Markets may open positive on RBI liquidity programme

Thanks to RBI injected confidence, Indian stock markets are likely to open bullish on Thursday, even as global cues are slightly negative. The SGX Nifty at 14,916.80 indicates a 30-point gap-up opening as Nifty futures on Wednesday closed at 14,888.

Overnight, the US stocks Dow Jones and S&P-500 closed marginally higher, Nasdaq ended a tad lower. However, Asian stocks such as Nikkei, Shanghai and Kospi are little changed with a negative bias, while Australian stocks are up moderately.

RBI on Wednesday maintained its long-term dovish stance. The GSec buying program of ₹1 lakh crore will ensure liquidity and flatten the long-term yields curve, analysts said.

Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services, said: "The RBI policy was very interesting, and it felt like a quantitative easing programme. The key takeaway is that the RBI will continue to maintain the ultra-loose monetary policy and infuse liquidity for a long time as Covid surge will keep imparting uncertainty to growth outlook. The RBI has reiterated that growth is the priority.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: Indian markets are likely to track global cues along with the earnings season, which would kick start from next week and would keep markets volatile.

"We expect another strong quarter, aided by a deflated base of Q4-FY20 and healthy demand recovery for the large part of Q4-FY21 – as attested by high-frequency indicators. Performance is expected to be healthy despite headwinds of commodity cost inflation in various sectors. However, concerns over the fast-spreading 2nd wave of Covid in India continues to remain. Overall, markets are likely to remain in a consolidative mode for some time, awaiting a fresh positive triggers,” he said.

Stocks to watch

Hindustan Copper : The board of Hindustan Copper has approved the opening of the Qualified institutions placement. The board approved the floor price as ₹125.79 a share. The Board of Hindustan Copper had October 29 approved the overall borrowing limit of ₹2,500 crore for all types of borrowings / loans including bonds, and raising funds by issue of equity shares through Qualified Institutional Placement method to the extent of 15 per cent of existing paid up equity capital in one or more tranches.

Muthoot Finance has launched NCD issue today. Ltd has announced its 25th series of Public Issue of Secured Redeemable Non-Convertible Debentures of face value of ₹1,000 each. The Issue is with a base issue size of ₹100 crore with an option to retain oversubscription upto ₹1,600 crore aggregating up to tranche limit of ₹1,700 crore. The Issue closes on April 29.

Aimco Pesticides Limited , India's reputed, integrated agrochemicals company, announced that it has executed a 3-year contract manufacturing agreement for one of its existing products with an Indian agrochemical major. The contract entails a 3-year supply agreement with the Customer commencing April 1, 2021, for one of the Company's existing technical product. The company expects production to fully-stabilise by June 2021, during which production will ramp-up to the desired levels. Over the tenure of the contract, the company expects to generate revenues of approximately ₹225-250 crore. The company has already incurred a capital outlay of ₹5 crore and further investment of ₹10 crore in plant and machinery, debottlenecking, utility & safety, effluent treatment facility, and warehousing is expected in FY2021-22.

Rajesh Exports has bagged a first major prestigious order post covid worth ₹745 crore of designer range of gold jewellery from Germany. The said order is to be completed by July, 2021. The company will be executing the order from its own manufacturing facilities. These facilities have processing capacity of 250 tons of jewellery and gold products per annum.

Wipro , a leading global information technology, consulting and business process services company, has announced the appointment of Suzanne Dann as Senior Vice President and Sector Head for Capital Markets and Insurance, North America region.

AGC Networks has completed the acquisition of a majority stake in Z Services HQ DMCC, UAE (Z Services HQ) through its indirect subsidiary - Black Box Holdings Cayman Islands. Z Services HQ is is a Cyber security cloud services provider, offering Secure Access Service Edge (SASE), Unified Cloud security, Email Cloud Security / Archiving, Cloud Access Security Broker (CASB), Secure Public Wifi Cloud Services, Cyber Security Awareness Cloud Services, End point detection and response cloud services, combined with service implementation and digital transformation professional services.

Tanla Platforms , a CPaaS provider, has announced the appointment of Aravind Viswanathan as Chief Financial Officer effective June 1. Aravind joins the company from Wipro, where he served as Senior Vice President and CFO - iDEAS Global Business Line.

IPO corner

Macrotech Developers, which launched the ₹2,500-crore initial public offering on Wednesday, was subscribed 27 per cent. The issue will close on Friday. Price band of the issue is ₹483 to ₹486. From IPO proceeds, Macrotech proposes to reduce debt by up to ₹1,500 crore and acquire land or land developmental rights aggregating up to ₹375 crore. Ahead of the issue, Macrotech Developers Ltd also known as Lodha Developers, has raised ₹740 crore from 14 anchor investors. The company informed the bourses that it has allocated 1.52 crore shares at ₹486 a share to anchor investors.

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