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: Wall Street edged higher to new records with muted gains. Dow closed around 30 points higher, S&P 500 ended flat, while Nasdaq ended 0.2 per cent higher. Dow and Nasdaq set records for a second consecutive day. The yield on 10-year Treasuries declined four basis points to 2.09 per cent. Markets are eyeing US retail-sales report, bank earnings this week. US June retail sales are expected to rise from the previous month.
*Asian Markets: Asian markets opened mixed in trade. Investors are awaiting clues from RBA meeting minutes. Nikkei 225 slipped 0.23 per cent post a holiday.
*European Markets: Europe stocks closed higher as early gains on the Wall Street helped European bourses consolidate gains. Stoxx 600 rose 0.2 per cent in trade. Telecoms stocks fell 0.7 per cent, while auto scrips led gains.
*Crude: Crude continues to trade under pressure, with oil prices down for second consecutive session. Oil fell after US Gulf of Mexico output returns. WTI fell below $60/bbl in overnight trade and continues to trade below $60/bbl mark. Oil prices decline in Asian hours of trade. Brent declined 0.2 per cent to $66.34/bbl. WTI fell 0.22% to $59.45/bbl.
Stocks In News
DHFL: DHFL’s survival hinges on the Rs 3,000-crore equity infusion. The company needs between Rs 2,500 crore and Rs 3,000 crore of fresh equity investments to sustain lending operations.
Mutual funds (MFs) differ with banks over DHFL resolution, and may opt for the Debt Recovery Tribunal (DRT) route to recover their Rs 4,000 crore investment. A meeting is now scheduled between banks and MFs to find a middle path.
Suzlon Energy: Suzlon is staring at a default on redemption of FCCBs worth $172 million (Rs 1,200 crore) due today, and has told bondholders to hold on. The resolution hinges on banks’ approval of settlement plan, Brookfield deal.
Vodafone Idea: The telecom operator has repaid a sizeable chunk of around Rs 4,300 crore loans due to be cleared in this financial year. The company has used a portion of its Rs 25,000-crore rights issue proceeds. It has repaid loans amounting to Rs 300 crore to Axis Bank, and cleared its loans with SBI of Rs 3,210 crore.
Hindustan Unilever: HUL is launching a new laundry brand after three decades. The brand will compete with Future Consumer’s Voom in terms of positioning. The liquid detergent will be priced at over double that of Voom. The launch appears to be aimed at Future Group, which had recently cut HUL’s shelf space to make space for their own line of detergent products.
Brigade Enterprises: The company's board has issued bonus share in the ratio of 1:2, and has also approved preferential issue of 4.3 million warrants for Rs 115 crore.
HDFC Bank: The lender will consider special interim dividend on July 20.
State Bank of India: The Reserve Bank of India (RBI) has imposed a Rs 7 crore penalty on the bank for violating income recognition rules for financial year 2016-17.
Union Bank: The Reserve Bank of India (RBI) has imposed a monetary penalty worth Rs 10 lakh on the bank for non-compliance of cyber rules.
Ashok Leyland: The company’s plant situated at Pantnagar will remain closed temporarily, from July 16 to July 24, due to weak demand and outlook for the industry.
Cipla: The drug maker will set up a joint venture (JV) company in China with Jiangsu Acebright, in which Cipla EU will hold 80 per cent stake. Cipla EU is set to invest up to $24 million in the JV over a period of four years.
NTPC: The firm will raise Rs 4,300 crore through issue of NCDs on private placement basis, at a coupon rate of 7.32 per cent and 10 years maturity. It will use proceeds to refinance existing debt and general corporate requirements.
Jubilant Life Sciences: The company announced a price increase of 10 per cent for Vitamin B3 with immediate effect, for non-contract customers and wherever existing contracts permit.
EID Parry: The company’s board will consider raising Rs 100 crore through non-convertible debentures (NCDs) on July 29.
Apollo Hospitals: The promoter of the hospital chain has pledged 4.31 per cent stake on July 12.
Greaves Cotton: The company has raised stake in Ampere Vehicles to 81.23 per cent.
Aditya Birla Fashion: The company has acquired 51 per cent stake in Finesse International Design for Rs 60 crore. The acquisition is through a combination of primary equity infusion and secondary share purchase.
Sugar Companies In Focus: Sources have told Reuters that the Indian government will keep sugar export subsidies in the next marketing year. It could make changes in sugar export incentives to make them WTO compatible.
Wipro: Citi recommends 'sell', sets target price of Rs 255
Tata Steel: Citi recommends 'sell', sets target price at Rs 435
Adani Ports: Nomura maintains 'neutral', target price at Rs 460
L&T Tech: HSBC initiates 'buy', target price at Rs 2,100
Ashok Leyland: Jefferies maintains 'underperform', target price at Rs 75
Bajaj Auto: Jefferies maintains 'underperform', target price at Rs 2,430
Hero Moto: Jefferies maintains 'hold', target price at Rs 2,610
Mahindra & Mahindra: Jefferies maintains 'buy', target price at Rs 720
Maruti: Jefferies maintains 'buy', target price at Rs 7,100