Market Ahead Podcast, July 14: Top factors that could guide markets today

As inflation debate rekindled in the US after the consumer prices rose by the most in 13 years, questioning the sustenance of the US Federal Reserve's loose monetary policy, markets globally slipped. This also set stage for a weak India opening, with SGX Nifty trading 40 points lower at 15,794 around 7.30 am.

The S&P 500 and Nasdaq ended lower in overnight trade after hitting record highs earlier in the session. Overall, the Dow Jones Industrial Average fell 0.31 per cent, the S&P 500 lost 0.35 per cent and the Nasdaq Composite dropped 0.38 per cent. Asian markets traded mixed with Japan’s Topix index down 0.1% and South Korea’s Kospi 0.4%. Australia’s S&P/ASX 200 Index, meanwhile, rose 0.2%.

All eyes now will turn to Fed Chair Jerome Powell's congressional testimony on Wednesday and Thursday for his comments about rising price pressures and monetary support going forward. 

Back home, investor interest is likely to shift to the primary market today as Zomato's Rs 9,375 crore IPO kicks off. The company has priced the issue in the range of Rs 72-76 per share. At the top-end of the price band, the company will be valued at nearly Rs 60,000 crore, which analysts find expensive and hence recommend subscribing only for listing gains purposes. The company ahead of the IPO allotted shares worth Rs 4,195 crore to anchor investors. According to a BS report, the anchor book saw over 30 times more demand than the shares on offer.

In the secondary market, apart from global cues, quarterly earnings, macro data viz WPI inflation and oil price movement could influence investor sentiment. 

In other news, global rating agency Standard and Poor's affirmed India's sovereign rating at "BBB-" and maintained a stable outlook on the gradual recovery in the economy. India's recovery will gain pace through the second half of fiscal 2022 and into the following year, helping stabilise the country's overall credit profile, S&P said in a statement. 

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

Infosys, 5paisa Capital, Craftsman Automation, Dodla Dairy, L&T Technology Services and Hatsun Agro Product are among 19 companies that are slated to post their quarterly earnings today.

Most analysts are penciling in a 27-30 per cent year-on-year (YoY) rise in Infosys' Q1 profit while the revenue growth is seen between 16-17 per cent. That apart, expectations are ripe that the company may hike its FY22 revenue guidance to 13-15 per cent versus 12-14 per cent earlier. 

Adani Enterprises' subsidiary Adani Airport Holdings has taken over the management control of Mumbai International Airport (MIAL) from the GVK Group. This follows approvals received from the Government of India, the City and Industrial Development Corporation (CIDCO) of Maharashtra, and the Government of Maharashtra.

Mindtree reported net profit at Rs 343.4 crore for the quarter ended June 30, 2021, an increase of 61.2 per cent year-on-year, and sequentially profits grew 8.2 per cent. A broad based growth across verticals and geographies saw the company’s revenue rise by 20.1 per cent at Rs 2,291.7 crore for the quarter. Sequentially, the company’s revenue was up 8.6 per cent.

Tata Metaliks Ltd, a subsidiary of Tata Steel, on Tuesday reported a net profit of Rs 94.72 crore for the quarter ended June 30, 2021. The company posted a net loss of Rs 12.36 crore in the year-ago quarter.

ICRA has upgraded credit rating for the bank facilities of Barbeque-Nation Hospitality.