Four day rally may take a pause on weak global cues
Indian markets are expected to open bearish on Thursday, amidst concern over Covid impact and weak global cues. The SGX Nifty, which currently rules at 14,783 (8 am IST) on the Singapore Stock Exchange, indicates at least 200 points gap-down opening for Nifty futures, which on Monday closed at 14,984.65
The US markets, after opening on a firm note on Monday failed to sustain the gains and closed in the red. The Dow Jones Industrial Average slipped marginally, while S&P 500 and Nasdaq crashed over 1 per cent and 2 per cent respectively. Tracking the US markets, the Japan’s Nikkei is down 2.5 per cent in early trade on Tuesday. Other markets such as Korea, Australia, Taiwan and China are down between 0.8 per cent and 1.5 per cent.
Catching up with world stocks, markets rally for fourth day
Resurgence of the second COVID wave has dented sentiments and weakened FY22E earnings visibility. Management commentaries from the on-going 4QFY21 earnings season clearly indicate that demand would moderate, especially post the second half of April. Thus earnings downgrades are increasing vis-à-vis upgrades, said domestic brokerage Motilal Oswal in a note.
According to Binod Modi, Head Strategy at Reliance Securities, “Notwithstanding some adverse impact on economic activities for in 1Q-FY22, a sharp pickup in capital expenditures in current fiscal is still on the cards. Hence, earnings recovery in FY22E still remains promising. Therefore, any near-term possible correction in the market should be treated as opportunity of bargain trading. Investors must focus on quality stocks with robust earnings visibility and margins of safety.”
Day Trading Guide for May 11, 2021
STOCKS TO WATCH
InterGlobe Aviation: The board of Directors of InterGlobe Aviation has approved the raising of funds for an aggregate amount not exceeding ₹3,000 crore through an issue of equity shares by way of a Qualified Institutions Placement subject to approval of the company’s shareholders and receipt of applicable regulatory approvals.
The board of Punjab National Bank has approved opening of Qualified Institutional Placement issue and fixed the floor price at ₹35.51 a share. Earlier, SS Mallikarjuna Rao, Managing Director & CEO, PNB had said that the bank will look for an opportune time to raise ₹ 3,212 crore.
Sangam Renewables, which will change its name as Waaree Renewables Technologies Limited, has approved the divestment of the 31,880,100 equity shares of ₹10 each held in Waacox Energy Private Limited, a material subsidiary company to Aditya Birla Renewables Limited at price not less than ₹13.05 a equity share amounting to total consideration not less than ₹41.60 crore.
Nxtdigital has entered into an agreement with SITI Networks for sharing of its infrastructure facility through Headend-in-the-Sky (HITS) platform.
Modison Metals: As a part of future modernisation and expansion plans, Modison Metals Limited has bought land, valued at ₹5.40 crore, near company’s factory premises at Vapi, Gujarat.
Results Calendar:Alembic, Andhra Paper, BASF India, Bliss GVS Pharma, Dishman Carbogen Amcis, Firstsource Solutions, Godrej Consumer Products, Granules India, Huhtamaki India, Kalpataru Power Transmission, KEC International, Linde India, Magadh Sugar & Energy, Mahindra EPC Irrigation, Matrimony.com, Neuland Laboratories, Orient Abrasives, Pervasive Commodities, Remedium Lifecare, Savani Financials, Shreyans Industries, Siemens, Solid Containers, Stovec Industries, Tainwala Chemicals & Plastics, Transcorp International, Ultracab (India) and Wardwizard Innovations & Mobility will announce their quarterly earnings on Tuesday.