Weekly Recap; T+1 settlement, Sensex rebalance, Market movers and More!

Indian equity markets had a gap-down start on Monday, tracking losses across major Asian markets. Rising infections in China and concerns about the economic fallout spooked the markets. In addition, hawkish commentary from the US Fed damaged nascent hopes of an early end to the current cycle of rising benchmark interest rates.

The BSE Sensex edged lower. The BSE Sensex lost 207 points to start the week at 61,456.33 points. Similarly, the NSE Nifty 50 slid 61.25 points to start at 18246.4 points. 

On Friday, the indices ended a choppy session mildly in the green. It was the first trading session of the December F&O series. The BSE Sensex gave up 63,000 levels and closed at 62,294 points, up 20 points. While the Nifty 50 gained 28 points to close at 18512.75 points. Rising COVID restrictions in China continued to negatively impact the global growth forecast. 

Market Movers 

Some of the top gainers this week were Easy Trip Planners Ltd. (up 32.23%), PB Fintech Ltd. (up 23.95%), RHI Magnesita India Ltd. (up 23.36%), Punjab National Bank (up 20.99%), and Rashtriya Chemicals & Fertilizers Ltd. (up 20.89%). 

On the other hand, some of the top losers were One97 Communications Ltd. (down 13.82%), Adani Transmission Ltd. (down 12.12%), Delhivery Ltd. (down 9.69%), Avanti Feeds Ltd. (down 8.61%), and Hindustan Zinc Ltd. (down -8.37%). 

The Recap 

In this week’s recap, we’ll take a look at the acquisition of Dalmia Bharat’s refractory business, Sensex’s rejig, the revised settlement cycle for F&O stocks and more. 

RHI Magnesita to acquire the Indian refractory business of Dalmia Bharat Refractories 

Vienna-based RHI Magnesita has announced the acquisition of the Indian refractory business of Dalmia Bharat Refractories Ltd. (DBRL) for ₹ 1,708 crores. A share swap will happen through its Indian subsidiary RHI Magnesita India Ltd (RMIL), which will acquire all outstanding shares in Dalmia OCL in exchange for 27 million new shares in RMIL. This acquisition will add production capacities in important industrial regions in the south and west region where the company had no assets. 

Tata Motors to replace Dr Reddy’s Laboratories in the SENSEX 30 index

Domestic auto giant Tata Motors is set to replace pharma company Dr Reddy’s Laboratories in the BSE Sensex. This rejig could lead to buying of $150 million in Tata Motors by passive funds tracking the Sensex. On the other hand, Dr Reddy’s is likely to see outflows of $113 million, according to IIFL Alternative Research. After this, Sun Pharma will be the only healthcare stock in the Sensex. 

T+1 settlement cycle for all F&O stocks from Jan:

Stock exchanges on Wednesday said that all stocks, on which derivatives contracts are available, will be transitioned to the T+1 (trade plus one day) settlement cycle from January

2023. This means that market trade-related settlements will need to be cleared within one day of the actual transactions taking place. In the first phase, the bottom 100 stocks were made available for introducing T+1 settlement, from the trade date of February 25. The next 500 stocks from the bottom will be made available for introduction to T+1 settlement every month till January 2023. 

Adani group’s ₹ 493 cr open offer for NDTV kicked off 

Adani group’s open offer to acquire an additional 26 per cent stake in the media firm New Delhi Television (NDTV) from the market started on Tuesday. About 28 lakh shares were tendered by the shareholders of NDTV by the end of the third day. This amounts to 16.54% of the offer size. Adani’s offer price is ₹ 294 per share, while NDTV shares settled at ₹ 368.40 on Thursday, which is 25.3 per cent higher compared to the offer price. 

Adani to raise Rs 20,000 cr through a fresh share issue 

Billionaire Gautam Adani’s conglomerate on Friday said Adani Enterprises will raise ₹ 20,000 crores in equity to fund expansions, through the issue of fresh equity shares. The Adani group had previously stated that it is working on plans to increase the free float. The conglomerate has made forays into a diverse array of businesses with dealmaking in recent months. It recently acquired Holcim’s Indian cement companies for USD 10.5 billion, India’s second-biggest deal of the year. 

Written by Simran Bafna