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StockAxis Weekly Newsletter June 11, 2022

Sensex, Nifty Log Worst Week dragged by information technology and banking stocks.

Indian Markets

Equity Benchmark Indices logged their worst week in four, dragged by across sectors, particularly information technology and banking stocks. S&P BSE Sensex degrew (-2.6%) to 54,303.44 in the week ending June10th, while the NSE Nifty50 degrew (-2.3%) to 16,201.80.

On the sectoral front, only NiftyAuto (+0.99%), NiftyPharma (+0.00%), NiftyPSUBank (-0.69%), NiftyRealty (-1.57%), NiftyFMCG (-2.21%), NiftyBank (-2.24%), outperformed the NSE Nifty50 index and NiftyMedia (-2.40%), NiftyMetal (-2.42%), NiftyIT (-2.64%), underperformed the index.

The India VIX was +2.0% to 19.58.

FIIs/DIIs Daily Cash Market Activity (INR. in Crores)

Date FIIs DIIs
06-06-2022 -2,397.65 +1,940.00
07-06-2022 -2,293.98 +1,311.14
08-06-2022 -2,484.25 +1,904.33
09-06-2022 -1,512.64 +1,624.90
10-06-2022 -3,973.95 +2,831.07

News Update

Zydus Lifesciences: Company has received final approval from the United States Food and Drug Administration (USFDA) to market Famotidine Tablets in the strengths of 20mg and 40mg. Famotidine is a histamine H2 receptor blocker. It works by reducing the amount of acid in the stomach. It is used to prevent and treat heartburn and other symptoms caused by excessive acid in the stomach (acid indigestion). The drug will be manufactured at group’s drug formulation facility at SEZ, Ahmedabad.Famotidine Tablet has a market size of $67 million (as per IQVIA MAT April 2022). The group now has 315 approvals and has so far filed over 420 ANDAs since the commencement of the filing process in FY 2003-04.

TVS Motor: Company is aiming to build a ‘sustained dominant play’ in the electric vehicle segment by leveraging various government initiatives like a production-linked incentive schemes, among others. As per its annual report for 2021-22, the company has robust plans to scale up its play in the electric segment. The PLI (Production-Linked Incentive) and FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) initiatives of the government will be fully leveraged by the company and strategically build a sustained dominant play in this segment.

Maruti Suzuki India: Company has set up a 20 MWp solar power plant at its Manesar-based manufacturing facility. The initiative will contribute 28,000 MW per annum, which is equivalent to the energy required for the production of over 67,000 cars annually. The company's efforts are aligned towards encouraging decarbonisation in a bid to bring down emissions. The power generation from this initiative will constitute over 11.5 per cent of the power requirement of the facility at Manesar.

Tata Motors: Company has reportedly delivered 17 Nexon EVs to Kolkata Police. Kolkata Police has inducted 17 Tata Nexon EVs into its official fleet on the occasion of World Environment Day. These electric SUVs were added as a part of its mission to replace the ageing diesel vehicles with environment-friendly electric vehicles.

Lupin: Company has received tentative approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Ivacaftor Tablets, 150 mg, to market a generic equivalent of Kalydeco Tablets, 150 mg of Vertex Pharmaceuticals Incorporated. This product will be manufactured at Lupin’s Nagpur facility in India. Ivacaftor Tablets (RLD: Kalydeco Tablets) had estimated annual sales of $109 million in the U.S.

Tech Mahindra: Company has entered into share subscription agreement to acquire 26% equity shares in Huoban Energy 6 (Huoban). Tech Mahindra is signatory to Business Ambition for 1.5 degree Celsius that commits to contain the rise in global in temperature by 1.5 degree Celsius. Tech Mahindra has adopted a climate action plan that provides a roadmap for the organization to become Net Zero before 2040.

Tata Steel: Company has acquired 16,50,00,000, 12.17% stake (effective yield) Non-cumulative, Non-convertible, Non-Participating, Redeemable Preference Shares (‘NCRPS’) of face value Rs 10 each of TRF, aggregating to Rs 165 crore.The NCRPS are being acquired to assist TRF in meeting its additional working capital requirements, repayment/prepayment of the whole or a part of the existing indebtedness of TRF (including to financial or operational creditors) and/or for other general corporate purposes.

Suraj Industries: Company has received approval from board of directors for investment upto 20.08% in the expanded share capital of Shri Gang Industries and Allied Products by way of subscription upto 36 lakh equity shares of Shri Gang Industries and Allied Products at par Rs 10 per share. By virtue of the acquisition, Suraj Industries will become Associate Company of Shri Gang Industries and Allied Products. The board of directors of the Company at their meeting held on June 08, 2022 has approved the same.

Ramco Cements: Company in order to expand the capacity, Ramco Cements is reportedly planning a total capex of Rs 1,200-1,300 crore over the next two years. The company’s net debt stood at Rs 3,800 crore as of FY22 and it plans to repay Rs 500 crore debt in FY23 whereas it targets to become net debt-free by FY26 if no other major capex is planned.

Tanla Platforms: Tanla Platformsand Kore.ai, the world’s leading enterprise conversational AI software platform and solutions company, have entered into an exclusive partnership in five countries - India, United Arab Emirates, Indonesia, Vietnam, and Philippines.This partnership is a momentous step forward in offering enterprises and brands the ability to upraise the digital experiences of their key stakeholders: customers, partners, and employees through best-in-class conversational artificial intelligence (AI) based Natural Language Processing (NLP) system. For the users, this effectively translates into digital interactions truly becoming intuitive and meaningful.

Tata Steel: Tata Steel and Welspun Corp have signed Memorandum of Understanding (MoU) to jointly work towards developing the framework for and subsequently manufacturing green pipes for the transportation of pure hydrogen and hydrogen blended with natural gas. This MoU will enhance the general understanding and knowledge of the transportation of hydrogen globally.

HFCL: Company has bagged purchase orders aggregating to Rs 73.39 crore consisting purchase orders of Rs 51.09 crore, from one of the leading Private Telecom Operators of the Country for supply of UBRs (Unlicensed Band Radio) along with Accessories and of Rs 22.30 crore, from one of the leading EPC players of India for supply of Optical Fibre Cables.

Dr. Reddy's Laboratories: Company’s wholly owned subsidiary - Aurigene Discovery Technologies (Aurigene) and Olema Pharmaceuticals, Inc (Olema) have entered into exclusive global license agreement to research, develop and commercialize novel small molecule inhibitors of an undisclosed oncology target.

Alembic Pharmaceuticals: Company has received tentative approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Dasatinib Tablets, 20 mg, 50 mg, 70 mg, 80 mg, 100 mg, and 140 mg. The tentatively approved ANDA is therapeutically equivalent to the reference listed drug product (RLD) Sprycel Tablets, 20 mg, 50 mg, 70 mg, 80 mg, 100 mg, and 140 mg, of Bristol Myers Squibb Company (BMS). Dasatinib Tablet is indicated for the treatment of adult patients with i) newly diagnosed Philadelphia chromosome-positive (Ph+) chronic myeloid leukemia (CML) in chronic phase ii) chronic, accelerated, or myeloid or lymphoid blast phase Ph+ CML with resistance or intolerance to prior therapy including imatinib iii) Philadelphia chromosome-positive acute lymphoblastic leukemia (Ph+ ALL) with resistance or intolerance to prior therapy.

HDFC Bank: Company has launched full value outward remittance service in US Dollar (USD) Euro (EUR) and the Pound Sterling (GBP) for trade and retail customers. The first-of-its-kind ‘Full Value’ feature ensures that when a customer sends money abroad, the full amount remitted will reach the overseas beneficiary, without any deductions of foreign bank charges.

NIFTY 17,698.15 0.22% SENSEX 59,462.78 0.22% BANKNIFTY 39,042.30 0.42% ADANIPORTS 788.35 -0.56% ASIANPAINT 3,427.85 0.67% AXISBANK 760.55 0.22% BAJAJ-AUTO 4,038.00 0.11% BAJAJFINSV 15,765.45 0.18% BAJFINANCE 7,309.40 -0.13% BHARTIARTL 709.70 -0.01% BPCL 333.90 1.69% BRITANNIA 3,659.75 0.53% CIPLA 1,027.15 -1.08% COALINDIA 221.65 1.40% DRREDDY 4,260.80 0.06% EICHERMOT 3,210.15 1.06% GAIL 131.50 2.22% GRASIM 1,622.60 1.41% HCLTECH 956.40 -0.62% HDFC 2,456.40 0.06% HDFCBANK 1,485.15 -0.04% HEROMOTOCO 2,761.90 -0.84% HINDALCO 436.25 0.63% HINDUNILVR 2,594.95 -0.72% IBULHSGFIN 124.75 0.44% ICICIBANK 874.40 1.71% INDUSINDBK 1,080.45 0.12% INDUSTOWER 196.45 0.69% INFY 1,594.10 -1.60% IOC 71.55 0.85% ITC 308.55 0.75% JSWSTEEL 678.20 0.68% KOTAKBANK 1,841.20 -0.66% LT 1,846.45 -1.11% M&M 1,259.45 -0.53% MARUTI 8,699.20 -1.30% NTPC 158.50 3.16% ONGC 139.20 4.82% POWERGRID 228.05 2.33% RELIANCE 2,633.00 1.62% SBIN 530.70 1.13% SUNPHARMA 913.45 -0.83% TATAMOTORS 477.55 0.19% TATASTEEL 112.65 3.25% TCS 3,401.55 -0.61% TECHM 1,065.90 -1.05% TITAN 2,471.95 -0.02% ULTRACEMCO 6,559.30 -0.57% UPL 788.90 2.79% VEDL 262.45 2.30% WIPRO 436.10 -0.54% YESBANK 15.30 -0.65% ZEEL 241.80 -2.52%