Indian equities are likely to open with moderate gains, despite mixed signals from global markets. While Japan’s Nikkei slumped over 2 per cent, others such as Korea, Taiwan and the Philippines are down between 0.3-0.8 per cent. However, Australia and Hong Kong markets are up moderately.

The SGX Nifty, which is ruling at 14,825 (8 am), signals a 70-point gap up opening for Nifty futures, which on Friday closed at 14,756 on the NSE.

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Analysts are bullish but remain cautious. As settlement for March contracts are around the corner, the market will remain volatile, they added. Another worrying factor is the consistent increase in Covid-19 cases in recent weeks, they said.

“We expect volatility to remain high next week due to the scheduled derivatives expiry of March month contracts. In absence of any major event, Covid-19-related updates and performance of the global markets will remain in focus,” said Ajit Mishra, VP Research, Religare Broking.

While broader markets are expected to move in a range, stock-specific activities will be higher due to F&O expiry, they added.

Naveen Kulkarni, Chief Investment Officer, Axis Securities, said: “The Indian equity market’s correction has been led by multiple factors which include the rise in US treasury yields, spike in corona cases and overall expensiveness of the Indian market.”

While the criticality of these factors cannot be ignored, the underlying recovery in corporate earnings and operating performance have been very strong.

“Also, the absolute level of yields once they settle is not alarming which means global allocation to emerging markets and India will continue. So, we believe that the market will see challenges for some time, say till the end of March, but next month onwards, the uptrend will resume,” he added.

Binod Modi, Head - Strategy at Reliance Securities, said: “Given likely pick-up in capital expenditure in FY22E, the impact of new reforms announced in the Budget to stimulate consumption activities and allocation for higher capital expenditure in select large State budgets for FY22E should continue to support ongoing rebound in corporate earnings. Hence, we believe that any meaningful correction in the market should only be creating an opportunity for bargain trading in quality stocks.”

Stocks to watch

Adani

Green Energy: Adani Green Energy has signed a share purchase agreement for acquiring 100 per cent stake in an SPV holding 50 MW operating solar project of the Toronto-headquartered SkyPower Global. The project located in Telangana was commissioned in October 2017 and has a long-term Power Purchase Agreement (PPA) with the Southern Power Distribution Company of Telangana.

Bharti Airtel has entered into an agreement for acquisition of 7.48 per cent equity shares in Sandhya Hydro Power Project Balargha, a special purpose vehicle formed for the purpose of owning and operating the captive power plant, for ₹1.74 crore.

Bharat Dynamics Limited (BDL) has signed a contract worth ₹1,188 crore, including GST, with the Ministry of Defence to manufacture and supply MILAN 2T anti-tank guided missiles. The current order book position of the company, including the current order received, is over ₹9,000 crore, the company said.

JSW Future Energy (earlier known as JSW Solar), a wholly-owned subsidiary of JSW Energy, has received Letters of Award for a total wind capacity of 450 MW from Solar Energy Corporation of India (SECI) against tariff-based competitive bid invited by SECI for setting up of 1,200 MW ISTS-connected wind power projects.

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