Markets likely to open flat

KS Badri Narayanan Chennai | Updated on May 04, 2021

Fear over continuous rise in Covid cases, extended lockdowns in States likely to cap upside

Markets are likely to open marginally down on Tuesday, amidst mixed global cues. Though the positive recovery rate in Covid cases bodes well, economists are still grappling with uncertainty, analysts said. The SGX Nifty is currently hovering around 14,663 (8 00 am IST), which is about 20 points lower as against Nifty May futures that closed at 14,685 on the NSE on Monday.

As Japan market is closed, other Asian markets provide little cues. Overnight, the US markets ended sharply higher with Dow and S&P 500 climbing 0.70 per cent and 0.3 per cent respectively. However, tech-heavy Nasdaq closed 0.5 per cent lower.

Joining a host of others global brokerage firms, Barclays too cut India’s FY22 GDP growth estimate to 10 per cent from its earlier projection of 11 per cent.

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Markets are likely to be range-bound as the fear over continuous rise in Covid cases and extended lockdowns in various States are likely to cap the upside, said Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services Ltd.

“Most Indian States have announced local lockdown measures to combat the virus in their respective jurisdictions. We expect activity levels to sequentially weaken further in May as most States extend mobility restrictions to flatten the curve, thus adversely impacting real GDP growth in the June-2021 quarter,” said Tanvee Gupta Jain, Economist, UBS Securities India Pvt. Ltd.

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However, the record GST collection for April and strong service PMI give hope for the Indian economy. India’s Manufacturing PMI data in April was flat at 55.5 with a mild change from March’s data of 55.4, mainly due to pick-up in international demand for Indian goods.

Stocks to watch

JSW Energy: JSW Future Energy Limited (formerly JSW Solar Ltd and 100 per cent subsidiary of JSW Energy) had received Letter of Awards for total Blended Wind capacity of 810 MW from Solar Energy Corporation of India Limited (SECI) through competitive bidding. JSW Renew Energy has signed a Power Purchase Agreement with SECI for the contracted capacity of 540 MW out of total awarded capacity of 810 MW. This is the single largest PPA for wind/blended wind category in the industry, and marks the foray of the company into wind/blended wind energy generation segment.

IIFL Wealth Management: After all the final regulatory approvals and enablements of SEBI, Exchanges and Depositories, etc., the migration of the entire broking, DP, distribution activities, operations, system and process are successfully implemented from IIFL Wealth Management Limited (IIFLW) to wholly-owned subsidiary IIFL Wealth Distribution Services Limited (IIFLWDSL) from May 3, the company said in a notice to the stock exchanges.

Uttam Sugar Mills has successfully set up and implemented the “Incineration Boiler” at the Distillery unit (Barkatpur) of the company. This will result in increase in the distillery capacity of the company from 450 Lakh BL p.a. to 540 Lakh BL p.a, it said in a notice to the stock exchanges.

Bafna Pharmaceuticals Ltd has added two fully-automated packaging lines to its existing capacity and they have been approved by the UK-MHRA (Medicines and Healthcare products Regulatory Agency) for the UK United Kingdom and the European Union (EU).

Nava Bharat Ventures, which had announced cessation of operations at the sugar division at Samalkot, East Godavari District, Andhra Pradesh, has now entered into a binding agreement for the sale of plant and equipment, excluding land.

KPI Global Infrastructure Ltd has bagged an order to execute solar power project of 12.50 MW capacity under “Captive Power Producer (CPP)” category from Anupam Rasayan India Limited, Surat. The Letter of Intent has been received by the company for the order.

Results calendar: Adani Ports and Special Economic Zone, Alembic Pharmaceuticals, Apollo Pipes, Adani Total Gas, Bhagiradha Chemicals, DCM Shriram, Dr Agarwals Eye Hospital, EIH Associated Hotels, Elango Industries, Elantas Beck India, Greaves Cotton, IIFL Securities, Larsen & Toubro Infotech, Morepen Laboratories, Procter & Gamble Hygiene & Health Care, RBL Bank, Skipper, Srikalahasthi Pipes, Suven Life Sciences and Vikas WSP will declare their quarterly/annual results for the period ended Mach 2021, on Tuesday,

Published on May 04, 2021

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