Market Ahead, Aug 21: Top factors that could guide markets today

Positive global cues, corporate results, and the latest changes announced for the Nifty50 index constituents will be the top triggers for the Indian markets today. The setup looks for the domestic indices looks bullish today with the SGX Nifty trading around 80 points higher at 11,380 levels at 7:30 AM. This comes on the back of a tech-driven rally on Wall Street which pushed Nasdaq to a record high overnight. Overall, the Dow Jones rose 0.17 per cent, the S&P 500 rose 0.3 per cent, and the Nasdaq gained 1 per cent.

Asian equities were also largely higher on Friday. Japan's Nikkei added 0.34 per cent, and Hong Kong's Hang Seng rose 0.63 per cent while Australian ASX 200 was flat.

NSE has announced its latest semi-annual review of indices according to which SBI Life Insurance and Divi's Laboratories will enter the benchmark index Nifty 50, replacing Bharti Infratel and Zee Entertainment Enterprises. Apart from the Nifty50, changes have been made in several other indices, including Nifty 500, Nifty Midcap 50, and Nifty Smallcap 100. These changes will become effective from September 25. These stocks are set to trade actively today.

Investors may react to the minutes of the Reserve Bank of India's August monetary policy meeting which showed that outlook for the domestic economy remains "extremely uncertain". The MPC, however, said that the “worst is almost surely behind us” in terms of output losses.

On the corporate results front, a total of 51 companies including PNB, Indiabulls Housing Finance, and Union Bank of India, are scheduled to announce their June quarter results today.

Meanwhile, India recorded over 68,507 coronavirus cases, taking its total past the 29-lakh mark. With 981 fatalities reported on Thursday, the country's death toll has surged to 54,975.

Moreover, the AGR hearing will continue today. During the hearing yesterday, the Supreme Court expressed concern that almost all the dues from telcos could be melting away in bankruptcy proceedings.

And now a quick look at other top news.

The board of Future Enterprises is likely to discuss tomorrow the proposal to merge other listed group entities with itself. Sources have told Business Standard that once the process is complete, Reliance Industries will be investing Rs 8,500 crore in the merged entity by way of additional capital for a nearly 50 per cent stake.

The government plans to sell part of its stake in IRCTC in the current fiscal, and has invited bids from merchant bankers for managing the sale process. The government currently holds 87.40 per cent stake in IRCTC and needs to lower the stake to 75 per cent in order to meet Sebi's public holding norm.

Vedanta Resources yesterday said it has raised around Rs 10,500 crore via bonds, which would be primarily used to fund the delisting of its Indian flagship firm. Vedanta Limited has already received shareholders' nod for delisting the company.