Market Ahead Podcast, July 2: Top factors that could guide markets today

Indian markets have been consolidating since the last four sessions amid worries over the potential risk from Covid third wave, commodity price-led inflation and in absence of any fresh trigger. Early indications suggest the trend might continue in today's session even as the global setup remains largely positive.

At 7.25 am, Nifty futures on Singapore Exchange traded 8 points higher at 15,735, indicating a flat-to-positive start for the benchmark indices.

Besides, investors will continue to watch out for the OPEC+ meet outcome that was delayed to today after the United Arab Emirates blocked a plan for an immediate reduction in supply cuts. Analysts see a risk of inflationary spike in prices if the group can’t come to an agreement. Ahead of the decision, Brent was trading flat at $75.85 a barrel.

On the global markets front, another batch of strong economic reports added fuel to the rotation into stocks that stand to benefit the most from a US reopening. The S&P 500 rose for a sixth straight day -- the longest winning streak since February. Investors will watch out for the US jobs report due on Friday.

Overall, the Dow Jones Industrial Average rose 0.38%, the S&P 500 gained 0.52% and the Nasdaq Composite added 0.13%.

In Asia, stocks were mixed Friday as traders weighed a rally in U.S. shares to a record and positive Covid-19 vaccine developments against the regional spread of the delta virus strain.

Japan’s Topix index added 0.8%, Australia’s S&P/ASX 200 index rose 0.3%, South Korea’s Kospi index increased 0.2% and China’s Shanghai Composite index shed 1.2%.

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

Motorcycle maker Royal Enfield, part of Eicher Motors, said its total sales increased 13% YoY to 43,048 units in June.

Hero MotoCorp recorded 3.8% YoY growth in its total sales at 4,69,160 units in June 2021, as against 4,51,983 units in June 2020.

Vodafone Idea (Vi) has appro­ached the government to seek one-year moratorium on payment of spectrum instalment of over Rs 8,200 crore, due in April 2022, suggest reports.

Bank stocks are likely to be in focus after RBI's Financial Stability Report said the gross non-performing assets (GNPAs) ratio of banks may rise to 9.8 per cent by March 2022, under a baseline scenario, from 7.48 per cent in March 2021. It, however, added that banks have sufficient capital, both at the aggregate and individual level, even under stress.

NMDC reported a 34 per cent YoY increase in its output to 8.89 million tonne in the first quarter of the current fiscal.