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, 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.
Here are some of the factors that may affect the stock market today.
Asian Markets: Asian markets opened lower in trade. South Korean exports drop 11 per cent in July. US and Chinese officials meet in Shanghai for the first time since a truce was agreed between the two countries back in May. The two countries wrapped up a round of trade talks without visible signs of progress, and put off their next meeting until September.
US Markets: US markets ended lower in trade, with Dow dropping 330 points in worst day since May, after falling more than 450 points in intraday trade. After cutting rates by 25 basis points, US Federal Reserve Chairman Jerome Powell hinted that rate cut is not the start of a trend. S&P 500 slid 1.1 per cent , while Nasdaq ended 1.2 per cent lower. Dow logged its biggest one-day decline since May 31 along with the S&P 500, while Nasdaq had it biggest one-day drop since late June. The 10-year bond yield declines after Fed rate cut.
European Markets: European markets closed higher, with the pan-European Stoxx 600 climbing 0.2 per cent.
Crude: Crude declined in the morning session after US Federal Reserve signalled that rate cuts may be limited. Brent fell 1.7 per cent to $63.97/bbl and WTI was down 1.74 per cent to $57.56/bbl. Oil prices fell more than $1 on Thursday, declining for the first time in six days. US crude oil stockpiles fell for the seventh straight week. Crude inventories fell 8.5 million barrels in the week ended July 26 and the OPEC output hit an eight-year low in July.
STOCKS IN NEWS
Zee Entertainment: After nearly six months of negotiations with several strategic investors, the Subhash Chandra-backed Essel Group has decided to sell 11 per cent promoter stake in Zee Entertainment (ZEEL) to Invesco Oppenheimer Developing Markets Fund for Rs 4,224 crore. The Essel Group has initiated process of divesting key assets, and is also looking to divest some non-media assets. The Group aims to repay lenders by September 2019, and is confident to complete repayment process well within agreed timeline.
Reliance Industries: E-commerce major Amazon is in exploratory talks with Reliance Retail to acquire up to 26 per cent stake in the company, according to an Economic Times report.
Dewan Housing Finance (DHFL): Banks are likely to take majority stake in DHFL on a transitory basis, according to sources. Kapil Wadhawan may lose his promoter status, but will for now stay on the board. Banks expect a new investor to come post restructuring. The resolution plan in its last leg for final approval by DHFL board and lenders, and is likely to be approved shortly. Sources also say that mutual fund investors have been asked to give an alternate option if they dissent.
Wipro: Wipro has got final comments on share buyback from market regulator Sebi on July 30. The buyback of shares will open on August 14 and close on August 28. The buyback price is set at Rs 325 per share – at 22.6% premium to the current market price.
HDFC: The mortgage lender has reduced retail prime lending rate by 10 basis points effective August 1.
Punjab National Bank: The public sector lender has reduced MCLR lending rates by 10 basis points across tenors effective August 1.
GMR Infra: The company will consider raising up to Rs 2,500 crore on July 5 via convertible debentures.
Unichem Labs: US FDA has issued four observations to company's Goa formulation unit but there was no repeat observations.
Ashok Leyland: The company’s board has approves raising up to Rs 600 crore via debt.
Bosch: The company has proposed to suspend manufacturing operations at its Bidadi plant from August 1-3 to adjust production to meet demand and avoid buildup of inventory.
Mindtree: Former Cognizant president Rajeev Mehta is set to be the CEO of Mindtree, and the company will make formal announcement on the appointment on Friday, according to a Times of India report.
Piramal Enterprises: CLP India, Piramal Group are looking to buy Mahindra Susten’s solar assets, according to a Mint report. The sale process for the 160 mega watt solar assets is likely to fetch a valuation of around Rs 1,000 crore. Mahindra Group had appointed Avendus to seek buyers for a part of its solar portfolio.
Coffee Day Enterprises: More buyers are expected to line up for CCD, with Tata Global Beverages, Jubilant Foodworks likely to join the fray, according to a Business Standard report. Coca-Cola is already in talks for the same.
Apollo Hospitals: ADIA, Mitsui, Itochu are eyeing stake in Apollo Holding Co, Economic Times reported, adding that promoters are seeking funds to reduce debt and strengthen the balance sheet. The Reddy family holds 34 per cent in the hospital chain, and has pledged 75 per cent of total shares with lenders. Reddys plan to reduce pledge to 20 per cent in one year.
Eicher Motors: CLSA recommends ‘outperform’; reduces target price to Rs 19,000 per share from Rs 21,000.
Morgan Stanley maintains ‘equal-weight’; target price at Rs 17,052 per share.
Credit Suisse maintains ‘neutral’; target price at Rs 15,200.
Jefferies recommends ‘hold’; cuts target price to Rs 17,800 per share from Rs 19,300.
Ashok Leyland: Nomura maintains ‘neutral’; target price at Rs 91 per share.
Zee Entertainment: Bank of America Merrill Lynch maintains ‘buy’; target price at Rs 445 per share.
CLSA retains ‘buy’; target price at Rs 515 per share.
Credit Suisse maintains ‘neutral’; target price at Rs 400 per share.
HSBC maintains ‘buy’; target price at Rs 434 per share.
Citi maintains ‘neutral’; target price at Rs 430 per share.
UPL: CLSA retains ‘buy’; lowers target price to Rs 720 per share from Rs 813.
CITI maintains ‘buy’; target price at Rs 800 per share.
Indian Oil Corp: Macquarie maintains ‘neutral’; target price at Rs 160 per share.
Citi maintains ‘neutral’; target price at Rs 165 per cent.
Adani Ports: CITI maintains ‘neutral’; target price at Rs 417 per share.