Market Ahead, June 15: Top factors that could guide markets this week

After declining over 1 per cent last week, the Indian equity markets this week will be guided by global cues, domestic trend of coronavirus cases and quarterly earnings. Besides, stock-specific action, partly due to the ongoing corporate results announcements, and the announcement of WPI inflation data for May scheduled for today will also be on investors' radar.

On the results front, over 200 companies, including Tata Motors, HPCL, Pidilite Industries, and, LIC Housing Finance are scheduled to report their earnings this week.

Investors will also monitor other factors like the trend in rupee and crude oil prices, analysts said.

India's tally of coronavirus cases has spiked to 3.33 lakh and the death toll has crossed the 9,500 mark, according to Worldometer. On Tuesday and Wednesday, Prime Minister Narendra Modi is slated to hold virtual meet with chief ministers and Union Territory representatives against the backdrop of the rising number of Covid-19 cases.

Moreover, China recorded its highest spike in daily cases in two months, sparking fears of a second wave of infections in the country.

That sent investors in Asia scurrying for safe-havens, leading to a weak start for the Asian markets  today. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.25 per cent with Australian shares off 0.4 per cent and South Korea slipping 0.6 per cent. Japan’s Nikkei fell 0.75 per cent. In line with these trends, the SGX Nifty is also down around 40 points and is indicating a flat to lower opening for the Indian indices.

In commodities, oil prices slipped with Brent down 2 per cent at $37.95 a barrel.

The partly-paid shares of Reliance Industries will make their stock market debut in today's session. These shares were issued in rights issue programme, which concluded on June 3 and garnered 1.6 times subscription. Besides, RIL will be in focus after the announcement of some more foreign investment in Reliance Jio. The conglomerate announced on Saturday that private equity firm L Catterton was making an investment of Rs 1,894.50 crore for 0.39 per cent stake in Jio Platforms while global alternative asset firm TPG would invest Rs 4,546.8 crore for 0.93 per cent equity stake in Jio Platforms.

Besides, investors will also keep track of any newsflow on the Trump administration's action on the H1-B visa which will affect IT stocks. They will also keenly follow the next Supreme Court hearing on AGR scheduled for June 18 after the apex court asked the telecom companies to submit a plan of action and securities in the last hearing. Moreover, the hearing of the plea for the waiver of interest during moratorium is also scheduled to be taken up by the SC on June 17.

Read by Kanishka Gupta