Will Nifty trade above 21,700 levels or fall ahead? See GIFT Nifty, FII data, F&O ban, crude, more before market opens GIFT Nifty indicated that Indian equity indices BSE Sensex and NSE Nifty 50 may see a positive opening on Thursday. Here is all you need to know before the market opens. GIFT Nifty traded up by 10.90 points or 0.05% at 21,720 indicating a positive opening for domestic indices NSE Nifty 50 and BSE Sensex on Thursday. Previously, on Wednesday, the NSE Nifty 50 gained 73.85 points or 0.34% to settle at 21,618.70, while the BSE Sensex ended higher by 271,50 points or 0.38% to 71,657.71. Mishra also added that, We are seeing a balancing act by select heavyweights amid the mixed trend in banking and IT majors. And, indications are in the favor of prevailing consolidation to continue in the index thus participants should maintain their focus on stock selection and risk management. U.S. stocks, bonds and the dollar saw small moves, with investors awaiting Thursday’s inflation data for clues on the Federal Reserve outlook, reported Bloomberg. The tech-heavy Nasdaq Composite gained 86.41 points or 0.58% at 14,944.12. The S&P 500 jumped by 22.43 points or 0.47% at 4,778.93, while the Dow Jones Industrial Average ended higher by 164.80 or 0.44%. The US Dollar Index (DXY), which measures the value of the dollar against a basket of six foreign currencies, traded down by 0.06% at 102.30. WTI crude prices are trading at $71.24 down by 0.18%, while Brent crude prices are trading at $76.60 down by 0.26%, on Thursday morning. Shares in the Asia-Pacific region are trading in mixed territory on Thursday morning. The Asia Dow is trading up by 0.49%, Japan’s Nikkei 225 is green, up by 2.01%, Hong Kong’s Hang Seng index is trading down by 0.57% and the benchmark Chinese index Shanghai Composite is trading lower by 0.54%. Foreign institutional investors (FII) offloaded shares worth net Rs 1,721.3 crore, while domestic institutional investors (DII) bought shares worth net Rs 2,080 crore on January 10, 2023, according to the provisional data available on the NSE. The NSE has added Balrampur Chini Mills, Bandhan Bank, Chambal Fertilizer, Escorts Kubota, Hindustan Copper, Indian Energy Exchange, India Cements, Indus Tower, National Aluminium, Piramal Enterprise, PVR Inox, SAIL, and Zee Entertainment to its F&O ban list for January 11, 2024. Commenting on the Technical outlook of Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, said the Nifty index bounced back strongly from its important support at 21,500, indicating that the bulls are quite active at this level. The Nifty closed at 21,623, near its resistance. If it manages to close above 21,700-21,750 levels, we might see the Nifty reaching 22,000. For those looking to buy Nifty, the recommended range is between 21,550-21,600. Set a stop loss at 21,480 and aim for a target of 21,750. “The Bank Nifty index experienced a volatile trading session on the day of weekly expiry, but the bulls successfully defended the crucial support level of 47000. Despite this, the overall market sentiment remains in “sell on rise” mode. The immediate hurdle for the index is at 47500, where the highest open interest is concentrated on the call side. To initiate a short-covering move and potentially target the 48000 mark, the index needs to convincingly surpass the level of 47500 on a closing basis,” said Kunal Shah, Senior Technical & Derivative Analyst, LKP Securities.
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.
The regulator had undertaken a series of surveillance actions to ensure that the volatility in the Adani group companies’ share prices was contained. This will be a part of the brief to the finance minister on Wednesday, the sources said.