Market Ahead Podcast, August 3: Factors that could guide markets today

The Wall Street came off near record highs in overnight session to end flat as fast-spreading delta Covid-19 variant and signs of robust but softer US manufacturing growth soured sentiment.

The S&P 500 ended 0.18 per cent lower, the Dow Jones declined 0.28 per cent and the Nasdaq added 0.06 per cent.

In Asia, too, equities edged down, setting the stage for a weak D-Street opening. Japan’s Topix index fell 0.2 per cent, Australia’s S&P/ASX 200 was flat and Hong Kong's Hang Seng shed 0.50 per cent.

Consequently, SGX Nifty was down 40 points at 15,870 around 7.30 am. Although, robust quarterly earnings, further ease in lockdowns and strength in US futures are likely to contain downside.

That said, more and more companies are looking to tap the primary markets. Beauty startup Nykaa has filed DRHP with Sebi to raise around Rs 4,000 crore. Meanwhile, Adani Wilmar has also filed papers with the regulator for Rs 4,500 crore issue. Already four companies are looking to hit Street on Wednesday to raise funds via the primary market.

Now, a look at the stock-specific triggers that are likely to guide the market today.

Some 70 companies are looking to release their quarterly earnings, including Adani Ports, Adani Enterprises, Bharti Airtel, Barbeque Nation, Dabur, Inox Leisure and Tata Consumer Products. In regards to Airtel, analysts believe the company may report stable ARPU sequentially and nearly flat revenue growth. 

Punjab National Bank reported over three-fold jump in its standalone net profit to Rs 1,023.46 crore for the first quarter ended June 30, mainly due to fall in operating expenses and good recovery. The total income during Q1FY22 however declined to Rs 22,515 crore from Rs 24,292.80 crore in Q1FY21.

RBL Bank reported a loss of Rs 459.47 crore for the June quarter as against a profit of Rs 141 crore in the year-ago period as the money set aside for future loan setbacks shot up by nearly three-times. The overall provisions rose to Rs 1,425 crore from Rs 500 crore in the year-ago period.

Tata Motors said it has increased prices of its passenger vehicles by 0.8 per cent with effect from August 3. The company noted that it would offer protection from the price increase to vehicles that will be retailed on or before August 31.

Tata Sons arm Panatone Finvest on Monday picked up an 8 per cent stake in domestic telecom equipment maker Tejas Networks for over Rs 193 crore through an open market transaction.