Tata Power unit signs MoU worth Rs 70,000 crore with Gujarat Government : Daily Market Update Equity 12 Jan 2024 | Globe Capital Market LTD.
Tata Power unit signs MoU worth Rs 70,000 crore with Gujarat Government : Daily Market Update Equity 12 Jan 2024

Tata Power Renewable Energy Ltd has signed a Memorandum of Understanding with the Gujarat government to develop 10,000 megawatt renewable energy power projects, across multiple locations in the state. The MoU worth Rs 70,000 crore, signed during the Vibrant Gujarat Summit, will help achieve the goal of generating 50% of power from renewable sources by 2030, an exchange filing said on Thursday. The project includes solar, wind, hybrid, round-the-clock, peak, and firm and dispatchable renewable energy, and will be built on the 50,000 acres of encumbrance-free government land, the filing said.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat note.
  • European equity markets ended lower in range 0.5% to 1%.
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21720 levels (as on 8:30AM).


News highlights from across the globe

  • The U.S. CPI rose 3.4% year-on-year in December, higher than estimate 3.2% increase for the month. The print is also higher than 3.2% CPI reported in November.
  • The higher U.S. CPI print raised doubts among investors about Federal Reserve cutting rates anytime soon.
  • Brent crude was trading 0.79% higher at $77.41 a barrel.


Important news updates from the domestic front

  • Polycab India denied receiving communication from the Income Tax department regarding the outcome of the search, a day after authorities alleged detection of unaccounted cash sales of Rs 1,000 crore and non-genuine expenses.
  • Infosys will acquire semiconductor design services provider, InSemi for Rs 280 crore
  • Tata Power’s unit Tata Power Renewable Energy signed a memorandum of understanding with the Gujarat government to develop 10,000 MW of renewable energy power projects across multiple sites in Gujarat.
  • UltraTech Cement acquired a 26% stake in Amplus Ages for Rs 49 crore to meet green energy needs, and optimize energy costs.
  • Mahindra and Mahindra will invest Rs 630 crore in Mahindra Electric Automobile by subscribing to a rights issue.
  • Vedanta: Billionaire Anil Agarwal tried to assuage concerns over the company’s debt burden by posting a message on social media that the company has a comfortable financial situation and has never defaulted on payments.
  • Container Corp reported total volumes at 11.5 lakh TEU, up 6% YoY, and export-import volumes at 9.02 lakh TEU, up 8.3% YoY and domestic volumes at 2.48 lakh TEU, down 1.25% YoY.
  • HDFC Bank’s shareholders approved the reappointment of Sashidhar Jagdishan as managing director and chief executive officer.
  • Tata Consultancy Services Q3FY24 (Consolidated QoQ) Revenue at Rs 60,583 crore vs Rs 59,692 crore, up 1.49%. Net profit at Rs 11,097 crore vs Rs 11,380 crore, down 2.5%. EBIT at Rs 15,155 crore vs Rs 14,483 crore, up 4.6%. EBIT margin at 25.01% vs 24.26%.
  • Infosys Q3FY24 (Consolidated QoQ) Revenue at Rs 38,821 crore vs Rs 38,994 crore, down 0.45%.  Net profit at Rs 6,113 crore vs Rs 6,215 crore, down 1.64%. EBIT at Rs 7,961 crore vs Rs 8,274 crore, down 4.6%. EBIT margin at 20.5% vs 21.21%.


Nifty Overview & Outlook

Benchmark Nifty index ended on a flat note at 21647 levels, added 28 points to its previous closing values after a highly volatile trading session.

Broader markets outperformed the benchmark as Mid and Small cap index gained 0.27% & 0.58% respectively.

Performance on the sectoral front was mix. Amongst them, Nifty Auto, Consumer Durable and Oil & Gas indices were the top gainers, rose over 1% each. On the other hand, Nifty FMCG, IT, Media and Metal index ended on a flat to negative note.

Technically, Nifty index is hovering in a range for past couple of sessions i.e. 21450-21800 levels. An either side break from this range will drive the market in that direction in short term.


Derivatives Overview & Outlook

Yesterday, no significant change was seen in Nifty, Banknifty and Finnifty futures on price front, whereas on open interest front, Nifty, Banknifty and Finnifty futures open interest increased by 2.4%, 3.7% and 2.4% respectively.

On the sectoral front, long buildup observed in Oil & Gas, Realty, Pharma and Finance stocks, whereas short buildup was seen in Capital Goods stocks and some long unwinding was seen in Media stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 21000 PE followed by 21500 PE and 21700 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 865 Cr in the cash segment, bought stocks futures and index future worth Rs 1667 Cr and Rs 75 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 1608 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21800-21900; Supports 21550-21450

Banknifty – Resistances 48100-48400; Supports 47280-46970

Finnifty – Resistances 21500-21660; Supports 21190-21000






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