Market Ahead Podcast, April 27: Top factors that could guide markets today

Investors on D-Street might adopt a more cautious approach to trade in today's session ahead of the start of the Federal Reserve policy meeting and amid fast-rising Covid cases. Tepid cues from global peers could also keep sentiment subdued.

Although, Reserves Bank of India's latest economic readings which point to a minimal impact from the second Covid wave on the economy could help soothe investors' nerves.

At 7.40 am, SGX Nifty was ruling 2 points up at 14,490.

India for the sixth day in a row reported cases over 3 lakh, while mortalities shot past the 2,000 mark for the seventh straight day.

Meanwhile, taking stock of the economic situation, the Reserve Bank of India on Monday said India's economic activity has held up well against the recent spike in Covid-19 cases. "Apart from contact-intensive sectors, activity indicators largely remained resilient in March and grew beyond pre-pandemic levels on the back of strong momentum rather than statistical base effects," it added.

The central bank although cautioned that the rise in infections risks protracted restrictions and inflationary pressures as they did in 2020.

On the global market front, fueled by rally in Tesla Inc and other heavyweight growth stocks ahead of a deluge of earnings reports this week, S&P500 and Nasdaq clinched record closing highs in the overnight session on Monday. The S&P 500 gained 0.18% and the Nasdaq Composite climbed 0.87%.

The Dow Jones Industrial Average slipped 0.18%.

Most Asian stocks slipped in early trading and U.S. futures edged higher as traders await a Federal Reserve meeting that is expected to leave policy exceptionally loose despite robust growth.

Japan’s Topix Index was down 0.4%, South Korea’s Kospi Index edged down 0.2% and Australia’s S&P/ASX 200 Index shed 0.3%.

Now, a look at the stock-specific triggers that are likely to guide the market today

A total of 28 companies are set to report their March quarter results today including largecap names such as Axis Bank, Maruti Suzuki, Bajaj Finance, Britannia and HDFC AMC.

Tech Mahindra on Monday reported net profit of Rs 1,081 crore for the fourth quarter ended March 31, 2021, up 34.6 per cent year-on-year (YoY). On a sequential basis, the figure was down 17.4 per cent from Rs 1,309.8 crore. The company misses estimates of over 50 per cent jump in Q4 PAT.

SBI Cards and Payment Services reported a net profit of Rs 175 crore in the March quarter of FY21, up 110 per cent compared to Rs 84 crore in the same period last year due to lower provisions and a significant jump in other income and income from fees and services.

HDFC Life Insurance reported a 2 per cent YoY increase in its standalone profit after tax to Rs 318 crore in the quarter ended on March 31, 2021, compared to Rs 312 crore in the year-ago period.