Markets likely to open on a flat note

KS Badri Narayanan Chennai | Updated on June 28, 2021

Consolidation phase likely to continue, say analysts

Domestic markets are expected to open the new week on a positive-to-flat note amid mixed global cues. Market experts said the market would largely remain in a consolidation phase before taking a clear direction.

The SGX Nifty is currently ruling at 15,900 indicates (8 am) against the July futures at 15,888, and the spot close of 15,860.95.

Last week, the US markets closed with a mixed tone, with tech-focussed Nasdaq slipping marginally even as the Dow Jones Industrial Average and the broader S&P 500 closed higher, with the latter hitting a record high on Friday.

Most Asian markets are ruling flat, with Japan, Korea and Australia edging down marginally while Taiwan ruling in a positive zone with minor gains.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said earnings season for FY21 ended on a strong note with Nifty EPS growing at 14.2 per cent\ y-o-y to ₹539 – the highest since FY11.

"We expect earnings momentum to accelerate in FY22 as the pace of vaccination has picked up and the economy opens up further. Good monsoon so far also supported bullish sentiments. Hence, we expect the long-term trend of the equity market to remain positive," he said and added "Near term direction of the market would be determined by commodity price-led inflation and its impact on interest rates."

Stocks to watch

Thyrocare Technologies: API Holdings Ltd (API), the parent co. PharmEasy, has signed definitive documents to acquire 66.1 per cent stake in Thyrocare Technologies Ltd (Thyrocare) from Dr. A Velumani and affiliates (promoters of Thyrocare) at a price of ₹1,300 a share aggregating to ₹4,546 crore. It has also announced a mandatory open offer to acquire 26 per cent stake at ₹1,300 a share from the public shareholders of Thyrocare.

Granules India: The US FDA has completed inspection of the facility of Granules Pharmaceuticals, Inc., a wholly owned foreign subsidiary of the company located in Chantilly, Virginia, US, on June 25 with two (2) minor observations. This is a pre-approval inspection for the products filed from this facility. Granules Pharmaceuticals, Inc. will respond to these observations within the stipulated time, it said in a notice to the bourses.

IL&FS has received ₹1,925 crore from Haryana Shehari Vikas Pradhikaran (HSVP) as interim termination payment in the Gurgaon Metro Project case. This payment, duly received in escrow accounts, comes in compliance of Supreme Court's order of March 26, 2021 that ruled in favor of IL&FS in the Gurgaon Metro Project - developed through ILFS subsidiaries and Special Purpose Vehicles (SPVs) - Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL).

Dhunseri Tea: The Board of Dhunseri Tea & Industries Ltd has recommended the issue of bonus shares in ratio of one bonus share for every existing two shares (1:2) as on the record date, which is August 6. The decision is subject to approval of the members through postal ballot, the company said.

Affle Global, an affiliate of Affle India, has claimed that it has won the initial legal battle against against Walmart-owned PhonePe in a Singapore court in the Indus OS stake sale matter. PhonePe had placed a bid to acquire 92 per cent stake in Indus OS at around $60 million. Affle had opposed PhonePe's bid to acquire 92 per cent in Indus OS citing low valuation.

Result Calendar

Over 300 companies will declare their quarterly and FY 2021 results on Monday. Among the include 20 Microns, Aarvee Denim, AM Forge, Amtek Auto, Auto Industries, Bartronics, Coral Lab, Damodar Industries, Euro Leder, Everlon, Future Lifestyle, Federal Mogul Goetze, GIC Housing Finance, Gravity India, Hindustan Aeronautics, IFCI, Ind Swift, ISGEC Heavy Engineering, Kanchi Karpooram, KCP Sugar, Kiri Industries, Lakshmi MIlls, Manugraph, NALCO, NLC India, Oil Country Tubular, Ruchi Infra, Scooters India, Sintex Plastics, TN Petro, Vivimet Lab, Wanbury, Welcorp and Zee Media.

Published on June 28, 2021

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