In the absence of any major domestic triggers, the equity market sentiment this week will be guided by the global trends. Volatility is likely to remain high amid rising global Covid cases and monthly F&O expiry.
In the week gone by, the indices had declined in two of four trading days amid fears of a sooner-than-expected tapering in monetary stimulus by the US Federal Reserve, rising cases of the Delta variant of the coronavirus coupled with China's regulatory crackdown.
On the global front, investors' eyes will also be on US Federal Reserve Chair Jerome Powell's address at the Jackson Hole Symposium as concerns over tapering intensified especially after the recent Federal Open Market Committee minutes.
Further, three companies are up for listing this week. Nuvoco Vistas will list on exchanges on August 23 while Aptus Value and Chemplast Sanmar will debut on August 24. All three IPOs had received a tepid investor response. Moreover, a tepid start for CarTrade signals an impact on the listing of these firms.
With the earnings season over, markets would track movement in rupee, Brent crude and foreign fund inflows to derive further cues, analysts said.
And now, let's take a look at the trade setup for today.
After two days of selling pressure, markets are likely to gain their mojo back, tracking an upbeat global sentiment. At 7.30 am, SGX Nifty was up 160 points at 16,565, indicating a gap-up start for the benchmark indices.
Globally, Asian stocks rose as traders sought to take advantage of last week’s selloff while weighing risks from the delta virus strain and China’s regulatory curbs. Japan's Nikkei was up 1.6 per cent, Australia’s S&P/ASX 200 index added 0.3 per cent and South Korea's Kospi rose 1.43 per cent. US equity futures also traded marginally higher.
On the stock-specific front, shares of Adani Group companies are likely to be in focus after the market regulator Sebi kept the proposed Rs 4,500-crore initial share-sale of edible oil major Adani Wilmar in "abeyance". The company had filed preliminary papers with Sebi on August 3, to raise funds through an initial public offering (IPO).
Aurobindo Pharma said its Rs 420-crore deal to acquire 51 per cent stake in Cronus Pharma Specialities India or Cronus has been cancelled. On August 12, the company had announced that it had entered into definitive agreements to subscribe to fresh equity shares in Hyderabad-based Cronus.
Karnataka Bank plans to raise up to Rs 6,000 crore debt capital during the current financial year, and it will seek shareholders' approval in the ensuing AGM next month.
Troubled with huge NPAs and top-level exits, Ujjivan Small Finance Bank is expected to elevate its head of operations Carol Furtado as an interim chief early this week. The bank's managing director and chief executive Nitin Chugh has resigned on Thursday (August 19, 2021), citing personal reasons.
Eicher Motors' shareholders in its recently held annual general meeting (AGM) have rejected a proposal for re-appointment of Siddhartha Lal as the company's managing director for a period of five years with effect from May 1 this year.
Infra-related stocks could also hog limelight as Finance Minister Nirmala Sitharaman will launch the National Monetisation Pipeline (NMP) on Monday that will include the Centre’s four-year plan to monetise its brownfield infrastructure assets.
 "Market Ahead Podcast, Aug 23: Factors that could guide markets this week")
