Finvezto Daily Market Bytes, 06 Dec 2024
BSE’s Strategic Move; RBI’s New Challenge; Mishtann Promoter Ban; Key Stock Updates. Your daily dose of byte-sized market updates in simple words.
In today’s edition, we cover:
BSE’s Strategic Moves Shine Bright
RBI’s New Challenge - Inflation up; Growth down.
Mishtann Promoter Ban
Key Stock Updates
Here’s a quick market snapshot before we start. Bitcoin dropped below 100000. GIFT Nifty indicates a flat start to the Indian markets.
1/4 BSE’s Strategic Moves Shine Bright
BSE share price zoomed 15% yesterday and 110% in the last year.
Not just that, its market share in Derivatives segment has zoomed to 13% in the last 1.5 years since introducing Sensex Options. It had hardly any market share a couple of years back.
BSE also recently shifted weekly Sensex contracts expiry to Tuesday from Friday effective from Jan 2025. Previously, Sensex expiry was on Friday. One day after Nifty Expiry.
The shift from Friday to Tuesday allows Options traders 3 days to focus on BSE contracts instead of one. This might further increase derivatives turnover for BSE.
2/4 RBI’s New Challenge - Inflation up; Growth Down.
Reserve Bank of India (RBI) will announce its monetary policy decision today at 10 AM following a three-day meeting.
Governor Shaktikanta Das leads his final MPC meeting before his term ends December 10. The focus remains on handling high inflation which hit 6.21% in October versus RBI's target of 4.8%. It is also beyond RBI’s upper band of 6%.
GDP dipped to 5.4% in July-September from 6.7% last quarter. This marks a seven-quarter low.
Inflation up and GDP down. Will be interesting to see what the RBI comes up with.
The central bank is likely to maintain repo rate at 6.5% for eleventh straight meeting since February 2023. Tune in at 10 AM.
3/4 Mishtann Promoter Ban
Market regulator bars Mishtann Foods MD and three directors for misappropriating funds through fictitious transactions and rights issues.
MD Hiteshkumar Patel sold company shares worth ₹50 crore between July and August 2024 while steadily reducing his stake since March.
SEBI discovered that the company created fake sales worth ₹47.10 crore through group entities over seven years from 2018 to 2024 under the watch of four directors.
The company attempted to bypass SEBI oversight by splitting a ₹150 crore rights issue into smaller tranches under ₹50 crore which don't require regulatory approval.
Regulators ordered Mishtann Foods to return ₹49.82 crore from misused rights issue proceeds and ₹47.10 crore diverted through fictitious transactions.
4/4 Key Stock Updates
New Orders
NBCC subsidiary HSCC wins Maharashtra health projects worth ₹599.35 crore.
Tantia Constructions bags ₹151 crore ropeway project in Shillong.
Tembo Global secures domestic water irrigation project worth ₹43.89 crore.
Tejas Networks selected for Tamil Nadu's BharatNet broadband connectivity initiative.
Harsha Engineers signs €6-10 million annual bearing cages supply agreement.
Partnerships, Investments & Acquisitions
Zen Technologies partners with AVT Simulation for US defense expansion
KIMS increases Arunodaya Hospitals stake to 70.66%
GPT Healthcare signs MoU for hospital construction in Jamshedpur.
Canara Bank gets RBI nod for 13% AMC and 14.5% insurance stake sale.
Core Business Updates
Eugia Pharma receives USFDA approval for 200mg Pazopanib Tablets.
Vibhor Steel's Sundargarh Unit III plant ready for January 2025 operations.
Electronics Mart launches new Bajaj Electronics multi-brand store.
Corporate Actions
Bharat Forge sets QIP floor price at ₹1,323.54.
SEBI directs Mishtann Foods to return ₹100 crore from dubious transactions.
Management Changes
Nykaa Fashion CEO Nihir Parikh resigns effective December 5.
Cummins India CFO Ajay Shriram Patil to step down January 9.
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Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This daily update highlights market trends for your awareness. It does not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.