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ICICIdirect Research Posted on 09:29am 13-Sep-2021

Sebi has introduced an optional T+1 settlement cycle for the markets.

* Market Outlook

Indian markets are likely to open gap up tracking mixed global cues in spite of the likely impact of surging Delta variant of the Coronavirus on the global economic recovery.

 

*  Markets Yesterday

• Domestic markets ended flattish on the back of losses in IT, metals and select BFSI stocks, which were partially offset by gains in FMCG and select index heavyweight stocks.

• US markets ended mixed tracking gains in technology stocks amid concerns over the spread of Covid-19 cases affecting the pace of the economic recovery.

 

* Key Developments

• The life insurance industry reported NBP to the tune of | 27,820.74 crore in August, up 2.88% YoY, despite a 3.8% YoY contraction reported by Life Insurance Corporation (LIC) in NBP, as private insurers posted 21% YoY growth. Private insurers earned | 8,859.97 crore in NBP in August 2021 compared to | 7,325.58 crore in August 2020. On the other hand, LIC earned NBP of | 18,960.77 crore in August 2021 compared to | 19,714.21 crore in the same period last year. Among top private insurers, apart from HDFC Life, which saw 6% YoY decline in NBP, SBI Life and Ma x Life saw their NBP rise by 23.9%, and 16.5%,respectively.

• According to The Economic Times, the Union Cabinet will discuss a bailout package for the telecom sector today, which could include a cut in levies that the industry pays, apart from a lenient definition of income (adjusted gross revenue, or AGR which could reduce the total burden of the sector.

• According to Business Standard, Sebi has introduced an optional T+1 settlement cycle for the markets.T+1 means that settlements will have to be cleared within one day of the actual transactions taking place. The regulator has put the onus on the stock exchanges to decide whether they want to opt for the shorter settlement cycle for any of the listed scrips. This can be done after giving a one-month prior notice to all stakeholders.

• Wipro has informed the stock exchanges about its partnership with Security and information management (Securonix). The partnership brings together Securonix’ analytics-driven detection and automated response tools with Wipro’s global reach and cybersecurity intelligence capabilities to provide organisations with improved governance and security threat protection.

• Dr Reddy's has launched Mintop and Mintop Eva (Minoxidil topical solution USP 2% and 5%) for the treatment of female pattern hair loss (FPHL) in India. This is the first-ever approved drug for the treatment of FPHL (previously approved for the treatment of alopecia in men) in India.

• Britannia is eyeing an opportunity presented by the pandemic, banks on permanent shifts in consumer preferences. The company sees growth of online channels and increased demand on staples & value products as the main drivers in future. It also sees major opportunities for its dairy business and plans to significantly scale up and expand its portfolio in this business.

• According to Business Standard, HDFC Bank has signed a pact with the National Small Industries Corporation (NSIC) for providing credit support to the micro, small and medium enterprise (MSME) sector.

• India Ratings and Research (Ind-Ra) has upgraded Steel Authority of India’s (SAIL) long-term issuer rating to ‘IND AA’ from ‘IND AA-’.

• India Ratings and Research (Ind-Ra) has affirmed NMDC’s long-term issuer rating at ‘IND AAA’. The outlook is stable.

• Rail Vikas Nigam has entered into an MoU with NHAI represented by National Highways Logistics Management (NHLML), in connection with construction of multi modal logistics parks (MMLP) pan-India under Bharatmala Pariyojana. Role of RVNL will be for the design, planning, feasibility study, DPR, implementation and commissioning of the track connectivity work for MMLP. This is likely to fasten the pace of MMPL construction, in-turn, improving logistics.

• Birlasoft has informed stock exchanges about its partnership with Freshworks Inc. The strategic partnership is aimed at helping enterprise to provide an enhanced customer experience management services to their customers through new-age digital transformation solutions.

• Telekom Malaysia Bhd (TM) is partnering with India-headquartered telco Tata Communications to provide IP transit services in Asean. As part of this arrangement, Tata Communications is expanding its IP transit service coverage by leveraging TM's data centre, extensive connectivity and network infrastructure in Malaysia.

• LIC Housing Finance and India Post Payments Bank (IPPB) have tied up for selling housing finance products to its customers. Through its robust and extensive network of 650 branches and more than 136,000 banking access points, IPPB will make LIC Housing Finance’s home loan products accessible to its customer pan-India.

• Bank of India (BoI) has entered into a co-lending arrangement with MAS Financial Services for MSME loans.

 

* Today’s Highlights

Events: China PPI YoY.