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ICICIdirect Research Posted on 09:29am 14-Sep-2021

Infosys and Microsoft have entered into a multi-year strategic engagement with Ausgrid...

* Market Outlook

Indian markets are likely to open in the green on the back of mixed global cues after the US markets snapped a five-day drop ahead of inflation data that could impact expectations on the likely timeline for a reduction in Federal Reserve stimulus.

 

*  Markets Yesterday

• Domestic markets ended marginally lower tracking losses in select BFSI and index heavyweight stocks, which were partially offset by gains in metals, IT and pharma stocks ahead of inflation data released during the day.

• US markets ended mixed amid value buying ahead of macroeconomic data released during the week.

 

* Key Developments

• CPI Inflation for August 2021 declined further to 5.3% compared to 5.6% in July and 6.3% in June 2021. Lower food inflation at 3.1% in August against 4.0% in July drove the headline print lower. The favourable base effect of vegetables within food is the major reason for the low food inflation. Lower inflation in pulses and fruits also helped lower food inflation. Core inflation declined marginally by 10 bps to 5.9%. Overall three items viz. oil & fats, transport & communication and fuel & light continue to be major contributor. The lower CPI print will comfort RBI in continuing the easy monetary policy stance.

• IRDAI has allowed insurers to continue selling and renewing short-term Covid specific health insurance policies till March 2022. Amid rising number of Coronavirus cases in the country, IRDA had last year asked all insurance companies to come out with 'Corona Kavach' policies (standard indemnity-based health policy) and Corona Rakshak policies (standard benefit-based health policy.

• TCS informed the stock exchange that NXT Seminconductor, the semiconductor manufacturer, selected TCS as its strategic partner to drive its integrated IT services strategy across applications, IT infrastructure and workplace services spanning enterprise, manufacturing and engineering functions. Additionally, TCS will accelerate NXP’s cloud adoption to further enhance business agility and build a future-ready digital foundation that supports its growth and transformation agenda.

• Infosys and Microsoft have entered into a multi-year strategic engagement with Ausgrid, the largest distributor of electricity on Australia’s east coast to accelerate its cloud transformation journey. Adoption of cloud is a key enabler for Ausgrid to increase the agility, security and resilience of business operations while the cloud program is designed to reduce Ausgrid’s cost of ownership and improve the performance of its IT systems and applications.

• According to The Economic Times, PSU refiners have told the Petroleum Ministry that accelerated adoption of green hydrogen would cut utilisation of their existing grey hydrogen-producing facilities. The companies want green hydrogen purchase obligation of total hydrogen requirement up to 10% by 2030 against the government proposal of 25%.

• According to The Economic Times, Bharti Airtel is considering co-branded deals with handset makers and bundled data and voice offers to bring down the effective price of a smartphone, as the company seeks to ring fence its 2G subscribers ahead of the JioPhone Next launch. It also said Airtel has floated a request for proposal for handsets and manufacturers including Lava, Karbonn and HMD Global have shown interest and are ready with possible devices and specifications.

• According to The Economic Times HCL Tech has signed a multi-year contract with biotechnology firm Genmab to support its IT infrastructure operations globally without disclosing value. HCL Tech will support Genmab’s IT operations through a new future-proof digital foundation that spans hybrid cloud, cybersecurity, among other services.

• MTAR Technologies has received an export order of about | 220 crore from Bloom Energy, US. The order is for export of YUMA Hot Boxes and associated components. The order will be delivered in four quarters of CY22. It is largest single order received by company.

• Indigo Airlines plans to begin 38 domestic flights in September to improve connectivity between metros and Tier 2 or tier 3 cities.

• Aster DM has extended its facility Aster MIMS, Kottakal with the launch of first exclusive Aster MIMS Women and Children Block in Kerala. Aster MIMS Women and Children Block has 75 bed capacity with investment of | 19.5 crore through internal accruals of Aster MIMS.

• KNR Constructions has received letter of award for EPC road project in Hyderabad worth | 312.8 crore on EPC basis. The said project is to be completed within a period of 15 months from the date of signing of Agreement.

• Amber Enterprise has invested $100,000 in Amber Enterprise US Inc. and has been allotted 100,000 common stock at a par value of $1 per share. Post the investment Amber Enterprise US has become a wholly owned subsidiary of the company.

• Ashoka Buildcon has received letter of award from National Highways & Infrastructure Development Corp in respect of road project in Assam on EPC mode worth | 282.1 crore.

• Jet Airways to resume its domestic operations by March 2022 with Delhi-Mumbai to be inaugural flight while short haul international flight would begin by December 2022.

• Parle is set to launch breakfast cereals under name 'Hide & Seek Fills'. Product to compete with offerings from Kellogs, Tata's Soulfull, Baggry's etc. The company plans to position the product as a taste & snacking option for kids instead of a nutrition platform despite it containing healthy ingredients. Considering the surge in demand in ready-to-eat products, company sees it as perfect opportunity to expand its product portfolio.

• According to ET Auto, MG Motor is set to unveil its compact SUV Astor tomorrow, September 15. It is slated to compete against the likes of Hyundai Creta and Kia Seltos, among others.

 

* Today’s Highlights

Events: India WPI Manufacturing Inflation (YoY), India WPI Inflation (YoY), India WPI Fuel (YoY), India WPI Food (YoY), US Core CPI (MoM).