Before the market opens, know about the many factors that can have an influence on share prices and on the general trading climate in the stock markets.
The important and interesting developments around the world, happenings in the global markets, sentiments, and the overall news related to a stock or a company 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.
Let’s know in detail the factors that could affect the stock markets today.
- Asian markets traded mixed.
- SGX Nifty indicated a negative start.
- US stocks posted a 5-day losing streak.
- US employment data badly missed expectations.
- European markets closed lower.
- Weak China, US data impacted European markets.
- US crude fell 1%, settling at $56.07.
- Indian Markets could open with mild positive bias due to positive Asia cues.
Important Business Updates & Stocks In News
SBI: The bank is linking Savings Bank Deposits with balances above Rs 1 Lk to Repo rate w.e.f May 1, 2019. The current effective rate is at 3.50% per annum. All cash credit accounts & overdrafts with Rs 1 Lk limit to be linked to the repo rate.
Dredging Corporation of India: The government has approved disinvestment of the company. Ports in Vishakhapatnam, Paradip, Deendayal & JNPT set to acquire Dredging Corp. The government has mobilied Rs 1,049 Cr with sale of Dredging Corp Of India.
Lakshmi Vilas Bank: According to sources Indibulls Housing appears to be leading in the race for Lakshmi Vilas Bank. Edelweiss and SREI Infra are exploring possibilities of a merger with Lakshmi Vilas Bank. Three other NBFCs are also said to have entered the race for Lakshmi Vilas Bank.
Sun Pharma: The company has received an USFDA tentative approval for Tofacitinib.
Lupin: According to sources the company has downsized the R&D team in Pune. There is no confirmation on number of employees who will be impacted. A similar rationalization had been undertaken in the last fiscal year where the company has to let go about 50 people.
Cipla: The company’s arm has completed the acquisition of stake in Wellthy Therapeutics. Subsidiary Goldencross Pharma has completed transaction for acquisition of 11.71% stake in Wellthy.
RIL: RIL has sold 3-year bonds to raise Rs7000cr. Axis Bank, Barclays, Nomura and ICICI Bank has bought these short-term papers. Axis is said to have subscribed to more than half the total at about Rs 4000 Cr.
RIL also plans to monetise its pan-India optic fibre assets to deleverage its balance sheet. Moelis, Citi and ICICI Sec have been appointed to reach out to potential investors across the globe. The company is in the process of de-merging fibre assets into a separate company. The assets could then be monetised via a sale and lease-back or InvIT structure.
Alok Industries: Sources to BTVI have said that Reliance Industries' offer for Alok Industries has been said to be allowed with riders. They have received a nod for RIL-JM Finance ARC Bid of Rs 5050 Cr for Alok Industries. RIL-JM Finance ARC would need certain permissions from the central government.
Sadbhav Infra: According to sources CPPIB or Canada Pension Plan Investment Board, Allianz led InvIT is in talks to acquire the company’s 12 road projects. The talks are in advanced stage and the deal could be worth $400-500mn (Rs3000cr)
Tata Power: According to reports, the company may not agree to lower tariffs for Prayagraj Power.
Punj Lloyd: NCLT Delhi has admitted ICICI Petition against co under IBC post-default of Rs 854 Cr
Dilip Buildcon: The company has been declared as the lowest bidder for EPC project in Maharashtra, valued at Rs 480 Cr by NHAI.
Religare Enterprises: The company has approved the scheme of the merger between Religare Broking & Religare Commodities.
Oil India: The company has won two blocks in DSF Round-II bidding. The company is planning to commence exploration activities in the OALP blocks during FY20.
Jet Airways: According to sources Etihad Board will take the approval Of Jet Airways Resolution tomorrow. According to the finalised resolution plan, Naresh Goyal's stake will come down to 17% from 51%. Naresh Goyal will also step down from board of the company. The consortium of lenders will hold 30% stake & NIIB will pick up 20% stake in the airline
Sources also say that the airline has secured fresh credit facilities of Rs2050cr from Punjab National Bank. The money raised is likely to be used to pay rental dues to aircraft lessors and salary arrears.
Delta Corp: The company's arm will invest $10 Mn in Jalesh Cruises for 25% stake.
HG Infra: NHAI has nullified February 20 as Rajasthan project's bidding process. The company was the lowest bidder. NHAI will reinvite bids.
IDBI Bank: The bank has appointed LIC as a corporate agent under bancassurance. The bank has also set up a joint task force along with LIC to chart out a roadmap for the future.
DHFL: Brickwork Ratings has downgraded secured NCDs of the co. worth Rs29000cr to AA from AA+. The rating was downgraded to 'credit watch with negative implications’. Brickwork Ratings cited de-growth in business on account of the inability to raise funds.
GMR Infra: Subsidiary GMR Airports received formal Letter of Award from MIHAN India Ltd towards development, operations and management of Nagpur Airport.
Suven Life Sciences: The board has approved the creation of a wholly-owned subsidiary in the US, Suven Pharma Inc. The subsidiary to be set up under CRAMS division. The board has approved the investment of USD 75 Mn in the subsidiary for new business opportunities & acquisitions.
CG Power & Industrial Solutions: The company has completed divestment of its power business in US and Automation business in Spain. The board has decided to re-classify businesses comprised in 7 entities. The entities have been re-classified from discontinued to continuing operation w.e.f. Jan 1, 2019. Non-cash impact of re-classification to be ~Rs.200cr in Consolidated Financial Statements. Non-cash impact on account of depreciation during the interim period. Exact impact will be disclosed with the Q4 Consolidated Financial Statements. The board has also decided to restructure/wind down 5 entities. The entities that will be restructured or wound down are as of date classified as discontinued businesses.
Enforcement Directorate: According to sources, Kochhars may have diverted 'kickbacks' to a tax haven. ED is currently focusing on the trail of kickbacks paid by the two companies. ED is in the process of gathering information on Kochhar's assets. The probe will find out how the South Mumbai residence was purchased at lower than market value. ED claims to have found 2 quid pro quo. Rs 389cr could have been paid as kickbacks in lieu of loans sanctioned.
On SBI, Morgan Stanley maintained ‘Overweight’ with a price target of Rs 375.
On Wipro, Credit Suisse maintained ‘Underperform’ with a price target of Rs 240.
On ITC, CLSA maintained 'Buy' with target price of Rs 400.
On Info Edge, HSBC upgraded its rating to ‘Buy’ from ‘Reduce’, hiked price target to Rs 1,978 from Rs 923.
On Dr Reddy's, Nomura gave a 'Buy' rating with target at Rs 3414.