Market Ahead, Aug 14: All you need to know before the opening bell

The Indian markets are once again likely to mirror global cues while investors would look at the AGR case hearing, corporate results, and stock-specific developments while the continued surge in Covid-19 cases may keep the overall sentiment in check. The SGX Nifty is indicating a slightly lower start for the Indian indices today, with a cut of about 40 points.

In the US, indices ended mixed overnight. The Dow Jones fell 0.3 per cent, the S&P 500 lost 0.2 per cent, and the Nasdaq Composite added 0.27 per cent. Similar trend was seen in Asian shares early Friday. Australian ASX 200 rose 0.3 per cent, while Japan's Nikkei was flat. Meanwhile, Hong Kong's Hang Seng index dipped 0.3 per cent.

Telecom and bank stocks will once again be in focus today as the Supreme Court will hear the AGR case, starting 3 PM. State Bank of India yesterday filed a plea in the apex Court seeking permission to intervene in the AGR matter on behalf of Reliance Communications’ lenders. SBI said the amount payable under a resolution plan would be paid prioritising operational creditors over financial creditors and hence the interests of the DoT are adequately protected.

Investors might also react to the CPI-based inflation coming in above the monetary policy committee’s target band of 4 per cent for the fourth consecutive month in July. The official data released yesterday showed that retail inflation rose to 6.93 per YoY, up from 6.23 per cent in June, mainly because of a rise in food and petroleum prices. The Wholesale inflation data will be released today.

Besides, corporate results will trigger individual stock moves. State-run BPCL yesterday posted a 30 per cent increase YoY in consolidated profit before tax for the first quarter of FY21 to Rs 3,081 crore on the back of inventory gain, despite a decline in sales and weak refining margin.

Hero MotoCorp reported a 95.38 per cent decline in consolidated net profit at Rs 57.78 crore for the first quarter, on account of lower sales due to the coronavirus pandemic.

And, Tata Steel reported a consolidated loss before tax of Rs 3,338 crore against a profit before tax of Rs 1,819 crore in the corresponding period last year on the back of lower revenues. 

A total of 231 companies including Glenmark Pharma, Berger Paints, and HIndalco Industries are scheduled to announce their June quarter earnings today.

On the Covid-19 front, India yesterday recorded its worst spike of 67,066 cases in a day, taking its total to 24.59 lakh. India's death toll now stands at 48,144. Meanwhile, Cadila Healthcare has launched the cheapest remdesivir brand Remdac, priced at Rs 2,800 per dose.

Domestic air traffic grew 6 per cent on a month-on-month basis in July amid decline in seat occupancy. Airlines flew 21 lakh passengers in July, against 19 lakh in June. IndiGo’s market share crossed the 60-per cent mark for the first time to 60.4 per cent, while those of other airlines declined in the same period. As such, aviation stocks might trade actively in today's session.