Indian markets are expected to begin the fresh week on a positive note, thanks to firm global cues. Following a strong closing by US and European stocks last week, Asian stocks are trading firm in early trade on Monday.

The SGX Nifty at 15,794 (8.15 am IST) indicates a gap-up opening of about 70 points. Nifty futures closed at 15,722.45 on Friday. All the major indices of the US markets ended with a gain of over one per cent last week. Asian markets are up between 0.7 and 2.3 per cent in early deals on Monday.

However, analysts project that the progress of the monsoon and the current result season will anchor domestic markets.

Binod Modi, Head Strategy at Reliance Securities, said: “the progress of the monsoon, 1QFY22E corporate earnings and Covid-19 positivity rates will be in focus in the near term. Further, higher capex by the government and a revival in industrials’ capex should aid economic recovery.”

According to him, any meaningful correction in the market should be taken as an opportunity to get in quality stocks. “Strong data from core sector output for May, a strong rise in import-export business momentum in June and visible traction in overall economic activities in June indicate healthy corporate earnings for 1QFY22E despite the second wave of Covid-19,” he added.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said: “ We are of the view that the market is hovering in the range of 15,635 to 15,900. The texture of the chart suggests 15,635/52,250 would be the sacrosanct level for the bulls and as long as it trades above the same a pull-back is likely to continue up to 15800-15850/52750/52850 Further upside may also continue, which could lift the index to 15,900/ 53,100. On the flip side, below 15,635/52,250 we can expect one more leg of correction up to 15,500-15,450/51,800-51,500. Sector Specific reality, banking and financial stocks are likely to outperform in the near future.”

Stocks to watch

The following stocks will be in focus on Monday due to specific information on them.

Bajaj Healthcare Ltd has informed the stock exchanges of a fire accident at one of its units at GIDC Panoli, Tal - Ankleshwar, Bharuch, Gujarat on July 11. Prompt brought the fire under control and there was no loss or injury to human life in the incident, it said. However, the company is ascertaining the extent of loss and has informed the insurance company as the entire factory and goods therein are adequately insured. The company is taking steps to ensure normal operation at the plant at the earliest, it further said.

The Board of Directors of Metropolis Healthcare had approved the acquisition of Dr Ganesan's Hitech Diagnostic Centre Private Ltd and its subsidiary Centralab Healthcare Services Private Ltd on January 17, 2021 in a combination of cash and equity shares deal.

To achieve closure of the transaction, the company took shareholder and other necessary approvals. However, the transaction has not been wholly consummated till date on account of delays in the completion of the sellers' obligations under the share purchase agreement. In the interim, the statutory approvals obtained by the company under SEBI ICDR have lapsed in accordance with applicable law and are required to be re-obtained, it said.

Unichem Laboratories has received tentative approval for ANDA of Sitagliptin Tablets USP, 25 mg, 50 mg, and 100 mg from the United States Food and Drug Administration (USFDA) for a generic version of Januvia (sitagliptin) tablets, 25 mg, 50 mg, and 100 mg, of Merck Sharpe and Dohme Corp (Merck). Sitagliptin tablets are indicated as an adjunct to diet and exercise, to improve glycemic control in adults with type 2 diabetes mellitus. The product will be commercialised from Unichem's Goa plant on receipt of full approval.

Shaily Engineering Plastics has approved raising of funds up to Rs 300 crore, in one or more tranches by way of issuance of securities through a qualified institutions placement/ preferential offer or a combination thereof.

Results calendar: Authum Investment & Infrastructure, Dr Lalchandani Labs (FY21 & March quarter), HFCL, HMT (March Qtr & FY21), Indbank Merchant Banking, Ind Bank Housing, ISMT (March Qtr & FY21), SM Gold and Steel Strips Wheels and Welcure Drugs will declare their quarterly results for theperiod ended June 30, 2021, on Monday.