Tata Motors' board approves demerging CV, PV businesses into two separate listed companies: Daily Market Update - 05 March 2024 | Globe Capital Market LTD.
Tata Motors’ board approves demerging CV, PV businesses into two separate listed companies: Daily Market Update – 05 March 2024

The board of Tata Motors on Monday approved demerging the operations of the company's business into two separate entities, i.e., commercial vehicles and passenger vehicle business, a move aimed at tapping synergies and delivering higher growth. Post demerger, one entity would house the commercial vehicles business and its related investments while the other would house the passenger vehicles business including PV, electric vehicles, Jaguar and Land Rover and related investments. The company has said the demerger would be implemented through an NCLT scheme of arrangement. The NCLT scheme would need a nod from the Tata Motors board, shareholders, creditors and regulators, all of which could be completed in 12-15 months.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat to negative note.
  • Barring CAC, other European equity markets settled on a flat to negative note .
  • Majorityof Asian equity markets are trading in red.
  • GIFT Nifty is little changed, Nifty futures is likely to open around 22500 levels (as on 8:30AM).


News highlights from across the globe

  • Asian markets are trading lower after China set an ambitious growth target of 5% in 2024, raising expectations for officials to unleash more stimulus as they try to lift confidence in a slowing economy.
  • The relentless rally in U.S. stocks took a breather on Monday, with traders awaiting this week’s batch of job data and remarks from Federal Reserve officials for clues on the interest-rate outlook, reported Bloomberg.
  • Brent crude was trading 0.14% lower at $82.68 a barrel.


Important news updates from the domestic front

  • Tata Motors has approved a proposal to split the company into two separate listed entities for passenger and commercial vehicles as it looks to boost growth and improve accountability.
  • IIFL Finance: The Reserve Bank of India has directed the company to cease and desist from disbursing gold loans with immediate effect. However, the company can continue servicing its existing loans.
  • State Bank of India has filed a plea before the Supreme Court seeking an extension of its March 6 deadline to furnish data pertaining to the electoral bonds scheme.
  • Macrotech Developers has launched its qualified institutional placement to raise Rs 3,300 crore.
  • AU Small Finance Bank: The Reserve Bank of India has approved the merger of Fincare Small Finance Bank with the company.
  • Jio Financials Services: Promoters Sikka Ports and Terminals, Jamnagar Utilities and Power will acquire up to 14 crore shares of the company.
  • Elantas Beck India will enter into a contract manufacturing arrangement with ACTEGA GmbH, a sister company of the ALTANA Group, to supply commercial shipments.
  • Easy Trip Planners with Punjab National Bank has introduced the PNB EMT Co-branded Credit Card. This card offers rewards for travel-related spending, including flights, hotels, and holiday packages.
  • Cyient partnered with Mass Medic to accelerate MedTech innovation.
  • NBCC’s unit received an order worth Rs 92 crore from the Post Graduate Institute of Medical Education and Research, Chandigarh.


Nifty Overview & Outlook

Nifty index settled on flat to positive note after a lackluster trading session, closed shop at 22405 levels added 27 points to its previous closing values.

Broader market performance was mix as Midcap index was up over 0.5%, while Small cap index down over 0.5% against flat closing of frontline index leading to flat market breadth.

Performance on the sectoral front was also mix. Amongst them, Nifty Oil & Gas index was at the top of the tally, rose nearly 2% followed by Banking and Financial pack settled on a flat to positive note.   On the other hand,  Nifty Auto, FMCG & Media indices led the decline down in range  0.5% to 1.85%.

Technically, Nifty Index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view with cautious stance on Nifty index till it is trading above 22200 levels on closing basis and expect it to test 22500 and higher levels in near term.


Derivatives Overview & Outlook

Yesterday, no significant change was seen in Nifty, Banknifty and Finnifty futures on price. On open interest front, Nifty and Banknifty open interest increase by 1% and 16%  respectively whereas  Finnifty open interest decrease by 7.5%.

On the sectoral front, long buildup was seen among Metals, Oil & Gas and Telecom stocks whereas short buildup was seen among Media, Chemicals and Technology stocks. Short covering was seen in Realty stocks.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 22200 PE and 23000 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 564 Cr in the cash segment, sold stocks futures worth Rs 325 Cr and bought index futures worth Rs 1270 Cr. DIIs were net buyer in the cash segment to the tune of Rs 3543 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22590-22660; Supports 22400-22280

Banknifty – Resistances 47950-48200; Supports 47440-47150

Finnifty – Resistances 21150-21250; Supports 20930-20860


F&O Securities in Ban Today  – ZEEL.


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