Sensex Today Ends 165 Points Higher; Realty Index Sinks 4%

After opening the day firm, Indian share markets gave up some gains as the session progressed and ended the day marginally higher.

After clocking tepid gains in early deals, the benchmark indices rose sharply higher in intraday trade on Tuesday amid buying in TCS, Infosys, HCL Tech.

At the closing bell, the BSE Sensex stood up by 165 points (up 0.2%).

Meanwhile, the NSE Nifty closed lower by 3 points.

TCS, Infosys, and Maruti Suzuki were among the top gainers today.

Cipla, Grasim Industries, and Adani ports, on the other hand, were among the top losers today.

The GIFT Nifty ended at 22,435 up by 12 points.

Broader markets ended the day lower. The BSE Mid Cap ended 1.4% lower and the BSE Small Cap index ended 2.1% lower.

Barring the IT sector, all sectoral indices are trading negative, with stocks in the realty sector and power sector witnessing selling pressure.

Shares of TCS, Indigo and Oracle Financial hit their respective 52-week highs today.

The rupee is trading at 82.8 against the US$.

Gold prices for the latest contract on MCX are trading 0.2% lower at Rs 66,425 per 10 grams.

Meanwhile, silver prices are trading flat at Rs 74,530 per 1 kg.

Why ITC Share Price is Falling

In news from the FMCG sector, shares of ITC experienced a decline in the early trading session on Tuesday, 12 March 2024.

The decline in shares came after an announcement from British American Tobacco (BAT), regarding a potential disposal of a small part of its shareholding in the Indian conglomerate through an on-market block trade.

BAT has roped in Wall Street banks to help with the same.

The company is looking to raise Rs 168-252 billion (bn) (US$ 2-3 bn) by selling a 3.5 to 4% stake in the Indian tobacco-to-consumer goods conglomerate.

As of December 2023 disclosures, BAT holds the largest share in ITC, with ownership exceeding 29%

The British tobacco seller has held a stake in India's ITC since the early 1900s and is the largest shareholder in the company, with more than a 29% stake.

As per BSE, BAT's shareholding in ITC is held via Rothmans International Enterprises (1.2%), Myddleton Investment Company (3.9%), and Tobacco Manufacturers (India) (23.9%).

BAT is seeking to divest its stake, driven by its substantial debt exceeding US$ 40 bn and a recent write-down of US$ 32 bn in the US.


ITC is one of the best dividend-paying stocks. 

Apart from that, we also covered an editorial a couple of months ago explaining why the prospects for ITC look good. 

Sanghi Industries rises 8%. Here's why.

Moving on to news from the cement sector, Adani Group-owned Ambuja Cements on 12 March intends to divest up to 2% stake in Sanghi Industries to comply with minimum public shareholding norms.

The stake sale will begin from 13 March 2024 till 6 February 2025, or the actual date of completion of the sale of all equity shares, or whichever is earlier, in one or more tranches.

In December 2023, Ambuja Cements announced the completion of the acquisition of Sanghi Industries at a revised offer price of Rs 121.9 per share.

Pitti Engineering Acquires Bagadi Chaitra Industries

Moving on to news from the engineering sector, Pitti Engineering (PEL) share price traded flat on 12 March after the company signed an agreement with Bagadia Chaitra Industries Private Limited (BCIPL) and its shareholders to acquire 100% of the equity share capital of BCIPL at an enterprise valuation of Rs 1.2 bn.

The cost of acquisition would be arrived at by adjusting the said enterprise value for the net debt and working capital changes on the closing date and subject to other adjustments that are mutually agreed between the parties.

As part of the overall consideration, PEL will infuse up to Rs 400 m as funding into BCIPL on the closing date to repay the existing debt in BCIPL.

Closing of the proposed acquisition is subject to the fulfillment of condition precedents as agreed between the parties.

BCIPL is a manufacturer of electrical laminations and aluminum die-cast rotors for AC/DC motors, alternators, pumps, home appliances, electrical vehicles, and more, with major geographical exposure to the south Indian market.

BCIPL operates out of Tumkur district, Karnataka, where it has its manufacturing facilities and an installed capacity of 18,000 tonnes per annum.

This acquisition would help PEL broaden its presence in South India, add to the overall asset base and production capacity, provide entry into new end-use sectors, and help with new customer acquisitions.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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