Nifty opens F&O expiry day lower, Sensex falls 100 pts; Fortis, Kwality dip

Fortis Healthcare tanks 10 percent after Manipal deal. Kwality fell 20 percent

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Fortis Healthcare (FHL) said its board has approved demerger of its hospitals business, which will be acquired by Manipal Hospitals and TPG Capital, along with the sale of 20 percent stake in diagnostics chain SRL Ltd., in a Rs 3,900-crore deal.

In a late night announcement after a marathon meeting during the day, the healthcare chain said its board has given nod for the demerger of its hospital business into Manipal Hospital Enterprises Pvt. Ltd.

“The Board has also approved sale of its 20 per cent stake in SRL Ltd. to Manipal Hospitals. The resultant entity Manipal Hospitals will be a publicly traded company listed on NSE and BSE. The remaining FHL will be an investment holding company with 36.6 percent stake in SRL,” the company said in a statement.

The company further said, “As part of the proposed transaction, Dr Ranjan Pai and TPG will invest Rs 3,900 crore into Manipal Hospitals. The funds will be utilised by Manipal Hospitals to finance the acquisition of 50.9 percent stake in SRL (20.0 percent from FHL and 30.9 percent from other investors for which discussions are currently underway).”

Benchmark indices opened lower on the day of expiry of March derivative contracts, tracking a negative lead from global stocks.

The 30-share BSE Sensex was down 124.15 points at 33,050.24 and the 50-share NSE Nifty fell 56.10 points to 10,128.10.

Tata Steel, Vedanta, SBI and Yes Bank were lowered in early trade.

Nifty Midcap was down 146 points.

Kwality plunged 20 percent, hitting fresh 52-week low. Fortis Healthcare, Persistent Systems, Edelweiss Financial, Delta Corp, Balrampur Chini, Indoco Remedies, Bandhan Bank, Cummins and IDBI Bank fell up to 9 percent.

Tejas Networks, Bodal Chemicals and Biocon gained.

 The Indian rupee opened higher at Rs 64.88 per dollar on Wednesday versus 64.98 yesterday.

Pramit Brahmbhatt of Veracity said, “The rupee is expected to remain in the range of 64.50-65 with a positive bias. Support from the domestic equity market and pressure on US dollar globally may push the USD-INR towards 64.50.”

The market was lower in pre-opening settlement. The Sensex was down 76.30 points at 33,098.09 and the Nifty fell 40.60 points to 10,143.60.

State-owned Hindustan Aeronautics will list its equity shares on exchanges today. The final issue price is fixed at Rs 1,240 per share.

The Rs 4,229-crore initial public offer of state-owned Hindustan Aeronautics was subscribed 99 percent during March 16-20, 2018, supported by QIB.

TPG-backed Manipal Hospitals buys Fortis Healthcare, to invest Rs 3,900 crore. Fortis Healthcare Board approved the demerger of its hospitals business into Manipal Hospital Enterprises. The Board has also approved sale of its 20 percent stake in SRL to Manipal Hospitals.

Wipro launches tech center in Texas, to raise headcount to 2,000

Govt must reduce stake in public sector banks to check on frauds

L&T Construction bags Rs 4,353 crore orders in the T&D business

Lupin: It has received US FDA nod for generic of Clobex Spray.

State Bank of India: The bank is mulling the possibility of merging SBI Card JV entities with itself.

Dena Bank: Gets shareholders’ nod for the issue of shares worth Rs 3,045 crore to the government.

9:03 am Technical Recommendations: Here’s what Guiness Securities has to recommend:

Bajaj Finance Ltd: Buy | Close: 1772.45 | Target: Rs 1960 | Stop loss: Rs 1650 | Return: 10.58%

UPL Ltd: Buy | Close: 736.80 | Target: Rs 800 | Stop loss: Rs 699 | Return: 8.55%

Balkrishna Industries Ltd: Buy | Close: 1095.15 | Target: Rs 1200 | Stop loss: Rs 1050 | Return: 9.59%

9:00 am Market Check: The market started off last day of the truncated week on a flat note, with the Sensex rising 57.14 points to 33,231.53 and the Nifty falling 0.50 points to 10,183.70 in pre-opening trade.

It is expected to be weak day as global markets are under pressure and even SGX Nifty indicated the weak opening, falling 64 points.

Fortis Healthcare tanks 10 percent after Manipal deal. Kwality fell 20 percent.

Wall Street closed sharply lower Tuesday, with each of the major US indexes suffering their fourth decline in five sessions, fueled by a selloff in the tech sector. Tech stocks, among the best performing sectors of the bull market, have been under pressure recently as concerns about government regulation stemming from their strong growth and privacy questions surrounding Facebook, Reuters reported.

The Dow Jones Industrial Average fell 344.89 points, or 1.43 percent, to 23,857.71, the S&P 500 lost 45.93 points, or 1.73 percent, to 2,612.62 and the Nasdaq Composite dropped 211.74 points, or 2.93 percent, to 7,008.81.

Asian stocks posted declines after US stocks fell sharply on the back of declines in technology names. That cut short a rally seen in Europe and Asia’s Tuesday session linked to an apparent easing in trade-related tensions, CNBC reported.

The Nikkei 225 fell 2.15 percent in Tokyo, with the stock average reversing most of its gains made in the overnight session. The broader Topix was down 2.04 percent.

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