Mumbai: Distressed asset funds may make a beeline for India following a recent Supreme Court order upholding the primacy of secured creditors in the Essar Steel case. While Lone Star, Cerberus, Brookfield and Varde Partners may ramp its India investments, New-York based Blue-Mountain Capital is thinking of investing in Indian assets, experts said. India’s apex court recently paved the way for global steel giant ArcelorMittal to take over Essar Steel after it upheld the primacy of financial creditors in the distribution of funds received under a corporate insolvency scheme. The judgment gave clarity to the implementation of the insolvency law. It also raised expectations that deal activity by global sponsors specialising in stressed assets may rise. Several specialised players may either look for an India entry or set up their own platforms in India. “Certainly, IBC is becoming a mature law and clarity is being provided to distressed asset investors through landmark … [Read more...] about More distressed asset funds may enter India now
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Nifty options data hints at 12,200 levels this week
The build-up of open interest (OI) — traders’ outstanding buy-sell positions — on Nifty weekly options suggests that the market would move in a 300-point range between 11,950 and 12,250 this week with a slight bias toward the upside, said derivatives analysts, adding that once a new high was made, the index would consolidate or even possibly correct. A thaw in the US-China trade standoff is a positive but negative industrial growth for the third month running in October, slowing economy and rising retail inflation at home could put the brakes on a run-away rally and keep markets range-bound, they believe. The chances of an upside in the very short term from Friday’s closing of 12,087 were marginally higher because of likely short covering amid lower implied volatility, heavy put writing at 12000 and positive FII positions in index futures, they added. Nifty options expiring December 19 show that the price of a 12100 straddle — call and put of same … [Read more...] about Nifty options data hints at 12,200 levels this week
‘BUY’ or ‘SELL’ ideas from experts for Monday, 16 December, 2019
NEW DELHI: Domestic equity market is likely to open lower on Monday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty)and mixed Asian cues. At 8:25 am the SGX Nifty was 18 points or 0.15 per cent lower at 12,131.50. ET Now spoke to various experts and here's what they have to recommend for today's trade: Kunal Bothra independent market expert Tata Motors is a 'Sell' call with a target price of Rs 171 and a stop loss of Rs 182. Tech Mahindra is a 'Buy' call with a target price of Rs 780 and a stop loss of Rs 750. CK Narayan of Chart Advise DLF is a 'Buy' call with a target price of Rs 236 and a stop loss of Rs 225. Hindalco is a 'Buy' call with a target price of Rs 216 and a stop loss of Rs 205. Chandan Taparia of Motilal Oswal HDFC is a 'Buy' call with a target price of Rs 2445 and a stop loss of Rs 2306. Hindalco is a 'Buy' call with a target price of Rs 220 and a stop loss of Rs 202. (Views and recommendations given in this section are the analysts' own … [Read more...] about ‘BUY’ or ‘SELL’ ideas from experts for Monday, 16 December, 2019
GSK weighs multi-billion new year bonanza by cashing out HUL stake
GlaxoSmithKline (GSK) Plc is exploring its exit from Hindustan Unilever Limited (HUL), the Indian unit of Unilever Plc, early in the New Year, said people with knowledge of the matter. This comes about a year after the former’s publicly traded nutrition business, GSK Consumer Healthcare, agreed to merge with the country’s largest pure play consumer goods company, said multiple people aware of the matter. GSK Plc said it would sell the stake once the merger was completed in early 2020. It didn’t say when it would do so and that the sale would occur in “tranches”. The company is hoping to cash out what will be a near 6 per cent stake in HUL after a pending merger approval comes through, possibly by the end of this month. The groundwork has already been initiated with feelers going out to some marquee institutional investors keen to buy into the India consumption story. On completion of the merger, GSK’s stake, based on the Friday close of Rs … [Read more...] about GSK weighs multi-billion new year bonanza by cashing out HUL stake
Indian firms with Europe exposure on D-Street watchlist
Britain’s ruling conservative party, led by Boris Johnson, has won the general election with a thumping majority. A decisive outcome to a Brexit-dominated election should allow Johnson to fulfil his plan to take the UK out of the European Union by January. Analysts see this as a positive for about two dozen stocks in the auto, pharma and IT sectors that have exposure to the country. The potential unravelling of regulatory changes in the new order could spell opportunity in the form of new business — but only over the medium-to-long term, according to most of the analysts. In recent years, risk and regulatory compliance-related work has been a growth driver for the BFSI in Indian IT. Top Indian software services firms like Tata Consultancy Services, HCL Technologies, Tech Mahindra and Mindtree get 20-40% of revenue from Europe. However, some of the companies which have set up shop in the UK for gaining access to the European markets too, may have to rework their business … [Read more...] about Indian firms with Europe exposure on D-Street watchlist
