Market likely to open on flat note amidst dull global cues

KS Badri Narayanan Chennai | Updated on June 29, 2021

A view of the Bombay Stock Exchange (file photo)   -  REUTERS

HDFC Life, RITES, Thomas Cook may see action

Domestic markets are expected to open on Tuesday on a negative-to-flat note amid weak global cues. As the Union Government announced fresh relief measures to boost economy, experts believe that the market is likely to move in a range with limited downfall.

The SGX Nifty is currently ruling at 15,858 indicates (8 am) a flat opening as the Nifty futures on Monday closed at 15,855 and the spot at 15,814.70.

The divergent trend continued at the US bourses, with tech-focussed Nasdaq and the broader S&P 500 edging up almost one per cent and 0.23 per cent respectively, even as the Dow Jones Industrial Average slipped 0.44 per cent.

Led by Japan, most Asian markets are weak in the morning trade. Equities in Japan, Korea, Hong Kong and Australia slipped between 0.5 per cent and one per cent.

The Finance Minister on Monday announced eight economic relief packages, including four new ones to boost economic recovery. It was largely aimed at extending support to the worst affected sectors due to the pandemic. The announcements included extension to Atmanirbhar Bharat Rozgar Yojana, a free tourist visa scheme, additional Rs 1.5 lakh crore for ECLGS, and 1.1 lakh crore loan guarantee scheme for Covid affected sectors, among others.

According to Dhiraj Relli, MD & CEO, HDFC Securities, A lot of thought seems to have gone into the announcements with a wide spectrum of the population intended to get reliefs. Although the total impact amount seems large at nearly Rs.6.29 lakh crore, a large portion of this is from credit guarantee schemes where there is no immediate outflow. However, the provision of credit guarantee oils the wheels of the respective focus areas enabling faster return to normalcy.

"Additional food subsidy, health spends for children and broadband support for 94,000 villages are some of the announcements that will need actual and immediate spends on causes that are well deserved. The impact of these announcements on the fiscal deficit will be limited while the stock markets could give a mild positive reaction to them,” he added.

Stocks to watch

HDFC Life Insurance: Standard Life is looking to sell seven crore shares, or 3.46 per cent, in HDFC Life Insurance. This will be through block deals on June 29. The price range has been fixed at ₹658-678 a share. At the lower end of the price range, the base offer size would amount to ₹4,606 crore. JP Morgan India and BoFA Securities India are the joint book runners. As on March 31, 2021, Standard Life held 17.95 crore shares amounting to 8.88 per cent in HDFC Life Insurance. HDFC Life stock closed at ₹696 a piece on the BSE on Monday.

RITES: Metro Express Limited, Mauritius has awarded additional work of consultancy services (PMC) for extension of the mainline from Rose Hill to Reduit through Ebene for an additional fee of MUR 250 millions (Rs 45 crore approximately).

Godrej Consumer Products: ICRA upgraded its long-term rating to [ICRA] AAA (Stable) from [ICRA] AA+ (Stable) while reaffirming its short-term rating of [ICRA] A1+.

Ramco Systems: The company will provide its next-gen Enterprise Resource Planning (ERP) software to Aden Ports Development Company (APDC) at their Aden Container Terminal (ACT, deepening its 12-year partnership with Yemen’s largest container terminal

Thomas Cook: The company's subsidiary DEI (Digiphoto Entertainment Imaging) has signed a multi-year memorandum with Shanghai Disney Resort, which is home to the Shanghai Disneyland theme park, featuring seven lands, two resort hotels, Disneytown, a large shopping, dining and entertainment district, Wishing Star Park and other outdoor recreation areas.

Results calendar

A2Z Infra, ABC India, Bajaj Steel, Bal Pharma, Balmer Lawrie Investments, Bambino Agro, Bilcare, Beekay Steel Industries, Chambal Breweries, Coastal Corporation, Cochin Minerals, DCM, DCM Finserv, DCM Shriram Industries, Dredging Corporation Of India, EID-Parry (India), Fermenta Biotech, Finolex Cables, GIC, Gallantt Metal, Gallantt Ispat, GOCL Corporation, Gujarat Mineral Development Corporation, Hindustan Oil Exploration, Himadri Speciality Chemical, Hubtown, Housing & Urban Development Corporation, IND-Swift Laboratories, IRCTC, Indo National, Indian Railway Finance Corporation, Jet Infra, Jyoti, Kirloskar Electric, KRBL, Lancor Holdings, LGB Forge, Madhucon, McDowell Holdings, MTNL, NBCC (India), Omaxe, Orissa Minerals, Quest, Rossell India, Ruchi Soya Industries, S&S Power, Sandesh, Stampede Capital, Sintex, Subros, Sunteck Realty, Suzlon, SW Solar, Tarmat, Titan BIotech, Uflex, Universal Cables, Vardman Poly, VLS FInance, Walchandnagar, Warren Tea, and Zee Learn are among the companies that will declare their quarterly results on Tuesday.

Published on June 29, 2021

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