Market Ahead Podcast, May 25: Top factors that could guide markets today

Buoyed by firm cues from global markets, stock market bulls look poised to extend their winning spree to a third day today. Meanwhile, a further decline in Covid cases in the country could further support the sentiment. At 7.20 am, SGX Nifty was ruling 91 points higher at 15,292, indicating a solid start for the benchmark indices. 

Stock specific action and quarterly earnings could further sway market mood while volatility may remain hightened ahead of May F&O expiry.

In the last 24 hours, India's fresh Covid cases stood at 1.95 lakh. It is the lowest level of cases in the last 41 days. India had reported 2.22 lakh cases on Monday. With a sharp decline in cases, investors are positive on soon uplifting of the restrictions by several states.

Meanwhile, on the global market front, technology shares led gains in U.S. stocks as inflation anxiety appeared to be easing. Ten out of the 11 groups in the S&P 500 rose, while the Nasdaq 100 outperformed major equity benchmarks amid a rally in giants such as Apple Inc., Amazon.com Inc. and Tesla Inc.

The Dow Jones Industrial Average rose 0.54%, the S&P 500 gained 0.99% and the Nasdaq Composite added 1.41%.

Asian markets too trended higher tracking strong overnight action on Wall Street. Japan’s Topix index climbed 0.2%, Australia’s S&P/ASX 200 index gained 0.6%, South Korea’s Kospi index added 0.7% and Hong Kong’s Hang Seng index rose 0.7%.

In the oil market, prices were steady on Tuesday, holding around one-week highs after jumping more than 3% the previous session as prospects of an early return of oil exporter Iran to international crude markets lessoned.

Brent crude futures were down 6 cents at $68.40, having jumped 3% on Monday. U.S. West Texas Intermediate futures fell 8 cents to $65.97 a barrel, after gaining 3.9% the previous session.

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

A total of 68 companies are slated to post their March quarter results today, including Alkem Labs, AstraZeneca Pharma India, Stove Kraft, Emami, Thermax and VIP Industries.

Grasim Industries reported a 13.3 per cent YoY rise in its consolidated net profit to Rs 2,616.64 crore for the fourth quarter ended March 31. Its revenue from operations during January-March 2021 jumped 26.1 per cent YoY to Rs 24,398.92 crore.

The committee of creditors of DHFL has challenged the National Company Law Tribunal (NCLT) order directing the lenders to consider the offer by the debt-ridden mortgage firm's erstwhile promoter Kapil Wadhawan.

Infosys co-founder S D Shibulal on Monday purchased shares worth Rs 100 crore of the IT major through an open market transaction. Shibulal bought over 7.45 lakh shares at an average price of Rs 1,342.05 per share, valuing the transaction at Rs 100 crore, BSE block deal data showed.