Disney, Reliance said to sign binding India media merger pact : Daily Market Update -26 Feb 2024 | Globe Capital Market LTD.
Disney, Reliance said to sign binding India media merger pact : Daily Market Update -26 Feb 2024

Walt Disney Co. and Reliance Industries Ltd. have signed a binding pact to merge their media operations in India, according to people familiar with the matter, as the US entertainment giant recasts its strategy amid intense competition in the world’s most-populous country. The media unit of Reliance, controlled by billionaire Mukesh Ambani, and its affiliates are expected to own at least 61% in the merged entity, with Disney holding the rest, the people said, asking not to be identified as the information is not public.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat note.
  • European equity markets settled higher in range 0.28% to 0.69% .
  • 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

  • Stocks in the Asia-Pacific are trading lower in early trade on Monday, taking cues from rally in U.S. stocks, while investors await a slew of economic data from the region, and U.S.
  • Japan will release its CPI data on Tuesday, and official PMI data from China is scheduled for release on Friday. Federal Reserve’s preferred inflation metric, Personal Consumption Expenditure will be released on Thursday.
  • Brent crude was trading 0.32% lower at $81.36 a barrel.


Important news updates from the domestic front

  • Kotak Mahindra Bank: Zurich Insurance Company plans to buy a 70% stake in Kotak Mahindra General Insurance Company for Rs 5,560 crore via primary and secondary acquisitions in a single tranche.
  • Zee Entertainment Enterprises said its board has constituted an independent advisory committee to review the alleged widespread circulation of misinformation, market rumours and speculation about the company.
  • Housing and Urban Development: To reach 25% of the minimum public shareholding, the government plans to sell up to 0.17% of the stake over a period of 12 months. It currently holds 75.17% equity in the developer.
  • Union Bank of India approved Rs 135.65 per share as the issue price of the share. The QIP is fully subscribed.
  • LIC Housing: The board is to meet on March 7 to mull the FY25 borrowing budget.
  • Bharti Airtel strengthened its retail footprint in Agartala, Hyderabad, Jalandhar, Chandigarh, and Vizag.
  • Ashok Leyland: The company acquired a 49.9% stake in TVS Trucks for Rs 24.95 crore to strengthen the company’s automotive business.
  • Dixon Technologies has launched a manufacturing unit in Uttarakhand to manufacture washing machines. The company’s unit, Padget Electronics, has a pact with Compal for the manufacturing of mobile phones.
  • KPI Green: The Gujarat Electricity Regulatory Commission has adopted a tariff for a 200 MWac grid-connected solar project.


Nifty Overview & Outlook

Benchmark Nifty index opened with a gap on the higher side but failed to hold at higher levels and settled on a flat note at 22213 levels after a lackluster trading session.

Broader market outperformed the benchmark as Midcap and Small cap was up 0.72% and 0.38% respectively against flat closing of frontline index.

Performance on the sectoral front was mix. Amongst them, Nifty Media and Realty index were at the top of the tally, rose over 1%. On the other hand, Nifty PSU Bank and Oil & Gas index witnessed some selling pressure, down 1.15% and 0.43% respectively.

Technically, Nifty Index is well placed on multiple chart frames. 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. Hence, we suggest traders to maintain buy on dips trading strategy till it is trading above the said levels.


Derivatives Overview & Outlook

Last Friday, no significant changes was seen in Nifty, BankNifty and Finnifty futures on price front, whereas on open interest front, Nifty futures open interest decreased by 1%, Banknifty and Finnifty futures open interest increased by 1.6% and 8.6% respectively.

Nifty and Banknifty futures rolled 28% & 25% of open interest respectively into next contract so far.

On options front, put writing was seen at multiple strikes and maximum positions are at 21000 PE closely followed by 22000 PE and 23000 CE closely followed by 22500 CE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 1939 Cr in the cash segment, sold stocks futures worth Rs 1963 Cr, and bought index future worth Rs 3192 Cr. DIIs were net buyer in the cash segment to the tune of Rs 3533 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22320-22400; Supports 22100-21950

Banknifty – Resistances 47300-47500; Supports 46750-46500

Finnifty – Resistances 20800-20900; Supports 20600-20500




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