Market Ahead Podcast, June 30: Top factors that could guide markets today

By Administrator_India

Capital Sands

Early indications suggest the bulls are likely to return to Street after a two-day hiatus as the global setup remains positive, while approval by the Drugs Controller General of India (DCGI) to a fourth Covid vaccine, the one by Moderna could also aid sentiments.

At 7.25 am, Nifty futures on the Singapore Exchange traded 45 points higher at 15,832, indicating a strong start for the benchmark indices.

Meanwhile, in overnight trade, the S&P 500 and the Nasdaq both registered record closing highs, lifted by Apple Inc and other technology stocks after an upbeat consumer confidence report. Dow closed little changed after a session marked by lighter than average volume.

Overall, the Dow Jones Industrial Average rose 0.03%, the S&P 500 also gained 0.03% and the Nasdaq Composite added 0.19%.

Asian stocks rose in early trade after US shares closed at a record on economic optimism and signs that vaccines can counter a highly infectious coronavirus strain.

Japan’s Topix index increased 0.1%, Australia’s S&P/ASX 200 Index gained 0.6%, South Korea’s Kospi index rose 0.4% and Hong Kong’s Hang Seng Index climbed 0.3%.

In other news, market regulator Sebi in a bid to strenghten corporate governance practices at India Inc has cleared various amendments to rules governing the appointment, re-appointment and removal of independent directors — a move that will also provide more say for public shareholders in the appointment and re-appointment of such people.

That apart, it has also approved amendment to mutual fund rules, which may require fund houses to invest more in their new fund offerings depending on risk level to ensure more skin-in-the-game. Also, to deepen the market for REITs and InvITs, Sebi decided to reduce the minimum subscription amount and trading lot size for such publicly issued emerging investment vehicles.

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

More than 900 companies will release their quarterly earnings today, including SpiceJet, Vodafone Idea, Dish TV India, IRCON International, SREI Infrastructure Finance and VIP Clothing.

Voda Idea is likely to post a narrowing of losses in Q4FY21 even though subscriber losses and zero IUC regime may dent the top-line. Besides, its average revenue per user (ARPU) is also seen declining around 10 per cent year-on-year (YoY).

The DCGI has granted permission to Cipla to import Moderna’s Covid-19 vaccine. Although Cipla clarified that it is supporting Moderna with the regulatory approval and import of vaccines to be donated to India and there is no agreement on commercial supplies at this stage.

Reliance Industries (RIL) and Abu Dhabi National Oil Company (ADNOC) have signed an agreement to set up a new petrochemical complex in Ruwais, Abu Dhabi, to produce chlor-alkali, ethylene dichloride, and polyvinyl chloride (PVC).

Indiabulls Housing Finance on Tuesday said its board has approved a proposal to raise over Rs 7,000 crore through various means.

Indian Railway Catering and Tourism Corporation (IRCTC) on Tuesday reported a 23 per cent YoY decline in its profit after tax to Rs 103.78 crore for the March 2021 quarter.