Will Nifty reflect positive global cues?

KS Badri Narayanan Chennai | Updated on April 22, 2021

SGX Nifty points a 100-point gap-down opening

Indian markets continue to be on the edge as rising Covid crisis and its impact on the economy haunt investors, especially foreign institutional investors. While the global markets, both the US and Asian markets, are giving out bullish signals, SGX Nifty at 14,193 (8 am) indicates at least a 100-point gap-down opening for Nifty futures, which on Tuesday closed at 14,296 on the NSE.

Overnight, US stocks closed about one per cent higher. Following suit, Asian stocks such as Japan, China, Korea and Hong Kong are significantly up in the range of 0.4-1.8 per cent. Australian markets, however, are ruling flat with marginal gains.

According to analysts, volatility could be the hallmark of today’s trade amid rising coronavirus cases across the globe, particularly in India. The spike in the virus has renewed concern about fresh lockdowns and how they affect the economic recovery.

According to Ajit Mishra, VP - Research, Religare Broking, the announcement from State governments and rising Covid-19 cases would continue to remain a critical factor for investors to watch out for in the near term. Further, earnings outcomes from Nifty majors would be actively tracked. We maintain our cautious stance in the near term as increasing restrictions would adversely impact economic activities.

"A withdrawal of ₹5,000 crores by FIIs in the month of April might indicates changing sentiments of foreign funds coming into India in the current scenario," said Mohit Nigam, head, PMS & advisory, Hem Securities.

Stocks to Watch

The merger plan of Den Networks, TV18 Broadcast, and Hathway Cable & Datacom into Network18 Media has been called off. Den Networks, Network, Hathway and others in a disclosure to the stock exchanges said they had decided against proceeding with the composite scheme of arrangement in which Den, TV18Broad Cast and Hathway were to merge into Mukesh Ambani-owned Network18 along with their sister concerns. “Considering that more than a year has passed from the time the board considered the scheme, it has decided to not proceed with the arrangement envisaged in the scheme,” these companies said in a statement to the stock exchanges.”

Housing Development Finance Corporation Limited (HDFC) has entered into a strategic co-lending partnership with Indiabulls Housing Finance Limited (Indiabulls HFL) to offer housing loans at competitive rates, subject to the compliance with the applicable law(s), including the applicable guidelines issued by Reserve Bank of India (RBI). The participation by both the entities in extending the credit facilities shall be on a sharing of risk and reward basis on mutually agreed terms. Indiabulls HFL is a RBI regulated housing finance company with pan India branch network and has a track record of customer acquisition.

Result Calendar: A dozen companies including Tata Elxsi, IndusInd Bank, Cyient, Fineotex Chemical, Hindustan Bio Sciences, Sasken Technologies, Amal, IndBank Merchant Banking, Indus Tower, Rallis India and Visaka Industries.

Published on April 22, 2021

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