Nifty to reclaim or 18700 or bears to drag index below 18400? 7 things to know before share market opens Indian benchmark indices are likely to open in green amid strong global cues. SGX Nifty hinted at a positive start for domestic equities as Nifty futures were trading 84 pts or 0.45% up at 18785 level on the Singapore Exchange. In the previous session, BSE Sensex fell 51 points to 62,130, while the NSE Nifty 50 gained 0.60 points at 18,497. “Traders are advised to focus on stock-specific actions; because even if we are not witnessing bigger moves in moves, a lot of thematic moves have started to cut loose. In fact, taking a glance at the Nifty Midcap50 index, we reiterate that stocks from the cash segment are providing excellent opportunities. Hence, identifying such key movers is the key for momentum traders,” said Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One.Key things to know before share market opens Global market watch: Asia-Pacific markets traded higher on Wednesday, tracking gains in Wall Street indices. Japan’s Nikkei 225 gained 0.26% while the Topix was 0.24% higher. South Korea’s Kospi also rose 0.7%. In Australia, the S&P/ASX 200 was just above the flatline. US stocks rose overnight after an unexpectedly small consumer price increase buoyed optimism that the Federal Reserve could soon dial back its inflation-taming interest rate hikes, but concerns remained thar Fed could stay aggressive. The Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.73%, and the Nasdaq Composite added 1.01%. Levels to watch: “Bears remain in trap as 18350 levels are sustained. Volume profile indicates these levels are strong support for the coming days and stock-specific action would drive the market. On the derivatives front, the highest call OI is at 18700 strike price, followed by 18800 strike prices. While on the put side, highest OI remains at 18500, followed by 18400 strike price. On the other hand, Bank Nifty has support at 43300 levels while resistance is placed at 44600. As December comes to a close, the Indian equities market continues to be the strongest among its international counterparts thanks to multi-month highs in the Bank Nifty. Auto ancillaries and Metal may outperform in the near term,” said Om Mehra, Technical Associate, Choice Broking. FII and DII data: Foreign institutional investors (FIIs) net bought shares worth Rs 619.92 crore, while domestic institutional investors (DIIs) net bought equities worth Rs 36.75 crore on 13 December, according to the provisional data available on the NSE. Stocks under F&O ban on NSE: BHEL, Delta Corp, and GNFC are the three stocks under the NSE F&O ban list for 14 December. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95% of the market-wide position limit. US inflation subsides: US consumer prices rose less than expected for a second straight month in November, resulting in the smallest annual increase in inflation in nearly a year and giving the Federal Reserve cover on Wednesday to start scaling back the size of its interest rate increases. The consumer price index increased 0.1% last month after advancing 0.4% in October. Gasoline prices dropped 2.0% after rising 4.0% in October. The cost of natural gas fell as did prices for electricity. US Fed meet: After four consecutive mega-hikes of 75 basis points, the market is expecting Fed Chair Jerome Powell to moderate the pace of hikes to 50 bps amid early signs of moderation in inflation. The outcome of the two-day meeting of the Federal Open Market Committee (FOMC). last meeting of 2022, would be known today midnight. “Any upside surprises to the November US CPI inflation print, due just before the FOMC, would trigger a more hawkish bias to the Fed Chairs’ statement in the press conference. The robust labour market and other activity indicators continue to point towards a possibility of a higher terminal Fed rate in the coming FOMC,” Kotak Mahindra Bank said in a note.
The Japanese pharma major is also filing a plea before the Delhi HC seeking appointment of forensic auditors to analyse transactions involving IHH, Fortis Healthcare and RHT, Singapore, as directed by the HC on October 18.
The development is likely to create legal hurdles and delay the proposed open offer as IHH had recently told FE that it could only go ahead if Sebi agreed with its legal interpretation that the SC’s September 22 order has lifted all such restraints.
IHH managing director and CEO Kelvin Loh told FE on November 9 that the company would like to go ahead with the open offer “as soon as possible” as there has already been a delay of four years. Ravi Rajagopal, chairman of Fortis Healthcare, had added that their legal counsel has advised that the company can go ahead with the open offer as the SC order has disposed of various appeals, including the suo motu contempt. “We have represented to the Sebi and the matter is with them,” Rajagopal had said.
However, legal observers told FE that the matter is not that straightforward and simple as the Delhi HC has to take the final call on the matter of open offer as well as whether a forensic audit has to be done in the share sale which was executed in 2018.
Also Read: IHH to float open offer for Fortis if Sebi concurs with our legal view: MD & CEO
Loh and Rajagopal had said the possibility that the matter may take a different turn when it comes up in Delhi HC cannot be ruled out.
IHH had in July 2018 acquired a 31% stake in Fortis Healthcare for Rs 4,000 crore through the bidding route. It had also earmarked Rs 3,000 crore to make an open offer for an additional 26% to the public shareholders as required under the law.
Daiichi has written to Sebi that the SC in its September 22 order had asked the HC to consider ordering a forensic audit into the dilution of FHL shareholding, repeated violation of undertakings and assurance by former FHL promoters — Malvinder and Shivinder Singh — and the transaction between FHL, IHH and the clandestine transfer of Rs 4,666 crore to RHT Singapore.
Daiichi is “severely prejudiced” with IHH’s clandestine attempt to subvert the status quo order directed by the SC on December 14, 2018, and September 22 with respect to the conduct of forensic audit and the pending proceedings before the HC by purportedly consulting regulatory authorities, including Sebi, on the proposed FHL-IHH transaction. It has reiterated that the FHL-IHH transaction was currently sub-judice before the HC where FHL is also a party, its solicitors, P&A Law Offices, have said in the letter.
“We further state that any such attempt by FHL and/or IHH to proceed with the FHH-IHH transaction would be in direct contravention of the HC and SC orders,” the letter sent by the law firm has stated. Daiichi Sankyo is pursuing the enforcement of Rs 3,500-crore arbitration award against the Singh brothers pronounced by a Singapore tribunal for concealing information when they sold Ranbaxy Laboratories to it for $4.6 billion in 2008. The apex court had in 2018 put on hold the sale of Fortis Healthcare to IHH on a contempt plea filed by the Japanese drugmaker against the Singh brothers.