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Market Ahead, July 31: All you need to know before the Opening Bell

Investors will look at June quarter results, global cues, and macroeconomic data for market direction on Wednesday.

BS Web Team  |  New Delhi 

Investors will look at June quarter results, global cues, and macroeconomic data for market direction on Wednesday. They will also react to major results announced on Tuesday after market hours that includes results of Axis Bank, Tech Mahindra, and Hero MotoCorp.

Expectations were high from Axis Bank which posted a net profit of Rs 1,370 crore in the June quarter, a 95 per cent year-on-year growth, although it didn’t match the Street’s expectations ofRs 1,860 crore profit, largely because of elevated provisioning.

Tech Mahindra reported a 6.8 per cent year-on-year (YoY) rise in its consolidated net profit at Rs 959 crore for the quarter ended June 30. It had posted profit of Rs 897.9 crore in the year-ago period. Sequentially, the numbers dropped 15 per cent.

Hero Moto Corp posted a 35.89 per cent increase in consolidated net profit at Rs 1,256.69 crore for the first quarter on the back of a one-off exceptional gain of Rs 737.48 crore.

You can read our full coverage on these results and companies on our website.

A total of 88 companies, including Eicher Motors, Ashok Leyland, and Indian Oil Corporation, are scheduled to declare their June quarter results today.

Bank stocks may be in focus today after the Reserve Bank of India allowed domestic banks to directly sell their bad loans in manufacturing and infrastructure sectors to investors abroad as part of one-time settlement exercises.

The growth data of eight core sectors in June will also be out today.

And, let's take a look at top trading ideas from HDFC Securities. The brokerage recommends selling IndusInd Bank at the current market price with the target price of Rs 1,260 and a stop loss of Rs 1,380. Another stock the brokerage is bearish on is Reliance Industries (RIL). It recommends selling the stock at CMP, for the target of 1110, keeping a stop loss at 1230 on closing basis.

Globally, the US Federal Reserve is widely expected to cut interest rates later in the day. On the other hand, US President Donald Trump has warned China against waiting out his first term to finalize any trade deal, saying if he wins re-election in the November 2020 US presidential contest, the outcome could be no agreement or a worse one.

Now, let's see how the global fared overnight and they mean for Sensex and Nifty.

Major Wall Street stock averages ended slightly lower on Tuesday after Trump's China threat. Asian shares weakened in early trade on Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.04 per cent while Japan's Nikkei slid 0.84 per cent.

As for SGX Nifty, it's indicating a positive start for the negative indices.

First Published: Wed, July 31 2019. 08:08 IST
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