Market Ahead Podcast, July 15: Top factors that could guide markets today

Benchmark indices could be in for a volatile day today amid mixed global cues, quarterly earnings and weekly derivatives expiry. Investors would likely react to Infosys' Q1 numbers in early trade while keeping a close watch on results by other IT major Wipro. Fed Chairman Jerome Powell's comments that more US economic progress is needed before stimulus can be dialled back could lend support to sentiment.

At 7.30 am, SGX Nifty was trading15 points higher at 15,879.

In the overnight session, US stocks ended mixed, with S&P 500 briefly hitting an intra-day record in a choppy session. Overall, the Dow Jones Industrial Average rose 0.13 per cent while the S&P 500 gained 0.12 per cent and the Nasdaq Composite dropped 0.22 per cent.

In Asia, investors were on the sidelines as they awaited Chinese data and digested Powell's comments. Japan’s Topix index lost 0.4 per cent, Australia’s S&P/ASX 200 index rose 0.1 per cent and South Korea’s Kospi index added 0.2 per cent.

Oil prices, meanwhile, extended decline after a 2 per cent crash on Wednesday. Brent crude futures for September dropped 0.6 per cent to $74.32 a barrel while US West Texas Intermediate (WTI) crude for August was at $72.61 a barrel, down 0.7 per cent.

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

A total of 22 companies, including Wipro, Angel Broking, Tata Elxsi, L&T Infotech and Cyient are slated to post their quarterly numbers today.

Analysts believe Wipro's net profit could jump 14-19 per cent YoY in Q1FY22 on 17-19 per cent growth in topline. A contraction in EBIT (earnings before interest and tax) margins sequentially is a given, which in turn would drive PAT sequentially, they said.

Infosys may have missed Street’s net profit expectations for the quarter ended June 2021, but raised its revenue growth guidance for FY22 to 14-16 per cent from an earlier estimate of 12-14 per cent. Infosys, meanwhile, reported a consolidated net profit of Rs 5,195 crore, up 22.7 per cent year-on-year (YoY) and 2.3 per cent sequentially.

Adani Transmission has got shareholders' nod to raise up to Rs 2,500 crore in one or more tranches through the issuance of equity shares, securities and debentures.

L&T Technology Services (LTTS) reported an 84 per cent YoY jump in its June quarter net at Rs 216.2 crore, largely on widening margins. Its overall revenue increased by 19.42 per cent YoY to Rs 1,562.6 crore for the reporting quarter.

ICRA has assigned a long-term rating of AA- (stable) to Rossari Biotech's fund-based working capital facilities and unallocated limit facilities. A short-term rating of A1+ has been assigned to its non-fund based limit facilities.

Lastly, a look at the action in the primary market.

The retail investors flocked to the IPO mart in hoards on Wednesday as Zomato's IPO kicked off. The 10 per cent quota reserved for them was subscribed 2.7 times at the end of Day 1, while the IPO overall received 1.05 times bids. The QIB and HNI categories were subscribed 98 per cent and 13 per cent, respectively. The issue closes for subscription on Friday.