MarketBuzz
1229: Marketbuzz Podcast With Hormaz Fatakia: 23,000 in sight for the Nifty with Axis Bank, Gland Pharma in focus
(upbeat music) - Good morning and welcome to CNVC TV18's Market Bus Podcast with me, Hormos Fatakia. First up, festive greetings to all our friends and listeners who are celebrating Goody Parva today. We hope the new year brings lots of joy, happiness and gains to your portfolio. And once again, after a small pause, we are back with a day that is full of QIPs, block deals and whatnot. Now starting up with block deals, where Bain Capital is likely to sell up to 3.34 crore shares in Axis Bank, the lower end of the price ban, which is 1,071 rupees a share, is a half a percent discount to Monday's closing price. And this is likely to be a clean out trade from Bain Capital. The other block deal today that is likely to take place is in Gland Pharma, where Nicomac machinery and RP advisory services may sell up to 4.4% equity at a floor price of 1,725 rupees a share, which is a 7.3% discount to Monday's closing price. Now this is likely to be a 1,400 crore rupee block deal. Now interesting timing though, as the shares of Gland Pharma have corrected over 15% from their recent 52 week high of over 2,000 rupees. Joining the list of companies looking to cash in on the positive market sentiment is Sturlight Technologies who launched a QIP last night to raise up to 1,000 crore rupees according to sources. Now they also said that the equity dilution may be 22% of the current outstanding and that is according to sources who spoke to CNBC TV18. The indicative price according to the same sources is the 11.2% discount to Monday's closing price. Now another company that launched a QIP on Monday is Shilpa, Medicare. And that floor price has been set at 477 rupees a share. A company that closed its QIP on Monday is Orion Pro Solutions. And that company raised 337 crore rupees through this exercise. The funds that were issued shares include Goldman Sachs, Malabar India fund, which already owns stake in the company. And Hirenweids, alchemy. They were some of the institutions that were issued shares. Now moving from block deals and QIPs, Tata Motors saw JLR report a 16% year on your jump in fourth quarter hole sales while retail sales went up by 11% from last year. Dixon Technologies is also signed a share purchase agreement to acquire up to 56% equity in a company called iSmart2. Now this acquisition will be done in two tranches. iSmart2 is based in Noida and is involved in manufacturing, distribution, import and export of mobiles, tablets and electronic devices. Now there are a lot of other stocks that you need to focus on and you can read about all of those on cnbctv18.com. Onto the markets then and Monday was a day of records with the NFT, the mid cap index and the NFT bank all making new records. But only the NFT managed to hold on to those levels courtesy of Reliance and with strong support from LNT. However, the same can't be said of the other two indices. The mid cap index sold off over 300 points from the days high as did the NFT bank which could not sustain at higher levels. Now that begs the question, is the broader market rally showing signs of exhaustion at higher levels? Well, we all know that the mid and small caps don't like such questions as every time they are raised, they bounce back with equal ferocity. So we'll keep an eye out on all of these indices today. Interestingly, my colleague Nigel DeSouza pointed out that the fall in the mid cap select index yesterday coincided with a drop in Indian hotels. Now Indian hotels has the highest weightage in the mid cap select index and the stock fell as much as 7% in a sharp intraday drop before clawing back most of those losses. Now today is also the expiry of the nifty financial services index so expect some action in that space. The Asian markets have opened higher this morning despite a range bound session on Wall Street. All the three benchmark indices in the US ended flat overnight. But another factor to watch out for though will be the treasury yields in the US and that 10 year over there is now at 4.42%. Oil prices are also back above the $90 a barrel while gold is also holding onto record highs. So barring Asia, there is not much support from global queues for our own markets across asset classes. Yet the gift nifty is indicating another 100 point uptick for our own markets as we speak. So another gap up opening likely this morning. Now that's all for today. Once again, goody part of our greetings to you all. We wish you a wonderful trading day and a delightful year ahead. And of course for the sharpest market insights stay tuned to CNVCTV18 and CNVCTV18.com. [MUSIC PLAYING] [MUSIC PLAYING] [BLANK_AUDIO]