Market Ahead, January 22: All you need to know before the opening bell

The BSE barometer Sensex witnessed an anticlimactic end to a historic day on Thursday when it surpassed the 50,000 mark only to end in the red. Going into the trade today, benchmark indices could slip further following weak cues from Asian peers. Meanwhile, stock-specific cues and Q3 earnings will also guide market mood. At 7.10 am, SGX Nifty was trading 35 points lower at 14,608.

In the overnight session, the S&P 500 and Nasdaq closed at record highs, up 0.03% and 0.55%, respectively, propelled by optimism about more pandemic relief under the Biden administration. Dow was also poised for a record until falling into negative territory in the final minutes of trading and shed 0.04%.

Asian markets, however, pulled back from an all-time high as investors assessed earnings, prospects for stimulus and escalating coronavirus cases.

Japan’s Topix index slipped 0.6%, South Korea’s Kospi added 0.1% and Australia’s S&P/ASX 200 Index dropped 0.1%.

That apart, cryptocurrency bitcoin extended its slide and fell to an almost three-week low on profit-taking and worries about extra regulation. Bitcoin fell nearly 5% to $29,300 early in the Asia session, its lowest since Jan. 4 and some 30% below its record high of $42,000 hit two weeks ago.

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

Reliance Industries, Yes Bank, Gland Pharma, JSW Steel, Oberoi Realty and V-Mart Retail are among 41 companies set to announce their quarterly earnings later today.

Driven by a strong rebound in petrochemicals business, and supported by growth in the retail segment, RIL is expected to clock a stellar sequential improvement in its net profit for the December quarter of the current financial year (Q3FY21).

SBI Cards and Payment Services reported nearly 52 per cent dip in its net profit to Rs 210 crore in the third quarter ended December 2020, on higher provisioning.

Sebi imposed a penalty of Rs 1 crore on HDFC Bank for invoking securities pledged by stockbroker BRH Wealth Kreators in violation of the regulator’s interim directions.

South Indian Bank posted a loss of Rs 91.62 crore for the third quarter ended December 31, 2020, due to an increase in provisioning for bad loans. The bank had recorded a net profit of Rs 90.54 crore in the corresponding period of the previous financial year.

Lastly, an update on the primary market, Indigo Paints issue was subscribed 6.97 times on Day 2 of the bidding process. The issue closes today. Meanwhile, the IPO by Home First Finance received 1.04 times bids on the first day of the issue.

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