Market Ahead Podcast, May 26: Top factors that could guide markets today

Benchmark indices may continue to consolidate and trade range-bound on Wednesday amid lack of fresh domestic triggers. At 7:40 AM, SGX Nifty quoted around 40 points down, suggesting a flat-to-negative start on Dalal Street. 

This comes after US stocks closed slightly lower on Tuesday as investors continue to try and assess the route of inflation. Overall, the Dow Jones fell 0.24 per cent, the S&P 500 lost 0.21 per cent, and the Nasdaq Composite dropped 0.03 per cent. 

Yields on longer-dated US Treasuries, however, fell for a fourth straight day, with the benchmark 10-year yield hitting a fresh two-week low of 1.557 per cent and helping to dampen inflation worries. This may provide some comfort to the investors.

Moreover, the trend was flat to positive among Asian indices early Wednesday. Hong Kong's Hang Seng rose 0.6 per cent, while Japan's Nikkei and South Korea's Kospi were up 0.2 per cent, each. Australia's ASX200, meanwhile, was flat.

Back home, India reported 208,886 new coronavirus cases in the last 24 hours, a slight increase than the day before, while deaths from the disease rose by 4,172, according to Worldometer. The country's total cases are now over 27 million. Whil this may have a bearing on the market sentiment, investors would eye news flow around unlocking of states and pick up in vaccination drive to move forward.

Moreover, stock-specific action and quarterly earnings could steer indices while volatility may rise ahead of the May series F&O expiry tomorrow.

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

A total of 52 companies, including Berger Paints India, Bharat Petroleum Corporation, Burger King India, Cummins India, and Vardhman Holdings are scheduled to announce their quarterly results today.

Godawari Power and Ispat Ltd, on Tuesday, posted a multifold jump in consolidated net profit at Rs 304.01 crore for the March quarter 2020-21, from Rs 34.22 in the year-ago quarter, mainly on the back of higher revenues. Total income rose to Rs 1,263.67 crore in the quarter.

Energy solutions firm Thermax said its consolidated net profit jumped nearly three-fold to Rs 107 crore for the March quarter. Total income rose to Rs 1,610.34 crore in the quarter from Rs 1,353.66 crore earlier.

HDFC Ltd on Tuesday said it will raise up to Rs 7,000 crore by issuing bonds on private placement basis. It will offer a coupon rate of 6 per cent per annum on the bonds, the issue for which opens on May 28 and closes the same day.

DHFL: The NCLAT, on Tuesday, stayed the order of the Mumbai Bench of the NCLT, which had directed the DHFL administrator to place the settlement offer of the erstwhile promoter, Kapil Wadhawan, before the committee of creditors while it decided on the appeal.