Nifty may open down, but strength seen at lower levels

KS Badri Narayanan Chennai | Updated on April 23, 2021

Privi Speciality, Glnnd Pharma, Tata Motors scrips likely to see action today

Rising Covid cases are likely keep Indian markets in a bear grip on Friday even as global markets present mixed cues. The US markets slumped almost one per cent overnight on fears of imposition of new capital gains tax by Joe Biden administration.

SGX Nifty at 14,331 indicates a gap-down opening of 70 points for Nifty futures, which closed at 14,403 on Thursday. The SGX Nifty futures recovered from the day's low of 14,260, signalling some value buying happening at lower levels.

Most Asian markets, which opened on weak note, too, recovered to rule in positive territory. The Japanese Nikkei tumbled by about 0.7 per cent, even as markets in Korea, Australia, Taiwan and China managed to eke out marginal gains.

According to analysts, with the Centre taking the Covid issue very seriously and the Prime Minister directly involving himself, things are likely to look better on the pandemic front in near future. Stock-specific action will remain due to results, they added.

"There are hopes that the increase in restrictions might help slow down the alarming Covid numbers in a few weeks, which we believe has become the most important trigger for the markets to move meaningfully on the positive side," said Mohit Nigam, head, PMS & Advisory, Hem Securities. "In the absence of a fresh positive development, we might not experience a bullish momentum for the time being and volatility will persist," he added.

According to Angel Broking, markets are ruling at a crucial level. "The kind of recovery we had seen on Thursday was slightly unexpected, especially after having a weak start below 14200. But since markets are still holding their key supports on a closing basis, we need to respect it. Next two days’ price movement would be quite interesting because it would probably decide the next course of action in the near term."

The market has been going through a correction phase following increasing Covid cases, in spite of the optimism due to vaccination drives. Though earnings outcome is expected to have stock-specific movements in the coming days, broader movement in the market will depend on a fall in number of cases, said Vinod Nair, Head of Research at Geojit Financial Services.

Privi Speciality Chemicals: Mahesh Babani, the founder and current Chairman & Managing Director (CMD) of Privi Speciality Chemicals Limited has entered into an agreement with Fairfax India Holdings Corporation to buy its 48.75 per cent shareholding in PSCL. With this transaction, Babani will consolidate his holding in PSCL to 63 per cent, and the overall promoter shareholding to 74 per cent. The transaction is subject to customary closing conditions and approvals and is expected to close in the first quarter of Financial Year 21-22, The overall transaction is valued at Rs 1,220 crore.

Gland Pharma Limited, a generic injectable focused pharmaceutical company, has received approval from the United States Food and Drug Administration (US FDA) for generic Foscarnet Sodium Injection, 6000 mg/250 mL (24 mg/mL) Single-Dose Bag for Infusion. Generic Foscarnet Sodium Injection is the bioequivalent and therapeutically equivalent to the Reference Listed Drug (RLD), Foscavir Injection, 24 mg/mL, of Clinigen Healthcare Limited. With this approval, Gland Pharma secured the first generic offering status in Single-Dose Bag for Infusion.

Tata Motors Limited's wholly-owned subsidiary - Jaguar Land Rover UK, like other automotive manufacturers, is currently experiencing some Covid-19 supply chain disruption, including the global availability of semi-conductors, which has had an impact on its production schedules and ability to meet global demand for some of its vehicles. As a result, JLR has adjusted production schedules for certain vehicles, which means that the Castle Bromwich and Halewood manufacturing plants will operate a limited period of nonproduction from Monday, April 26, 2021. Manufacturing continues at the Solihull plant. JLR is working closely with affected suppliers to resolve the issues and minimise the impact on customer orders wherever possible.

Pidilite Industries' shareholding in its subsidiary Cipy Poly Urethanes Pvt. Ltd. (CIPY), has increased from 70 per cent to 100 per cent. The consideration of Rs 60.49 crores (excluding certain contingent payment) has been paid in cash. This transaction does not constitute a material transaction for the company and it is not a related party transaction, the company said in a notice to the stock exchanges.

The operations at PG Electroplast Ltd's manufacturing units situated at Supa MIDC, Dist. Ahmednagar, Maharashtra and Greater Noida, Uttar Pradesh, are getting affected due to evolving Covid-19 situations. The uncertainties have increased for the month of May, 2021 as customer orders have started getting impacted. However, all operations are in full compliance of the regulatory norms.

Results Calendar: HCL Technologies, Aditya BIrla Money, Bombay Wire, Control Print, GNA Axles, Indiabulls Real Estate, M&M Financial, Oriental Hotels, Shiva Cement, Smruthi Organics, Steel Exchange and Wendt will declare their quarterly and full-year results ended March 2021.

Published on April 23, 2021

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