Category: News

The Indian stock market is expected to stay stable on Friday due to weak signals from around the world. On Thursday, the Nifty futures index dropped by 0.97% to reach 24,021 points.

Looking at options trading, most investors believe the Nifty will struggle to rise above the 25,000 mark. They are focusing on two sections: the highest number of call options (which bet on prices going up) is at 25,000 and 26,000. Meanwhile, the most put options (which bet on prices going down) are found at 23,000 and 24,000.

There’s talk of call options being sold at 24,000 and 24,200, while put options are sold at 24,000 and 23,500. This information suggests the Nifty will likely trade between 23,400 and 24,400 points, with a closer range of 23,700 to 24,200 points.

Chandan Taparia, an expert from MOFSL, says the Nifty created a small bullish candle on Thursday, indicating a slight rise, but it went down for four days in a row. If it stays under 24,000, we may see it drop to 23,850 or 23,500. If it goes up, it could face challenges at 24,150 and 24,350.

Experts have suggested some stocks to watch for short-term trading:

Amol Athawale (Kotak Securities)
– Wipro: Buy | Target Rs 323 | Stop Loss Rs 307
– SAIL: Buy | Target Rs 123 | Stop Loss Rs 115
– Coal India: Buy | Target Rs 405 | Stop Loss Rs 386
– Apollo Hospitals: Buy | Target Rs 7,540 | Stop Loss Rs 7,210

Kunal Bothra (Market Expert)
– LIC: Buy | Target Rs 925 | Stop Loss Rs 880
– Abbott India: Buy | Target Rs 30,000 | Stop Loss Rs 28,500

Nooresh Merani (Technical Analyst)
– Infosys: Buy | Target Rs 2,050 | Stop Loss Rs 1,920
– Lupin: Buy | Target Rs 2,250 | Stop Loss Rs 2,140
– Muthoot Finance: Buy | Target Rs 2,250 | Stop Loss Rs 2,050

Disclaimer: The views and suggestions provided by the experts are their personal beliefs and do not represent the views of Niftystat)

Reliance Industries, a famous company in India, is making news again! They have restarted a deal with Venezuela’s state oil company, PDVSA, to swap oil. This agreement had stopped for some time because of rules from the U.S. government. However, in July, the U.S. allowed this oil trade to happen again, according to a letter from PDVSA.

Just earlier this month, a large ship carrying around 1.9 million barrels of Venezuelan oil left for a port in India called Sikka. In return, Reliance sent a smaller shipment of 500,000 barrels of another kind of oil back to PDVSA.

But not everything is good news for Reliance this year. 2024 has been tough, and their stock prices are likely to end in the red. This is the first time in nearly ten years that the company’s shares are falling. Since their highest price in July, the value of Reliance shares has dropped by around 21%, losing more than ₹4.4 lakh crore in value.

In the past, Reliance did very well, with a fantastic 70.55% return in 2017 and steady profits until 2020. But now, their growth is slowing down. In 2021, their return fell to 19.32%, then 7.60% in 2022, and just 1.44% in 2023. Analysts are becoming careful with their predictions, mentioning problems like slower growth, rising costs for buildings, and a need for spending to grow the business. Additionally, the quick rise of companies that deliver things fast is putting pressure on what Reliance makes, especially in the retail part of their business.

According to data from Niftystat, experts say there could be a better future for Reliance. They have an average target price of ₹1,602 for the stock, which means it could go up by 30% from current prices. 37 analysts agree on a ‘Buy’ recommendation for Reliance shares.

On Thursday, Reliance shares closed at ₹1,230.60, which is down 1.8%. This drop came while the main market index, the Sensex, also went down by 1.12%. The stock has fallen over 16% in the last three months, and 4% over the past year, leaving the company’s total value at ₹16,65,293 crore.

Disclaimer: The opinions and suggestions from experts do not necessarily represent the views of Niftystat.

IndusInd International Holdings (IIHL) is talking to big investors like Barclays and Bank of America to raise ₹4,300 crore to help buy Reliance Capital by the end of January. Barclays is putting in ₹1,000 crore on its own in this deal. IIHL is offering a yearly return of 15% on bonds that will be backed by Reliance Capital shares after getting permission from the Reserve Bank of India (RBI).

Last September, IIHL managed to raise ₹3,000 crore with a slightly lower return of 14.5%. This new money will help IIHL finish buying Reliance Capital, which costs ₹9,861 crore in total. IIHL also plans to sell some of Reliance Capital’s less important assets, mostly real estate in Mumbai and land in Gujarat, to raise another ₹1,000 crore.

The goal is to focus on growing Reliance Capital’s business, and they want to sell off 35 of the 39 subsidiaries by March. The chairman, Ashok Hinduja, has said they want Reliance Capital’s value to reach $50 billion by 2030, up from $15 billion last year.

IIHL has taken all necessary steps to finalize the acquisition of Reliance Capital and will soon list its insurance units separately within two years.

In Mumbai, international investors are facing a challenge when they want to invest in Indian companies for the long run. They are asking the government and financial regulators to change a rule. Right now, if a foreign investor buys shares in an Indian startup using the Foreign Direct Investment (FDI) method, they cannot also invest in the same company using the Foreign Portfolio Investment (FPI) method later.

This rule makes it hard for investors who want to stay with a company for a long time. These investors want to support startups, track how well they are doing, and later earn money when the company goes public through an Initial Public Offering (IPO). Unfortunately, this rule, made in 2019, is stopping them from doing so.

Recently, important groups like the Investment Company Institute from Washington and the Asia Securities Industry & Financial Markets Association based in Hong Kong have reached out to the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the finance ministry to address this problem.

Siddharth Shah, a senior partner at a law firm, explains that the RBI sees FDI and FPI as two different types of investments. FDI is a long-term investment, while FPI is more about making quick money without long-term commitment. But with today’s complex investing environment, this strict rule might not make sense anymore. Investors may want to increase their shares, but they are forced to follow complicated regulations to do so.

For example, a foreign investor may buy shares in an unlisted startup (under FDI) but then can’t buy more shares when the company goes public (under FPI). Another scenario is if an FPI holds 9% in a company and wants to increase it to 12%. This new 12% would be seen as FDI, making it difficult to buy shares from the market to reach 15%.

Some FPIs have tried to find solutions by creating special companies to invest in IPOs, but this is not allowed under India’s rules.

The good news is that while the finance ministry has asked for more details, and SEBI seems open to change, the RBI might have the final say. Investors hope to change the rules and make it easier to invest in Indian startups.