Indian markets are expected to open sharply lower on Monday, as fresh lockdowns have been announced by various governments following spread of the Covid-19 pandemic. The SGX Nifty, which currently rules at 14,463 at the Singapore Stock Exchange, indicates at least a 180 points gap-down opening for Nifty futures, which on Friday closed at 14,645.
Analysts fear the recovery in the Indian economy could falter on fresh lockdowns announced by various State governments. States such as Maharashtra, Gujarat, Tamil Nadu and Delhi have announced fresh lockdowns and night curfews recently.
“We expect volatility to remain high as the market is expected to continue its focus on updates of state-wise restrictions and the spread of the virus,” said Vinod Nair, Head of Research at Geojit Financial Services.
Most Asia-Pacific markets remained positive, albeit marginally, between 0.1 and 0.4 per cent.
Though the Covid-19 situation is worrisome currently, normal monsoon prediction by Sykmet and IMD augur well and will support the market at lower levels, said analysts.
Both IMD and Skymet predicting a normal southwest monsoon in 2021 augur well for the Indian economy which continues to be impacted by the Covid-19 pandemic and increased inflationary pressures, said Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research.
Broader market keeps giving conflicting signals with alternate healthy and unhealthy advance-decline ratio. Global cues will keep restricting the downside for Indian markets while stock specific moves will keep happening in a period when the results season has just begun, said Deepak Jasani, Head of Retail Research, HDFC Securities.
Stocks to watch
The stock of Macrotech Developers will be listed on the bourses on Monday. The ₹2,500-crore initial public offer of realty major Macrotech Developers, formerly Lodha Developers, was subscribed 1.36 times. Retail investors remained muted for the IPO. The portion meant for qualified institutional buyers (QIBs) was subscribed 3.05 times, non-institutional investors 1.44 times and retail individual investors (RIIs) 40 per cent. The price range for the offer, which hit the capital market on Wednesday, was fixed at ₹483-486 a share.
GE Power has executed a share purchase agreement with GE Power Systems Gmbh for acquisition of legal and beneficial ownership of 50 per cent OF NTPC GE Power Services Pvt Ltd for ₹7.2 crore.
Glenmark Life Sciences Limited, a wholly-owned subsidiary of Glenmark Pharmaceuticals Ltd, has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offer, comprising a fresh issue of up to ₹1,1,60 crore and an offer-for-sale of up to 73,05,245 shares of ₹2 each by Glenmark Pharmaceuticals Ltd.
INOX Leisure: Crisil Ratings has downgraded its ratings on the bank facilities of INOX Leisure Limited to ‘CRISIL A+/Negative/CRISIL A1’ from ‘CRISIL AA-/Negative/CRISIL A1+’. The total bank loan facilities rated was ₹319.68 crore. The rating action reflects CRISIL Ratings’ expectation of weakening of ILL’s business risk profile over the medium term, Crisil said.
The board of SP Capital Financing Ltd has approved selling of 1.25 lakh shares of ₹10 each of Pride And Expert Properties Private Limited in their buyback of shares. The company has received ₹5.93 crore from the stake sale.
Prestige Estates Projects has acquired 45 per cent stake in Century Megacity and 55 per cent stake in Century Landmark. Century Megacity and Century Landmark are a partnership firm, holding land parcels in North Bangalore, which will be developed as office space in the near future.
IIFL Securities: The sponsorship and investment management of Category II Alternative Investment Funds (AIF) was acquired by IIFL Securities Ltd and its wholly-owned subsidiary IIFL Management Services Ltd from IIFL Wealth Management Ltd’s subsidiaries namely IIFL Wealth Prime Ltd and IIFL Wealth Portfolio Managers Ltd respectively, for a consideration of ₹35.46 lakh. The consideration will be paid by IIFL Securities to Wealth Portfolio Managers. The total AUM under these funds is currently ₹163 crore.
Indiamart Intermesh Limited has indirectly, through its wholly-owned subsidiary, Tradezeal Online Private Limited, agreed to acquire 22 per cent of the share capital of Truckhall Private Limited. The company, through its wholly-owned subsidiary, intends to invest ₹9.68 crore in Truckhall. The investment is in line with the Indiamart Group’s long-term objective of offering various Software as a Service (SaaS)-based solutions for businesses.
KEC International has signed project/novation agreements with Warora-Kurnool Transmission Ltd, a subsidiary of Adani Transmission, for ₹480 crore to complete the balance work of the transmission lines in Andhra Pradesh, Maharashtra and Telengana and release of earlier dues of this project.
Wonderla has informed the exchanges that amusement parks in Bangalore, Kochi and Hyderabad will open only on Friday, Saturday and Sunday every week and will remain closed from Monday-Thursday from April 19.
Results Calendar: ACC, Bajaj Consumer Care, Crisil, ICICI Prudential Life and Agio Paper Industries will announce their quarterly results on Monday.