Reliance Industries to acquire 13.01% stake of Paramount global in Viacom18 for ₹4,286 crore: Daily Market Update - 14 March 2024 | Globe Capital Market LTD.
14-Mar-2024
Reliance Industries to acquire 13.01% stake of Paramount global in Viacom18 for ₹4,286 crore: Daily Market Update – 14 March 2024

Mukesh Ambani-led Reliance Industries Ltd signed a binding agreement on Thursday with two subsidiaries of Paramount Global to acquire the latter's stake in Viacom18 Media Pvt Ltd for an aggregate consideration of ₹4,286 crore, Reliance's exchange filing stated. Viacom 18 is a material subsidiary of TV18 Broadcast Ltd. On completion of this transaction, Reliance's equity stake in Viacom18 will increase to 70.49% on a fully diluted basis. Currently, Reliance Industries holds Compulsorily Convertible Preference Shares of Viacom18, representing a 57.48% equity stake.

Overview and Outlook

Global Stock Market Today

  • Barring DOW, other US equity markets settled on a flat to negative note.
  • Barring DAX, other European equity markets settled higher.
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is little changed, Nifty futures is likely to open around 22070 levels (as on 8:30AM).

 

News highlights from across the globe

  • Equity Markets in Asia-Pacific region are trading mix, tracking cues from overnight losses on Wall Street as investors look forward to release of U.S. PPI data.
  • U.S. stocks retreated from their all-time highs as a handful of big techs fell and traders awaited a $22 billion sale of long-term Treasury securities.
  • Brent crude was trading 0.06% higher at $84.06 a barrel.

 

Important news updates from the domestic front

  • Tata Motors signed an MoU with Tamil Nadu government to set-up vehicle manufacturing facility. This MoU requires investment of Rs 9,000 crore over 5-year period.
  • Hindustan Aeronautics: The Defence Ministry signed two contracts with a combined value of Rs 8,073 crore with HAL for acquisition of 34 advanced light helicopters and associated equipment for the Indian Army and the Coast Guard.
  • KEC International received new order worth Rs 2,257 crore across various business verticals.
  • Auto Stocks: The central government has announced a new scheme to promote the adoption of electric mobility in India, ahead of the expiration of a previous scheme that’s lasted for five years. The Electric Mobility Promotion Scheme 2024 has an outlay of Rs 500 crore over four months for electric two-wheelers and three-wheelers.
  • Rail Vikas Nigam and Salasar JV has received Letter of Award from Madhya Pradesh Power Transmission for construction of transmission lines and associated feeder bays in eastern MP.
  • Adani Enterprises: Adani ConneX’s Hyderabad site gets five-star grading from the British Safety Council.
  • IIFL Finance approved raising up to Rs 1,500 crore via issue of shares and up to Rs 500 crore via NCDs on a private placement basis.
  • Vedanta will appeal against the SEBI order directing it to pay Rs 77.6 crore to Cairn UK before the appropriate forum.
  • PC Jeweller: The State Bank of India has accepted company’s proposal for one time settlement of outstanding dues.
  • Federal Bank has stopped issuance of new co-branded credit cards and will seek regulatory clearance prior to resumption of new issuance. The bank will continue to service existing customers holding co-branded credit cards issued by bank.

 

Nifty Overview & Outlook

Benchmark Nifty index ended sharply lower at 21997 levels, down nearly 350 points from its previous closing values.

Broader markets underperformed the frontline index as Small cap and Midcap indices tumbled 5.28% and 3.86% respectively. The market breadth was heavily inclined towards declining side.

All the sectoral indices, barring Nifty FMCG, tracked at NSE settled in red. Amongst them, Nifty Media, Metal and Realty index lost maximum, down over 5% each followed by Nifty Auto, PSU Bank and Oil & Gas index that were down in range 3% to 5%.

Technically, Nifty index has given fresh breakdown from an important support of 22200 levels (as mentioned in our previous post) and decisively closed below the same. Going ahead, we expect it to test 21800 and lower levels in immediate near term, hence, we suggest traders to adopt sell on rise trading till it is trading below 22300 levels on closing basis.

 

Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty and Finnifty futures with decrease in open interest by 0.9% and 8.7% respectively, whereas short buildup was seen in Banknifty futures with increase in open interest by 2.1%.

All F&O sectors settled lower. Amongst them Power, Infrastructure and FMCG shares witnessed maximum addition of short positions, whereas some long unwinding was seen in Textile, Metals and Telecom stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 21700 PE and 22500 CE closely followed by 22300 CE.

 

Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 4595 Cr in the cash segment, bought stocks futures worth Rs 4828 Cr and sold index futures worth Rs 1382 Cr. DIIs were net buyer in the cash segment to the tune of Rs 9094 Cr.

 

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22330-22400; Supports 21960-21800

Banknifty – Resistances 47500-47800; Supports 46800-46400

Finnifty – Resistances 20900-21040; Supports 20680-20530

 

F&O Securities in Ban Today  –ABFRL, HINDCOPPER, MANAPPURAM, NATIOANALUM, PEL, RBLBANK, SAIL, TATACHEM, ZEEL.

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