Star terminates its $1.5 billion ICC TV rights deal with Zee.

Hello,
Yesterday, the markets closed higher, largely influenced by the Bank of Japan's decision to raise interest rates as part of its long-term strategy to reduce bond-buying. Star terminates its $1.5 billion ICC TV rights deal with Zee. Honda is notably lagging in the Indian electric two-wheeler sector. P2P lenders are requesting clarity from the RBI regarding secondary market participation by their investors. Additionally, the Akums Drugs IPO was subscribed 4.4 times on its second day.

Markets📊 
As of 31/07/2024 Market Close

• The Indian stock market benchmarks, Sensex and Nifty 50, closed higher for the fourth straight session on July 31, driven by positive global cues after the Bank of Japan (BoJ) raised interest rates.

• The BoJ's unexpected rate hike and its plan to gradually reduce bond-buying signalled a shift away from a decade of substantial economic stimulus.

Notable Gainer & Loser📈📉 
Source: Moneycontrol

Trent Ltd +4.07%

• Shares have extended their gains for the eighth consecutive session, climbing over 4 percent to hit a new record high of Rs 5,826 per share.

• This surge is fueled by anticipation that the retail company will be added to the Nifty 50 index in the upcoming September reshuffle.

IndiaMART InterMESH Ltd (6.61%)

• Shares plunged nearly 7 percent after the company reported an increase of only 1,500 subscribers in the quarter ending June, significantly missing analysts' expectations.

Yesterday’s Highlights📒 

• Star terminates its $1.5 billion ICC TV rights deal with Zee. (ET)

• P2P lenders seek RBI clarity on the secondary market participation of their investors. (ET)

• Here's why Honda is falling behind in the electric two-wheeler race in the Indian market. (BS)

• RBI issues draft framework on alternative authentication mechanisms for digital payment transactions. (ET)

• Sebi proposes relaxing the disclosure framework for certain FPIs. (ET)

• Godfrey Phillips to proceed with exiting the retail business under 24Seven. (ET)

• India's top private lenders report increasing farm loan defaults amid a weak rural economy. (ET)

• Steel ministry seeks investigation into cheaper imports from China and Vietnam. (ET)

• India will maintain popular bond tenors free from foreign investment restrictions. (RT)

Featured Highlight💡 
Sources: Mint, FE, BT

SEBI’s Proposed F&O Measures Could Reshape Indian Markets

• Proposal Overview: SEBI's proposals include rationalizing strike prices, upfront premium collection, and removing calendar spread benefits on expiry days. These measures aim to curb speculative trading and enhance market stability, with a focus on reducing high implicit leverage and improving investor protection.

• Impact on Market Volumes and Investor Count: SEBI's proposed changes to Futures & Options (F&O) trading are anticipated to lead to a 30-40% decline in market volumes and a reduction in investor count. The rationalization of weekly options and increased contract sizes are expected to particularly affect small retail investors.

• Predicted Earnings Impact: Analysts predict that NSE could see a 25-30% reduction in FY26 earnings due to the proposed measures, while BSE may experience a 15-18% impact. Changes in weekly contracts and increased minimum contract sizes could disproportionately affect retail-focused exchanges and discount brokers.

• Market Reactions: Analysts suggest that discount brokers and small retail investors might face significant challenges due to the tightening of F&O rules. However, gains from trading activity spillover and potential EPS upgrades could mitigate some negative impacts.

IPO / Issuances🚀 

• Adani Energy share sale receives three times the number of bids as buyers flock in. (BS)

• Unicommerce files its RHP as it gears up for its IPO launch on August 6. (EN)

• Akums Drugs IPO garners strong retail interest, with subscriptions at 4.4 times on day 2. (News18)

This week’s mainboard IPO schedule

• Akums Drugs and Pharmaceuticals (RHP)

  • Offering Period: 30 July - 01 August, 2024

  • Listing Date: 06 August, 2024

  • Issue Price: 646-679

  • Lot Size: 22

• Ceigall India (RHP)

  • Offering Period: 01-05 August, 2024

  • Listing Date: 08 August, 2024

  • Issue Price: 380-401

  • Lot Size: 37

• Ola Electric Mobility

  • Offering Period: 02-06 August, 2024

  • Listing Date: 09 August, 2024

  • Issue Price: 72-76

  • Lot Size: 195

Deal Activity🤝 

M&A / Investments

• Angel One infuses Rs 250 crore ($30Mn) into its wealth management arm. (ET)

• Nazara's Nextwave completes the acquisition of Ultimate Teen Patti. (ISN)

• Tata Group drops its plan to acquire a stake in Vivo India due to Apple's objection. (BS)

• JSW Cement seeks to acquire the promoter stake in Orient Cement. (BS)

• Unaprime acquires Tata Healthcare's 43.5% stake in Lokmanya Hospitals. (ET)

Debt

• Bank of Baroda recovers ₹301 crore ($35.8Mn) from Go First under ECLGS. (ET)

Funds

• PhysicsWallah launches a Rs 250 crore ($30Mn) scholarship fund for JEE/NEET aspirants. (EN)

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