Asian Paints shares see Rs 1900 crore block deal, stock up 1%
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Shares of Asian Paints climbed nearly 1% on Monday to Rs 2235.8 on the BSE after a large block deal saw 85 lakh shares worth Rs 1,876 crore change hands, according to a report by ET NOW.
SBI Mutual Fund, India’s largest asset manager, acquired the 3.6% stake for Rs 7704 crore ($900 million), making it one of India’s largest bilateral block deals. The shares were picked up at Rs 2201 apiece.
Technicals still weak
Asian Paints’ stock has been under pressure. The shares have fallen 24.2% over the last year and are down 8% over the past six months. In the past month, the stock has declined 5%, including a 1.4% drop over the previous week.
On the technical front, the stock is trading below all eight of its key simple moving averages — from the 5-day to the 200-day SMA — reflecting broad bearish sentiment across short-term, medium-term, and long-term timeframes.
The Relative Strength Index (RSI) stands at 34.0, suggesting the stock is nearing oversold territory, while the Moving Average Convergence Divergence (MACD) is at -34.4 and remains below its signal and center line, a strong bearish indicator.
Also read | HDFC Bank, Airtel lift Sensex over 200 pts, Nifty above 24,750
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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The deal comes on the heels of last week’s significant transaction where Reliance Industries Ltd (RIL) offloaded a 3.6% equity stake in Asian Paints to SBI Mutual Fund through a block deal executed on Thursday.
SBI Mutual Fund, India’s largest asset manager, acquired the 3.6% stake for Rs 7704 crore ($900 million), making it one of India’s largest bilateral block deals. The shares were picked up at Rs 2201 apiece.
The deal allowed Reliance to monetize part of its long-term investment in Asian Paints, which it held via Siddhant Commercials Ltd. The transaction delivered a windfall to Reliance, translating into a near 23-fold return on a 17-year-old investment.
Technicals still weak
Asian Paints’ stock has been under pressure. The shares have fallen 24.2% over the last year and are down 8% over the past six months. In the past month, the stock has declined 5%, including a 1.4% drop over the previous week.
On the technical front, the stock is trading below all eight of its key simple moving averages — from the 5-day to the 200-day SMA — reflecting broad bearish sentiment across short-term, medium-term, and long-term timeframes.
The Relative Strength Index (RSI) stands at 34.0, suggesting the stock is nearing oversold territory, while the Moving Average Convergence Divergence (MACD) is at -34.4 and remains below its signal and center line, a strong bearish indicator.
Also read | HDFC Bank, Airtel lift Sensex over 200 pts, Nifty above 24,750
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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