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

The markets extended its winning run to the seventh-straight day on Monday on the back of aggressive buying metal and select IT and financial shares.

The BSE Sensex scaled a fresh summit at 61,963, and ended 460 points higher at 61,766. The NSE Nifty 50 finished with a gain of 139 points at 18,477.

Metal stocks, especially steel, will continue to remain in limelight.

Analysts expect the momentum in metal stocks to continue in the backdrop of a rise in steel prices, which have gone up by Rs 1,500-3,000 per tonne. On Monday, the BSE Metal index had ended with a gain of over 4 per cent.

Crisil, for instance, sees an improvement in the operating margin as well for key players going ahead.

"There is room to raise domestic prices further, and a correction this quarter appears unlikely as prices are likely to hold.

Rising raw material prices in China and the expected coal/ power shortage will potentially weigh on the earlier anticipated price correction," Crisil said.

Here are the companies that are scheduled to announce their September quarter numbers today

ICICI Prudential

Nestle India

L&T Technology Services
Mastek

Navin Fluorine International
JSW Ispat

HUL
ACC

Among the lot, analysts expect HUL to post low double-digit growth in September quarter revenue between 10 per cent and 15 per cent, while the bottom line may rise by 8-10 per cent on a year-on-year basis.

A drop in prices of cement due to weak demand coupled with input cost escalation is expected to keep EBITDA of the domestic cement industry muted for the September quarter, said brokerages.

While ACC is expected to be a laggard in the September quarter, other larger peers like Shree Cement, Dalmia Bharat and Ambuja Cements are expected to report mixed trends, it said. For ACC and Ambuja Cements July-September represents Q3 (CY2021) as they follow January-December accounting year.