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: Dollar Index (DXY) ended the week above the 98.10 support, at two-week highs around 98.20. US 10-year yields approached the 1.55 per cent area. The US dollar was supported by a stronger-than-expected buildings permits report. US Treasury yields bounced higher after plunging last week.
Asian Markets: Asian markets opened higher after the People’s Bank of China said it will improve the mechanism used to establish the loan prime rate from this month.
US Markets: US markets rallied as bond yields rebound. Dow rose over 300 points, S&P 500 ended 1.4 per cent higher, while Nasdaq closed with gains of 1.7 per cent. Bond yields climbed back from their historic lows on Friday. Yield on the benchmark 10-year Treasury note was last at 1.57 per cent, while yield on the 30-year Treasury bond was at 2.06 per cent.
European Markets: European markets ended higher with the pan-European Stoxx 600 index closing provisionally up almost 1.3 per cent.
Crude: Crude rose in the morning hours of trade with Brent up 0.75 per cent and WTI trading 0.64 per cent higher. Crude prices climbed after two-day drop on Friday. OPEC sees bearish oil market for rest of 2019.
STOCKS IN NEWS
Sun Pharma: The company has entered into a licensing agreement for generic products with China Medical System. The terms of agreement will be 20 years from first commercial sale in Mainland China.
Coffee Day Enterprises: The promoters of the Coffee Day Group plan to restart talks with Coca-Cola for selling a chunk of their stake in the Café Coffee Day (CCD) chain, according to an Economic Times report. Group company Sical Logistics is also seeking to divest assets.
Tata Motors: The carmaker has told vendors to brace for double-digit decline in business in the ongoing financial year due to downturn on cyclical and non-cyclical factors, according to an Economic Times report. The firm says sales could fall 10-20 per cent.
TVS Motors: The firm’s Singapore arm has invested $3.2 million in a US-based AI-driven predictive maintenance analytics solutions provider Predictronics Corp.
Oil and Natural Gas Corp: The company has set a target to double oil and gas output from its domestic and overseas fields and expand its refining capacity three-fold alongside diversification into renewables in a new vision document for 2040.
Bosch: Bosch India Chairman VK Viswanathan has resigned.
Usha Martin: The Enforcement Directorate (ED), Patna, has provisionally attached immovable properties of Usha Martin valued at around Rs 190 crore, in connection with the sale of iron ore extracted from the mines in Ghatkuri, West Singhbhum, Jharkhand, allotted for captive use for the company. Usha Martin is planning to take legal course against the order dated August 9.
DHFL: Dewan Housing Finance Corporation Ltd. (DHFL), which is facing liquidity crunch, has decided to delay earnings announcement for the second straight time. The firm said the financial statements for the first quarter would be finalised by September 14.
Meanwhile, sources have told BTVI that lenders to DHFL have decided to restructure term loan for its retail books. The banks will give incremental loan to DHFL, in the range of Rs 10,000-18,000 crore, for wholesale real estate project. The banks will convert small portion of debt to equity in wholesale books. No investor are on board as yet for the DHFL. The promoter stake of Kapil Wadhawan will be reduced to 10 per cent, while the banks will take majority equity stake.
Bharti Airtel: Bharti Airtel said the first wave of 5G smartphones in India must be priced under Rs 21,300 to drive mass consumption of the ultra-fast wireless broadband service, according to an Economic Times report.
Mahindra & Mahindra: The automaker has inaugurated its first local automotive assembly plant in Sri Lanka. The assembly plant rolled out its first product, the compact SUV, KUV100. It will roll out a slew of products over the next three years.
Meanwhile, according to a Mint report, M&M has deferred new investments to cope with slowdown in demand. The report says about 15-20 per cent of capex from original plan could be deferred. M&M has cut about 1,500 jobs of temporary workers since April 1, 2019.
Maruti Suzuki: The company is pitching for tax relief for hybrid and CNG cars in addition to electric vehicles (EVs). It expects mass acceptance of to take some time considering the high cost of technology. It pegs hybrid cars to be 25-30 per cent more efficient.
Titan: The company has bought 2.8 per cent stake in subsidiary Carat Lane at Rs 328 per share. Its shareholding in CaratLane has increased to 72.3 per cent from 69.5 per cent.
Info Edge: The company will invest Rs 47 crore in cash in Shop Kirana E-Trading through unit.
JK Tyre: JK Tyre will buy an additional 5 per cent share in Cavendish Inds for Rs 40 crore.
Parsvnath Developers: The real estate firm has received Rs 1,200 crore from Rail Land Development Authority (RLDA) as per court order. It plans to use it to reduce debt.
Kotak Mahindra Bank: The bank has cut three-month to three-year MCLR by 10 basis points.
UCO Bank: The lender said it is confident of coming out of RBI’s PCA framework by March 2020.
Bank of India: The lender hopes to recover Rs 2,500 crore from resolution of 10 big NPA cases in NCLT. It said NPAs have "tapered out" and the bank is on growth path.
Ujjivan Financial Services: Ujjivan Small Finance Bank has filed DRHP for Rs 1,200 crore IPO. It seeks to raise Rs 1,200 crore, including reservation of equity shares up to Rs 120 crore. It may consider a pre-IPO placement of Rs 300 crore.
Kridhan Infra: The company’s arm Vijay Nirman has won Goa Airport order worth Rs 145 crore.
Walchandnagar Industries: CARE revised its long-term credit rating for the firm’s bank facilities to BB/Stable from BB+/Stable.
DCM: CRISIL has downgraded long-term rating to D from BB+/Watch Negative.
Sobha: Morgan Stanley maintains ‘overweight’; target price at Rs 613 per share.
Glenmark: Morgan Stanley maintains ‘equal-weight’; target price at Rs 394 per share.
ICICI Bank: JP Morgan maintains ‘overweight’; target price at Rs 500 per share.
Ambuja, Ultratech: JP Morgan maintains ‘overweight’; target price for Ambuja Cement at Rs 250 per share; and for Ultratech at Rs 5,250 per share.
Bharti Airtel: Goldman Sachs maintains ‘buy’; target price at Rs 415 per share.
Maruti Suzuki: CLSA cuts FY20-21CL EPS by 8-10 per cent and lowers target price to Rs 7,200 per cent share Rs 7,400; but retains ‘buy’.
Indraprastha Gas: CLSA retains ‘buy’; target price at Rs 390 per share.