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.
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




Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, ICEX and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

Globe Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. Rolex Finvest Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited and Lakshya Impex Private Limited  are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.