Positive bias seen for Nifty at open

KS Badri Narayanan Chennai | Updated on March 03, 2021

Concerns on rising bond yields have softened after central bankers across the world have pushed back against higher rates

After gaining sharply in the last couple of days, Indian markets are likely to open flat on Wednesday. The SGX Nifty at 15,020 points to a 60-point positive opening for Nifty futures, which on Tuesday closed at 14,958.15.

Global markets too present a firm trend with most of Asia-Pacific ruling in positive territory though overnight the US markets closed in the red.

Concerns pertaining to rising bond yields appear to have softened a bit after central bankers across the world have begun to push back against higher rates. This should offer some comfort to Indian equities and INR as rising bond yields in the US and declining spreads between US Treasury yields and India’s G-Sec yields had started putting pressure on INR.

“Given continued rebound in high-frequency key economic indicators in February 2021, we believe underlying strength of domestic equities remains intact,” said Binod Modi, Head - Strategy at Reliance Securities.

From a technical perspective, the Nifty has now entered the Friday’s gap zone of 14,920-15,065 and hence, it would be crucial to see the index movement from here on. A move above the gap and then the swing high of 15,177 will then negate the recent lower-top, lower-bottom structure on the index. However, since the banking space has not yet shown signs of resumption of the uptrend, we would advise traders to avoid aggressive positions and prefer trading with a stock specific approach from a near-term perspective, said Ruchir Jain of Angel Broking.

Ircon International: The offer-for-sale by the Centre in Ircon International opens on Wednesday for non-retail investors and on Thursday for retail investors. The floor price has been fixed at ₹88 a share. The Government would divest 10 per cent equity of the company through the OFS (base issue) with a green shoe option to sell an additional 6 per cent stake. The Union Government proposes to sell up to 4.70 crore shares of the company (base issue) and 2.82 crore shares (green shoe option). The Centre aims to raise at least ₹413 crore through the stake sale. The stock of Ircon International on Tuesday closed at ₹97.85, up 1.87 per cent, on the BSE.

Stocks to watch

Telecom stocks such as Reliance Industries, Bharti Airtel, and Vodafone Idea will remain in focus due to the latest auction. Reliance Jio has acquired 488.35 MHz of spectrum for ₹57,122.65 crore, Bharti Airtel 355.45 MHz at ₹18,698.75 crore and Vodafone Idea with 11.80 MHz for ₹1,993.40 crore.

Bank of Baroda: The capital-raising committee of the Board of Directors of Bank of Baroda has approved the closure of the QIP issue on March 2 pursuant to the receipt of application forms and the funds in the escrow account from eligible qualified institutional buyers. The committee has approved the issue price as ₹81.70 a share, which is at a discount of 5 per cent, to the floor price of ₹85.98 per equity share determined earlier.

Engineers India: Indian Oil Corporation has awarded the project for execution of consultancy for overall project management and EPCM Services (Phase II) for capacity expansion of Panipat Refinery from 15 MTPA to 25 MTPA (P-25 Project) to Engineers India Limited (EIL). The total order value is around ₹600 crore with a project schedule of 40 months for mechanical completion.

Mahindra Lifespace Developers Ltd has launched its residential project ‘Alcove, at Chandivali, Andheri, Mumbai Metropolitan Region. The project is registered with Maharashtra RERA.

Jaiprakash Power Ventures’ board has approved disinvestment of 74 per cent shareholding in Jaypee Powergrid Limited (a joint venture company of Power Grid Corporation of India Limited and Jaiprakash Power Ventures).

Accel Limited, the BSE-listed (ACCEL | 517494 | INE258C01038), IT and realty company, has acquired the IT services business comprising IT Infrastructure Management Services business of Computer Factory India Private Limited (CFIL) on a going concern basis. Similarly, it also acquired IT Infrastructure Management Services, Warranty Management Services and eWaste Management Services of Ensure Support Services India Limited. In July 2020, Accel Limited had acquired Ensure Support Services Ltd from Redington India in an all-cash deal, thereby making it a wholly-owned subsidiary of Accel Limited. In January 2020, Accel had also acquired Computer Factory India Private Limited in an all-cash deal.

Megasoft: The Board of Directors of Megasoft has approved a ₹29.50-crore rights issue. Eligible shareholders can apply for two rights equity shares for every three shares held in the company at ₹10 a share. The company will announce record date later, to identify eligible shareholders.

IPO Corner

MTAR Technologies Limited: The ₹596.40-crore initial public offering will open for subscription today and close on Friday. 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 OFS of up to 82.24 lakh equity shares aggregating up to ₹473 crore. The price band of the issue is ₹574-575.

Ahead of the issue, the Hyderabad-based company, engaged in the manufacturing and development of mission-critical precision components and critical assemblies catering to clean energy, nuclear and space and defense sectors, has raised ₹178.92 crore from 15 anchor investors by allotting 31.11 lakh shares at ₹575 a share.

Published on March 03, 2021

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