Markets to open weak but may see buying at lower levels

Domestic markets are likely to open moderately down on Tuesday due to concern over rising cases of delta variants of coronavirus across globe.

After Monday's fury, Indian markets are likely to remain stable at lower level, said analysts.

The SGX Nifty at (8 am) 15,724 indicates a flat-to-negative opening for Indian markets. The Nifty futures on Friday closed at 15,752.40. Though the US indices fell sharply on Monday, futures on them turned positive in early Tuesday. However, Asian markets remained in negative with Taiwan being the biggest loser by 0.8 per cent. But markets such as Japan, Korea, Hong Kong, China and Australia are down slightly between 0.1 per cent and 0.4 per cent.

The Dow Jones Industrial Average on Monday closed with a sharp fall of 725 points or 2 per cent, S&P 500 and Nasdaq lost about 1.6 per cent and 1 per cent respectively.

According to analysts, Indian markets will move in a narrow range until foreign portfolio investors emerge in a big way. Of late, FPIs remained net sellers. With Q1-FY22 results so far being mixed, analysts said, focus will be more on non-performers, as the market is in a punishing mood. Progress of monsoon is another important factor for market direction.

Globally, markets remained weak as investors turned pessimist over rising Delta variant of Covid-19 cases, fear of possible lockdown and impact of rising inflation on economic recovery, said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

The Q1 result season has been a mixed bag so far and has led to sector/stocks specific action which is likely to continue, he said and adding that also it may provide investors with some insights into the scale of economic recovery through the management commentaries.

"Market has been consolidating near its life highs for last couple of weeks. While the declines are being bought into, follow up is missing at higher levels suggesting some fatigue creeping in. Overall, equity markets have shown strong resilience even though it faces headwinds from the advent of a possible third Covid wave and persistent inflation readings prompting a potential rate increase," Khemka said.

Stocks to watch

Capital India , a finance conglomerate has added another business to its portfolio through a strategic investment of USD 25 Million in mixed equity & debt in Credenc, an education lending fin-tech platform. This is in line with Capital India's vision to enable digital financial products and services to Indian customers. With this investment Credenc is looking to build a book of ₹3,000 crore by 2025. Credenc is a Delhi based fintech founded by Avinash Kumar and Mayank Batheja in 2017 and is a technology led education loans platform, working as the digital finance desk of 1000+ colleges across 17 cities in India.

Manorama Industries , a global pioneer in the manufacturing of specialty fats and butter, has announced the migration of its equity shares from the BSE SME platform to the BSE Mainboard. The company listed on the BSE SME platform over two years back and has met all the criteria needed for the shift. The stocks will be admitted to dealings in the category 'B Group' on the BSE Mainboard platform from July 20, BSE said in a statement. Shares of Manorama Industries closed at ₹1,739.85, as compared to the previous close of ₹1,840.

Zen Technologies Limited has been awarded a ₹120-crore export contract. The simulators are the main focus of the order. The order will be carried out in roughly a year. In the face of stiff worldwide competition from multinational corporations, Zen Technologies emerged as the lead runner. Owing to a confidentiality agreement, the customer's identity cannot be published due to the nature of the deal, it said.

Ircon Vadodara Kim Expressway Limited has repaid the total outstanding loan of ₹589.50 crore to Ircon International Ltd. The company had earlier announced about corporate guarantee furnished to Bank of Baroda for loan to Ircon Vadodara Kim Expressway Limited (IrconVKEL) (a wholly owned subsidiary of IRCON).

Tata Steel Mining and Jindal Stainless have signed a MoU to jointly unearth the Chrome Ore locked up in the boundary between their mines located in Sukinda of Jajpur district, Odisha. This would help conservation of chromite ore which otherwise would have been left unmined forever. This unique partnership sets an example for Sustainable Chrome Ore Mining in an innovative manner. This is a win-win-win partnership for Odisha, TSML and JSL. Both the companies would now initiate steps to get necessary statutory approvals from concerned authorities before jointly starting mining operations.

Yash Management & Satellite Ltd has made further investment of 24,39,024 Equity Shares of ₹10 (fully paid up) payable at par through Right issue in its subsidiary (Sudarshan Polyfab Pvt Ltd.). After this subscription total holding in its subsidiary is 55,97,760 Equity shares, which is 56 per cent of the total subscribed and paid-up share capital of Sudarshan Polyfab Private Ltd.

Krypton Industries Ltd has received tender order of 6,000 wheelchairs amounting to ₹3.29 crore from Artificial Limbs Manufacturing corporation of India.

Results Calendar : Asian Paints, Arihant Superstructures, Bajaj Finance, CRISIL, DCM Shriram, Grandeur Products, ICICI Prudential Life Insurance Company, ICICI Securities, India Tourism Development Corporation, JSW Ispat Special Products, Jubilant Ingrevia, Kohinoor Foods, Mangalam Organics, Moschip Technologies, Mold-Tek Technologies, National Standard, Network18 Media & Investments, Newgen Software Technologies, Reliance Industrial Infrastructure, Rane (Madras), Sanathnagar Enterprises, Shyam Metalics and Energy, SVP Global Ventures, Syngene International, Thirumalai Chemicals and TV18 Broadcast will announce their quarterly results on Tuesday (July 20).

IPO Screener: Tatva Chintan Pharma Chem: The initial public offering will close for subscription today. So far, the IPO has been subscribed by 15 times. While the portion reserved for retail investors was subscribed 23.73 times, non-institutional investors quota received bids for 12.21 times. The qualified institutional buyers have subscribed their portion 1.97 times till now.

The company had raised ₹150 crore from anchor investors ahead of the issue.

The IPO consists of fresh issues worth ₹225 crore and an offer for sale of ₹275 crore by the promoter group. Tatva IPO price band has been fixed at ₹1,073-1,083 a share.

COMMENT NOW