Nifty, Sensex to open weak

KS Badri Narayanan Chennai | Updated on June 14, 2021

Lack of positive triggers to keep bulls under check

After a sharp rise last week, Indian markets are likely to witness profit-taking, at least in the early part of the fresh week. While global cues remain mixed, analysts say market lacks positive triggers to push the benchmark indices further.

The SGX Nifty at 15,760 (8 am IST) indicates a gap down opening of about 60 points for Nifty futures, which on Friday closed at 15,817.30. Most Asia-Pacific markets are closed on Monday, while Japan is up marginally. US stock futures indicate narrow movement.

Also read: Five of top-10 valued firms add more than Rs 1 lakh crore in m-cap

Markets are expected to monitor the spread of monsoon in the coming weeks, daily new case count and easing of lockdown restrictions, said Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities. High inflation globally and firm crude oil prices are some concerns areas, he added.

However, FPIs have remained net buyers, month to date, to the tune of about ₹4,769 crore, underpinned by steady decline in Covid-19 cases in India and decent GST collections in April.

“We expect FPI flows to India, in the medium term, to remain strong as India is at the cusp of a growth revival path. Interestingly, low interest rates, better exports outlook and revival in global economy form a good combination for India’s economic revival. Domestic demand revival will also be supported by the upcoming festival season,” Shrikant Chouhan said.

In the coming week, India’s inflation data for May, which is expected to be elevated, will be the key economic driver in the domestic market. On the global front, the Fed’s monetary policy meeting will be in focus as the market awaits its stance on continuing stimulus measures, said Vinod Nair, Head of Research, Geojit Financial Services.

Stocks to watch

RPower/ Reliance Infrastructure: Reliance Power’s board on Sunday approved a preferential issue of 59.5 crore equity shares and 73 crore warrants worth ₹1,325 crore to its promoter firm Reliance Infrastructure at an issue price of ₹10 each by conversion of debt to the listed promoter firm Reliance Infrastructure Ltd, Reliance Power said in a BSE filing.

Inox Leisure has approved the issue price for eligible qualified institutional buyers at ₹310 a share aggregating to approximately ₹300 crore.

Minda Industries: The board approved the purchase of 49 per cent stake of Harita Fehrer from its existing shareholder F.S. Fehrer Automotive GmBH for a total consideration of ₹115 crore. The deal is expected to be completed by November 30. Harita Fehrer Ltd is a joint venture between Harita Seating Systems Limited and F.S. Fehrer Automotive GmbH.

Ruchi Soya: The board of directors and shareholders of Ruchi Soya Industries have approved a follow-on offer to raise ₹4,300 crore.

IPO watch

Shyam Metalics’ ₹909-crore initial public offering opens today. The IPO closes on June 16. The company has fixed the price band for its primary market offering at ₹303-306 per share. Shyam Metalics’ IPO will involve a fresh issue of shares worth up to ₹657 crore and an offer-for-sale (OFS) amounting to ₹450 crore by existing shareholders, including Subham Capital, Subham Buildwell, Kalpataru Housefin & Trading, Dorite Tracon and Narantak Dealcomm.

Shyam Metalics and Energy’s (IPO) has raised ₹269.94 crore from 21 anchor investors at ₹306/share. The company allocated 88,21,764 shares. Investors include Nippon MF, Birla MF, White Oak, Kotak MF, L&T MF, IIFL, Abakkus, and Birla Life Nippon AIF.

Sona BLW Precision Forgings’ (Sona Comstar) ₹5,550-crore initial public offering (IPO) opens today (Monday, June 14) at a price band of ₹285-291 a share. Blackstone-backed Sona BLW’s issue will close on June 16, 2021. The auto component maker’s public issue comprises a fresh issue of equity shares of up to ₹300 crore and an OFS of up to 5,250 crore by selling shareholder Singapore VII Topco III Pte Ltd, an affiliate of the Blackstone Group Inc.

Sona Comstar has raised the third largest ever IPO anchor book in India at ₹2,498 crore, 45 per cent of the total IPO size of ₹5,550 crore. 42 marquee investors participated in the anchor book, including 24 foreign portfolio investors, 11 domestic mutual funds, and five life insurance companies.

Navoday Enterprises Ltd, a marketing and event management company, is set to open its initial public offering on June 14 at a fixed price of ₹20 apiece. The company plans to raise ₹46 crore and the market lot is 6,000 shares. The stock will be listed at the BSE-SME.

Results corner

Aditya Consumer Marketing, Arihant Capital Markets, BF Investment, BFL Asset Finvest, BF Utilities, Coal India, Gayatri Projects, Globus Spirits, Greenply Industries, Hemisphere Properties India, IFB Industries, IDFC, Indian Overseas Bank, JB Chemicals & Pharmaceuticals, Jaiprakash Power Ventures, Kajaria Ceramics, Kellton Tech Solutions, MIRC Electronics, Satin Creditcare Network, Singer India, Swelect Energy Systems and Uttam Sugar Mills will release quarterly earnings on June 14.

Published on June 14, 2021

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