The beginning of August set to see positive vibrations at the domestic market with a slew of rosy economic news. According to analysts, higher GST collection (₹1.16 lakh crore for July) and sharp surge in automobile sales figures bode well for the market.

FPIs remain sellers

Analysts also expect the return of foreign portfolio investors to India after remaining sellers in July. FPIs sold over ₹13,000 crore worth shares in July and due to which they remained net sellers to the tune of ₹6,105 crore so far in 2021.

The SGX Nifty is currently ruling at 15,893 (8 am) as against Friday’s close of 15,777.25 in the domestic markets

Besides, Asian markets also send positive signal with most markets are ruling strongly in early morning deal on Monday except Chinese markets, which have been impacted by local strict regulatory rules. Japan’s Nikkei and Australia’s All Ordinaries indices are up over 1.3 per cent and Taiwan’s Weighted Average by 0.3 per cent.

However, the US stocks on Friday closed sharply lower.

Eyes on RBI meet

Focus will be on RBI monetary policy committee, which is scheduled to meet on August 4-6. Most analysts expect a status quo stance on interest rate. The RBI is scheduled to announce its bi-monthly monetary policy review on August 6, at the end of the three-day meeting.

Analysts expect the market to move in a narrow range with positive bias till the outcome of the meeting.

Dr Joseph Thomas, Head of Research, Emkay Wealth Management, said there has been incessant selling by overseas investors, but the line- up of IPOs, which were received quite well by the markets, helped the markets sustain the positivity.

The factors that have been at the core of market activity locally as well as globally have been the reason for rise in the pandemic numbers indicating a probable revival in the near future, and the Fed stance on monetary policy turning more foggy with higher inflation numbers and better growth numbers, he said.

He added that the relatively more important factor to reckon with would be the Chinese ban on exports of certain commodities including fertilisers may push up the cost of these products for the rest of the world, and may have consequences for trade and commerce in the near term.

Nagaraj Shetti, Technical Research Analyst, HDFC Securities, said: “Though Nifty failed to sustain the gains Friday, the overall market breadth and broader market indices like mid and small caps have outperformed the benchmark index. Hence, the resilience of market breadth could suggest limited downside risk for the market ahead and chances of a strong buy on dips opportunity during the week.”

STOCKS TO WATCH

Automobile companies registered an increase in their sales for July 2021 on a year-on-year basis, largely on the back of lower sales in July 2020 when the country was significantly hit by the first wave of Covid-19 and several parts were still under lockdown. Maruti Suzuki India sold a total of 1,62,462 units of vehicles in July 2021. During the same period last year, the company sold 1,08,064 vehicles. Similarly, Tata Motors sold 51,981 units last month, compared to 27,711 units during July 2020. Almost all automobile companies such as Hero MotoCorp, Escorts, Eicher Motors have reported healthy sales figures year-on-year. Most other companies will declare their July sales figures this week.

NTPC: The board of NTPC, subject to the approval of the shareholders, approved issue of secured/unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative, non-convertible debentures up to Rs 18,000 crore in one or more tranches/series not exceeding 30 (thirty). The fund raising will be through private placement in domestic market during the period commencing from the date of passing of Special Resolution till completion of one year thereof or the date of next Annual General Meeting in the financial year 2022-23 whichever is earlier.

Federal Bank: IFC, and two investment funds managed by IFC Asset Management Company, IFC Financial Institutions Growth Fund, LP and IFC Emerging Asia Fund, LP have made an equity investment for a 4.99 per cent stake in Federal Bank Limited (FBL). The investment will also support FBL's commitment to environmental, social and governance (ESG) standards, while strengthening its Tier 1 capital adequacy ratio (CAR) and expanding its micro, small and medium sized enterprises (MSME) and climate finance portfolios - key for growth opportunities as the country recovers from the pandemic.

Dalmia Bharat Sugar and Industries: The board has given in-principal approval to set up two grain-based distilleries with a capacity of 100 KL each to produce around 6 Cr litres of ethanol, which is expected to be commissioned in next 15-18 months. Existing installed capacity is around 10 crore litres, which is expected to get increased to 15 crore litres. Now with this, 200 KL grain-based distilleries’ expanded capacity will be around 21 crore litres. The capital expenditure for the abovementioned expansion is estimated to be Rs. 263 Crore which will be financed partly by way of internal accruals and partly through debt.

Amber Enterprises: CRISIL Ratings has upgraded its ratings on the bank facilities of Amber Enterprises India Ltd to 'CRISIL AA-/Stable/CRISIL A1+' from 'CRISIL A+/Positive/CRISIL A1'. The upgrade reflects better than expected business performance in second half of fiscal 2021, esp. operating profitability. The group achieved revenue of ₹2,363 crore in second half of fiscal 2021 at operating margin of 8.6 per cent compared to CRISIL Ratings' expectation of 6.5 per cent. The higher operating profitability was on account of group's ability to pass on the entire price increase in raw material prices to its end customers while also continuing several cost cutting measures within the group.

Raminfo Ltd has received Notification of Award to act as Field Operating Agency for training, coordinating and monitoring gram volunteers/secretarial functionaries in Andhra Pradesh with an order value of Rs 68.63 crore from the 'Department of Gram Volunteers / Ward Volunteers & Village Secretaries/Ward Secretaries', Government of Andhra Pradesh. The contract period is extended for one year from 01.03.2021 to 28.02.2022 in accordance to the terms and condition mentioned in the Notification of Award.

Jump Networks: The board of directors has approved a proposal to raise up to Rs 60 crore through preferential allotment/private placement by issue of up to 5 crore convertible equity warrants with each warrant convertible into one equity share of Rs/ 5 each to non-promoters, subject to the approval of members.

Results Corner

Ajmera Realty & Infra, Asian Star, Avadh Sugar, Balaji Amines, BSEL Infra, Carborundum Universal, Castrol India, CG Power and Industrial Solutions, Continental Chemicals, Emami, Escorts Finance, HB Portfolio, HDFC, IP Rings, JMC Projects, Kalyani Steels, Nahar Spinning Mills, Orient Cement, Punjab National Bank, Pratiksha Chemicals, RBL Bank, Shree Renuka Sugars, Simplex Mills, Suryalakshmi Cotton and Varun Beverages will declare their quarterly results on Monday

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