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Latest Updates

ICICIdirect Research Posted on 11:57am 23-Sep-2022

Reliance Industries would invest $12 million for a 20% stake in solar technology developer Caelux Corp to produce more powerful and lower cost solar modules.

* Market Outlook

Indian markets are likely to open gap-down today tracking weakness across global markets, a day after the Fed announced a widely-expected rate hike and reiterated its commitment to keep increasing rates into 2023 to fight redhot inflation.

 

*  Markets Yesterday

  • Domestic markets ended lower on the back of losses in pharma and BFSI stocks, which were partially offset by gains in FMCG stocks amid a 75 bps repo rate increase by Fed
  • US markets ended lower tracking losses in technology stocks as interest rate concerns continued to weigh.

 

* Key Developments

 

  • Medcare Hospital, a step-down subsidiary of Aster DM, has acquired a 60% stake in Skin III Ltd, Dubai for AED 1.6 crore (~| 36.7 crore). Skin III is a private company incorporated in Dubai and is a leader in offering IV Drips (vitamin, detox) and other aesthetics procedures (hydrafacial, laser hair removal, etc). Skin III has tie-ups with leading five star hotels for IV (Jumeirah Group, Anantara, etc) and homecare business and is a relatively high margin non-insurance business with significant growth potential. Skin III posted revenues of AED 50 lakh in CY20, AED 1.7 crore in CY21 and AED 1.1 crore in YTD June, 2022
  • SingTel divested 1.59% stake in Bharti Airtel for | 7,261 crore to Bharti Telecom (BTL). This is the residual part of announcement that SingTel would transfer ~3.33% stake to BTL for an aggregate amount of ~2.25 billion Singapore dollar.
  • According to The Economic Times, Whirlpool of India expects the domestic washing machines market to grow in double digits in the next two to three years led by a rise in demand for mid and premium products. Lower penetration level, reducing replacement cycle of the product are likely to be key demand drivers of washing machines in India. Whirlpool has entered the front load segment of washing machines and is aiming for a higher volume growth rate than the industry
  • The Defence Ministry has signed a | 1,700 crore contract with BrahMos Aerospace for 35 BrahMos supersonic surface-to-surface cruise missiles. These missiles, which will have dual role capability for land as well as antiship attacks, will be used for P-15B class of stealth guided missile destroyers of the Indian Navy
  • Glenmark Pharma’s Baddi plant has been classified as official action indicated (OAI) by USFDA following the inspection in June 2022. USFDA had issued a Form-483 with six observations to the Baddi facility. The company does not believe that this will have any material impact on the US business at this stage. Additionally, Glenmark Pharma’s Aurangabad plant has received the Establishment Inspection Report (EIR) from the USFDA indicating closure of the inspection
  • Cipla has received the Establishment Inspection Report (EIR) for product specific Pre Approval Inspection (PAI) at the Indore plant from June 27,2022 to July 1,2022 by USFDA
  • According to The Economic Times, Vodafone idea is facing trouble finalising deals for 5G equipment supplies and tower tenancies with vendors asking it to clear their 4G-related dues and fork out advance payments for fresh contracts. Vodafone Idea owes around | 3,000 crore to equipment supplier Nokia and up to | 1,000 crore to Ericsson in 4G-network-related dues. It also owes around | 7,000 crore to Indus Towers and | 2,000 crore to American Tower Company. Thus, fund raising is key to launch 5G services and repay vendor dues
  • Microfinance loan disbursement by NBFC-MFIs slowed down sequentially to | 22,745 crore in Q1FY23 from | 30,731 crore in Q4FY22 as lenders adapted to new regulatory norms. The loan book expanded by 30.1% YoY from | 75,677 crore to | 98,508 crore. Despite the slowdown in disbursements in Q1FY23, MFIs continued to expand their network from 16890 to 17600 QoQ and added employees on the roll during the quarter
  • Axis Bank has started disbursing loans through the Account Aggregator (AA) framework, which enables easy and instant access to financial information of customers in a secure manner. Axis Bank's loan disbursals have increased more than 30% MoM since going live on the data sharing platform
  • Central Bank of India has set a target of reducing bad loans to the tune of | 6,000 crore in the next three months to bring the GNPA ratio below 10%. Its GNPA was at | 29000 crore, which is 14.9% of advances. The reduction will be achieved through a combination of transferring bad loans to NARCL, selling bad loans to other ARCs and technical write offs
  • As per Mint, Indian refiners are set to skip purchases of Russia ESPO crude oil this month due to higher freight rates, turning to Africa and the Middle East instead. After factoring in the freight, the landed cost of ESPO is turning out to be $5-7 a barrel costlier in comparison to similar grades from other countries such as UAE's Murban
  • As per The Economic Times, The Indradhanush Gas Grid (IGGL), a joint venture of IOCL, GAIL, ONGC, OIL and NRL, has achieved a physical progress of 42.94% and a capital expenditure of | 1556.46 crore for FY22. The North East Gas Grid is implemented as per the Hydrocarbon Vision 2030 of the North East. It is scheduled to be completed by March 2024
  • Small towns suffering from power tripping during the peak hours will soon get uninterrupted supply due to the latest technology of battery energy storage system. The Uttar Pradesh Power Corporation is preparing to install this system in select parts of the state, after approval by the Uttar Pradesh Electricity Regulatory Commission (UPERC). The power corporation had filed a petition in the regulatory commission for installation of a battery energy storage system to overcome power shortage during peak hours in small towns. In the first phase, five projects of 10-10 MW each were proposed. The project is expected to cost around | 6 crore per MW i.e. | 60 crore for a 10 MW system
  • Brookfield is looking to multiply its current 4 GW renewable portfolio three to four times in India within the next decade. Brookfield currently has about $1 billion of renewable assets under management in India that are fully operational. Earlier this year, Brookfield Asset Management announced that it raised a record $15 billion for its inaugural Global Transition Fund. Brookfield is the single largest sponsor of the fund having deployed $2 billion itself
  • Reliance Industries said on Friday it would invest $12 million for a 20% stake in solar technology developer Caelux Corp to produce more powerful and lower cost solar modules.

 

*  Today's Highlight

Events: US Manufacturing PMI, Service PMI, EU Manufacturing PMI, Service PMI