Global markets, SGX point to weak opening for markets

Indian stock markets are expected to open on a weak note due to adverse market conditions in the US, which is reflected by the SGX Nifty.

The SGX Nifty, which was down over 100 points in the morning, is currently hovering around 14,099, a decline of about 75 points. The BSE Sensex and the NIfty on Monday closed at 47,176.80 and 14,132.90

According to analysts, the Indian market is likely to open lower on Tuesday following losses in Asian markets on weak global cues as fears over the spread of a new coronavirus strain weighed on investor sentiment.

According to Binoy Modi of Reliance Securities, “In our view, likely commencement of inoculation process soon and sustained recovery in key high frequency economic indicators bode well for the market”.

Further, FPIs positive flows are expected to sustain in subsequent weeks and visibility of DIIs turning net buyers would be advantageous for markets, he said and added Q3-FY21 earnings and Union Budget will be crucial events for the market in the near term, which will offer clarity about the sustainability of demand momentum in subsequent months.

However, considering rich valuations of markets, we believe market may not see a sustainable broad-based rally and therefore investors must focus on quality companies with strong earnings potential and margins of safety, he furhter said.

Among the stock that will remain in focus include:

Bajaj Finance said that its AUM fell 1 per cent y-o-y to Rs 1.43 lakh crore in Q3-FY21 though sequentially, asset base rose 4.66 per cent. New loans booked during Q3-FY21 were 6 million as compared to 7.7 million in Q3-FY20, the lender said. The company’s deposit book stood at approximately Rs 23,800 crore as of December 2020 as compared to Rs 20,235 crore as of December 2019..

Force Motors: The company on Monday said that it had sold The company has sold 1084 units in December 2020 as compared to 2747 units in December 2019, a drop of 60.54 per cent year-on-year.

Glenmark Pharmaceuticals said that it has issued a notice of optional redemption to the holders of US $200 million 4.5 per cent Senior Notes due 2021 listed on the Singapore Exchange Securities Trading Ltd. The redemption price for the Redeemed Notes will be 101.125 per cent of the outstanding principal amount of the Redeemed Notes, plus accrued and unpaid interest thereon and additional amounts.

HDFC shares may remain in relatively stable, as the mortgage lender said its disbursements in the individual loan category have grown by 26 per cent during the third quarter ended December 2020.

KNR Constructions Ltd, Hyderabad, a premier infrastructure development company has received an order of Rs. 603.63 including GST for upgrading Cheyyur – Vandavasi Polur Road . The maintenance of entire project stretch design length is 7 years for the contract, which is on Engineering, Procurement and Construction (EPC) Mode to be completed within a period of 39 months from the appointed date.

MOIL: The PSU major said it will form a joint venture with Gujarat Mineral Development Corporation for manganese ore mining in Gujarat. Analysts will closely will follow the development.

NBCC: The company has been awarded work order worth Rs 351 crore to Gaursons Hi-Tech. The PSU consultant major has awarded the work for ‘Construction of Balance works/ rectification of defects for the works of HEART BEAT – 2 on as is where Basis at Heartbeat City, Plot no. GH – 01D, Sector-107, Noida, District: Gautam Budh Nagar pertaining to Amrapali group of companies on Engineering, Procurement and Construction (EPC) basis.

Sun Pharmaceuticals: The company has started Phase-2 trials of oral drug SCD-044 in patients with moderate to severe plaque psoriasis. The stock may react positive to the development.

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