Reliance, Disney to merge India media businesses to create Rs 70352 crore JV: Daily Market Update -29 Feb 2024 | Globe Capital Market LTD.
Reliance, Disney to merge India media businesses to create Rs 70352 crore JV: Daily Market Update -29 Feb 2024

Reliance Industries Ltd will merge its television and streaming business with Walt Disney Co.'s India unit to create the country's largest media company valued at Rs 70,352 crore. The two companies have signed a binding, definitive agreement to form a joint venture that will combine the digital streaming and television assets of Viacom18 and Star India, RIL said in a statement on Wednesday. As part of the transaction, the media undertaking of Viacom18 will be merged into Disney-owned Star India Pvt. through a court-approved scheme of arrangement. Reliance will invest Rs 11,500 crore in the venture to fund growth. The Mukesh Ambani-promoted company will control the joint venture via a 16.34% direct stake and 46.82% held through Viacom 18. Disney will own 36.84%.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat to negative note.
  • Barring FTSE, other European equity markets settled on a positive note.
  • Asian equity markets are trading on a mix note.
  • GIFT Nifty is little changed, Nifty futures is likely to open around 21950 levels (as on 8:30AM).


News highlights from across the globe

  • Share indices in Asia-Pacific region are trading mix in early trade on Thursday, taking cues from overnight losses on Wall Street as market participants await for U.S. Personal Consumption Expenditure and China’s PMI data.
  • US PCE index, Federal Reserve’s preferred inflation gauge, is scheduled for release later today, which will provide clues for the central bank’s monetary policy going ahead.
  • China’s official PMI reading is due to be released on Friday, which will provide further insight into the economy struggling to reel out of the pandemic’s effect.


Important news updates from the domestic front

  • Reliance Industries will merge its media business with the Walt Disney India unit to create a Rs 70,352 crore joint venture. The company holds a 16.34% direct stake and 46.82% through Viacom 18. Disney will own a 36.84% stake.
  • UPL, Shriram Finance: The National Stock Exchange, after its periodic review, has decided to replace UPL with Shriram Finance in its Nifty 50 Index. The changes will be effective on March 28.
  • Coal India signed a joint venture with BHEL for a coal-to-ammonium nitrate plant. The company will hold a 51% stake in the joint venture, while BHEL will hold a 49% stake in the JV.
  • NTPC’s unit signed a joint venture agreement with Maharashtra State Power Generation Company for the development of renewable energy parks in the state of Maharashtra.
  • Punjab and Sind Bank: The board approved fundraising of up to Rs 2,000 crore in one or more tranches in any combination within 12 months.
  • PB Fintech: The Insurance Regulatory and Development Authority of India has granted a Certificate of Registration to the company’s unit, Policy Bazaar Insurance Brokers. With the grant of a new Certificate of Registration, the category has been changed from Direct Insurance Broker to Composite Insurance Broker.
  • Wipro completed the migration of ManpowerGroup’s largest data centre in Europe to Microsoft Azure.
  • ICICI Securities The Securities and Exchange Board of India issues an administrative warning to the company in connection with the inspection of books and records for merchant banking activities.
  • Jubilant Foodworks’s unit DP Eurasia shares got delisted from the London Stock Exchange.


Nifty Overview & Outlook

Benchmark Nifty index ended lower at 21951 levels, down nearly 250 points from its previous closing values after a volatile trading session ahead of monthly expiry.

Broader markets underperformed the frontline index as Mid cap and Small cap indices were down 2.25% and 1.87% respectively against 1% decline of frontline index; resultant, poor market breadth.

All the sectoral indices tracked at NSE settled lower. Amongst them, Nifty Media index tumbled nearly 3.5% followed by Nifty Auto, Realty, Oil & Gas and PSU Bank index that were down over 2% each.

Going ahead, we expect Nifty index to trade with sideways to positive bias till it is trading above 21800 levels on closing basis and suggest traders to maintain buy on dip trading strategy till it is above said levels.


Derivatives Overview & Outlook

Yesterday, short buildup was seen in Nifty, Banknifty and Finnifty futures with decrease in open interest by 4.9%, 0.8% and 19.8% respectively.

Nifty and Banknifty futures rolled 67% & 59% of open interest respectively into next contract so far.

On options front, put writing was seen at multiple strikes and maximum positions are at 21500 PE closely followed by 21800 PE and 22300 CE closely followed by 22000 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1879 Cr in the cash segment, sold stocks futures and index futures worth Rs 635 Cr and Rs 243 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1827 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22100-22220; Supports 21840-21730

Banknifty – Resistances 46300-46600; Supports 45350-44900

Finnifty – Resistances 20650-20750; Supports 20350-20240


F&O Securities in Ban Today  – INDUSTOWER, SAIL.


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