News Shots
Zee Entertainment’s shareholder Invesco will sell a 7.8% stake in the company. Once the bookbuild is complete Invesco will continue to own at least an 11% stake in the company.
IDFC bank signed a definitive agreement to sell IDFC asset management company and IDFC AMC trustee to a consortium comprising Bandhan Financial Holdings, GIC and Chrys Capital for a consideration of Rs 4500 crore. It also declared an interim dividend of Rs 1 per equity share, 10% of paid-up share capital.
Godrej Consumer reported sales growth in the high single-digit, driven entirely by pricing. Unprecedented commodity inflation and subsequent price hikes impacted volumes. Within categories, personal care sustained its double-digit growth trajectory, primarily led by pricing.
Titan’s overall revenue drops 3%. Revenue of its jewellery business dropped 4% YoY.
Tata Steel executed a share purchase agreement to acquire the entire equity stake of Steel Authority of India held in S&T Mining Company, a Joint Venture between SAIL and the company. On completion of the acquisition, S&T Mining will become a wholly-owned subsidiary of the company.
What to Expect?
NIFTY opened with a gap-down at 17,852 and was volatile for the first ten minutes. There was bearishness though an attempt was made to move higher. Nifty fell again and consolidate to close at 17,808, down 150 points or 0.83%.
BANK NIFTY opened lower at 37,734 and followed the general market by moving down though without violent moves. BNF closed the day at 37,633, down 435 points or 1.14%.
Metals moved higher.
The US markets had a volatile yesterday and closed in the red. The European markets also dropped.
The Asian markets are down. The U.S. Futures and the European futures are trading in the red.
SGX NIFTY is trading at 17,761 indicating a gap-down opening.
NIFTY has supports at 17,780, 17,700, 17,620 and 17,600. We can expect resistances at 17,840, 17,890 and 17,965.
BANK NIFTY has supports at 37,500, 37,390 and 37,190. Resistances are at 37,700, 37,800 and 38,000.
NIFTY has the highest call OI build-up at 18,000 followed by 18,100 and 17,900. The highest put OI build-up is at 17,500 followed by 17,800.
BANK NIFTY has the highest call OI build-up at 38,000 and the largest put OI build-up is at 37,500.
INDIA VIX is at 19.
Foreign Institutional Investors net sold shares worth Rs 2,300 crores. Domestic Institutional Investors net bought shares worth Rs 600 crores.
The Fed Minutes was responsible for the volatility and the fall in the US markets. Fed is planning a rapid reduction in the balance sheet. The reduction will be at the rate of $95 Billion per month. Fed also indicated a hike of 50 basis points.
Experts said that there is a higher chance for RBI to maintain an accommodative stance in their latest monetary policy to be out tomorrow. However, we cannot rule out the chance for a hike in the reverse repo rate.
India’s agricultural exports have touched a new peak at $50 Billion.
Zelensky said that Russia has not abandoned its plan to occupy the whole of Ukraine. German Finance Minister said that they should give up Russian oil and gas and it should happen as soon as possible. The world is awaiting fresh sanctions on Russia.
India was warned by the US Economic Adviser regarding alignment with Russia.
We can see that all the markets are down with hawkish Fed minutes. We will open lower but what we will have to wait and see is whether there is enough negativity to pull the markets even lower.
Compared to last week, India VIX is lower whereas the S&P VIX has spiked.
Let us closely watch 17,600 if there is a further fall. Get ready for a volatile expiry!
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