Downward bias seen at open

KS Badri Narayanan Chennai | Updated on March 31, 2021

The last day of the fiscal has traditionally remained volatile but ended positive, as most institutional investors readjust their portfolios

Indian markets may see range-bound movement with a negative bias at opening on the last day of the current financial year.

SGX Nifty at 14,879 against Nifty April futures of 14,913 signals a downward bias for Wednesday, as most Asian markets are down close to 1 per cent. Japan, China and Malaysia were down about 0.80 per cent, while others such as the Philippines and Taiwan were down marginally. Even the US markets closed marginally weak overnight. However, Australian markets are up 1.66 per cent.

Also read: How equity markets have fared this year

Generally, the last day of the fiscal has traditionally remained volatile but ended positive, as most institutional investors readjust their portfolios.

According to analysts, the rise in Covid-19 cases is the major worrying factor. Fund flows from foreign portfolio investors will be impacted due to rising US treasury yield and the meltdown of hedge fund Archegos Capital Management. Global investors are also closely watching Joe Biden's spending plan.

Ajit Mishra, VP - Research, Religare Broking Ltd, said: “Upcoming data viz. core sector and auto sales along with global cues will remain on the participants’ radar. Needless to say, the recent deterioration of the Covid-19 situation in India has dented sentiment and will be closely watched by the participants in the coming sessions too," and added: “We thus reiterate our cautious stance until we see some decisiveness in the trend.”

Stocks to watch

NSE Index rejig: Tata Consumer Products will enter Nifty 50 index and it will replace the PSU major GAIL India. Similarly, AU Small Finance Bank will replace Bank of Baroda in the Bank Nifty, while Muthoot Finance will replace Bajaj Holdings & Investment.

IDFC First Bank: The board of IDFC First Bank has authorised the opening of the issue on Tuesday, for which it has fixed the floor price as ₹60.34 a share. The bank plans to mop up ₹3,000 crore through the QIP. The bank may, at its discretion, offer a discount of not more than 5 per cent on the floor price for the issue.

Mahindra Lifespace: JLL India, the country's largest real estate consultancy and professional services firm, announced the closure of an exclusive transaction of 10.3 acres of land parcel in the micro market of Kalyan in Mumbai. Mahindra Lifespaces executed the agreement to acquire this land from Ecohomes Townships LLP. JLL was the exclusive transaction partner for the said land deal for both parties. The deal was closed using a hybrid model of both online and offline technologies during and after the lockdown.

IRB Infrastructure Developers Ltd has received Letter of Award from NHAI for six-laning of the National Corridor NH-19 from Palsit to Dankuni in West Bengal under Bharatmala Pariyojana to be executed on BOT (toll) basis. The project cost is ₹2,421 crore. The concession period is 17 years from the Appointed Date (including construction period of 910 days). The company will get tolling rights on the project from the Appointed Date. The premium payable as a percentage of revenue is 10.8 per cent commencing after one year of actual completion date and increasing annually by 1 per cent thereafter.

NHPC: The Competent Authority has accorded Government approval for investment of ₹938.29 crore for acquisition of Jalpower Corporation Limited (JPCL) and construction of balance works of 120 MW Rangit-IV HE Project, located on river Rangit in West Sikkim district of Sikkim, by NHPC Limited. The cost includes ₹165 crore to be paid by NHPC for acquisition of JPCL through Corporate Insolvency Resolution Process (CIRP).

VA Tech Wabag has completed the financial closure for its Hybrid Annuity Model project received from Bihar Urban Infrastructure Development Corporation. The project comprises a design, build and operate scope worth ₹940 crore and HAM scope worth around ₹247 crore.

The board of Insecticides (India) has approved the buyback of fully paid-up equity shares of face value ₹10 each of the company from its shareholders excluding promoters, and promoter group from the open market for an aggregate amount not exceeding ₹60 crore at a price not exceeding ₹575 a share.

KNR Constructions has received a letter of acceptance for six-laning of Ramanattukara Junction on Hybrid Annuity Mode under the Bharatmala Pariyojana in Kerala.

Kama Holdings: The Board of Directors of Kama Holdings has approved ₹108 a share on the paid-up equity share capital of the company as interim dividend. The dividends would be paid to shareholders as on April 9, 2021, the record date.

Kohinoor Foods: The board of Kohinoor Foods has approved the strategic disinvestment in subsidiary Indo European Foods Limited, UK. “All documents pursuant thereto with Herba Foods SLU, Spain, and the disinvestment process would be concluded in next 30 days,” the company said in a notice to the stock exchanges.

BNK Capital: Lebnitze Real Estates Private Limited has entered into a share purchase agreement with the promoters of BNK Capital Markets to acquire 59.69 lakh fully paid-up equity shares constituting 59.69 per cent of the total equity and voting share capital of the company. Pursuant to the acquisition, the acquirer has made an open offer for acquisition of up to 26 lakh shares representing 26 per cent of the voting share capital of BNK Capital Markets from public shareholders at ₹200 a share.

Published on March 31, 2021

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