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: Dollar Index rose to the highest level in six days on easing of US-China trade tensions. The index was at 97.784 after surging from levels below 97.5. US Core Consumer Price Index (YoY) came in better-than-expected at 2.2 per cent against 2.1 per cent forecast by analysts.
Asian Markets: Asian markets opened higher in trade after US announced delay in the implementation of tariffs on some Chinese goods. However, tensions in Hong Kong remain high.
US Markets: US markets surged in trade with Dow ending higher by over 500 points, S&P 500 closing 1.44 per cent higher and Nasdaq ending around 1.95 per cent up. 10-year yield topped two-year rate by just two basis points.
European Markets: European markets closed higher with the pan-European Stoxx 600 index climbing 0.6 per cent. Steel and mining giant ArcelorMittal rose sharply following the USTR’s announcement.
Crude: Oil declined in the morning trade with Brent down 0.5 per cent, WTI down 0.63 per cent after soaring in overnight trade. Oil soared 4 per cent on easing US-China trade tensions in overnight trade.
Gold: Gold fell 2 per cent in trade, reversing course from earlier in the session.
STOCKS IN NEWS
HDFC Life Insurance: Standard Life will sell 2.5 per cent stake with an upsize option of additional 0.7 per cent in HDFC Life on August 14, at Rs 477.8-493.4 per share, according to a Bloomberg report. Standard Life is seeking $350 million (Rs 2,468 crore) from the sale of shares. The upsize option will boost the deal size by $100 million (Rs 732 crore).
GAIL: The Petroleum and Natural Gas Regulatory Board (PNGRB) has increased tariff for the company’s Dabhol Bangalore pipeline by 11 per cent. The new price will be effective from September 1.
Zee Entertainment: Private equity fund Invesco Oppenheimer Developing Markets Fund, which has agreed to pick up an 11 per cent stake in Subhash Chandra’s Zee Entertainment Enterprises, reiterated its commitment to the deal in a statement on Tuesday. It said the underlying businesses at Zee remain structurally sound and the company offers an opportunity for meaningful growth over years to come. It added that the fund believes in management's ability to achieve growth and deliver good financial returns.
Dewan Housing Finance Corporation: The Employees’ Provident Fund Organisation (EPFO) will seek early redemption of about Rs 700 crore worth of bonds of cash-strapped mortgage lender Dewan Housing Finance Corporation (DHFL) to safeguard workers’ savings, according to a Mint report. EPFO will exercise an early exit option to redeem investments in 10-year bonds that mature in 2024.
Meanwhile, key DHFL stakeholders, including the consortium of bankers, unsecured creditors and potential PE investors, are discussing the possibility of a legal framework which would indemnify them from any future claims made against the company, according to a Business Standard report. In the absence of such legal protection, they would prefer to bid for the company through NCLT.
Future Retail: American e-commerce giant Amazon is in advanced stage of discussions with Future Retail for picking up 8-10 per cent stake in the Indian retail chain, according to reports. Future Retail is seeking a valuation of around Rs 2,000 crore from Amazon for the stake.
Embassy Office Parks REIT: Embassy Office Parks REIT, India’s first listed Real Estate Investment Trust (REIT), a joint venture between private equity giant Blackstone Group and Embassy Property Developments, plans to acquire stressed office assets in India, while looking to expand its portfolio in Hyderabad and Chennai, according to a Mint report. The real estate trust is also aiming to expand its portfolio in Hyderabad and Chennai.
Indian Oil Corporation: The company is planning to invest Rs 2 lakh crore in the next five to seven years, to expand refining and petrochemicals capacities to maintain leadership, according to a PTI report.
Corporation Bank: The lender has reduced six-month, one-year MCLR by 15 basis points effective Thursday.
Union Bank of India: The lender has cut up to Rs 25 lakh saving accounts rates by 25 basis points.
Ceat: RPG-group owned tyre manufacturer will buy 6.25 per cent additional stake in Tyresnmore Online for Rs 3 crore.
Force Motors: The auto maker will shut three of its plants from August 14-18 due to floods.
Sun Pharma: The company’s promoter has pledged 14.3 million shares of the firm on August 14.
Infosys: The IT major will deliver digital solutions to Toyota Material Handling North America.
Sun Pharma: UBS maintains ‘buy’; target price at Rs 490 per share.
CLSA raises target price from Rs 520 per share to Rs 540.
CITI maintains ‘buy’; target price at Rs 540 per share.
Credit Suisse maintains ‘neutral’; target price at Rs 470 per share.
Morgan Stanley maintains ‘overweight’; target price at Rs 505 per share.
ONGC: UBS maintains ‘buy’; target price at Rs 220 per share.
CLSA maintains ‘buy’; target price at Rs 240 per share.
L&T Infotech: Credit Suisse initiates coverage on L&T Infotech; target price at Rs 1,900 per share.
Bosch: Credit Suisse maintains ‘outperform’; target price at Rs 17,500 per share.
Bharat Forge: CITI maintains ‘neutral’; target price at Rs 430 per share.
Dr Lal PathLabs: CLSA increases target price to Rs 1,330 per share from Rs 1,320.
UBS maintains ‘buy’; target price at Rs 1,300 per share.