Thursday, 28 July 2016

28 July 2016 - Views & News


Alert: GST - Consensus are building on the clearance of GST bill; Cabinet removed the controversial one percent manufacturing tax from the constitutional bull (key demand of opposition) – positive for GST beneficiary stocks / sectors
In a positive push for the Goods and Services Tax (GST) Bill, the Cabinet gave green signal to GST Constitutional Amendment Bill. The Cabinet has removed the controversial one percent manufacturing tax from the Constitutional Bill, which was one of the demands of the Opposition, led by Congress.

Sun Pharma and Almirall enter into a License Agreement on the development and commercialization of tildrakizumab for psoriasis in Europe; Sun to receive upfront payment of $50 mn(~Rs 335 cr) – Positive for Sun
Sun Pharma will be eligible to receive development and regulatory milestone payments and, additionally, sales milestone payments and royalties on net sales, the terms of which are confidential. Sun Pharma will continue to lead development of tildrakizumab for other indications, where Almirall will have right of first negotiation for certain indications in Europe. Additionally, the license agreement has a provision for possible co-promotion agreement at some point in the future, subject to certain conditions.

MCX: Cabinet approves FDI hike in exchanges to 15% for individual companies – Positive for the company


NOCIL Q1FY2017 Results – The company reported 4%YoY growth in revenues for the quarter to Rs192.8 crore. Further lower raw material costs led to expansion in operating margins by 239BPS to 19.0% leading to 19%YoY growth in its operating profit to Rs36.6 crore. Additionally, higher other income (up 75%YoY) and lower interest expense (down 78%YoY) led to 39%YoY growth in its net profit to Rs23.2 crore for Q1FY2017.


Sun Pharmaceutical signs an agreement with RPG Life Sciences  to divest (owned by Sun) seven prescription brands in India for a consideration of INR 41 Crores. The 7 (seven) divested brands include brands used for treatment of respiratory-track infections, urological disorders, cardiovascular diseases and brands in health supplements segment.

Sun Pharma recalls 16000 bottles of bupropion (antidepressant) tablets in US; manufactured at company’s Halol facility – Sentimentally negative.

M&M to set up Mahindra Airways for Aircraft management services

Mahindra & Mahindra has set up Mahindra Airways, a wholly owned subsidiary. Mahindra & Mahindra owns a subsidiary called Mahindra Holdings Ltd which will own the Airways. This will be a unit which will provide management services for aircrafts

Bajaj Auto will introduce products in the both the premium (Pulsar 400 and KTM Husky, V Series) and the commuter segment (upgraded Platina) in FY2017 to boost market share in the domestic motorcycle space.

Dabur India is planning to invest Rs500crore for capacity enhancement and new manufacturing unit in Assam (will require investment of Rs300-350crore); the company would further get benefit from new manufacturing unit in Assam (likely to be operational in early in 2018) – positive read through for the stock

MRPL – Board of directors to meet on August 1 to consider enhancing public shareholding to 25%, OFS or fresh issue likley
Mangalore Refinery and Petrochemicals (MRPL)’s board of directors will meet on August 1 to consider enhancing public shareholding to 25% to comply with SEBI norm. The current public shareholding is 11.42%. There are two options -1) offer-for-sale by ONGC & HPCL or fresh issue of shares. Also the board to consider a proposal to raise Rs 3,000 crore through bond to fund its capital expenditure.

MCX: Cabinet approves FDI hike in exchanges to 15% for individual companies – Positive for the company
Cabinet has approved the hike in FDI limit for individual companies in domestic stock and commodity exchanges to 15% from 5%.  Several single foreign entities with close to 4.75 percent have been waiting for a chance to increase their stake particularly in the Multi Commodity Exchange of India (MCX).

Wipro partners with South Africa’s IDC to create technology access for rural school learners

Wipro announced that it has launched a three-year corporate social investment project in South Africa in partnership with Industrial Development Corporation (IDC) to set up 29 computer laboratories that will benefit 28,000 students from rural areas


Cabinet approves amendments to GST bill, removes 1% addl tax 
SBI to refinance Rs 28,000cr in RCOM-Aircel merger
Wall Street ends lower after Fed keeps rates unchanged
RBI slaps penalty on 13 banks for FEMA violations
SBI kick-starts merger ops, appoints external parties
Govt drops plan for Rs 17.5k crore funds for telecom R&D
RPG Life Sciences to acquire Sun Pharma's brands
SBI-Macquire in talks to buy Moser Baer’s power assets
Trade advisory issued against Chinese firms
Govt plans greater role in RBI's debt market operations
Shinzo Abe's $265 bn stimulus plan puts pressure on BOJ to ease
Lok Sabha passes Benami Transactions Amendment Bill
Sahara spurns $1.3 bn new offer for overseas hotels
Bharti Airtel reports 30% less profit at Rs 1,462 cr in Q1
JSW Steel reports highest ever quarterly PAT at Rs 1,109 crore
Analog Devices to buy chipmaker peer Linear for $14.8 bn
India orders four maritime spy planes from Boeing for $1 bn
YES Bank gets SEBI nod for sponsoring mutual fund
Stalled infra projects cause cost overrun of ₹1.6-lakh cr
Dr Reddy’s pins hopes on new molecules to invigorate profits
MRPL board to consider raising public holding to 25%
Apple’s plan to open retail stores in India on track
China’s Fosun to buy Gland Pharma for $1.3 billion
RBI’s forex war chest gears up for uncertainty
Maharashtra govt orders CAG audit of Tata Power, Rel Infra
Bajaj Auto Q1 profit rises 2% to Rs978 crore
RBI asked SBI to rein in CSR spending: Arundhati Bhattacharya
Yes Bank Q1 profit rises 32% to Rs731 crore         
Cabinet hikes limit for foreign investment in markets to 15%
Sensex closes 48 points up in choppy trade, Nifty settles above 8,600
Amtek looking to sell non-core business, stake in overseas companies
China considers crackdown on risky wealth management products: Draft rules
Monsoon to push GDP growth to over 8%: Panagariya
NAREDCO seeks easy bank finance for realtors
China's LeEco to buy US TV maker Vizio for $2b
Canara Bank gets shareholders nod to raise capital
States asked to speed up implementation of e-NAM
Defence PSUs can float JVs with foreign firms

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