Market Ahead, July 30: All you need to know before the opening bell

The Indian markets are likely to open on a flat note today although the session may turn volatile due to the expiry of derivative contracts of July series and quarterly results announcement by heavyweights Reliance Industries and HDFC.

But let's begin with the global cues. US stocks closed higher overnight after the Federal Reserve kept interest rates at ultra-low levels and repeated a pledge to use its “full range of tools” to support the economy. Although, the Fed cautioned, that the outlook “will depend significantly on the course of the virus.” The Dow Jones rose 0.6 per cent, the S&P 500 gained 1.2 per cent, and the Nasdaq added 1.35 per cent.

Asian stocks tracked the upbeat Wall Street session. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.28 per cent. Australian ASX 200 was up 0.6 per cent and Japan's Nikkei gained 0.2 per cent. Hong Kong's Hang Seng index rose 0.4 per cent.

The quarterly results announcement by Reliance Industries and HDFC will be the major market mover today. Analysts expect a dent in RIL's retail and energy verticals in the June quarter, because of the Covid-19 pandemic. However, higher earnings in the telecom business may partly cushion the hit.

For HDFC, analysts are expecting tepid loan disbursal, elevated provisioning, and contraction in net interest margin as credit demand remained weak amid the ongoing Covid-19 pandemic.

Besides these two results, 401 other companies are also scheduled to announce their quarterly numbers today. 

Investors will also react to some major results announced after market hours yesterday. Bharti Airtel reported widening of losses to Rs 15,933 crore for the June quarter as the telco made a massive AGR-related provision of Rs 10,744 crore. The firm, however, posted a 15.4 per cent rise in consolidated revenues to Rs 23,939 crore.

Moreover, IndiGo yesterday posted its largest ever quarterly loss of Rs 2,844.3 crore for Q1 while revenue from operations plunged 91.9 per cent YoY to Rs 766.7 crore. Meanwhile, IndiGo said its board will meet today to discuss raising at least Rs 2,000 crore through the sale and leaseback of planes and other assets.

Apart from that, market participants will also track Prime Minister Narendra Modi's meeting today with the chiefs of all financial sector regulators including RBI and Sebi. The meeting is likely to focus on economic revival, particularly the steps taken in the field of MSMEs.

On the Covid-19 front, India recorded 49,632 cases in the past 24 hours, taking its total number of Covid-19-positive cases to 15.84 lakh. The Home Ministry yesterday issued 'Unlock 3' guidelines removing restrictions on the movement of individuals during the night, while schools, metro and cinema halls will continue to remain closed.

And, in the end, a quick look at some other top news.

The Sebi has extended the deadline meant for listed companies to disclose their June 2020 quarter financial results by a month to September 15.

Punjab National Bank yesterday said it has raised Rs 994 crore by issuing Basel III compliant bonds on private placement basis.

Sources have told Business Standard that ICICI Lombard General Insurance has initiated talks to acquire Bharti AXA General Insurance in all stock transaction.

Read by Kanishka Gupta