Jio Financial, Blackrock ink pact for wealth management and broking business in India : Daily Market Update - 16 April 2024 | Globe Capital Market LTD.
Jio Financial, Blackrock ink pact for wealth management and broking business in India : Daily Market Update – 16 April 2024

Jio Financial Services announced on April 15 that it has entered into a joint venture with US-based BlackRock for wealth management and broking business in India. In an exchange filing, the Reliance Group-backed financial entity said it has signed a 50:50 joint venture for the purpose of undertaking wealth business including incorporation of a wealth management company and subsequent incorporation of a brokerage company in India.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled lower in range 0.5% to 2%.
  • Barring FTSE, Other European equity markets settled on a positive note.
  • Asian equity markets are trading lower.
  • GIFT Nifty is trading down by 200 points, Nifty futures likely to open around 22130 levels (as on 8:30AM).


News highlights from across the globe

  • Benchmarks across Asia-Pacific region are trading lower for second session in a row Tuesday, tracking overnight losses on Wall Street. Traders are awaiting a slew of economic data from China including GDP numbers and retail sales data.
  • U.S. Treasuries sold off on Monday as solid retail sales spurred bets the Federal Reserve will be in no rush to cut interest rates, with traders also getting ready for a flurry of bank debt sales, reported Bloomberg.
  • Brent crude was trading 0.51% higher at $90.61 a barrel.


Important news updates from the domestic front

  • Jio Financial Services announced the formation of a 50:50 joint venture with BlackRock and BlackRock Advisors Singapore to undertake wealth management business in India. It will also incorporate a wealth management company and a brokerage company in India.
  • Adani Energy Solutions’s transmission and smart metering business saw system availability of 99.6% in Q4 and added 174 ckms to the operational network during the quarter. The company’s distribution loss remained low at 5.09% in Q4 and maintained a supply reliability of more than 99.9%.
  • TCS announced a new delivery centre in Brazil to transform their technology, with a focus on strategic areas such as digital transformation, artificial intelligence, and cognitive business operations.
  • JSW Infra approved the re-appointment of Arun Maheshwari as CEO for three years, effective April 18.
  • Cipla will acquire the cosmetics and personal care business undertaking of Ivia Beaute for Rs 130 crore.
  • Gujarat Gas signed a non-binding MoU to broaden the scope and accessibility of energy solutions for consumers. The alliance between two major players in the energy sector is set to deliver an extensive range of products and services throughout GGL’s authorised areas.
  • Manappuram Finance will consider a $500 million fund-raising proposal on April 19 via external commercial borrowings.
  • Life Insurance Corporation increases its stake in Hindustan Unilever to 5.01% from 4.99%.


Nifty Overview & Outlook

The benchmark Nifty index opened with a gap on downside and kept on sliding throughout the day to settle near day’s lows at 22272 levels after a cut of 250 points from its previous closing values.

Broader markets underperformed the benchmark as Small & Mid cap index ended lower by 1.5% each against 1% decline in the frontline index.

All the sectoral indices, Barring Nifty Oil & Gas index, tracked at NSE settled in red. Amongst them, Nifty Media index was the worst performer, down over 2% while rest of sectoral indices were down in range 1% to 2% each.

Technically, Nifty index closed below an important support of 22300 levels as mentioned in our previous posts. Going ahead, it is likely to test 22000-21900 levels in immediate near term. Hence, we suggest short term traders to adopt sell on rise trading strategy till it is trading below 22600 levels. Medium term trend is still intact.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty futures with increase in open interest by 9.8%, whereas long unwinding was seen in Banknifty and Finnifty futures with decrease in open interest by 5.2% and 18.5% respectively.

Majority of sectoral indices settled lower. Amongst them, Technology, FMCG, Automobile, Banking, Power and Metals stocks witnessed addition of short positions whereas long unwinding was seen in Realty, Media and Cements stocks. Long buildup was seen in Oil & Gas and Telecom stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 22000 PE and 22700 CE closely followed by 22500 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 3268 Cr in the cash segment, bought stocks futures worth Rs 1209 Cr and sold index future worth Rs 3850 Cr. DIIs were net buyer in the cash segment to the tune of Rs 4763 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22495-22550; Supports 22175-22060

Banknifty – Resistances 47950-48200; Supports 46980-46660

Finnifty – Resistances 21400-21550; Supports 20980-20830




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