Market Ahead Podcast, July 22: Key Factors That Could Drive Markets Today

A pullback rally is expected for Dalal Street as it appears to resume trading after a one-day gap, thanks to a rally in US stocks over the past two days. Wall Street indices have risen nearly 3 percent in the previous two sessions, boosted by strong corporate earnings and renewed optimism about the US economic recovery.

On Wednesday, the Dow Jones Industrial Average rose 0.83%, the S&P 500 by 0.82% and the Nasdaq Composite by 0.92%.

As expected, Asian peers followed suit, following optimism in US equities. Australia’s S & P / ASX 200 index rose 0.9%, South Korea’s Kospi index rose 0.9% while Japan was closed for holidays. The S&P 500 and Nasdaq futures contracts also traded outright.

Amid this setup, SGX Nifty was trading 105 points higher at 15,737 around 7:40 am Trading volatility is likely due to stock specific moves amid quarterly earnings and weekly derivatives expiration.

In the commodities market, Brent crude prices rose more than 4% on Wednesday to exceed the $ 72 per barrel mark. At the start of trading today, they held onto their gains as signs of stronger demand helped offset an unexpected rise in US stocks.

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

Forty-four companies, including Hindustan Unilever, Bajaj Auto, Ultratech Cement, Biocon, Hindustan Zinc, IIFL Securities, IndiaMART InterMESH and Wockhardt, will release their quarterly results today.

Brokerages forecast Bajaj Auto’s profits and revenues to more than double on an annual basis, but in quarterly (QoQ) terms the numbers are expected to come down. Profitability should be supported by a better mix, price increases and cost control measures.

As for HUL, analysts say, helped by low base effect and traction in the beauty and personal care and food and refreshments segments, major FMCG is expected to show an increase of 7-15% year-over-year first quarter profit. Meanwhile, income projections are suspicious between 11% and 21%.

The Bajaj twins – Bajaj Finance and Bajaj Finserv will also be in the spotlight after their quarterly show. Bajaj Finserv reported a more than 31% year-on-year decline in its consolidated net profit to Rs 833 crore for the first quarter ended June 2021. Meanwhile, Bajaj Finance recorded a 3% year-on-year decline in its net profit at Rs 843 crore for the same quarter.

The Reserve Bank of India authorized IDFC to leave IDFC First Bank after the expiration of the 5-year blocking period.

The promoter and promoter group of Allcargo Logistics has announced a plan to acquire all the shares held by public shareholders and to voluntarily delist from the stock exchanges by making a delisting offer under the delisting regulations of the stock market regulator SEBI.

Jubilant FoodWorks reported a net profit of Rs 62.6 crore for the quarter ended in June, compared to a net loss of Rs 72.6 crore in the quarter of last year. The company’s operating income increased 131% in the quarter to Rs 879 crore.

Finally, another new-age tech company is looking to reach the primary market to raise funds. Policybazzar plans to increase Rs 6,500 crore. PB Fintech, the parent company of Policybazaar in a regulatory case approved a resolution to increase said amount through a new equity issue. In addition, Zomato shares are expected to be allotted to investors today and some media are suggesting the company may be listed on Friday versus Monday expected earlier.

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