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

Wall Street ended sharply higher in the overnight session after three days of selling on upbeat labour market data. All three major US stock indexes notched solid gains, with the S&P 500 enjoying its biggest percentage gain in over a month.

The Dow Jones Industrial Average rose 1.29%, the S&P 500 gained 1.22% and the Nasdaq Composite added 0.72%.

Asian markets tracked the robust sentiment in US markets and climbed, with investors migrating to value from growth companies as signs of a strengthening labour market tempered inflation worries.

Japan’s Topix Index rose 1.4%, Australia’s S&P/ASX 200 was up 0.8% and South Korea’s Kospi gained 0.8%.

Meanwhile, Indian markets eye a flat-to-negative start to the day as they resume trading after a one-day holiday on Thursday with investors looking to digest a host of cues from global markets. At 7.30 am, adjusted SGX Nifty was trading 40 points down at 14,668. 

Although, a drop in Covid cases and positive data on the macro front could lend some support to the indices.

India, in the last 24 hours, reported a dip in fresh Covid cases to below 3.5 lakh mark at 3,43,122. This was lower than Wednesday's figure of 3,62,720 cases.

On the macro front, India's industrial production was up 22.4 per cent in March on a low year-on-year (YoY) base against a 3.4 per cent contraction in February. Also, the retail inflation eased to a three-month low in April to 4.29 per cent. But most economists don't expect this trend to sustain amid localised lockdowns following a second Covid wave.

That apart, March quarter numbers, stock-specific moves and institutional activity can also influence market mood.

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

A total of 41 companies, including Larsen & Toubro, Dr Reddy's Laboratories, Cipla, Aditya Birla Capital, Macrotech Developers and Welspun India are scheduled to release their quarterly results today.

Larsen & Toubro’s consolidated revenue is expected to witness double-digit YoY growth in the March quarter, led by higher execution in a seasonally strong quarter and a low base.

Vedanta reported a consolidated net profit of Rs 6,432 crore in the March quarter against a loss of Rs 12,521 crore in the corresponding period last year on the back of increased sales.

UPL on Wednesday reported a 73.59 per cent YoY growth in consolidated net profit at Rs 1,361 crore for March quarter 2020-21. The company's net profit stood at Rs 784 crore in the year-ago period.

Eicher Motors will be in focus today after Royal Enfield said it has decided to shut down its two manufacturing facilities between May 13-16 amid a second Covid wave.