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, the 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.
Dollar Index: Dollar Index (DXY) is stable above 98.10 as bulls are looking at the 2019 high. DXY started the week quietly holding above the 98.10 level. It was at 98.363 after seeing lows below 97.5 last week. The US dollar is trading near 2019 high.
Asian Markets: Asian markets edged higher in trade. The People’s Bank of China is set to debut its new loan prime rates under a new mechanism.
US Markets: US stocks continued to bounce back from last week’s sharp sell-off. Wall Street rose sharply as Treasury yields rebounded. US agreed to extend a temporary reprieve to Chinese telecom giant Huawei. Dow ended 250 points higher, S&P 500 1.2 per cent higher, while Nasdaq advanced 1.4 per cent. The benchmark 10-year Treasury yields rose to about 1.6 per cent from around 1.54 per cent. Senior White House officials are eyeing tax cut to avert slowdown. US Treasury yields climb as recession fears ease.
European Markets: European markets closed higher in trade as stimulus hopes drive up shares for second session. The pan-European Stoxx 600 jumped 1 per cent during afternoon deals; basic resources surge 2 per cent. UK's new Prime Minister Boris Johnson has told Germany and France for a Brexit deal.
Crude: Oil prices steadied after rallying back above $56 a barrel mark. Oil rose 2 per cent after attack on Saudi field, stimulus expectations in overnight trade.
STOCKS IN NEWS
Mahanagar Gas: Shell plans to exit Mahanagar Gas through a block deal worth Rs 724 crore. Shell has offered 98.8 lakh shares of MGL in placement. The company is seeking $102 million (~Rs 724 crore) after selling remaining MGL stake. MGL offered floor price of Rs 733 per share.
Dewan Housing Finance Corporation: The cash-strapped mortgage lender has defaulted on payment of NCDs and CPs worth Rs 1,571 crore due on August 19.
Meanwhile, Dewan Housing Finance Corporation (DHFL) parent Wadhawan Global Capital, is selling its loan distribution business Andromeda Sales and Distribution to London-based metal trading firm, Metdist Group of companies, for close to Rs 150 crore to raise capital to meet debt obligations at DHFL, according to a Mint report.
Eicher Motors: Royal Enfield’s BS-VI roll-out plans ride on outcome of IP case and the company might face hurdles if it fails to resolve a patent infringement dispute with Flash Electronics in a US court, according to a Mint report. If this matter does not get resolved, the firm might have to look for a new foreign supplier. The issue relates to the usage of regulator rectifier, a component mandatory for all BS-VI compliant products.
Essel Group Stocks In Focus: Essel Group is set to repay mutual funds Rs 2600 crore this week, according to an Economic Times report. The fund houses with Zee shares as collateral will be paid out of Rs 4,200 crore received from stake sale. Essel promoters’ pact with MFs gave them time till September 30 to repay debt.
Tata Motors: CARE Ratings has downgraded the company’s credit rating to AA- from AA, with a negative outlook, on weak performance of Jaguar Land Rover.
Vodafone Idea: The telecom major’s CEO Balesh Sharma has stepped down with immediate effect citing personal reasons. The company has appointed Ravinder Takkar as the MD & CEO for three years.
Mangalore Refinery and Petrochemicals: The company has resorted to a safety shutdown of its phase-3 units following a minor landslide in the area. Phase-1 and 2 of refinery complex, product despatch facilities are operating normally.
Hero Motocorp: The automaker has clarified that it has not participated in fund raising for e-mobility startup Blu Smart Mobility.
Punj Lloyd: LIC has reduced stake in Punj Lloyd by 2.14 per cent to 3.33 per cent through open market sale.
Hindalco: LIC has raised stake in Hindalco Industries by 2.07 per cent to 10.40 per cent through open market purchase.
Crompton Greaves Consumer Electricals: LIC has reduced its stake in the company from 5.2 per cent to 3.1 per cent through open market sale.
Himachal Futuristic Communications: The company has bagged orders worth Rs 2,467 crore from BSNL for defence communication network. The project is to be completed in the next 18 months.
Bank Of Maharashtra: The lender has reduced interest rate on savings accounts by 25 basis points.
National Fertilizers: ICRA has reaffirmed the company’s debt rating, and has revised its outlook to ‘negative’ from ‘stable’.
LT Foods: The company’s board has approved transfer of UK subsidiary to US subsidiary to consolidate its international business.
Telecom Firms In Focus: Bharti Airtel and Vodafone Idea lost 4.17 million subscribers in June, while Reliance Jio added 8.26 million users.
Nestle India: The company has launched its cocoa-malt beverage Milo in India.
Sonata Software: The company’s European arm completed the sale of its entire stake in Izara ApS.
Reliance Industries: Reliance Industries (RIL) and BP plan to offer electric vehicle (EV) charging points at their energy stations across India, according to a Mint report. BP operates UK’s largest EV charging network.
Reliance Industries: Credit Suisse upgrades to ‘neutral’; raises target price to Rs 1,210 per share from Rs 1,028.
NTPC: CLSA maintains ‘buy’; target price at Rs 165 per share.
Antique maintains ‘buy’; target price at Rs 160 per share.
VA Tech: Nomura maintains ‘buy’; cuts target price to Rs 445 per share from Rs 520.
L&T Infotech: Credit Suisse maintains ‘outperform’; target price at Rs 1,900 per share.
MGL: Jefferies maintains ‘buy’; target price at Rs 1,030 per share.