SGX Nifty indicates an 80-point gain for Nifty at open

KS Badri Narayanan Chennai | Updated on February 24, 2021

Foreign fund flows, Covid-19 cases and rising bond yields will anchor the market movement

The domestic market is expected to open with a gap up of at least 80 points, as SGX Nifty is currently ruling at 14,842 against Nifty March futures’ close of 14,762.85. However, with only one day left for expiry of F&O monthly contracts, analysts expect the market to remain volatile. While cues from Asia-Pacific markets remain mixed, US markets closed in the green overnight after opening sharply lower.

"We note that concerns pertaining to increase in bond yields and higher commodity prices dented investors’ sentiments in the last couple of days. However, underlying strength of economy and market remains intact in our view and hence, any meaningful correction in the market should be used to buy," said Binod Modi, Head - Strategy at Reliance Securities.

Besides, foreign fund flows, Covid-19 cases and rising bond yields will anchor the market movement.

Going ahead, the market may continue with consolidation for some time in the absence of any trigger or event in the near term, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd. Valuations continue to be high, which does not provide much comfort given rising bond yields, inflation and surge in Covid-19 cases. Investors should adopt ‘buy on dips’ strategy while traders should follow stock-specific action, he added.

While the Hong Kong benchmark is ruling flat, markets in Japan, Australia and Taiwan are weak. Korea stocks, however, gained about 0.6 per cent.

Stocks to watch


Consumer Products/GAIL India: Shares of Tata Consumer may gain after the National Stock Exchange said that the Tata group firm will replace GAIL India in the Nifty50 Index from March 31, 2021. According to an estimate by ICICI Securities, the rejig will entail inflow of ₹760 crore for Tata Consumer stock and an outflow of ₹510 crore for GAIL India stock.

Hatsun Agro Products Ltd has announced that the newly-commissioned milk and milk products plant at Solapur, Maharashtra, with a milk handling capacity of 6 LLPD has begun commercial production.

Rama Phosphates has commenced commercial production of sulphuric acid and its derivatives from the new manufacturing facility (Unit-2) at its existing factory premises at Indore. With this capacity addition of 55,000 tonnes per annum (tpa) from Unit-2, the company’s overall annual production capacity of sulphuric acid would be 1,55,000 tpa from the Indore manufacturing facility. This will help the company meet the market needs of Maharashtra (including Mumbai) and Goa.

Coal India: The board is to meet on March 5 to consider the second interim dividend.

Sanofi India has approved a final dividend of ₹125 per share and a special dividend of ₹240 per share.

NTPC has executed a share purchase agreement with GAIL, to buy GAIL's 25.51 per cent shareholding in Ratnagiri Gas and to exit from Konkan LNG by selling its 14.82 per cent stake.

Mazagon Dock signed an MoU with Mumbai Port Trust in Maritime India Summit 2021.

Heranba Industries: The ₹625-crore initial public offering of Heranba Industries was subscribed 0.84 times on Day 1 of the issue. The issue will remain open till February 25. The agrochemical company, on Monday, raised ₹187.5 crore from anchor investors.

The issue comprises a fresh issue of ₹60 crore and an offer-for-sale (OFS) of ₹565.2 crore by the promoters. The price band for the issue has been fixed at ₹626-627 per share.

The company has allotted 29.90 lakh shares to anchor investors at ₹627 a share, the higher end of the price band. Marquee anchor investors in the issue include Government Pension Fund Global, Jupiter India, Cohesion MK Best Ideas Sub-Trust, Dovetail India Fund, Societe Generale and Morgan Stanley.

Published on February 24, 2021

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