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) broke above the critical resistance at 98.10. It was trading at weekly highs above the 98.22 level.
Asian Markets: Asian markets opened with a tepid bias as investors continue to monitor the yields in the US.
US Markets: US markets closed higher in trade with the energy sector getting a lift from higher oil prices. Dow ended over 250 points higher on gains from Chevron and Exxon Mobil. S&P 500 ended 0.7 per cent higher and Nasdaq closed 0.4 per cent up. Dow, S&P 500 and Nasdaq were all down at least 3 per cent for the month. The 30-year bond yield fell to a new record low of 1.907 per cent. The yield spread between the 10-year Treasury note and two-year note also widened further.
European Markets: European stocks closed lower. Sterling fell on no-deal Brexit fears. The pan-European Stoxx 600 was 0.1 per cent lower.
Crude: Oil sees a mixed opening in morning trade with gains of 1.5 per cent on steep drop in US crude inventories. US crude inventories plummeted by 10 million barrels last week. Brent and WTI recorded their biggest daily gains in 11 sessions. Brent and WTI headed for monthly losses of around 7 per cent and 4 per cent, respectively. Gasoline stocks fell by 2.1 million barrels. Crude prices have fallen about a fifth from 2019 highs hit in April.
STOCKS IN NEWS
Bharti Airtel: The planned merger of Bharti Airtel’s Kenyan unit with the partly state-owned Telkom Kenya has got stalled with the east African nation’s anti-corruption commission suspending the deal amid an ongoing probe into allegations of misappropriation of public funds at Telkom, according to an Economic Times report.
Jet Airways: South America’s Synergy Group Corp is planning to pick up 49 per cent stake in Jet Airways, according to a Business Standard report. It will discuss co-investment options with its lenders and infrastructure companies.
NDTV: Red Pixels' application against I-T order was rejected. It will pay Rs 12.1 crore. Red Pixels will pay 20 per cent of demand on Wednesday and the remaining within one month.
Sugar Stocks In Focus: The cabinet has approved sugar export subsidy for 60 lakh metric tonne of sugar. It has approved sugar export policy for surplus stocks. It has also approved Rs 6,268 crore export subsidy for sugarcane farmers.
Piramal Enterprises: The company will defer issue of privately placed NCDs worth up to Rs 3,000 crore to a future date.
L&T Finance Holding, IIFL Finance: IIFL Wealth Group has entered into a definitive agreement to acquire L&T Capital Markets, a wholly-owned subsidiary of L&T Finance Holdings, for Rs 230 crore. The transaction is expected to be completed within 20 days post regulatory approval.
Lakshmi Vilas Bank: The lender has approved raising up to Rs 1,500 crore via debt and equity. It’s MD and CEO Parthasarathi Mukherjee has resigned citing personal reasons.
Wockhardt: India Ratings has cut long term issuer rating to BB+ from BBB-.
Indian Oil Corp: The company is planning to set up new refinery in Tamil Nadu by replacing a smaller plant. It is at an advanced stage for developing battery energy storage. The firm’s refineries will start supplying BS-VI fuel 2-3 months before the target date of April 2020. Air India owes the company Rs 2,850 crore.
DLF: The company has almost completely leased its commercial project in Gurugram, Haryana comprising 2.5 million square feet. It expects to earn a rental of about Rs 375 crore annually.
Nestle, Indiabulls Housing Finance: Nestle will replace Indiabulls Housing Finance from Nifty 50 from September 27.
Yes Bank: Moody’s Investors Service has downgraded its long-term foreign currency issuer rating to 'Ba3' from 'Ba1'. It has also downgraded the bank’s long-term foreign and local currency bank deposit ratings to ‘Ba3’ citing lower than expected amount of capital raised by the bank recently.
Balaji Amines: Balaji Amines announced that its subsidiary, Balaji Speciality Chemicals has completed REACH registration process for Ethylenediamine. This will allow the company to supply Ethylenediamine to customers in the European Region.
Kingfa Science: The company’s newly set up manufacturing plant in Chakan will start commercial production from September 2.
Kotak Mahindra Bank: UBS downgrades to ‘neutral’ from ‘buy’; target price at Rs 1,620 per share.
Polycab: Citi maintains ‘buy’; target price at Rs 736 per share.
Grasim: Morgan Stanley maintains ‘overweight’; target price at Rs 790 per share.
ICICI Bank: Citi reiterates ‘buy’; target price at Rs 510 per share.
Coal India: Bank of America Merrill Lynch (BofAML) Maintains 'Buy'; target price at Rs 290 per share.
Container Corp: BofAML maintains 'underperform'; cuts target price to Rs 467 per share from Rs 477.
Infosys: Macquarie maintains 'outperform'; target price at Rs 810 per share.
Zee Entertainment: Macquarie maintains 'neutral'; cuts target price to Rs 375 per share from Rs 390.
SBI: Jefferies retains 'buy'; target price at Rs 370 per share.
RBL Bank: Morgan Stanley maintains 'underweight'; target price at Rs 400 per share.
InterGlobe Aviation: Credit Suisse maintains 'overpriced'; target price at Rs 1,900 per share.