Stocks

Nifty, Sensex to open on flat note ahead of Q1 results

KS Badri Narayanan Chennai | Updated on July 06, 2021

Stock-specific action is likely to continue

Despite positive global markets, domestic equities are expected open on a flat note on Tuesday. According to analysts, market will see stock-specific action ahead of the crucial Q1-FY22 result season, as there is no major triggers to drive the market.

The SGX Nifty 15,833 indicates a flat-to-negative opening for Nifty futures, which on Monday closed at 15,858.10. While the US stocks ended in positive territory on Monday, most Asian markets in the morning deals are ruling in positive territory."

According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, Q1-FY22 earnings season which would kickstart this week with TCS results on July 8 would provide the direction to the market and lot of stock specific action could be seen. "Since restrictions this time around was localized and less stringent v/s the lockdown in CY20, we expect the impact in Q1FY22 to be contained. We expect earnings momentum to accelerate in FY22 as the pace of vaccinations picks up and the economy opens up further," he added.

The Nifty opened up with a gap of 55 points and finally closed with gains of 112 points on Monday, said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities. "Market breadth was strong, but market volume was low. On the first day of the week, the range-bound market rallied to the level of 15845/52920, which is an upper boundary for the market. However, till the market is not crossing 15920/53100 levels, the strong buyers would not enter the market," he added.

Stocks to Watch

NMDC: The Centre will sell 7.49 per cent of the company's equity through an offer for sale route on Tuesday. While the base issue is 11.72 crore shares or 4 per cent of the total equity, the OFS has a green shoe option to sell another 10.22 crore shares or 3.49 per cent of the total equity. The floor price of ₹ 165 a share, a discount of about 6 per cent to Monday's closing price. The OFS, which opens for non-retail investors today, will open for retail investors on Wednesday.

Religare Enterprises has received shareholders approval for its ₹570-crore preferential issue of fresh equity shares at a price of ₹105.25 a share to existing shareholders such as Burman family & Ares SSG Capital and selected new marquee investors.

NTPC has informed the exchanges that its wholly subsidiary NTPC Vidyut Vyapar Nigam has invited bids for e-buses in Delhi and Leh.

Alembic has said its bulk drugs business continues to remain under pressure. “Despite persistent efforts by the management to improve efficiency and reduce overheads, the business incurred losses during the year. The company continues to work towards right sizing its operations. The bulk drugs business will remain under pressure due to competitive business scenarios as well as the ever-increasing capital-intensive asset modernisation and refurbishment of manufacturing facilities requirements. The business faces an uncertain future, despite our sincere efforts,".

Vakrangee: Partnered with EDUSAKSHAM an EdTech startup by IIT Alumni, to offer online tuition/live classes, e-Learning courses, practice and assessment-based modules to the customers under highly emerging sector of online education domain.

IOL Chemicals & Pharmaceuticals: CARE Ratings has upgraded the credit rating by one notch for the banking facilities availed by the company to A+/Stable, from A/Stable.

Panama Petrochem: CARE Ratings Limited has upgraded Panama Petrochem Limited's credit rating, on the basis of recent developments including operational and financial performance of the Company. It has revised/upgraded the rating, on long term bank facilities from CARE A-; Stable to CARE A; Stable; and revised/upgraded the rating, on short term bank facilities from CARE A2+, to CARE A1

Aviation stocks such as Indigo and SpiceJet will remain in focus, as the Civil Aviation Ministry has allowed domestic airlines to operate at 65 per cent of their original pre-Covid-19-level capacity. The Centre on July 5 increased the seating capacity from the current 50 per cent to 65 per cent stating that the cap on domestic aviation capacity at 65 per cent will be operational until July 31 or till further orders.

Dynemic Products has started commercial production for food colors plant at its manufacturing unit at Dahej, Gujarat. The cost of setting up the said plant with an annual capacity of 2,760 tonne is approximately ₹150 crore, it said in a notice to the stock exchanges.

Valencia Nutrition: The board of Valencia Nutrition has approved sale of its land admeasuring 216 square meters situated at Bangalore Development Authority Layout.

Sharika Enterprises has received an order from LS Cable India for service of 220 KV EHV cable & accessories amounting to over ₹4.22 crore.

Published on July 06, 2021

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