Market Ahead Podcast, August 4: Top factors that could guide markets today

After hitting fresh peaks on Tuesday, the benchmark indices look set to open in the green, with BSE Sensex eyeing the 54,000 mark and Nifty50 16,200. But it remains to be seen if a cautious start for Asian markets and fall in US futures dent sentiments as the session progresses. At 7.30 am, SGX Nifty was trading 48 points higher at 16,213.

Asian shares were steady as China's clampdown and spread of Delta Covid-19 variant restrained sentiments. Japan's Topix index fell 0.4 per cent, Australia's S&P/ASX added 0.1 per cent and Hong Kong Hang Seng declined 0.2 per cent. S&P futures, meanwhile, shed 0.2 per cent and Nasdaq 0.1 per cent.

In overnight trade, Wall Street posted a strong show, with S&P ending 0.82 per cent higher at its new record close. Dow Jones added 0.8 per cent and the Nasdaq 0.55 per cent.  

Back home, with four IPOs lined to open today, the action might also shift to the primary markets.

At Rs 1,838 crore, KFC and Pizza Hut operator Devyani International is the largest IPO amongst them. Despite its loss-making nature, analysts have largely assigned Subscribe rating to the issue, banking on its discounted valuations and growth potential ahead. Krsnaa Diagnostics, Windlas Biotech and Exxaro Tiles are other IPOs that will open for subscription today.

Besides this, focus will remain on the ongoing earnings season, the RBI MPC meet that will kick off today and the macroeconomic data viz Markit Services and Composite PMI numbers for July.

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

Nearly 70 companies, including State Bank of India, Titan Company, Godrej Consumer Products, HPCL, and PNB Housing Finance, that are slated to report their June quarterly result. Analysts expect SBI to report a healthy set of numbers, supported by recovery from United Breweries Group's stake sale and lower interest income reversals. They are pencilling-in a year-on-year rise in net profit between 33 per cent and 63 per cent.

Bharti Airtel reported a net profit of Rs 283.5 crore, in the first quarter ended June 30 (Q1FY22). This was much lower than consensus estimates which had pegged the same at Rs 604 crore. The company had reported a loss of Rs 15,933 crore in the year ago quarter on account of one-time provision for dues related to adjusted gross revenues.

Tata Consumer Products reported a decline of 42.05 per cent YoY in consolidated net profit to Rs 200.24 crore for the first quarter ended June 2021. However, its revenue from operations in April-June 2021 jumped 10.85 per cent YoY to Rs 3,008 crore.

Adani Enterprises reported a consolidated profit of Rs 265.60 crore for the quarter ended on June 30, 2021 on the back of higher revenue from operations. The company had posted a consolidated loss of Rs 65.67 crore in the year-ago period.

Vodafone shares will be in focus after Vodafone Group Plc ruled out any further equity infusion in its debt-ridden telecom joint venture in India.