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Research Periodic Report Stake Sale by Interglobe, Major Contracts for RVNL, Cintra’s Stake Sale in IRB, and NLC India’s Fundraising

Stake Sale by Interglobe, Major Contracts for RVNL, Cintra’s Stake Sale in IRB, and NLC India’s Fundraising

Written by - Fisdom Research

June 11, 2024 4 minutes

Opening Bell:             

Gift Nifty is up by 51.5 points in the early morning trade, indicating a positive opening for Indian stock market                            

Asian stocks traded within a narrow range on Tuesday, as investors weighed fresh political uncertainty in European markets following right-wing gains in elections and a snap poll in France, which reignited concerns about the bloc’s cohesion. Movements were modest, with MSCI’s broadest index of Asia-Pacific shares outside Japan dipping 0.4% in thin trade, and Chinese blue chips declining by 0.7%. Conversely, Japan’s Nikkei firmed by 0.3%, and South Korean stocks rose by 0.5%. EUROSTOXX 50 futures edged up 0.2%, steadying after Monday’s retreat, while FTSE futures increased by 0.1%.    

The S&P 500 and Nasdaq reached record closing highs on Monday, although investor caution prevailed ahead of this week’s consumer prices report and a Federal Reserve policy announcement. Nvidia shares provided some support to both indices, ending up 0.7% following a 10-for-one stock split. This gain has fueled speculation that the chip maker might soon be included in the blue-chip Dow. The Consumer Price Index (CPI) report for May is scheduled for release on Wednesday, coinciding with the conclusion of the Fed’s two-day policy meeting. The Dow Jones Industrial Average rose by 69.05 points, or 0.18%, to close at 38,868.04. The S&P 500 gained 13.8 points, or 0.26%, to finish at 5,360.79, and the Nasdaq Composite added 59.40 points, or 0.35%, to close at 17,192.53.

Stocks News:

👉 Interglobe Aviation: Interglobe Enterprises, a promoter entity of Rahul Bhatia, is planning to sell a stake worth $394 million in Indigo Airlines’ parent company, Interglobe Aviation, via a block deal. The entity currently holds a 37.75% stake in Interglobe Aviation. The proposed sale, which marks the first time in many years that Bhatia is looking to unlock value, involves offloading around 2% of his stake in the company.             

👉 RVNL: Rail Vikas Nigam Limited has been selected as the lowest bidder by Central Railway for work in the Amla-Nagpur Section in the Nagpur division of Central Railway, aiming to achieve a 3000 MT loading target. Separately, a consortium of Siemens and RVNL has secured a contract worth ₹394 crore from Bangalore Metro Rail Corporation Ltd (BMRC), which involves engineering, supply, erection, testing, and commissioning of various systems, to be executed within 130 weeks.

👉 IRB Infrastructure Developers: Cintra, a subsidiary of Spanish infrastructure group Ferrovial, is expected to sell up to a 5% stake in IRB Infrastructure Developers through a block deal. The deal, priced between ₹63-70.16 per share, represents up to a 10.2% discount to the last closing price. The transaction size is approximately ₹1,900.3 crore at the lower end of the price band.

👉 NLC India: NLCIL has announced that its board has approved the plan to raise up to $600 million through External Commercial Borrowings (ECB) to meet its business requirements. Additionally, the board granted in-principle approval for an investment of up to ₹994.50 crore in NLC India Renewables, a wholly-owned subsidiary of NLC India.

👉 Foreign institutional investors (FIIs) extended their buying on the second day on June 10 as they bought Indian equities worth Rs 2,572.38 crore, while domestic institutional investors turned net buyers as they purchased equities worth Rs 2,764.46 crore on same day.

Domestic and International Events

  • Retail sales of cars in India fell 1% in May, tracking slowing wholesale growth, as elections and extreme heat across the country dampened demand and delayed purchase decisions, a dealers’ body said on Monday. Sales growth in two-wheelers slowed to 2.6% in May from 33% in April, said the Federation of Automobile Dealers Association (FADA), which tracks monthly retail sales from dealers to buyers. Overall retail sales across segments, which include two-wheelers and commercial vehicles, grew 2.6% in May, compared with a 27% rise in April.
  • Japan’s economy contracted less than initially reported in January-March on upward revisions to capital spending and inventory data, lending modest support to the central bank’s plans to raise interest rates again this year. Analysts expect the Japanese economy to have bottomed out in the first three months of the year, although a stubbornly weak yen and disruptions at major automaker plants continue to cloud the outlook for the current quarter.
  • Oil prices rose on Tuesday, extending the previous day’s rally on hopes of higher seasonal fuel demand and potential U.S. crude purchases for its petroleum reserve, though gains were capped by a firmer dollar.
Hang Seng18,367(0.6) %
Shanghai Composite3,0510.1 %
Dow Jones38,8680.2 %
DAX18,495(0.3) %
FTSE 1008,228(0.2) %
Nikkei39,0380.9 %
Straits Times3,322(0.3) %

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