Sebi uncovers $241 Million accounting issue at Zee : Daily Market Update -21 Feb 2024 | Globe Capital Market LTD.
Sebi uncovers $241 Million accounting issue at Zee : Daily Market Update -21 Feb 2024

India’s market regulator has found a hole of more than $240 million in the accounts of Zee Entertainment Enterprises Ltd., dealing another blow to the embattled media firm less than a month after its merger with Sony Group Corp’s local unit collapsed. As part of its investigation into the Zee founders, the Securities and Exchange Board of India found that about 20 billion rupees ($241 million) may have been diverted from the company, said people familiar with the matter who did not want to be identified as the information is not public yet. That’s roughly ten times more than initially estimated by Sebi investigators, the people said.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat to negative note.
  • Barring CAC, other European equity markets settled on a flat to negative note.
  • Majority of Asian equity markets are trading in red.
  • GIFT Nifty is little changed, Nifty futures is likely to open around 22250 levels (as on 8:30AM).


News highlights from across the globe

  • Markets in Asia-Pacific region are trading in negative in early trade on Wednesday, taking cues from overnight losses on Wall Street.
  • Nvidia dragged the U.S. stock market away from its all-time highs, with Wall Street awaiting Nvidia Corp.’s earnings Wednesday for confirmation it can meet the sky-high expectations set by the artificial intelligence boom.
  • Brent crude was 1.46% down at $82.34 a barrel.


Important news updates from the domestic front

  • Zee Entertainment Enterprises: SEBI has found, while investigating into founders, Rs 20 billion might have been diverted from the company, Bloomberg reported. As of now the amount is not finalised, and the regulator is reaching out senior official to know their stance on it.
  • Hindalco Industries’s wholly-owned American subsidiary, Novelis Inc., has filed confidentially for an initial public offering with the U.S. Securities and Exchange Commission.
  • Swan Energy: The Rs 4,000 crore QIP opened on Tuesday at a floor price of Rs 703.29 per share.
  • Union Bank of India approved raising funds up to Rs 3,000 crore via QIP at a floor price of Rs 142.78 per share.
  • Devyani International: Yum Restaurant India is likely to sell a 4.4% stake in Devyani International via block deals.
  • DLF unit has acquired land parcels in Gurugram, Haryana for Rs 1,241 crore, enabling partial redemption of bonds for Rs 775 crore. The company’s unit has completed the registration and transfer of the first tranche of land parcels.
  • Wipro with IBM expanded its partnership to offer new AI services and support to clients.
  • NTPC: Unit NTPC Green Energy signed an agreement with the Andhra Pradesh government to develop a green hydrogen hub in Visakhapatnam, which includes the construction of a production facility for 1,200 tonnes per day.


Nifty Overview & Outlook

Benchmark Nifty index once again hit a new all time high and ended higher at 22197 levels after adding 75 points to its previous closing values.

Broader markets underperformed the frontline index as Small cap and Midcap indices were down 0.53% and 0.27% respectively against 0.34% advances of the frontline index; resultant, strong market breadth.

Performance on the sectoral front was mix. Amongst them, Nifty Media was at the top of the tally, rose over 2% followed by Nifty Bank, Financial Services and Realty index that were up over 1% each.  On the other hand, Nifty IT and Auto index led the decline, down 0.87% and 0.62% respectively.

Nifty index moved in line with our expectation and tested new all-time highs i.e 22215 levels as mentioned in the previous report. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 21800 levels on closing basis and expect it to test 22500 levels in immediate near term.


Derivatives Overview & Outlook

Yesterday, short covering was seen in Nifty futures as open interest shed by 2% whereas long buildup was seen in Banknifty and Finnifty futures as open interest increased by 2% and 46% respectively.

On the sectoral front, long buildup was seen among Chemicals and Realty stocks, some short covering was seen among Media stocks whereas some short buildup was seen among Telecom stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 22000 PE and 23000 CE closely followed by 22600 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1336 Cr in the cash segment, sold stocks futures worth Rs 1704 Cr and bought index futures worth Rs 618 Cr. On the other hand, DIIs were net buyers in the cash segment to the tune of Rs 1491 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22260-22325; Supports 22160-22070

Banknifty – Resistances 47560-47800; Supports 46850-46450

Finnifty – Resistances 20900-21000; Supports 20700-20620




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