Government allows direct listing of Indian firms in GIFT City: Daily Market Update -25 Jan 2024 | Globe Capital Market LTD.
Government allows direct listing of Indian firms in GIFT City: Daily Market Update -25 Jan 2024

The Union government has allowed the direct listing of equity shares of companies incorporated in India on the International Exchanges Scheme, to allow access to global capital, and foreign investments and enable better valuation of Indian companies in line with global standards. Public Indian companies, listed or unlisted, can now list their stocks on the BSE India International Exchange and NSE International Exchange at the Gujarat International Finance Tec-City under the framework, according to the notification by the Ministry of Finance issued on Wednesday. Currently, the framework allows unlisted public Indian companies to list shares on an international exchange. The Securities and Exchange Board of India is in the process of issuing the operational guidelines for listed public Indian companies, as per the FAQs released by the Finance Ministry on the Direct Listing Scheme.

Overview and Outlook

Global Stock Market Today

  • Barring Dow, other US equity markets settled on flat to positive note
  • European equity markets settled higher in range 0.5% to 1.5%.
  • Majority of Asian markets are trading in green.
  • GIFT Nifty is little changed, Nifty futures are likely to open around 21440 levels (as on 8:30AM).


News highlights from across the globe

  • U.S. stocks held onto gains on Wednesday’s trading, with traders positive about the economy after a fresh batch of data topped estimates and technology companies reported robust earnings, reported Bloomberg.
  • The European Central Bank’s policy meet outcome will be announced today. The central bank is largely expected to hold rate steady.


Important news updates from the domestic front

  • Tata Steel Q3 Earnings FY24 (Consolidated, YoY) Revenue down 3.11% at Rs 55,311.9 crore vs Rs 57,083.6 crore. Ebitda up 54.73% at Rs 6,263.59 crore vs Rs 4047.88 crore. Margin expands 423 bps to 11.32% vs 7.09% . Net profit at Rs 522.1 crore vs loss of Rs 2,502 crore.
  • Tech Mahindra Q3 Earnings FY24 (Consolidated, QoQ) Revenue up 1.84% at Rs 13,101.3 crore vs Rs 12,863.9 crore. EBIT up 53.79% at Rs 703.2 crore vs Rs 457.1 crore. Margin expands 181 bps at 5.36% vs 3.55% . Net profit up 3.64% at Rs 523.7 crore vs Rs 505.3 crore.
  • DLF Q3 Earnings FY24 (Consolidated, YoY) Revenue up 1.76% at Rs 1,521.25 crore vs Rs 1494.8 crore. Ebitda up 7.12% at Rs 510.97 crore vs Rs 477 crore. Margin expands 167 bps to 33.58% vs 31.91%. Net profit up 26.59% at Rs 655.71 crore vs Rs 517.94 crore.
  • Bajaj Auto Q3 Earnings FY24 (Standalone, YoY) Revenue up 30.04% at Rs 1,2113.51 crore vs Rs 9,315.14 crore. Ebitda up 36.75% at Rs 2,429.87 crore vs Rs 1,776.81 crore  Margin expands 98 bps to 20.05% vs 19.07% . Net profit up 36.9% at Rs 2,041.88 crore vs Rs 1,491.42 crore
  • Coal India, Reliance Industries, Adani Enterprises, BHEL, Gail, IOCL, NLC India: Cabinet approved the scheme for the promotion of coal gasification projects with an outlay of Rs 8,500 crore. Incentives for coal gasification projects to be implemented under 3 categories.
  • Zee Entertainment Enterprises has moved the National Company Law Tribunal seeking directions to implement the merger with Sony Group Corp.’s Indian subsidiary.
  • Tata Motors has sought to deregister all its U.S.-listed securities from the country’s capital markets regulator after meeting the set criteria for the action.
  • Coal India and Bharat Heavy Electricals will invest up to Rs 11,782 crore in a coal-to-ammonium nitrate joint venture project in Odisha.  Coal India will also invest with GAIL up to Rs 13,053 crore in a coal-to-SNG JV project in West Bengal.
  • Axis Bank approved the investment of Rs 100 crore in a new wholly-owned unit. The new subsidiary will offer business correspondent and technological service providers to the Bank.
  • Balkrishna Industries approved the merger of the unit BKT Tyers with itself.


Nifty Overview & Outlook

The benchmark Nifty index witnessed smart recovery from the days low and settled at day’s highs at 21453 levels after adding over 200 points to its previous closing values after a highly volatile trading session where steep moves were seen on both side.

Broader markets outperformed the benchmark as Mid and Small cap index gained 2.35% & 1.72% respectively.

All the sectoral indices, barring Nifty Pvt Bank index, tracked at NSE settled higher. Amongst them, Nifty Media and Metal index were the top performers, up 3% each, followed by Nifty IT, Pharma, PSU Bank and Oil & Gas index that settled higher in range 1% to 2%.

Going ahead, we expect Nifty index to trade with sideways to negative bias till it is trading below 21600 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

Yesterday, long buildup was seen in Nifty, Banknifty and Finnifty futures with increase in open interest by 2.6%, 9.4% and 1.4% respectively.

Nifty and Banknifty futures rolled 64% & 56% of open interest respectively into next contract so far.

On options front, put writing was seen at multiple strikes and maximum positions are at 21000 PE closely followed by 21400 PE and 22000 CE followed by 21700 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 6935 Cr in the cash segment, bought stocks futures and index future worth Rs 6282 Cr and Rs. 884 Cr respectively. DIIs were net buyers in the cash segment to the tune of Rs 6013 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 21620-21810; Supports 21140-21000

Banknifty – Resistances 45650-46000; Supports 44490-44150

Finnifty – Resistances 20400-20580; Supports 19960-19770


F&O Securities in Ban Today  – ZEEL.




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