BAT to sell 3.5% stake in ITC for Rs 16775 crore in India’s biggest block trade: Daily Market Update - 13 March 2024 | Globe Capital Market LTD.
BAT to sell 3.5% stake in ITC for Rs 16775 crore in India’s biggest block trade: Daily Market Update – 13 March 2024

British American Tobacco has launched a block deal to sell 3.5 percent equity stake in India's ITC Ltd to institutional investors for as much as Rs 16,775 crore or close to $2 billion. This will be one of the largest block deals in India and should enhance share supply overhang in ITC, according to experts. At the lower end of the price band, the share sale is at a 5 percent discount to Tuesday's closing price. The British cigarette maker’s India unit plans to sell up to 43.69 crore ITC shares via accelerated book building at Rs 384-400.25 per share.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.5% to 1.5%.
  • European equity markets settled higher by 1%
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is up by 40 points, Nifty futures is likely to open around 22480 levels (as on 8:30AM).


News highlights from across the globe

  • Markets in Asia-Pacific region were trading higher in early trade on Wednesday, tracking overnight rally on Wall Street after investors brushed off stronger than expected U.S. inflation data.
  • Brent crude was trading 0.37% higher at $82.29 a barrel.


Important news updates from the domestic front

  • ITC: British American Tobacco, the largest public shareholder of the company, has launched a block trade to offload up to a 3.5% stake in the company for over Rs 17,482 crore.
  • Vedanta: The Securities Exchange Board of India ordered the company to pay Rs 77.62 crore to Scottish explorer Cairn for delay in payment of dividends and barred the firm’s entire board from accessing the capital market for the same.
  • Aurobindo Pharma: Eugia Pharma has restarted distribution of aseptic products and will start commercial production from aseptic lines in a phased manner beginning next week.
  • Glenmark Pharma completed the transfer of the remaining 20% stake in Glenmark Life Sciences to Nirma.
  • Shree Cement has entered into an asset purchase agreement with Starcrete LLP for the purchase of five ready-mix concrete plants located in Maharashtra for Rs 33.5 crore.
  • Ethos reduced its stake in Silvercity Brands AG to 35% from 100% earlier.
  • SRF incorporated a wholly owned subsidiary, SRF Middle East, in Dubai for trading in refrigerant gases.
  • Oriental Rail Infrastructure received an order worth Rs. 1,249 crore from the Ministry of Railways for the manufacturing and supply of 3,055 BOXNHL wagons.
  • Titagarh Rail Systems launched its second 25T Bollard Pull Tug, Bahubali, for the Indian Navy.
  • Jammu and Kashmir Bank clarified that the news item of an Enforcement Directorate action does not pertain to the bank in any manner.


Nifty Overview & Outlook

The benchmark Nifty index settled on a flat note at 22335 levels after adding just 3 points to its previous closing values in a highly volatile trading session.

Broader market underperformed the benchmark as Small cap & Midcap index was down by 2% and 1% respectively.

All the sectoral indices, barring Nifty IT and Financial Services index, tracked at NSE settled lower. Amongst them, Nifty Realty and PSU Bank index were the top loser, down over 3.5% and 2.5% respectively followed by Nifty Media, Metal, Consumer Durable and Pharma indices that were down in range 1% to 1.8%.

Technically, Nifty index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to maintain buy on dips trading approach till it is trading above 22200 levels on closing basis.


Derivatives Overview & Outlook

Yesterday, no major changes were observed on price front in all three major index futures, while on open interest front, Nifty futures and Banknifty futures open interest increased by 3.3% and 5.2% respectively, whereas Finnifty open interest decreased by 12.8%.

Most of the F&O sectors settled lower. Amongst them Power, Cement, FMCG and Banking shares witnessed maximum addition of short positions, whereas long unwinding was seen in Chemicals and Finance stocks.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 22000 PE closely followed by 22300 PE and 23000 CE closely followed by 22400 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 73 Cr in the cash segment, bought stocks futures and index futures worth Rs 2095 Cr and Rs 442 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 2358 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22550-22700; Supports 22330-22250

Banknifty – Resistances 47950-48200; Supports 47300-47000

Finnifty – Resistances 21125-21220; Supports 208500-20780




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