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.
* US stocks on Monday fell from previous week’s record highs as investors took a breather ahead of an expected Fed rate cut and possible progress from US-China trade talks taking place in Shanghai. Dow Jones rose 28.9 points, or 0.11%, to 27,221.35. S&P 500 lost 4.89 points, or 0.16%, to 3,020.97. Nasdaq dropped 36.88 points, or 0.44%, to 8,293.33.
* The US dollar held steady on Wednesday as traders await results of the Fed rate cut meeting due later today. The dollar index stood little changed at 98.036 after pulling back from a two-month high of 98.206 touched on Tuesday.
* European shares slipped on Tuesday amid forecasts from Bayer and Lufthansa souring market sentiment. German stocks index fell 0.5% by 0758 GMT, while the broader pan-European STOXX 600 lost 0.4%.
* Asian shares saw a weak start in early trade on Wednesday amid fresh US-China trade war concerns despite ongoing trade talks. The possibility of a no-deal Brexit also loomed heavy on market sentiment. MSCI's broadest index of Asia-Pacific shares was down 0.04% while Japan's Nikkei .N225 slid 0.84%.
* Oil prices rose for the fifth consecutive day on Wednesday, buoyed by a bigger than expected drop in US inventories. The fall in inventory was significantly higher than analyst expectations. Brent was up 33 cents, or 0.5%, at $65.05/barrel while US WTI gained 28 cents, or 0.5%, to $58.33 a barrel.
STOCKS IN NEWS
Zee Entertainment: Zee may consider a binding offer from financial investor for partial stake sale. Binding pact may be favoured as it will give promoters Subhash Chandra, Punit Goenka control of the company. Zee promoters received two offers: one binding offer from a global financial investor for partial stake, while the other is a non-binding offer from a consortium led by Comcast. The final decision on this is likely to be taken today.
Aurobindo Pharma: Aurobindo’s Sandoz deal may face further delays as US Federal Trade Commission is yet to clear the deal. In 2018, the pharma major announced it will buy Sandoz’s commercial operations for $900mn. If the deal comes through it will make Aurobindo the second largest generics firm in the US by prescriptions.
RIL: Jio to raise $1 bn via offshore loans guaranteed by Korea Trade Insurance Corporation to buy telecom gear. The company plans to start a range of financial services in addition to its already existing payments bank and mobile wallet.
PFIZER: The pharma major is set to combine its subsidiaries Mylan with Upjohn. Upjohn is Pfizer's off-patent branded and generic established medicines business. The new company expects to achieve a ratio of debt to adjusted EBITDA of 2.5x by 2021 as well as have pro forma 2020 revenues of $19 to $20bn.
Bandhan Bank: Shareholders approved merger of Gruh Finance with the bank.
RBL Bank: RBL Bank has exposure to operating units of Coffee Day Group, most of which is secured by primary securities, land.
Maruti Suzuki: All variants of petrol Ertiga prices are set to increase.
Jet Airways: The Committee of Creditors is set to meet on August 1.
Lakshmi Vilas Bank: The Bank is set to cut MCLR by 5 bps across tenors from Thursday.
Union Bank: The bank has reduces lending rates up to 20 bps across all tenors. It cut both overnight and one month MCLR to 8.10% from 8.25% & 8.30% respectively.
CLSA maintains ‘Buy’; lowers target price from Rs 1,000 to Rs 900 per share.
Nomura maintains ‘Buy’; target price at Rs 900.
CITI maintains ‘Buy’; revises target price to Rs 900.
Morgan Stanley maintains ‘Over Weight’; target price at Rs 1,100.
BNP Paribas maintains ‘Buy’; target price at Rs 904.
CLSA retains ‘Outperform’ but cuts target price from Rs 800 to Rs 740.
Credit Suisse maintains ‘Outperform’; target price at Rs 730.
Macquarie maintains ‘Outperform’; target price at Rs 800.
JP Morgan maintains ‘Over-Weight’; target price at Rs 640.
Citi maintains ‘Neutral’; cuts target price to Rs 705 from Rs 780.
Morgan Stanley retains ‘Over-Weight’; cuts target price to Rs 765 from Rs 850.
CLSA retains ‘Sell’; cuts target price to Rs 2,100 from Rs 2,350 earlier.
Credit Suisse maintains ‘Outperform’; target price at Rs 2,710.
CITI maintains ‘Outperform’; target price at Rs 121.
JP Morgan downgrades to ‘Neutral’ from ‘Outperform’; target price at Rs 20,000.
Kotak Institutional Equities retains ‘reduce’; target price at Rs 700.
Morgan Stanley maintains ‘Under-Weight’; target price to Rs 775.
HSBC maintains ‘Hold’; target price at Rs 34.
Citi maintains ‘Sell’; cuts target price to Rs 27 from Rs 36.