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 is in wait-and-see mode, ending the day virtually unchanged near the 97.55 level, edging down alongside declining British pound. The dollar index decreased 0.09 per cent at 97.5505. It was at 97.608 after seeing lows below 97.5 as markets weighed the impact of the trade war on US interest rates.
Asian Markets: Asian markets open mixed in trade as China sets the yuan midpoint at 7.0039 per dollar, weakest since April 2008. Markets are eyeing China trade data.
US Markets: Dow recovered nearly 600 points to end 0.1 per cent higher, Nasdaq ended 0.4 per cent higher and S&P 500 eked out a small 1 per cent gain after dropping nearly 2 per cent. 10-year bond yield dropped under 1.6 per cent, while the 30-year yield is nearing record low as collapse in rates accelerates.
European Markets: European markets ended higher in trade, led by gains in travel and leisure stocks. Oil and gas stocks tumbled after oil prices plummeted. British PM Boris Johnson has pledged to leave the EU by the deadline with or without a deal.
Crude: Oil recovered in the morning session with Brent and WTI up 2.3 per cent and 2.6 per cent, respectively. Oil fell 4.7 per cent on fears of a global slowdown in overnight trade to seven-month low. Oil prices have lost more than 20 per cent since their 2019 peak in April. US crude oil inventories are about 2 per cent above the five-year average for this time of year. Gasoline inventories rose 4.4 million barrels. Brent has plunged more than 12 per cent since last week.
Gold: The yellow metal surged above $1,500 per ounce mark, its highest level in more than six years.
STOCKS IN NEWS
Bharti Airtel: Singtel is likely to raise its stake in Bharti Telecom, the single largest shareholder in Bharti Airtel, to beyond 50 per cent, according to an Economic Times report.
Tata Steel: The company has executed an MoU to divest 70 per cent of its shareholding in Thailand unit to Synergy.
Piramal Enterprises: Private equity funds are lining up Piramal and TPG’s stake in Shriram Capital. According to an Economic Times report, Advent International, Blackstone Group, CVC Capital, Carlyle Group and Brookfield have placed initial bids to buy around 30 per cent in Shriram Capital.
Novartis India: The US Food and Drug Administration (FDA) said the company had manipulated data, while seeking approval for Zolgensma, the “world’s most expensive drug", used to treat children with spinal muscular atrophy, according to a Mint report.
Reliance Industries: Reliance Industries, through its arm Reliance Brands, has partnered with iconic US-based luxury jeweller Tiffany & Co to open a line of stores in the country, adding yet another marquee name to its growing portfolio of brands. The JV will open new stores in Delhi and Mumbai over the next one year.
Wipro: The IT major has bagged a five-year contract from ADM Aeroports De Montreal.
Suzlon: The company said it is not aware of bondholders contemplating any action, and it continues to work on holistic solution for debt. The firm is in in discussions with stakeholders on outstanding debt.
Maruti Suzuki: The automaker’s July output stood at 133,265 units against 178,533 in the year-ago month.
Uttam Sugar Mills: The company has approved setting up of incineration boiler at its Barkatpur unit for Rs 50 crore. It also approved setting up of distillery at its Libberheri unit for Rs 65 crore.
Rolta: The company has executed restructuring services pact with Streamcast. Streamcast will assist in repayment and recasting liability.
Interglobe Aviation: IndiGo's independent director Anupam Khanna has called upon Chairman M Damodaran to have 'confidence-building measures' to remove the 'trust deficit' that has built up in the Board of India's largest airline. Khanna has called for appointment of 4 independent directors on board before policy changes are introduced.
Dilip Buildcon: The company’s promoters will sell shares in open market to achieve minimum public shareholding.
Bosch: The firm proposes suspension of operations at Gangaikondan plant for 5 days and Nashik plant for eight days to adjust production to meet demand and avoid inventory buildup.
Dish TV: The company said it is not aware of any merger proposal with Airtel Digital.
Gujarat Alkalies: The company said the operation of phosphoric acid plant at Dahej complex has been restored. However, the operation of other plants are still shut down.
NBCC India: The company has won contracts worth Rs 202 crore in June-July.
Indraprastha Gas: Publicly traded city gas distribution entities will set up nearly 340 compressed natural gas stations across their geographical areas in the next two years, according to a Mint report. Indraprastha Gas (IGL) will alone add 100 stations, taking its tally to over 600.
Power Grid/ GAIL/ MTNL: Public sector units (PSUs) may garner up to Rs31,000 crore from asset monetisation, according to an Economic Times report. It says Niti Aayog has drawn up a list of assets, in consultation with administrative ministries, that can be sold. Power Grid has 1.45 lakh circuit km of transmission lines, GAIL has gas pipelines of 11,500 km and BSNL & MTNL has 70,000 towers.
NTPC: NTPC’s latest tender for 1,200 MW solar projects has found no bidder, according to an Economic Times report. Ceiling tariff, which was set at Rs2.78/unit, was perceived to be too low.
India Cements: The company is planning to set up a new integrated cement factory in Madhya Pradesh. It is also looking to set up a grinding unit in Uttar Pradesh. The total investment for expansion is expected in the range of Rs 1,300-1,400 crore. The move is expected to make the company a pan-India player.
SBI Life, Indian Bank: The banks have inked bancassurance pact, and over 2850 branches of Indian Bank will offer insurance products, according to a Business Line report.
Lupin: Citi maintains ‘sell’; target price at Rs 710 per share.
Credit Suisse maintains ‘overpriced’; target price at Rs 860 per share.
Cipla: CLSA downgrades from outperform to ‘sell’; cuts target price to Rs 460 per share from Rs 600.
Citi maintains ‘neutral’; target price at Rs 580 per share.
HCL Technologies: BNP Paribas maintains ‘buy’; cuts target price to Rs 1,200 per share from Rs 1,240.
Mahindra & Mahindra: CLSA retains ‘sell’; cuts target price to Rs 495 per share from Rs 590.
Morgan Stanley maintains ‘overweight’; target price at Rs 672 per share.
Tata Steel: CLSA recommends ‘sell’; cuts target price to Rs 320 per share from Rs 395.
Adani Ports: Citi maintains ‘neutral’; target price at Rs 416 per share.
Lemon Tree Hotels: CLSA maintains ‘buy’; cuts target price to Rs 81 per share from Rs 91.