Grasim Industries sets Rs 1812 per share price for Rs 4000 crore rights issue : Daily Market Update Equity 05 Jan 2024 | Globe Capital Market LTD.
Grasim Industries sets Rs 1812 per share price for Rs 4000 crore rights issue : Daily Market Update Equity 05 Jan 2024

Grasim Industries Ltd. has set Rs 1,812 per share as the price for its Rs 4,000-crore rights issue, which is at a 12.47% discount to the current market price. The company will issue up to 2.2 crore shares on a partly paid basis, according to an exchange filing on Thursday. Shareholders who participate in the issue will have to pay Rs 453 per share on application, followed by the remaining amount of Rs 1,359 in up to three installments. The board will set the conditions such as the number of calls and the timing and quantum of each call to be completed on or before March 2026.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on a flat to negative note.
  • European equity markets settled higher by 0.5%
  • Asian equity markets are trading mix.
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21769 levels (as on 8:30AM)


News highlights from across the globe

  • Markets in the Asia-Pacific region are trading on a mixed note in early Friday as investors await U.S. non-farm payroll data, due to be released today for further insight into the world’s largest economy’s labor market.
  • U.S. Treasury yields rose while stocks clawed back gains after data showed initial unemployment claims fell, sparking doubts about how soon and deeply the Federal Reserve could start cutting interest rates, Bloomberg reported.
  • Data from the U.S. Labor Department showed the number of people filing for initial state unemployment benefits lessened by 18,000 to 202,000 in the last week of 2023, touching a four-month low.


Important news updates from the domestic front

  • Grasim Industries set Rs 1,812 per share as the price for its Rs 4,000-crore rights issue, which is at a 12.47% discount to the current market price. It will issue up to 2.2 crore shares on a partly-paid basis.
  • Dabur India estimated that its revenue in Q3 will grow to a mid-to-high single digit, driven by the food business. The food and beverage category is expected to grow in the high-single-digit, while the home and personal care division is expected to have record growth in the mid-single digits.
  • Jupiter Wagons received an order worth Rs 473 crore from the Ministry of Defence to manufacture and supply of 697 Bogie open military wagons.
  • Lupin has received tentative approval from the U.S. FDA for Dapagliflozin and Saxagliptin tablets to market a generic equivalent of Qtern tablets of AstraZeneca AB.
  • State Bank Of India: The private lender concluded the placement of a BBB-rated Green Bond worth $250 million.
  • Power Finance Corp increased its FY24 market borrowing plan to Rs 1.05 lakh crore from Rs 80,000 crore.
  • L&T Finance Holdings estimates retail loan book at Rs 74,750 crore up 31% YoY and retail disbursement at Rs 14,500 crore up 25% YoY and portfolio realisation estimated at 91% at the end of Q3. The company raised Rs 500 crore via private placement of non-convertible debentures.
  • RBL Bank recorded total deposits at Rs 92,743 crore, up 13% YoY, and gross advances at Rs 81,870 crore, up 20%, and a CASA ratio of 33.8% vs 36.6% YoY.
  • BGR Energy Systems: SBI has classified its Rs 2,060-crore credit exposure to the company as sub-standard.
  • Power companies: The Central Electricity Regulatory Commission, in its draft tariff norms for FY25–FY29, has raised the return on equity for new storage-based hydro projects—including pumped hydro—to 17% from 16.5%.


Nifty Overview & Outlook

Benchmark Nifty index ended higher at 21658 levels after adding nearly 150 points to its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index were up over 1% each against 0.66% gains of frontline index.

All sectoral indices settled in green. Amongst them, Nifty Realty index was at the top of the tally, soared over 6.5% followed by Banking & Financial pack that were up over 1% each.

Technically, Nifty index rebounded from an important support of 21500 levels as mentioned in our previous posts. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 21500 levels on a closing basis.


Derivatives Overview & Outlook

Yesterday, short covering was seen in Nifty futures with decrease in open interest by 1.3%, whereas long buildup was seen in Banknifty and Finnifty futures with increase in open interest by 3.1% and 0.6% respectively.

Majority of F&O sectors settled higher. Amongst them, Technology, Media, Telecom and Cement shares witnessed maximum addition of long positions, whereas short buildup was seen in Chemical stocks and some short covering was seen in Oil & Gas stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 21000 PE followed by 21500 PE and 22500 CE closely followed by 22000 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 1513 Cr in the cash segment, sold stocks futures worth Rs 525 Cr and bought index futures worth Rs. 122 Cr . DIIs were net seller in the cash segment to the tune of Rs 1387 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21930-22060; Supports 21600-21450

Banknifty – Resistances 47900-47630; Supports 48680-48980

Finnifty – Resistances 21750-21860; Supports 21400-21250




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