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.
Here are some of the factors that may affect the stock market today.
* US markets surge for second consecutive session. Dow surged more than 500 points on Tuesday — its second-best day of the year. S&P 500 advanced 0.8%, Nasdaq ended 0.6% higher.
* US Dollar Index spiked up to 97.30 as hopes for a deal with Mexico are on the horizon. ISM non-manufacturing PMI came in better-than-anticipated at 56.9 versus 55.5. Potential deal with Mexico to prevent tariffs is sending the dollar higher.
* Fed Chair Jerome Powell opened the door to rate cuts amid investors’ expectations. Fed inclined to cut rates by 75 basis points by the end of the year.
* Short-term US government debt yields slumped on Wednesday. Yield on the benchmark 10-year Treasury note hovered at flatline around 2.12%.
* Asian markets opened marginally higher. Markets in South Korea are shut for a public holiday.
* European markets ended higher amid European Commission threatening disciplinary measures on Italy over the country’s rising public debt. The pan-European Stoxx 600 closed provisionally up 0.3%.
* Gold hovered close to 15-week high. Spot gold was up 0.4% at $1,329.57 per ounce. US gold futures settled up 0.4% at $1,333.60 an ounce.
* Oil sinks 3.4% to $51.68 — the lowest close since January. US commercial crude inventories jumped by 6.8 million barrels in the week through May 31. WTI futures declined 3.4% to $51.68 a barrel. Brent fell 2.2% to $60.63/bbl.
Stocks in news and brokerages for select stocks that are likely to affect the day’s trading.
Aurobindo Pharma: The USFDA conducted inspection at company’s formulation manufacturing unit at Hyderabad. The firm has received Form 483 with ten observations, none of them repetitive. The pharma major is set to be responding to USFDA within time. However, there has been no impact on existing business of facility.
Wipro: Shareholders approved buyback of 32.3 crore shares at Rs 325 per share. Total buyback size aggregates to Rs 10,500 crore. The company is also set to acquire International TechneGroup Incorporated (ITI) for $45 million. The acquisition is expected to be complete during the third quarter of FY20. ITI is an IP-based PLM & CAD products and solutions provider with a revenue of $23.3 million (FY18).
Zee Group: Essel infra sells two power assets to Edelweiss arm. The said deal gives Edelweiss the right to buy two other Essel assets. This sale is one of the many that the company is looking to make to meet obligations. Essel Group is looking to sell other non-core business including Essel Finance and MF.
Ashok Leyland, Tata Motors, Olectra Greentech , JBM Auto: The government has floated tender for 5,000 e-buses. The proposals for the tender are to be supported under FAME-II scheme. Selected cities will be offered a subsidy of 40% on cost or up to Rs 55 lakh per standard bus.
L&T Tech: OFS in non-retail category gets subscribed 1.34x times on day 1. The indicative price for OFS stood at Rs 1657.03/share.