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Market may open positive on strong Asian markets
April 13, 2021
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‘The second wave of Covid 19 could jeopardise India’s economic revival and the overall impact will have to be ascertained’
After a Black Monday, markets are expected to be cautious even as the SGX Nifty point to a gap-up opening on Tuesday. Weak economy data and rising number of Covid-19 cases will keep the market in a range, said analysts.
The Index for Industrial production (IIP) contracted 3.6 per cent in February while consumer price index or retail inflation rose to 5.52 per cent in March.
The SGX Nifty is currently ruling at 14,403 (8 am IST) against Nifty Futures’ close of 14,343.25, signalling a 60-point gap-up opening. While the US markets closed weak overnight, most Asian markets are up almost 1 per cent in early trade on Tuesday.
A continued increase in in-home consumption and demand for packaged food along with festive season is likely to have driven the growth for fast-moving consumer goods (FMCG) maker Nestle India during the December 2020 quarter, according to analysts, who see a nearly 10-13 per cent growth in revenue on a yearly basis. However, on a sequential basis, the sales growth is likely to be flat or may dip marginally between 1-2 per cent, they believe. Gross margins are likely to expand, led mainly by lower-cost inventory of milk which in turn is likely to drive the operating margins for the FMCG major. The profit for the period is expected to grow between 16-19 per cent on a yearly basis but could contract by 6 per cent sequentially.