Government has eased rules for setting up of EV charging stations...
* Market Outlook
Indian markets are likely to open on a weak note on the back of mixed global cues. The momentum, however, would be guided by ongoing quarterly earnings season with Reliance industries, HUL, Bajaj Finance among those scheduled to announce their results this week.
* Markets Yesterday
• Domestic markets ended marginally lower tracking losses in FMCG stocks, which were partially offset by gains in BFSI stocks amid mixed global cues.
• US markets ended mixed amid release of macroeconomic data
* Key Developments
• For Q3FY22E, we expect UltraTech Cement to report 4% YoY drop in sales volume to 21.9 MT. However, with realisation growth of +10%, we expect revenue to grow 5.6% YoY. Cost per tonne is expected to increase by | 194/t (4.4% QoQ). As a result, we expect EBITDA/tonne to decline 12.5% YoY, 11.3% on a QoQ basis.
• As per government notification, it has received 10 applications aggregating ~130 GW of battery storage capacity under its Advance Chemistry Cell (ACC) PLI Scheme, which was targeting ~50 GW battery storage capacity domestically. Applicants included M&M, Exide Industries and Amara Raja Batteries in our coverage universe while other prominent names were RIL, Hyundai, Ola Electric and L&T among others.
• As communicated earlier (December 2021), Maruti Suzuki India (MSIL) has undertaken input price led blended price hike of ~1.7% across its product profile starting January 15, 2022.
• As per media sources, the government has eased rules for setting up of EV charging stations in order to further promoter electrification domestically.
• Aster DM's subsidiary, Malabar Institute of Medical Sciences has signed a lease agreement for a greenfield hospital project in Kasaragod district of Kerala. The 200-bed tertiary care facility will cost initial investment of ~| 140 crore and is expected to be operationalised in two and a half years.
• Glenmark Pharmaceuticals has received NDA approval by USFDA for Ryaltris nasal spray for the treatment of symptoms of seasonal allergic rhinitis in adults and paediatric patients 12 Years of age and older. Ryaltris will be marketed and distributed in US through Glenmark’s partner Hikma Specialty.
• Aurobindo Pharma has received warning letter for Unit I, API manufacturing facility in Hyderabad. The USFDA status for unit changed from OAI to WL post the USFDA inspection in August 2021.The company believes that this will not impact the existing business from this facility.
• The government has allowed government entities to offer land to private agencies setting up public charging stations through bidding starting with a floor price of | 1 per unit. The land available with government agencies can be offered to PSUs at a concessional rate of | 1 per unit for setting up public charging stations. The tariff of public charging stations has also been capped to not exceed average cost of supply till March 2025. As per previous guidelines, the tariff for public charging stations was capped at 15% of the average cost of supply.
• As per latest fortnightly data by RBI, credit growth in banking system jumped to 9.2% YoY at |116.8 lakh crore, for the fortnight ended December 31, 2021, as compared to a 7.3% growth achieved in previous fortnight. Deposit growth also jumped to 10.3% YoY to | 162.4 lakh crore, up from 9.6% growth in previous fortnight.
• Dalmia Cement (Bharat) on Saturday said it has commenced commercial operations at its manufacturing plant of Murli Industries in Chandrapur, Maharashtra, adding 2.9 million tonne to its overall installed capacity.
• As per Business Standard, RBI has proposed new norms for the classification and valuation of the investment portfolio of banks, with a view to align them with the global prudential framework and accounting standards. According to the proposed norms, the investment portfolio of banks will be divided into three categories heldto-maturity (HTM), available for sale (AFS), and fair value through profit and loss account (FVTPL). Within FVTPL, held-for-trading (HFT) shall be a sub-category aligned with the specifications of 'Trading Book' as per the Basel-III framework. The new bank portfolio classification norms will come into effect from April 1, 2023. The Reserve Bank of India (RBI) has also proposed allowing banks to keep corporate bonds, or even equity shares of subsidiaries, associates and joint ventures in the held-to-maturity category (HTM) of their investment books.
• State Bank of India, increased interest rates on fixed deposit (FD) by up to 10 basis points or 0.10%, as reported in Business Standard. Interest rate on fixed deposits for tenure 1 year to less than two years has been increased to 5.1% from 5.0%. The new rate is effective from January 15, 2022.
• Fitch Ratings said the rising COVID cases may delay recovery in MSME and microfinance lending, and add to asset quality risks of non-banking financial institutions. MSME business activities picked up in the second half of 2021, but remain below pre-pandemic levels, but the surge of Omicron cases in January 2022 may disrupt the recovery temporarily.
• As per media reports, Reliance Retail is set to invest over $130 million in robotics start-up Addverb Technologies. Addverb leverages artificial intelligence, machine learning, automated storage and • retrieval system (ASRS), shuttles, IoT along with their in-house software solutions to improve performance and accuracy of warehouse and factory operations.
• NBCC (India) has secured the total business of | 592 crore in December, 2021. While its overall order book remains robust at | 60,000+ crore, pick-up in execution and normalization in margin remains key.
• HG Infra Engineering has received the provisional completion certificate for the project " Jodhpur- Marwar Junction in the state of Rajasthan on EPC Mode". Bid project cost of the project was | 304.1 crore. The company has executed the project ~195 days earlier the revised schedule completion date.
• The Cellular Operators Association of India (COAI) has urged the government to bring down licence fees from 3% to 1% and reduce SUC rate by 3% on spectrum acquired in past auctions. Furthermore, they have sought to refund unutilised input tax credit | 35,000 crore of the industry, which cannot be utilised in the near future. Also, they want government to suspend universal service obligation fund (USOF) as existing USO Fund corpus, which is more than | 59,000 crore, is sufficient to meet USO objectives for the next few years. Earlier, telcos had also asked at least a 5-6 years of moratorium on the payments in the upcoming 5G auction. Other demands include cut in spectrum prices by 90%, zero upfront payment and allowing operators to pay the bid amount over 25 years.
• As per media reports, Reliance New Energy Solar, RIL's subsidiary has applied for PLI scheme for advanced chemistry cells. The scheme is aimed at setting up 50 GWh cell manufacturing capacity.
• E S Ranganathan, Gail India's director (marketing) has been arrested by CBI in connection with a bribery case.
* Today's Highlight
Results: Sonata Soft, UltraTech Cement, Tata Steel Long Products.
Events: EU CPI.
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