News Shots

RBI’s internal working group has recommended significant changes across the banking sector. Large corporate or industrial houses may be allowed as promoters, but only after necessary amendments to the Banking Regulation Act, 1949. The cap on promoters’ stake in the long run, over 15 years, may be raised from the current level of 15% to 26% of the paid-up voting equity share capital of the bank. Large NBFCs with an asset size of Rs 50,000 crore, including those owned by corporate houses, may be allowed to convert to private banks, subject to conditions.

Competition Council of India has approved acquisition of retail, wholesale, logistics and warehousing businesses of the Future Group by Reliance Retail Ventures and Reliance Retail and Fashion Lifestyle.

Bharti Airtel enters into an agreement to acquire a stake in Avaada MHBuldhana Pvt. Ltd. – a Special Purpose Vehicle formed for the purpose of owning and operating the Captive Power Plants. The company will acquire 5.2% stake for an overall consideration of Rs 4.55 crore.

A consortium backed by Oaktree Capital has offered to provide at least $2 billion of funding to Vodafone Idea.

Promoter Hinduja Group will get its wish to raise shareholding in IndusInd Bank to 26 per cent if the Reserve Bank of India accepts the report of Internal Working Group (IWG) on the review of extant ownership guidelines and corporate structure of Indian private sector banks.

Motherson Sumi – Guides for $36 billion in consolidated revenue and 40% RoCE by 2024-25 under its ‘Vision 2025’ program. Aims for no country, customer or component contributing to more than 10% of overall revenue. To use 40% of consolidated profit as dividend. Fell short of the 2020 targets due to Covid-19. 

Insurance technology firm Majesco announced a share buyback plan of up to Rs 631.26 crore. The buyback will open on November 27 and close on December 11. Interestingly, the buyback price is Rs 845 which is at a discount compared to the current market price of Rs 934.

The Reserve Bank did not issue the final merger scheme for Lakshmi Vilas Bank (LVB) with DBS India on Friday as stated earlier and is likely to do so only this week.

The world’s largest PE fund Blackstone is weighing its exit from Mphasis, the technology company it acquired from Hewlett Packard Enterprise in 2016, thereby paving the way for its biggest payday in India.

Canara Bank, Axis Bank, Indian Bank and South Indian Bank have acquired 6.67 per cent stake each in financial technology firm IBBIC.

Bharti Airtel feels that telecom tariff hike is needed as the current rates are “unsustainable” and market conditions will be seen before a call is taken.

Relaxo Footwears plans to invest Rs 150 crore in the current fiscal to set up a new manufacturing facility amid growing demand for open footwears such as slippers and sandals in the backdrop of the Covid-19 pandemic.

Prestige Estates Projects will develop four new housing projects in Bengaluru, Goa and Hyderabad with an investment of nearly Rs 2,000 crore amid recovery in demand for residential properties.

Lenders to CG Power and Industrial Solutions have agreed to a one-time loan restructuring to pave way for the Chennai-based Murugappa Group taking over the scam-hit equipment maker.

Rashtriya Chemicals and Fertilizers has recorded its highest ever daily sale of industrial products of Rs 5.44 crore on November 18.

Ashok Leyland has incorporated a wholly owned subsidiary ‘Vishwa Buses and Coaches Ltd’ (VBCL) with a paid-up share capital of Rs 60 crore.

BEML wins orders worth Rs 501 crore from the DMRC for additional 12 train sets of six cars each to operate on line 2B and 7 of the Mumbai Metro project. The total contract value now stands at Rs 4,318 crore from Rs 3,817 crore. The orders are for supplies before August 2023.

What to expect today?

NIFTY consolidated during last week, between 12,730 and 12,960. Click here for a detailed analysis of Friday’s market and stock movements. 

Bank Nifty, though highly volatile, consolidated and traded within a range of 28,600 to 29,800.

There is positive news around Reliance. Let us see if they can take Reliance up. Reliance going up by 10% can alone take NIFTY up by 200 points! That is when NIFTY might cross 13,000.

I maintain my view of 13,000 being a good resistance for NIFTY and that it will be difficult for NIFTY to break 13,000. We can see huge call open interest at 13,000.

The European markets are flat. The US markets are slightly down. Asian markets are slightly up, but most are flat. SGX NIFTY is trading at 12,950, which is 69 points higher, indicating a gap up opening in the Indian Market. 

NIFTY is likely to trade between 12,800 and 13,000.

Highest Call Open Interest at 13,000, followed by 13,500. Highest Put Open Interest at 12,000, followed by 12,800. 

Foreign institutional investors (FIIs) net bought shares worth Rs 3,860.78 crore, whereas domestic institutional investors (DIIs) net sold shares worth Rs 2,868.66 crore in the Indian equity market on November 20.

I think NIFTY will trade and consolidate inside the range of 12,500 to 13,000 for a period before it gives further movement. Stock specific rallies will still continue.

Watch out for the NBFC sector today after the RBI announcement. Also, do watch private banks like IndusInd Bank and Kotak Mahindra Bank  who are planning to raise promoter shareholding from 15% to 26%.

So, another week starting. Make sure you start the week on a positive note. Remember that the largest skill you need to win in the market is DISCIPLINE. Follow us on marketfeed app’s livefeed section to get real time updates from the market. All the best for the day!