Market Ahead Podcast, August 11: Top factors that could guide markets today

Early indications suggest the benchmark indices could continue to hover at record high levels on Wednesday although gains will be limited amid mixed cues from global peers. The passage of infrastructure bill by US Senate will propel positive momentum in the market but concerns on the US Fed taper talk, virus and inflation front linger. That said, with the earnings season underway, stock-specific action will remain high which could also sway market moves. At 7.30 am, SGX Nifty was trading 11 points higher at 16,288. 

In overnight session, Wall Street rose, with both the blue-chip Dow and benchmark S&P 500 closing at record highs, as economically sensitive value stocks gained with the US Senate's passage of a $1 trillion bipartisan infrastructure package. Overall,  Dow Jones Industrial Average rose 0.46 per cent, the S&P 500 gained 0.10 per cent and the Nasdaq Composite dropped 0.49 per cent. 

In Asia, markets were mixed ahead of key report on US inflation. Topix index rose 0.8 per cent, Australia’s S&P/ASX 200 Index rose 0.5 per cent, Kospi index fell 0.2 per cent and Hang Seng Index was little changed. 

Meanwhile, in commodity market, oil prices held gains after recovering on Tuesday on signs of rising fuel demand in the United States despite a surge in COVID-19 cases. Brent was hovering around $70.67 per barrel after surging over 2 per cent last evening. 

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

Bata India, Cadila Healthcare, Endurance Tech, New India Assurance, Antony Waste Handling Cell, Bajaj Electricals, HEG, IDFC, India Cement, VIP Industries and Pidilite are among 300 companies slated to post their quarterly earnings. 

In its first quarterly results after its listing last month, Zomato said its net loss widened to Rs 356 crore in the first quarter ended June 30 due to increased expenses and a hit on dining out as the second wave of the Covid-19 pandemic upended lives and livelihoods. It had reported a loss of Rs 99.8 crore in the year ago quarter. Revenue from operations in Q1 rose to Rs 844.40 crore, from Rs 266 crore a year ago. 

Debt-laden Vodafone Idea (Vi), which is struggling for survival, moved the Supreme Court on Tuesday, seeking a review of its July 23 order that dismissed the petitions of telecom firms for a re-computation of adjusted gross revenue (AGR) dues. Airtel, too, is likely to move the court for relief, as per a BS report.

Power Grid Corporation of India posted a nearly three-fold jump in consolidated net profit at Rs 5,998.28 crore in the June quarter, mainly on the back of higher revenues.

Trent  reported narrowing of consolidated net loss at Rs 138.3 crore in the first quarter ended June 30 despite disruptions by the second wave of COVID-19 pandemic. The company had posted a consolidated net loss of Rs 184.04 crore in the same period last fiscal.

Now, lastly an update on the primary market. 

The two new IPOs that opened on Tuesday were off to a tepid start. While Chemplast Sanmar received 16 per cent subscription, Aptus Value was subscribed 24 per cent. The IPO by Nuvoco Vistas managed to garner only 29 per cent subscription at the end of Day 2. CarTrade Tech with 99 per cent subscription looked set to sail through on its last day of bidding process.