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) is trading in a bull trend, breaking above 97.80 and opening the gates to the 2019 high, on upbeat US GDP data. Advanced US GDP for the second quarter came in above estimates at 2.1 per cent. Markets are now focused on the upcoming FOMC event. The support for the Dollar Index is seen at 97.80 and the 97.50 levels.
Asian Markets: Asian markets witnessed a subdued start to trade with US-China trade talks set to resume this week.
US Markets: US markets end higher in trade with S&P 500 and Nasdaq notching another record close. S&P 500 ended 0.7 per cent higher posting a record high, while Nasdaq hit all-time high, rising by 1.1 per cent. Dow closed 0.2 per cent higher. Consumer stocks such as Starbucks and McDonald’s contributed to the gains. It is expected that the US Federal Reserve may cut rates by 25 basis points to push expansion. The central bank is expected to lower borrowing costs for the first time in more than a decade.
European Markets: European markets end higher, after the European Central Bank (ECB) maintained a status-quo on interest rates. The pan-European Stoxx 600 closed provisionally 0.4 per cent higher.
Crude: Crude declined in the morning trade, with the Brent down 0.44 per cent at $63.18/bbl and WTI down 0.25 per cent at $56.06/bbl. Oil rose 0.3 per cent on US economic data, Strait of Hormuz tanker dispute in overnight trade.
STOCKS IN NEWS
Reliance Industries (RIL): The company is planning a big push for private label brands and has hired distributors to sell these brands via neighbourhood stores, according to a Mint report. It is looking to sell its store brands across categories such as staples, food, personal care and general merchandise.
Dewan Housing Finance (DHFL): The mortgage lender has sought bankers’ nod to restart disbursement of loans, and may resume fresh disbursements if lenders agree to the resolution plan, according to a Business Standard report. The company is expected to place resolution plan with banks in the next few days. It is planning to resume lending business from monthly EMI collections, and is aiming for fresh disbursements of Rs 800-1,000 crore a month.
Tata Chemicals: The company has received green nod for the expansion of its soda ash plant at Devbhumi Dwarka district in Gujarat, at an estimated cost of Rs 1,042-crore, according to a PTI report. The company is planning to expand the capacity of the plant to 113.16 lakh tonne per annum, from 10.91 lakh tonne at present. It also is looking to increase the captive power plant capacity to 125 mega watt, from 84 mega watt at present.
Maruti Suzuki: The carmaker has introduced CNG variant in Ertiga and Tour M. The ex-showroom price in Delhi and NCR of Ertiga CNG is Rs 8.87 lakh, while of Tour M CNG is Rs 8.82 lakh.
UFLEX: The company will disinvest 82 per cent stake in Utech Developers for Rs 125 crore to Montage Enterprises, after which Utech Developers will cease to be subsidiary of the company. The firm will receive consideration in the form of redeemable preference shares.
Aditya Birla Fashion: The company has completed the acquisition of 51 per cent stake in Finesse International Design, promoted by designers 'Shantanu & Nikhil', for Rs 58 crore. Finesse will now become a subsidiary of the company. Its revenue for FY19 stood at Rs 35.2 crore.
Sheela Foam: The company will acquire 93.7 per cent stake in Interplasp S.L for a consideration of 42 million euros, giving the company a presence in Europe. The acquisition is expected to be completed by September 30. Interplasp S.L manufactures and markets slabstock polyurethane foam. It produces about 11,000 tonne of Polyurethane foam annually, and has posted an turnover of 31.6 million euros in 2018.
Allahabad Bank: The lender will consider raising funds up to Rs 4,000 crore through QIP/rights Issue/FPO on July 31.
Granules India: The pharmaceutical company has received one observation from the US Food and Drug Administration (USFDA) for its Bonthapally facility in Hyderabad. The company said it will respond to the FDA observation within stipulated time.
Future Lifestyle: The company has approved issue of 6.5 million shares at Rs 463 each to AION Capital Affiliate.
Usha Martin: India Ratings has upgraded Usha Martin’s rating to BBB+ from BB+.
Yes Bank: The private lender said it continues to explore various means to raise capital.
IDFC: The company has called off plans to sell stake in its subsidiary IDFC Financial Holding Company to The Chatterjee Group (TCG) as the pact with TCG to sell stake in IDFC Securities has expired. The company will continue to explore other options to suitably divest securities business.
Cadila Healthcare: The pharma major has received zero observations from the USFDA, for its API manufacturing facility at Ankleshwar.
Manpasand Beverages: The FMCG firm’s wholetime director Abhishek Singh, chief financial officer Paresh Thakkar, and Harshvardhan Singh were granted bail by the Gujarat High Court.
AU Small Finance Bank: The lender has tied up with Motilal Oswal to offer trading accounts.
PNB Housing Finance: Rating agency CRISIL has cut PNB Housing Finance's rating outlook to ‘negative’.
Minda Industries: The company has redeemed commercial papers (CPs) worth Rs 30 crore.
GTPL Hathway: Viren Thakkar has resigned as the chief financial officer of the company with effect from July 31, 2019.
IndiGo/Jet Airways: Indigo wants to bid for Jet Airways assets, according to a Business Standard report. Jet Airways assets include 3 B737 planes, 49.9 per cent stake in Jet Previlege and slots across airports.
ICICI Bank: Morgan Stanley maintains ‘overweight’; target pricet at Rs 625 per share.
JP Morgan maintains ‘overweight’; target price at Rs 500 per share.
Maruti Suzuki: CLSA maintains ‘buy’; target price at Rs 7,400 per share.
Morgan Stanley maintains ‘overweight’; target price at Rs 8,149 per share.
UBS maintains ‘sell’; target price at Rs 5,800 per share.
Vedanta: CLSA maintains ‘sell’; target price at Rs 145 per share.
JSW Steel: CLSA retains ‘sell’; target price at Rs 200 per share.
Bajaj Auto: Morgan Stanley maintains ‘equal-weight’; target price at Rs 2,646 per share.
CLSA retains ‘sell’; target price at Rs 2,275 per share.
Havells: Citi maintains ‘buy’; target price at Rs 696 per share.
M&M Finance: Morgan Stanley maintains ‘overweight’; target price at Rs 400 per share.
Tata Motors: Credit Suisse maintains ‘outperform’; target price at Rs 210 per share.
Biocon: Citi maintains ‘buy’; target price at Rs 350 per share.
Bajaj Finance: HSBC maintains ‘buy’; target price at Rs 3,465 per share.
PI Industries: HSBC maintains ‘buy’; target price at Rs 1,250 per share.