Vedanta is preparing to de-merge sprawling operations - Daily Market Update- Equity 28 Sep 2023 | Globe Capital Market LTD.
Vedanta is preparing to de-merge sprawling operations – Daily Market Update- Equity 28 Sep 2023

Vedanta Ltd is nearing a deal to spin off businesses into several listed entities in a broad restructuring that, if successful, could help tycoon Anil Agarwal manage his metals-to-energy empire’s debt load, people familiar with the matter said. The company has informed its lenders of the restructuring and could announce the plans in the coming days, according to the people.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on a flat note
  • European markets ended on negative note.
  • Asian equity markets are trading mix.
  • GIFT Nifty is little changed (as on 8:30AM), Nifty futures likely to open around 19700 levels.


News highlights from across the globe

  • Shares in Asia fell as investors expected higher interest rates and rising oil prices after crude extended a one-year high.
  • Equity benchmarks in Japan and New Zealand declined, while Australian stocks traded flat after earlier losses.
  • Thursday marks the last trading day for mainland Chinese markets before reopening Oct. 9, 2023.
  • Brent Crude prices were trading above $97 a barrel the yield on the 10-year U.S. bond was trading at 4.61%.


Important news updates from the domestic front

  • Reliance Industries: Telecom unit Jio gained 39.1 lakh users in July vs. a net addition of 22.7 lakh users in June, as per TRAI data. The market share stands at 38.6%.
  • Infosys launched Infosys Cobalt Airline Cloud, a first-of-its-kind industry cloud offering designed for commercial airlines to help them accelerate their digital transformation journey.
  • Bharti Airtel gained 15.2 lakh users in July vs. a net addition of 14.1 lakh users in June, as per TRAI data. The market share stands at 32.74%.
  • ONGC, Mangalore Refinery and Petrochemicals: ONGC signed a crude oil sales agreement with MPRL under which crude from its Mumbai High fields will be sold to MRPL till March 31, 2024. ONG also signed an MoU with NTPC Green Energy for national and overseas green energy projects.
  • Coal India Trade unions have postponed a three-day strike to Oct. 12–14 in the company and its subsidiaries.
  • JSW Steel acquired the remaining 50% stake in NSL Green Steel Recycling from National Steel Holding. NSL has become a wholly owned subsidiary.
  • Vedanta will split its units into newly listed entities, reported Bloomberg, citing sources. The demerger will be announced in the coming days. Businesses including aluminium, oil and gas, iron, and steel will be listed as separate, pure-play entities as part of the move.


Nifty Overview & Outlook

The benchmark Nifty index ended on a positive note above 19700 levels after adding 51 points  to its previous closing values.

The broader market outperformed the benchmark as Mid and Small cap index were up nearly 1% each leading to strong market breadth.

Majority of sectoral indices tracked at NSE settled in green. Amongst them, Nifty Healthcare and Pharma index were the top performers gained over over 1% each followed by Nifty FMCG and PSU Bank index that were up nearly 1% each. On the other hand, Nifty Bank and Financial Services index ended on a flat to negative note.

Technically, Nifty index settled on a strong note. Going ahead, crossover and sustenance above 19800 levels might take it towards 20000 levels in near term.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty futures with increase in open interest by around 0.9%. Short buildup was seen in Banknifty and Finnifty futures with increase in open interest by around 3% and 16% respectively.

On sectoral front, long buildup was seen in Automobile and Capital Goods stocks whereas short buildup was seen in Oil & Gas stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 19600 PE and 19800 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 354 Cr in the cash segment, bought stocks futures worth Rs 864 Cr in the cash segment and sold index future worth Rs 1189 Cr. DIIs were net buyers in the cash segment to the tune of Rs 386 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 19800-19950; Supports 19550-19430

Banknifty – Resistances 44900-45220; Supports 44175-43900

Finnifty – Resistances 20175-20055; Supports 19760-19675


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