Positive momentum is likely to continue for Indian stock markets on Friday, thanks to bullish global cues. SGX Nifty is currently ruling at 14,875 (800 am IST), signals a 100-point gap up opening for Nifty futures, which on Thursday closed at 14,769.95.

The US stocks overnight closed strongly higher, with Dow Jones gaining over 300 points and the tech-focused Nasdaq 50 points. Asian stock markets in the morning session too followed suit, as Japan's Nikkei, Korea's Kospi, Taiwan Weighted Index and Australia's ASX are ruling with a gain of between 0.3 per cent and 0.8 per cent.

FPIs turn buyers

According to analysts, foreign institutional investors turned buyers of Indian equities on Thursday for the first time in May. FPIs bought shares worth 1,222 crore on Thursday. According to analysts the US President Joe Biden’s decision to waive intellectual property rights on Covid-19 vaccines triggered optimism for markets as it will help India handle third phase in better efficient manner.

Binod Modi, Head Strategy at Reliance Securities, said: "While several States had started showing sign of reversal in daily caseload in last couple of days, sharp rise in daily cases again yesterday to 4.12 lakh raises concerns. Notably, market is still factoring-in reversal in daily caseload by the end of May or mid of June and any sign of absence of reversal within this period will dent investors’ sentiment".

Investors would be keenly watching out vaccination progress and recovery rates. Further, despite putting enhanced mobility restrictions by States, manufacturing and infrastructure activities have not halted yet, and companies appeared to be proactive this time to convince most workers to stay back by offering basic amenities and facilities. Therefore, large economic damage like last year is unlikely to happen, said Modi.

STOCKS TO WATCH

CG Power and Industrial Solutions: The Board will meet on May 11 to consider amongst other businesses, issue of equity shares on preferential allotment basis to Standard Chartered Bank (Singapore) Limited, a Qualified Institutional Buyer, as settlement of all obligations under a guarantee issued by the Company and in accordance with applicable laws.

Sadbhav Infrastructure Project Limited has entered into the Debenture Trust Deed to raise ₹700 crore from Allianz Global Investors and AMP Capital. Of that, the company has already raised ₹550 crore from the investors. The funding has been structured with flexible repayment obligation linked to monetisation of the SPVs of SIPL within a tenure of 48 months to 63 months. Further, SIPL has sold 7 per cent of units in IndInfravit Trust to CPP Investments for a total consideration of ₹441 crore. SIPL continues to hold 3 per cent of units in IndInfravit Trust and will continue as one of the Project Managers for IndInfravit Trust. The long term funding and sale of units will help the company to inter alia meet repayment of all its existing short term debt obligations and to fund the ongoing portfolio of Hybrid Annuity Model (HAM) road assets of the company. Apart from Allianz GI and AMP who are long term investors, the company will not have any third party debt except for non-fund based working capital lenders.

Aurionpro has announced exit from the cybersecurity business with the sale of its investment to Forcepoint LLC., USA. The deal, for the divestment of all stake held by Aurionpro in its cyber security business is valued at a consideration of $9.6 million (approx. ₹71 crore) which is net off all taxes and obligations. Out of the total consideration, ₹45 crore will be received upfront and remaining amount to be received in tranches over a year upon fulfilment of contractual warranties and earn out.

Cupid has received a purchase order from Uttar Pradesh Medical Supplies Corporation Limited for supply of Covid - 19 Antigen Based Rapid Test Kits worth ₹10.50 crore. "We are excited to receive this repeat order to supply Test Kits", says Omprakash Garg, CMD, Cupid.

Shri Bajrang Alliance : Chhattisgarh Environment conservation Board, Raipur, has accorded its approval for "Consent to Operate" oils and oleoresin Essential Oils Plant at Agro Division. Similarly, Chhattisgarh Environment Conservation Board, has granted its consent to the company to establish Oils and Oleoresin Essential Oils Plant of capacity - 600 Kilo Liters Per Year within existing Agro plant premises. Currently, the company is engaged in the business of Iron, Steel and Ready to eat frozen foods. As a part of the strategy, the Company will soon launch its Supercritical fluid extraction (scFE) Products.

Zensar Technologies : The UK-based FinTech Infinity Circle has selected Zensar for end-to-end development of its next-gen wealth management platform.

Result Calendar

Automobile Corporation of Goa, Cholamandalam Investment and Finance Company, Dabur, Duncan Engineering, EIH, Great Eastern Shipping, Glance Finance, Godrej Agrovet, Grindwell Norton, HDFC, Indo-City Infotech, Kansai Nerolac Paints, Navin Fluorine International, Nitta Gelatin India, Pioneer Distilleries, Ponni Sugars (Erode), Reliance Home Finance, Reliance Power, R Systems International, Sacheta Metals, Steel Strips Wheels, Sutlej Textiles & Industries, Tanfac Industries, UltraTech Cement and Yash Trading & Finance will release their quarterly financial performance on Friday.

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