Market Ahead Podcast, June 28: Factors that could guide markets this week

Macroeconomic data, the pace of vaccination, auto sales and global trends would be the major drivers for the domestic equity markets this week, analysts said. Besides, the progress of the monsoon will also remain on investor radar.

The benchmark indices had ended the eventful week over 1% higher and analysts remain cautiously optimistic on further upmove in the market, although a third wave of Covid can dent sentiments, they say.

While the number of Covid cases in India is on a downtrend, concerns about a new Covid variant loom. India in the last 24 hours reported cases a little over 50,000. The pace of vaccination in the country, too, has picked up the pace with some 4 crore jabs administered last week. Investors will keep a close watch on the vaccination pace and Covid cases going ahead.

On the macro front, the print for manufacturing activity PMI is scheduled for July 1 which would give investors a fair idea around the revival of ground-level sentiment. That apart, investors will also eye auto sales figure which will start pouring in from the same day.

India Inc, meanwhile, will enter the last leg of earnings season this week, with over 1700 companies slated to post their quarterly numbers. SpiceJet, Hindustan Motors, Suzlon Energy, Rail Vikas Nigam, Ruchi Soya Industries, NBCC (India), NALCO and Hindustan Aeronautics are among the companies which are going to announce their quarterly earnings this week.

Furthermore, two companies will list on the bourses on June 28, namely Dodla Dairy and Krishna Institute of Medical Sciences. The two IPOs that ran between June 16-18 were subscribed 46 times and 4 times, respectively.

Lastly, investors will also track oil price movement, rupee's trajectory and FII flows for further cues.

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

Asia stocks were steady with investors weighing the pace of economic recovery against more potent Covid-19 strains and central banks mulling stimulus reductions.

Japan's Topix index rose 0.1%, Australia’s S&P/ASX 200 Index fell 0.4% and Kospi index was little changed.

Amid this backdrop, early indications suggested a positive start for the benchmark indices with SGX Nifty ruling 31 points higher at 15,902.

A look at the stock-specific triggers that are likely to guide the market today.

More than 300 companies are slated to post their quarterly numbers today including NALCO, Future Lifestyle, Zee Media, GIC Housing Finance and NLC India.

Shareholders of InterGlobe Aviation, parent of airline IndiGo, have approved a proposal to raise up to Rs 3,000 crore. The funds would be raised through the Qualified Institutional Placement route.

State-owned power producer SJVN Ltd on Saturday posted a 55 per cent YoY jump in its consolidated profit after tax (PAT) at Rs 619.92 crore during the quarter ended March 31, 2021.

Private sector IndusInd Bank has acquired over 70 lakh shares in tea company Mcleod Russel after invoking pledged shares of the company to recover its dues.

DLF has sold 551 luxury independent floors in Gurugram since October last year for over Rs 1,200 crore and is planning to launch more such residential units this fiscal to encash strong demand, a senior company official said on Sunday.