Domestic markets are expected to open on a negative note on Friday, amidst a sell-off across global markets. In morning deals, Asia Pacific markets fell between 1 per cent and 3 per cent, with Japan’s Nikkei plunging over 3 per cent.

The SGX Nifty at 15,607 indicates a gap-down opening of about a 100 points for Nifty futures, which on Friday closed at (June futures) 15,696.70 and (July) futures at 15,750.05.

According to analysts, due to lack of positive triggers, investors will resort to heavy profit-booking. Besides, the impending settlement of derivative contracts on the NSE this week will add to volatility, they cautioned.

The Dow Jones Industrial Average slumped 533.37 points, or 1.58 per cent on Friday, while the S&P 500 crashed 55.41 points or 1.31 per cent at 4,166.45 and the tech-focussed slipped 0.92 per cent or 130.97 points at 14,030.0.

Following suit, the Asian markets opened with a big gap-down. The Nikkei slumped 1,000 points or 3 per cent while the Australian market crashed by 2 per cent; Korea, Taiwan and Hong Kong markets edged down by about 1 per cent.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: “Globally, investors would cautiously track what action does other central banks take following Fed’s hawkish announcement. Domestically, RBI’s step forward, monsoon, opening up of the economy in a phased manner and the pace of vaccination, going forward, would decide the further direction of the market. Traders should be cautious and adopt stock-specific approach as markets get volatile.”

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said technically, post the strong rally, the Nifty/Sensex have formed Hammer candlestick pattern, which clearly indicates indecisiveness between bulls and bears. However, the medium-term texture of the benchmark indices is still bullish and is likely to continue so in the short run.

Stocks to watch

Securities and Exchange Board of India has asked PNB Housing Finance to put on hold its proposed ₹4,000-crore deal with Carlyle group. The market regulator feels the transaction is “ultra-vires” of the company’s Articles of Association (AoA). It has now directed PNB Housing Finance to carry out a valuation process by an independent registered valuer and then proceed with the allotment of preferential shares.

Alkem Laboratories: US FDA had conducted an inspection of the company’s manufacturing facility located at St. Louis, US, from June 14 to 18. At the end of the inspection, the company has received Form 483 with two (2) observations. The company will submit to US FDA within the stipulated timeline, a detailed response to close out all the observations associated with this inspection.

Aditya Birla Fashion and Retail Limited had earlier acquired 51 per cent stake in Finesse, a company doing business with respect to the brand ‘Shantanu & Nikhil’, thereby making it a subsidiary of the company. By virtue of further investment in the rights issue of Finesse, the company has acquired additional stake of 7.69 per cent. Accordingly, the company now holds 58.69 per cent stake in Finesse.

Capacit’e Infraprojects: The promoter and promoter group of Capacit’e Infraprojects Limited, have sold equity shares of the company amounting to ₹70.56 crore. Rahul Ramnath Katyal sold 10 lakh shares, Ashutosh Trade Links 11 lakh shares and Rohit Ramnath Katyal offloaded 13. 04 lakh shares. The share sale has been executed for meeting social obligations and to pare debt at the personal level. Pursuant to this share sale, the company does not foresee any further share sale in the near future. The buyer, Think India Opp Master Fund (Think Investment, USA), is a marquee US-based long-term investor.

HDFC/HDFC Bank: The Board of Directors of Housing Development Finance Corporation Ltd has approved sale of 3.56 crore equity shares, representing 4.99 per cent of the outstanding issued and paid-up share capital of HDFC ERGO, to HDFC Bank Limited (a related party) for ₹1,906.43 crore, i.e. ₹536 per equity share.

BL Kashyap and Sons has secured new orders from domestic unrelated client aggregating to ₹135 crore approx. The order is for construction of civil, structure and rough finishing work of AIPL Joy Gallery Project at Sector-66, Gurgaon. The total order inflow during the FY2021-22 stands at ₹135 crore, it further said.

RattanIndia Enterprises Limited (REL) has acquired 1,02,000 equity shares of RattanIndia Investment Manager Private Limited, representing 100 per cent of its paid-up capital, therefore making it a wholly-owned subsidiary of REL.

Results corner

About 50 companies including Aban Offshore, Ajcon Global, Ashirwad Steels, Atishay, Auro Lab, Bharat Dynamics, Blue Circle, Deccan Polypacks, Delta Industries, GDL Leasing, GPT Infraprojects, Gokul Refoils, GUjarat Hy Spin, Info Edge, Jaiprakash Associates, HB Leasing, HBL Power Systems, Hindusthan National Glass, Kamdheunu, Lex, Malu Paper, MM Forgings, OIL India, Pokarna, Rana Sugars, Rico Auto Industries, Sumeet Industries, Talbros Engineering, TCNS Clothing and VST Tillers Tractors will declare their results on Monday.

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