British American Tobacco said preparing to launch ITC selldown as soon as this week: Daily Market Update - 12 March 2024 | Globe Capital Market LTD.
British American Tobacco said preparing to launch ITC selldown as soon as this week: Daily Market Update – 12 March 2024

London-listed BAT has been speaking with Bank of America Corp. and Citigroup Inc. about a potential divestment of around $2 billion to $3 billion in ITC stock through block trades, the people with knowledge of the matter said.

BAT currently owns about 29% of Mumbai-listed ITC, according to data compiled by Bloomberg. The UK company said last month that it’s considering monetizing part of its holding.

Overview and Outlook

Global Stock Market Today

  • Barring DOW, otherUS equity markets settled on a flat to negative note.
  • Barring FTSE, other European equity markets settled on a flat to negative note.
  • Majority of Asian equity markets are trading higher.
  • GIFT Nifty is up by 43 points , Nifty futures is likely to open around 22450 levels (as on 8:30AM).


News highlights from across the globe

  • Asian equity markets are trading higher as investors avoid placing fresh bets before the release of U.S. CPI print for February.
  • Wall Street traders found little encouragement to keep pushing the stock market higher at the start of a week that will bring the last key inflation figures before the Federal Reserve decision, reported Bloomberg.
  • Brent crude was trading 0.17% higher at $82.35 a barrel.


Important news updates from the domestic front

  • Aditya Birla Capital: The board approved the amalgamation of the wholly owned unit Aditya Birla Finance with the company. The merger is subject to the sanction of the National Company Law Tribunal and other necessary approvals from the Reserve Bank of India and other shareholders.
  • ITC: British American Tobacco is preparing to kick off a sale of part of its stake in the company as soon as this week, Bloomberg reported. Amidst this, about 12 million equity shares (0.09% stake) changed hands in a large trade on Monday. It increased its stake in Sproutlife Foods to 44.74% for Rs 50 crore.
  • SpiceJet: Chief Operating Officer Arun Kashyap and Chief CommercialOfficer Shilpa Bhatia has resigned from the airline, PTI reported.
  • Rail Vikas Nigam emerged as the lowest bidder from Central Railway for signalling and telecommunication work for the provision of automatic block signalling on Khapri- Sewagram section of Nagpur Division. It also received a construction order worth Rs 339 crore from Maharashtra Metro Rail Corp.
  • Adani Enterprises: The survey of Dharavi will commence on March 18 from Kamla Raman Nagar to digitally collect data from lakhs of informal tenement residents.
  • H.G. Infra Engineering received a letter of award worth Rs 862.11 crore from the National Highways Authority of India.
  • Mahindra and Mahindra reported total production at 73,380 units vs. 58,203 units YoY for the month of February.
  • Wipro has expanded its partnership with Nutanix to launch a new Nutanix-focused business unit.
  • Triveni Engineering and Industries acquired a 25.43% stake in Sir Shadi Lal Enterprises for Rs 35 crore with the objective of expanding its business operations in sugar and alcohol businesses.
  • HIL: The board approved a 100% equity acquisition of Crestia Polytech for a total consideration of Rs 160 crore.

Nifty Overview & Outlook

Benchmark Nifty index ended lower at 22332 levels after hitting new all-time highs i.e. 22526 levels.

Small cap Index underperformed the benchmark as it was down nearly 2% while Midcap index was down 0.5% against 0.72% decline of frontline index; resultant, poor market breadth.

All sectoral indices, barring Pharma & Healthcare index , settled in red. Amongst them, Nifty Media index was the worst performer, down nearly 3% followed by Nifty Bank, Metal, PSU Bank, Realty and Oil & Gas index that settled lower in range 1% to 1.5%.

Technically, Nifty Index is well placed on multiple chart frames. However, possibility of some profit taking can not be ruled out at this juncture. Going ahead, we reiterate our bullish view 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. Hence, we suggest traders to maintain buy on dips trading strategy till it is trading above the said levels.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty futures with decrease in open interest by just over 2%, some short buildup was seen in Banknifty and Finnifty futures with increase in open interest by 6.6% and 3% respectively.

Majority of F&O sectors settled lower. Amongst them, Realty, Media, Auto and Textile stocks witnessed maximum addition of short positions.

On options front, call writing was seen at multiple strikes and maximum positions are at 23000 CE closely followed by 22500 CE and 21500 PE.

Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 4213 Cr in the cash segment, bought stocks futures worth Rs 895 Cr and sold index futures worth Rs 173 Cr. On the other hand, DIIs were net buyers in the cash segment to the tune of Rs 3238 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22550-22700; Supports 22300-22200

Banknifty – Resistances 47700-48020; Supports 47220-46860

Finnifty – Resistances 21100-21200; Supports 20900-20800




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