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Latest Updates

ICICIdirect Research Posted on 09:27am 10-Jan-2022

Adani Enterprises has formed a new wholly-owned subsidiary named Adani New Industries (ANIL)...

* Market Outlook

Indian markets are likely to open today on a positive note tracking investor expectations of the economic recovery and festive sales to power healthy corporate earnings in the December quarter even as a broad-based recovery remains elusive.


*  Markets Yesterday

• Domestic markets ended higher on the back of gains in technology and pharma stocks amid positive global cues.

• US markets ended marginally lower tracking release of macroeconomic data.


* Key Developments

• RIL has acquired 73.37% stake in US based hotel, the Mandarin Oriental Hotel with 248 rooms for $98.1 million. It will also take over its debt in excess of $115 million, taking the entire deal value to be close to $270 million.

• As per latest data released by IRDAI, new business premium (NBP) of life insurance companies was largely flat in December 2021 owing to a 20% YoY fall in Life Insurance Corporation’s (LIC) NBP while private insurers saw 29.8% YoY growth. Within the private space, HDFC Life saw strong growth of 55.6% YoY, Max life also reported healthy uptick of 31.9% YoY while SBI Life’s NBP was up 26.7% YoY.

• According to Business Standard, CVR Rajendran, Managing Director & Chief Executive Officer, CSB Bank, has decided to take early retirement on health grounds. He will continue as MD & CEO till March 2022. His current three-year term was supposed to end on December 8, 2022. Mr Rajendran has been holding the position of Managing Director & CEO since December 9, 2016.

• TCS has informed the stock exchanges that it would consider buyback of shares at its board meeting on January 12, 2022.

• SIS Ltd has informed the stock exchanges that SIS Australia subsidiary has acquired remaining 49% stake in Platform 4 Group (P4G). The company has acquired 51% stake earlier in P4G in 2019 for US$910,000 (7.5 crore).

• Hero MotoCorp (HMCL) has appointed Dr Arun Jaura as Chief technology officer. Prior to joining HMCL, Dr Jaura has led technology teams at Michelin India, DRDO as well as M&M in the past. He is a postgraduate from IIT (Madras) and is one of the founding members of Government’s National Mission for Electric Mobility since 2013. In a separate development, Neerja Sharma has resigned from the post of Company Sectary and Compliance officer at HMCL.

• Motherson Sumi has announced January 17, 2022 as the record date for determining shareholders for allocation of additional shares of domestic wiring harness division (DWH; Motherson Sumi Wiring India Limited) in the entitlement ratio of 1:1. Motherson Sumi is then expected to trade ex-DWH starting January 14, 2022 (Friday) with DWH scheduled to listed separately by March 2022.

• EasyTrip Planners board is scheduled to meet on January 12 for considering the proposal for issue of bonus shares.

• Indigo Airlines has cut its capacity by 20% due to decline in the demand on account of sharp surge in omicron cases.

• Realtors apex body Credai has sought various tax sops to boost housing demand, including increase in the deduction limit for interest on home loans to | 5 lakh from the current | 2 lakh. Credai has also sought infrastructure status for the sector and change in definition of affordable housing (limit of | 45 lakh on the value of property to qualify as affordable housing to be raised to | 1.50 crore for metro cities).

• BharatPe's co-founder and MD Ashneer Grover and wife Madhuri Grover sent a legal notice to Kotak Mahindra Bank's senior management, accusing the bank of failing to secure financing and allocation of shares in an IPO launched by beauty firm Nykaa. The notice has sought damages for the gains Grover would have made after subscribing to shares worth | 500 crore in the company besides | 1 lakh towards the cost of the legal notice. While Kotak Bank has said in its exchange filing that there is no breach or violation by Kotak group.

• According to The Economic Times, Edelweiss Asset Reconstruction Company won a distressed education loan portfolio at a 60% discount from Indian Overseas Bank. Edelweiss ARC’s | 237.5 crore offer for the education loan portfolio of | 594 crore triggered a Swiss auction and since no other bidder made a counteroffer, IOB declared Edelweiss ARC as a successful bidder. The portfolio had 21,125 education loans that were auctioned under the 20:80 structure. Here 20% of the consideration amount would be paid upfront and for the remaining amount, the ARC would issue security receipts.

• According to The Economic Times, industry body Assocham has recommended setting up a refinance window for the NBFC sector and making banks' lending to non-banking financial companies under priority sector permanent for the upcoming Union Budget. The funding support to the non-banking finance companies (NBFCs) will ensure liquidity in the sector, as they play a key role in financial inclusion and providing affordable financial services to the underbanked, Assocham said in its recommendations to the government through a pre-budget budget memorandum.

• As per Business Standard, Finance Minister Nirmala Sitharaman chaired a review meeting with heads of public sector banks (PSBs) to assess their readiness to tackle possible disruptions due to the third wave of the Covid19 pandemic. Ms Sitharaman also held discussions with the Reserve Bank of India (RBI) Governor Shaktikanta Das, Department of Financial Services Secretary Debasish Panda on post-pandemic economic recovery and preparedness of PSBs. Ms Sitharaman told bankers that the business outlook is progressively improving despite headwinds from global developments and the spread of the Omicron variant. However, she told bankers that contact-intensive sectors may require more support to fight the pandemic.

• Federal Bank informed the exchanges that its board will consider and raise up to |700 crore through issuance of bonds on a private placement basis.

• According to Business Standard, HDFC Bank has started online customs duty payment facility for customers. With this, the bank will offer customers the convenience of directly paying customs duty by selecting HDFC Bank. This follows authorisation by the Principal Chief Controller of Accounts of CBIC to collect IGST on import and export of goods and services. HDFC Bank said it has facilitated both retail and wholesale payments of customs duty.

• Recently, the Steel Minister has laid the foundation stone for the 5 Million tonne per annum (MTPA) project at JSW Steel Vijayanagar Works integrated steel facility in Ballari, Karnataka. This brown-field expansion project is being undertaken through JSW Vijayanagar Metallics, a wholly owned subsidiary of JSW Steel. The company has earmarked a capex investment of | 15,000 crore for this expansion and is expected to be completed by FY24.

• Petroleum and Natural Gas Regulatory Board (PNGRB) has invited bids for five new geographical areas for the second tranche of the 11th bidding round for city gas distribution licenses.

• Adani Enterprises has formed a new wholly-owned subsidiary named Adani New Industries (ANIL), which will undertake green hydrogen projects, manufacturing of wind turbines and solar modules batteries among other components


*  Today's Highlight

Events: UK trade balance, UK manufacturing production, UK industrial production.