Mahindra & Mahindra promoter to sell stake worth upto Rs 1832 crore: Daily Market Update - 07 March 2024 | Globe Capital Market LTD.
Mahindra & Mahindra promoter to sell stake worth upto Rs 1832 crore: Daily Market Update – 07 March 2024

A Mahindra & Mahindra Ltd promoter entity plans to pare its stake in the automaker by offering 0.75% equity in the secondary market for Rs 1,832 crore. Prudential Management and Services Pvt has offered to sell up to 93 lakh shares in the Mahindra Group company. The price range for the sale of shares is Rs 1,911.5–1,970.65 apiece Management consulting firm Prudential Management held an 11.64% stake in Mahindra & Mahindra as of December 2023. Kotak Securities Ltd. is the sole bookrunner for the deal.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled higher in range0.2% to 0.5%.
  • European equity markets settled on a flat to positive note.
  • Majority of Asian equity markets are trading in green.
  • GIFT Nifty is up by 60 points , Nifty futures is likely to open around 22650 levels (as on 8:30AM).


News highlights from across the globe

  • Asian equity markets are trading in green on Thursday, mirroring overnight moves on Wall Street after Federal Reserve Chair Jerome Powell affirmed rate cuts are likely this year.
  • Brent crude was trading 1.12% higher at $82.96 a barrel.


Important news updates from the domestic front

  • Vedanta is exploring all possible legal solutions, including the possibility of filing a review petition against the top court’s decision that rejected the mining giant’s plea to restart operations at its copper smelter in Thoothukudi, Tamil Nadu.
  • Infosys has announced the renewal of its digital innovation partnership with the ATP Tour until 2026, aimed at driving AI-first innovations in professional tennis.
  • Hindustan Aeronautics has signed an amendment to the LCA IOC contract. The value of the contract has been revised from Rs 2,700.87 crore to Rs 5,077.95 crore.
  • Mahindra & Mahindra: Promoter Prudential Management and Services has offered to sell up to 93 lakh shares or 0.75% equity, in the company for Rs 1,832 crore.
  • Bajaj Finserv’s unit reported a Rs 1,294 crore general insurance gross direct premium for the month of February and a Rs 1,050 crore life insurance premium for the month of February.
  • Asian Paints’s unit entered into the requisite agreements with Gujarat Chemical Port to set up an ethylene storage and handling facility in Dahej, Gujarat.
  • Glenmark Pharmaceuticals has started the process of selling 55% of its subsidiary, Glenmark Life Sciences, to Nirma. Glenn Saldanha resigned from the position of Chairman, Non-Executive Director, effective March 6.
  • NLC India: The government will sell up to 9.71 crore shares, including the green shoe option, via an offer for sale at Rs 212 per share.
  • Exide Industries will invest Rs 70 crore in unit Chloride Metals to finance long-term capital requirements.
  • UPL’s unit, UPL Corp., signed a pact with Masarrah Investment for a manufacturing complex in Saudi Arabia.


Nifty Overview & Outlook

Benchmark Nifty index settled at new all time highs i.e. 22474 levels after adding 118 points to its previous closing values.

Broader markets underperformed the frontline index as Small cap and Midcap indices were down nearly 2% and 0.5% respectively against 0.5% advances of frontline index.

Majority of sectoral indices tracked at NSE settled in green. Amongst them, Nifty Bank and Healthcare index was at the top of the tally, up nearly 1% each followed by Nifty IT, Pharma and Pvt Bank index that rose over 0.5% each. On the other hand, Nifty Media, Metal, Realty and Oil & Gas Index were down in range 0.5% to 2.54%.

Technically, Nifty index is well placed on multiple time frames. Going ahead, we reiterate our bullish view on Nifty index and expect it to test 22650 levels in immediate near term till it is trading above 21850 levels on closing basis.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Nifty futures with increase in open interest by 7.7%. Short covering was seen in Banknifty and Finnifty futures with decrease in open interest by 2.2% and 3.2% respectively.

On the sectoral front, fresh long buildup was seen in Technology shares, whereas Short buildup was seen in Oil & Gas, Cement, Finance and Telecom share.

On options front, put writing was seen at multiple strikes and maximum positions are at 22000 PE and 23000 CE.


Institutional Trading Activity

Yesterday, FIIs bought stocks worth Rs 2767 Cr in the cash segment, sold stocks futures worth Rs 450 Cr and bought index futures worth Rs 1396 Cr. DIIs were net buyer in the cash segment to the tune of Rs 2150 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22680-22740; Supports 22350-22270

Banknifty – Resistances 48200-48440; Supports 47750-47440

Finnifty – Resistances 21220-21300; Supports 21000-21100


F&O Securities in Ban Today  – MANAPPURAM, MGL, ZEEL.


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