Before the trading day begins, learn about the number of factors that may influence share prices and the trading climate in stock markets.
Important developments across the globe, the current situation of global markets, sentiments, and the overall news related to stocks or companies are some of the key indicators that you need to consider before investing in the stock market.
Also, the views of brokerages on select stocks and buy/hold/sell recommendations with target prices play a significant role in determining how the markets are going to perform.
Dollar Index: The Dollar Index (DXY) closed the day near the daily high, sub-98.10 resistance. It is in a bull trend. DXY was at 98.022, still off highs above 98.4 seen last week.
Asian Markets: Asian markets opened higher in trade. Closer to the region, Japan will officially remove South Korea from a list of preferred trading partners on Wednesday. China said it will encourage credit support for purchases of new energy vehicles and smart home appliances
Investors are monitoring the potential recommencement of U.S.-China trade talks.
US Markets: US markets ended lower with Dow erasing more than 155-point rally. Dow fell around 120 points, S&P 500 fell 0.32 per cent and Nasdaq ended 0.34 per cent lower. Key yield curve inverted to worst level since 2007. The spread between the 10-year yield and two-year rate fell to negative 5 basis points. The spread between the 10-year Treasury yield and the two-year fell to its lowest level since 2007. The three-month Treasury bill rate also traded higher than the 30-year bond yield.
European Markets: European markets closed higher as Europe’s largest economy contracted on weaker exports in the second quarter. The pan-European Stoxx 600 finished 0.5 per cent higher provisionally.
Crude: Crude snapped four-day losing streak in overnight trade. It rose in morning trade after rising 2.4 per cent overnight. Brent was up 0.86 per cent and WTI rose 1.27 per cent in the morning trade.
Precious Metals: Gold jumped 1 per cent on recession fears, while silver breached $18/oz mark.
STOCKS IN NEWS
Coffee Day Enterprises: TPG is in early talks to buy Coffee Day Global, according to an Economic Times report. The proposed deal may value the owner of CCD chain at up to Rs 4,000 crore. The transaction will, however, not include its vending machine business. Coffee Day Enterprises owns 89.6 per cent stake in Coffee Day Global. Coffee Day Global has a debt of nearly Rs 1,100 crore.
Triveni Turbine: The National Company Law Appellate Tribunal has allowed US-based General Electric to sell a controlling stake in its step-down subsidiary Baker Hughes, but said the sale will be subject to the final order on the petitions filed by GE’s Indian joint venture partner Triveni Turbine. GE Triveni is a joint venture of GE Oil & Gas and Triveni Turbine formed in 2010.
DHFL: The cash-strapped mortgage lender has defaulted on interest payment on NCDs aggregating to Rs 14.13 crore on August 26.
Meanwhile, DHFL will consider various proposals on August 30, including converting debt to shares under resolution plan and issue of shares and securities.
Talwarkars Better Value: MK Dandekar & Co. has resigned as the statutory auditors of the company citing failure to get satisfactory responses for their queries.
Yes Bank: The lender will consider proposal for fund raising via share issue on August 30.
Hinduja Ventures: The company will merge unit IndusInd Media with self.
Allahabad Bank: Allahabad Bank will offer repo-linked home, MUDRA loans from September 1. The lender will link over Rs 40 lakh saving deposits to repo rate.
Power Grid: The company’s board has approved investing in transition system for solar energy zones in Rajasthan. The board accorded commissioning schedule for Rajasthan project as December 2020.
The estimated cost is around Rs 2,578.5 crore.
IDBI Bank: S&P has downgraded IDBI Bank to ‘BB/Watch Negative’ from ‘BB/Stable’ on uncertainty regarding the bank's ability to meet its capital requirement in the next three months.
Oberoi Realty: The income-tax officials have left premises after search operations and the day-to-day business activities have resumed, the company said. It anticipates the search and seizure operations to not have any material or adverse impact on the company.
MEP Infra: ICRA has withdrawn rating for the company’s bank limit of Rs 50 crore.
Premier Explosives: The company has inaugurated the new solid propellant pant in Hyderabad.
Fine Organics: The company’s new manufacturing facility in Maharashtra has become operational.
Dilip Buildcon: The company has received appointed date (August 27) for EPC projects in Maharashtra from NHAI.
Star Cement: The firm has committed to go ahead with the buyback offer.
Maruti Suzuki India: Antique maintains 'sell'; target price at Rs 5,011 per share.
Power Grid: HSBC recommends 'buy,; target price at Rs 230 per share.
Marico: Kotak Instl Equities recommends 'add'; target price at Rs 400 per share.
Jubilant Food: Citi maintains 'buy'; target price at Rs 1,400 per share.