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ICICIdirect Research Posted on 09:12am 18-Nov-2020

Wipro shareholders have approved a | 9500 crore buyback plan at | 400/share...

* Market Outlook

Indian markets are likely to see a flattish opening tracking slightly negative global cues amid a resurgence of Coronavirus cases. However, global news flows and sector specific development will be key monitorables.

* Markets Yesterday

 Domestic markets ended higher on the back of positive global cues amid encouraging developments in Covid-19 vaccine trials

• US markets ended lower tracking profit booking amid rising Covid-19 infections and release of weaker-than-expected macroeconomic data


* Key Developments  

• The Niti Aayog CEO will be chairing a review meeting with bureaucrats from infrastructure sector to revisit plans and initiate alternative monetisation models. The assets identified are a mix from railways, airports, metros, petroleum pipelines and government-owned commercial complexes

• According to the latest preliminary analysis done by Crisil, of 3523 non-MSME firms, only 1% have shown interest to go for one-time debt restructuring as business sentiments are improving gradually. RBI had come out with this scheme in August 2020 for companies under stress due to pandemic

• NBCC (India) has secured order worth | 1,166 crore in October 2020. NBCC’s order book (OB) at the end of September 2020 was strong at ~| 72,000 crore. However, pick-up in execution, normalisation of margin remains key

• Wipro shareholders have approved a | 9500 crore buyback plan at | 400/share

• NMDC has taken a second price hike in November as prices of lump & fines have been increased by | 400/tonne & | 300/tonne, respectively. After the hike, NMDC fines (64% Fe, -10mm) prices are currently at | 3610/tonne (| 3310/tonne as on November 4, 2020) while lumps (65.5%Fe, 6-40 mm) prices are at | 4000/tonne (| 3600/ tonne as on November 4, 2020)

• The Oil Minister has asked upstream companies to consider farming out their acreages to global peers with advanced technology to raise oil & gas output 

• Larsen & Toubro (L&T) has delivered the first hardware, the middle 'booster' segment of the world's third largest solid propellant rocket booster, 'S-200', for Gaganyaan Lunch Vehicle (LV) to Isro ahead of schedule with zerodefects

• Mahindra & Mahindra (M&M) will be introducing its new tractor platform i.e. K2 in its Zaheerabad (Telangana) facility. The new K2 platform has been designed in collaboration with Mitsubishi will offer products across the hp range in sub compact, compact, small utility and large utility categories. The Zaheerabad facility has a present capacity of 1 lakh tractors p.a. on a double shift basis and exports ~65% of output

• The IIFL board will meet on November 20 to consider buyback of equity shares as per its latest BSE filing

• Nippon Life India AMC has made submission to the exchanges with respect to the re-classification of Reliance Capital from the ‘Promoter and Promoter Group’ category to ‘Public’ category, after receiving approval from shareholders and Sebi

• 25FPS Media, one of the promoter of Zee Media, has sold 2.7% stake in company post invocation

• As per media reports, Pfizer Inc. has filed a petition against Aurobindo Pharma and Dr Reddy's Laboratories in the US District Court of Delaware alleging that the companies were planning to come out with generic versions of its blockbuster multi-billion dollar breast cancer drug, Ibrance (palbociclib) before patent expiry. According to Pfizer's 2019 annual report, the drug had nearly US$5 billion in revenues globally including US$3.25 billion in US sales in 2019

• According to media reports, lenders to beleaguered Srei group may go towards NCLAT as they alleged that Srei had tried to reconsolidate its assets in a separate group company and decided to transfer its assets to Srei Equipment Finance (SEFL) without their approval. Total bank facilities to the company are to the tune of | 16912 crore

• As per media reports, nearly 5000 theatres (~55% of total number of theatres) have resumed operations in India post receiving government's permission to reopen in October


* Today's Highlights

Events: EU CPI YoY, UK CPI YoY, US crude oil inventories, US crude oil imports