Market Ahead Podcast, Sep 8: Top factors that could guide markets today

The tussle between bulls and bears is keeping investors on tenterhooks as bargain hunting at lower levels and profit-booking at higher levels in keeping markets volatile.

On Tuesday, the BSE Sensex ended at 58,279, down 17 points while the broader Nifty50 closed at 17,362, down 16 points. Both the indices had hit a fresh peak of 58,553 and 17,436.50, respectively, in the intra-day trade yesterday.

The market breadth favoured sellers as stocks of around 1,800 companies fell on the BSE relative to stocks of 1,300 companies that rose.

Analysts believe the trend is likely to continue as no major domestic or global events will keep investors focused on stock-specific news.

According to ICICI Securities, IT, capital goods, and CRAMs oriented pharmaceuticals/chemical space look structurally positive amid the volatility.

Among individual stocks, IRCTC could yet again catch investor fancy as there are no signs of the rally abating in the stock. The scrip has zoomed 15% so far this week and has entered the elite club of 100-most valuable companies in India with a market cap of Rs 52,722 crore. 

That apart, investors holding Vodafone Idea too saw their wealth swell on the bourses on Tuesday as the stock zoomed nearly 15% after Vi chairperson Himanshu Kapania said in a letter to shareholders that the company is hopeful of government support in generating reasonable returns on its investment.

Shares from the telecom space will continue to be on investor radar today as the Cabinet Committee on Economics Affairs is expected to meet today where, as per media reports, the government could mull a relief package for the sector. 

Besides, reports further suggest Centre could also consider the PLI scheme for the textiles sector. This could keep related stocks volatile on Wednesday.

Shares of InterGlobe Aviation, SpiceJet and other airlines may also trade choppy today as Minister of Civil Aviation Jyotiraditya Scindia is slated to hold a press conference later in the day. 

Further, Gujarat State Petronet may also hog the limelight today as Anil Mukim, chairman and managing director of the company, has resigned from the post.