Indian markets are expected to open only marginally down on Wednesday despite bearish signal from the US and Asian markets. The SGX Nifty, which currently rules at 14,846 (8 am IST) on the Singapore Stock Exchange, signals a 30-point gap-down opening for Nifty futures, which on Tuesday closed at 14,878.25.

Fearing inflation, the US markets tumbled overnight. The Dow Jones Industrial Average slipped 473 points or 1.36 per cent; S&P 500 and Nasdaq tumbled 0.87 per cent and 0.1 per cent respectively. Tracking the US markets, Asian markets too ruling in the red. Besides inflation worries, geo political tension between Israel and Palestine also weakened the sentiment.

The Japan’s Nikkei index was down 0.8 per cent in early trade on Wednesday. Other markets such as Korea, Australia, Taiwan and China were too down about 0.8 per cent.

According to Deepak Jasani, Head of Retail Research, HDFC Securities, rising inflation threatens the long-term revenue outlook of tech stocks, which underpins their valuation. Record high prices for commodities, including iron ore and copper, have also triggered anxiety over inflation, leading the rest of Asian markets to also fall. The run-up in commodity prices has stoked fears of the U.S. Federal Reserve tightening its monetary policy much sooner than expected.

According to Ruchit Jain Senior Analyst - Technical and Derivatives, Angel Broking, the ongoing consolidation indicates that the market wants to spend some more time in the corrective phase. However, this seems to be just a time-wise correction and hence, we are witnessing good buying interest in the broader markets.

The midcap index continued its outperformance as it has already given a breakout from resistance. On the other hand, the PSU stocks have recently seen good buying interest and in today’s session many stocks from this basket provided mesmerising moves. Traders should continue to focus on such outperforming pockets which are delivering good short term returns, he added.

STOCKS TO WATCH

CG Power and Industrial Solutions on Tuesday said its board has approved a proposal to allot 1.38 crore shares for ₹101.20 crore to Standard Chartered Bank (Singapore) on a preferential basis for settlement of liability toward the latter. The board has approved the issuance and allotment of 1,38,45,000 shares of the company of face value of ₹2 each on preferential basis at a price of ₹73.10, including premium of ₹71.10 per equity share, aggregating to ₹1,01,20,69,500 for consideration other than cash, it said in a BSE filing.

Dr. Reddy's Laboratories has announced that it has entered into a royalty-free, non-exclusive voluntary licensing agreement with Eli Lilly and Company for the manufacture and commercialisation of the drug, Baricitinib, in India. The drug baricitinib has received restricted emergency use approval from the Central Drugs Standard Control Organization (CDSCO), Ministry of Health, India, for use in combination with remdesivir for the treatment of suspected or laboratory confirmed COVID-19 in hospitalised adults requiring supplemental oxygen, invasive mechanical ventilation, or extracorporeal membrane oxygenation (ECMO).

Infosys has announced a strategic collaboration with Britvic to accelerate its digital strategy. Britvic is one of the leading branded soft drinks businesses in Europe. Infosys as a strategic end-to-end partner will help them deliver its strategic transformation roadmap and operations, across Applications, Cloud Infrastructure, Service Management and End User Computing.

The Board of Directors of Davangere Sugar Company has approved a proposal to raise funds by way of issue of equity shares of the company to its eligible shareholders on a right basis, not exceeding Rs ₹50 crore, subject to receipt of necessary approvals.

Results Calendar :

Asian Paints, Apollo Tyres, Avadh Sugar & Energy, Birla Corporation, Borosil Renewables, Dwarikesh Sugar Industries, GRM Overseas, Happiest Minds Technologies, HG Infra Engineering, Jindal Steel & Power, JSW Ispat Special Products, Kaycee Industries, Kennametal India, Khaitan Chemicals & Fertilizers, Lupin, Mahindra Lifespace Developers, Mid East Portfolio Management, Orient Electric, Palash Securities, Pidilite Industries, Prince Pipes and Fittings, PTL Enterprises, Sagar Cements, Saregama India, SIL Investments, Sonata Software, Swiss Military Consumer Goods, Tata Power, Thambbi Modern Spinning Mills, Trigyn Technologies, UPL, Vaibhav Global, Vardhman Concrete, Vikas WSP, Voltas and Yasho Industries will announce quarterly earnings on Wednesday.

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