Monday, November 20, 2017

Biocon gets EIR closure report, stock up 4 percent

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US Food and Drug Administration has issued an Establishment Inspection Report in relation to the cGMP (current good manufacturing practice) inspection of its aseptic drug product facility that was audited between May 25 -June 3, 2017.

 Biocon in a filing with exchanges says that it has received the Establishment Inspection Report with 'voluntary action indicated' status from the US FDA on closure of inspection of its aseptic drug product facility.

The stock is up 4 odd percent in the early trade and as of now trading around Rs 412.


Sunday, November 19, 2017

Moody's ratings on India : Take upgradation with a pinch of salt

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In June this year, Moody's had said that India's debt level is "significantly" higher compared with similarly rated countries. 

Rating agencies including Moody's,Standard & Poor’s and Fitch Ratings have all had India just above “junk” status.

Fundamentally, since June 2017, nothing has changed, in fact bank's bad loans have increased.

GDP growth has fallen for five consecutive quarters, to just 5.7% in April-June 2017.  According to a study, the government’s demonetisation exercise is estimated to have wiped away around 1.5 million jobs.

Demonetisation badly hit, and often killed, India’s multitude of cash-based businesses, and may have depressed GDP by more than a percent.  Investment is stagnant, industrial production is subdued, and exports fell in October. 

Informal and unorganised sector has collapsed. Banks credit growth in single digit.

Citigroup Inc. and UBS Group AG are among global banks that have lowered their estimates for India’s growth after the latest data showed gross domestic product rose at the slowest pace since 2014.

Profit expectations from Indian Companies this year may see further cuts as a likely slowdown in government spending, falling farm incomes and a new tax raise near-term uncertainty, according to Credit Suisse Securities.

In spite of the above, Moody's have upgraded India's ratings. One has to take this kind of upgradation with a pinch of salt.

Moody's does a U turn, says budget deficit will widen in 2017-18

Moody's had last week raised India's sovereign rating for the first time in over 13 years, saying growth prospects have improved with continued progress on economic and institutional reforms. The rating was upgraded to Baa2 from Baa3 and rating outlook was changed to stable from positive.

Now Moody's says that higher taxes and higher public expenditure could widen budget deficit in 2017-18, but steps taken by the government to broaden the tax base and improve spending efficiency would help in narrowing it going forward.


L&T gets major order from MMRDA


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Infra giant L&T has bagged an order worth Rs 8,650 crore from the Mumbai Metropolitan Region Development Authority (MMRDA) for the construction of Mumbai Trans Harbour Link.

The project involves construction of a 21.8 km bridge connecting Mumbai mainland with Navi Mumbai. 

IMF : India has the lowest per capita among Brics nations

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According to World Bank, India's per capita GDP has risen to $7,170 in 2017, from $6,690 last year, helping improve its rank by a position to 126th. Qatar remains top ranked with per capita GDP of $124,930, followed by Macao at the second position with $114,430 and Luxembourg third with $109,190.

Among BRICS countries, India has the lowest per capita GDP. Russia boasts of a GDP per capita of $27,900, while for China, it stood at $16,620, Brazil at $15,500 and South Africa at $13,400.


Nomura : Retail inflation will be above 4 percent


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According to global financial research firm, Nomura,  retail inflation, which touched a seven-month high in October, is expected to rise further and cross the 4 per cent mark this month, driven by rise in vegetable and oil prices.

Nomura  expects CPI inflation to rise above 4 per cent in November and stay above the RBI’s target of 4 per cent through 2018. 

Nse shifts 3 stocks to 'Z' category

Nse has shifted the the following securities to ‘BZ’ series with effect from November 27, 2017 due to non-compliances of the Reg. 27(2) of the SEBI (LODR) Regulations, 2015 for two consecutive quarters i.e. June 30, 2017 & September 30, 2017. 

1. Farmax India Limited 
2. Educomp Solutions Limited 
3. ABG Shipyard Limited

 The trades in the aforesaid securities executed in ‘BZ’ series will be settled on Trade for Trade basis.

Infy buyback opens on 30th Nov


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Infosys's Rs 13,000-crore buyback offer will open on November 30 and end on December 14.

The share buyback, which will be the first in the company's 36-year long history, will see Infosys buying back over 11.30 crore shares at Rs 1,150 apiece.

Cadila receives USFDA nod for Ethacrynate sodium

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Zydus Cadila has received final approval from the US health regulator to market Ethacrynate sodium for injection, used to reduce swelling caused by various diseases.

The company has received final approval from the US Food and Drug Administration to market the drug in the strength of 50 mg/vial.

The company will produce the drug at its formulations manufacturing facility in Moraiya, Ahmedabad.

MMS : Economy not out of woods

Dr Manmohan Singh, former prime minister and noted economist says that NDA government should not be "lured into false belief" that the economy is out of the woods, former prime minister Manmohan Singh said on Saturday, reacting to the Moody's upgradation of India's sovereign credit rating.

The US-based agency upped India's rating to Baa2 from Baa3 and changed its rating outlook to 'stable' from 'positive', saying the reforms will help stabilise rising levels of debt.

I am glad that Moody's has done what they have done but we must not be, I think, lured into false belief that we are out of the woods, says the doctor.

Saturday, November 18, 2017

IPO ANALYSIS : SILVER TOUCH TECHNOLOGIES LIMITED - INVEST

ISSUE DETAILS :



Issue opens / closes on

20-11 / 23-11-2017
Issue Size
33,24,000 equity shares
Face Value
Rs 10
Price
Rs 121

BUSINESS
Information technology - System integration and software Services
Promoters
VIPUL H THAKKAR, JIGNESH A PATEL, MINESH V DOSHI AND PALAK V SHAH
LISTINGS
Nse sme
BRLMs
Chartered Capital and Investment
REGISTRAR
Link Intime


US tax laws woes : Wall Street falls

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Wall Street stocks fell as investors pulled back from technology stocks and were skeptical President Donald Trump’s Republican party would succeed in its efforts at overhauling U.S. tax law.

Dow Jones Industrial Average fell 90.38 points to 23,368, the S&P 500 lost 4.53 points to 2,581.11 and the Nasdaq Composite dropped 6.85 points to 6,786.44.

BSE rejigs Sensex stocks, Cipla, Lupin dropped

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BSE has rejigged the Sensex stocks by dropping 2 pharma stocks, Cipla and Lupin. In their place Indusind Bank and Yes Bank has been included.

The changes will come into effect from Monday, December 18, 2017. 

Sun Pharma is the only stock from pharma sector to remain in the headline Index.