Markets are likely to open strongly lower on Monday, as cues emanating from the Asian and SGX Nifty indicate bearishness. The SGX Nifty is currently ruling at 14,653 (8 am) as against the Nifty Futures’ Friday close of 14,889, signalling an at least 236-point gap down open for Nifty. Though the US markets closed strong last week, Asian majors such as Japan and Australia are ruling weak, albeit marginally.

According to analysts, increasing number of Covid-19 cases and State governments’ handling of the issue are major worries. Already, some governments are talking of full lockdown, though the possibility of that happening at this point in time looks low, said marketmen. The uncertainty is keeping everyone under pressure, they added.

“Participants are worried about the rising number of Covid-19 cases and increased restrictions in key states like Maharashtra and Delhi,” Ajit Mishra, VP Research, Religare Broking, said.

Besides, a truncated week (market is closed on April 14 due to Ambedkar Jayanthi) will keep the market momentum under leash with stock-specific action, said analysts.

“The market is expected to have a stock-centric rally in the coming days, which has a very broad positive view. IT and Banking stocks will be in focus ahead of upcoming Q4 earnings. Banking stocks will remain on the radar as the market awaits the impact of a Supreme Court judgment on banks’ asset quality and income recognition.”

Mishra further added that the continued weakness in banking stocks, due to increased fear of a spike in NPAs, is limiting the upside despite the strong performance from other sectoral packs. So, the alignment between the benchmark and banking index is critical, else the consolidation will continue. “Amid all this, we reiterate our cautious view,” he added.

Stocks to watch

Results Calendar: Tata Consultancy Services, California Software, Cupid Trades & Finance, Lloyds Metals and Energy and HDIL (for September, December and March quarter results too) will announce their quarterly earnings on April 12.

Infosys: The board of directors of Infosys, on April 14, along with Q4 results, will consider a buyback proposal.

Pharma companies: Amid rising coronavirus cases across the country, the Central government has decided to stop export of Remdesivir antiviral injection to meet domestic needs. Companies such as Dr Reddy’s Labs, Cipla, Biocon, Sun Pharma and Zydus Cadila will be in focus.

Solara Active Pharma Sciences: The board of directors of the company approved the amalgamation of Aurore Life Sciences, Empyrean Lifesciences and Hydra Active Pharma Sciences with itself.

Angel Broking: The latest shareholding of Angel Broking reveals that Goldman Sachs holds 1.59 per cent stake in it. Thanks to GS, FPI holding in the stock has increased to 5.01 per cent at March-end, against 4.74 per cent in the December quarter.

NIIT: The buyback offer opens today. The company’s board had approved an up to ₹237-crore (around 98 lakh shares) buyback proposal at ₹240 a equity share. The closing date for the buyback offer has been set for April 28.

Lloyds Steel Industries: An open offer is being made by Shree Global Tradefin Limited to the existing shareholders of Lloyds Steel Industries Limited to acquire 23.36 crore shares of ₹1 each representing 26 per cent of the equity share capital/voting capital of the target company. The offer will open on April 12 and close on April 28.

Castrol India and Ki Mobility Solutions have entered into an exclusive supply arrangement in India wherein Castrol will supply lubricant products to Ki Mobility’s multi-brand workshops.

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