SGX Nifty Up 14 Points, HUL's Quarterly Performance, Tata Motors on EV Battery Prices, and Buzzing Stocks Today

Wed, 20 Oct Pre-Open

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Indian share markets ended on a flat note yesterday.

Dalal street's greatest winning streak in over ten months came to an end when benchmark indices fell for the first time in eight sessions.

Profit booking as a consequence of in-line September quarter results pulled markets down from intra-day highs.

At the closing bell yesterday, the BSE Sensex stood lower by 50 points (down 0.1%).

Meanwhile, the NSE Nifty closed lower by 58 points (down 0.3%).

Tech Mahindra and Larsen & Toubro were among the top gainers.

ITC and Tata Motors, on the other hand, were among the top losers.

The BSE Mid Cap index and the BSE Small Cap index ended down by 2% and 1.8%, respectively.

Sectoral indices ended on a negative note with stocks in the realty sector, consumer durables sector and FMCG sector witnessing most of the selling pressure.

IT stocks, on the other hand, witnessed buying interest.

Shares of Cera Sanitary and Oracle Financial hit their respective 52-week highs.

At 8:00 am today, the SGX Nifty was trading up by 14 points, or 0.1% higher at 18,451 levels. Indian share markets are headed for a flat opening today following the trend on SGX Nifty.

Gold prices for the latest contract on MCX were trading up by 0.3% at Rs 47,430 per 10 grams at the time of closing stock market hours yesterday.

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Top Stocks in Focus Today

Among the buzzing stocks today will be TTK Prestige.

Shares of TTK Prestige zoomed 20% on the exchanges yesterday to hit a record high after the company said it plans to consider the proposal of a stock split on 27 October 2021.

The stock surpassed its previous high of Rs 9,580 touched on 5 July 2021.

A stock split is generally done to make the scrip more affordable for small retail investors and increase liquidity.

Existing shares are split, but the underlying value remains the same. As the number of shares increases, the price per share goes down.

As of 30 September 2021, TTK Prestige had 13.7 m outstanding equity shares.

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The promoter and promoter group held a 70.4% stake, while the remaining 29.6% was held by public shareholders including mutual funds (13.1%), foreign portfolio investors (9.9%) and individual shareholders (5.1%).

With increased mobility and optimistic outlook on the consumer confidence index, analysts expect consumer durables companies to continue with their growth momentum. TTK Prestige is likely to grow as well.

HUL share price will also be in focus today.

Hindustan Unilever reported a standalone net profit of Rs 21.9 bn for the September quarter, an increase of 9% from Rs 20.1 bn reported in the same quarter last year.

On a sequential basis, the profit after tax (PAT) grew 6% from Rs 20.6 bn in the June quarter.

The FMCG major's revenue from operations rose 11% to Rs 127.2 bn as against Rs 114.4 bn in the year-ago period.

HUL's domestic consumer business recorded a growth of 11% over last year during the September quarter.

Segment wise, home care business grew 15% in the reporting period, driven by high double-digit growth in Fabric Wash. Household care continued to perform well and grew on a strong base. Liquids and fabric sensations continued to outperform.

Beauty and Personal Care grew 10% led by skin care, colour cosmetics and hair care, while foods and refreshment business has seen a growth of 7% against a strong prior year comparator.

The company has also declared an interim dividend of Rs 15 per equity share for the financial year ending 31 March 2022.

Tata Motors on EV Prices

Tata Motors has claimed that cost of batteries for EVs will drop to levels that will make them affordable in 2-3 years even if the government were to withdraw subsidies offered on EVs.

India's EV industry is thriving on an array of incentives provided by central and state government to promote the faster adoption of the eco-friendly vehicles.

If incentives from both channels are put together, the total benefit for an electric car buyer could amount to as much as Rs 3 lakh.

The central government offers subsidies under the Faster Adoption and Manufacturing of Electric Vehicles, or FAME II, scheme.

In a concall with analysts, Shailesh Chandra, president of the passenger vehicle business unit at Tata Motors said,

• Subsidies are going to be important for the next few years, but this will be required as long as battery prices are at a certain level.

He added that battery prices will come down rapidly in the next 2-3 years.

According to the US's Department of Energy, the cost of EV lithium-ion battery packs has declined 87% between 2008 and 2021.

Tata Motors is working on electric versions of the Punch and the Harrier in the coming years as well as born-electric models, all of which will make up seven new product offerings by fiscal 2026, taking the total EV portfolio of 10 products.

The expected slide in battery costs will benefit two and three-wheeler EV manufacturers as well.

Dr. Reddy's Gets Approval for Lenalidomide Capsules from USFDA

Dr. Reddy's Lab announced that it has received approval for Lenalidomide capsules from the US Food and Drug Administration (USFDA).

The company announced the final approval of its abbreviated new drug application (ANDA) for Lenalidomide Capsules, in 2.5 mg and 20 mg strengths, and tentative approval for 5 mg, 10 mg, 15 mg, and 25 mg strengths, a therapeutic equivalent generic version of REVLIMID (lenalidomide) capsules, from the USFDA.

With this approval, the company is eligible for 180 days of generic drug exclusivity for Lenalidomide Capsules.

Marc Kikuchi, CEO, North America Generics, Dr Reddy's Laboratories said,

• We are pleased with the agency's approval of Lenalidomide Capsules, 2.5 mg and 20 mg and being eligible for 180-day market exclusivity.
  
  We look forward to bringing a more affordable generic version of this drug to market for the benefit of patients.

In September 2020, Dr Reddy's announced a settlement agreement of their litigation with Celgene, the maker of REVLIMID (lenalidomide) capsules and a wholly-owned subsidiary of Bristol Myers Squibb, relating to patents for the branded drug.

We will keep you posted on more updates from this space. Stay tuned.

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