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Share markets in India are presently trading on a flat note. Sectoral indices are trading mixed with stocks in the metal sector and automobiles sector witnessing buying interest while banking stocks and consumer durable stocks are witnessing selling pressure.

The BSE Sensex is trading up by 38 points while the NSE Nifty is trading up by 11 points. The BSE Mid Cap index is trading up by 1% while the BSE Small Cap index is trading up by 0.6%.

The rupee is trading at Rs 69.21 against the US$.

In the news from the auto ancillary space, WABCO India share price is in focus today as its parent company, WABCO Holdings Inc, has entered into a definitive merger agreement with ZF Friedrichshafen AG, a privately held global leader in driveline and chassis technologies.

As per an article in The Economic Times, ZF will acquire all outstanding shares of WABCO for US$ 136.50 per share in an all-cash transaction for an equity value of over US$ 7 billion.

Here's an excerpt from the article:

• The acquisition price represents a 13% premium to the closing stock price of US$ 120.8 on February 26, 2019, the date prior to media reports and WABCO's confirmation that ZF had approached the company.
  
  The transaction also represents a premium of approximately 18% and 23% to the undisturbed Volume Weighted Average Price (VWAP) for the 30 and 90 days ended February 26, 2019, respectively.
  
  The transaction will bring together two global technology leaders serving OEMs and fleets in the automotive and commercial vehicle industry, combining WABCO's capabilities in commercial vehicle safety and efficiency.

Shares of the company jumped around 11% in early trade today on back of the above news.

Speaking of foreign players investing in India, many private equity funds have joined hands to increase their controlling stakes in Indian investments lately.

Here are some examples...

• A joint venture between Brookfield Asset Management Inc. and State Bank of India for distressed assets.
• The acquisition of a stake in Mankind Pharma by ChrysCapital, GIC and the Canada Pension Plan Investment Board.
• Resurgent Power Ventures Pvt. Ltd, a platform created by Tata Power and ICICI Venture, raising capital from Kuwait Investment Authority and State General Reserve Fund of Oman.

India Focused Global Funds Raising Top Dollar

Here's what Tanushree Banerjee, co-head of Research at Equitymaster, wrote about this in one of the recent editions of The 5 Minute WrapUp...

• Enticed by their long-term prospects, these funds are losing no time to enhance stake in their Indian investments.
  
  And this is possibly just the start.
  
  According to OECD, the 20 largest pension funds together hold about 43.2% of total global pension assets. Even if India receives a 5% allocation, it will mean a boom in the stock market.
  
  In last three years, these funds have consolidated because of stronger growth among the bigger pension players.

She believes these players are likely to focus on countries offering strong returns apart from relative safety, like India.

Moving on to the news from the banking sector, Federal Bank share price is witnessing buying interest today. The lender has entered into a partnership with Ripple Inc., a blockchain supported global remittance company, for cross border remittance through its network.

Powered by blockchain-enabled solution, the Ripple platform ensures cross-border transactions much safer and secured. This partnership will help Federal Bank to explore new corridors where Ripple is aggressively pursuing new partnerships.

So far, Federal Bank is the fifth Indian bank to join the Ripple network, following Yes Bank, Axis Bank, IndusInd Bank, and Kotak Mahindra Bank.

Federal Bank share price is presently trading up by 1.6%.

In other news, Indian Overseas Bank's shareholders have approved the special resolution to issue 269,54,67,422 equity shares on preferential basis to Government of India for the capital infusion of Rs 38.1 billion received from the Government in February 2019.

Reportedly, this capital infusion will help the bank shore up its capital adequacy requirements and enable the bank to build a robust loan book.

Speaking of interesting development in the banking sector, Tanushree Banerjee believes that financial inclusion will be an important element in driving the growth for India.

Here's what she wrote in one of the editions of The 5 Minute WrapUp...

• Financial inclusion is an important element of economic growth because it enables individuals and businesses to access financial products that meet their needs.
  
  As mentioned earlier, the reform that the Prime Minister Modi introduced - the opening of Jandhan accounts - was a big positive for India.
  
  The opening of these accounts helped increase the number of savings and current accounts in the country.
  
  And this trend is not done. It will play out in the coming years too.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

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