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StockAxis Weekly Newsletter March 26, 2022

Sensex, Nifty down after two weeks dragged by Banking & FMCG Stocks.

Indian Markets

Equity Benchmark Indices declined for third consecutive session to log losses for the week Dragged by Banking, FMCG Stocks. S&P BSE Sensex degrew (-0.87%) to 57,362.20 in the week ending March 11th, while the NSE Nifty50 declined -0.78% to 17,153.

On the sectoral front, NiftyMedia (+6.95%), NiftyMetal (+5.12%), NiftyIT (+1.43%), NiftyPharma (+0.45%), NiftyRealty (-0.35%), outperformed the NSE Nifty50 index and NiftyPSUBank (-1.50%), NiftyAuto (-2.10%), NiftyBank (-2.80%), NiftyFMCG (-3.43%) underperformed the index.

The India VIX was +3.6% to 23.43.

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

Date FIIs DIIs
21-03-2022 -2,962.12 +252.91
22-03-2022 +384.48 -602.05
23-03-2022 +481.33 -294.23
24-03-2022 -1,740.71 +2,091.07
25-03-2022 -1,507.37 +1,373.02

News Update

Zydus Lifesciences: Company has received Prior Approval Supplement (PAS) approval from the USFDA to market Mycophenolate Mofetil for Injection USP, 500 mg/vial (US RLD: CellCept injection). The injection will be manufactured at the group’s injectables manufacturing facility at Jarod near Vadodara in Gujarat. The Prior Approval Supplement (PAS) was for a site transfer into the Jarod site. This site was recently inspected by the USFDA. Earlier, in September 2017, the group was granted approval to market Mycophenolate Mofetil for Injection in the strength of 500 mg/vial. Mycophenolate Mofetil is indicated for use in combination with other drugs i.e., cyclosporine and corticosteroids for the prophylaxis of organ rejection in patients receiving renal, hepatic or cardiac transplants. The group now has 330 approvals and has so far filed over 400 ANDAs since the commencement of the filing process in FY 2003-04.

Maruti Suzuki India: Companys parent organization -- Suzuki Motor Corporation (SMC) has signed Memorandum of Understanding (MoU) with the State of Gujarat, India to invest around 150 billion yen (around 104.4 billion rupees) for local manufacturing of electric vehicles (BEV) and BEV batteries. Outline of MOUs are Suzuki Motor Gujarat (SMG) will increase production capacity for BEV manufacturing with investment of Rs 31 billion by 2025 and construction plant for BEV batteries (land neighboring to SMG) with Rs 73 billion by 2026 and Maruti Suzuki Toyotsu India (MSTI) will construction vehicle recycling plant with Rs 45 crore by 2025.

Transport Corporation of India (TCI): Company is planning to line up a capital expenditure of around Rs 250 crore for the next fiscal. Of the total capital expenditure (Capex), the company is expected to spend Rs 100-125 crore on ships and containers. It is looking at around 12-15 per cent growth in topline and 20 per cent growth in the bottom-line. Transport Corporation of India, currently, has about 12-million sq ft of warehousing space under its management, which is expected to increase further as the company acquires more space going forward.

Godawari Power & Ispat (GPIL): Company has signed a Share Purchase Agreement with Hira infraTek (HITL) on March 21, 2022 to acquire 44,54,621 equity shares of Hira Ferro Alloys (HFAL) from HITL at a price of Rs 224 per share. Subsequent to acquisition of these 44,54,621 equity shares of HFAL from HITL, the GPIL's holding in HFAL shall increase from 56.45% to 75.66% of the paid-up capital of HFAL. The transaction will be completed within 10 days.

Indoco Remedies: Company has received final approval from the United States Food & Drug Administration (USFDA) for Lacosamide Tablets USP 50 mg, 100 mg, 150 mg and 200 mg, the generic version of Vimpat Tablets of UCB, Inc. Lacosamide Tablets are indicated for the prevention and control of seizures. It is an anticonvulsant/antiepileptic drug. According to IQVIA sales data for the period ending January 2022, Vimpat Tablets market achieved annual sales of approximately $1.7 billion. The ANDA approval for Lacosamide Tablets on the day of patent expiry, reverberates the company’s enduring commitment to make quality and affordable generic medicines available to more patients in the United States. Its first shipment of Lacosamide Tablets has already reached US.

InterGlobe Aviation (IndiGo): Company has reported the Passenger Load Factor (PLF) of 85.2% during the month of February 2022. The company had reported PLF of 66.6% during the month of January 2022.The PLF is a key indicator of the company’s performance, as it measures the average percentage of seats filled on airline’s aircraft fleet.

REC: Company has received approval to raise up to Rs 85,000 crore in FY23 which includes Rs 75,000 crore from different types of bonds, term loans, external commercial borrowing among others. The company will also raise up to Rs 5,000 crore through short-term loans from Banks/Fls/NBFCs etc. The company has also planned to raise Rs 5,000 crore through commercial papers. The board of director at their meeting held on March 21, 2022 has approved the same.

Sun Pharmaceutical Industries: Company is has entered into a share purchase agreement with Japan's Daiichi Sankyo Company to acquire the latter's 11.28 per cent stake in Zenotech Laboratories. The primary objective of the transaction from acquirer's perspective is to consolidate its holding in the target company. The company will pay Rs 5.32 crore for the stake and the acquisition is expected to complete in 30 days.

Tata Motors: Company is all set to increase prices of its commercial vehicles from April 01, 2022. An increase in price in the range of 2-2.5%, across the range, depending upon individual model and variant. The increase in the prices of commodities such as steel, aluminium and other precious metals, in addition to higher costs of other raw materials, has incited this price hike of commercial vehicles. While the company has initiated actions to absorb a significant portion of the increased costs, at various levels of manufacturing, the steep rise in overall input costs makes it imperative to pass on some residual proportion via a minimized price hike.

MTAR Technologies: Company has been declared as L1 bidder for tenders floated by NPCIL for Fuel Transfer System of GHAVP 1&2 reactors and FM Bridge & Carriage assemblies of Kaiga 5&6 /GHAVP 3&4 nuclear reactors. The combined value of orders is approximately Rs 135 crore and purchase orders for the same are expected in Q1 FY23.

HDFC Bank: Company has been allotted 10 lakh fully paid up Equity Shares of face value of Rs 100 each by Open Network For Digital Commerce (ONDC) for a consideration of Rs 10 crore. Post investment, HDFC Bank holds 7.84% of the Equity share capital of ONDC. The proposed transaction will enable the Bank’s participation in ONDC’s objective of creating an open public digital infrastructure to develop and transform the Indian digital commerce ecosystem for both goods and services.

Triveni Turbine: Company’s wholly owned subsidiary - Triveni Turbines DMCC has signed an agreement for acquisition of 70% equity shares of TSE Engineering (TSE). TSE is registered under the laws of South Africa and is engaged in high precision engineering repairs and servicing of machinery in sugar and other industrial plants in South African Development Community (SADC) region. With the said acquisition of these shares, TSE will become a step down subsidiary of Triveni Turbine.

Motherson Sumi Systems: Company has secured an order from Boeing to manufacture and supply aftermarket molded polymer parts for commercial airplane interiors. This is the first order for the company from Boeing and will commence from the third quarter of FY23. It will be produced at a plant situated in Noida. With this order, the company becomes a tier-1 supplier to Boeing. This marks the beginning of a new journey in line with the company vision for growth in aerospace.

Coforge: Company has been named JAPAC Breakthrough Partner of the Year by MuleSoft, provider of the world’s 1 integration and API platform. The Salesforce Business Unit of Coforge has been honored for its excellence in enabling customers to accelerate their digital transformation initiatives in the JAPAC region. It has dedicated the last year to success for companies in JAPAC region, achieving this distinction by helping its customers improve efficiency with reusable building blocks to enable speed and agility.

Torrent Power: Company has, pursuant to Securities Purchase Agreement with Lightsource India and Lightsource Renewable Energy (India), completed transaction of acquisition of 100% of the share capital and all securities of LREHL Renewables India SPV 1 (SPV). The SPV operates 50 MW solar power plant, commissioned in April 2018, situated in the state of Maharashtra. It has a long-term Power Purchase Agreement with Solar Energy Corporation of India for full capacity for a period of 25 years at a tariff of Rs 4.43/ kWh. Enterprise value for this acquisition is around Rs 300 crore including the VGF receivable, consequent to closing adjustments.

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%