MarketBuzz
1270: Marketbuzz Podcast with Hormaz Fatakia: IRB Infra, IndiGo block deals, TRIL QIP in focus
Good morning and welcome to CNBC TV18's Market Bus Podcast. I'm Harmas Patakya. Well, the big and the much awaited event is finally out of the way as clarity emerged on Monday evening about portfolio allocations in the Modi 3.0 government. The major ministers of the Modi 2.0 cabinet have retained their ministries with Amit Shah retaining home, the Sita Raman retaining finance, Rajnath Singh retaining defense, S. J. Shankar retaining external affairs, and of course, within Ghatkari retaining the road transport ministry. But the highlight of the portfolio allocation was TDPs Ram Mohan Naidu who at 36 years of age has become India's youngest cabinet minister ever and he has been tasked with the challenging civil aviation ministry. Well, he does have his task cut out considering one of the airlines heading for a potential liquidation. The other is on cash and carry mode and the issues that the other incumbents are currently plagued with. You can read more about who got which portfolio on cnbctv18.com. Back to the markets then and for all the adrenaline rush we witnessed in the market last week, I must say that Monday's trading session was underwhelming of sorts. But as underwhelming as it was, the price action made it seem like business as usual for the market. Then if the open made a new high remained flat for most of the session and then faced selling pressure at higher levels. Now at close, the Nifty finished in the red 150 points away from the new record high of 23/4/11 that it made on Monday. But before that 23/300 also remains the first hurdle to cross for the index as it closed below that mark on Monday. Now most analysts that I spoke to believe that the chances of a pullback or a minor correction are higher on the Nifty considering the overbought setups on the charts. But nothing to worry here. They advise buying those dips with your stop losses in place. Of course, the standard disclaimer, this is not our recommendation. So please do your own due diligence before taking positions. The Nifty bank was almost unchanged from Friday's levels. It did cross the mark of 50,000 briefly on an intraday basis but could not sustain above those levels. Therefore, that 50,000 level remains the barrier for the Nifty bank and it is still substantially away from its previous record high of 51/133. So when did the art performance come from? The small cap indices. Even as the mid cap index moved in line with the benchmarks and ended flat, the small cap index emerged as the out performer with gains of over a percent. Pharma, PSU banks and real estate were some of the out performers among the sectoral indices. We had highlighted IT as a sector to watch out for on Monday because of the out performance that it saw last week and IT was indeed the biggest laggard as the sector witnessed profit booking from higher levels post the jobs data that came out from the US on Friday. The sector was also in focus because of the large block deal that took place in emphasis yesterday where the black stone back promoter entity turned out to be the seller. Now among the buyers, Kotak Mahindra, mutual fund Morgan Stanley and society general brought shares worth over 2,000 crore rupees. Now the list of block deals doesn't end here as they continue into today as well. Now interglobe aviation or indigo is the first one where promoter Raoul Bhatia's family unit interglobe enterprises is likely to sell up to 77 lakh shares or close to 2% equity in a deal valued at nearly 3300 crore rupees. The floor price of 4,266 rupees a share is a 7% discount to Monday's closing price. The other block deal comes from IRB Infra where Cintra who is an affiliate of Ferovel is likely to sell up to 5% stake. The deal price here ranges from 63 rupees to 70 rupees a share and at the lower end of the price ban the deal is likely to be valued at close to 1900 crore rupees. There will also be a lock up of 150 days for the selling shareholder for any further sale. Now IRB Infra's promoters also recently sold some of their stake via block deals to keep an eye out on this stock as well. And in news just coming in another block deal is likely to take place in Hanasa consumer or mama earth as they call it sources have told CNBC TV 18 that fireside ventures and sophina ventures are likely to sell up to 1% stake with an option to upsize that to up to 2%. The floor price of 421 rupees a share is a discount of 8% to Monday's closing price and at the floor price the upsized option deal would be worth close to 275 crore rupees. Vodafone idea will be in focus after its issue of shares to ATC telecom the company is now buying another equity issuance to settle vendor dues. Now the board will meet on the 13th of June to consider the issues of either shares or convertible securities to these vendors on a preferential basis. So keep an eye out on Vodafone idea as well. Transformers and rectifiers has launched a QIP to raise funds to the tune of 500 crore rupees sources have told CNBC TV 18 that the indicative price is 665 rupees a share which is a 9.3% discount to yesterday's close. In fact the floor price of 699.95 a share is a 4.5% discount to Monday's closing price. Now the company intends to use these proceeds to fund their Kpex requirements, repay their borrowings, use it for working capital in organic growth and general corporate purposes. RVNL has emerged as the lowest bidder for a central railway project worth 138 crores. Additionally, the company who is in consortium with Siemens has also won the letter of award for a Bengaluru metro rail corporation project that is worth close to 400 crore rupees. Also watch out for NLC India as the company intends to raise a foreign currency loan through external commercial borrowings in any foreign currency to the tune of 600 million dollars through the direct route. The company will also invest up to 994 crores in one or more tranches in NLC India renewables a wholly owned subsidiary by subscribing to their equity shares at face value. Now this is subject to approval from the disinvestment ministry. In global market updates, the US markets ended higher last night as the 2-day FOMC meeting begins today. The S&P 500 and the NASDAQ both closed at a record high. The CME FedWatch tool is now pricing in just one rate cut this year. This time the bets are on November. Asian markets have opened mixed this morning and the gift nifty as we speak is indicating a rather flat start for our own markets as well. There is also tension brewing between Tesla and Apple where Elon Musk has lashed out at the iPhone maker for its partnership with OpenAI that integrates chat GPT into the iPhone. He said that this threat to data security will make him ban iPhones at his companies. More updates on that on cnbctv18.com. In today's weather forecast for Mumbai, the city is likely to continue witnessing thunderstorms with lightning, heavy rainfall and gusty winds that can go up to 50-60 km/h at isolated places. Fishermen are also advised to not venture out along the North Maharashtra coast. That's all for today. We wish you a happy trading day and hope that you keep yourself safe as the monsoon rains begin to lash the city. Thank you so much for tuning in. [BLANK_AUDIO]