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

Ahead of the US Fed outcome later today and amid weak cues from global peers, Indian benchmark indices look set to take a step back from all-time high levels and open with marginal cuts. Elevated crude oil prices are also likely to keep the bourses under pressure. That said, attention and funds have been diverted to the four IPOs lined up this week, which is reflected in lower volumes in the secondary markets. 

While the overall market setup remains strong, some hesitation at high levels is resulting in rangebound trade, said analysts. A positive Fed outcome can remedy this situation and drive indices higher going.

At 7.30 am, SGX Nifty was trading 24 points lower at 15,830.

Meanwhile, in the overnight session, Wall Street's main indices closed lower as data showing stronger inflation and weaker US retail sales in May spooked already-jittery investors awaiting the results of the Federal Reserve's latest policy meeting. The Dow Jones Industrial Average fell 0.27%, the S&P 500 lost 0.20% and the Nasdaq Composite dropped 0.71%.

Most Asian markets, too, traded on a tepid note. Japan's Nikkei shed 0.3%, Hong Kong's Hang Seng 0.25% although South Korea's Kospi added 0.56%.

In the oil markets, prices rallied to the highest level since 2018 after data showed a substantial draw in US crude stockpiles, adding to evidence of a tightening market as economies reopen and top traders predict further gains. West Texas Intermediate climbed 0.6% after Tuesday’s 1.8% surge to $72.6 per barrel, while Brent closed in on $75 a barrel as futures traded 0.9% higher at $74.71 per barrel.

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

RITES, Asahi India Glass, Nureca, Somany Ceramics, and Welspun Enterprises are among 32 companies slated to release their quarterly earnings today.

Dr Reddy's Laboratories on Tuesday said it has been asked to pay $46.25 million to Australia-based Hatchtech Pty Ltd as part of an asset purchase agreement between the two parties in 2015.

ICICI Bank has raised over Rs 2,827 crore by issuing bonds on a private placement basis.

Mortgage financier LIC Housing Finance on Tuesday reported a 5 per cent YoY decline in its profit after tax at Rs 398.92 crore in the quarter ended in March 2021 due to higher provisioning for bad loans.

Jubilant Pharmova said its subsidiary has inked a pact with US-based Ocugen Inc to manufacture COVID-19 vaccine Covaxin for the US and Canadian markets.

Lastly, an update on the primary markets.

IPOs by Dodla Dairy and Krishna Institute of Medical Sciences will open for subscription today. Largely analysts have a Subscribe rating on both these issues. Dodla Dairy raised Rs 156 crore from anchor investors on Tuesday while Krishna garnered Rs 956 crore ahead of its initial share sale.

That apart, the IPO of Shyam Metalics and Energy was subscribed 3.65, while that of Sona BLW Precision Forgings garnered 27 per cent subscription on Day 2. Both these issues will close today.