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.
Dollar Index (DXY): The index found some footing above the 97.55 mark as US equities rose sharply. It regained some strength as the risk-on sentiment helped the US Dollar. DXY was at 97.558 after rising from levels below 97.5.
Asian Markets: Markets opened mixed in trade as investors await China’s yuan midpoint fix.
US Markets: Wall Street rebounded in trade, with Dow ending 300 points higher, S&P 500 closing 1.3 per cent higher and Nasdaq ending with gains of 1.4 per cent. The gains helped the Dow snap a five-day losing streak. S&P 500 and Nasdaq rose for the first time in seven sessions. US President Donald Trump on Tuesday dismissed fears that the trade row with China could be drawn out.
European Markets: Markets ended lower in trade, with the pan-European Stoxx 600 closing 0.4 per cent lower.
Crude: Oil slipped in morning hours of trade, with Brent and WTI down 0.3 per cent each. Crude ended lower in overnight trade. Brent prices have plunged more than 9 per cent in the past week. US crude inventories fell by 3.4 million barrels in the week ended August 2. Tensions in the Middle East have heightened in the wake of attacks on tankers and US drones.
STOCKS IN NEWS
Reliance Industries, Castrol: Reliance Industries (RIL) has tied up with British oil major BP to open a nationwide network of fuel retailing outlets. The outlets will be set up through a new joint venture company that will be owned 51 per cent by RIL and the remainder by BP. The partnership will also market aviation turbine fuel to cater to India’s growing aviation industry. Final agreements will be reached during 2019 and, subject to regulatory and other customary approvals, the transaction will be completed in the first half of 2020. BP's automotive and industrial lubricant brand Castrol will benefit as its lubricants will be available across the venture's networks.
Tata Steel: The company has terminated the pact with HBIS Group to divest majority stake in South East Asia business as the HBIS Group is not able to procure requisite approvals from Hebei government. Both the parties have decided not to extend the definitive agreement.
Suzlon Energy: Brookfield’s plan to acquire a majority stake in Suzlon EnergyNSE 1.19 % has fallen through, after the Canadian investor could not reach a deal with the wind-turbine maker’s lenders on valuation, Economic Times reported.
Meanwhile, the Suzlon Energy’s bondholders are planning to take legal action against the company for defaulting in repayment in mid-July. The bondholders have hired a legal firm, Kirkland and Ellis, to chalk out strategy. The banks are unlikely to agree to a steep haircut.
Dish TV/Bharti Airtel: Sunil Bharti Mittal’s direct-to-home arm Airtel Digital TV, private equity firm Warburg Pincus and Dish TVNSE 1.96 % have reached an agreement for merger and a formal announcement is expected in 4-6 weeks, Economic Times reported.
Avenue Supermarts: Avenue Supermarts's promoter RK Damani will reduce his stake in the company to meet the mandated minimum public shareholding requirement. Damani will sell up to 1 per cent stake or 62.3 lakh shares in the operator of D-Mart supermarket chain. The sale will start from August 8 and go on till September 14.
ICICI Lombard: The company has partnered with True Balance for affordable insurance.
Orchid Pharma: The powers of the company’ board to be suspended, management of company to be vested with resolution professional from August 17.
Jet Airways: The committee of creditors (CoC) of Jet Airways (India) Ltd on Tuesday approved all resolutions on its agenda including the evaluation criteria for potential bidders of the grounded airline.
Tata Global Beverages: Tata Global Beverages said that Mitsubishi UFJ Financial Group has acquired an indirect interest of 9.93 per cent in it following the latter's acquisition of entities that hold shares of the company.
Dr Reddy’s: Pharmaceuticals major Dr Reddy's said that Mitsubishi UFJ Financial Group has acquired an indirect interest amounting to 8.41 per cent stake in it following acquisition of entities that hold shares of the company.
HDFC Bank: Largest private sector lender HDFC Bank on Tuesday has cut its lending rates by 10 basis points across all tenors, effective August 7, according to reports. The bank’s revised MCLR for 1-year tenor will be 8.60 per cent.
Karur Vysya Bank: The lender has reduced overnight to 3-month MCLR by 10 basis points from August 7.
Vodafone Idea: CRISIL has downgraded the telecom major’s NCDs worth Rs 3,500 crore to ‘A’ from ‘A+’, with a ‘negative’ outlook.
Bajaj Consumer: The company’s promoter pledged an additional 8.24 per cent stake on August 1.
Essel Group: Essel Group is in advanced talks to sell some toll road projects to the National Investment & Infrastructure Fund (NIIF) for about $350 million, according to a Bloomberg report.
IRB Infra: The company has announced investment of up to Rs 4,400 crore by GIC Affiliates in its road business. It will transfer nine of its BOT assets into a private InvITs, where the firm will hold 51 per cent Stake. The investment proceeds will be used for deleveraging and funding for under construction projects.
Cox & Kings: The company has defaulted on commercial papers worth Rs 5 crore due on August 6.
REC: The company has approved proposal for sale of units of REC Transmission & REC.
Titan: Morgan Stanley maintains 'equal-weight'; target price at Rs 1,300 per share.
Macquarie maintains 'neutral'; cuts target price to Rs 1,078 per share from Rs 1,294.
Bank of America Merrill Lynch maintains 'buy'; cuts target price to Rs 1,320 per share from Rs 1,360.
Citi maintains 'buy'; target price at Rs 1,175 per share.
Credit Suisse maintains 'neutral'; cuts target price to Rs 1,050 per share from Rs 1,250.
JP Morgan maintains 'overweight'; target price at Rs 1,170 per share.
Hindalco: Bank of America Merrill Lynch maintains 'buy'; target price at Rs 295 per share.
JP Morgan maintains 'overweight'; target price at Rs 320 per share.
Tata Steel: CITI recommends 'sell'; target price at Rs 435 per share.
Pidilite Industries: UBS maintains 'buy'; target price at Rs 1,425 per share.
Castrol: HSBC upgrades to 'buy'; cuts target price to Rs 142 per share from Rs 170.
Indiabulls Housing Finance: Morgan Stanley maintains 'underweight'; target price at Rs 600 per share.
CLSA maintains 'buy'; cuts target price to Rs 670 per share from Rs 920.
Max Financial: CLSA maintains 'buy'; target price at Rs 550 per share.
IRB Infra: CLSA reiterates 'buy'; lowers target price to Rs 225 per share from Rs 250.
Biocon: HSBC maintain 'buy'; target price at Rs 312 per share.
Axis Bank: Credit Suisse maintains 'buy'; target price at Rs 900 per share.