Market Ahead, March 19: Top factors that could guide markets today

Early indications suggest more pain for investors on Dalal Street today amid a weak finish for Wall Street in the overnight session following a spike in bond yields and worries about the rising Covid-19 cases. The benchmark indices have been falling for the past five days, having lost nearly 4% during this period.

At 7.20 am, SGX Nifty futures were down 0.55% at 14,515.

US stocks ended sharply lower, hit by a spike in Treasury yields beyond 1.75%, its highest in 14 months, and after France imposed a month-long lockdown in Paris and several other regions amid fresh worries about the coronavirus pandemic.

The Dow Jones Industrial Average fell 0.46% while the S&P 500 lost 1.48% and the Nasdaq Composite dropped 3.02%.

Consequently, a pullback on Wall Street knocked Japan’s Nikkei down 0.7% and South Korea 1%. MSCI’s broadest index of Asia-Pacific shares outside Japan followed with a fall of 0.5%.

The rout extended to the oil too as prices plunged over 7% on Thursday, their biggest-one day declines since last summer, on growing worries about rising Covid-19 cases in Europe and the strengthening US dollar. Earlier today, Brent crude futures were down another 38 cents at $62.90 a barrel while U.S. crude shed 35 cents to $59.65.

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

Easy Trip Planners’ shares will list on the bourses today. The IPO that was subscribed 159 times was quoting in the grey market at a 70% premium, as per unlisted market watchers.

Shares of IT firms will be in focus after Accenture raised its guidance for the FY21 to 6.5-8.5% from 4-6% earlier, suggesting that Indian IT companies could also report robust growth for the March quarter next month.

Insurance stocks could also hog the limelight the Rajya Sabha on March 18 passed The Insurance (Amendment) Bill, 2021, to increase the foreign direct investment limit in the sector from 49% to 74%.

Shares of Reliance Industries and Future Group companies could react after the Delhi High Court upheld the Emergency Award that Amazon had won against Future Retail-RIL deal.

GAIL has signed Concession Agreement with Ranchi Municipal Corporation for setting up Compressed Biogas Plant in Ranchi.

Now, an update on the primary market.

The IPO of Kalyan Jewellers that close for subscription on Thursday was subscribed 2.64 times.

While the issue of Nazara Technologies was subscribed 10.55 times and that of Suryoday SFB 1.01 times. Both issues close for subscription today.

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