Corporate results and news-flow regarding the US-China trade deal will be the key factors affecting investor sentiment today. US President Donald Trump is slated to sign the Phase 1 trade agreement with Chinese Vice Premier Liu He at the White House later in the day. In what could be a slight setback, it has been reported that the US would likely maintain tariffs on Chinese goods until after November’s presidential election. Investors will seek more clarity and details on trade deal throughout the day.
On the results front, investors will first react to the Q3 numbers of Wipro and Mindtree that were released after the market hours yesterday.
Mindtree reported a three per cent rise in its net profit at Rs 197 crore for the third quarter while the company’s revenues grew around 10 per cent to Rs 1,965 crore. As for Wipro, the IT firm largely met Street’s estimates with the firm posting growth in revenues and operating margin. However, net profit at Rs 2,463 crore came below the analysts’ expectations.
Today, a total of seven companies including Sterlite Technologies and L&T Infotech are scheduled to announce their December quarter earnings.
Besides, stock-specific action, the Rupee's trajectory, and oil price movement will also be on investors' radar.
YES Bank will be in focus today after the bank said it has convened an extraordinary general meeting of its shareholders on February 7 on fund raising for Rs 10,000 crore.
In global markets, US stocks dipped on Tuesday following a report that the United States would likely maintain tariffs on Chinese goods for now. The Dow Jones Industrial Average ended up 0.11 per cent, while the S&P 500 lost 0.15 per cent, and the Nasdaq Composite dropped 0.24 per cent. In Asia, stocks were steady in early trade. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.13 per cent, Japan's benchmark Nikkei and South Korea's Kospi shed 0.29 per cent and 0.48 per cent, respectively, while Australian stocks added 0.33 per cent. The SGX Nifty is also indicating a negative start for domestic indices.
Back home, Indian equities swatted away the worries over the wholesale inflation soaring to a 7-month high and closed higher on Tuesday. Sensex settled 93 points up at 41,953, while Nifty closed with a gain of 33 points at 12,362.
And, in the end, here's a trading idea by Prabhudas Lilladher which recommends buying NMDC at the current market price of Rs 125.80 for the target of Rs 140 with stop-loss at Rs 119.