Markets are likely to witness another lacklustre trading on Wednesday, even as the Reserve Bank will unveil its monetary policy in the afternoon. However, global stocks continue to unsupportive of bulls, with the US and some Asian markets being listless.
SGX Nifty at 14,760 (8 am IST) indicates a flat opening, as Nifty futures on Tuesday closed at 14,750. While Dow Jones, Nasdaq and S&P 500 closed marginally lower overnight, Asian markets such as Japan's Nikkei, China's Shanghai, Australia's ASX and Korea's Kospi were little changed in the morning.
All eyes on the outcome of RBI meet, and their prognosis is going forward to boost the economy. Vinod Nair, Head of Research at Geojit Financial Services, said: "The domestic market was awaiting the RBI policy with an expectation to maintain the status quo, future commentary on growth and inflation will be highly viewed with an optimistic outlook on FY22."
According to Nagaraj Shetti, Technical Research Analyst, HDFC Securities, A small negative candle was formed with a long lower shadow, which indicates a consolidation movement in the market with lower buying levels. The formation of lower shadow in the last two daily candles signals an emergence of buying interest from the lows.
While the tussle between the virus and the vaccine continues to add to the volatility, savvy investors were seen accumulating Midcap stocks with higher growth prospects, said S Ranganathan, Head of Research, LKP Securities.
Stocks to watch
Barbeque-Nation Hospitality Ltd : After the successful IPO, the shares of the company will be listed on the stock exchanges on Wednesday. The IPO of restaurant chains was nearly subscribed 6 times with the portion reserved for retail investors getting 13.13 times. While the Qualified Institutional Buyer category was subscribed 5.11 times, the Non-Institutional Investor category received bids for 3.10 times. The IPO was a fresh issuance of equity shares of Rs 5 face value, aggregating up to Rs 180 crore and an offer for sale of up to 54,57,470 equity shares of face value of Rs 5 each by the selling shareholders. The price band of the issue was Ra 498-500.
Reliance Industries' arm Reliance Jio Infocomm Ltd has entered into a definitive agreement with Bharti Airtel for acquisition of right to use spectrum in the 800MHz band in Andhra Pradesh, Delhi and Mumbai circles through spectrum trading. The trading agreement is in accordance with the Spectrum Trading Guidelines issued by the Department of Telecommunications and is subject to the requisite regulatory and statutory approvals. The aggregate value for the right to use this spectrum is Rs 1,497 crore, inclusive of present value of associated deferred payment liability of Rs 459 crore, subject to any transaction related adjustments.
Cholamandalam Investment and Finance Company Limited (Chola), the financial services arm of Murugappa Group, today announced that it is one of the companies participating in a consortium - Vishwakarma Payments Pvt. Ltd., that has applied for an NUE (New Umbrella Entity) license for Retail Payments with RBI. Vishwakarma Payments is a company incorporated in India under the Companies Act, 2013. FSS, Zoho, Zerodha, RazorPay, Ujjivan and Airpay are also part of the Vishwakarma Payments consortium along with Chola.
Axis Bank together with its subsidiaries Axis Capital Limited and Axis Securities Limited has become the co-promoters of Max Life Insurance Company Limited, after completion of the acquisition of 12.99 per cent stake in Max Life. The Board of Max Life recorded the closure of the deal today. The transaction was completed after the Insurance Regulatory and Development Authority of India gave its formal approval in February. Max Life's holding company Max Financial Services Limited and Axis Bank had first announced their intent to bring in the latter as a strategic partner in Max Life in February.
Mahindra & Mahindra has incorporated Mahindra Solarize Private Limited as a wholly owned subsidiary through Mahindra Susten Private Limited and Mahindra Holdings Limited), Mahindra Solarize Private Limited will mainly undertake business for Distributed Energy including rooftop solar installation for commercial, industrial, institutional and residential segment, solar water pump and other Renewable Energy industry based products including Engineering Procurement & Construction.
Concord Drugs Limited has started the Dry Syrup Division at its existing plant situated at Survey No.249, Brahmanapally Village, Hayatnagar Mandal - 501511, Telangana
Macrotech Developers launches its Rs 2,500-crore inital public offering on Wednesday through fresh issue of shares. The issue will close on April 9. From IPO proceeds, Macrotech proposes to reduce debt by up to Rs 1,500 crore and acquire land or land developmental rights aggregating up to Rs 375 crore. Ahead of the issue, Macrotech Developers Limited also known as Lodha Developers, has raised Rs. 740 crore from 14 anchor investors. The company informed the bourses that it has allocated 1.52 Cr shares at Rs. 486 per share on Tuesday, April 6, 2021 to anchor investors.