The markets today witnessed a bumper listing of one of the most awaited IPOs in recent history, Zomato. The exuberance though was not broad-based, the market breadth remained negative for the day.


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The weekly trend too remained marginally negative as all the major market cap based broader indices closed marginally in the negative for the week. The strong show of IT stocks continued whereas slippages in reported asset quality and expectations of rising NPA risks dragged down the banking stocks. 

The expected rise in NPAs may have broader market implications as it exposes the pandemic-caused vulnerability of both households as well as corporate balance sheets. Over the coming week, the focus would continue to be on the corporate earnings, as the market participants try to gauge the sustainability of the earnings upgrades seen during the last couple of earning seasons. Another factor to watch is the rise in the delta variant cases in the US as also in certain parts of Europe.

Online food ordering platform Zomato, which last week closed its mega initial public offering raising over Rs 9,000 crore, will list on the stock exchanges on Friday, days ahead of its earlier schedule of the next week. The firm had indicated a window from July 23 to July 27 for listing and has now decided to list on Friday.

Listing out factors that will affect stock market going ahead, Shibani Kurian, Senior EVP & Head- Equity Research, Kotak Mahindra Asset Management Company said, "Pace of vaccinations needs to be monitored which is important to guard India from third COVID wave. Few other factors that will likely decide the market movement include (a) Progress of monsoon and sowing of Kharif crop for summer season (b) global liquidity and global interest rates and improvement in global GDP and ( c) the trend of inflation in many global commodities like crude oil and steel and (d) pace of corporate earnings growth in India."

The rupee pared early losses to close 6 paise higher at 74.40 against the US dollar following gains in the domestic equities.

The market witnessed a swift recovery after the initial fall, 15,800 will be an important support level in the short-term perspective. If the market breaches the level of 15,900 and is able to sustain above this level, the market expects to gain momentum, leading to an upside projection of 16,200 levels. the momentum indicators like RSI and MACD to stay positive and market breadth to improve, further strengthening a short-term bullish outlook.

Germany's DAX added 0.6% to 15,607.15. In Paris, CAC 40 also rose 0.6%, to 6,522. Britain's FTSE 100 surged 0.7% to 7,016. The future for the Dow Jones Industrial Average was 0.3% higher, while the future for the S&P 500 gained 0.4%.

Hang Seng in Hong Kong lost 1.5% to 27,321 and Shanghai Composite index gave up 0.7% to 3,550.

On Thursday, S&P 500 rose 0.2% to 4,367.48. Dow Jones Industrial Average added 0.1% to 34,823. The Nasdaq composite gained 0.4% to 14,684.

Meanwhile, international oil benchmark Brent crude declined 0.01 per cent to USD 73.78 per barrel.


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