Markets momentum to continue on global buoyancy

KS Badri Narayanan Chennai | Updated on June 22, 2021

Nifty to see a 100-point gap-up opening

Domestic markets are expected to open on a strong note on Tuesday, amidst positive global cues. On Monday, despite a global rout, Indian markets recovered sharply from the day's low on the back of short-covering in select counters and on bottom fishing.

According to experts, the trend is likely to continue, though the market may see some profit-booking at higher levels. Besides, settlement of June contracts on Thursday in F&O will add volatility, they added.

The SGX Nifty at 15,860 indicates a gap-up opening of over a 100 points for Nifty futures. While Nifty June futures closed at 15,743.80, the July series closed in the premium at 15,791.80, against the spot close of 15,746.50.

According to analysts, as the system is flooded with liquidity, markets are rising sharply despite stiff valuations.

The Dow Jones Industrial Average jumped 590 points, or 1.76 per cent overnight, while the S&P 500 gained 58 points or 1.4 per cent, and the tech-focussed Nasdaq edged up 111 points or 0.8 per cent.

Asian markets too on Tuesday opened with smart gains. Stocks from Japan to Taiwan, and from Australia to Korea, gained between 0.5 per cent to a little over 3 per cent.

Deepak Jasani, Head of Retail Research, HDFC Securities, said Nifty showed another spectacular recovery from the opening lows after a similar show on Friday. “Lack of large volumes on such days reflect that only fringe players are getting panicky and action otherwise keeps rotating among stocks – both large-caps and mid-caps. While rising however, indices may be slow in the absence of positive triggers.”

However, most analysts believe in the India growth story.

“India is much better prepared for the third wave, if it happens, with the vaccination drive gathering pace and increases in medical supplies. We also believe that the underlying structural trends remain quite positive for India. GST collections have been more than ₹1-lakh crore for eight months now. The monsoon is also expected to be at normal or above normal levels. Therefore, we believe that every dip in the indices should be considered as an investment opportunity.”

Stocks to watch

Bharti Airtel and Tata Group announce a strategic partnership for implementing 5G networks solutions in India.

IIFL Home Finance has filed a draft shelf prospectus with the BSE and the National Stock Exchange of India for a public issue of secured redeemable non-convertible debentures and/or unsecured subordinated redeemable NCDs for an amount aggregating up to ₹5,000 crore.

PG Electroplast Limited, a leading consumer durables manufacturing company and electronics manufacturing services provider, has approved an incoming investment of ₹76.6 crore in the Extra-Ordinary General Meeting (EGM) of the company. The members approved the issue of equity shares and Compulsorily Convertible Debentures (CCDs) to Baring Private Equity India AIF, the Taparia-family backed Ananta Capital, members of the Patni Family Office and some individual investors.

The Board of Dish TV India has considered the recommendations of the fund-raising committee, and thereby, subject to receipt of such corporate, regulatory and other approval(s) / consent(s), as may be required under applicable rules, regulations and laws, approved the fund-raising of up to ₹1,000 crore through a rights issue of equity shares.

Results corner

AMD Industries, Ashapura Minechem, Aster DM, Avanti Feeds, Baid Leasing, Bharat Electronics, BL Kashyap and Sons, Bloom Dekor, Bombay Oxygen Investments, Color Chips, Donear, Eurotex Ind, Gandhi Special Tubes, Gayatri Sugars, GE Power, ITI, Indo Tech Transformers, Indrayani Biotech, JHS Svendgaard, Jindal Worldwide, Kilitch Drugs, Max India, Machino Plastics, NMDC, Omax Autos, Peninsula Land, PNB Gilts, Prozone Intu Properties, PVP Ventures, Raunaq EPC, Religare Enterprises, S Chand, Shamrock and Sobha are among the companies that will declare their quarterly results on Tuesday.

Published on June 22, 2021

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