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 markets fell sharply in trade after an initial big surge earlier in the day. Dow ended 280 points lower after rallying over 300 points while S&P 500 closed the session down by 0.9% after rallying more than 1% during the day. Nasdaq closed 0.8% down after jumping more than 1.6%.
* Asian markets opened with a negative bias amid Trump announcing more tariffs on China. Trump will reportedly put 10 per cent tariffs on another $300 billion worth of Chinese goods starting September 1. Trump, however, later in the day said that levies could go up to 25 per cent. US-China negotiations are set to resume in Washington in early September.
* US President Donald Trump spoiled the party for dollar index as he announced additional tariffs on China which sent the US Dollar down. Benchmark 10-year yield slid to 1.892%, hitting its lowest level since November 2016. The 2-year rate fell to trade at 1.752%.
* European markets ended higher. Bank of England held rates at 0.75% as it cut its growth forecast in the face of increased Brexit worries and a slowing global economy. European stocks finished higher Thursday despite early losses.
* Oil attempted to stage a recovery in morning trade after it saw the largest plunge in 4 years on Thursday amid the trade turmoil. On Thursday, WTI was down 7.9% at $53.95 per barrel. Brent crude saw its worst day since February 2016 as it dropped more than 6% to $60.67 per barrel. Friday morning saw Brent up by 1.24% to $61.25/bbl and WTI up by 1.04% at $54.51/bbl.
* Gold prices spike as investors look for safety
STOCKS IN NEWS
Cipla: Cipla is in talks to back e-pharmacy Medlife with an investment of Rs 150-170 crore.
DHFL: DSP MF initiated legal action against DHFL to recover dues. DSP MF holds NCDs of DHFL estimated at Rs 169 crore.
Jet Airways: Four potential bidders show early interest in troubled Jet Airways. SBI Capital Markets reached out to as many as 20 potential investors.
On the other hand, lenders are unable to infuse additional capital to pay salary to employee. Lenders are yet to release previously approved interim funding of Rs 70 crore.
The Committee of Creditors (CoC) will be voting on evaluation criteria for potential bidders as well as terms of request for resolution plan.
Talwalkars Healthclubs: The company defaulted on Rs 2.5 crore interest on term loan and is currently in talks with lenders for restructuring debt.
Talwalkar Better Value Fitness: CARE downgraded the company’s long term facilities and NCDs worth Rs 190 crore to 'B' from 'A+' while ICRA downgraded NCDs worth Rs 80 crore to B- from BBB- saying that the company is cooperating.
Coal India: Coal India July offtake stood at 46.8 mn tn, down by 2.9% (YoY). Its total outpur in the first quarter of FY20 posted at 38.50 mn tn, down by 5.1% on a year-on-year basis.
Yes Bank/ HDIL: Allegations of evergreening funds were made against HDIL and Yes Bank. Offshore investor Ocean Deity, which owns majority stake in a joint venture with HDIL entities, has alerted the RBI on the matter. Yes Bank was the banker to the JV called Mack Star Marketing Pvt Ltd. Ocean Deity alleges that Yes Bank gave unauthorised loans to JV which was not then moved to other HDIL group companies.
PSP Projects: PSP Projects Bagged order worth Rs 86.2 crore. With the new order, total work orders received for FY20 stands at Rs 848.8 crore.
JK Tyre: The company is set to acquire 26% stake in Treel Mobility Solutions for Rs 6 crore. The acquisition will help the co. in synergizing the sensors business with tyre business. The acquisition is expected to be completed within 60 days.
Allahabad Bank: The Reserve Bank of India has imposed Rs 2 crore penalty on Allahabad Bank for non-compliance.
Oriental Bank of Commerce: RBI imposed a penalty of Rs 1 crore on OBC.
Yes Bank: Yes Bank cut overnight MCLR by 5 bps, and raised 1-year by 5 bps.
NALCO , Hindustan Copper: NALCO, HCL and MECL form joint venture company for acquisition of critical minerals. The JV is aimed at acquiring, exploring and processing strategic minerals abroad for commercial use. NALCO will likely hold 40% stake in the JV while Hindustan Copper will hold 30% stake. The initial focus will be on Lithium and Cobalt.
Morgan Stanley maintains ‘Equal-Weight’; target price at Rs 360/share.
CLSA maintains ‘Buy’; cuts target price to Rs 390 from Rs 415.
Goldman maintains ‘Buy’; target price at Rs 101.
Nomura maintains ‘Neutral’; cuts target price to Rs 72.
Nomura downgrades to ‘Neutral’; cuts target price to Rs 170.
Goldman maintains ‘Buy’; target price at Rs 580.
Credit Suisse downgrades to ‘Underperform’ from ‘Neutral’; target price at Rs 430.
Nomura maintains ‘Buy’; target price at Rs 652.
CLSA downgrades to ‘Underperform’ from ‘Buy’; cuts target price to Rs 645 from Rs 800.
Credit Suisse maintains ‘Neutral’; cuts target price to Rs 625 from Rs 650.
Macquarie maintains ‘Outperform’; target price at Rs 762.
HSBC maintains ‘Hold’; cuts target price to Rs 680 from Rs 710.
Morgan Stanley maintains ‘Overweight’; target price at Rs 860.
Morgan Stanley maintains ‘Overweight’; target price at Rs 410.
Credit Suisse maintains ‘Outperform’; target price at Rs 425.
Macquarie maintains ‘Neutral’; target price at Rs 83.