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: The dollar index (DXY) nudged off three-week peak and retreated below the 98.38 resistance. US yields has dipped before the central bankers’ meet in Jackson Hole, Wyoming, on Friday. DXY against a basket of six major currencies was flat at 98.210 after shedding 0.2 per cent overnight.
Asian Markets: Asian markets opened lower in trade following declines in the US and Europe on Tuesday.
US Markets: US markets pulled back overnight on recession fears. Nikkei was down as auto stocks declined across the board. Dow fell 170 points, snapping its three-day winning streak. It fell for the first time in four session. S&P 500 pulled back 0.8 per cent, while Nasdaq ended 0.7 per cent lower. US Treasury yields ticked lower on hopes of stimulus.
European Markets: European stocks closed lower with the pan-European Stoxx 600 ending provisionally down around 0.7 per cent. Italy’s mounting political crisis likely caused a dent in investor sentiment. Italian Prime Minister Giuseppe Conte announced his intention to resign. Italy's FTSE MIB tumbled 1 per cent, while shares of Italian banks Ubi Banca and Banco BPM fell over 2 per cent.
Crude: Crude rose marginally in the morning session after steadying on Tuesday. Crude inventories fell by 3.5 million barrels in the week to August 16. Gasoline stocks fell by 403,000 barrels.
STOCKS IN NEWS
Dr Reddy's: The United States Food and Drug Administration (USFDA) has issued a Form 483 with eight observations to Dr Reddy's Laboratories after the inspection of its Duvvada facility in Andhra Pradesh. The company said it will address them comprehensively within the stipulated timeline.
SPARC: Sun Pharma Advanced Research Company (SPARC) has said that Abraxis Biosciences has filed a complaint against the company in the US District Court (New Jersey) alleging that SPARC’s filing of the new drug application for Taclantis injection is an act of infringement of the orange book listed patents for Abraxane. The company believes that lawsuit is without merit and said it will vigorously defend against these allegations.
Biocon: Singapore’s investment company Temasek and private equity fund True North along with Canadian Pension Plan Investment Board (CPPIB) are separately in discussions to invest $300 million in Biocon Biologics India (BBIL), a wholly owned subsidiary of Biocon, for a minority stake, according to an Economic Times report. The unit may be valued upwards of $4 billion (Rs 28,000 crore).
Alembic Pharma: The United States Food and Drug Administration (USFDA) has cleared company’s Vadodara Bioequivalence unit.
NMDC: Karnataka government has decided to cancel the lease given to NMDC for the Donimalai iron ore mine and to put it under auction. NMDC said that it has field revision application against Karnataka government's order with Ministry of Mines and the hearing is fixed on August 21.
Bharti Airtel: Bharti Airtel may not buy the coveted 5G spectrum and the “expensive” 700 MHz premium airwaves, according to a Business Standard report. It plans to bid for airwaves in the 800, 900, and 1800 MHz bands for which its licences have either expired or are about to expire.
SpiceJet: The budget airline will shift entire operations at Mumbai to Terminal 2 from October 1. The move to have single terminal operations will bring down costs for the airline.
Dewan Housing Finance Corp (DHFL): Lenders to the cash-strapped mortgage lender has sent the final resolution proposal of DHFL for RBI’s approval, sources have told BTVI. Banks are likely to give Rs 3,000 crore as incremental loan for wholesale books of DHFL. They will also seek SEBI’s approval for conversion of debt to equity.
Jaiprakash Associates: Crisis-hit Jaiprakash Associates (JAL) will challenge Competition Commission's order that imposed nearly Rs 14 crore fine on the company for abusing dominant market position.
HDIL: The National Company Law Tribunal (NCLT) has admitted an application filed by Bank of India to initiate insolvency proceedings against debt-ridden realty firm HDIL. The company said it is under the process to file an appeal to National Company Law Appellate Tribunal (NCLAT) against the order passed by the NCLT.
Punj Lloyd: Engineering and construction firm Punj Lloyd will seek 90 days extension to resolution period. It will appoint Dun & Bradstreet as technical auditor. It is also planning legal action on GAIL invoking bank guarantees.
Dabur: The company will contribute $16 million as share capital in unit Dermoviva Skin Essentials.
Allahabad Bank: The lender will raise Rs 800- 1,000 crore through QIP in September. The share sale may bring down government stake by 8-10 per cent. The bank has appointed 5 bankers for share sale to large investors.
Deepak Nitrite: ICRA has upgraded the firm’s long-term rating from A+ to AA-; with a stable outlook.
United Spirits: Diageo PLC has further acquired 33 lakh shares in the company at Rs 591.95 per share.
Fortis Healthcare: The new CEO of the company is planning to cut spending by 20 per cent, according to a Business Standard report. The goal is to reduce expenses by $31 million over the next two years.
NMDC: Citi maintains ‘buy’; target price at Rs 120 per share.
NTPC: Macquarie maintains ‘outperform’; cuts target price to Rs 141 per share from Rs 148.
Morgan Stanley maintains ‘equal-weight’; target price at Rs 147 per share.
Mahanagar Gas: Macquarie upgrades to ‘outperform’ from ‘neutral’; raises target price to Rs 950 per share from Rs 815.
Oil Marketing Companies: UBS reiterates ‘buy’; Indian Oil Corporation (Target Price Rs 200), BPCL (Target Price Rs 600) and HPCL (Target Price Rs 445).
HDFC Bank: Macquarie maintains ‘outperform’; target price at Rs 2,820 per share.
State Bank of India: HSBC maintains ‘buy’; target price at Rs 400 per share.
Tech Mahindra: Goldman Sachs maintains ‘buy’; target price at Rs 907 per share.
Adani Ports: Morgan Stanley maintains ‘overweight’; target price at Rs 408 per share.