Market Ahead Podcast, May 19: Top factors that could guide markets today

After two days of strong gains, Indian benchmark indices could take a breather amid tepid global market cues and some profit-taking at the higher levels. Although, lack of a fresh spurt in Covid cases could help cap the downside. Besides, the Q4 earnings season has been healthy so far, providing support to market sentiments.

At 7.30 am, SGX Nifty was trading 80 points lower at 15,081, indicating a negative start for the benchmark indices.

In the overnight session, US stocks declined for a second day with losses steepening in the final 15 minutes of trading as investors weighed the rush to reopen the economy against inflationary pressure from a rise in commodity prices.

The Dow Jones Industrial Average fell 0.78%, the S&P 500 lost 0.85% and the Nasdaq Composite dropped 0.56%.

Asian stocks tracked US markets to trade lower with Japan’s Topix index retreating 0.7%, Australia’s S&P/ASX 200 index shedding 1.9% and China’s Shanghai Composite index losing 0.5%.

Meanwhile, back home, Covid cases stayed below the 3 lakh mark for a third straight day as India reported 2.67 lakh cases in the last 24 hours. This is against 2.63 lakh cases on Tuesday and 2.81 lakh cases on Monday.

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

IOC, Indiabulls Housing Finance, JK Tyre & Industries, Tanla Platforms and Zuari Agro Chemicals are among 25 companies slated to post their March quarter results today.

Auto major Tata Motors reported a surprise consolidated net loss of Rs 7,605 crore for the quarter ended March 31, 2021, mainly on account of asset write-downs in subsidiary Jaguar Land Rover (JLR). According to a consensus estimate of Bloomberg, Tata Motors was expected to report a net profit of Rs 2,774.10 crore.

The government will sell a nearly 2 per cent stake in Axis Bank held through Specified Undertaking of the Unit Trust of India (SUUTI), a move that’s expected to fetch around Rs 3,969 crore to the exchequer in divestment receipts. The government will sell its 1.21 per cent stake or 36 million shares in Axis Bank with the floor price set at Rs 680 a share.

Shakti Pumps India reported a consolidated net profit of Rs 30.39 crore for the quarter ended March 31. The company had posted a loss of Rs 6.14 crore in the corresponding period of 2019-20.

Ujjivan Small Finance Bank on Tuesday reported an 86 per cent YoY jump in its net profit to Rs 136 crore for the last quarter of the fiscal ended in March 2021.