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ICICIdirect Research Posted on 09:38am 22-Nov-2021

ONGC and Saudi Aramco have signed an MoU for long term supply contracts...

* Market Outlook

Indian markets are likely to open on a flat to positive note tracking weak global cues as concerns about European Covid-19 curbs and on risk of the US Federal Reserve speeding up stimulus withdrawal.


*  Markets Yesterday

• Domestic markets were closed on Friday due to Guru Nanak Jayanti. Domestic markets ended lower on Thursday tracking losses in IT, auto, BFSI amid weak global cues.

• US markets ended mixed on the back of gains in technology stocks amid concerns over the spread of Covid-19 across Europe.


* Key Developments

• Cadila has received final USFDA approval to market Nelarabine injection 250 mg/50 ml (USRLD: Arranon) with competitive generic therapy designation and 180 days of exclusivity. Estimated market size for Nelarabine Injection is ~ US$34.5 million (September 2021, IQVIA). This is a chemotherapy drug indicated to treat leukaemia and lymphoma and is set to be manufactured at the group’s injection facility, Alidac plant in Ahmedabad.

• According to The Economic Times, with the one-year moratorium on an emergency credit scheme ending soon, banks and non-banks are concerned that the end to the standstill could give rise to a fresh round of bad loans. Restructuring is expected to be the highest in MSME segment, at 4-5% of the loan book.

• Sun Pharma has issued a class II recall for ~1.10 lakh bottles of Tadalafil tablets in the US due to an incorrect grade of crospovidone used to manufacture the product.

• Natco has launched a novel fixed-dose combination Tipanat (Trifluridine + Tipiracil) for the first-time in India. Tipanat is a novel antineoplastic nucleoside analog indicated for the treatment of advanced colorectal and gastric cancer.

• Biocon's recently launched Insulin Glargine injection will be offered through the Walgreens Prescription Savings Club with up to 80% off the cash price of comparable long-acting insulins purchased at Walgreens.

• Cadila has received USFDA final approval to market Decitabine Injection, 50 mg/vial (USRLD: Dacogen). The drug is indicated to treat myelodysplastic syndromes, certain types of blood or bone marrow cancer and will be manufactured at the group’s injectables manufacturing facility at Zydus Hospira.

• Wipro had an analyst meet on Friday. The company has seen a turnaround in the last four to five quarters as they built up a strong leadership team in the last 12-18 months. The acquisition of Capco has helped them to win large deals, which would have been not possible if they had gone solo. The company is looking to accelerate the growth from here on as it is looking to increase market share in large deals (US$200 mn and US$300 mn category). It is looking to hire 17,000 and 25,000 freshers in FY22 and FY23, respectively. The company is looking to maintain margins as it is investing in building capabilities.

• The Board of Directors of Somany Ceramics have approved the investment up to an amount not exceeding | 115 crore in one or more tranches, in M/s Somany Piastrelle Pvt Ltd (in the business of tile, sanitaryware, faucets and other allied products) as a part of the company’s overall plan to invest | 180-190 crore to increase capacity by 10-12 MSM (announced earlier). Out of the approved investment, the company has now invested | 9.5 crore in M/s Somany Piastrelle Pvt Ltd towards acquisition of equity shares by way of right issue.

• Brigade Group has launched the Zenith Tower of Brigade Residences at World Trade Centre, Che nnai and already received 30% pre-launch booking for the same, indicating strong demand.

• The Sagar Cement board approved the proposal to raise | 250 crore through term loan and | 250 crore through secured NCD at its meeting on November 20, 2021.

• Easy Trip Planners has acquired a 100% stake in the hospitality management company Spree Hospitality for | 18.25 crore in all-cash consideration. Spree manages over 1,220 rooms across key cities in India. It clocked revenues of | 8.39 crore and | 7.5 crore during FY19 & FY20, respectively.

• Kesoram Industries board has approved raising funds up to | 2,500 crore by way of equity, bond, FCCB, ADR, GDR, commercial paper and/or other debt instruments. This fundraising is primarily to retire the company's existing debt and bring down the cost of borrowing.

• HealthCare Global (HCG) has completed the investment of | 33 crore in equity shares of Suchirayu Health Care (Suchirayu) aggregating to 78.6% of the share capital of Suchirayu. Suchirayu owns and operates a multi specialty hospital in Hubli, Karnataka with FY21 revenue of ~ | 55.37 crore.

• At the Global Innovation Summit - 2021, Dilip Shanghvi said Sun Pharma expects innovative products to garner US$1.5 billion in sales in the next three to four years.

• At the Global Innovation Summit - 2021, Satish Reddy, said that Dr Reddy's 13 innovative products targeting immuno-oncology are in various stages of development and the company wants 20% of its revenues to come from innovative products in the next 10 years.

• IDFC First Bank has partnered with Hindustan Petroleum Corporation (HPCL) to facilitate fuel payments at their retail outlets using the bank’s FASTags. In addition, IDFC First Bank’s FASTags can now also be bought, recharged and replaced by passenger vehicle users at select HPCL retail outlets, according to The Economic Times.

• According to The Economic Times, a vulnerability in the server of Punjab National Bank allegedly exposed the personal and financial information of its 18.0 crore customers for about seven months, according to cyber security firm CyberX9. CyberX9 has claimed that the vulnerability provided access to the entire digital banking system of PNB with administrative control.

• According to Livemint, ONGC Videsh, IOC and Oil India are seeking to invest in Vostok project of Rosneft. The companies have completed technical evaluation of some of the license areas of the project.

• ONGC and Saudi Aramco have signed an MoU for long term supply contracts for sale and purchase of crude oil & refined petroleum and petchem products.

• According to The Economic Times, ONGC and Gail are in discussions with lenders of JBF Petrochemicals to explore the possibility of a stake acquisition in the company.

• ONGC has clarified that the media reports regarding ONGC offering its prominent fields through expression of interest (EoI) are incorrect.


*  Today's Highlight

Events: UK Services PMI, UK Manufacturing PMI, UK Composite PMI.