Market Ahead Podcast, July 8: Top factors that could guide markets today

US Fed minutes, global trends, and Q1 earnings season, which will kick off today with TCS' results, are likely to guide the market trajectory on Thursday. While expectations from the IT bellwether's Q1 numbers remain robust, investors will mull over the Fed minutes for signs of tapering. Stock-specific news flow and weekly F&O expiry could keep indices volatile. At 7.45 am, SGX Nifty was trading 64 points lower at 15,824.

In the overnight session, US stocks ended higher and the S&P 500 and Nasdaq notched record closing highs after minutes from the last Federal Reserve meeting indicated officials may not be ready yet to move on tightening policy.

Overall, the Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.34% and the Nasdaq Composite added 0.01%.

The trend in Asian markets was weak, as equities dipped in Japan, where another virus state of emergency for Tokyo looks imminent. Hong Kong and China opened lower.

Japan’s Topix index fell 0.2%, Australia’s S&P/ASX 200 index rose 0.5%, South Korea’s Kospi index shed 0.3% and Hong Kong’s Hang Seng Index declined 0.8%.

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

TCS, Gammon Infrastructure Projects, and Shyam Metalics and Energy will release their quarterly numbers on Thursday.

Analysts expect TCS to post PAT growth of 30-36 per cent and revenue growth of 19-20 per cent, on a yearly basis, led by a low base of last year, strong seasonality, digital traction and ramp-up of deals.

Tata Motors stock will be in focus after Jaguar Land Rover assured the investors that it sees a strong rebound in overall volumes and cash flow in the second half of the year although the company stayed clear of giving any fresh guidance FY22.

Bajaj Healthcare has received license from DRDO to manufacture and market '2-Deoxy-D-Glucose' (2-DG), used in control and treatment of COVID-19.

PNB Housing Finance on Wednesday said its promoter Punjab National Bank has asked it to consider restructuring the proposed Rs 4,000 crore capital infusion deal led by US-based Carlyle group.

Lastly, a look at the primary market.

The initial public offer of Clean Science and Technology was subscribed 1.70 times on Wednesday, the first day of subscription while G R Infraprojects was subscribed 2.28 times. Both issues close on Friday.

That apart, Zomato could launch its initial share sale earlier than expected, accroding to a BS report. Food delivery company’s Rs 9,375-crore IPO is likely to open for subscription on July 14, said investment banking sources.