Market Ahead Podcast, August 5: Top factors that could guide markets today

After two days of relentless gains, the rally on Dalal Street could slow down as investors weigh elevated valuations and amid a stable yet cautious global market setup. Meanwhile, high volatility could be in store on account of weekly F&O expiry. At 7.30 am, SGX Nifty was up 18 points at 16,278.

US equities fell from record after the vice-chair of the Federal Reserve suggested rates could rise by 2023 and mixed economic data for July showed US companies adding far fewer jobs than expected. Overall, S&P 500 lost 0.46 per cent, Dow Jones shed 0.92 per cent and Nasdaq eked 0.13 per cent gain. In Asia, equities edged up in Japan and South Korea while Australian shares slipped.

Apart from global cues, the June quarter earnings season, FII flows and the RBI policy decision slated for Friday could also sway market sentiments.  

Primary market activity is also likely to remain heightened as all the issues will open for subscription on Day 2. Exxaro Tiles IPO was subscribed 4.63 times on Day 1, Windlas Biotech 3.15 times, Devyani International 2.69 times and Krsnaa Diagnostics 1.16 times.

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

Over 100 companies, including Adani Power, NCC, GAIL, Tata Chemicals, Cipla, Quess Corp, Indiabulls Housing Finance and Gujarat Gas are slated to post their results.

Kumar Mangalam Birla has stepped down as non-executive chairman of Vodafone Idea (Vi) after offering to give up his stake in the debt-ridden telecommunications (telecom) company. Himanshu Kapania, a telecom industry veteran and a nominee of Aditya Birla Group on the board, will take over the chairman’s post. Birla Group Chief Financial Officer Sushil Agarwal has been named additional director on the Vi board.

Titan Company reported a net profit of Rs 61 crore for the quarter ended June as against a net loss of Rs 270 crore in the year-ago quarter. Its sales in Q1 jumped 74.5 per cent YoY to Rs 3,249 crore aided by a low base in the year-ago quarter.

Hindustan Petroleum Corporation reported a 36 per cent YoY drop in its June quarter net profit after one of its two oil refineries took a maintenance shutdown, reducing crude oil processing. Net profit in April-June fell to Rs 1,795 crore from Rs 2,183.83 crore in the same period a year back and Rs 3,017.96 crore in the preceding quarter.

Shipping Corporation of India has approved a scheme of arrangement for the demerger of 'non-core assets'.