Sensex, Nifty to open positive on robust economic data

Bullish momentum is likely to continue for Indian markets for the eighth successive day on Tuesday due to a robust set of economic data. The SGX Nifty at 15,636 (8 am IST), indicates strong opening for Nifty, which is already ruling in unchartered territory.

The Nifty futures on Monday closed at 15,583.20 on the NSE.

The GDP growth for overall FY21 and Q4FY21 stood at -7.3 per cent and 1.6 per cent. In April 2021, the eight core sectors registered a double-digit output growth of 56.1 per cent compared with 11.4 per cent growth in March 2021.

Nish Bhatt, Founder & CEO, Millwood Kane International - an Investment consulting firm, said: The economic growth rate for January-March quarter as well as full year FY21 is a pleasant surprise. "We have seen positive economic growth for two consecutive quarters. Statistically, the growth rate for FY21 is negative but it is way better than most estimates. The government initiatives provided support to agriculture and manufacturing segment, but the hotel and tourism sector continued to witness contraction due to strict lockdown."

Eyes on FPIs

However, the negative global cues could check the market progress in the latter part of the day. Benchmarks across Japan, Australia and Hong Kong were ruling in red while Korean and Taiwan markets are up marginally.

According to analysts, after pulling out for two successive months, foreign portfolio investors will be the leading force in June due to better-than-expected GDP and core data numbers.

16,000 possible for Nifty

Technically, Indian markets are in a strong position, said, market experts.

Undoubtedly the trend has been robust for the last few days, and hence, the Nifty reached yet another milestone of 15,600 before anyone could realise it. Since we are in uncharted territory, there is no historical level to consider as a next resistance. Still, considering few Fibonacci ratios into consideration, there is no major level visible before the magical figure of 16000, said Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking.

Stocks to Watch:

Automobile companies will declare their sales figures for May from today. Analysts fear that sales would to have taken a strong hit in May, due to the second wave of Covid-led lockdowns in many states. Most experts believe automobile companies to report a double-digit decline across segments such as two-wheeler and commercial vehicles (CV).

Asian Granito India/Astron Paper : With a view to focus on core business of ceramic and other tiles and products related to construction industry, the company's Board has approved disinvestment from Aston Paper & Board Mill Limited, an Associate Company listed on BSE/NSE in which the Company is holding 87,75,000 equity shares (18.87 per cent) in capacity as one of the promoters of Astron Paper and Board Mill Limited. The proceeds from sale of the said shares will be utilised to meet long term working debt reduction. Besides, the board has also approved to explore opportunities in Frit manufacturing along with tiles production in Dholka plant.

IRB InvIT : Udaipur BOT Project implemented by Udaipur Tollway Limited,which is now part of IRB Infrastructure Trust - Private InvIT, has been issued a Completion Certificate by the Competent Authority. Consequently, toll rates for the SPV would be increased by about 55 per cent and the SPV will collect toll at revised toll rates on this project.

Magma Fincorp Limited has announced a series of leadership changes following the Poonawala-controlled Rising Sun Holdings acquiring controlling stake through an equity infusion of Rs 3,456 crore in May. The Board has appointed Adar Poonawalla as the Chairman of the company and Abhay Bhutada as the Managing Director. Vijay Deshwal, a seasoned banker with a track record of over two decades, will take charge as CEO at Magma Fincorp from the first week of July. He will also be the Group CEO of Poonawalla Group's financial services business.

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