Market Ahead, October 23: Top factors that could guide markets today

Investors are likely to focus on global cues, corporate results, and stock-specific developments amid a choppy trend in the domestic markets and the lack of other major triggers.

The main Wall Street indices closed higher overnight after signs of progress in stimulus talks in Washington. The Dow Jones and the S&P 500 gained half a per cent each. The tech-heavy Nasdaq Composite bumped up 0.2 per cent. Meanwhile, US President Donald Trump is debating Democratic challenger Joe Biden as of now to try to close a gap in opinion polls before an election 12 days away.

Asian indices, meanwhile, mixed in Friday's early deals. Japan's Nikkei gained 0.2 per cent, while Australia’s ASX 200 dipped 0.2 per cent. Meanwhile, Hong Kong’s index was flat.

SGX Nifty tracked the trend in Asian indices and was trading flat at 11,885 levels, at around 7:30 AM.

On the results front, Ambuja Cements yesterday reported 50 per cent rise in consolidated net profit at Rs 803 crore for September quarter 2020, helped by volume growth and improvement in operational efficiencies. Telecom tower company Bharti Infrate, meanwhile, announced a 24 per cent year-on-year decline in its profit after tax at Rs 733 crore for the quarter. The stocks of both these companies will react to the quarterly numbers today

Tech Mahindra, Nestle India, Yes Bank, and ICICI Lombard General Insurance Company are among the 38 companies set to announce quarterly earnings today.

Tech Mahindra is expected to post up to 2.3 per cent quarter-on-quarter revenue growth in constant currency for the quarter under review. Further, analysts expect up to 250 basis points increase in Ebit margin on a sequential basis owing to lower sub-contracting cost, easing of supply-side pressure, and cost rationalisation.

Onn the Covid front, India on Thursday recorded 54,482 cases, taking the tally to 77.5 lakh. Death toll rose to 1.17 lakh. India recorded a test positivity rate of 4.99 per cent, a massive decline from the rate of almost 8 per cent at the start of September.

Housing Finance companies are likely to be in focus today as the RBI has asked HFCs to deploy at least 60 per cent of their net assets in the business of providing finance for housing, and those who still don’t have that ratio, must do so in a phased manner by March 31, 2024

And now a quick look at other top news.

Ace investor Radhakishan Damani bought nearly 7 lakh shares of Cochin Shipyard at Rs 349.14 per share from the open market yesterday, NSE bulk deals data showed.

The initial public offer of Equitas Small Finance Bank garnered nearly two times subscription. The institutional investor portion was subscribed 3.8 times, while the retail investor portion was subscribed 2 times. Wealthy investors gave the IPO a miss with the high networth individual portion garnering just 0.23 times subscription.

And, Burger King India has filed draft papers with markets regulator Sebi to raise Rs 542 crore through fresh issuance of shares in the IPO