Investors on Dalal Street seem to draw strength from a strong set of corporate numbers along with firm cues from global peers, indicating a firm start for the benchmark indices even as India reported a record jump in Covid cases. Some volatility cannot be ruled out in today's session on account of the weekly F&O expiry. Furthermore, stock-specific triggers are also likely to sway market moves.
At 7.20 am, SGX Nifty was ruling 90 points higher at 14,783.
India's second Covid-19 wave turned grimmer as both the fresh case count and daily deaths scaled new peaks in the last 24 hours. India recorded 4.12 lakh new cases, while the death toll neared the 4,000 mark at 3,980.
Adding on to the concerns, the government suggested that a third wave of the pandemic was 'inevitable'. The third phase of the pandemic is inevitable given the high level of circulating virus, principal scientific advisor K Vijayaraghavan said without giving a timeframe. While the country is still battling the devastating second wave, he said, ‘’we should prepare for the new waves.’’
Meanwhile, on the global market front, the Dow Jones Industrial Average ended at a record high in the overnight session, driven higher by energy and other economically sensitive sectors, while the Nasdaq closed in red as mega-cap growth stocks slipped.
The Dow closed up by 0.29%, while the S&P 500 gained 0.07% and the Nasdaq Composite gave up its earlier gains and ended 0.37% lower.
In Asia, stocks rose in early trade while US futures were steady. Japan’s Topix Index rose 1.5%, South Korea’s Kospi edged up 0.75% and Australia’s S&P/ASX 200 Index climbed less than 0.1%.
Now, a look at the stock-specific triggers that are likely to guide the market today
A total of 25 firms are slated to post their March quarter numbers today, including Hero MotoCorp, Tata Consumer, Adani Power, Blue Star, Hikal, Icra and Raymond.
The two-wheeler maker is expected to post nearly 60 per cent YoY growth in earnings before interest, tax, depreciation, and amortization aided by healthy sales volume and low base effect.
Tata Steel reported a higher-than-expected consolidated net profit, attributable to owners of the company, at Rs 6,644 crore in the March quarter (Q4) of FY21, against a net loss of Rs 1,481 crore in the corresponding period last year. It announced a dividend payout of Rs 25 per share to shareholders.
The Cabinet Committee on Economic Affairs has approved strategic disinvestment along with transferring management control in IDBI Bank, paving the way for both the government and Life Insurance Corporation (LIC) to reduce their shareholding in the lender. The government holds 45.48 per cent in IDBI Bank while LIC holds 49.24 per cent.
The Competition Commission has ordered a detailed probe against Tata Motors for alleged abuse of dominant position with respect to dealership agreements. The order has come on two complaints filed against Tata Motors, Tata Capital Financial Services Ltd and Tata Motors Finance Ltd (opposite parties).
Roche India on May 5 said it received Emergency Use Authorisation (EUA) from the Central Drugs Standards Control Organisation (CDSCO) for the antibody cocktail Casirivimab and Imdevimab in India. Cipla will market and distribute the product in India.
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
RECOMMENDED FOR YOU