Market may open flat with positive bias

KS Badri Narayanan Chennai | Updated on June 07, 2021

RInfra, Hero Moto, IOL Chem, Welspun, Rohit Ferro to remain in focus

Indian markets are likely to open on a positive note but within the range, amidst positive global cues, easing corona cases and mixed economic data. The BSE Sensex, which narrowly missed topping the all-time high of 52,516.76 on Friday, will remain in focus.

The SGX Nifty at 15,733 (8 am IST) indicates a flat-to-positive opening for Nifty futures, which on Friday closed at 15,700.85 on the NSE.

Also read: In a turnaround, FPIs buy stocks worth ₹7,967 cr

Most Asia-Pacific stocks are also listless with markets in Japan, China, Australia and South Korea trading little changed. However, Taiwan equities are down about 0.6 per cent.

US stocks on Friday closed firmly with Nasdaq rising almost 1.5 per cent or 200 points. The Dow Jones and S&P 500 indices too edged up 0.5 per cent and 0.9 per cent respectively.

For most analysts, GST collection for May was a big positive surprise. Despite shutdown in most States, GST collection stood at ₹1.02-lakh crore, though down compared with the April figure of ₹1.41-lakh crore.

According to analysts, the fall in number of positive covid cases and partial reopening across States bode well for the sentiment. However, with the Q4 results session almost over, the market will wait for further cues before taking a clear direction. Till such time, it will move in a narrow range with alternate bouts of buying and selling, they added.

The domestic markets witnessed an eventful week with regard to the release of Q4 GDP, PMI data, and RBI’S MPC announcement amidst increased optimism due to declining covid cases. A delay in the start of the monsoon season also added cautiousness to the market, said Vinod Nair, Head of Research at Geojit Financial Services.

“The kind of price action we have been witnessing since a few days, the commentary would sound a bit repetitive because there is nothing different to talk about. As we have been mentioning, every 100 points upside level should be treated as an immediate resistance and now this level comes at 15800,” said Angel Broking and added: “We reiterate, when market moves in such typical manner, it’s better not to get complacent and one should take one step at a time. Also, it would be a prudent strategy to avoid aggressive leveraged bets (especially overnight).”

Stocks to watch

Reliance Infrastructure: The Board of Directors of Reliance Infrastructure Limited (RInfra) at its meeting held today has approved raising of funds up to ₹550.56 crore through preferential allotment of up to 8.88 crore equity shares and / or warrants convertible into an equivalent number of equity shares of the company at ₹62 each to the promoter group and VFSI Holdings Pte. Limited, an affiliate of Värde Investment Partners. The funds raised would be utilised for long-term resources, general corporate purposes, future growth activities and to reduce debt.

Rohit Ferro: Tata Steel Mining Limited (TSML) has been declared as the successful resolution applicant by the creditors of Rohit Ferro-Tech Limited, steel major Tata Steel said on Sunday. Tata Steel Mining Limited is a wholly-owned subsidiary of Tata Steel.

Hero MotoCorp has announced its reinvigorated strategy for the Nigeria market. Building on its aggressive strategy to have a robust market presence, the New Delhi-headquartered company also launched a new motorcycle that is developed especially for the Nigerian market. The diversified Kewalram Chanrai Group is the exclusive distributor of Hero MotoCorp in Nigeria. With its extensive experience in the automotive sector spanning several decades, the Group will play an integral role in Hero MotoCorp’s growth plans in Nigeria.

Power Grid Corporation of India Limited, pursuant to its selection as the successful bidder under tariff based competitive bidding, has on June 6, 2021 acquired Fatehgarh Bhadla Transco Limited (FBTL), the Project SPV to establish transmission system strengthening for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under phase II — Part B, on build, own, operate and maintain (BOOM) basis from the Bid Process Coordinator — REC Power Distribution Company Limited. It has also acquired Sikar New Transmission Limited (SNTL), the Project SPV to establish transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW).

Welspun Corp has said that American Petroleum Institute has granted license to apply API monogram on its saw pipes for the Madhya Pradesh facility.

Shalby has inaugurated a new hospital with new infrastructure. The 150-bed capacity hospital, named Zynova-Shalby, is located at Ghatkopar, West Mumbai. Shalby is the operations and management partner for healthcare services with Zynova hospitals for a period of 30 years. Zynova Multi-Specialty hospitals has a wide range of super specialty services, including OPD, IPD, day care, surgical works, ER, ICU, cathlab, etc.

Aruna Hotels: The National Company Law Tribunal has directed the Resolution Professional (RP) to hand over the management to the Board of Directors of the company, whose powers had stood suspended by virtue of the initiation of the Corporate Insolvency Resolution Process (CIRP) by the Tribunal. The NCLT has pronounced the order that all connected applications stand closed and that the powers of the Board of Directors stand restored consequent to the withdrawal of the CIRP in relation to Aruna Hotels.

Setco Automotive: The board of Setco Automotive has approved a proposal in respect of assignment and transfer of all the trademarks, designs and other intellectual property rights, relating to the clutch manufacturing business, including the ‘LIPE’ brand (’IPRs’) which are owned by the wholly-owned ultimate subsidiary of the company, i.e. Setco Automotive (UK) Ltd (SAUL) and step-down wholly owned subsidiary of the company, i.e. Setco Automotive (NA) Inc. (SANAI), to the company, as a related party transaction. The board also approved a proposal to evaluate, consider, negotiate and execute transaction documents for the proposed fund-raising through issuance of equity shares and convertible instruments by Setco Auto Systems Private Limited, a wholly owned subsidiary of company, to the schemes of the India Resurgence Fund managed by India Resurgence Asset Management Business Private Limited, for up to 27 per cent of shareholding in Setco Auto Systems Private Limited on a fully diluted basis.

IOL Chemicals: The board of IOL Chemicals and Pharmaceuticals has approved the enhancement of the manufacturing capacity of Ethyl Acetate from 87,000 MT per annum to 100,000 MT per annum, by de-bottlenecking and re-engineering of the existing plant, at an aggregate capex of ₹0.25 crore, funded through internal accruals only. The company successfully set up new manufacturing facilities to manufacture Ibuprofen derivatives and other pharma products at a capex of ₹21.26 crore, funded through internal accruals only.

Results calendar

Central Bank of India, MRF, Mrs Bector Foods, Dynamatic Technologies, Graviss Hospitality, Jubilant Ingrevia, New India Assurance, Seamec, Shree Pushkar Chem, Union Bank of India and Victoria Mills are among the companies that will declare results for the March quarter today.

Published on June 07, 2021

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