Tata Sons to sell 0.65% stake in TCS for $1.1 billion: Daily Market Update - 19 March 2024 | Globe Capital Market LTD.
Tata Sons to sell 0.65% stake in TCS for $1.1 billion: Daily Market Update – 19 March 2024

Tata Sons has offered to sell 2.34 crore shares of IT major Tata Consultancy Services Ltd (TCS) at Rs 4,001 per share through block deals to raise $1.1 billion, reported Bloomberg on March 18. The floor price represents a 3.6 percent discount to the last traded price. On March 18, TCS' shares on BSE closed 1.8 percent lower at Rs 4,144.25 while their intraday high was Rs 4,254.75.

As of December 31, 2023, promoters held a 72.41 percent stake in TCS, of which Tata Sons held 72.38 percent stake, while the rest is held by Tata Investment Corporation.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.2% to 0.8%.
  • European equity markets settled on a flat to negative note.
  • Majority of Asian equity markets are trading lower.
  • GIFT Nifty is down by 70, Nifty futures is likely to open around 22065 levels (as on 8:30AM).


News highlights from across the globe

  • Shares in the Asian-Pacific region are trading under slight pressure as investors await cues from various central bank decisions over the week, starting with the Bank of Japan.
  • U.S. stocks began the week by powering ahead with a rally in their tech stocks. Alphabet Inc. jumped on reports of its talks to build Google’s Gemini artificial intelligence engine into the iPhone. In late hours, Nvidia Corp.’s chief Jensen Huang showed off new chips aimed at extending his company’s dominance of AI computing.
  • The yield on the 10-year U.S. bond was trading at 4.33% and Bitcoin was above 67,100-level. Brent crude was trading flat at $86.90 a barrel


Important news updates from the domestic front

  • TCS: Tata Sons is looking to sell 2.34 crore shares of the company at Rs 4,001 per share. Through this sale, Tata Sons will raise approximately Rs 9,362 crore or $1.13 billion.
  • L&T Finance: The board approved fund raising through debentures. Funds to be raised in a way that NCDs issued and those outstanding do not exceed Rs 1.01 lakh crore.
  • Adani Group: The Adani Group has denied a Bloomberg report that said U.S. prosecutors have widened their probe on alleged bribery in India, calling it “false”.
  • Aditya Birla Sun Life AMC: Two promoter entities of Aditya Birla Sun Life AMC Ltd. have offered to sell up to 11.47% stake through an offer for sale to achieve the minimum public shareholding norms. The floor price has been set at Rs 450 per share.
  • Poonawalla Fincorp: HDFC Bank veteran Arvind Kapil has been appointed as company’s new managing director and chief executive officer.
  • Tata Steel: Tata Steel UK has decided to cease operations of the coke ovens at the Port Talbot plant, in Wales, following a deterioration of operational stability. The company will increase imports of coke to offset the impact of the coke oven closures.
  • IRCTC approved Rs 187 crore project cost for disaster recovery site at Secunderabad.
  • Sonata Software signed joint go-to-market agreement with Zones to simplify enterprise application delivery through end-to-end cloud managed services.
  • JSW Steel clarified that it has not made Rs 5 crore political contribution to JD(S) via electoral bonds.
  • Lemon Tree signed licence pact for 80-room hotel in Tripura.


Nifty Overview & Outlook

The benchmark Nifty index settled on a flat to positive note at 22055 levels after adding 32 points to its previous closing values in a volatile trading session.

Broader markets underperformed the benchmark as Small cap & Midcap index was down by 0.5% and 1% respectively.

Performance on the sectoral front was mix. Amongst them, Nifty Metal index was the top gainer, rose 2.5% followed by Nifty Auto, Media and Pharma index that settled higher in range 0.5% to 1%. On the other hand, Nifty FMCG and IT index led the decline, down 0.5% and 1% respectively.

Technically, Nifty index is hovering in a range for past couple of sessions i.e. 21900-22200 levels. An either side break from this range will drive the market in that direction in short term.


Derivatives Overview & Outlook

Yesterday, Nifty, Banknifty and Finnifty futures remained almost unchanged on the price front, whereas on open interest front, Nifty and Finnifty futures added by 3.1% and 29.7% of open interest respectively, Banknifty open interest was unchanged.

On the sectoral front, fresh short buildup was seen in Technology, FMCG, Infrastructure and Cement stocks. Long buildup was seen in Power stocks and short covering was seen in Metals stocks.

On options front, put writing along with call writing was seen at multiple strikes with maximum positions at 21000 PE closely followed by 22000 PE and 23000 CE closely followed by 22200 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 2051 Cr in the cash segment, sold stocks futures and sold index futures worth Rs 606 Cr and Rs 179 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 2261 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22220-22340; Supports 21980-21840

Banknifty – Resistances 47000-47300; Supports 46330-46070

Finnifty – Resistances 20800-20880; Supports 20530-20430




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