Market Ahead Podcast, July 9: Top factors that could guide markets today

Investors on Dalal Street would first react to the Q1 performance by IT bellwether Tata Consultancy Services (TCS) in the early Friday trade, which was below Street expectations. Besides, the selloff in global equities might continue to weigh on sentiment.

Early indications suggest the markets may be in for another day of thrashing as SGX Nifty traded 85 points lower at 15,624 around 7.45 am. That said, a lot of stock-specific action amid earnings could also be seen.

Globally, Wall Street lost ground on Thursday, with the S&P 500 and the Nasdaq pulling back from record closing highs in a broad sell-off driven by uncertainties surrounding the pace of the US economic recovery.

The Dow Jones Industrial Average fell 0.75%, the S&P 500 lost 0.86% and the Nasdaq Composite dropped 0.72%.

Asian shares followed US equities lower on Friday on growing anxiety that the spread of Covid-19 variants could hamper the global economic recovery.

Japan’s Topix index retreated 1.8%, Australia’s S&P/ASX 200 index lost 1.3% and South Korea’s Kospi index shed 1.6%.

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

Delta Corp, Excel Realty N Infra, K&R Rail Engineering and Vikas Lifecare are among firms that will release quarterly earnings today. While Avenue Supermarts, PTC Industries and Gujarat Hotels will post Q1 numbers on Friday.

TCS' Q1 FY22 performance missed estimates even as the net profit jumped 28.5% YoY to Rs 9,008 crore and revenue rose 18.5% YoY to Rs 45,411 crore. According to Bloomberg poll, analysts were estimating revenue of Rs 45,767.5 crore and net profit of Rs 9,391.9 crore for the quarter gone by.

Bharat Dynamics signed a contract worth about Rs 499 crore with Ministry of Defence for manufacture and supply of Akash Missiles to the Indian Air Force.

CARE upgraded long term credit rating for Tata Steel to AA+ from AA and the outlook to Stable from Negative.

Union Bank of India said it has accepted bids to raise up to Rs 1,150 crore by issuing Basel III-compliant bonds.

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

The IPOs by Clean Science and Technology and GR Infraprojects were subscribed 4.28 times and 5.75 times, respectively on Day 2 of the bidding process. Both issues close for subscription today.