Nifty likely to open gap-down on poll verdict, global cues

KS Badri Narayanan | Updated on May 03, 2021

Analysts focus on Covid-19 policy initiatives

Indian markets are expected to begin the new week negatively, as Bharatiya Janata Party failed to capture the crucial much-hyped West Bengal assembly election. Even global cues from the key Asia-Pacific region and US market is bearish, signalling the market may open lower on Monday. The SGX Nifty, which is currently ruling at 14,471 (8 am), signals at least a 220-point gap-down for Nifty futures, which on Friday closed at 14,690.

Key benchmarks of Japan, China and Taiwan ruling lower in the morning session by around 0.8-1 per cent while Australia, Korea and the Philippines markets are in the positive territory with marginal gains.

Marketmen will closely monitor the precarious Covid-19 pandemic situation and the call for a complete lock-down from several 'eminent' quarters.

However, analysts are not expecting the assembly election to drive the market. "The focus of the markets will be back on the evolution of the Covid-II wave and policy responses, while policymakers’ focus will be squarely on minimising the economic and social cost of the second wave of Covid," said Emaky Global in a note.

However, economists are still optimistic about India, as GST collection for April, despite localised lock-downs, hit an all-time high of ₹1.41 lakh crore.

Stocks to Watch

JSW Steel has paid ₹225 crore towards the acquisition of Welspun Corp's business of manufacturing of high-grade steel plates and coils. The company had entered into a deal with Welspun Corp to acquire the division on a slump sale basis. Under the business transfer agreement, Laptev Finance Pvt.—a JSW Group company—was to acquire Welspun’s plates and coil mill division for a consideration of ₹848.5 crore. The balance consideration, which is subject to closing adjustments towards net working capital, will be paid on a deferred basis, subject to Welspun fulfilling certain regulatory approvals and payment milestones as provided under the Business Transfer Agreement dated March 31, 2019, as amended from time to time.

Auomobile stocks; Major auotmobile companies such as Maruti Suzuki, Tata Motors, Ashok Leyland, Escorts, M&M, Hero Moto Corp, TVS Motor and Baja Auto have reported lower sales for April month on month, due to Covid second wave.

Amara Raja Batteries has received closure orders from The Andhra Pradesh Pollution Control Board for the company plants At Karakambadi, Tirupati, and at Nunegundlapalli Village, Chittoor District, Andhra Pradesh.

Tata Power is planning to come out with an IPO for its renewable energy business that could raise about ₹3,500 crore, says a Bloomberg report, quoting sources.

Dr Reddy’s has received the first consignment of 150,000 doses of Sputnik V Vaccine.

Results Calendar: Apollo Tricoat Tubes, Godrej Properties, IDBI Bank, Kotak Mahidra Bank, L&T Tech, Mahindra Holiday, Nutricircle, PIL Italica Lifestyle, SBI Life, Shree Ganesh Remedies, Supreme Industries, TBZ, Tata Chemical and Varun Beverage are some of the major companies what will declare results today.

IPO Corner

PowerGrid InvIT: Maharana company Power Grid Corporation’s InvIT offering will close for subscription today. So far, the issue has been subscribed by close to 60 per dcent. The public issue of InvIT, first ever from a public sector company, has a price band of ₹ 99-100 per unit. Ahead of the issue, the the received bids from anchor investors for ₹ 3,480 crore. Among the 47 institutional investors included several international and leading domestic funds. The company plans to raise of ₹ 7,735 crore from the issue.

Published on May 03, 2021

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