Market Ahead Podcast, Oct 5: Top factors that could guide markets today

Market bulls staged a smart comeback on Dalal Street on Monday, recovering from last week’s bear drubbing.

Investors ventured into board-based buying amid expectation of better Q2 earnings backed by recovery in economic activity, receding Covid-19 cases, and in anticipation of a better outlook from festival demand.

The S&P BSE Sensex soared 534 points to settle the session at 59,299 levels while the broader Nifty50 closed at 17,691, up 159 points. Both the indices were up 0.9 per cent each.

Among top contributors, shares of Reliance Industries contributed nearly a fifth of total gains, followed by ICICI Bank, Infosys, Bajaj twins, TCS, SBI, and Axis Bank.

In the broader market space, the BSE MidCap and SmallCap indices closed 1.5 per cent and 1.7 per cent higher, respectively. The latter had hit a record high of 28,686 levels in the intra-day trade yesterday.

As regards today, the markets are expected to exhibit a range-bound movement amid lack of domestic and global triggers.

Tech charts suggest it is crucial for the 50-share index to trade above the 17,550-17,600 in the short-term.

A sustained buying above these levels can push the index towards 18,000, charts show. Further, technical indicators indicate a volatile movement in the market between 17,600 and 18,000.

The Reserve Bank of India on Monday superseded the Board of Directors of SREI Infrastructure Finance Limited and SREI Equipment Finance Limited, owing to governance concerns and defaults by the aforesaid companies in meeting their various payment obligations.

Among specific stocks, oil-linked stocks such as those of oil marketing companies, oil exploration, paints, and aviation firms will be on investor radar post OPEC+ meeting’s outcome.

Besides, shares of chemical companies may also hog the limelight today amid reports that power outage in China may impact chemical output and result in a sharp rise in prices of basic chemicals in India.

Movement in Zee Entertainment Enterprises will also be eyed by market participants amid reports of Invesco pressing yet again for an EGM. During the hearing in NCLT, Invesco has reportedly accused Zee of not sharing contacts of retail investors and has said that Zee's argument on EGM requisition being in non-compliance with SEBI regulations are irrelevant.

That apart, PDS Multinational Fashions has completed the acquisition of a 50-per cent equity stake in Yellow Octopus Fashion Limited.

Lastly, shares of M&M Financial Services will react to the company’s Q2 business update, released post market-hours on Monday. According to the company’s exchange filing, total disbursement in Q2FY22 stood at Rs 6,450 crore, up 60% YoY.

Further, its collection efficiency hit 100% in September 2021, up from 95% and 97% in July and August, respectively.