Nifty to open below 15,000 amidst weak global cues

KS Badri Narayanan Chennai | Updated on March 05, 2021

Most Asia-Pacific markets slumped in excess of 1% in early trade on Friday while US stocks declined overnight

The Indian markets are likely to open sharply lower on Friday, due to weak global cues and on profit booking. Cues from SGX Nifty suggest that Nifty is most likely to open below 15,000-mark. The SGX Nifty is hovering around 14,880, a decline of about 220 points, against the Nifty futures that on Thursday closed at 15,106.

Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said: “We witnessed a sharp decline (on Thursday) in our market mainly due to the sudden jump in the long-term bond yields of the US. The steady growth in the economy leads to a steady rise in the bond yields and therefore, the market should start offering discounts in the medium to long term.”

Also read: Oil extends gains on OPEC+ supply restraint

Most Asia-Pacific markets slumped in excess of 1 per cent in early trade on Friday while US stocks declined overnight with Nasdaq being the biggest loser by 2.11 per cent. The Dow Jones Industrial Average tumbled 1.11 per cent and the S&P 500 1.34 per cent.

Among the Asian markets, Japan's Nikkei fell 2 per cent while Hong Kong's Hang Seng, Korea's Kospi and China's Shanghai Composite declined between 1 and 1.5 per cent.

According to Nagaraj Shetti, Technical Research Analyst, HDFC Securities, the short-term uptrend status remains intact and the display of positive market breadth of Thursday signals that the market is not willing to give up easily. “We expect market to sustain the support of 15,000-14,900 levels, before showing upside bounce again. Immediate resistance is placed at 15,200 levels,” he added.

Stocks to watch

Wipro Limited has signed an agreement to acquire Capco, a global management and technology consultancy providing digital, consulting and technology services to financial institutions in the Americas, Europe and the Asia Pacific for $1.45 billion in an all-cash deal.

Heranba Industries: Shares of agrochemicals firm Heranba Industries will be listed at the bourses today. The ₹625-crore public issue was subscribed 83.3 times. The IPO had opened between February 23 and 25 in a price band of ₹626 to ₹627 a share.

Torrent Power Ltd said that the Bombay High Court has suspended the tender process for privatisation of the power distribution company in the Union territory of Dadra and Nagar Haveli and Daman and Diu. The company had said on February 22 that it had emerged as the highest bidder for 51 per cent stake in the power distribution company.

Isgec Heavy Engineering Ltd has received yet another order for Waste Heat Recovery Boilers from the cement industry and this time the capacity of the boilers will make them the largest in the world. The order has been received from Shree Cement Ltd, one of the largest cement manufacturing companies in India. These boilers are to be set up at their Raipur unit and will be of two types, a PH boiler to be installed at the pre-heater exhaust, and an AQC boiler to be installed at the cooler exhaust from the 10,500 TPD kiln.

Max Healthcare: The QIP issue committee of the company has approved the opening of the QIP issue on March 4. The committee has approved the floor price of ₹190.40 a share and may offer a discount of not more than 5 per cent during allotment. The QIP committee will meet again on March 9 to consider and approve the issue price of the equity shares.

AI Champdany: Due to acute shortage of raw jute and low productivity, AI Champdany Industries said that it is compelled to declare temporary suspension of work at its Wellington Jute Mill-Rishra unit with effect from February 27 till further notice.

Laurus Labs Ltd has said that Dr Satyanarayana Chava, Founder Promoter, CEO & ED, sold 52 lakh equity shares of the company at an average price of ₹368.59 a share, and Nagarani Chava, one of the promoters, sold 18 lakh shares at an average price of ₹366.91 a share. A significant part of the above amount would be used to release the pledge on their equity shares of the company, they said.

NBCC has executed an MoU with Rashtriya Ispat Nigam Limited (RINL) for redevelopment and monetisation of 22.19 acres of land parcels at Maddilapalem, Visakhapatnam on February 26 on self-sustainable model. NBCC will be paid Project Management Consultancy (PMC) fee at the rate of 7 per cent of the estimated/approved project cost or actual project cost (whichever is lower).

NBCC will also be paid Project Marketing fee of 1 per cent of the actual sale proceeds on account of expenditure towards appointment of real estate consultant, publicity, marketing, sale, etc of commercial and residential spaces. The value of the project will be ascertained after preparation & finalisation of the Detailed Project Report (DPR).

Hind Rectifiers Limited has secured order worth ₹72.02 crore (including an order woth ₹38.67 crore from Chittaranjan Locomotive works) in February. The company has further secured order worth ₹39.25 crore in March 2021, it said in a notice to the stock exchanges. The company is having all-time high pending orders in hand worth ₹371.91 crore as on March 3, 2021, it further added.

Reliance Power Limited and JERA Co. Inc, through their joint venture project company, are developing a new gas-fired power generation project in Bangladesh. The project company has achieved financial closure with a group of lenders that includes Japan Bank for International Cooperation and Asian Development Bank and all requisite conditions for availing drawdown under the loan agreements have been satisfied. Reliance Power's wholly-owned subsidiary Samalkot Power has received the approval from the Export Import Bank of the United States to sell one module of equipment to Samsung C&T Corporation of South Korea, which is the EPC contractor for the project, for ₹1,540 crore.

Honeywell Automation India Limited has announced Dr. Ganesh Natarajan's appointment as Independent Director (Non-Executive) and Chairman of its Board of Directors, effective March 8. As Chairman of the Board of Directors, Dr. Natarajan will offer guidance to HAIL's management team on the company's overall strategy, business, and financial matters. He will provide direction and Board support for strong corporate governance.

Jay Shree & Tea Industries: The company has entered into a definitive agreement for sale of its estates at Valparai in Tamil Nadu. The amount of revenue contributed by this estate during the last financial year was ₹25.39 crore. The company has received a consideration of ₹11 crore already and the balance ₹35 crore plus value of current assets/liabilities will be received later.

Unichem Laboratories Limited has received ANDA approval for its Guanfacine Tablets, USP 1 mg and 2 mg from the United States Food and Drug Administration (USFDA) to market a generic version of TENEX (Guanfacine) Tablets 1 mg and 2 mg of Promius Pharma LLC. Guanfacine Tablets are indicated in the management of hypertension. The product will be commercialised from Unichem's Ghaziabad Plant.

Shilpa Medicare on Thursday entered the women intimate hygiene product segment with the launch of a cleansing spray. The company, which manufactures active pharmaceutical ingredients and formulations, said the cleansing spray would be available under the brand name "SwatchShil" in 100ml packs.

IPO corner

MTAR Technologies Limited: Today is the last day for the IPO. The ₹596.40-crore initial public offering was subscribed 10.27 times so far on Day 2. The IPO is a fresh issuance of up to 21,48,149 equity shares of ₹10 face value, aggregating up to ₹124 crore and an offer-for-sale of up to 82.24 lakh equity shares aggregating up to ₹473 crore. The price band of the issue is ₹574-575.

Published on March 05, 2021

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