Moderate gains seen at open, but crude, FPI flow to anchor direction

KS Badri Narayanan Chennai | Updated on March 08, 2021

Asian markets in early trade on Monday are up 0.5-1.5%; US markets on Friday closed up 1.55-2%; analysts fear the market may see volatility

The Indian stock markets, after falling a couple of days, are expected to open on a positive note on Monday, thanks to global markets. The SGX Nifty, ruling at 15,080, points to a 130-point gain for Nifty futures, which on Friday closed at 14,953 on the NSE.

Asian markets in early trade on Monday are up in the range of between 0.5 and 1.5 per cent. Australian indices are ruling with the biggest gains on Monday, while China, Japan and Taiwan too are firm. The US markets on Friday too closed up 1.55-2 per cent.

Analysts, however, fear that the market may see volatility on the back of rising crude oil prices, and of late, slowing down of foreign fund flows.

Brent crude crossed the $70-mark to rule at $71.10 per barrel. A dollar increase in prices on a permanent basis would increase India’s import bill by roughly $1.4 billion per annum, said CARE Ratings in a report.

Experts are also focussing on the ensuing US Fed meet that will influence foreign portfolio investors’ investment decisions. FPIs have pulled out over ₹5,100 crore so far in March.

“The market will be mainly focusing on the expectations on whether the Fed, in its upcoming meeting, will maintain its accommodative stance in a rising bond yield market. Additionally, Fed’s measures to maintain low interest rate and high liquidity will provide relief to market sentiments,” said Vinod Nair, Head of Research at Geojit Financial Services.

Stocks to watch

BEML: Reports of at least six companies, including Tata Motors, Mahindra and Mahindra and Ashok Leyland looking to buy a 26 per cent stake in BEML will keep the PSU Defence major in focus.. Bharat Forge and Megha Engineering and Infrastructure may also submit expressions of interest for the government’s stake in BEML, the reports added.

The board Adani Ports and SEZ Limited has approved the allotment of up to one crore shares to Windy Lakeside Investment Ltd (an affiliate of Warburg Pincus), not belonging to the promoter or promoter group of the company, on preferential basis at ₹800 a share.

India Grid Trust, India’s first power infrastructure investment trust (InvIT), has signed a share purchase agreement to acquire NER-II Transmission Limited, from Sterlite Power as part of the framework agreement. The indicative value of the acquisition is ₹4,625 crore (subject to closing adjustments) and would boost IndiGrid's AUM by 34 per cent to over ~₹20,000 crore. Post completion, the platform's asset portfolio would consist of 13 power transmission projects, with a total network of 38 power transmission lines and 11 substations extending over 7,570 circuit kilometers and 13,350 MVA in 17 Indian states and one Union Territory.

Aarti Drugs: Aarti Speciality Chemicals Limited (ASCL), a wholly-owned subsidiary of Aarti Drugs, stands out to be one of the beneficiaries of the Government of India's recently approved Production Linked Incentive (PLI) from the Department of Pharmaceuticals under the Ministry of Chemicals and Fertilizers. Aarti Speciality has received approval to set up 2-Methyl-5Nitro-Imidazole (2-MNI) with a committed production capacity of 4,000 MT per annum under Target Segment III (Key Chemical Synthesis Based KSMs/Drug Intermediates). The rate of incentive will be 10 per cent of sales value per annum for six years - FY23 to FY28.

Sun Pharmaceutical Industries has announced that one of its wholly-owned subsidiaries has agreed to acquire by way of allotment to it, 428,571 ordinary shares (12.5 per cent fully diluted equity stake) of WRS Bioproducts Pty Ltd, Australia, a company that is developing novel technologies to produce and commercialise supplements and nutraceutical ingredients from diverse algae species in Australia.

Just Dial Limited has signed an advertising agreement with broadcaster Star India Private Limited ‘Star’ for advertising as ‘Co-Presenting Sponsor’ in Indian Premier League - 14 (IPL 2021), to be held in April-May 2021.

Dai-ichi Karkaria, which had entered into a deed of conveyance with Gera Developments Private Limited, received the balance consideration towards the sale of the Kasarwadi Land Parcel situated in Mumbai-Pune Road. The total consideration of the deal was ₹153.50 crore.

Cipla (UK), a wholly-owned arm of Cipla (EU) & a wholly-owned step-down arm of Cipla, has been voluntarily liquidated w.e.f March 5, as part of an internal reorganisation but will not affect the revenue of the company.

AKI India: The board of the company has approved the expansion plant of its factory premise, i.e. construction of effluent treatment plant for uninterrupted working of factory in adherence with the laws made in this regard along with the agenda to be carried on for such expansion like acquiring land adjacent to factory premise by way of purchase.

IPO corner

The ₹510-crore initial public offering of Easy Trip Planners will open on March 8 (today) to March 10. The online travel company has fixed the price band at ₹186-187 a share. The IPO is an offer-for-sale by founder promoters Nishant Pitti and Rikant Pittie. Nishant holds 49.81 per cent stake in the company and Rikant, 49.68 per cent.

Published on March 08, 2021

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