Market Ahead, Feb 3: Top factors that could guide markets today

In the overnight session, US stocks finished sharply higher for a second straight day, helped by gains in Amazon.com and Google-parent Alphabet ahead of their results and by optimism over progress on a US pandemic relief package. Meanwhile, a fall in new Covid cases in the US for the third straight day also added to the upbeat mood.

Alphabet Inc and Amazon.com Inc reported better-than-estimated revenues post the market close, with the online-retail giant saying Chief Executive Officer Jeff Bezos will step down from his post.

The Dow Jones Industrial Average rose 1.57%, the S&P 500 gained 1.39% and the Nasdaq Composite added 1.56%.

In Asia too, markets moved higher during early trading as governments around the world looked poised to boost spending to help economies recover from the coronavirus and vaccine roll-out programs accelerated. 

Japan’s Nikkei rose 0.3% in early trade and Australian S&P/ASX 200 index added 0.8%. Hong Kong’s Hang Seng futures lost 0.20%.

Tracking the firm mood in global markets, Indian indices looked set to extend the Budget-fuelled rally to the third day. At 7.10 am, Nifty futures on the Singapore Exchange traded 45 points higher at 14,772, indicating a positive start for benchmark indices.

However, crude oil prices at 12-month high don't bode well for Indian markets and could cap gains. Brent crude futures hovered at $57.88 per barrel in early trade after jumping 2 per cent to $57.46 a barrel in Tuesday's session.

That apart, market participants would also track the Services PMI data slated to be out today.

Meanwhile, the RBI monetary policy committee, headed by RBI Governor Shaktikanta Das, will meet for three days starting today and will announce the outcome on Friday, February 5.

Now, a look at the stock-specific developments that are likely to sway the market today:

Bharti Airtel, Adani Enterprises, Adani Green Energy, Apollo Tyres, Arvind Fashions, Deepak Fertilisers, Hindustan Copper, Indian Hotels, Inox Leisure, Jubilant FoodWorks and VIP Industries are among 88 companies that are slated to announce their December quarter earnings today.

Analysts expect Bharti Airtel to return to profit while revenues may grow in mid-teens on a year-on-year (YoY) basis, mainly on account of strong subscriber addition momentum. Besides, the company's board will also consider financing strategies and fundraising plans via instruments like debentures, bonds, and loans.

Shares of Home First Finance will debut on the bourses today. The issue that ran between January 21-25 was subscribed 27 times.

V-Mart Retail has set the issue price for its QIP at Rs 2,450 per share.

Shares of Reliance Industries and Future Group companies will be in focus today after the Delhi High Court on Tuesday asked Future Retail to maintain the status quo with respect to its $3.4 billion deal with Reliance Retail.

Russia's Sputnik V vaccine showed 91.6 per cent efficacy in the phase 3 trials. Its India partner, Dr Reddy's Laboratories has said that it would apply for emergency approval in March and that it aims to launch the vaccine in the same month.

Lastly, Brookfield India will hit the primary market with its REIT public issue to raise up to Rs 3,800 crore. The price band for the issue has been fixed at Rs 274 to Rs 275 per unit. The firm on Tuesday raised Rs 1,710 crore from anchor investors ahead of its public issue.