Market Ahead Podcast, July 16: Key Factors That Could Drive Markets Today

On Friday, investors are expected to weigh weak global indices against strong quarterly earnings and a pickup in demand as indices hover at record highs. Early indications suggest a positive start to the day as SGX Nifty was up 30 points to 15,952 around 7:30 am.

That said, FII flows could be another factor to watch as so far during the week they have been net sellers in three of the four sessions. IT stocks should gain attention again as markets react to the results of Wipro, Cyient, Tata Elxsi and L&T Infotech early in trading.

Other primary market stocks could stay hot as Zomato closes its IPO today. The IPO received offers 4.8 times by the end of Day 2. Investment bankers said they expected the bulk of the offers to arrive on Friday. That said, the main offer of Rs 500 crore from Tatva Chintan Pharm Chem would start today. The IPO is set in a range of Rs 1,073 to 1,083 and most analysts have given the issue a “Subscribe” rating. The company raised Rs150 crore from key investors ahead of the stock sale on Thursday.

Billionaire Mukesh Ambani is looking to cash in on the IPO frenzy, as Reliance Industries prepares to launch IPOs of its retail and petroleum-to-chemicals business. At least one of the IPOs will hit the market during the current fiscal year, according to a Business Standard report.

In day-to-day trading, US stocks fell as the continued dovish attitude of Federal Reserve Chairman Jerome Powell raised concerns about the sustainability of the economic recovery. Overall, the Dow Jones Industrial Average rose 0.15%, while the S&P 500 lost 0.33% and the Nasdaq Composite 0.7%.

At the start of Asian trading, markets were mixed and US futures fell. Japan’s Topix index added 0.1 percent,

South Korea’s Kospi Index fell 0.4%, and S&P 500 and Nasdaq futures fell 0.1% each.

Oil prices, meanwhile, fell on a third day as supply issues continued to haunt the market. Brent crude fell 0.3% to $ 73.27 and is heading for a 3% decline this week after two days of steep declines.

Now, a look at the specific stock triggers that are likely to drive the market today.

HDFC Asset Management Company, Den Networks, Just Dial and L&T Finance Holdings are among 18 companies expected to release quarterly results today.

Wipro beat its first-quarter revenue forecast, which it hailed as the best ever, as it announced a 35.7% year-over-year increase in consolidated net profit to 3 243 crore rupees. Revenue increased 22.3% year-on-year to Rs 18,525 crore and increased 12.4% sequentially.

L&T Infotech announced a 19.3% year-over-year increase in its consolidated net profit to Rs 496.8 crore for the June 2021 quarter, and declared a special dividend of Rs 10 per share.

Bandhan Bank saw an 8% increase in its loans and advances to Rs 80,128 crore in the June quarter of this fiscal year, according to provisional data. Compared to the sequential order, it has decreased by 8%. Its total deposits rose 28% year-on-year to Rs 77,336 crore, while CASA deposits jumped 48%.

Sona Comstar has partnered with Israel’s IRP Nexus Group (IRP) to launch a project to jointly develop a new electric motor that would avoid the use of rare earth elements.

Cyient on Thursday announced a 41.3% year-over-year increase in its consolidated net profit to Rs 115 crore for the April-June quarter of this year.

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