Market Ahead Podcast, July 19: Top factors that could guide markets today

After scaling fresh record highs in the week gone by, markets could be in for a volatile ride in the truncated week. Quarterly earnings outcome and management commentary on recovery amid absence of any macroeconomic data will largely decide market momentum. Analysts expect sector-specific movement to continue amid the ongoing results season. Besides, global cues, FII flow trends and updates on the Covid front will also be on investor radar.

Equity markets would remain closed on Wednesday for Bakri-Id.

On the earnings front, some 200 corporates are poised to post their quarterly numbers. Some of the prominent names are ACC, HCL Technologies, HDFC Life Insurance Company, Asian Paints, Bajaj Finance, ICICI Prudential Life Insurance Company, Bajaj Finserv, Bajaj Auto, Hindustan Unilever, UltraTech Cement, Ambuja Cements, JSW Steel, Reliance Industries, ICICI Bank and ITC.

Apart from earnings, FIIs' investment trends would be tracked by investors. After a strong comeback in June, they have again started selling with markets at higher levels. They have pulled out Rs 4,515 crore from the equities segment in the first half of July. Going ahead, FII flows could keep market volatile. Any major pullback in buying could kick off a correction, especially in the large-cap space.

There will be no dearth of action in the primary market as IPO by Tatva Chintan Pharma Chem is open till July 20. The issue sailed through on Day 1. And shares of Clean Science and Technology and GR Infraprojects would list on bourses on Monday. Both issues are commanding a strong premium of over 55 per cent in the grey market, signalling a strong listing. Besides, shares of Zomato will also be allotted this week.

Lastly, oil price movement amid agreement between Opec+ ministers to boost supply, rupee's trajectory, Bank of England's rate decision and global cues can also sway market moves this week.

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

Asian stocks and US futures fell early on concerns about the impact of elevated inflation and Covid-19 outbreaks on economic prospects.

Japan’s Topix index fell 0.9 per cent, Australia’s S&P/ASX 200 index dropped 1.2 per cent and South Korea’s Kospi index slid 0.9 per cent. S&P 500 futures slipped 0.3 per cent and Nasdaq 100 futures fell 0.2 per cent.

The global rout looks set to extend to India too with SGX Nifty trading 220 points or 1.37 per cent lower at 15,717 around 7.25 am.

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

ACC, HCL Technologies, HDFC Life, Indian Bank and Mastek are among 25 firms slated to post their June quarter numbers today.

HCL Tech's Q1 performance is likely to be impacted due to supply-side challenges amid the second Covid-19 wave. The net profit could rise in the range of 6-11 per cent year-on-year on a 14 per cent growth in revenue (rupee terms).  The company could give a specific guidance range for FY22 at around 12–13 per cent - moving away from a generic 'double-digit' projection mentioned earlier, according to Edelweiss Securities.

HDFC Bank reported a 14.36 per cent growth in its consolidated net profit at Rs 7,922 crore as against Rs 6,927 crore posted in the corresponding quarter a year ago. Although, the June quarter profit declined when compared with the preceding March quarter's Rs 8,434 crore.

Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries said it will acquire 40.95 per cent stake in Just Dial for Rs 3,497 crore, bolstering its digital play in the rapidly growing online commerce market in India.

Recovery Officer Debt Recovery Tribunal on Friday offloaded shares worth over Rs 716 crore in United Spirits Ltd, through an open market transaction.

Shares of telecom service providers Bharti Airtel and Vodafone Idea would hog the limelight in Monday's session as the Supreme Court is scheduled to hear the AGR case later in the day.