Blackstone plans mega $833 million exit from Embassy Office Park REIT : Daily Market Update Equity 20 Dec 2023 | Globe Capital Market LTD.
Blackstone plans mega $833 million exit from Embassy Office Park REIT : Daily Market Update Equity 20 Dec 2023

Blackstone plans to exit Embassy Office Parks REIT, India's first publicly traded real estate investment trust, through a mega block deal of $833 million as per media sources. They (Blackstone) intend to sell their entire stake of 23.6% in the firm via the block deal route. The floor price is Rs 310 per share. Kotak Mahindra Capital and IIFL Capital are the advisors for this proposed big trade.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.46% to 0.68%
  • European equity markets settled on a flat to positive note
  • Majority of Asian equity markets are trading in green
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21613 levels (as on 8:30AM)


News highlights from across the globe

  • Most of the Asian markets are trading higher, tracking overnight gains on Wall Street as traders continued to remain optimistic about the U.S. Federal Reserve cutting interest rates in 2024.
  • Equities in Japan rose as traders assessed the Bank of Japan’s policy meet outcome. The Japanese central bank held rate steady at -0.1%, and maintained its yield curve control policy, in line with market expectations.
  • Brent crude was trading 0.97% higher at $73.44 a barrel.


Important news updates from the domestic front

  • Bharat Petroleum Corp approved a proposal for setting up 400 KTPA polypropylene unit at its Kochi refinery. The cost of the project is Rs 5,044 crore which will be funded in a debt-equity ratio of 65:35.
  • Glenmark Life Sciences: The Competition Commission of India has approved the acquisition of majority shareholding of Glenmark Life Sciences by Nirma.
  • Embassy Office Parks REIT: Blackstone is looking to sell its entire 23.5% stake in the company via a mega block deal on Wednesday. The floor price is set as Rs 310 per share.
  • Nippon Life India AMC: IndusInd Bank will sell a 2.86% stake in the company via a block deal on Wednesday. The floor size is set at Rs 426 per share, a 5% discount to Tuesday’s closing price.
  • Transformers And Rectifiers received an order worth Rs 118 crore from Uttar Pradesh Power Transmission Corporation.
  • ITC: The company’s unit Infotech India incorporated a wholly owned subsidiary ITC Arabia for about Rs 35 crore.
  • Tech Mahindra: CP Gurnani ceases to be MD and CEO of the company on account of the completion of his tenure. Mohit Joshi to take over as CEO and MD effective Dec. 20.
  • Varun Beverages will acquire South Africa’s ‘The Beverage Company’ and its subsidiaries for ZAR 3 billion or Rs 1,320 crore. The company signed a MoU with Jharkhand Government for the Patratu manufacturing plant with a total capital outlay of Rs 450 crore.


Nifty Overview & Outlook

The benchmark Nifty index recorded all time high and ended on a flat note at 21453 levels, after a highly volatile trading session.

Nifty index outperformed the broader markets as it ended on a positive note while Midcap & Small index was down 0.47% and 0.12% respectively.

Performance on the sectoral front was mix. Amongst them, Nifty FMCG was at the top of the tally, rose nearly 1.5% followed by Consumer Durables, Oil & Gas and PSU Bank index that were up nearly 1% each.   On the other hand, Auto, IT and Media indices led the decline down over 0.5% each.

Technically, Nifty index is well placed on multiple chart frames; however, possibility of some profit taking can not be ruled out at this juncture. Going ahead, we reiterate our bullish view on Nifty index and suggest traders to maintain buy on dips trading approach till it is trading above 21200 levels.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty, Banknifty and Finnifty futures with increase in open interest by 9.7%, 4.8% and 18.2% respectively.

On the sectoral front, short covering was seen among Metals and Cement stocks whereas some short buildup was seen in Telecom stocks.

On options front, call writing along with put writing was seen at multiple strikes and maximum positions are at 21400 PE and 21500 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 602 Cr in the cash segment, sold stocks futures worth Rs. 788 Cr and bought index futures worth Rs.1284 Cr. DIIs were net buyers in the cash segment to the tune of Rs 294 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21650-21750; Supports 21280-21160

Banknifty – Resistances 48340-48640; Supports 47450-47030

Finnifty – Resistances 21610-21740; Supports 21220-21080




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