Nifty, Sensex to bounce back at open

KS Badri Narayanan Chennai | Updated on June 10, 2021

Market awaiting further triggers to move forward

After a sharp correction on Wednesday, the market appears set to open in the green on Thursday amid mixed global cues. Though the US markets corrected overnight, Asian markets and US stock futures turned positive in early morning on Thursday.

According to analysts, the market is awaiting further triggers to move forward, though action will remain high in select small and mid-cap stocks.

Also read: Equity mutual fund touch ₹10,000 crore inflows as Covid fear wanes

The SGX Nifty at 15,718 (8 am IST) indicates a flat-to-positive opening for Nifty futures, which on Wednesday closed at 15,660.25. Most Asian-Pacific markets such as Japan, China, Hong Kong, Australia, Taiwan and South Korea are up by around 0.4 per cent.

Overnight, the Dow Jones, S&P 500 and the tech-focussed Nasdaq slipped between 0.10-0.45 per cent.

Binod Modi, Head - Strategy at Reliance Securities, said, going forward, with the opening up of the economy at the state level, government’s higher allocation towards capital expenditures for FY22 should be helpful in driving economic growth in the coming quarters. Additionally, various industries have also announced higher capex programmes to sustain growth, which should also aid economic recovery.

“While domestic equites continue to look good, investors must focus on quality stocks with robust earnings visibility and margins of safety. In our view, sectors considered to be major beneficiaries of capex revival are likely to be back in focus in the coming weeks,” he added.

According to Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, the Nifty/Sensex fell to 15,565/51,717 in a short span of time. The market breadth, which was extremely positive in the first half of the trading session on Wednesday, turned negative in the second half and the market closed comfortably below the levels of 15,670/52,100. It’s a bearish reversal formation for the market and in the next one or two sessions, the market may fall to 15,500 or 15,450 (51,600/51,300) levels.

Stocks to watch

Reliance Power: The meeting of the Board of Directors of Reliance Power Ltd is scheduled to be held on Sunday, June 13, 2021 to consider and approve raising of long-term resources from domestic and/or global markets, inter alia, by issue of equity shares / equity-linked securities / warrants convertible into equity shares, through preferential issue and/ or qualified institutional placement and/or rights issue or any other method, including determination of issue price, if any, and seeking members’ and other approval(s), as the Board may deem appropriate.

Insecticides India: The Government of India, the Patent Office, has granted the patent for its ‘Synergistic fungicidal composition comprising hexaconazole and carbendazim’ for a term of 20 years from June 15, 2017 (date of filing). The patent also covers the fungicidal composition, Hexaconazole 4 per cent + Carbendazim 16 per cent SC, which the company has been selling pan-India under the trademark ‘Sofia’.

Lasa Supergenerics has added another product - Oxyclozanide to its portfolio of products. Oxyclozanide, an anthelmintic, is used in the treatment and control of fascioliasis, a topical worm infection in ruminants mainly domestic animals such as cattle (especially buffaloes in farms), sheep, and goats. For this, the company is setting up capacity in a brownfield expansion at its Chiplun unit. The total capacity would be 250 MT and the company is committed to funding the required capex through internal accruals. Production would start from August 2021.

Varroc Engineering has signed a Memorandum of Understanding (MoU) with Candera GmbH for a strategic association to integrate the Human Machine Interface (HMI) technology in Varroc’s Thin-Film-Transistor (TFT) Instrument Cluster. According to the MoU, Varroc will develop the hardware and base software of the product, while Candera will provide software solution for HMI. This MoU will enable both the companies to respond to automotive application opportunities in India and the global markets with shorter lead time and cost optimised solutions.

Forbes & Company Ltd has entered into an Agreement for Sale (AFS) with Equinix India, Private Limited for sale of approximately 3.804 acres of land at Chandivali, Mumbai for a consideration of ₹200 crore. The purchaser would also reimburse to the company certain expenses as mentioned in the AFS. The completion of the proposed transaction, which is subject to fulfilment of various conditions precedent as stated in the AFS, is expected to be completed in Q2/Q3 of FY 2021-2022.

Results calendar

Alkali Metals, Ambika Cotton Mills, Anjani Finance, Cabtabill Retail, Cera Sanitaryware, CG VAK Exports, Century Plyboards, Deep Energy Sources, eClerx Services, GE T&D, GKB Opthalmics, GP Petroleums, Harrisons Malayalam, Hind Rectifiers, Hotel Rugby, LGB Bros, Mayur Uniquoters, Mazagon Dock Shipbuilders, National Plastic, National Fertilizers, NHPC, Parle Industries, Poddar Housing, SAIL, Shankara Building, Tarai Foods and Tidewater Oil are among the companies that will declare their quarterly results on Thursday.

Published on June 10, 2021

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