Reliance’s Acquisition, Mankind Pharma Stake Sale, Maruti Suzuki Recall, and ICICI Securities Warning

Opening Bell:

Gift Nifty is up by 24.5 points in the early morning trade, indicating a positive opening for Indian stock market

Tuesday saw a mixed performance in Asian markets, mirroring overnight losses on Wall Street. Japan’s Nikkei 225 remained largely unchanged, whereas the Topix dipped by 0.07%. Conversely, South Korea’s Kospi surged by 1.14%, reaching its highest level in two years, while the Kosdaq edged up by 0.18%. Hong Kong’s Hang Seng index futures hinted at a marginally positive opening.

In the US, stock market indices closed lower on Monday as the recent market rally exhibited signs of fatigue following the most significant weekly percentage gains for the year. The Dow Jones Industrial Average fell by 162.13 points, or 0.41%, settling at 39,313.77. Similarly, the S&P 500 decreased by 15.97 points, or 0.31%, ending at 5,218.21. The Nasdaq Composite wrapped up 44.35 points, or 0.27%, lower at 16,384.47.

Stocks News:

👉 Reliance Industries, owned by billionaire Mukesh Ambani, has obtained board approval for the acquisition of 100 percent equity shares of MSKVY Nineteenth Solar SPV and MSKVY Twenty-second Solar SPV from MSEB Solar Agro Power. This acquisition aligns with the terms of the tender awarded to Reliance for establishing an aggregate solar capacity of 128 MW across various locations in Maharashtra under the Mukhyamantri Saur Krushi Vahini Yojana 2.0. The acquisition is slated to conclude by the end of April 2024.

👉 Mankind Pharma is expected to sell up to a 2.90 percent stake in the pharmaceutical company through block deals, as reported by CNBC-TV18, citing sources. The offer price ranges from Rs 2,103 to Rs 2,214 per share, representing a discount of 0-5 percent compared to Friday’s closing price. Currently, Beige holds a 2.99 percent stake in Mankind.

👉 Maruti Suzuki India, the largest carmaker in the country, has recalled 11,851 units of Baleno and 4,190 units of WagonR manufactured between July 30, 2019, and November 1, 2021. This recall is due to a potential defect in a component of the fuel pump motor, which could, in rare instances, cause engine stalling or starting issues. Additionally, Maruti has invested Rs 1.99 crore in Amlgo Labs, a technology-led startup, acquiring over 6.44 percent of its shareholding.

👉 ICICI Securities has received an administrative warning from the Securities and Exchange Board of India (SEBI) following an inspection of its books and records for merchant banking activities conducted in December 2023. However, this warning letter does not impact the financial, operational, or other activities of the company.

👉 Foreign institutional investors (FIIs) net sold shares worth Rs 3,309.76 crore, while domestic institutional investors (DIIs) bought Rs 3,764.87 crore worth of stocks on March 22, provisional data from the NSE showed.

Domestic and International Events

• Despite last week’s outflows from US exchange-traded funds, Bitcoin enthusiasts seem unfazed as the largest cryptocurrency surged back above $70,000. On Monday, most digital assets experienced gains, with Bitcoin soaring as much as 7.1 percent to $70,816, marking its return above the $70,000 threshold after more than a week. Ether also saw an uptick of around 6 percent, while Solana and Dogecoin recorded increases of over 4 percent each.

• Geopolitical tensions escalated following Russia’s strikes on critical infrastructure in Ukraine’s western region of Lviv. Reports indicated that one Russian cruise missile briefly breached Polish airspace during the major airstrike, which saw a total of 57 missiles and drones launched, including an attack on the capital, Kyiv. Meanwhile, in the Middle East, the Houthis renewed their threats against Saudi Arabia.

• Gold prices rose on Monday, driven by expectations of interest rate cuts by the US Federal Reserve this year even as traders await inflation readings this week for confirmation on the timing of these reductions. Spot gold gained 0.5 percent to $2,175.68 per ounce, while silver rose 0.2 percent to $24.71.

• Oil prices surged more than 1 percent on Monday amid escalating hostilities between Russia and Ukraine, as well as tensions in the Middle East. Brent crude futures rose by $1.05, or 1.2 percent, reaching $86.48 a barrel, while US crude futures gained $1.15, or 1.4 percent, hitting $81.78. Both benchmarks have seen steady increases this year, with Brent up nearly 11 percent and WTI rising approximately 12.5 percent by Friday’s close.