Market Ahead Podcast, June 7: Factors that could guide markets this week

The markets ended on a buoyant note last week as the benchmark indices gained nearly 1.5 per cent, with Sensex closing above 52,000 for the first time amid falling Covid cases and reopening of the economy.

Analysts believe the rally may come to a pause after three consecutive weeks of gains, but the bias would remain on the positive side. Covid-related developments, macro data and global cues will guide the market this week, amid lack of any major domestic trigger.

Meanwhile, on the earnings front, 250 companies are lined up to announce their quarterly numbers, which is likely to result in more stock-specific action. Some of the prominent names include Bata India, GAIL, Union Bank of India, SAIL, BHEL, Care Ratings and DLF.

The declining Covid-19 cases have helped the bulls gain their mojo back, with the markets scaling new highs. As Covid cases continue to recede and states gradually unlock, the sentiment is likely to remain strong. India in the last 24 hours reported nearly 1 lakh cases, the lowest in almost two months.

Market participants will track the industrial and manufacturing production data for the month of April that will be released on Friday. The industrial output in March 2021 jumped to 22.4 per cent, indicating a significant increase in industrial activity, but experts feel April may not be seen on same lines due to state wise lockdowns to control spread of virus.

Lastly, crude price movement, FII flows and rupee trajectory could also sway the market mood.

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

Asian shares firmed on Monday while the dollar wavered after the anxiously awaited May U.S. payrolls report showed the recovery on track but not so hot that it might bring forward a policy tapering from the Federal Reserve.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3% and looked to break three sessions of losses. Japan's Nikkei rose 1.0% to touch its highest in almost a month, and South Korea gained 0.7%.

Tracking positive global market sentiment, Indian markets too looked set to open on a firm note. SGX Nifty was trading 26 points higher at 15,735 around 7.45 am.

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

Union Bank of India, Central Bank of India, Mrs Bectors Food Specialities, Jubilant Ingrevia and MRF are among 31 companies slated to post their quarterly numbers today.

State-owned Punjab National Bank (PNB) on Friday posted a standalone profit of Rs 586.33 crore for the fourth quarter ended March, aided by good increase in interest It had reported a loss of Rs 697.20 crore in January-March period of 2019-20.

InterGlobe Aviation on Saturday reported a consolidated net loss of Rs 1,147.2 crore in the three months ended March, primarily due to a sharp decline in revenues amid the coronavirus pandemic. The airline, which had a fleet of 285 planes at the end of March 2021, had a net loss of Rs 870.8 crore in the year-ago period.

The Reserve Bank of India (RBI) approved the re-appointment of Vishwavir Ahuja as the Managing Director & CEO of RBL Bank, for further period of one year, with effect from June 30, 2021.

Jammu & Kashmir Bank approved raising of capital by issue of equity shares through preferential allotment to Government of Jammu & Kashmir, the promoter and majority shareholder of the bank, for an amount of up to Rs 500 crore.