Sony confirms terminating $10 billion merger with Zee : Daily Market Update Equity 23 Jan 2024 | Globe Capital Market LTD.
Sony confirms terminating $10 billion merger with Zee : Daily Market Update Equity 23 Jan 2024

Sony Group Corp said it has officially notified Zee Entertainment Enterprises Ltd of plans to call off the merger between its India unit and the media network, ending a two-year acquisition saga and leaving Zee vulnerable to competition as rivals bulk up. The Japanese entertainment giant said Monday that it has sent a termination letter to Zee as the conditions necessary for the merger were not met. The move follows a stalemate between the companies over whether Zee’s Chief Executive Officer Punit Goenka would lead the merged entity amid an investigation into his conduct by India’s capital markets regulator. The standoff now appears to have scuttled the deal, which would have created a $10 billion media giant with the financial muscle to take on global powerhouses Netflix Inc. and Inc.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range 0.22% to 0.36%
  • European equity markets settled on a positive note.
  • Asian markets are trading in green.
  • GIFT Nifty is trading up by 107 points, Nifty futures are likely to open around 21788 levels (as on 8:30AM).


News highlights from across the globe

  • Share indices in Japan were trading higher for the third day in a row as investors shifted their focus on the Bank of Japan’s monetary policy decision, scheduled for release later today.
  • U.S. stocks ended with marginal gains as strong economic data and corporate results fuelled Wall Street’s appetite for risk.
  • Brent crude was trading 1.50% higher at $80.06 a barrel.


Important news updates from the domestic front

  • ICICI Bank Q3 FY24 (Standalone, YoY) Net profit up 23.5% to Rs 10,271 crore. NII up 13% at Rs 18,679 crore. Gross NPA down 18 basis points to 2.3%. (QoQ) Net NPA up 1 bps 0.44%. (QoQ)
  • Persistent Systems Q3 FY24 (Consolidated, QoQ) Revenue up 3.58% at Rs 2,498.21 crore.  EBIT up 9.77% at Rs 363.10 crore.  EBIT margin up 82 bps at 14.53%.  Net profit up 8.68% at Rs 286.13 crore.
  • IDFC First Bank Q3 FY24 (Standalone, YoY) Net profit up 18% at Rs 715.7 crore. NII up 30% at Rs 4,286.6 crore. Other income up 32% to Rs 1,516.5 crore. Gross NPA down 7 basis points at 2.04%. (QoQ).
  • Cipla Q3 FY24 (Consolidated, YoY) Revenue at Rs 6,603.8 crore vs Rs 5,810.1 crore, up 13.7%. Ebitda at Rs 1,747.5 crore vs Rs 1,407.5 crore, up 24.2%  Margin at 26.46% vs 24.22%, up 223 bps. Net profit at Rs 1,068.4 crore vs Rs 807.8 crore, up 32.3%
  • Zee Entertainment Enterprises: Sony Group Corp. has officially notified that it plans to call off the merger between its India unit and Zee. The Sony Group has invoked arbitration against Zee and sought a termination fee of $90 million on account of alleged breaches of the deal.
  • Kotak Mahindra Bank approved the proposal to raise Rs 10,000 crore by way of the issuance of NCDs on a private placement basis.
  • Adani Ports and Special Economic Zone: S&P affirmed the ratings of both Adani Group companies while revising their outlook to ‘Stable’ from ‘Negative’.
  • Tata Motors increased prices by 0.7% on average across its personal vehicle portfolio, including EVs. The price hike is to be effective on Feb. 1.
  • Tata Steel approved the allotment of 8.65 crore shares to eligible shareholders of Tinplate Co. The company will allot shares at an exchange ratio of 33:10.
  • Tata Consultancy Services enabled Euroclear Finland to integrate the core platform with ECB’s T2S platform. The integration is set to ease cross-border settlements for investors in Finnish securities.


Nifty Overview & Outlook

Benchmark Nifty index ended on a flat to negative note at 21571 levels, down 77 points from its previous closing values after a volatile trading session.

Broader market performance was indecisive as Mid & Small cap index were little changed, leading to flat market breadth.

Performance on the sectoral front was also mix. Amongst them, Nifty PSU Bank index was the top gainer, rose nearly 2% followed by Banking and Financial pack that ended up over 0.5% each. On the other hand, Nifty FMCG, IT, Pharma and Realty index ended lower in range 0.5% to 1%.

Going ahead, we expect Nifty index to trade with sideways to negative bias till it is trading below 21750 levels on closing basis and suggest traders to maintain sell on rise trading strategy till it is trading below the said levels.


Derivatives Overview & Outlook

Last Saturday, short buildup was seen in Nifty futures with increase in open interest by 2.5%, whereas short covering was seen in Banknifty and Finnifty futures with decrease in open interest by 6.8% and 9.2% respectively.

Nifty and Banknifty futures rolled 26% & 32% of open interest respectively into next contract so far.

On options front, call writing was seen at multiple strikes and maximum positions are at 21000 PE closely followed by 21500 PE and 22500 CE followed by 22000 CE.


Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 24398 Cr in the cash segment, sold stocks futures and index future worth Rs 3052 Cr and Rs. 9213 Cr respectively. DIIs were net buyer in the cash segment to the tune of Rs 14445 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21720-21880; Supports 21440-21250

Banknifty – Resistances 46400-46900; Supports 45750-45400

Finnifty – Resistances 20700-20870; Supports 20450-20350






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