ICICI Prudential AMC gets RBI nod to acquire 9.9% stake in Federal Bank: Daily Market Update Equity 29 Dec 2023 | Globe Capital Market LTD.
ICICI Prudential AMC gets RBI nod to acquire 9.9% stake in Federal Bank: Daily Market Update Equity 29 Dec 2023

ICICI Prudential Asset Management Co. has received approval from the RBI to acquire a 9.5% stake in The Federal Bank Ltd. The stake acquisition by ICICI Prudential AMC in the company will be subject to conditions specified, according to its exchange filing issued on Thursday. As of September, the asset management company's shareholding in Federal Bank stood at 1.93%.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on a flat to positive note.
  • European equity markets settled lower in range 0.03% to 0.48%.
  • Majority of Asian equity markets are trading mixed.
  • GIFT Nifty is up down 6 points, Nifty futures are likely to open around 21957 levels (as on 8:30AM)


News highlights from across the globe

  • Most of the markets in Asia are trading higher on Friday as investors entered into the last trade session of 2023.
  • Traders continued to remain positive about the U.S. Federal Reserve may start cutting rates in 2024. The new jobless claim data from the world’s largest economy further affirmed traders’ expectations.
  • Data from the U.S. Labor Department showed the number of people filing for the state unemployment benefit increased by 12,000 to 218,000 in the week ended Dec 23, from an upwardly revised 205,000 in the preceding week.


Important news updates from the domestic front

  • Punjab National Bank approved raising up to Rs 7,500 crore in one or more tranches during the next financial year.
  • Swan Energy approved raising Rs 4,000 crore via multiple instruments.
  • RBL Bank: ICICI Prudential AMC and ICICI Prudential Life received RBI’s nod to acquire aggregate holdings of up to 9.95% in the two lenders.
  • Oil Marketing Companies: As per reports, state-run OMCs are likely to announce cuts in petrol and diesel prices.
  • ICICI Lombard General Insurance received a Rs 1,728 crore demand from the GST Authority and a penalty of Rs 172 crore for the period July 2017 to March 2022. The company said it will file an appeal.
  • Aditya Birla Fashion and Retail raised its stake in unit Finesse International Design to 63.5% from 58.7% for Rs 20 crore.


Nifty Overview & Outlook

Benchmark Nifty index once again hit a new all time high and ended higher at 21778 levels after adding 123 points to its previous closing values.

Broader markets outperformed the benchmark as Mid and Small cap index were up nearly 1% each against 0.57% gains of frontline index.

All sectoral indices, barring Consumer Durables & IT index , settled in green. Amongst them, Nifty Oil & Gas index was at the top of the tally, rose over 2% followed by Auto, Metal, PSU Bank and Pharma index that gained over 1% each.

Nifty index moved in line with our expectation and tested 21800 levels as mentioned in the previous report. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 21200 levels on closing basis and expec


Derivatives Overview & Outlook

Yesterday, long unwinding was seen in Nifty and Banknifty futures with decrease in open interest by 21.6% and 17.2% respectively whereas long builduup was seen in Finnifty futures with increase in open interest by 10.3%.

Nifty futures rolled 79% of open interest into next contract which was higher than the previous month rollovers of 73% while Banknifty futures rolled 80% of open interest into next month which was inline with previous month rollovers of 79%.

On options front, Nifty will start the first weekly contract of January series with maximum positions at 22500 CE closely followed by 22000 CE and 21500 PE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 4359 Cr in the cash segment, bought stocks futures worth Rs 7106 Cr and sold index futures worth Rs. 903 Cr. DIIs were net buyer in the cash segment to the tune of Rs 137 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22000-22100; Supports 21600-21450

Banknifty – Resistances 49100-49400; Supports 48100-47600

Finnifty – Resistances 22000-22150; Supports 21500-21300


F&O Securities in Ban Today  – HINDCOPPER


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