Market Ahead Podcast, July 29: Top factors that could guide markets today

US Federal Reserve's reassurance that more economic progress is needed to kick off tapering of stimulus helped Asian markets heave a sigh of relief.

At a news conference, Fed Chairman Jerome Powell said it was not yet time to think about raising interest rates, and that while the Fed has begun discussing plans to taper its bond purchases, the exact timing will depend on incoming data. Following this, US markets ended listless with S&P500 flat, Nasdaq up 0.7 per cent and Dow Jones down 0.3 per cent.

Although in Asia, Japan’s Topix index, Australia’s S&P/ASX 200 and South Korea’s Kospi rose 0.3 per cent each. Efforts by China to restore market calm also helped sentiment. State-run media have published articles suggesting the rout is overdone, while analysts have speculated about intervention by government-linked funds, a Bloomberg report said. This pushed Hong Kong's Hang Seng 1.7 per cent up.

Apart from the global market action, the earnings announcement from key Nifty majors and monthly derivatives expiry would keep the participants busy. Amid this, SGX Nifty traded down 15 points at 15,691.

With two initial public offers (IPOs) running, activity remains high in the primary market. Rolex Rings IPO was fully subscribed within hours of opening on Wednesday and closed the trade with 3.84 times subscription. Glenmark Life Sciences was subscribed 5.78 times on the second day of subscription and closes today.

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

Over 90 companies, including Tech Mahindra, TVS Motors, Future Retail, Lauras Labs, PVR, Raymond, Stove Kraft and Union Bank will announce their quarterly numbers today.

Brokerages project a 16-23 per cent year-on-year (YoY) rise in Tech Mahindra's June quarter profit and a 10 per cent jump in revenue on 1 per cent contribution from acquisitions and ramp-up in deals won in prior quarters.

Shares of Tatva Chintan Pharma Chem will debut on the bourses on Thursday. The second most subscribed IPO of 2021, with 180 times bids is set to double on listing. The grey market premium for the stock surged by Rs 1,140-1,150 or 105-110 per cent over the issue price of Rs 1,083 ahead of listing.

Nestle India reported a 10.7 per cent YoY growth in its profit after tax for the April-June quarter. Its net sales for the quarter surged by 13.8 per cent YoY to Rs 3,462.4 crore from Rs 3,042 crore.

Happiest Minds Technologies reported a nearly 29 per cent decline in consolidated net profit to Rs 35.73 crore in the June 2021 quarter as against a net profit of Rs 50.18 crore in the year-ago period. Its revenue, however, grew 41.4 per cent YoY at Rs 331.52 crore.

ABB India posted a four-fold jump in its net profit to Rs 68 crore in the June quarter compared to the year-ago period mainly due to higher revenues.