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 opened mixed in trade. US President Donald Trump’s commentary on US- China trade war keep Asian markets under check.
* European stocks closed higher as trade tensions ease. The pan-European Stoxx 600 edged 0.2% higher during the session.
* UK economic data disappointed the people. Britain’s economy sharply contracted in April after the biggest fall in car production since records began.
* Wall Street advanced as investors welcomes the agreement struck between the US and Mexico. Dow up for 6th consecutive session, ended with gains of ~70 points. S&P 500 ended 0.5% higher and is now a little more than 2% away from its intraday all-time high hit on May 1. Nasdaq ended 1.1% higher led by Amazon.
* US President Donald Trump says he'll raise China tariffs if Chinese President Xi Jinping refuses to meet at the G-20 summit where both the leaders are set to participate.
* US expresses “grave concern” over Hong Kong’s extradition proposal.
* Oil falls for the first time in three days in overnight trade. Rising supplies and macroeconomic concerns weigh on oil prices. Saudi Arabia and Russia indicate that falling crude demand could send prices below $40 a barrel. Saudi Energy Minister Khalid Al-Falih said OPEC is almost unanimous on extending supply cuts. Russia said it might support an extension of supply cuts. OPEC+ is due to meet in late June or early July to decide output policy for the rest of the year.
* After the fall in overnight trade, oil prices stabilised in morning session. Brent traded near $62.36/bbl up 0.1% in morning session. WTI traded near $53.42/bbl, up 0.3% in morning session.
* Gold prices dropped 1% on Monday, slipping from a 14-month peak. Spot gold was down 0.8% at $1,329.10 per ounce, after falling ~1.2% earlier in intraday trade. US gold futures settled $16.80 lower at $1,329.30.
Stocks in news
RIL: Reliance Industries Ltd is planning to shut down one of the crude distillation units, coker unit of DTA refinery. Other crude distillation, secondary processing units are expected to operate normally. The Jamnagar unit shut down for routine maintenance & inspection activities for 3-4 weeks from June 20.
Sterlite Tech: Sterlite Tech promoters removed 100% of pledge on company’s shares.
Fortis Healthcare: Yes Bank offloads 2% stake in Fortis Healthcare. Yes Bank sold 1.5 crore Fortis shares in various tranches. The recent one was sold on June 7.
Hotel Leelaventure: ITC says it hasn’t made any offer to acquire assets of the company. ITC executives said the firm is not interested in taking on huge debt of Leela as it does not see any value of capacity expansion through buying Leela assets. Sebi had in April stalled Brookfield’s takeover of Leela assets after complaints from ITC and LIC. Sebi may ask for tweaks to Brookfield’s Leela bid.
J&K Bank: CBI, ED may be roped in to probe J&K Bank case. Investigations by J&K’s Anti-Corruption Bureau uncovered likely diversion of Rs 1,000 crore loans.
Jet Airways: Hinduja halts negotiations over Jet Airways while Etihad shelves plan to increase its investment.
Zee Group: Essel Group races to meet dues deadline. Fund houses appointed PJ Nayak, former chairman of Axis Bank, as a mediator for talks with group. Sale of a minority stake in ZEEL to financial investor will take care of immediate debt owed to MFs & banks. Essel Group is looking to sell minority stake in Zee Entertainment by the end of July. Sale to a financial advisor is likely to meet immediate payment obligations. Total debt on the books of Essel as of December is Rs 16,237 crore. Promoter debt is Rs 13,000 crore.
Nomura On HDFC: Downgrades to ‘Neutral’; but raises target price to Rs 2,300/share, implying 5% upside.
Goldman Sachs on Sun Pharma: Downgrades to ‘Sell’; cuts target price to Rs 355 from Rs 437.
HSBC On HUL: Retains ‘Buy’; ups target price to Rs 2,020 from Rs 2,010.
CLSA On TCS: Maintains ‘Buy’; target price at 2,460.
CLSA On ZEE: Maintains ‘Buy’; target price at 535.
Jefferies On Voltas: Calls ‘Buy’; target price at Rs 700.
HSBC On Hind Zinc: Maintains ‘Hold’; target price at Rs 240.
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