Bajaj Auto to buy back shares worth Rs 4,000 crore at Rs 10,000 apiece: Daily Market Update Equity 09 Jan 2024 | Globe Capital Market LTD.
Bajaj Auto to buy back shares worth Rs 4,000 crore at Rs 10,000 apiece: Daily Market Update Equity 09 Jan 2024

The board of Bajaj Auto Ltd has approved a Rs 4,000-crore buyback via a tender offer, in what is the second such share repurchase by the automaker in as many years. The Chakan, Pune-based company plans to buy back 40 lakh fully paid-up equity shares of face value Rs 10 each at Rs 10,000 apiece aggregating to Rs 4,000 crore, according to an exchange filing on Monday. In volume terms, the buyback is 1.41% of the total number of equity shares of the company. In value terms, it represents 16.33% and 14.49% of the total paid-up equity share capital and free reserves as of March 31, 2023.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.5% to 2.20%
  • European equity markets were also up in range 0.06% to 0.74%
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is up by 100 points, Nifty futures are likely to open around 21705 levels (as on 8:30AM)


News highlights from across the globe

  • Asian stock markets is trading higher taking cues from gains on Wall Street as investors await a slew of economic data from the region, and the U.S.
  • In Tokyo, consumer prices, which leave aside fresh food came at 2.1% on year in December, compared to 2.3% in November. Japan’s capital city’s inflation figure is an early indicator for national figures which will be announced next week.
  • The U.S. CPI is scheduled for release on Thursday, which will provide further insight to investors about the Federal Reserve’s monetary policy path going ahead.


Important news updates from the domestic front

  • Bajaj Auto has approved a Rs 4,000-crore buyback via a tender offer. It plans to buy back 40 lakh fully paid-up equity shares of face value of Rs 10 each at Rs 10,000 apiece.
  • Zee Entertainment Enterprises: Sony Group is planning to call off the $10 billion merger pact with the company, according to Bloomberg.
  • Adani Group Companies: The conglomerate has signed a Memorandum of Understanding to invest over Rs 42,700 crore in Tamil Nadu.
  • Eicher Motor’s unit, Royal Enfield, signed a non-binding Memorandum of Understanding with the Tamil Nadu government. It will invest around Rs 3,000 crore over eight years in the state to set up greenfield and brownfield projects in the region.
  • Ashok Leyland signed a Memorandum of Understanding with the Tamil Nadu government to invest Rs 1,200 crore in three to five years.
  • Bajaj Finserv’s unit, Bajaj Alliance, reported a total new business premium of Rs 962 crore and a gross direct premium of Rs 1,425.1 crore for December.
  • BEML bagged an order worth Rs 329.87 crore from the Ministry of Defence for the supply of Mechanical Minefield Marking Equipment Mark-II.
  • Cipla: The company’s UK-based arm announced a joint venture with Kemwell Biopharma and Manipal Education & Medical Group to develop novel cell therapy products for major unmet medical needs in the United States, Japan, and EU regions.
  • Tata Motors reported Jaguar Land Rover wholesales at 1.01 lakh units, up 27% YoY and retail sales at 1.09 lakh units, up 29% YoY. The order book continues to be strong, the company said.
  • Life Insurance Corp will invest 10% in the new company promoted by the National Housing Bank for residential mortgage-backed securities.


Nifty Overview & Outlook

Benchmark Nifty index ended sharply lower at 21513 levels, down nearly 200 points from its previous closing values after a volatile trading session.

Nifty Midcap index underperformed the benchmark as it was down over 1% while Small cap index outperformed the benchmark, down over 0.5%. The market breadth was heavily inclined towards declining side; resultant, poor market breadth.

All the sectoral indices, barring Media and Reality tracked at NSE settled in red. Amongst them, Nifty PSU Bank index lost maximum, down over 2.5% followed by Nifty Bank, FMCG and Metal index that were down in range 1.5% to 1.72%.

Technically, Nifty index is trading on verge of breakdown from an important support of 21500 levels.Cross and sustenance below 21500 levels might take it towards 21000 levels in near term.


Derivatives Overview & Outlook

Yesterday long unwinding was seen in Nifty futures with decrease in open interest by 0.4%, whereas short buildup was seen in Banknifty and Finnifty future with increase in open interest by 20.9% and 1.8% respectively.

On the sectoral front, short buildup was seen among Chemical, Metals, Banking, Cements and Textile stocks, whereas long unwinding was seen in Realty and Power stocks.

On options front, call writing was seen at multiple strikes and maximum positions are at 21000 PE and 21700 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 16 Cr in the cash segment, sold stocks futures and index futures worth Rs 2754 Cr and Rs 1419 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 155 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21740-21920; Supports 21430-21290

Banknifty – Resistances 48135-48560; Supports 47210-46730

Finnifty – Resistances 21540-21710; Supports 21240-21040




Important Results Today – DELTACORP


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