Profit taking may sink Nifty 200 points at open

KS Badri Narayanan Chennai | Updated on March 04, 2021

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

After gaining sharply in the last three days, Indian markets are likely to witness profit booking on Thursday. Clues from SGX Nifty and global markets too indicate a cooling-off of the bull party. SGX Nifty is currently ruling at 15,074, down about 220 points, against Nifty futures, which closed at 15,298.65 on Wednesday.

Most Asian-Pacific markets slumped in excess of 1 per cent in early trade on Thursday while the US stocks declined overnight, with Nasdaq being the biggest loser by 2.70 per cent. The Dow Jones Industrial Average slipped 0.40 per cent and the S&P 500 1.31 per cent.

While technically markets remain on firm footing, foreign fund flows will be the key driver, say analysts. On Wednesday, FPIs bought shares worth ₹2,008 crore. Though fundamentally, the India growth story appears bright, global liquidity will drive the market direction in the short term, experts said.

Of late, even the slightest fall in the market is being bought into and the last three days were no exception, especially after last week where bears took control. “We have seen participation across our clientele, eager to be a part of India’s growth story. The day totally belonged to bulls and the floor was abuzz with a lot of trading opportunities. said Sandeep Gupta, Group Head – Dealing & Advisory, Broking & Distribution, Motilal Oswal Financial Services.

According to Deepak Jasani, Head of Retail Research, HDFC Securities, “In a bullish signal, the Nifty on March 3 filled the down-gap made on February 26, though it took longer for the gap to be filled. Now the all-time high of the Nifty is in sight being barely 186 points away. With momentum on its side, there may not be too many impediments in Nifty achieving this over the next few days.:

Stocks to watch

Ircon International: The offer-for-sale by the Centre in Ircon International has received strong bids on Day 1, which was opened only for institutional investors. According to the Centre, the issue was subscribed by three times. The Government plans to 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 floor price has been fixed at ₹88 a share. The issue is open for retail investors today.

Adani Ports and Special Economic Zones (APSEZ) Ltd., India's largest private Ports & Logistics company and a key subsidiary of the diversified Adani Group, is acquiring the 31.5 per cent stake held by Windy Lakeside Investment Limited (an affiliate of Warburg Pincus) in Gangavaram Port Limited (GPL). The acquisition is valued at ₹1,954 crore and is subject to regulatory approvals. GPL is located in the northern part of Andhra Pradesh next to Vizag Port.

Kalpataru Power Transmission Limited (KPTL), a leading global EPC player in the power and infrastructure contracting sector has secured new orders / notification of award worth ₹1,554 crore. The orders are from India, CIS and Latin America in the power transmission business, and KPTL's international subsidiary has secured new power transmission projects in Europe.

RITES Limited has now secured a General Consultancy order from Haryana Rail Infrastructure Development Corporation Limited for their Haryana Orbital Rail Corridor (HORC), which is a new electrified broad-gauge double line (about 144 km) from Palwal to Sonipat via Sohna, Manesar and Kharkhoda in the state of Haryana with speed potential of 160 kmph. The fee payable to the consortium will be about ₹61 crore.

VST Tillers Tractors has entered into a share purchase agreement for investment in Series A Preferred Stock of Zimeno Inc. The investee company is in the development of Electric Autonomous Tractor. The investment will be $1,500,000 (11.07 crore) in Series A Preferred Stock of the investee company. There will be no nominee on the board of directors of the listed entity and no potential conflict of interest arising out of the agreement. After allotment of Series A Preferred Stock, shareholding in the investee company will be about 2 per cent on fully diluted basis.

Tata Power, India's largest integrated power company, announced that TP Saurya Limited, the wholly-owned subsidiary of Tata Power Company Limited, has signed a Power Purchase Agreement (PPA) with Tata Steel Limited (TSL) to develop a 15 MW solar project at Jamshedpur, Jharkhand. The energy will be supplied to TSL under a PPA valid for a period of 25 years from scheduled commercial operation date. The project is required to be commissioned within six months from the date of execution of the PPA.

Generic Engineering Construction and Projects Limited has been awarded new work orders worth ₹80.80 crore (including GST) for various institutional projects from new reputed clients, which inter alia includes residential project based in Panvel worth ₹44.68 crore (plus GST) from Cityopia Ventures Private Limited and Special Project for Structural Construction of replica of 12 Jyotrilings (Shiv Dham Phase I) at Kangnidar (Mandi), Himachal Pradesh amounting to ₹36.12 crore from Himachal Pradesh Tourism Development Corporation Limited.

RPP Infra Projects has won four new orders worth ₹1,000.01 crore in Tamil Nadu for various government projects.

Power Mech Projects Ltd has received letters of award for the following works worth ₹734 crore.

BCL Industries: The equity shares of BCL Industries Ltd have been approved by National Stock Exchange (NSE) to be listed and admitted to dealings on the NSE w.e.f. March 4, 2021 listed at NSE under Scrip Code BCL Industries.

IPO corner

MTAR Technologies Limited: The ₹596.40-crore initial public offering was subscribed 3.7 times on Day 1 itself. The issue will be open till 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 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 04, 2021

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