Market Ahead Podcast, June 23: Top factors that could guide markets today

Firm global cues amid US Fed Jerome Powell's reassurance on inflation are likely to propel the domestic market higher today. Although some choppiness ahead of the scheduled derivatives expiry on Thursday cannot be ruled out. That said, the action will return to the primary market as the IPO by India Pesticides will hit the Street today.

At 7.25 am, Nifty futures on SGX were ruling 50 points higher at 15,820, suggesting a firm start for the benchmark indices back home.

In the overnight session, US stocks climbed after Powell reiterated his views that inflation pressures will be transitory even after a notable increase in recent months. Fed chief said he’s got “a level of confidence” that prices will eventually come down while noting that it would be “very, very unlikely” to see the kind of 1970s-style inflation.

The Dow Jones Industrial Average rose 0.2%, while the S&P 500 gained 0.51% and the Nasdaq Composite climbed 0.79% to end at a record high.

Asian stocks were steady tracking a solid finish for the US market. Japan’s Topix index shed 0.3%, South Korea’s Kospi index added 0.2% and Hong Kong’s Hang Seng index rose 0.4%. Meanwhile, Nasdaq futures rose 0.2%.

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

Apollo Hospitals Enterprise, HCC, Mcleod Russel India, Mercator and V2 Retail are among 64 companies slated to release quarterly earnings today.

NMDC posted a manifold jump in its net profit to Rs 2,838 crore for the quarter ended March 31, 2021. It had clocked a Rs 351-crore net profit during the January-March period of the financial year 2019-20.

Two-wheeler maker Hero MotoCorp will hike its vehicle prices by up to Rs 3,000 from July to partially offset the impact of the higher commodity prices.

Markets regulator Sebi on Tuesday exempted Heineken International B V from the obligation of making an open offer following its proposed acquisition of shares in United Breweries Ltd (UBL).

Sobha on Tuesday reported a 65 per cent YoY decline in its consolidated net profit at Rs 17.9 crore for the quarter ended March. Its net profit stood at Rs 50.7 crore in the year-ago period.

Lastly, an update on the primary market.

India Pesticides' Rs 800 crore IPO will open for subscription today. The is priced in the range of Rs 290-296 per share. The company on Tuesday said it has raised Rs 240 crore from anchor investors. Analysts have largely assigned 'Subscribe' rating to the issue on the back of positive growth prospects, strong financials and reasonable valuations.