeting. The upcoming policy will see MPC re-emphasising its commitment to keeping policy accommodative for the foreseeable future and maintaining ample liquidity, said Madhavi Arora, Lead Economist, Emkay Global Financial Services.

Stocks to watch

Trident has announced that a major fire has broken out in the Cotton warehouse located in the manufacturing facilities at Budhni, Madhya Pradesh. The fire has resulted in major damage of stocks of cotton, lying in the warehouse. The company is proactively monitoring the situation and taking necessary steps for the safety and well-being of the manpower and reduce the impact on business. The actual quantum of loss/damage cannot be ascertained at this point of time. The loss/damage is adequately covered by Insurance and the company has already informed the Insurance Company about the fire Incident.

Avenue Supermarts Limited has announced the quarterly update of the Company at the end of Q4 of Financial Year 2021 (January 2021- March 2021). Standalone Revenue from operations for the quarter stood at ₹7,303.13 crore as compared to ₹6,193.53 crore in the same period last year. The total number of stores as of March 31; 2021 stood at 234. (During FY 2020-21 we opened 22 new stores and converted 2 stores into fulfilment centers for Avenue E-commerce Limited). Due to increased Covid-19 cases since March 2021 several restrictions have been put in place in certain cities and towns where we operate. Our business will continue to be dependent on how the pandemic trends further and the consequent restrictions for operating our stores.

Panacea Biotec: The Russian Direct Investment Fund (RDIF, Russia's sovereign wealth fund), and Panacea Biotec have announced cooperation to produce 100 million doses per year of Sputnik V, the : world's first registered vaccine against coronavirus. Production of Sputnik V at Panacea Biotec sites will help facilitate global supply of Sputnik V to international partners of RDIF.

Tilaknagar Industries Ltd has entered and executed an agreement with Pernod Ricard India Private Limited to manufacture PRIPL products for PRIPL at the Company's bottling facilities in Maharashtra. The agreement is effective immediately and shall remain valid for the period of 10 years and shall be renewable thereafter by mutual consent. The co-operation could be extended to more states in the near future.

Ircon International: The Board of Directors of IRCON International Ltd at its meeting held on Monday, 5th April, 2021, have approved and recommended the issuance of fully paid up Bonus Shares in the ratio of 1:1 (i.e. 1 (one) fully paid up equity share for every 1(one) fully paid up equity share held, subject to the shareholders' approval through Postal Ballot.

Rights issue

The ₹1,283.65-crore rights issue open for subscription today. The Board of IndiGrid Investment Managers had approved issue size of up to 11,66,95,404 units for ₹1,283.65 crore. Rights issue price was ₹110.00 per unit . Due to bank holidays the issue will close on April 16 instead of April 13, as announced earlier.

Published on April 06, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.