Market Ahead Podcast, July 12: Top factors that could guide markets today

Investors on Dalal Street will take cues from earnings announcements, macroeconomic data, and global trends this week, said analysts. Besides, monsoon progress and updates on the new Covid variant will be closely monitored by them.

After a volatile last week, wherein markets traded within a range and closed marginally lower, analysts see further consolidation ahead and expect volatility to inch higher on the stock-specific front as well with the beginning of the earnings season.

Leading IT companies Infosys and Wipro and other players such as Mindtree, Tata Elxsi and HDFC AMC are among 75 companies that will announce their financial results this week. Apart from these, some other names include Dodla Dairy, L&T Finance Holdings, Steel Strips Wheels, Angel Broking and Den Networks.

Besides earnings, markets will track macroeconomic data this week. The IIP and CPI Inflation will be released on Monday and WPI inflation on Wednesday.

While India's Covid caseload is on a downhill, concerns over the Delta and Delta plus variants persist across the globe, which resulted in a global sell-off last week. Investors will also keep a close watch on that front amid concerns that the spread of the variant could dent global economic recovery.

Apart from the action in the secondary market, the primary market will remain abuzz as Zomato's Rs 9,350 crore initial public offer will hit Street this week on July 14. The IPO is priced in the band of Rs 72-76 and the shares were commanding a premium of 15-18 per cent in the grey market as against 25 per cent earlier.

Lastly, oil price movement, rupee's trajectory, FPI flows along with Federal Reserve Chair Jerome Powell's semi-annual Monetary Policy Report and June US consumer price index can further sway market mood.

And now, let's take a look at the trade setup for today.

Asian stocks started the week higher after their US peers chalked fresh records on Friday. Shares in Japan outperformed and Hong Kong opened higher. China rose after the central bank cut the amount of cash most banks must hold in reserve to buttress a slowing economic expansion.

Overall, Jopix index climbed 2.2%, Australia’s S&P/ASX 200 Index rose 0.8%, Kospi index gained 0.9% and Hang Seng Index gained 1.1%.

The global trends set the stage for a strong India opening with SGX Nifty trading 68 points higher at 15,796 around 7.25 am.

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

A total of 11 companies, including HFCL, Steel Strips Wheels and Welcure Drugs & Pharmaceuticals will release quarterly earnings today.

Avenue Supermarts, which owns and operates retail chain DMart, on Saturday reported over two-fold jump in consolidated net profit at Rs 95.36 crore for June quarter 2021-22. The company had posted a net profit of Rs 40.08 crore in April-June period a year ago.

Equitas Holdings, the promoter of Equitas Small Finance Bank (SFB), on Saturday said the bank has received Reserve Bank of India's (RBI) nod to apply for amalgamation of the promoter into itself.

SJVN has signed a pact with the Investment Board of Nepal (IBN) to develop the 679-megawatt (MW) Lower Arun Hydro Electric Project in the country.

Federal Bank has received approval from the RBI to re-appoint Shyam Srinivasan as its MD and CEO for three years.