Market Ahead Podcast, June 15: Top factors that could guide markets today

The benchmark indices eye a tepid start to the day today amid a host of mixed cues. While supportive global market sentiment and positive news flow around coronavirus cases are likely to provide comfort to the market bulls, the CPI inflation print for May came as a shocker for investors.

May CPI inflation at 6.3 per cent was not only above Bloomberg's estimates of 5.4 per cent but also moved beyond MPC's target band for the first time since November. High and sticky inflation is a cause of worry, despite the low industrial capacity utilisation, analysts cautioned.

Investor focus will now turn to Federal Reserve's two-day meeting which kicks off today and any shift in the central bank's dovish rhetoric could upend the equity markets.

Analysts advise adopting a bullish yet cautious view on the market and maintaining a stock-specific trading approach. 

At 7.40 am, SGX Nifty was flat at 15,836.

In an overnight session, the S&P 500 and Nasdaq eked out record high finishes, despite most traders being focused on this week's Federal Reserve meeting and not on adding to existing positions. Investors are seeking new cues from the central bank on its inflation outlook after recent data indicated the U.S. economy is regaining momentum but not overheating.

The Dow Jones Industrial Average fell 0.25%, the S&P 500 gained 0.18% and the Nasdaq Composite added 0.74%.

Asian stocks pushed higher after their US peers closed at a record. Japan's Topix index and Australia’s S&P/ASX 200 index added 0.3% each while South Korea’s Kospi index was little changed.

Elsewhere, crude oil edged to over two-year high on optimism that economic reopenings will boost summer demand in the US and Europe. Brent crude was up by 0.6%, at $73.29 a barrel.

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

Jubilant FoodWorks, Power Finance Corporation, LIC Housing Finance, Easy Trip Planners and Whirlpool of India are among 45 companies slated to post their quarterly numbers today.

Coal India reported a marginal 1.1 per cent YoY decline in its consolidated profit at Rs 4,586.78 crore for the quarter ended March 2021 on the back of lower sales.

SBI Cards and Payment Services on Monday said it has raised Rs 500 crore by issuing bonds.

JB Chemicals & Pharmaceuticals on Monday reported a two-fold jump in consolidated net profit to Rs 100.81 crore for the quarter ended March 2021 on account of robust sales.

Lastly, an update on the primary market.

The initial public offer of Shyam Metalics and Energy was subscribed 1.23 times on the first day of subscription on Monday. Meanwhile, public offer by Sona BLW Precision Forgings was subscribed 11 per cent.