Aditya Birla Group plans to demerge Madura fashion and Lifestyle Business: Daily Market Update - 2 April 2024 | Globe Capital Market LTD.
Aditya Birla Group plans to demerge Madura fashion and Lifestyle Business: Daily Market Update – 2 April 2024

Aditya Birla Fashion and Retail Ltd plans to vertically demerge its Madura Fashion and Lifestyle business into a separate listed company. The board of directors of ABFRL authorised the management of the company to evaluate the demerger, according to an exchange filing issued on Monday.

The demerger will help create two separate listed companies as independent growth engines, with distinct capital structure and parallel value creation opportunities, it said.

Overview and Outlook

Global Stock Market Today

  • Barring Nasdaq, other US equity markets ended in red.
  • European equity markets settled on flat to positive note.
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is trading down by 60 points, Nifty futures is likely to open around 22550 levels (as on 8:30AM).


News highlights from across the globe

  • Asia-Pacific markets were mostly trading higher in early trade on Tuesday as investors await for jobs data for further insight into the U.S. labour market.
  • Market participant will be assessing the U.S. Job Openings and Labour Turnover Survey data, scheduled for release later today, to get fresh cues about the Federal Reserve’s stance on monetary policy going forward. This data will be crucial after strong U.S. factory data.
  • The world’s biggest bond market came under pressure and stocks erased gains as solid U.S. factory data reinforced speculation that the Federal Reserve will be in no rush to cut interest rates.


Important news updates from the domestic front

  • Maruti Suzuki India produced 1.63 lakh units of passenger vehicles for the month of March vs. 1.50 lakh units last year and total production volume was 1.67 lakh units vs. 1.54 lakh units.
  • Ashok Leyland reported total domestic vehicle sales of 21,317 units vs. 22,885 units, down 7% YoY, and total domestic plus export vehicle sales of 22,866 vs. 23,926, down 4%.
  • Aditya Birla Fashion plans to vertically demerge its Madura Fashion and Lifestyle business into a separate listed company.
  • Hero MotoCorp recorded total sales at 4.9 lakh units vs. 5.19 lakh units YoY and motorcycle sales at 4.57 lakh units vs. 4.86 lakh units.
  • TVS Motor reported total sales at 3.55 lakh units vs. 3.17 lakh units, up 12% YoY, and motorcycle sales at 1.72 lakh units, up 22%.
  • Atul Auto: The company sold 3,128 vehicles for the month of March and reported total sales of 26,039 units for FY24, up 1.92%.
  • IIFL Finance received NSE approval to acquire shares aggregating up to Rs 284.4 crore of the bourse from FIH Mauritius Investments through off-market transfer.
  • Bharat Dynamics reported a turnover of Rs 2,350 crore for FY24 vs. Rs 2,489 crore for FY23. Its order book position stands at Rs 19,468 crore as of April 1.
  • NMDC reported 4.86 MT of production for the month of March 2024 vs. 5.6 MT in March 2023 and sales for the month of March stood at 3.96 MT vs. 4.84 MT in March 2023.


Nifty Overview & Outlook

Benchmark Nifty index opened with a gap on the higher side and managed to settled above 22450 levels after a lackluster trading session.

Broader markets outperformed the benchmark as Small and Midcap index were up 3.26% and 1.82% respectively.

All the sectoral indices, Barring Nifty Auto and FMCG index, tracked at NSE settled in green. Amongst them, Nifty Media and Realty index were at the top of the tally, gained over 4% each while rest of sectoral indices were up in range 1% to 3.5% each.

Going ahead, we reiterate our bullish view on Nifty index till it is trading above 22000 levels on closing basis. Crossover and sustenance above 22550 will open the doors for 22800 levels in near term.


Derivatives Overview & Outlook

Yesterday, Nifty and Banknifty futures shed around 12% and 53% of open interest respectively as short covering. Finnifty futures added around 13% of open interest as long buildup.

All F&O sectors settled higher. Amongst them, Textile, Capital Goods, Realty and Metal stocks witnessed maximum addition of long positions whereas some short covering was seen among Infra and Media stocks.

On options front, put writing was seen at multiple strikes along with call addition at multiple strikes and maximum positions are at 22500 CE and 22300 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 522 Cr in the cash segment, bought stocks futures and index futures worth Rs 1020 Cr and 275 Cr respectively. DIIs were net buyers in the cash segment to the tune of Rs 1208 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22590-22650; Supports 22270-22200

Banknifty – Resistances 47800-48100; Supports 47300-47000

Finnifty – Resistances 21210-21300; Supports 21020-20950


F&O Securities in Ban Today  – NIL


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