ZEE clarifies no merger talks happening, Union Bank announces QIP, Yum Brands stake sale and more

Opening Bell:

Gift Nifty is up by 17 points in the early morning trade, indicating a negative opening for Indian stock market.

Asian markets were trading lower on Wednesday, tracking Wall Street losses.

Japanese manufacturers’ business confidence fell in February, tumbling to -1 compared to the previous month’s reading of 6, according to the Reuters Tankan poll. That marks the first negative reading since last April.

US stocks ended lower on Tuesday, with the Nasdaq showing the largest declines as chipmaker Nvidia stumbled ahead of its highly awaited earnings report, while gains in Walmart kept losses on the Dow Industrials in check. The S&P 500 lost 30.06 points, or 0.60 percent, to end at 4,975.51 points, while the Nasdaq Composite lost 144.87 points, or 0.92 percent, to 15,630.78. The Dow Jones Industrial Average fell 64.19 points, or 0.17 percent, to 38,56.80.

Stocks News: 

👉 Zee Entertainment Enterprises Ltd on Tuesday clarified that the talk of renewed talks with Sony to revive the scrapped merger deal is incorrect and that the company is “not involved in any negotiations”. Earlier on Tuesday, The Economic Times reported, quoting sources, that ZEEL had re-engaged with Sony Corp to revive the $10-billion merger in a last-ditch effort.

👉 PSU lender Union Bank of India on Tuesday announced a Rs 3,000-crore qualified institutional placement (QIP) at a floor price of Rs 142.78 per share.

👉 Yum Restaurants India is likely to sell its entire 4.4 percent stake in quick service restaurant firm Devyani International through a block deal to raise Rs 814.8 crore, CNBC-TV18 reported on February 20 quoting sources. Floor price is likely fixed at Rs 153.5 per share, a 7.6 percent discount to Devyani International’s closing price on Tuesday.

👉 Novelis Inc, a wholly owned subsidiary of Hindalco, on February 20 announced that it has submitted a draft registration statement with the US Securities and Exchange Commission (SEC) about its proposed initial public offering (IPO) of its common shares. The common shares are expected to be offered by Novelis’ sole shareholder (a wholly-owned subsidiary of Hindalco Industries Limited). Novelis will not receive any proceeds from the sale of common shares by its sole shareholder.

👉 Foreign institutional investors (FIIs) net sold shares worth Rs 1,335.51 crore, while domestic institutional investors (DIIs) purchased Rs 1,491.33 crore worth of stocks on February 20, provisional data from the NSE showed.

Domestic and International Events

• According to the RBI’s State of the Economy article, the likelihood of the global economy exhibiting stronger than expected growth in 2024 has brightened in recent months, with risks broadly balanced. The growth momentum of the Indian economy from the first half of the current financial year is seen continuing into the second half, according to the Reserve Bank of India’s (RBI) monthly bulletin.
• Recent data has shown signs of improvement in global manufacturing activity, including in the United States, and market participants will assess incoming economic data to determine the trajectory of interest rate cuts of major central banks.
• Gold price extends its bullish streak for the fourth straight trading session on Tuesday. The outlook for the precious metal has strengthened as commentary from Federal Reserve (Fed) policymakers that inflation is broadly moving in the right direction has faded the impact of stubborn Consumer Price Index (CPI) and Producer Price Index (PPI) data for January.
• Oil prices regained some ground in early Asian trade on Wednesday, as investors weighed concerns over output cuts by key producers and attacks on shipping in the Red Sea against dimmed expectations of U.S. rate cuts.