Market likely to open on a positive note

KS Badri Narayanan Chennai | Updated on June 24, 2021

F&O expiry, Reliance AGM to keep equities volatile

Domestic markets are expected to remain volatile on Thursday as the June contract is expiring today. Markets are expected to open marginally positive due to firm global trend. However, some market experts believe the market will largely remain in a range during most part of the day due to index heavyweight Reliance Industries, whose AGM will start at 2 pm. As the expectations are high, any disappointments could lead to a sharp downslide in the stock.

The SGX Nifty is currently ruling at 15,774 indicates (8 am) against the July futures at 15,742.35 and against the spot close of 15,686.95.

Overnight, the US markets closed on a mixed tone with tech-focussed Nasdaq rising 0.1 per cent while the Dow Jones Industrial Average and the broader S&P 500 edged down marginally. Most Asian markets such as Japan, Korea, Australia, Taiwan and Hong Kong are in the positive zone with minor gains.

Also read: Oil resumes climb on large US oil stocks drawdown

According to Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities, “Nifty failed to maintain its upward thrust. Along with this, the broader market health has also weakened. The larger setup suggests a possible short term correction up to 15,300 odd levels in the next few weeks. We suggest reducing long aggression and buying on aggressive corrections.”

Stocks to watch

Shares of Sona BLW Precision Forgings (Sona Comstar) and Shyam Metalics & Energy will make a debut on the exchanges today. While Sona Comstar’s ₹5,500-crore initial public offering was subscribed 2.28 times, the ₹909-crore public issue of Shyam Metalics received bids worth 121.42 times. Shyam Metalics has fixed the price at ₹306 a share, at the upper-end of the price band ₹303-306, while Blackstone-backed Sona Comstar, which came out at a price band of ₹285-291, fixed the issue price at ₹291.

Apollo Hospitals Enterprise

Apollo Hospitals Enterprise has announced a re-organisation through the slump sale of identified business undertaking including AHEL's back-end offline pharmacy business (excluding hospital-based pharmacies), AHEL's digital healthcare platform Apollo 24/7, AHEL's investment in retail pharmacy business (Apollo Medicals ), and the Apollo 24/7 brand, the Apollo Pharmacy brand and private label brands into AHEL's 100 per cent subsidiary Apollo HealthCo. Apollo HealthCo represents Apollo Group's transformational journey towards creating India's largest omni-channel healthcare platform. This platform will combine the strengths of Apollo Group's offline healthcare leadership with Apollo Group's new-age digital offerings to address all healthcare consumer needs.

Orchid Pharma

The OFS will open for subscription on June 24 for non-retail investors and on June 25 for retail investors. The OFS is being conducted to meet the minimum public shareholding of 25 per cent, as currently, the promoters hold 98.04 per cent. Dhanuka Laboratories, one of the promoters of Orchid Pharma, proposes to sell 32.80 lakh shares, representing 8.04 per cent of the total issued and paid-up share capital of the company. It may be recalled that Dhanuka Laboratories took over Orchid Pharma through corporate insolvency resolution process.

Asirvad Microfinance

Asirvad Microfinance and a subsidiary of Manappuram Finance has securitised (by direct assignment) microfinance loans worth ₹262 crore in a deal with a leading public sector bank in India. The announcement comes at a time when the microfinance sector in India has faced higher stress from lockdowns imposed after the onset of the second wave of the pandemic. Earlier in May 2021, the company has raised $15 million loan from WorldBusiness Capital Inc. based in Hartford, Connecticut (US).

Sharda Motor

The board of Sharda Motor Industries has considered, recommended and approved the joint venture between Sharda Motor Industries and Kinetic Green Energy and Power Solutions.

Ducon Infratechnologies

Ducon Infratechnologies, one of the leading EPC companies, announces that it has emerged as the lowest bidder (L-1) in reverse auction for Flue Gas Desulpharisation System (FGD) for Barauni Thermal Power Project, Stage II (2 x 250 MW), Barauni by NTPC. This is one of the directly bid projects by Ducon Infratechnologies and the expected value of the order is in the range of ₹500-600 crore.

Result calendar

Arrow Greentech, Almondz Global, Ashok Leyland, Allied Computers International, Baba Arts, Bemco Hydraulics, Bodal Chemicals, CL Educate, Coastal Roadways, Deep Industries, Digjam, Everest Kanto Cylinder, Essar Shipping, Future Supply Chain Solutions, Indian Card, LKP FInance, Mishra Dhatu Nigam, Mudra Financial Services, Nagarjuna Agri Tech, Nirlon, Oil and Natural Gas Corporation, PTC India, Rushil Dekor, Shree Rama Multitech, South India Paper Mills, Sundaram Multi Pap, Take Solutions, Thangamayil Jewellery, and West Coast Paper Mills are among the companies that will release quarterly earnings today.

Published on June 24, 2021

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