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The market today breadth was positive as 36 of Nifty50 stocks advanced during the day. Reliance Industries (+2.9%) and top IT stocks such as Infosys (3.1%), TCS (2.5%) and HCL Tech (2.3%) have gained while banks like HDFC (3.5%), ICICI Bank (-2.4%) and Axis Bank (-1.7%) fell. The overall market favourable and will witness upside rally in coming days as well.
CCI approves Reliance retail- Future group (Big Bazar) deal:-
Reliance Industries (2.9%) surged in today’s market, and Future Group companies such as Future Retail and Future Lifestyle hit the 10% upper circuit. Competition Commission of India (CCI) nodded for the acquisition of specific future group business by RIL. Last month, the Singapore International Arbitration Centre (SIAC) had passed an interim order in favour of Amazon. That bared Future Retail from taking further steps to dispose of its assets. Therefore, the decision of the Delhi High court matters a lot in this case,
RBI’s banking proposals set a positive mood for Pvt. Banks
The ownership structure of private banks proposed to raise the limit on the promoters’ stake from 15% to 26%. Indusind bank (+3.7%), where there is scope for increasing the promoters’ stake, moved high. Further, Equitas Holdings and IDFC locked in the 20% upper circuit. Small finance banks such as Equitas SFB (+12.7%) and Ujjivan SFB (+19.8%) saw shares spike along with higher volumes. The panel has also suggested considering sizeable non-banking finance companies (NBFC) and industrial houses to apply for banking licences. Allowing promoters to increase their stake would mean more due diligence as promoters will be considering the increased shareholding. . Further, the entry of new players would make the banking system competitive and better for the customers.
The week started on a positive note for the nifty. The RBI panel’s proposal to grant banking licenses to industrial houses and large NBFC opens up more competition in the banking sector. The better match will bring high value to the table.
Regards
StockTradingF&O team
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