Market Ahead, Feb 5: Top factors that could guide markets today

The euphoria in the stock market that drove benchmark indices to record high on Thursday is likely to continue well into Friday's session wherein the benchmark Nifty50 index could make a dash for the 15,000 mark amid indications of a firm start. Nifty futures on the Singapore Exchange traded 50 points higher at 14,945 around 7.20 am.

While the global market mood remains strong which is likely to drive the bulls on D-Street higher, what remains to be seen if the Reserve Bank of India's monetary policy outcome would contribute to the party on bourses. The majority expect status quo on interest rates by the RBI MPC but the commentary on inflation and economic outlook would hold importance.

Meanwhile, on the global market front, US stocks rose more than 1% in the overnight session and the S&P 500 and Nasdaq posted record closing highs after another batch of upbeat earnings and data suggesting the labour market may be stabilizing. Meanwhile, investor hopes of further progress on a pandemic-relief package also boosted the market.

The Dow Jones Industrial Average rose 1.08%, the S&P 500 gained 1.09% and the Nasdaq Composite added 1.23%.

Consequently, most Asian stocks also pushed higher. Japan’s Topix Index rose 0.9%, Hong Kong’s Hang Seng gained 0.8%, South Korea’s Kospi index added 0.1% and Australia’s S&P/ASX 200 Index gained 0.8%.

In oil markets, prices ticked higher on strong US economic data, falling inventories and the OPEC+ decision to stick to its output cuts. Brent crude futures rose to $59.27 a barrel in early trade after settling at $58.84 on Thursday.

Now, a look at the stock-specific developments that are likely to sway the market today:

Britannia Industries, Mahindra & Mahindra, Punjab National Bank, Mrs Bectors Food, Fortis Healthcare, Pfizer and Shipping Corporation of India are among 127 companies that are scheduled to release their December quarter numbers today.

Britannia Industries’ bottom-line earnings may come under pressure owing to weaker sales on a quarterly basis, and increase in input costs. Analysts see up to 20% YoY jump in PAT for the cookie maker.

Shares of Stove Kraft will debut on the bourses today. The issues that ran between January 25-28 was subscribed 18 times. Analysts see the stock listing at a premium of 8-10%.

Indian Railway Finance Corporation (IRFC) has sold $750 million worth of dollar-denominated bonds to overseas investors priced at a coupon of just 2.80 per cent per annum.

Tata Power posted over 22 per cent YoY rise in consolidated net profit at Rs 318.41 crore for the December quarter, mainly on the back of higher revenues.

Biocon Biologics, an arm of biotechnology major Biocon, has signed a pact with the Clinton Health Access Initiative (CHAI) to expand access to life-saving cancer biosimilars in over 30 countries.

Lastly, an update on the primary market. The initial public offer of Brookfield India Real Estate Investment Trust (REIT) was subscribed 77 per cent on Thursday, the second day of subscription. The IPO closes for subscription today.