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 lower in trade. Nasdaq-style tech board, the STAR market, will launch in Shanghai today. Japanese Prime Minister Shinzo Abe’s ruling coalition won a majority in the upper house of Parliament in elections.
US Markets: US markets ended lower, with S&P 500 closing 0.6 per cent lower, Nasdaq falling 0.7 per cent, and Dow ending 0.3 per cent lower after rising more than 100 points in intraday trade. Wall street posted weekly losses, with stocks witnessing their worst performance since late May. S&P 500 and Nasdaq Composite fell more than 1 per cent each, notching their biggest weekly loss since late May, while Dow ended 0.6 per cent lower for the week. The indexes lost most of their earlier gains after Iran said it captured a British oil tanker. US Federal Reserve President John Williams said the Fed should “act quickly” while the economy is slowing and rates are low. Meanwhile, US and Chinese officials discuss trade over the phone, and Treasury Secretary Steven Mnuchin suggested face-to-face talks could follow.
European Markets: European markets ended marginally higher, with the pan-European Stoxx 600 closing 0.1 per cent higher. Philip Hammond announces resignation as chancellor.
Crude: Crude prices advanced in the morning hours of trade, with Brent up 0.9 per cent at $63.02/bbl and WTI up 0.3 per cent at $55.78/bbl. Tensions between Iran and the West continue to escalate. Oil prices jump after the US Navy shot down an Iranian drone in the Strait of Hormuz.
STOCKS IN NEWS
Reliance Industries: Reliance Industries (RIL) has signed pact with Brookfield for an investment of Rs 25,215 crore in tower infra trust units. The proceeds from investment will be used to repay certain financial liabilities of Jio.
Jet Airways: Etihad and Hindujas are back at the deal table for Jet Airways, with the two sides again holding discussions and examining funding requirements.
DHFL: Lenders to DHFL are expected to offer six-month moratorium on loan repayments. The company will pay only the due interest on outstanding bonds under new debt restructuring plan, which will be put up by July 25 and be operational before September 25. The restructuring will enable infusion of necessary liquidity into the company.
IndiGo: The airline has decided to expand its board to 10 directors, with four of them being independent directors. Currently, it is a six-member board, including two independent directors.
BHEL: The company has bagged Rs 486-crore order from NPCIL for Kudankulam project.
Cipla: The pharma major has received seven observations from the USFDA for its Bengaluru API facility. None of the observations are repeat or related to data integrity. USFDA had conducted a routine cGMP inspection from July 15 to July 19.
The company’s board has approved issue of shares and securities to raise Rs 3,000 crore.
Dr. Reddy's Laboratories: The pharma firm has closed the sale of US rights for two drugs.
Axis Bank: The lender’s board has approved raising up to Rs 18,000 crore via securities.
The bank has reduced MCLR by 5 basis points across tenures.
McLeod Russel: Deloitte has resigned as auditor of the company over FY19 financial statements.
South Indian Bank: The lender has kept MCLR unchanged in range of 8.60-9.50 per cent.
CG Power: The company has bagged a contract for 400-MW wind farm in Saudi Arabia valued at 12.5 million euros.
Strides Pharma: The USFDA has completed inspection of flagship Bangalore facility with a VAI classification. VAI stands for Voluntary Action Indicated. The flagship facility in Bangalore is the largest manufacturing facility for the company, and services the key regulated markets of the US, Europe, and Australia.
Cox & Kings: Lenders to the company has invoked 3.7 per cent of pledged promoter stake on July 12-18.
Piramal Enterprises: The company has raised Rs 1,500 crore from Standard Chartered Bank through non-convertible debentures (NCDs). The money will be used to meet working capital requirement.
HDFC: The bank’s joint venture with Goldman Sachs, Good Host Spaces, is betting big on student housing and is planning to expand its capacity nine-fold to 125,000 beds by 2021 to tap demand for hostels.
Suzlon Energy/Union Bank Of India: Union Bank has tagged Suzlon Energy as a bad loan, and more banks are expected to follow suit. The non-performing loan (NPA) tag will force banks to set aside money to cover losses on their exposure.
Punj Lloyd: Sterlite Power, Welspun Enterprises, and a few Others have submitted their bid for Punj Lloyd. The expressions of interest (EoIs) for the company were submitted last week. The resolution plans have to be submitted by August 14.
June Aviation Data: The domestic air passenger traffic in June grew by 6.2 per cent year-on-year to 12.03 million. IndiGo’s market share stood at 48.1 per cent vs 49 per cent in May, while SpiceJet’s stood at 15.6 per cent vs 14.8 per cent MoM, and AirIndia’s market share stood at 12.9 per cent vs 13.4 per cent MoM.