Hinduja Group firm gets IRDAI nod for acquiring Rs 9,650-Crore Reliance Capital : Daily Market Update - 13 May 2024 | Globe Capital Market LTD.
Hinduja Group firm gets IRDAI nod for acquiring Rs 9,650-Crore Reliance Capital : Daily Market Update – 13 May 2024

Insurance sector regulator IRDAI has given conditional approval to Hinduja Group firm IndusInd International Holdings Ltd. for the takeover of debt-ridden Reliance Capital. "We are happy to acknowledge the receipt of approval from IRDAI yesterday (May 10, 2024) on the auspicious occasion of Akshay Tritiya. The approval is subject to certain ‘regulatory, statutory, and judicial’ clearances/compliances," an IIHL spokesperson said in a statement. IIHL stands committed to working towards obtaining the same as soon as possible and aims to close this transaction by the NCLT's stipulated date of May 27, 2024, the spokesperson added.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat note.
  • European equity markets also settled higher in range 0.38% to 0.62%.
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is little changed, Nifty futures likely to open around 22100 levels (as on 8:30AM).


News highlights from across the globe

  • Most markets in Asia-Pacific countries are trading higher in early trade Monday as investors assess inflation data from China, and await for Japan’s PPI.
  • The US stock market lost traction and bond yields rose after data pointed to an economy that is slowing amid stubborn inflationary pressures, posing a challenge to the outlook of Federal Reserve rate cuts.
  • Brent crude was trading 0.34% lower at $82.45 a barrel.


Important news updates from the domestic front

  • Tata Motors (Consolidated, YoY) Revenue up 13.26% at Rs 1.19 lakh crore vs Rs 1.05 crore. Ebitda up 32.81% at Rs 16,995 crore vs Rs 12,795 crore. Margin up 208 bps at 14.16% vs 12.07%. Net profit up 218.93% at Rs 17,529 crore vs Rs 5,496 crore. Note: Deferred tax write-back of Rs 9,478 crore vs Rs 1,737 crore.
  • Q1 Earnings ABB India (YOY) Revenue up 27.75% at Rs 3080 crore vs Rs 2411 crore. Ebitda at up 98.09% Rs 565 crore vs Rs 285 crore. Margin up 651 bps at 18.34% vs 11.83%. Net profit up 87.54% at Rs 459 crore vs Rs 245 crore.
  • Bank Of India (YoY) NII up 7% at Rs 5,936 crore vs Rs 5,524 crore. Net profit up 6.55% at Rs 1,439 crore vs Rs 1350 crore. Gross NPA at 4.98% vs 5.35% (QoQ). Net NPA at 1.22% vs 1.41% (QoQ).
  • Vedanta’s unit, CIHL, acquired an additional 46.57% stake in AvanStrate for JPY 12.2 billion.
  • Wipro appointed Vinay Firake as CEO for the Asia Pacific, India, Middle East, and Africa strategic market unit.
  • Lupin: The US Court has lifted a temporary restraining order for Mirabegron ER Tablets. The shipment of the product has now resumed.
  • Aditya Birla Fashion and Retail’s arm, Clothing Retail, allotted shares worth Rs 100 crore. The company’s stake in the arm stands at 85.54%, up from 80% earlier.
  • Lemon Tree Hotels signed a pact for an upcoming 60-room hotel in Bareilly, Uttar Pradesh.
  • Prestige Estates Projects: Venkata Narayana K. resigned from the position of CEO.


Nifty Overview & Outlook

Benchmark Nifty index halted its downside rally by posting marginal gains of 0.4%. Conversely, the Bank Nifty concluded the trading session with a lackluster performance, closing flat to negative despite efforts to rebound during market hours.

In contrast, the Midcap index surpassed the benchmark, recording an increase of over 0.8%, while the Small cap index closed in line with the benchmark.

On the sectoral front, the Energy index stood out, with the top three gainers in the Nifty 50 belonging to this sector. BPCL notably surged by over 4%, buoyed by its Q4 performance and bonus issue announcement, with NTPC and Powergrid also recording gains of more than 2% each. Conversely, the Nifty IT sector witnessed downward pressure throughout the trading session, ending the day in the red with a loss of 0.8%.

From a technical standpoint, the Nifty index experienced a temporary pause following a sharp decline in the preceding session. It found support around the 21950 mark for the second consecutive day. Hence, below the said level and with no much movement, we maintain next support levels to watch are 21775-21710, representing the previous support zone, followed by 21530. On the upside, potential resistance levels are at 22135 and 22260 in case of a pullback.


Derivatives Overview & Outlook

Yesterday, all F&O indices (Nifty, Banknifty, Finnifty and Mid cap Nifty) witnessed addition of short positions in range 3% to 20%.

All F&O sectors settled lower. Amongst them, Media, FMCG, Capital Goods and  Oil & Gas index witnessed maximum addition of short positions. On the other hand, some long  unwinding was seen among Chemical stocks.

On options front, Nifty will start the new weekly contract with maximum positions at maximum positions are at 2200 PE closely followed by 21000 & 21500 PE and 22500 CE closely followed by 22300 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 6995 Cr in the cash segment, sold index futures worth Rs 3882 Cr and also sold stocks futures worth Rs 3085 Cr. On the other hand, DIIs were net buyer in the cash segment to the tune of Rs 5643 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22220-22300; Supports 21980-21900

Banknifty – Resistances 48000-48250; Supports 47400-47100

Finnifty – Resistances 21250-21320; Supports 21100-21950






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