Stocks

Markets likely to open with positive bias despite mixed global cues

KS Badri Narayanan Chennai | Updated on March 09, 2021

Stocks likely to witness action are: BPCL, Max Financial, PSP Projects Dhunseri Ventures, Mindspace Business Parks, Lemon Tree Hotels, and CMI.

Benchmark indices are expected to open with a positive bias on Tuesday, as the SGX Nifty is currently ruling 100 points higher at 15,080, as against Monday's Nifty futures closing price of 14,977 on the NSE.

However, Asian markets in early trade on Tuesday were mixed with Japan's Nikkei and Australian stocks were moderately up while Chinese, Korea and Taiwan stocks slipped. The overnight closing of US stocks too, presents a mixed clue with Nasdaq plunging over 2.4 per cent and S&P 500 by 0.5 per cent even as the Dow Jones Industrial Average edged up almost one per cent.

Analysts expect the market to remain in a consolidation phase. However, they expect volatility on the back of rising crude oil prices and, of late, slowing down foreign fund flows. On Monday, FPIs almost sold shares worth Rs 1,500 crore Monday that had changed the market’s direction in the afternoon.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said,

global cues were mixed as positive sentiment around better-than-expected US payroll data was offset by inflationary concerns post US Senate’s passage of a $1.9 trillion stimulus bill. Even a sharp jump in Brent crude oil price, which was above the $71 per barrel-mark concerned the market.

"While the long-term structure of the market continues to remain positive, it may face some hurdles in the near term due to concerns over the bond yields, commodity prices and risk of an increase in inflation. Investors would also track India’s import/export data along with bank’s loans and deposit growth data for further cues," he added.

Stocks to watch

BPCL: Reports that PSU major BPCL plans to sell 4 per cent treasury shares worth Rs 7,000 crore today and also will decide on special dividend after the stake sale, will keep the stock in focus. BPCL will sell treasury shares via block deal at about 7 per cent discount, the reports added.

Max Financial Services: Max Ventures Investment Holdings, a promoter of Max Financial Services on Monday offloaded shares worth Rs 85 crore through an open market transaction. As per block deal data on NSE, the promoter sold over 9.34 lakh scrips of Max Financial Services at an average price of Rs 910. This took the total deal value to Rs 85 crore. Through a separate transaction, the shares were bought by New York Life Insurance Company at the same price

PSP Projects has received letters of acceptance worth Rs 1,491 crore for construction of medical colleges and hospitals at multiple locations at Uttar Pradesh. Additionally, it has secured new work orders worth Rs 2,558 crore (excluding GST) for residential and institutional projects from various clients in Gujarat.

Dhunseri Ventures Limited has divested its entire shareholding of 25 per cent in Tastetaria Foods Private Limited in favour of its existing JV partner Choicest Enterprises Limited of Ambuja Neotia group. Consequent to the above, Tastetaria Foods Private Limited has ceased to be the company's joint venture company. The aforesaid disinvestment is in pursuance of the parties entering into necessary Exit agreement today.

Mindspace Business Parks REIT's SPV signs up with one of Asia's leading data center operator to sub-lease c.0.63 million sq. ft., as a data center, at Mindspace, Airoli (West), Mumbai. Gigaplex Estate Pvt. Ltd, one of the special purpose vehicles of Mindspace REIT, has entered into an agreement to sub-lease with a leading data center operator to sub-lease approximately 0.63 million sq. ft. at Mindspace, Airoli West, Mumbai.

Lemon Tree Hotels Limited has announced its latest international signing - a Lemon Tree Premier in Biratnagar in Nepal. The hotel shall be operated through its subsidiary and management arm, Carnation Hotels Pvt. Ltd. This hotel, owned by Nepal International Hospitality Pvt Ltd, is expected to open in January 2023.

CMI had undertook a pilot project in retail franchise / distribution in one of the northern states to capture the growth opportunity arising from increasing demand and encouraging results in Household and building segment. Buoyed by success of the pilot project, the company has decided to venture into retail foray on PAN India basis in other States to diversify the customer base and utilise the production capacity and planning to enter FMEG also. A step in this direction will open fresh avenues to find a place in B to C segment.

Southern Petrochemicals Industries Corporation Ltd's (SPIC) plants at Tuticorin have been restarted and production resumed at 14:30 hours on March 6, 2021 after completing all the jobs / activities.

DCW, India's leading specialty chemical company, has completed the refinancing of its debt with the issuance of NCDs (Non-Convertible Debentures) amounting Rs 350 crore and OCDs (Optionally Convertible Debentures) to be converted into equity within 18 months, amounting INR 60 crore. DCW will utilise the funds in refinancing the existing term loans and augment working capital. The company expects this fundraise to enhance capacity utilisation and meet increasing product demand. These NCD's carry a moratorium of 18 months and a tenure of six years.

IPO Watch:

The IPO of Easy Trip Planners, the company that operates online travel portal easemytrip.com, was subscribed over 2.3 times on Monday, the first day of the issue. On Friday, the company allotted Rs 229 crore worth of shares–45 per cent of the total issue size of Rs 510-crore to anchor investors.

The Rs 510-croe initial public offering, which opened on Monday, will open till March 10. The online travel company has fixed the price band at ₹ 186-187 a share. The IPO is an offer for sale by founder promoters, Nishant Pitti and Rikant Pittie. Nishant holds 49.81 per cent stake in the company and Rikant, 49.68 per cent.

Published on March 09, 2021

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