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Research Periodic Report Legal Setback for TCS, Stake Increases for Adani, Strategic Moves by Paytm, and Vodafone’s Indus Tower Sale

Legal Setback for TCS, Stake Increases for Adani, Strategic Moves by Paytm, and Vodafone’s Indus Tower Sale

Written by - Fisdom Research

June 18, 2024 4 minutes

Opening Bell:             

Gift Nifty is up by 29.0 points in the early morning trade, indicating a positive opening for Indian stock market                            

Asian markets experienced gains, following an overnight record rally on Wall Street driven by technology stocks. Japan’s Nikkei 225 increased by 0.84%, and the Topix advanced by 0.64%. South Korea’s Kospi climbed 0.9%. Hong Kong’s Hang Seng index futures suggested a positive opening.     

The US stock market closed sharply higher on Monday, with the S&P 500 and Nasdaq reaching record closing highs, driven by a surge in technology shares and excitement about artificial intelligence. The Dow Jones Industrial Average rose 188.94 points, or 0.49%, to 38,778.10. The S&P 500 climbed 41.63 points, or 0.77%, to 5,473.23, and the Nasdaq Composite increased by 168.14 points, or 0.95%, to 17,857.02.

Stocks News:

👉 Tata Consultancy Services (TCS) announced that it has received an adverse judgment from the United States District Court for the Northern District of Texas, Dallas Division. The court ruled that TCS is liable for a total of $194.2 million, comprising $56,151,583 in compensatory damages, $112,303,166 in exemplary damages, and $25,773,576.60 in prejudgment interest. TCS plans to defend its position by filing a review petition or appealing to the appropriate court.

👉 Adani Enterprises: Gautam Adani and Adani Group companies have increased their stake in Adani Enterprises by over 2% through open market purchases from September 2023 to June 2024. Their total shareholding in Adani Enterprises has risen from 71.95% to 73.95%.

👉 Paytm and Zomato: Paytm, owned by One97 Communications, is in advanced talks with Zomato to sell its movie and events ticketing business as part of a strategy to revamp amid declining sales. The discussions are ongoing, and no final decision has been made. Additionally, Paytm has appointed Rajeev Krishna Muralilal Agarwal, a former Indian Revenue Service (IRS) officer and SEBI whole-time member, as a non-executive independent director, replacing Neeraj Arora, who resigned due to personal commitments.

👉 Indus Tower and Vodafone Idea: Vodafone Group may sell its entire $2.3 billion stake in Indus Towers through block deals next week. This move is part of Vodafone Idea’s strategy to raise funds for its ambitious 5G rollout and 4G coverage expansion plans.

👉 The Foreign institutional investors (FIIs) turned net buyers on June 14 as they bought equities worth Rs 2175 crore, while domestic institutional investors also bought equities worth Rs 655 crore on same day.

Domestic and International Events

  • India’s trade deficit widened to a seven-month high of $23.78 billion in May, government data showed. While merchandise exports rose by 9.1% YoY to $38.13 billion last month, imports also increased by 7.7% to $61.91 billion from $57.48 billion, YoY.
  • The Bank of Japan is likely to trim bond buying by around 24 trillion yen ($152 billion) annually in new guidance due next month, but forgo raising interest rates at least until September, former board member Makoto Sakurai said on Monday. At its policy meeting on Friday, the BOJ decided to start trimming its huge bond purchases and announce a detailed plan in July on reducing its nearly $5 trillion balance sheet, taking another step toward unwinding its massive monetary stimulus.
  • 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 Seng17,936(0.0) %
Shanghai Composite3,016(0.6) %
Dow Jones38,7780.5 %
DAX18,0680.4 %
FTSE 1008,142(0.1) %
Nikkei38,102(1.8) %
Straits Times3,298(0.8) %

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