look news india
Ahmedabad: Market bulls and other top institutional investors are selling stakes to maximize profits. For some time now, there have been reports of block deals in the shares of many companies and there is news that a record block deal is going to happen in this quarter.
Taking advantage of the current market boom, many big shareholders are selling their stakes and have sold shares worth $7.1 billion so far this year. According to Bloomberg data, this is the biggest selloff since the March quarter of 2010.
In this list, BET's recent block deal in FMCG giant ITC proved to be the biggest block deal in Asia this year. Talking about China and Hong Kong, due to the poor condition of the stock market there, no block deal larger than $500 million has taken place in China and Hong Kong since July.
Foreign investors are coming out of the economic recession in China and investing money in the Indian market, due to which the Indian stock market has reached new heights. However, selling pressure is currently being seen in the market.
But now Lok Sabha elections will start in the country from next month, hence once again foreign investment is likely to come rapidly. After the elections are over, block trade is likely to pick up once again. Compared to March 2023, volume activity this year is expected to be 50 percent higher.
If we look at the latest big deal, this week Tata Sons raised $1.1 billion by selling shares in Tata Consultancy Subsis. According to Bloomberg data, this was the biggest block deal in TCS since 2018. Apart from this, British American Tobacco (BAT) has also raised about Rs 17,500 crore by selling 3.5 percent stake in ITC.
This is the biggest block deal so far this year for the whole of Asia. Rakesh Gangwal, co-founder of the country's largest airline IndiGo, raised $820 million by selling shares, while American home appliances company Whirlpool Corporation raised $469 million by selling stake in its Indian unit in February.