Stocks

Global markets, SGX point to weak opening for markets

KS Badri Narayanan Chennai | Updated on January 05, 2021

Bajaj Finance, Force Motors, Glenmark Pharma likely to remain in focus

Indian stock markets are expected to open on a weak note due to adverse market conditions in the US, which is reflected by the SGX Nifty. Asian stock markets also opened weak on Tuesday.

The SGX Nifty, which was down over 100 points in the morning, is currently hovering around 14,099, a decline of about 75 points. The BSE Sensex and the NIfty on Monday closed at 47,176.80 and 14,132.90

 

According to analysts, the Indian market is likely to open lower on Tuesday following losses in Asian markets on weak global cues as fears over the spread of a new coronavirus strain weighed on investor sentiment.

According to Binoy Modi of Reliance Securities, "In our view, likely commencement of inoculation process soon and sustained recovery in key high frequency economic indicators bode well for the market".

 

Further, FPIs positive flows are expected to sustain in subsequent weeks and visibility of DIIs turning net buyers would be advantageous for markets, he said and added Q3-FY21 earnings and Union Budget will be crucial events for the market in the near term, which will offer clarity about the sustainability of demand momentum in subsequent months.

"However, considering the high market valuations, a broad-based rally may not be sustainable and therefore investors must focus on quality companies with strong earnings potential and margins of safety," he further said.

Stocks that will remain in focus

Bajaj Finance said its AUM fell 1 per cent y-o-y to Rs 1.43 lakh crore in Q3-FY21 though sequentially, asset base rose 4.66 per cent. New loans booked during Q3-FY21 were 6 million as compared to 7.7 million in Q3-FY20. The company’s deposit book stood at approximately Rs 23,800 crore in December 2020, as compared to Rs 20,235 crore in December 2019..

Force Motors on Monday said it had sold 1,084 units in December 2020 as compared to 2,747 units in December 2019, a drop of 60.54 per cent year-on-year.

Glenmark Pharmaceuticals said it has issued a notice of optional redemption to the holders of $200 million 4.5 per cent Senior Notes due 2021 and listed on the Singapore Exchange Securities Trading Ltd. The redemption price for the Redeemed Notes will be 101.125 per cent of the outstanding principal amount of the Redeemed Notes, plus accrued and unpaid interest thereon, and additional amounts.

HDFC shares may remain relatively stable as the mortgage lender said its disbursements in the individual loan category have grown by 26 per cent during the third quarter ended December 2020.

KNR Constructions Ltd, Hyderabad, a premier infrastructure development company has received an order of Rs. 603.63 including GST for upgrading the Cheyyur - Vandavasi Polur Road . The project has to be completed within a period of 39 months from the appointed date.

MOIL said it will form a joint venture with Gujarat Mineral Development Corporation for manganese ore mining in Gujarat. Analysts will closely will follow the development.

NBCC has been awarded a work order worth Rs 351 crore from Gaursons Hi-Tech.

Sun Pharmaceuticals has started Phase-2 trials of oral drug SCD-044 in patients with moderate to severe plaque psoriasis. The stock may react positive to the development.

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Published on January 05, 2021
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