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 opened higher in trade.
- US Stocks were boosted by tech shares.
- S&P 500 hit a new high for 2019, Dow closed 148.23 points higher at 25,702.89.
- UK lawmakers rejected a no-deal Brexit.
- European markets ended in the green.
- WTI settled 2.4% higher at $58.26 a barrel.
- Indian markets could open higher despite mixed Asia cues.
Important Business Updates & Stocks In News
Zee Entertainment: Sources say that Zee may sell 20% stake to Sony for Rs 13,000 Cr. Sony Corp. is in advanced talks to buy a stake in the company and form a strategic partnership. Subhash Chandra wants a 30% premium and seeks to retain 20% in the firm.
Lupin: USFDA has classified inspection of the company's Mandideep (Unit 1) facility As OAI. USFDA has stated that facility may be subject to regulatory/administrative action. No new DMF & ANDA applications are pending review or approval from Mandideep facility. The USFDA stated that it may withhold approval of any pending applications in which unit is listed. The company said that the USFDA classification will not impact existing revenues from operations of this facility.
Jubilant Foodworks: Jubilant Consumer will sell 3% stake of the company for Rs 504 Cr today. The floor price for OFS is set at Rs 1272.6 per share, a 4% discount to the last close. Citigroup Global Markets is acting as placement agent. Promoter pledge holding stands at nearly Rs 1450 Cr.
The compnay has also ventured into that Chinese fast-casual segment. They announced the launch of its first own-brand ‘Hong’s Kitchen. Hong’s Kitchen has opened its first restaurant in Gurugram.
Kotak Mahindra Bank: RBI has said that the Kotak Petition smacks of ulterior motives and promoter Uday Kotak has deliberately not joined the petition. The petition is not interested in retaining Indian ownership but perpetuate promoter ownership, the bank said. Kotak only private sector bank yet to comply with promoter holding norms. This tactic is nothing but a way to run down to run down the clock, RBI added.
Additionally, RBI also said that the bank should not be permitted to take advantage of its own wrongs. The bank repeatedly failed to meet dilution timelines over the years and did not inform RBI of issuance of preference shares in timely manner. Kotak petition is aimed at defeating the statutory powers of RBI. Kotak Mahindra Bank had approached Bombay HC against RBI in December 2018. High Court will hear the matter on April 1.
Tata Motors: Jaguar Land Rover has recalled 44,000 cars over CO2 levels.
Lemon Tree Hotels: The company has signed a non-binding term sheet with Berggruen Hotels. The deal for the acquisition of 100% shareholding of keys hotels by co directly/via subsidiaries.
SpiceJet: The airline is evaluating options for augmenting capacity in the coming days. The company will augment capacity through a mix of additional flights & aircraft inductions. Complying with the DGCA directive, SpiceJet has grounded the entire Boeing 737 Max fleet.
Sources say that the Airline is seeking compensation from Boeing. The Airline will demand credit on maintenance, repair and overhaul for 12 grounded 737 MAX aircraft. SpiceJet will now look to lease old planes.
Jet Airways: Additional 5 aircraft have been grounded due to non-payment of dues. Sources say that the lenders have exerted pressure on Etihad & Naresh Goyal to hasten the resolution process. The lenders are awaiting communication from Etihad on the outcome of its board meeting. Lenders will only infuse money if existing promoters infuse fresh cash into the airlines. Disagreement between Naresh Goyal & Etihad is delaying the process. Naresh Goyal in his letter made it clear, any further delay will ground the airlines. Delay beyond March 31 will complicate matters for lenders. Lenders will have to make provision of Rs 1,094 Cr on Jet account by March 31, 2019
HCL Tech: The company will acquire Strong-Bridge Envision for $45mn in an all-cash deal. Strong-Bridge Envision is a digital transformation consulting firm. They expect the acquisition to be completed by April 2019. Strong-Bridge Envision had Revenue of $45.6M in calendar 2018.
RIL: U.S.based unit has stopped all business with Venezuela's PDVSA. It has halted all supply of diluent to PDVSA & will not resume such sales until sanctions lifted. The compnay will continue constructive dialogue with U.S. to ensure compliance.
Punj Lloyd: The compnay has received Arbitration Tribunal Awards $4.9 Mn and got a favorable ruling in case against ONGC
L&T Infotech/ Mindtree: Sources say that LTI is likely to sign a deal with VG Siddhartha and his associates in next 4 days. LTI may pip Baring PE to buy 21% held by Coffee Day founder.
United Spirits/United Breweries: According to sources, special PMLA court allowed an intervention plea by Diageo in Mallya assets sale case. Diageo has sought dismissal of lenders’ request to liquidate assets.
PFC/REC: Sources say that international lenders have given their go-ahead to PFC’s proposal to buy out REC. Overseas bondholders of REC have sought high waiver fee to forego their rights to sell bonds back to co.
On Jubilant Foodworks, Edelweiss has maintained ‘Buy’ with a price target of Rs 1,529.
On Jubilant Foodworks, JP Morgan maintained ‘Overweight’ with a price target of Rs 1,430.
On Voltas, CLSA Maintained ‘Sell’ with a price target of Rs 500.
On Lupin, Macquarie Maintained ‘Underperform’ with a price target of Rs 716.