Domestic markets are likely to remain positive on Wednesday despite mixed global cues. Short-covering ahead of F&O expiry (April contracts) on Thursday and relatively better preparedness to tackle the spread of Covid-19 seemed to have infused a positive sentiment in the market, said analysts.

Though FPIs continue their selling, domestic funds and institutions resort to aggressive buying at lower levels and keep the market afloat, they added. Ahead of the F&O settlement, market is expected to remain volatile.

The SGX Nifty is currently ruling at 14,732 (8 am) as against Nifty April futures close of 14,644 and 14,698 (May futures), signalling positive bias. Asian markets remain mixed, with Japan, Australia, Hong Kong and the Philippines remaining in the green while Korea, Taiwan and China in the red. Overnight, the US markets ended little changed.

According to analysts, though markets may open on a positive note, to sustain the gains follow-up buying should emerge from domestic funds given the mood of FPIs, who sold shares over ₹8,500 crore since this fiscal beginning.

"Stocks are up in anticipation of good quarterly earnings and improved outlook due to a hike in stock prices and demand. Mid- and small-caps are outperforming the main benchmark. This is though FIIs continue to be net sellers in the domestic market, due to weak Asian markets ahead FED meeting, it was more than compensated by DIIs & retail investors," said Vinod Nair, Head of Research at Geojit Financial Services.

According to BofA Securities, "While the ongoing earnings season could see the Street cutting its estimates, we think markets are likely to look beyond the short- term pain. We raise back our overweight skew in Financials. Industrials, Materials, trim our overweight position in IT & reduce staples to a neutral view".

Stocks to Watch

Info Edge : The company has said it will sell stake worth ₹750 crore in the initial public offering (IPO) of its investee company Zomato. In a notice to the stock exchanges, Info Edge said Zomato -- an online food delivery platform -- is proposing an IPO of its equity shares, comprising a fresh issue of equity shares by Zomato Ltd and an offer for sale by Info Edge (India) Ltd. "The Board of Directors of the Company today considered and have given their approval to the company to participate in the said Offer for Sale of up to such number of shares of Zomato Ltd as would aggregate up to Rs 7,500 million...," it added.

Atul : The company has informed the exchanges that it along with Nouryon has started production at Anaven, a new joint venture in Gujarat. The joint venture will help meet the rapidly growing demand in India's agricultural, personal care and pharmaceutical markets. Anaven is India's largest monochloroacetic acid (MCA) production site, with a current capacity of 32,000 tons of MCA per year, with the possibility of a rapid expansion of up to 60,000 tons per year. MCA is used as an essential raw material for a variety of products, such as adhesives, pharmaceuticals and crop protection chemicals. Atul consumes a portion of the MCA directly in its own production of crop protection chemicals.

Bharat Forge : The NCLT, Ahmedabad, has approved the resolution plan submitted by Bharat Forge for acquisition of Sanghvi Forging & Engineering.

Goldiam Group has received additional export orders worth ₹ 70 crore from its international clients for manufacturing of diamond studded designed gold jewellery and aforesaid order will be delivered within coming 100 days, with this additional order, Goldiam Group's order book crosses aggregate of ₹ 150 crores as on date.

Results Corner: Bajaj Finserv, Biocon, Bombay Dyeing & Manufacturing, Carborundum Universal, Chennai Petroleum Corporation, Enkei Wheels, GHCL, Hathway Cable & Datacom, KPIT Technologies, KPR Mill, KSB, Maharashtra Scooters, Mastek, Mega Fin (India), Nelco, Pacheli Industrial Finance, Shree Digvijay Cement, SIS, Sundaram-Clayton, Tata Communications and UTI Asset Management Company will release quarterly earnings today.

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