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Research Periodic Report Indus Towers Stake Sale, HUDCO’s Syndicated Loan, Vodafone Idea’s Equity Conversion, and Kotak Mahindra Bank’s Stake Adjustment

Indus Towers Stake Sale, HUDCO’s Syndicated Loan, Vodafone Idea’s Equity Conversion, and Kotak Mahindra Bank’s Stake Adjustment

Written by - Fisdom Research

June 19, 2024 3 minutes

Opening Bell:             

Gift Nifty is up by 71.5 points in the early morning trade, indicating a positive opening for Indian stock market                            

Asian markets traded higher on Wednesday, following overnight gains on Wall Street. Japan’s Nikkei 225 rose by 0.61%, while the Topix increased by 0.56%. South Korea’s Kospi surged over 1%, and the Kosdaq added 0.27%. Hong Kong’s Hang Seng index futures pointed to a higher opening.    

The U.S. stock market ended higher on Tuesday, with the S&P 500 and Nasdaq reaching record highs, driven by a surge in chip stocks. The Dow Jones Industrial Average gained 56.76 points, or 0.15%, closing at 38,834.86. The S&P 500 rose 13.80 points, or 0.25%, to 5,487.03. The Nasdaq Composite added 5.21 points, or 0.03%, finishing at 17,862.23. Nvidia overtook Microsoft to become the world’s most valuable company with a market capitalization of $3.22 trillion.

Stocks News:

👉 Indus Towers: Vodafone Group Plc will sell a 9.94% stake in Indus Towers through a bulk deal at a price range of ₹310-₹341 per share. The sale, scheduled to open on Wednesday, is managed by Morgan Stanley, BofA Securities, Jefferies, and BNP Paribas.

👉 Housing and Urban Development Corporation (HUDCO): HUDCO has raised $200 million (JPY 30 billion) in its first venture into the syndicated loan market. The state-run body secured the five-year funds as part of its inaugural “social loan,” according to Japan’s Sumitomo Mitsui Banking Corporation (SMBC).

👉 Vodafone Idea: The company plans to request the government to convert into equity the annual installment for spectrum payments due in FY26/FY27 after the moratorium ends in September 2026.

👉 Kotak Mahindra Bank: The bank now holds a 30% stake in Kotak General Insurance Company after Zurich Insurance Company completed the acquisition of 70% of the insurance company’s share capital.

👉 The Foreign institutional investors (FIIs) extended their buying as they bought equities worth Rs 2569 crore on June 18, while domestic institutional investors also bought equities worth Rs 1555 crore on the same day.

Domestic and International Events

  • The Indian government’s net direct tax collection rose 20.99% year-on-year (YoY) to ₹4.63 lakh crore from April 1 to June 17, according to the Central Board of Direct Taxes (CBDT). This amount includes ₹1.8 lakh crore in corporate taxes and ₹2.81 lakh crore in personal income tax, based on provisional figures.
  • Production at U.S. factories increased more than expected in May, recovering all the declines from the previous two months. According to the Federal Reserve, manufacturing output jumped 0.9% last month following a downwardly revised 0.4% drop in April. Economists polled by Reuters had forecast factory output to rebound by 0.3% after a previously reported 0.3% fall in April. Year-on-year, factory output gained 0.1% in May.
  • U.S. retail sales barely increased in May, and data for the previous month was significantly revised downward, Reuters reported. Retail sales rose by 0.1% last month following a downwardly revised 0.2% decline in April. Economists polled by Reuters had predicted retail sales, which mainly consist of goods and are not adjusted for inflation, to rise by 0.3% in May.
  • Crude oil prices continued to rise on Tuesday, driven by a stronger demand outlook. Global benchmark Brent crude futures increased by 0.25% to $84.46 per barrel, while US West Texas Intermediate crude futures went up 0.2% to $80.49 per barrel. Both benchmarks surged around 2% on Monday, reaching their highest levels since April.
Hang Seng17,916(0.1) %
Shanghai Composite3,0300.5 %
Dow Jones38,8350.2 %
DAX18,1320.4 %
FTSE 1008,1910.6 %
Nikkei38,4821.0 %
Straits Times3,3020.1 %

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