Corporate results, state assembly poll results, global cues, and stock-specific action will be the top factors giving direction to the equity markets today.
The results of the Assembly polls in Haryana and Maharashtra that belied expectations of a Bharatiya Janata Party (BJP) sweep may impact investor sentiment.
On Thursday, ITC beat Street estimates to post a 37 per cent rise in net profit to Rs 4,175 crore for the September quarter, primarily via the government’s tax benefit measures.Meanwhile, IndiGo's parent InterGlobe Aviation posted a net loss of Rs 1,062 crore for Q2FY20 as higher costs and mark-to-market losses took a toll on the bottom line. Market participants will react to both these results today.
A total of 54 companies, including State Bank of India, Tata Motors, and Marico, are scheduled to announce their September quarter results today.
SBI is expected to post a decent set of numbers with gains from the stake sale in SBI Life to compensate for any negative earnings’ impact due to mark-down of deferred tax asset.
Yesterday, domestic indices ended flat. The S&P BSE Sensex lost 0.1 per cent, while the broader Nifty50 index settled 0.2 per cent lower.
Today's Nifty levels
According to analysts, Nifty has provided a buy crossover on the daily charts, hence wave 5 up is expected, so traders should buy for the target of 11,700 with a stop loss of 11,540.
On the global front, British Prime Minister Boris Johnson conceded on Thursday for the first time that he would not meet his “do or die” deadline to leave the European Union next week.
Despite this, Wall Street rose on Thursday. The Dow Jones Industrial Average fell 0.1 per cent, the S&P 500 gained 0.2 per cent, and the Nasdaq Composite added 0.8 per cent. Asian shares inched up on Friday in early trade. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.13 per cent higher. Australian shares added 0.66 per cent and Japan's Nikkei ticked up 0.15 per cent. The SGX Nifty, though, suggested a negative start to the day for domestic indices.
In commodity, oil prices were lower with global benchmark Brent crude dipping 0.31 per cent to $61.48 per barrel.