It could be another dull day on the cards, at least in the initial hours, for markets on Wednesday as well. With the benchmarks ruling at all-time levels, fatigue seems to have set in for bulls due to lack of any positive triggers. Global markets also indicate a lacklustre day for benchmark indices, though some stock-specific action in mid- and small-cap space is likely to continue for some more time.
Analysts said though the market is flooded with liquidity, high valuation and relentless bull run keep the participants a little bit cautious. Unless some positive triggers come, the market is likely to move in a narrow range with profit taking to emerge on every rise.
The SGX Nify at 15,755 (8 am IST) indicates a flat opening for Nifty futures, which on Tuesday closed at 15,768.60. Most Asian-Pacific markets such as Japan, China, Taiwan, and South Korea are down marginally in early trade on Wednesday. However, Hong Kong, and Australia eke out narrow gains.
Overnight, the US stocks ended on mixed tone with Dow Jones and S&P 500 slipping less than 0.1 per cent even as Nasdaq edged up 0.3 per cent.
Economy to rebound
According to Deepak Jasani, Head of Retail Research, HDFC Securities, high-frequency economic indicators are showing early signs of a rebound as the second wave of Covid-19 cases ebbs. The turn, if it strengthens, will mean that the months of April-May were worst hit, with the economy set to rebound from June. The Nomura India Business Resumption Index, a weekly tracker of the pace of economic activity normalisation, rose for the week ended June 6 to 69.7 from 62.9 in the previous week, and 60.2 at its nadir.
"The advance decline ratio though in the positive, is falling and hence showing signs of profit taking across the markets. Sector rotation continues as does some specific stock rotation based on news and developments," he added.
Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking, said: "The market breadth continued to remain positive, however, a lot of sector rotation was seen since the banking space took a back seat. The defensive sectors witnessed buying interest with IT leading the momentum in the morning trade (on Tuesday), then some of the FMCG stocks witnessed interest and at the end, the Pharma stocks made a comeback. This indicates that while the uptrend continues, sometime correction/consolidation at the crucial juncture is seen and the momentum seems to be shifting to the above-mentioned sectors."
STOCKS TO WATCH
Religare : The board of Religare Enterprises Limited has approved capital raising of ₹ 570 crore from both existing and new marquee investors. As many as 5,41,56,761 equity shares of the Company will be issued at price of ₹ 105.25/share to existing shareholders like Burman family & Ares SSG Capital and selected new marquee investors. The funds raised would be primary utilised as growth capital for investment in its subsidiaries businesses, a REL statement said.
Videocon Ind : The Mumbai bench of the National Company Law Tribunal (NCLT) on June 8 approved Vedanta Group subsidiary Twin Star Technologies’ resolution plan for Videocon Industries and 12 other companies of the Videocon Group. As per the terms of the resolution plan, Videocon Industries will be delisted, the company said in a notification to the stock exchanges.
Som Distilleries and Breweries Limited have signed a MOU with Indian Fashion FZE, based out of UAE for export of our Beer and IMFL for West and Central Africa. "Through this MoU, we expect a substantial increase in our export turnover in the current financial year," it said in a statement to the stock exchanges.
Aegis Logistics : The board has approved investment in the equity shares of Aegis LPG Logistics (Pipavav) Ltd., by way of acquisition up to 100 per cent stake from its wholly owned subsidiary Aegis Gas (LPG) Pvt. Ltd. The board also approved further investment of Rs 56 lakh in the shares of Aegis LPG Logistics (Pipavav) Ltd. by acquiring additional 4,60,000 equity shares and 1,00,000 Compulsory Convertible Preference Shares.
Power Grid Corporation of India Ltd has announced the assets under HVDC Bipole link between Western Region (Raigarh, Chhattisgarh) and Southern Region (Pugalur, Tamil Nadu) - North Trichur, (Kerala) have been put under Commercial Operation from June 8.
TTK Prestige has unveiled the revolutionary Svachh Glass Top Gas stove in Hyderabad. Svachh Glass Top Gas stove makes the cleaning process effortless, by introducing innovative liftable burners fixed on a hinge with one arm. The product was developed in-house by the product development team at TTK Prestige. Having applied for the patent already for the design, TTK Prestige manufactures the gas stove at its Hosur factory.
Bandhan Bank : The Reserve Bank of India has granted approval for re-appointment of Chandra Shekhar Ghosh, Managing Director & Chief Executive Officer of the Bank, for a period of three years, with effect from July 10. The re-appointment as above is subject to the approval of shareholders at the ensuing Annual General Meeting of the Bank.
A host of companies including Akash Deep Metal Industries, Bata India, Bajaj Healthcare, BCL Industries, Digispace Technologies, Dynamic Cables, GAIL India, Gayatri Highways, GSS Infotech, Indian Metals & Ferro Alloys, Indraprastha Medical Corporation, Inventurre Growth Securities, Munjal Auto Industries, Mukta Arts, Ravindra Energy, Sadhana Nitrochem, Shivam Autotech, Star Cement, Taneja Aerospace, TeamLease Services and Universal Office Auotmation will delcare quarterly results on Wednesday.