Profit-taking may keep market under leash

After a stellar rally in the last few days, Indian markets may see profit-taking. Global cues too indicate a negative opening for the Nifty.

The SGX Nifty is currently ruling at 15,076 (8 am IST) on the Singapore Stock Exchange, against the Nifty futures Tuesday’s closing value of 15,144.85.

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In the US markets, Dow Jones Industrial Average, Nasdaq and S&P 500 slipped overnight by about 0.6-0.8 per cent while Asia-Pacific markets — Japan, Taiwan and Australia — too rule in the red. The Japanese and Australian markets are down by about 1.5 per cent, while the Korean market ekes out marginal gains.

Though rising number of Covid-19 cases pose a big challenge, analysts are confident that Corporate India will rebound in the second half of the current fiscal, as it is better prepared.

Indian equities are likely to outperform their emerging market (EM) peers in 2021, says the latest report by Morgan Stanley, and bets on domestic cyclical stocks followed by rate sensitives. “The research and broking house, however, has kept its December 2021 target for the S&P BSE Sensex unchanged at 55,000 levels (base case; 50 per cent probability) for now – an upside of around 10 per cent from the current levels.”

Joseph Thomas, Head Of Research, Emkay Wealth Management, said: “The fall in the total number of Covid cases across the country below the 3-lakh mark, and the likely enhanced availability of vaccines in the coming weeks, helped repair the sentiment to a certain extent. There is a perceptible preference for quality mid-cap and small-caps too which is reflected in the gains in these segments lately.”

Stocks to watch

Axis Bank: The government will sell nearly 2 per cent stake in Axis Bank Ltd held through the Specified Undertaking of the Unit Trust of India (SUUTI) for about ₹4,000 crore. The Centre will sell its 1.21 per cent stake or 3.6 crore shares in Axis Bank with the floor price being set at ₹680 a share through an offer-for-sale. The OFS also has a greenshoe option to additionally sell its 0.74 per cent or 2.2 crore shares of Axis Bank. The offer would open up for non-retail investors on May 19 and for retail investors on May 20.

Infosys, a global leader in next generation digital services and consulting, and Majesco, a global leader of cloud insurance software solutions for insurance business transformation, have jointly announced a strategic collaboration. Through this collaboration, Infosys and Majesco will work together to help joint customers accelerate their digital transformation journey, enabling them to unlock new opportunities, address the demand for personalised customer experiences, operational effectiveness, and digital adoption across the insurance business value chain.

Aarti Industries: The board of Aarti Industries has approved the raising of funds by way of issue of equity shares or any other instruments or securities worth ₹1,500 crore. The fund-raising options include fully/partly convertible debentures or a composite issue of non-convertible debentures and warrants entitling the warrant holder(s) to apply for equity shares or any other eligible securities through qualified institutional placement, private placement/public issue of equity/debt securities, preferential issue or through any other permissible mode and/or combination thereof as may be considered appropriate.

Power Finance Corporation: Khavda-Bhuj Transmission Ltd and Kishtwar Transmission Ltd — special purpose vehicle (SPVs) companies — have been incorporated as wholly-owned subsidiaries of PFC Consulting Limited (a wholly-owned subsidiary of Power Finance Corporation Limited). Khavda-Bhuj Transmission is set up as an SPV for development of the Transmission Scheme associated with the evacuation of 3 GW RE injection at Khavda P.S. under Phase-I. Kishtwar Transmission Limited is set up as an SPV for development of Transmission Scheme associated with the transmission system for evacuation of power from Pakaldul HEP in Chenab Valley HEPs - Connectivity System.

Chalet Hotels: The board of Chalet Hotels has approved the discontinuation of operations at its Sahar Mumbai Retail Mall and repurposing of the same as a commercial office space and consequently termination of the management agreement with Inorbit Malls (India) Private Limited from May 18. The company is actively engaging to let out the space as commercial office space.

Results Calendar

Angel Fibers, Clariant Chemicals, Endurance Technologies, Gravita India, Heritage Foods, Indian Oil Corporation, Indiabulls Housing Finance, Indo Rama Synthetics, Ineos Styrolution India, JK Tyre & Industries, Kaya, Mangal Credit and Fincorp, Man Infraconstruction, MAS Financial Services, Morarjee Textiles, Niyogin Fintech, Prism Johnson, Rane Engine Valve, Redex Protech, RS Software India, SML Isuzu, Shriram Asset Management, Tanla Platforms, TCI Express, TD Power Systems, and Zuari Agro Chemicals will declare their quarterly results on May 19 (Wednesday).