SEBI amends rules to boost IPO process and also proposes changes to Buyback rules and Merchant Bankers norms : Daily Market Update -22 May 2024 | Globe Capital Market LTD.
SEBI amends rules to boost IPO process and also proposes changes to Buyback rules and Merchant Bankers norms : Daily Market Update -22 May 2024

To facilitate ease of doing business for companies planning IPOs, SEBI has said any change in the size of offer for sale requiring fresh filing will be based on only one of the criteria -- either issue size in rupee or number of shares. Further, promoter group entities and non-individual shareholders holding more than 5% of the post-offer equity share capital can be permitted to contribute towards. Companies promoted by entrepreneurs often have several rounds of funding prior to listing their equity shares on the stock exchanges. In such situations, the promoters' holding may fall short of the minimum promoter contribution i.e., 20% of the post-offer equity share capital.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat to positive note.
  • European equity markets settled on a flat to negative note.
  • Asian equity markets are trading mix.
  • GIFT Nifty is little changed, Nifty futures likely to open around 22650 levels (as on 8:30AM).


News highlights from across the globe

  • Most of the markets in Asia-Pacific trading mix despite their Wall Street peers rising to a record high on Tuesday, ahead of Nvidia Corp.’s quarterly results.
  • In the US, the S&P 500 rose to another record ahead of results from giant chipmaker Nvidia Corp. that traders see as a gauge for the sustainability of the bull market.
  • Brent crude was trading 0.51% lower at $82.46 a barrel.


Important news updates from the domestic front

  • Bharat Heavy Electricals Q4 FY24 (Consolidated, YoY) Revenue up 0.4% at Rs 8,260 crore vs Rs 8,227 crore. Ebitda down 30.6% at Rs 728 crore vs Rs 1,049 crore. Margin at 8.8% vs 12.8%. Net profit down 25.6% at Rs 490 crore vs Rs 658 crore.
  • Metropolis Healthcare Q4 FY24 (Consolidated, YoY) Revenue up 17.2% at Rs 331 crore vs Rs 283 crore. Ebitda up 13.8% at Rs 80 crore vs Rs 70 crore. Margin at 24.2% vs 24.9%. Net profit up 9.1% at Rs 37 crore vs Rs 33 crore.
  • PI Industries Q4 FY24 (Consolidated, YoY) Revenue up 11.2% at Rs 1,741 crore vs Rs 1,566 crore. Ebitda up 29% at Rs 442 crore vs Rs 343 crore. Margin at 25.4% vs 22%. Net profit up 31.7% at Rs 370 crore vs Rs 281 crore. Board recommends final dividend of Rs 9 per shar
  • TVS Motor launched the TVS iQube electric scooter in Sri Lanka.
  • Biocon’s arm, Biocon Biologics, announced that the USFDA has approved the company’s first-to-file application for Yesafili.
  • United Spirits’s Nanded unit received notice from the Water Resources Department to pay water charges of Rs 345.45 crore. The company has filed a petition in the Bombay High Court for the same.
  • HG Infra Engineering emerged as the lowest bidder for two MSRDC projects worth Rs 4,142 crore.
  • PNC Infratech emerged as the lowest bidder for two road projects worth Rs 4,994 crore from MSRDC.


Nifty Overview & Outlook

Despite the initial gap down opening, the Indian benchmark index Nifty swiftly began climbing from the opening price, successfully closing slightly above its previous mark after filling the entire gap. Conversely, Bank Nifty experienced volatility, where the second half of the session erased the early morning gains, resulting in a marginal downturn at the close.

Looking at the broader market, Midcap stocks traded in line with the benchmark, while Smallcap index underperformed, experiencing a 0.4% loss.

In terms of sector performance, the Nifty Metal index stood out recording a 3.9% gain driven by strong performances from Hindalco, Tata Steel, and JSW Steel, each with gains exceeding 3%. Additionally, Nifty PSU Banks, Nifty Media, and Nifty Energy surged by more than 1% each. Conversely, the Nifty Private Bank index hindered market gains, dropping by 0.6%, with ICICI Bank and IndusInd Bank each losing 1%.

Following Saturday’s lull move, Nifty resumed its upside move but with a twist. Despite starting the session with a gap down Nifty managed to fill the gap during the trading day and ended in positive territory. The index paused its upward trajectory near the 78.6% retracement level of the previous rally. Thereby we hold immediate resistance at 22,586, followed by 22,795.

On the downside, Nifty initially opened at the 23.6% retracement level of the current rally, indicating first support near the open-low of the day at 22,400, followed by 22,295.


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Finnifty futures with decrease in open interest by 43%, whereas long buildup was seen in Nifty futures with increase in open interest by 1.4%. On the other hand, no meaningful activity was seen in Banknifty and Midcap nifty futures on price as well as on open interest front.

Majority of F&O sectors settled higher. Amongst them, Capital Goods, Metal, Oil & Gas and  Power stocks witnessed maximum additions of long positions, whereas short buildup was seen in Banking, FMCG, Finance and Technology stocks. On the other hand, Long unwinding was seen in Automobile, Cement and Media stocks.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 22500 PE closely followed by 22400 PE and 23000 CE followed by 22500 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1875 Cr in the cash segment, bought stocks futures worth Rs 1503 Cr and also bought index futures worth Rs 2015 Cr.  DIIs were net buyer in the cash segment to the tune of Rs 3549 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22700-22800; Supports 22520-22450

Banknifty – Resistances 48400-48600; Supports 47600-47400

Finnifty – Resistances 21550-21600; Supports 21400-21300






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