National benchmarks are likely to move into a range early Friday as global indices are negative. While US markets ended on a mixed note overnight, most early morning Asian markets are weak.
However, the SGX Nifty 15,955 (8am IST) indicates a positive open for the Indian markets, with Nifty futures closing Thursday at 15,937. Although it may open in green, the market will face some catches of price. profits later, experts said.
Easy liquidity, analysts say, will help the market maintain the current trend. According to them, the rally is this time generalized with the participation of mid and small caps. In fact, small cap indices have also hit an all-time high, indicating the flow of funds. However, the low volumes in the exchanges are a worrying factor, they added.
Harsh Agarwal, co-founder of RAIN Technologies – an Algo trading platform, said: “Money flow and liquidity continue to guide markets to new heights. We expect this pattern to continue. The banking index is still around 10% below its previous highs, giving markets the comfort of a possible sector rotation. This should keep the Nifty well taken care of. The RBI and policymakers continue to have sufficient leverage and leverage to trigger an economic recovery. Overall, the markets remain healthy.
The Dow Jones Industrial Average edged up 0.15%, while the S&P 500 and the technology-focused Nasdaq Composite Index slipped 0.33% and 0.7% on Thursday. Markets in the Asia-Pacific region slipped between 0.06% and 1.2%.
So far, the equity market has shown strong resilience, even though it faces headwinds linked to the advent of a possible third wave of Covid, persistent inflation readings leading to potential rate hikes and volatility around the US Fed’s tapering discourse, said Siddhartha Khemka, Head – Retail Research Motilal Oswal Financial Services Ltd.
“It consolidated for a while due to a lack of trigger. The Q1-FY22 results season has started and will continue to provide action-specific actions. It could also give some direction to the market, as investors would look at management’s comments to gauge the extent of the economic recovery, ”he added.
According to S Ranganathan, head of research at LKP Securities, “As global investors digest inflation data and Fed commentary, Dalal Street Bulls are betting on economic recovery as IT stocks continue to propel clues to new heights. Markets did not seem in the mood to force investors to wait for a correction on the sidelines as sector rotation played its part today as capital goods made a smart comeback on market capitalization. The wider market was buzzing with action among the names of cement, real estate and drugstore. “
Shrikant Chouhan, executive vice president of technical equity research at Kotak Securities, said the prolonged upsurge helped Nifty / Sensex break above the upside trading range at 15,915 / 53,129. The move is positive because that could push the market towards 16,100 / 53,600 levels, he added.
Actions to watch
Grasim / Century Textiles and Industries have incorporated a joint venture Birla Advanced Knits Private Ltd to engage in the manufacture of Artificial Cellulosic Fiber (MMCF) knitted fabrics. The two parties will each subscribe 50 percent of the paid-up share capital of the joint company.
Authum Investment & Infrastructure Ltd has emerged as the successful bidder for the acquisition of Reliance Commercial Finance Limited after the completion of the resolution process in terms of Reserve Bank of India. In this context, the Lead Bank (on behalf of the RCFL Lenders under the Inter-Creditor Agreement (ICA)) has issued a letter of intent in favor of the company.
Venus remedies Foray into India’s 30,000 crore consumer health market, Venus Remedies Ltd has launched its full-fledged consumer health division. The Venus Medicine Research Center, the R&D wing of Venus Remedies and the company’s Consumer Healthcare division will offer a wide range of products covering the critical segments of pain management, gastroenterology, hygiene, stress management and vitamins and supplements.
Xelpmoc design and technology The company approved the fundraising by issuing up to 720,000 shares at an issue price of 375 yen per share, totaling up to 27 crore yen on a preferential grant basis.
Sona BLW precision forgings The company has approved a condition sheet entered into between Sona Comstar and Israel’s IRP Nexus Group Ltd, to collaborate in the design, design, prototype and manufacture of a high efficiency magnetless drive motor, low cost and corresponding controller (system) for electric two-wheelers and three-wheelers, for the global market.
Zomato The sale of shares of 9,375 crore will close today. The Initial Public Offering (IPO) has so far been underwritten at 4.8% with qualified institutional investors and retail investors showing overwhelming interest even though HNIs have remained on the sidelines. The portion reserved for retail investors was subscribed 4.73 times while non-institutional investors (NII) only subscribed 0.45 times. The portion reserved for qualified institutional buyers was subscribed 7.07 times. The company has set the primary market offering price range at 72-76 per share. The IPO consists of a new issue of 9,000 crore and an offer to sell (OFS) of 375 crore by the promoter – Info Edge India.
Tatva Chintan Pharma Chem The 500 crore IPO includes a new issue of shares valued at 225 crore and a 275 crore offer to sell by existing promoters and shareholders, will be open for subscription on Friday. The offer size has been increased to ₹ 275 crore from ₹ 225 crore previously mentioned in the draft documents. The company has set the price range between 1,073 and 1,083 shares per share. The show ends July 20.
Den Networks, HDFC Asset Management Company, Just Dial, L&T Finance Holdings, Maximaa Systems, Starlog Enterprises and Visagar Polytex will release their quarterly results on July 16.