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.
* Wall Street closed lower amid investors’ worry that the Fed will not be as dovish as expected. Dow ended ~130 points lower, S&P 500 pulled back 0.5%, and Nasdaq ended 1% lower. Fed rate cut expectations dinged after ECB President Mario Draghi said there was not a significant risk of a recession. The Fed is scheduled to meet on Tuesday and Wednesday.
* Asian markets opened lower in trade. Yen traded at 108.72 against US dollar.
* European markets closed lower with ECB chief Draghi giving mixed message on stimulus. The pan-European Stoxx 600 closed provisionally down by 0.5%. German yields bounce off record low.
* DXY battling with the 97.80 resistance as market trades in a bull trend. US Dollar Index tumbles to 2-day lows near 97.50 on ECB. Yields of the US 10-year note rebound to 2.05%.
* Crude traded mixed in morning session after dropping in overnight session. Brent down 0.21% near $63.26/bbl, WTI up near $56.04/bbl.
Stocks In News
Yes Bank: TPG, Advent are in talks to infuse funds in Yes Bank. The two firms may invest around $350mn each in the lender.
Essel Group: Canada’s CDPQ pulls out of deal to buy 3 road projects from Essel Infraprojects. The 3 projects were expected to fetch an EV of Rs 3,300 – 3,500 crore. Essel is now trying to sell the assets to an NIIF-Roadis JV.
Dish TV: Airtel, and its partners’ plan to buy Dish TV hits valuation bump. Dish TV owners want at least Rs 45/share for 57.52% stake, but the offer on table is Rs 30-35/share. At Rs 45/share, Dish TV promoters will get Rs 4,766 crore, while at Rs 35/share it will come down to Rs 3,707 crore for 57.52% stake.
Vedanta: The company unwinds the CIHL structured investment. Volcan will exercise the early exchange option on Friday. Since Volcan invested in it, Anglo American Plc share price has nearly doubled. CIHL investment delivered a net gain of over $100 mm in the 8 month period. Cash proceeds from the settlement will be paid to CIHL on August 13, 2019.
Cox & Kings: Thecourt has allowed the company to withdraw its plea against IATA as the SBI is now allowed to make payment of Rs 24.3 crore.
Adani Green: The company plans to raise Rs 5,000 crore to fund existing, upcoming renewable energy projects and add over 800 mw of new capacity of wind, solar projects. The company eyes to become a 5,000-mw renewable energy company by 2022.
Amara Raja: Nalanda India equity fund bought 2% stake in co on Wednesday.
Tata Sponge, Tata Steel: Tata Steel has acquired shares worth Rs 1,292 crore of Tata sponge, increasing Tata Steel’s stake to 75.91%.
Avenue Supermarts: The companyraised Rs 30 crore via commercial papers.
JSW Steel: The company says it will not withdraw from or reduce the bid amount for Bhushan Power & Steel Ltd. It reiterated the call for immunity from future litigations against scam-tainted firm.
Bajaj Finance: The firm plans to raise $1.2bn in a share sale to boost its capital. The fundraising is likely to take place in the second half of this fiscal. Shares may also be sold to institutional investors.
PNB: PNBBoard approved QIP amounting to Rs 5,000 crore for raising Equity Capital.
CLSA upgrades to ‘Buy’ from ‘Out-Perform’; raises target price to Rs 265 from Rs 250.
CITI maintains ‘Buy’; target price at Rs 290.
Bank of Baroda:
Jefferies maintains ‘Buy’; cuts target price to Rs 130 from Rs 150.
Credit Suisse upgrades to ‘Neutral’; target price at Rs 115.
CLSA maintains ‘Buy’; cuts target price to Rs 135 from Rs 150.