The benchmark indices registered minor losses last week although the broader markets continued to rally with the BSE MidCap and SmallCap both rising over 1 per cent each. With the majority of the corporate results to be announced this week being from the MidCap and SmallCap category, the broader space is expected to remain in focus once again. More than 200 companies, including PNB, Zee Entertainment, CSB Bank, and Muthoot Finance are scheduled to announce their June quarter earnings this week which may trigger stock-specific action.
Besides, global cues will continue to dictate the market trend while investors will continue to track the coronavirus cases trend especially after the death toll in India crossed the 51,000-mark, according to Worldometer. The total number of Covid-19 cases in the country has also topped 27 lakh.
Globally, the progress among US lawmakers over negotiations for another stimulus package will be a key trigger for the global markets while any further deterioration in US-China ties remaind a key risk. According to a Reuters report, the two countries delayed a review of their Phase 1 trade deal initially slated for Saturday, while no new date has been decided yet.
Investors will also eye the release of the minutes from the Federal Reserve’s last policy meeting scheduled for August 19.
Last week, FIIs net bought Rs 2,130 crore worth of equities and were key in limiting the extent of fall in the domestic markets. In fact, so far in August, FIIs have been net buyers to the tune of Rs 11,627 crore. As such, foreign flow will remain a crucial component in deciding market trend this week.
Investors will also keenly await the minutes of the RBI monetary policy meeting held in the first week of August which will be released on August 20.
This morning, in Asia, both Japan's Nikkei and Australia's ASX200 were trading with 0.8 per cent cut while the Hang Seng index gained 0.6 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.02 per cent lower at 562. The SGX Nifty is indicating a gap-up start for the Indian indices with an open around 11,280 levels for the Nifty.
Telecom stocks will remain in focus as the Supreme Court will again hear the AGR case today. In last week's hearing, the Supreme Court had directed telecom companies under insolvency to submit details of spectrum sharing agreements that they have entered into.
Stocks related to infrastructure and optical fiber network sectors might also trade actively today after Prime Minister Narendra Modi's focus on "Atmanirbhar Bharat" in his latest Independence Day speech.
 "Market Ahead, Aug 17: Top factors that could guide markets this week")
