Market Ahead Podcast, Aug 24: Top factors that could guide markets today

Indian markets rose in tandem with global stocks on Monday as bargain buying returned to the Street.

However, investor interest remained skewed as they lapped quality large-cap stocks like HCL Tech, TCS, Bajaj twins and Reliance Industries, but offloaded mid-, and small-cap stocks such as Aditya Birla Capital, Biocon, JSW Energy, Ujjivan Financial Services, Ujjivan Small Finance Bank, and Capacite Infraprojects.

Overall, the frontline S&P BSE Sensex climbed 226 points to settle at 55,556 levels while the Nifty50 closed below the 16,500-mark at 16,488. On the flipside, the BSE MidCap and SmallCap indices fell 0.9 per cent and 1.5 per cent, respectively.

Given the risk-aversion in markets, trading in equities may remain range-bound on Tuesday with stock-specific action in focus.

Two new companies -- Aptus Value Housing Finance and Chemplast Sanmar -- are eyeing market debuts today. However, market fatigue and investors' distance from broader markets may result in a tepid listing, believe analysts.

Nuvoco Vistas, which debuted on the bourses on Monday, too, listed at a 17 per cent discount at Rs 471 on the BSE as against an issue price of Rs 570. The stock, however, rebounded from lows and closed 7 per cent lower at Rs 531 per share.

That apart, shares of Maruti Suzuki could also be on investor radar today as the Competition Commission of India has asked the company to deposit Rs 200 crore as penalty.

Infrastructure and capital goods-related stocks shall also be in focus after the government unveiled its Rs 6-trillion asset monetisation pipeline late on Monday.

Lastly, Indian Hotels has approved to raise Rs 3,000 crore by way of Rights issue.

Globally, markets will react to Euro Area Markit Manufacturing PMI Flash data for August, and will track updates on Covid-19, dollar index movement, and foreign fund flow.