Delta Corp unit gets interim relief on Rs 6,384 Crore GST notice- Daily Market Update - Equity 7 Dec 2023 | Globe Capital Market LTD.
Delta Corp unit gets interim relief on Rs 6,384 Crore GST notice- Daily Market Update – Equity 7 Dec 2023

The Calcutta High Court has granted interim relief to a unit of Delta Corp in a matter relating to the Rs 6,384 crore payment of the shortfall goods and services tax. The court directed that no effect be given to any order passed by the tax authority in relation to the show-cause notice, the company said in an exchange filing on Wednesday.

Overview and Outlook

Global Stock Market Today

  • US equity markets ended on a flat to negative note.
  • European equity markets settled in green, up in range 0.34% to 0.74%
  • Majority of Asian equity markets are trading in red
  • GIFT Nifty is trading down by 66 points, Nifty futures likely to open around 21030 levels (as on 8:30AM)


News highlights from across the globe

  • U.S. treasury yields continued to fall as private payrolls declined more than market expectations fueling investors’ bet the Federal Reserve is done with monetary tightening, and may start loosening from next year.
  • Share indices in Asia-Pacific region were trading on a mixed note tracking overnight losses on Wall Street, and as U.S. treasury yields declined.


Important news updates from the domestic front

  • Bharat Electronics received orders worth Rs 3,915 crore for the supply of various defence equipment.
  • Ircon International: The Government is to sell an 8% stake via OFS at a floor price of Rs 154 per share, 4% of which includes base size and green shoe of 4%. OFS to non-retail to open on Dec. 7 and for retail on Dec. 8.
  • Delta Corp: The High Court of Calcutta has granted interim relief to subsidiary Deltatech Gaming of Rs 6,384 crore for which a GST notice was sent in October.
  • Network18 Media & Investments will merge its television and digital news businesses with itself. Under the scheme of amalgamation, TV18 Broadcast shareholders will get 100 fully paid-up equity shares of Rs 5 each of Network18 for every 172 equity shares held in the broadcast company.
  • One 97 Communications expands its credit distribution business to enhance focus on higher-ticket loans for consumers and merchants in partnership with banks and NBFCs.
  • Adani Ports and Special Economic Zone will consider a proposal to raise funds through a bond issue in its board meeting on Dec. 12.
  • Vedanta: The company’s subsidiary Hindustan Zinc Board approved a second interim dividend of Rs 6 per equity share for FY24, amounting to Rs 2,535 crore.


Nifty Overview & Outlook

The Benchmark Nifty index extended gains for the seventh consecutive trading sessions, settled at record highs i.e. 20937 levels after adding 82 points to its previous closing values.

The broader markets performed in-line with the benchmark as Nifty Small & Midcap was up 0.38% and 0.33% respectively; resultant, strong market breadth.

Performance on the sectoral front was mix. Amongst them, Nifty Media Index was the top gainer, rose over 2% followed by Nifty FMCG, IT, Oil & Gas Indices that settled higher in range 1% to 1.5%. On the other hand, Nifty Pharma and Bank index witnessed some selling pressure, fell 0.69% and 0.38% respectively.

Technically, Nifty Index is well placed on multiple chart frames. Going ahead, we reiterate our bullish view on Nifty index till it is trading above 20500 levels on closing basis and expect it to test 21000 and higher levels in near term. However, possibility of some profit taking can not be ruled out at this juncture.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty futures as open interest increased by 3.8%, long unwinding was seen in Banknifty futures  with decrease in open interest by 8.2% and some short buildup was seen in Finnifty futures with increase open interest by 8.3%.

On the sectoral front, long buildup was seen among Technology, Metals, Chemical, Power and Capital Goods stocks whereas some short buildup was seen among Textile and Pharma shares. Long unwinding was seen in Cement and Banking stocks.

On options front, put writing was seen at multiple strikes and maximum positions are at 21000 CE and 20800 PE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 80 Cr in the cash segment, sold stocks futures worth Rs 464 Cr and bought index futures worth Rs. 2041 Cr. DIIs were net buyer in the cash segment to the tune of Rs 1372 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 211200-21205; Supports 20730-20580

Banknifty – Resistances 47870-47500; Supports 46350-45900

Finnifty – Resistances 21240-21450; Supports 20700-20490




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