Positive opening seen, but F&O expiry to add volatility

KS Badri Narayanan Chennai | Updated on March 25, 2021

Craftsman, Laxmi Organic listing today

The Indian stock market is expected to open on a positive note, as Asian markets point to a mild recovery. The rising number of Covid-19 cases caught many investors off guard. Besides, expiry of March contracts on the NSE will add to volatility and investors need to remain cautious.

SGX Nifty is currently (8.00 am) ruling at 14,662.50, which is about 25 points higher than Nifty April futures closing of 14,648.50 and over 100 above March futures (14,555).

Overnight, the US markets ended in the red, while most Asian stocks are trading firm with gains in the range of 0.20 per cent to 1.2 per cent.

Analysts caution investors not to buy any stocks just because they have corrected in the last few days. The market is in uncertain territory and it is better to buy the stocks once a clear trend emerges, they said.

According to Deepak Jasani, Head of Retail Research, HDFC Securities, the rising cases of Covid-19 in India and across the globe could delay the economic recovery. This is also evident from the fall in crude prices over the last few days. The overall number of global Covid-19 cases has surpassed 124 million, while deaths have surged to more than 2.73 million, according to the Johns Hopkins University.

“Fall with lower volumes suggest that bottom fishers are staying away while sellers are hopeful of a bounce in the near term,” he said.

Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services, said: “Sensex and Nifty lost 871 and 265 points on Wednesday on the back of weakness in commodity prices. lack of FII flows and tight liquidity conditions due to successive IPOs and QIPs. Defensive sectors like Pharma & IT were relatively stable whereas high beta sectors like metals, banking and mid-cap stocks fell sharply. We expect this trend to continue in the near term but things should improve once Q4 earnings preview starts flowing in.”

Stocks to watch

Shares of Craftsman Automation will be listed on the bourses today. The company had raised ₹824 crore via IPO at the upper price band at ₹1,490. The Craftsman IPO was subscribed 3.81x times overall, with QIBs putting subscribing 5.21 times, NII 2.84 times and retail 3.43 times.

Shares of Laxmi Organic will also make a debut on the bourses today. The IPO of the speciality chemicals manufacturer was subscribed 106.78x times with the QIB portion getting subscribed 175.43 times, NIIs 217.62 times and retail investors 20.04 times. The price band of the issue was ₹129-130.

Emami Ltd has infused ₹50 lakh in Brillare Science Pvt Ltd, its associate company, by subscribing to five lakh compulsorily convertible preference shares, the company said in an exchange filing. This is Emami’s second fund infusion in the company in the current calendar year. In January, it had acquired 10 lakh shares of Brillare Science for ₹1 crore.

Jubilant Foodworks Ltd has entered into an exclusive master franchise and development agreement with PLK APAC Pte Ltd, a subsidiary of Restaurant Brands International Inc, to sub-license the ‘Popeyes’ brand and operate Popeyes restaurants in India, Bangladesh, Nepal, and Bhutan in the coming years. Popeyes was founded in New Orleans in 1972 and distinguishes itself from other restaurants with a unique menu featuring its signature chicken sandwich, spicy chicken, chicken tenders, and fried shrimp, among others.

Voltas has executed a business transfer agreement with its wholly-owned subsidiary Universal MEP Projects & Engineering Services Limited (formerly Rohini Industrial Electricals Limited) for transfer of its domestic projects business relating to mechanical, electrical and plumbing (MEP) / heating, ventilation and air-conditioning (HVAC) and water projects, mining and construction equipment (M&CE) business and textile machinery division (TMD) to UMPESL. The transaction is expected to be consummated by September.

Vakrangee has entered into a partnership agreement with TransUnion CIBIL (TUCIBIL), one of the India’s largest credit information companies regulated by the Reserve Bank of India. The agreement will help the company drive financial inclusion by providing easy access to CIBIL score and report to consumers through Nextgen Vakrangee Kendra network.

Pokarna Engineered Stone, a wholly-owned subsidiary of Pokarna, has started commercial production at its second quartz surface manufacturing facility, with effect from March 24. The plant is located at Mekaguda village in Telangana.

Wabco India (WIL): ZF International UK will sell 17,17,388 equity shares, or 9.05 per cent stake, in Wabco India through an offer-for-sale on March 25-26. The company will also sell additional 9.05 per cent stake (in case of oversubscription) through the OFS. The floor price for the sale is fixed at ₹5,450 per share.

Kirloskar Ferrous Industries has been declared the ‘Preferred Bidder’ in the uction of Bharath Mines & Minerals.

IPO corner

The initial public offering of Barbeque Nation Hospitality has been subscribed 1.33 times on the first day of bidding on Wednesday. The issue will remain open till Friday. Investors have put in bids for 66.46 lakh equity shares against the offer size of 49.99 lakh shares, the subscription data available on exchanges showed. The company raised ₹203 crore from anchor investors on March 23, a day before the issue opening. Barbeque Nation Hospitality is planning to mop up ₹452.87 crore through the public issue including a fresh issue of 180 crore. The net fresh issue proceeds will be used for repaying debts availed by the company. The price band for the offer has been fixed at ₹498-500 a share.

Published on March 25, 2021

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