Global cues and SGX Nifty point to a sharp gap down opening for Indian markets. The SGX Nifty is ruling at 14,885, as against the Nifty March futures closing price of 15,169.50, signalling an over 250 points decline at the start.

Global stocks across the Asia-Pacific region have slumped in excess of 2 per cent, with Japan, Korea, Australia, Taiwan and Hong Kong declining between 1.8 and 3 per cent. Overnight, the US stocks witnessed a sharp slide on rising US yields. The tech-heavy Nasdaq slumped 3.52 per cent, the biggest single-day fall since October. The Dow Jones and S&P 500 fell 1.75 per cent and 2.5 per cent respectively.

While the recent rise in bond yields globally and concerns of a rise in commodity prices weighed on investor sentiment in the last couple of days, Powell’s testimony this week offered comfort to global equities. Undoubtedly, the budget succeeded to offer clarity about the sustainability of ongoing corporate earnings rebound in subsequent fiscals, said Binod Modi of Reliance Securities.

However, some analysts advise caution on Indian stocks given their high valuation.

Given high valuations and volatility in the market, traders should trade cautiously with stock specific action and book profits in regular intervals, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

FIIs turning net sellers in recent days and surge in commodity prices could pose a near term challenge to the market. However, any meaningful correction in the market should be an opportunity to buy as India continues to offer superior growth prospects, added Modi.

Positive rollovers

Rollovers are in line, as per the provisional rollover data, but positive rolls suggests that bulls are holding command and the bullish stance for the market could continue, said Chandan Taparia, Derivative & Technical Analyst, Motilal Oswal Financial Services Ltd.

Stocks to watch

The shares of RailTel Corporation of India will be listed on the bourses on Friday. The issue price has been fixed at Rs 94 a share. The initial public offering of RailTel Corporation of India was subscribed 42.42 times. Of the ₹819.24-crore offer, the qualified institutional buyers’ portion was subscribed by 65.29 times and non-institutional investors by 73.25 times, while retail individual investors’portion was subscribed 16.78 times. The public issue was for 8.71 crore shares at a price band of ₹93-94 a share.

Bank of Baroda: The Board of Directors of Bank of Baroda has approved and adopted the preliminary placement document in connection with the Rs 4,500-crore qualified institutions placement of equity shares of face value Rs 2 each. The 'Relevant Date' for the purpose of the issue is February 25 and the floor price has been fixed as Rs 85.98 a share. The bank may offer a discount of not more than 5 per cent on the floor price so calculated for the issue.

Mahindra Lifespace Developers, the real estate and infrastructure development arm of the Mahindra Group, has acquired 7.89 acres of land to develop a residential project in Kanakpura Road, Bengaluru. The project will offer approximately 5 lakh sq. ft. of carpet area. The launch of the project is planned for FY 2022.

Zensar Technologies: The board of the company has consented and authorised its wholly-owned subsidiary, Zensar Technologies Inc. (a material subsidiary), to divest 100 per cent of its equity shareholding, held by it in Aquila Technology Corp, subject to approval of the relevant statutory authorities.

The board of Responsive Industries Ltd has approved investment in its Indian subsidiary company Axiom Cordages Ltd, through purchase of its 104,18,162 shares in aggregate from Banyantree Growth Capital, LLC (BTC) and Nederlandse Financierings Maatschappij Voor Ontwikkelingslanden N.V (FMO) held by them in Axiom Cordages Ltd, India. The pre shareholding of the company is 58.18 per cent of the total paid-up capital and the post shareholding after purchase is 89.86 per cent.

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