Market Ahead, January 27: All you need to know before the opening bell

The domestic markets are likely to witness a positive start as they reopen for trading after a one-day holiday on the back of a strong growth forecast by the International Monetary Fund (IMF). However, a muted global trade setup could cap gains. At 7.15 am, SGX Nifty was trading 108 points up at 14,189.

The IMF expects India to log a growth rate of 11.5 per cent in the next financial year before slowing to 6.8 per cent in 2022-23, making India regain the tag of the fastest-growing large economy in the world in both the years. However, for FY21, it has pegged contraction in India's economy at 8 per cent in the current financial year, higher than the 7.7-per cent decline projected by the government's advance estimates.

Meanwhile, the Wall Street indices ended in the red in overnight trade with S&P and Nasdaq slipping from record closing levels as investors digested a batch of corporate earnings results. The Dow Jones Industrial Average fell 0.07%, the S&P 500 lost 0.15% and the Nasdaq Composite dropped 0.07%.

In Asia, shares were trading mixed as stocks climbed in Japan, fluctuated in South Korea and slipped in Australia. All eyes are on the US Federal Reserve policy outcome due later today. Analysts expect the Fed to stick to its dovish tone to help speed the economic recovery.

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

Axis Bank, Hindustan Unilever, Bank of Baroda, Marico, Emami and India Cements are among 50 firms set to post their December quarter numbers today. Analysts expect HUL to post double-digit revenue growth on the back of GSK acquisition.

Auto stocks are likely to be in focus after the government approved a policy to scrap more than 15-year-old vehicles owned by government departments and PSUs. The same will come into effect from April 2022.

GAIL plans to launch an InvIT of its two gas pipelines between Dahej and Bengaluru ahead of a proposed splitting of the pipeline business from the gas marketing function, according to a PTI report.

Larsen & Toubro reported a consolidated net profit of Rs 2,467 crore in the December quarter, up nearly 5 per cent from the same period last year as lower expenses lent some support to the bottom line even as revenues were a tad muted.

ICICI Securities reported a profit of Rs 267 crore in Q3FY21 against Rs 137.2 crore in Q3FY20. Revenue jumped to Rs 620.11 crore from Rs 422.24 crore YoY.

Lastly, an update on the IPO front. Rs 413 crore share sale issue by Stove Kraft got fully subscribed on Monday, the first day of the issue. The IPO closes on Thursday.