Markets likely to witness bounce back ahead of F&O expiry

K.S. Badri Narayanan | Updated on July 27, 2021

Canara Bank, Indigo, DR Reddy's, IndusInd Bank results eyed

Indian markets are expected to open on a strong note on Tuesday amid positive global cues. After lacklustre trading on Monday, analysts expect the market to witness much higher activity on Tuesday due to the impending expiry of July contracts on Thursday.

With most companies coming out with quarterly results on expected lines, markets need fresh triggers to go up further they added. The spread of Covid delta variant virus and progress of monsoon will be closely tracked, they said.

The SGX Nifty futures at 15,906 indicates a significant gain for Indian markets at open. Nifty July and August futures on Monday closed at 15,820.40 and 15,860.55, while Nifty closed at 15,824.45.

The US Stocks closed marginally higher overnight while Asian markets are mixed with Japan, Australia, Korea and Taiwan ruling in the green while China and Hong Kong markets are ruling weak.

L&T, Kotak Mahindra Bank, Axis Bank, Tata Motors, Vedanta, DLF and SBI Life were some high profile companies that came out quarterly results on Monday post market hours.

"Markets will track global cues for further market direction while a lot of stock-specific action will be seen given the earnings season in progress. Overall, the result season so far has been healthy and is providing g support to the market, which has shown strong resilience even though it faces headwinds from the advent of a possible third Covid wave and persistent inflation readings prompting a potential rate increase," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said that Nifty continued with broader range movement on the weekly chart. The formation of long lower shadow in the last two weekly candles signal emergence of buying enthusiasm at the lows. This could be an early indication of further upside potential in the market before showing any sharp down trend.

Stocks to watch

HCL Technologies (HCL), a leading global technology company, was selected as a launch partner for Microsoft's recently announced industry cloud - Microsoft Cloud for Financial Services, which brings together capabilities with multi-layered security and comprehensive compliance coverage to deliver differentiated customer experiences, improve employee collaboration and productivity, manage risk and modernise core systems.

Srikalahasthi Pipes Ltd has taken shut down its Mini Blast Furnace (MBF) from July 25 for about 18 days to complete commissioning of new Blast Furnace to increase the capacity from 3,00,000 TPA to 4,00,000 TPA. During this period, the Ductile Iron Pipes Plant of the company will also be under shutdown for taking up various synchronisation jobs as well as commissioning of new finishing Line.

Lasa Supergenerics Limited, one of the leading players in the manufacturing of Veterinary APIs in India through its catalyst chemistry expertise and fully backward integrated unit, has faced some untoward incidences in the form of fire at its unit in Mahad and also natural calamity in the form of floods at its Chiplun Units. No casualty was reported in any of the units. “Since we are in an industry that deals with highly inflammable chemicals and processes, we ensure to follow every possible guideline and take every necessary & cautionary step to keep ourselves and our plants safe... Since we are full of order book we cannot afford to lose even a single customer or order hence by hook or crook we shall be back stronger at the earliest. I assure stakeholders that we will take every necessary step to come back stronger and also urge not to panic as things are under control and we are confident to recommence immediately,” said the CMD.

Biocon Biologics partnered with US-based Adagio Therapeutics to advance antibodies for the prevention and treatment of Covid-19.

Prataap Snacks: The commercial production at a newly set up unit at Howrah, West Bengal, commenced on July 26. The unit has been set up to produce extruded snacks, pellets and other snacks with a capacity of about 6,000 tonne per annum.

The Board of Directors of Elango Industries has decided to withdraw the proposal to issue equity shares through preferential basis, which was earlier intimated on July 20, and not take up the item at the ensuing Annual General Meeting. However, the Board has promised to infuse capital through other means or preferential issues later when its proposal for expansion materialises.

Kilitch Drugs India Ltd, the manufacturer of Injectables in India, starts production of the Cephalosporin Injectables at Ethiopia manufacturing plant. The company had started its greenfield project in Ethiopia in 2018 to build a world-class Injectable plant. In early 2021 the company started producing Antiseptic and Disinfectant products to help Ethiopia fight against the Covid-19 pandemic.

Gyscoal Alloys entered into one-time settlement (OTS) with the State Bank of India under its scheme. The main purpose of OTS was the resolution of NPA debts. Under the scheme, the company has settled its total loan from SBI by paying ₹21.35 crore and has received No due certificate from SBI.

Alankit Limited has been awarded an advance purchase order for the operation of existing unified call centre for various services and other essential services of MTNL, Mumbai for two years.

IPO Screener

Glenmark Life Sciences public issue opens for subscription today and will end on July 29. The initial public offer (IPO) will have fresh issue of equity shares worth up to ₹1,060 crore and sale of up to 63 lakh equity shares by Glenmark Pharma.

The price band of the issue is ₹695-720 a share.

The company on Monday raised ₹454 crore from anchor investors. The will allot 63,06,660 shares to 19 anchor investors at ₹720 a share. HSBC Global Investment Funds, Government Pension Fund Global, Oaktree Emerging Markets Equity Fund LP, Copthall Mauritius Investment Ltd -ODI account, Societe Generale-ODI, Kuber India Fund and Reliance General Insurance Company are among the anchor investors.

Results Calendar

Aarti Drugs, Ansal Housing, Anup Engineering, Apar Industries, Arihant Capital Markets, Bhageria Industries, BLS International Services, Canara Bank, Confidence Petroleum India, Dr Reddy's Laboratories, Dalmia Bharat, Dixon Technologies, EIH Associated Hotels, Elantas Beck India, Filatex India, GM Breweries, Godawari Power & Ispat, Granules India, Gravity India, Greenlam Industries, Hindustan Fluorocarbons, IIFL Finance, IndusInd Bank, InterGlobe Aviation, KPR Mill, Karnataka Bank, Lux Industries, Mahindra Logistics, Mirza International, Morepen Lab, Orient Hotels, Ramco Cements, Ramco Industries, Sanofi India, Sharda Cropchem, Shemaroo Entertainment, Snowman Logistics, Tips Industries, Torrent Pharmaceuticals, TTK Prestige, UCO Bank and VST Industries are among the companies that will release quarterly earnings on July 27.

Published on July 27, 2021

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