Market Ahead Podcast, July 16: Top factors that could guide markets today

Investors on Friday are likely to weigh weak global cues against strong quarterly earnings and recovery in demand as indices hover at record high levels. Early indications suggest a positive start for the day as SGX Nifty was up 30 points at 15,952 around 7.30 am.

That said, FII flows could be another factor worth watching out for as so far during the week, they have been net sellers in three of four sessions. IT stocks are again likely to hog limelight as markets would react to results by Wipro, Cyient, Tata Elxsi and L&T Infotech in early trade.

Further primary market action could remain hot as Zomato closes its IPO today. The IPO has received 4.8 times bids at the end of Day 2.  Investment bankers said they expect the bulk of the bids to come on Friday. That said, Rs 500 crore primary offer by Tatva Chintan Pharm Chem would kick off today. The IPO is pried in Rs 1,073 -1,083 range and most analysts have assigned 'Subscribe' rating to the issue. The comapany garnered Rs150 crore from anchor investors ahead of share sale on Thursday.

Billionaire Mukesh Ambani looks to cash in on the IPO frenzy, as Reliance Industries is preparing to launch IPOs of its retail and oil to chemicals business. At least one of the IPOs will hit the market in the current fiscal year, as per a Business Standard report.

In overnight trade, US stocks declined as Federal Reserve Chair Jerome Powell’s persistent dovishness raises concern about the sustainability of the economic recovery. Overall, Dow Jones Industrial Average rose 0.15 per cent while the S&P 500 lost 0.33 per cent and Nasdaq Composite 0.7 per cent.

In early Asian trade, markets were mixed and US futures declined. Japan’s Topix index added 0.1 per cent,

South Korea’s Kospi index retreated 0.4 per cent and both S&P 500 and Nasdaq futures shed 0.1 per cent each.

Oil prices, meanwhile, fell a third day as supply concerns continued to haunt the market. Brent crude was down 0.3 per cent at $73.27 and is heading for a 3% decline this week after two days of heavy declines.

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

HDFC Asset Management Company, Den Networks, Just Dial and L&T Finance Holdings are among 18 companies that are slated to post their quarterly results today.

Wipro surpassed its revenue guidance for the first quarter, which it hailed as its best ever, as it reported a 35.7 per cent year-on-year (YoY) increase in consolidated net profit to Rs 3,243 crore. Revenue grew 22.3 per cent YoY to Rs 18,525 crore and was up 12.4 per cent sequentially.

L&T Infotech reported a 19.3 per cent YoY rise in consolidated net profit to Rs 496.8 crore for the June 2021 quarter, and declared a special dividend of Rs 10 per share.

Bandhan Bank witnessed an 8 per cent rise in its loans and advances to Rs 80,128 crore in the June quarter this fiscal, as per provisional data. Compared sequentially, it was down by 8 per cent. Its total deposits grew by 28 per cent YoY to Rs 77,336 crore, while the CASA deposits jumped by 48 per cent.

Sona Comstar has joined hands with Israel's IRP Nexus Group (IRP) to initiate a project to co-develop a new electric motor that would avoid usage of rare earth elements.

Cyient on Thursday reported a 41.3 per cent YoY rise in consolidated net profit to Rs 115 crore for the April-June quarter of this year.