Market may remain range-bound amid lacklustre global clues

K. S. Badri Narayanan | | Updated on: May 26, 2021

Expectation of stimulus, falling Covid cases to anchor market direction

The Indian market on Wednesday will likely open on a flat note on lack of clear direction from global markets. However, with with May derivative contracts expiring on Thursday (tomorrow), the market is likely to witness volatility.

However, according to analysts, reports of a Government stimulus package and falling Covid-19 cases are positive triggers.

Also read: Global bid for vaccines: Maharashtra 0, MCGM 8

The SGX Nifty futures is currently ruling at 15,240 (8 am IST), indicating a flat opening for the Nifty. The Nifty May and June futures on Tuesday closed at 15,218 and 15,248.10 respectively.

After opening positive on Tuesday, US stocks too ended flat surrendering initial gains. Similarly, Asia-Pacific markets such as Japan, China, Hong Kong, Australia, Taiwan and Korea are also witnessing a lackadaisical trading on Wednesday.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said the overall structure of the market remains positive as many states are planning to ease restrictions in June which will help revive economic activities. “A stimulus, if announced by the government, will provide further support to much-needed sectors. Thus, as the second Covid-19 wave recedes in India (active cases down ~1/3rd in three weeks from the recent peak) and the pace of vaccination picks up during the remaining CY21, we hope and expect the journey will become a little smoother.”

Mohit Nigam, Head, PMS - Hem Securities, said: “The Nifty 50 seems to be in the range of 15,100 to 15,300 with the absence of a fresh trigger to move in either direction. However, it’s still a buy-on-dip market.”

Stocks to watch

PG Electroplast Limited has enabled resolutions to raise ₹76.6 crore from investors. Baring Private Equity India AIF, Ananta Capital (promoted by the Taparia Family) and the Patni family office are participating through preferential allotment of equity shares of ₹40.30 crore and Compulsorily Convertible Debentures (CCD) of ₹36.30 crore in the company. Through this, PGEL is planning to expand its plant situated in Pune which produces air-conditioners and cooler businesses and establish a new plant in Greater Noida which will produce air coolers, mobile phone parts and other plastic components. Total investment planned for the expansions is about ₹100 crore for this year.

The board of Hercules Heists has approved a proposal received from Hindustan Unilever Limited, Nashik, regarding purchase of three windmills, 1.25 MW capacity each situated at Khori, Dhule, Maharashtra. These windmills are part of the company’s ‘windmill’ business segment, with the total contribution of revenue from these windmills being only 1 per cent of the total operating revenue of the company.

Bodal Chemicals Ltd has incorporated PT Bodal Chemicals Indonesia in Jakarta as a wholly-owned subsidiary. The company has subscribed to the paid-up share capital consisting of 25 lakh shares at a price of Rp 1,000 per share for an aggregate consideration of Rp 250 crore (approximately ₹1.27 crore).

Result Calendar

Allsec Technologies, Arvind, Astra Microwave Products, Berger Paints India, Bharat Petroleum Corporation, Burger King India, Cummins India, Datamatics Global Services, FDC, Hindustan Composites, Hindustan Foods, J Kumar Infraprojects, LT Foods, Manappuram Finance, Mold-Tek Packaging, Pfizer, Pricol, Saksoft, Sharda Cropchem, Shreyas Shipping & Logistics, Sicagen India, The Investment Trust Of India, UFO Moviez India and Vardhman Holdings will declare their quarterly numbers on Wednesday (May 26).

Published on May 26, 2021
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