Indian markets to jump-start as global stocks rally

After fabulous days of gains, domestic markets are expected to open on a strong note on Wednesday. While global cues are mixed, the impending expiry of F&O monthly contracts on Thursday is likely to add volatility to the market in the latter part of the day. Besides, weakening rupee and selling by FPIs are other factors that will keep bulls under control.

According to experts, the trend of buying at lower levels and profit-booking at higher levels will continue due to lack of clear positive or negative triggers.

The SGX Nifty at 15,890 indicates a gain of 100 points for Nifty futures. The Nifty June futures on Tuesday closed at 15,773.25 and the July futures at 15,817.10, against the spot close of 15,772.75.

Overnight, the US markets closed in the green, with the tech-focussed Nasdaq jumping 0.8 per cent, and the Dow Jones Industrial Average gaining 0.20 per cent and the broader S&P 500 0.5 per cent. Most Asian markets — Japan, Korea, Taiwan and Hong Kong, eked out marginal gains, while Australia slipped marginally in early trade on Wednesday.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said the domestic market would track global cues and RBI’s step forward, as the signs of rising inflation leads to fear of a sooner-than-expected tightening in global monetary policies, especially post US Fed’s hawkish policy statement. However, good monsoon so far, gradual opening up of the economy and the pick-up in the pace of vaccination provide support to the market.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said the short-term uptrend, after a fine upside bounce of Monday is still intact. Any weakness from here is going to be a buy on dips opportunity for the short term. “We expect Nifty to challenge the upper 15,900 levels again in the next few sessions and a sustainable move above this area could open more upside towards 16,200 levels. Immediate support is placed at 15,650.”

Stocks to watch

Krebs Biochemicals & Industries informed the exchanges that a group or section of employees from among the Krebs workers and Staff Union at the Nellore unit is keeping themselves absent from duty during various shifts in an “unauthorised and unjustified manner”. The company may face loss of production and hindrance in operations due to the strike, it said.

Hero MotoCorp will make an upward revision in the ex-showroom prices of its motorcycles and scooters, with effect from July 1, to partially offset the impact of the continuous increase in commodity prices. The price hike across the range of motorcycles and scooters will be up to ₹3,000.

United Breweries: SEBI has given exemption to Heineken International from making an open offer following the acquisition of its stake in UBBL. Heineken International is expected increase stake by 15 per cent to 61.5 per cent when the remaining 11 per cent UB Group pledged stake is sold by banks in future.

The Phoenix Mills: CPP Investment has completed the ₹180-crore investment in Mindstone Mall, a wholly-owned subsidiary company, by subscribing to 11,682 equity shares and 17.65 crore compulsorily convertible debentures (CCDs).

Century Plyboards (India): The company’s wholly-owned subsidiary, Century Panels, has considered a proposal for setting up a new unit in Andhra Pradesh for manufacturing of medium density fibre boards. The new MDF unit will cost the company approximately ₹500 crore.

Vedanta Ltd has been awarded the Kuraloi (A) North coal block in Odisha with a geological reserve of 1,680 million tonnes. The mine, with an estimated annual capacity of eight million tonnes, will ensure fuel security, improve power availability and further strengthen the company’s aluminium smelter operations in Jharsuguda, the company said.

ISGEC Heavy Engineering Ltd has announced that the company has crossed the impressive milestone of 100 CFBC boilers. These boilers cut across a wide spectrum of industries and sectors. ISGEC has achieved this milestone based on its long history of providing appropriate and technologically-advanced solutions to customers across a diverse portfolio of engineering sectors. The credit, in this particular case, also goes to its ongoing technical collaboration with Sumitomo SHI FW (formerly Foster Wheeler).

Minda Industries has announced that it has won a bid to acquire 51 per cent stake in automotive lighting manufacturer UZ Chasys LLC (UZ Chasys) in Uzbekistan for a purchase consideration of 83.1 Bn Sams equivalent to about ₹58 crore. The Uzbekistan government is moving toward liberalisation of the economy and divesting its stake is some of the government-controlled entities. As part of this process, the Uzbekistan government is divesting its 51 per cent stake in UZ Chasys through an auction process.

Wabco India: The offer-for-sale from Wabco India opens today (for non-retail investors) and on Thursday for retail investors at a floor price of ₹6,550. ZF International UK Limited, one of the members of the promoter group, plans to sell five lakh shres (base issue) through the issue and an additional 1.5 lakh shares through a green shoe option.

IPO screener

India Pesticides: The ₹800-crore public issue of India Pesticides will open for subscription today. The offer is a fresh issue of equity shares worth ₹100 crore and an offer-for-sale of up to ₹700 crore, by the selling shareholders. The company intends to use the proceeds from the fresh issue to fund its working capital requirements and for general corporate purposes. The IPO, with the price band of ₹290-296, will close on June 25 (Friday).

On Tuesday, India Pesticides, an R&D driven fast growing agro-chemicals company and manufacturer of Technicals and APIs, raised ₹240 crore from 12 anchor investors. The company has allocated 81,08,107 shares at ₹296 apiece to anchor investors, which included six foreign portfolio investors (Abu Dhabi Investment Authority, Wells Fargo, Plutus, Millenium, Tara and BNP Paribas) and domestic investors SBI Mutual Fund and Nippon Mutual Fund.

Results corner

Acrow India, Apollo Hospitals Enterprise, Asian Hotels (East), Allcargo Logistics, ATN International, Andrew Yule & Company, Deepak Spinners, Eastern Treads, Elnet Tech, Empire Industries, GKP, Goldcrest Corp, HCC, MBL Infrastructures, Mcleod Russel India, Mercator, Morgan Ventures, Munjal Showa, Precision Containeurs, Precision Wires India, Riga Sugar, Schneider Electric Infrastructure, Sharon Bio-Medicine, Speciality Restaurants, Technofab Engineering and V2 Retail will release their quarterly earnings on June 23.

COMMENT NOW