Market Ahead, January 25: Top factors that could guide markets this week

The plan to revive the state-owned telecom companies BSNL and MTNL by merging the two entities is set to be shelved after almost two decades of deliberations on the matter


Market Ahead | Markets

BS Web Team  | 
New Delhi 

Domestic markets took a breather last week and ended marginally lower amid volatility. The historic week for BSE Sensex wherein it scaled 50,000 did not end well as it shed 156 points in the five days ended Friday. Its NSE counterpart Nifty, meanwhile, lost 62 points.

Going into the holiday-shortened week, markets may continue to remain volatile amid monthly derivatives expiry, quarterly earnings and the upcoming Union Budget. Dalal Street would remain closed for trading on Tuesday for the Republic Day holiday.

When the markets will open today, they’d react to the December quarter results announced by index heavyweight Reliance Industries which saw its profit jump 12.5 per cent YoY to Rs 13,101 crore during the said quarter.

Besides that, some 375 companies are set to announce their December quarter numbers this week, such as Kotak Mahindra Bank, Larsen & Toubro, Axis Bank, HUL, Maruti Suzuki, Dr Reddy’s Labs, IndusInd Bank, IOC, Sun Pharma, Tata Motors, Tech Mahindra, Vedanta and ICICI Bank to name a few.

Meanwhile, on the global front, the Fed monetary policy outcome is due this week. Investors are hoping Fed Chair Jerome Powell will provide reassurance after Wednesday’s policy meeting that $120 billion of monthly bond purchases won’t be tapered any time soon. On the macroeconomic front, investors would also eye the US jobless claims and GDP data, slated to be out on January 28.

That apart, investors will closely track the spread of Covid infections and the deployment of the vaccine. China also started reporting new strain of Covid-19 cases and as a result, imposed partial lockdown in Beijing last week. Meanwhile, the US and several European countries continued to struggle with the Covid-19 crisis.

However, in India, the situation is relatively stable with vaccine drive going smoothly and recovery rate at 96.81 per cent.

Moreover, global cues and movement in crude oil prices, rupee and FII inflows would also influence market sentiment.

Lastly, apart from mainboard indices, action in the primary market would also remain high. Home First Finance IPO that has been subscribed 2.2 times so far will remain open for one more day today. Besides, Stove Kraft’s Rs 413-crore share sale will open for subscription today. The price band for the offer has been fixed at Rs 384-385 per share.

And now, let’s take a look at the trade setup for today

Asian shares were on the defensive on Monday as rising Covid-19 cases and doubts over the ability of vaccine makers to supply the promised doses on time soured risk appetite. MSCI’s broadest index of Asia-Pacific shares outside Japan was unchanged, Japan’s Nikkei was down 0.1% and Australian shares were up 0.2%.

However, Indian indices looked set for a gap-up start, contrary to the global mood. Nifty futures of Singapore Exchange were up 107 points at 7.40 am.

On the stock-specific front, Larsen & Toubro, Kotak Mahindra Bank, Aarti Drugs, APL Apollo Tubes, Astec Lifesciences, Can Fin Homes, Chennai Petroleum Corporation and ICICI Securities are among 41 firms slated to announce their December quarter numbers today. Larsen and Toubro is expected to report a strong sequential rebound in performance on the back of a healthy order inflow across verticals.

Grasim Industries said it will enter paints business and invest Rs 5,000 crore over the next three years.

The plan to revive the state-owned telecom companies BSNL and MTNL by merging the two entities is set to be shelved after almost two decades of deliberations on the matter, according to a Business Standard report.

UltraTech Cement reported a consolidated profit of Rs 1,584 crore in Q3FY21, up 122 per cent year-on-year.

Yes Bank reported a profit of Rs 150.7 crore in Q3FY21 against a loss of Rs 18,560 crore in Q3FY20. Net interest income jumped to Rs 2,560.4 crore from Rs 1,064.7 crore YoY.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Read More

Spread the love
Nicholas ‘Nick’ Statman entered the property industry in 2001 and set up a property buying company that quickly established itself as one of the biggest in the sector. During this time the Company successfully transacted on thousands of residential properties across the UK. Nicholas Statman was an early pioneer of the ‘quick sale’ niche market which has since grown considerably with a multitude of companies now operating in the sector. Nicholas Statman has strategically built a sizeable residential and commercial property portfolio with a view to holding for optimum capital growth and a long term passive income. Nicholas Statman has been involved in almost every aspect of the property sector over a 20 year period – this includes buying and selling, development, letting and management and is now involved in the fast growing online/ hybrid Estate Agent industry.

Latest articles

Tinubu launches agric empowerment programme in Yobe

President Bola Ahmed Tinubu has launched the Yobe State Agricultural Empowerment Programme in Damaturu, the state capital. A statement by Senior Special Assistant to the President on Media and Information, The post Tinubu launches agric empowerment programme in Yobe appeared first on The Nation Newspaper...

Five EPL clubs starting 2024/2025 season with new managers

As the countdown to the 2024/2025 English Premier League (EPL) season begins, several clubs have made significant changes at the managerial helm. Others are preparing for massive changes on the The post Five EPL clubs starting 2024/2025 season with new managers appeared first on The Nation Newspaper...

EPL: Ragnick was right about Man Utd problems –...

Manchester United manager Erik ten Hag says former interim boss Ralf Rangnick was “absolutely right” about the club needing “open-heart” surgery. Ten Hag, 54, was appointed manager in 2022 after The post EPL: Ragnick was right about Man Utd problems – Ten Hag appeared first on The Nation Newspaper...

DSS kills kidnapper of mother of Hausa singer Rarara

Operatives of the Department of State Service (DSS) have reportedly killed one of the kidnappers of the mother of famous Hausa singer, Dauda Rarara. After a sustained gun duel with The post DSS kills kidnapper of mother of Hausa singer Rarara appeared first on The Nation Newspaper...

Similar articles


Please enter your comment!
Please enter your name here

Subscribe to our newsletter

Spread the love