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ICICIdirect Research Posted on 09:32am 07-Oct-2021

TCS has extended its partnership with State Bank of India for another five years...

* Market Outlook

Indian markets are likely to open gap up on the back of positive global cues, aided by a top US Senate Republican backing an extension of the US debt ceiling and Russia calming the volatile natural gas markets in Europe declaring enhanced supplies would meet demand.

 

*  Markets Yesterday

• Domestic markets ended lower tracking losses in IT, pharma, auto and metals stocks amid weak global cues.

• US markets ended higher amid possible temporary extension of debt limit.

 

* Key Developments

• According to latest RBI fortnightly data, bank credit rose 6.67% to | 109.5 lakh crore and deposits by 9.34% to | 155.9 lakh crore in the fortnight ended September 24, 2021. Credit growth in the previous fortnight was also at similar levels of ~6.7% YoY.

• For Q2FY22, Tata Steel India quarterly crude steel production was at 4.73 million tonnes (MT), up 2% QoQ & 3% YoY. Tata Steel India’s delivery volumes for Q2FY22 were at 4.64 MT, up 12% QoQ, down 8% YoY. For Q2FY22, Tata Steel Europe production volume was at 2.56 MT, down 4% QoQ, up 19% YoY. Tata Steel Europe’s sales volume for Q2FY22 was at 2.16 MT, down 7% QoQ & 5% YoY.

• Sobha has achieved best ever sales volume of 13,48,864 sq ft (up 51.2% YoY, up 30% from pre Covid – Q2FY20) during Q2FY22 valued at | 1030.2 crore (up 49.3% YoY). The overall sales were primarily driven by good sale numbers achieved in Bengaluru, Gurugram, Pune and GIFT CITY. The sales volume run rate is at similar levels to Q4FY21 (pre second wave) and implies strong recovery. Festive quarter traction ahead is likely ahead. Most importantly, debt, which has remained elevated, will be the key monitorable.

• According to The Economic Times, Global rating firm Moody's has affirmed the long-term local and foreign current deposit ratings of Axis Bank, HDFC Bank and State Bank of India at Baa3. Also, the rating outlook for these banks has been changed to stable from negative. Moody’s also affirmed the long-term local and foreign currency deposit ratings of Bank of Baroda, Canara Bank, Punjab National Bank and Union Bank of India and revised rating outlooks of these banks to stable from negative.

• Lupin has received USFDA tentative approval for its ANDA, Brexpiprazole Tablets (Generic for Rexulti of Otsuka). The approved drug will be manufactured at Lupin's Plthampur facility In India. Market size of Brexpiprazole Tablets in US is US$1258 million (IQVIA, MAT July 2021).

• KNR Constructions has achieved Provisional Certificate of Completion for “Four laning of Trichy to Kallagam Section of NH-227 in Tamil Nadu (bid project cost: | 1,020.6 crore)" effective from May 30, 2021. The project was completed 89 days ahead of the revised scheduled completion date.

• Zee Entertainment has moved the National Company Law Appellate Tribunal (NCLAT) seeking “more time” to file its reply with regard to the petition filed by its shareholder Invesco Developing Market Funds for convening the extraordinary general meeting of the company (EGM). The company has also sought stay of proceedings at the NCLT, till the NCLAT gives its final order. The petition is likely to come up for hearing before the NCLAT on Thursday.

• Apollo Hospitals has launched the Apollo Centre of Excellence in Critical Care (ACECC) to create an integrated network of eICUs to provide critical care across the Apollo and non-Apollo Hospitals network. The ACECC will comprise digital technology enabled critical care units (CCUs) having standard protocols and operating procedures (SOPs) supported by smart solutions. This will enable expansion of the critical care network through e-ICUs using Tele-health and Apollo Connect.

• Godrej Consumer Products has forayed into the premium baby care segment, launches its brand "goodnessme". The brand will notably focus on organic baby care products. The company currently has introduced five products including baby soap, oil, lotion, cream & baby head to toe wash under its portfolio. The brand will be a digital native brand & products will be sold via online channels Amazon, Flipkart & FirstCry along with the brands own website.

• Amansa Holdings & Amansa Investments have sold over 4.79 lakh equity shares in Gateway Distriparks via open market transactions on October 1, reducing shareholding to 6.31% from 6.69% earlier.

• According to Business standard, with Srei group exposures becoming bad loans, the immediate provisions that lenders have to make is over | 5,000 crore. Total exposure towards two Srei entities is pegged at | 30,000 crore.

• According to PropEquity, the total sales of residential units in the top seven cities witnessed a YoY increase of 17% to 1,99,243 units in January-August 2021. Bengaluru, Chennai, Hyderabad, MMR, and Pune witnessed growth in home sales by 11%, 27%, 35%, 20%, and 22%, respectively. However, new launches in these seven cities were down 2% to 1,54,246 units.

• TCS has extended its partnership with State Bank of India for another five years. TCS will continue to maintain and enhance SBI's applications around core banking, trade finance, financial reporting and also support new launches by the bank.

• According to The Times of India, Adani Total Gas has increased CNG price by | 1/kg to | 59.9/kg whereas domestic PNG price was hiked to | 991.2/mmbtu in Ahmedabad. It has also increased prices in other geographical areas.

• IOC is in discussion with state transport utilities of Kerala, Uttar Pradesh and Gujarat to set up hydrogen manufacturing units and refuelling stations. Also, the company will set up a new R&D centre at an investment of | 3,200 crore in Faridabad. It is expected to be ready by 2023.

• Cyient has announced the appointment of Rajneesh Kini as CTO and senior VP. Before joining Cyient, Rajneesh was a head of Global ER&D solutions delivery at Wipro.

• Today is ex-date for stock split of Affle India. Sub division will in the ratio of 1:5 i.e. one share of face value (FV) of | 10 will be split into five shares of FV of | 2.

 

*  Today's Highlight

Events: US initial job claims, China Services PMI, Forex reserves.