Market Ahead Podcast, August 6: Top factors that could guide markets today

In what will be a busy day for investors on Dalal Street, early indications are in favour of a mildly positive start. Although, after a sharp up move in the last few sessions, analysts predict the possibility of a minor downward correction from the highs. The RBI policy decision is likely to set the tone for the session, with all eyes on the central bank's commentary on the growth outlook, inflation projection, and liquidity measures. Overall, Street is pencilling in the status quo on rates and accommodative policy stance.

Further, Q1 earnings, global market setup and FII flow will sway the market sentiments. At 7.35 am, SGX Nifty was trading 24 points higher at 16,334.

On the global market front, Nasdaq and S&P 500 closed at record levels after a spate of strong corporate earnings and a further decline in US unemployment claims last week. The Dow Jones rose 0.78 per cent, the S&P 500 gained 0.60 per cent and the Nasdaq Composite added 0.78 per cent.

Most Asian stocks, however, dipped Friday as traders weighed the spread of the delta coronavirus strain. Japan’s Topix index was flat, South Korea’s Kospi and Hong Kong’s Hang Seng fell 0.2 per cent each and China’s Shanghai Composite index slipped 0.3 per cent.

Meanwhile, in other news, putting an end to the contentious retrospective tax law that hit the confidence of foreign investors, including Vodafone and Cairn, for years, Finance Minister Nirmala Sitharaman on Thursday introduced a Bill in Parliament to nullify the provision in the Income Tax Act. The government has also proposed to refund the amount paid in litigation by companies without any interest thereon. Analysts believe this move is expected to make India a more investor friendly destination from a global perspective.

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

Over 100 companies are slated to post their numbers on Friday including M&M, Voltas, Ujjivan SFB, Tata Power, Torrent Power, SAIL, Hindalco, Indigo Paints, BEML and BEL. Further, on Saturday Divis Labs, Bank of Baroda, Dodla Dairy, Indiabulls Real Estate and VRL Logistics will release quarterly earnings.

Shares of Glenmark Lifesciences will list on the bourses today. The IPO which was subscribed 44 times could list at a 10-15 per cent premium over issue price of Rs 720 per share.

Cipla posted a 24 per cent growth in profit after tax (PAT) to Rs 715 crore for the June quarter riding on strong revenue growth in the India business as well as in the active pharmaceutical ingredients (API) business.

Indiabulls Housing Finance reported a marginal 3.3 per cent growth in its profit after tax at Rs 282 crore for the first quarter ended June 30, helped by a lower cost of funds.

Now, in the primary market, investors lapped up four IPOs that are underway. Bulk of the subscription in all the four issues have come from retail investors. Devyani International’s IPO was subscribed over 6.6 times, Exxaro Tiles was subscribed 10.3 times, Krsnaa Diagnostics was subscribed 5.4 times and Windlas Biotech was subscribed 7.09 times. All issues close today