News Shots
Adani Ports has acquired Dighi Ports for Rs 705 crore, and plans to invest Rs 10,000 crore in Maharashtra.
L&T Finance Holdings has closed its rights issue to raise Rs 2,998.61 crore, which was oversubscribed by 15%.
TVS Srichakra, part of the TVS group manufacturing tyres, signed a Memorandum of Understanding with Tamil Nadu Government for an investment program of Rs 1,000 crore.
Heritage Novandie Foods has started commercial production. It is a 50-50 joint venture between Heritage Foods and Novandie of France.
A US subsidiary of Infosys has acquired an automated new business and underwriting platform from STEP Solutions.
IndusInd International Holdings, promoters of IndusInd Bank, has completed c rights issue to raise capital. Have also pledged 4.27 crore shares or 5.6% stake with Catalyst Trusteeship. Might be for infusion of residual capital by conversion of warrants issued to them last year worth over ₹2,695 crore.
The Tata group is acquiring 68% stake in online grocery platform BigBasket. Deal is valued around Rs 9,500 crore.
Global IT Giant IBM and Tech Mahindra said they are deepening collaborations, especially in areas like 5G, hybrid cloud, automation and cybersecurity. They plan to work towards building a billion dollar ecosystem over the next three years.
UltraTech Cement approved issuing U.S. Dollar denominated notes worth $400 million or Rs 2,900 crore due on February 16, 2031. With a coupon rate of 2.8% per annum, the notes will be listed on the Singapore Exchange Securities Trading platform.
What to expect today?
NIFTY tried to consolidate in the early hours of the market yesterday, but sudden profit booking took the index down. Nearly 200 points fall from high to low. But in the end Nifty closed just 1 point down. Reliance supported Nifty. You can read all about yesterday’s movements here.
Bank Nifty’s case was interesting. 4 PSU Banks went up 20% yesterday, but they did not have any weightage on the index and Bank Nifty fell. Mostly due to Axis Bank and ICICI Bank falling.
US markets opened after a holiday on Monday, closed flat as consolidation kicked in. Asian markets are mixed, with many even in the red.
US Treasury bond yields have hit new highs since last February, as investors prepare for the next round of stimulus. Some money is surely flowing away from the equity market to the bond market, and we may see reduced participation from FIIs today.
SGX NIFTY is trading slightly lower at 15,266, indicating a gap-down opening in the Indian Market.
NIFTY has immediate support at 15,240 that we have discussed then at 15,200. Looking up, NIFTY continues to have immediate resistance at 15,300 and 15,380.
Foreign institutional investors (FIIs) net bought shares worth Rs 1,144 crore, and domestic institutional investors (DIIs) net sold shares worth Rs 1,559 crore in the Indian equity market. Net selling by the institutions in the cash market.
With global markets also correcting following us, we can expect some consolidation in Nifty. Kotak Bank and HDFC Bank managed to close in the green yesterday and can be watched.
Reliance alone pushed up Nifty 17 points yesterday, indicating any weakness in the stock will push the index down.
Like we discussed on TSMS, call options were written aggressively in the market yesterday. OI data show Nifty may close between 15,200 and 15,300 for this week, but of course this may change.
Let us wait for a clear directional cue before entering trades today. Might be a volatile day along with consolidation, just like yesterday.
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