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.
Asian Markets: Asian markets opened higher in trade as hopes rose by more more easing from the US Federal Reserve.
US Markets: The Wall Street indices ended higher after US Federal Reserve President John Williams stressed that central bankers need to act quickly and forcefully when rates are low and economic growth is slowing. S&P 500 ended 0.4 per cent higher, led by gains in consumer staples, while Nasdaq ended 0.3 per cent higher. Dow ended almost flat after dropping over 150 points. Bets have increased for a more than 25 bps rate cut.
Dollar Index: DXY got slammed on US Federal Reserve President John Williams' comments that central bankers need to act quickly and forcefully when rates are low and economic growth is slowing. DXY broke below the 97.00 mark and the 200 DSMA
Dollar Index fell below 200-day moving average. The index is likely to see bearish momentum in the near term.
European Markets: European stocks closed lower.
Crude: Oil prices bounced back in the morning session, with Brent up 0.4 per cent at $62.79/bbl and WTI up 1 per cent at $55.87/bbl. Crude fell 2.6 per cent in overnight trade. US Gulf oil platforms returned to service. US President Donald Trump said an American Navy ship had destroyed an Iranian done in a “defensive action”.
STOCKS IN NEWS
Vodafone Idea: Vodafone Idea is said to have hired Bank of America and Morgan Stanley for fibre sale. Bankers will initiate discussions with potential buyers to help sell its fibre assets. Fibre assets of the company could be valued at around Rs 13,000 crore.
Apollo Hospitals: Promoters of the company have raised Rs 1,000 crore from Credit Suisse to meet near-term debt repayment. The bridge financing raised by PCR Investments has a repayment period of 91 days. The loan is backed by pledged shares of the company and personal guarantee of promoters. PCR Investments has a 19.57 per cent stake in Apollo.
Thermax: The company has bagged a contract worth Rs 471 crore from India Power Co, for a project in Jharkhand.
IndiGo: The ministry of corporate affairs (MCA) has sought explanation related to complaint by promoter Rakesh Gangwal. The company said it will provide explanation to the MCA within the stipulated time period.
Consultancy firm EY has found no major irregularities in IndiGo dealings. The audit was conducted after co-promoter Gangwal questioned related-party transactions.
Jet Airways: Jet Airways' creditors are claiming Rs 24,890 crore, while the lenders are claiming Rs 6,440 crore from the insolvency process.
JSW Steel: JSW Steel will consider raising of long term funds via debt on July 26.
Bajaj Finance: The company has issued secured non-convertible debentures (NCDs) worth Rs 1,500 crore on private placement basis.
Future Consumers: The company has acquired Delect Spices and Herbs for Rs 4 crore via arm, and Delect has now become a subsidiary of FCL Tradevest.
Oriental Bank Of Commerce: CARE Ratings has revised the outlook of Tier I & Tier II Bonds of the bank from ‘Negative’ to ‘Stable’.
KRBL - Investor Letter: The company in the investor letter said it remains committed to grow core business in domestic as well as international markets. It expects to grow multi-fold over the next 5 years, and is targeting a topline of Rs 8,000 crore, from Rs 4,100 crore currently. It is also aiming at gaining 45 per cent domestic market share, from 35 per cent currently. The company said it continues to have a strong balance sheet with very little long-term debt, and most of the debt is in form of working capital loans. It added that the sanctions applied by the US on Iran would not affect the company.