Tata Steel has informed the exchanges that it has signed a £500 million Grant Funding Agreement with the UK Government. This agreement supports £1.25 billion project to install an Electric Arc Furnace at the Port Talbot steelworks in Wales, UK.
Bharat Electronics (BEL) has received multiple contracts worth Rs 1155 crores. This includes an order worth Rs 850 crore from Cochin Shipyard (CSL) for the supply of indigenous Multi-Function Radar in X Band. This fully indigenous radar designed by DRDO and manufactured by BEL is capable of detecting, acquiring and tracking airborne targets to provide protection to naval ships. Additionally, BEL has secured orders worth Rs 305 crore, which include navigational complex system for ships, thermal imagers, communication equipment, fire control system, gun control system, spares, services, etc.
The government has approved ₹12,461 crore support for 31,350 MW of Hydro power projects. This support is applicable to all hydro projects including pump storage, above 25MW capacity. The support widens to enabling infrastructure such as transmission lines, communication infrastructure, railway sidings, ropeways. The support for projects upto 200MW will be of ₹1 crore/MW and for Projects above 200MW will be of ₹75 lakhs /MW.
As per media sources, the government has extended anti-subsidy duty by imposing countervailing duty between 12% and 30% on the imports of welded stainless-steel pipes and tubes from China and Vietnam for the period of next five years.
The Ministry of Defence (MoD) has given approval to the Indian Navy's plans worth over Rs 2,500 crore to build Extra-Large Unmanned Underwater Vessels (XLUUVs). The underwater vessels would weigh over 100 tonnes and would be equipped with strike capabilities against enemy submarines and surface vessels.
According to a press release, the Cabinet has approved the ₹3,435 crore PM-eBus Sewa-Payment Security Mechanism (PSM) scheme for procurement and operation of e-buses by Public Transport Authorities (PTAs). This scheme will support deployment of more than 38,000 electric buses (e-Buses) over FY25-29E. The scheme will support the operation of e-buses for a period of up to 12 years from the date of deployment. The PSM scheme's provision of an escrow account to ensure timely payments to bus operators can help mitigate the financial risks associated with electric bus deployments.
According to a press release, the Cabinet has approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, allocating ₹10,900 crore over two years to advance adoption of electric mobility in India. This initiative will replace the previous FAME II Scheme and aims to facilitate the adoption of 24.79 lakh electric 2-W, 3.16 lakh electric 3-W and 14,028 electric buses. Subsidies/Demand incentives worth ₹ 3,679 crore have been provided to incentivize e-2Ws, e-3Ws, e-ambulances, e-trucks and other emerging EVs. Additionally, ₹4,391 crore is designated for the procurement of E-buses by state transport undertakings and public transport agencies with preference for new buses procurement against scrapped vehicles. Also, the scheme allocates ₹500 crore each for adoption of e-ambulances and E-trucks. A total of ₹2,000 crore is also earmarked for the installation of 22,100 fast chargers for electric 4-W, 1,800 fast chargers for E-buses and 48,400 fast chargers for electric 2/3-W, ensuring robust infrastructure to support the growing electric vehicle market.
The government has approved ₹12,461 crore support for 31,350 MW of Hydro power projects. This support is applicable to all hydro projects including pump storage, above 25MW capacity. The support for projects upto 200MW will be of 1 crore/MW and for Projects above 200MW will be of 75 lakhs /MW.
Engineers India Limited (EIL) secured new business worth Rs 4,681 crore in the current financial year until August 31, with the company's order book touching Rs 11,350 crore. In FY24, EIL's order inflow reached Rs 3,406 crore. EIL is also foraying in the area of biofuels as it is providing services in the implementation of Assam Biorefinery Private Limited (ABPL), said Shukla. The company is also spearheading initiatives to set up Bio-ATF plants.
Inflation in US slowed for 5th consecutive month in August. CPI on YoY basis increased by 2.5% in August 2024, smallest gain since February 2021 after advancing 2.9% in July 2024. The index for gasoline prices declined in August. Core-CPI which excludes energy and food rose 3.2% in August, lowest since April 2021. CPI on MoM basis increased by 0.2% last month after rising by a similar margin in July. Core CPI on MoM basis increased 0.3% in August after climbing 0.2% in July 2024. Indexes which increased in August include shelter, airline fares, motor vehicle insurance, education, and apparel. The indexes for used cars and trucks, household furnishings and operations, medical care, communication, and recreation were among those that decreased over the month. Shelter prices rose 5.2% from year earlier accounting for over 70% of the total 12 month increase in the all items less food and energy index. Services less energy services index eased to 4.9% in August from 5.9% same month year ago. The energy index declined by 4.0% for the 12 months ending June, and the food index increased 2.1% over the last year. Dollar and Yields recovered yesterday after data showed that inflation in August rose marginally curbing expectations for larger interest rate cut by US Fed. Dollar rose to 101.72, 10-year treasury note edged higher to 3.655% and 2-year treasury yield, which typically moves in step with interest rate expectations increased to 3.646%.
According to media sources, Maruti Suzuki is preparing to launch its first electric vehicle (EV), accompanied by a comprehensive ecosystem designed to address common concerns related to EV ownership, such as charging infrastructure and battery management. It will introduce its first EV, a mid-size SUV model called eVX, at the Bharat mobility show slated for January 2025. The vehicle will have a range of 500 kms. Separately, it also expects that by 2030, 25% of its car sales will come from hybrid vehicles, outpacing electric cars, which are projected to contribute about 15% of total passenger vehicle sales.
L&T Semiconductor Technologies announced a collaboration with US based, IBM for research and development to develop advanced processors. The scope of the collaboration would include processor design for edge devices and hybrid cloud systems, as well as it will extend to areas like mobility, industrial, energy, and servers. The goal of work with IBM would be to harness cutting edge semiconductor design technology and IBM's advanced processors to forge next gen technology products.
The US House of Representatives passed the Biosecure Act, which intends to restrict US Pharma companies from doing business with certain Chinese biotech firms with a grandfathering clause of eight years. The act mentioned names of five Chinese companies- BGI Genomics, MGI Tech, Complete Genomics, WuXi AppTec and Wuxi Biologics for the regulation.
As per media sources, Coal India is planning to invest about ~₹67,000 crores (~$8 billion) in constructing coal-fired power plants near to its coal mines, mainly in Odisha. The company has secured approval of 4.7 gigawatts of generation over the next 6 to 7 years, with an additional 2 gigawatts, which is under the discussion process.
Action Construction Equipment (ACE) has received an order from the Ministry of Defence (MoD) for supply of 99 forklifts.
Greaves Cotton has informed that Ministry of Heavy Industries has approved the registration of two-wheeler models—Nexus, Primus, Magnus, and Zeal of Greaves Electric Mobility Private Limited (‘GEMPL’) making it eligible for the Government of India’s demand incentives under the EMPS Scheme. GEMPL’s three-wheeler business through its subsidiary is already eligible for demand incentives under the EMPS Scheme. With the latest approval, all eligible two-wheeler models are now included, positioning the company to further drive accessible and sustainable mobility across India.
Cochin Shipyard (CSL) has launched two anti-submarine warfare - shallow water crafts (ASW-SWC), INS Mulki and INS Malpe. The company is in process of manufacturing eight ASW-SWC for the Indian Navy. These ASW-SWC ships will be equipped with indigenously developed, state-of-the-art underwater sensors, and are envisaged to undertake anti-submarine operations in coastal waters as well as Low Intensity Maritime Operations (LIMO) and Mine Laying Operations. The ASW SWC ships are 78 m long and displacement is approx 900 tons, with a maximum speed of 25 knots.
Natural rubber prices have declined by ~7% to ₹230/kg from the peak of ~₹250/kg reported in Aug’24. Similarly, brent crude prices are down by >10% from $ 80 levels to present $ 70/barrel levels. This is amidst some tyre companies announcing fresh price hikes (up to 2%) to counter the rising raw material prices.
In a regulatory filing, Mahindra Last Mile Mobility Limited (a subsidiary of M&M), the pioneer in transforming last mile mobility in India with its market-leading e3Ws, has revealed the name of its all-new commercial electric four-wheeler, to be called ‘e-ZEO’. The name ‘e-ZEO’, stands for "Zero Emission Option". The ‘e-ZEO’ will be launched on October 3, 2024.
In a press release, Tata Motors has announced significant price reductions on several of its models, including the Nexon and Harrier, with discounts reaching up to ₹2.05 lakh as part of its festive season promotion. The revised pricing makes the Tata Nexon available starting at ₹7.99 lakh, with potential savings of up to ₹80,000, while the Tata Harrier is priced at ₹14.99 lakh, can benefit from discounts of up to ₹1.6 lakh. These festive offers are available for a limited period till 31st October 2024 on all Cars and SUVs powered by petrol, diesel and CNG.
The GST Council has announced a reduction in tax rates for cancer drugs from 12% to 5%. The cancer drugs include -Trastuzumab, Deruxtecan, Osimertinib and Durvalumab.
As per life insurance council, industry reported healthy growth in business momentum. Industry premium increased 22% YoY for the month of August 2024, while in April to August 2024, the growth was at 20.8% YoY. In terms of APE, private players delivered 9% YoY growth and LIC reported 13% YoY growth led by single premium. Among private players, Max Life and IPru delivered healthy growth at 16.6% and 20%, HDFC Life witnessed rise of 8% YoY, though SBI Life's APE declined by 2%.
LME copper prices have declined by ~17% to ~$8,900 per ton from the peak of ~$11,000 reported in May’24. This was largely on account of LME copper inventories surging to five years high at 3.2 lakh tons. Moreover, LME Aluminium prices have also corrected by ~15% to ~$2,320 per ton from the high of ~$2,700 per ton reported in May’24. On similar lines, LME Zinc prices are down ~12% in the same time frame to $2,700/tonne while Lead prices are down 16% to $ 1,920 levels.
International Iron Ore prices have declined by 18% to ~$87 per ton from a quarterly average of $106 per ton in Q1FY25, primarily due to sluggish demand from Chinese steel industry. Similarly, coking coal prices have also plummeted by nearly 27% to $176 per ton from ~$243 per ton reported in Q1FY25, marking the lowest level since 2021.
According to media reports, the government is considering implementing countervailing taxes and duties on steel imports.
According to media reports, Coal India plans to expand its renewable energy capacity by adding 5 gigawatts (GW) by 2028. As part of its strategy to diversify its green energy portfolio, the company is also exploring the development of pump storage projects in its depleted open-cast mines. Additionally, Coal India is in discussions with various countries to acquire critical mineral assets, including lithium, nickel, cobalt, molybdenum, graphite, phosphates, and potash.
As per FADA data, auto retail volumes in July 2024 came in modest and stood at 18.91 lakh units, up 2.88% on YoY basis. Within categories, 2W sales were up 6.28% YoY at 13.3 lakh units whereas 3W grew 1.63% YoY at 1.05 lakh units. Other segments saw significant setbacks as CV volumes declined by 6% YoY at 73k units and PV sales declined by 4.53% YoY at 3.09 lakh units. Tractor retails came in muted and stood at 65k units, down 11.39% YoY.
Lupin received approval for Mirabegron (used to treat overactive bladder) Extended-Release Tablets,50 mg a generic equivalent of Myrbetriq Extended-Release Tablets,50 mg of Astellas Pharma. Mirabegron Extended-Release Tablets, had estimated annual sales of USD 1,600 million(Rs 13437 crore) in the U.S. (IQVIA MAT July 2024).
Natco plans to invest USD 8 million(Rs 67 crore) in eGenesis, Inc. to acquire 4,06,29,761 shares, eGenesis is a biotech company pioneering in xenotransplantation with focus on developing safe and effective human compatible organs for transplant.
According to media sources, Sona BLW is in talks with Escorts Kubota Limited to acquire Escorts railway business. Earlier in October 2023, it was reported that Knorr-Bremse Group is likely to buy Escorts railway business for over ₹4,000 crores. Media sources also indicate Sonal BLW launching a QIP amounting for ~₹ 2,000 crore for funding this acquisition (board approval taken during Q1FY25 results).
According to media Sources, the government announced that FAME-III scheme will be rolled out in the next two months, replacing the current Electric Mobility Promotion Scheme (EMPS) 2024, which is set to expire at the end of September. Separately, according to media sources, Reliance Industries Ltd. (RIL) has been awarded a 10 GWh Advanced Chemistry Cell (ACC) battery storage capacity under the PLI scheme, with an incentive outlay of ~₹3,620 crore. There are 5 other players who are in the waitlist currently which includes Amara Raja as well. Also, as per media sources, Delhi government has stopped offering road tax waiver on purchase of electric vehicles, which has led to sharp decline in sales of electric vehicles in the state, with effect from 31st August 2024.
The electricity volume alone reached 991.4 crore units marking a 17.1% YoY rise. In the day-ahead market (DAM), volumes increased to 466.6 crore units in August 2024, reflecting a 22.5% YoY growth from 381 crore units in August 2023. The real-time electricity market (RTM) continued its upward trajectory, reaching a record monthly volume of 348.5 crore units , up 27.3% YoY from 273.8 crore units. The market clearing price in the DAM fell by approximately 38% YoY to ₹4.28 per unit, while the real-time market price dropped by 44.8% to ₹3.59 per unit compared to the year-ago period.
Defence Acquisition Council (DAC) has approved 10 capital acquisition proposals worth Rs 1.45 lakh crore. These include procurement of three key platforms/systems for Indian Army (Future Ready Combat Vehicles - FRCV's, Air Defence Fire Control Radars and Forward Repair Team (Tracked) systems. For Indian Coast Guard (ICG), approval has been granted for procurement of Dornier-228 aircrafts, Next Generation Fast Patrol Vessels & Offshore Patrol Vessels. Of the total cost of AoNs, 99% is from indigenous sources under Buy (Indian) and Buy (lndian-Indigenously Designed Developed and Manufactured) categories.
Cipla's Vice Chairman and Non-Executive Director, Mr. MK Hamied has resigned from the company due to age and health reasons. Subsequently, the company has approved the appointments of Mr. Adil Zainulbhai and Mr. Abhijit Joshi as Additional Non-Executive Directors, and Mr. Kamil Hamied as a Non-Executive Director.
As per media sources, government is mulling a proposal to mandate domestic auto OEMs to use 10% of metal used in vehicles sold 20 years ago (end of life vehicles at this point in time) in the present production process. This share will progressively increase to 20% and eventually 30% as scrapping ecosystem gains pace in the country.
Government clears plan to buy Sukhoi jet engines from HAL
Defence Ministry to take up projects worth ~Rs 1.2 lakh crore for approval
Ramkrishna Forgings announces sale of non-core business and new facility for aluminium forgings
NCC has received orders valuing ₹1236 crore (excluding GST) in the month of August 2024. The orders are related to irrigation division and others. These orders are awarded by the state government agencies and does not include any internal orders.
Coal India reported muted volume prints for Aug 2024. Production volume degrew by 12% YoY at 46 million tons (MT) with cumulative production in FY25 on YTD basis reaching to 290 MT (up 3.2% YoY). Similarly, offtake volume stood at 52 MT (down 12% YoY) and 310 MT (flattish YoY), respectively.
As per media sources, the DGTR has recommended imposition of anti-dumping duty on Chinese foils. It has initiated a probe on the imports of aluminium foil upto 80 microns, excluding aluminium foil below 5.5 micron for non-capacitor application from China. The recommended duty ranges between $619 per ton and $873 per ton.
For TVS Motors, total sales volume for the month were up 13.2% YoY to 13.2 lakh units. 2-W sales volume was up 14.1% YoY at 3.78 lakh units. Export volumes were up by 14.2% YoY at 99,976 units. On MoM basis too, volume prints stood healthy.
Zydus has received a Warning Letter issued by the USFDA relating to its Injectables manufacturing facility at Jarod near Vadodara.The Warning Letter summarizes violations with respect to Current Good Manufacturing Practice (cGMP) regulations and does not contain any data integrity related violations.
As per the exchange filing, Maruti Suzuki total sales volume for the month of August 2024 were down 3.9% YoY at 1.81 lakh units. Exports reported steady growth of 5.6% YoY at 26k units. UV volumes witnessed a YoY increase of 6.7% and continued MoM recovery trend with volumes growing 11.3% at 62.7K units.
National Medical Products Administration, China conducted a remote inspection of the Dr. Reddy's formulations manufacturing facility (FTO-3) for Atomoxetine Hydrochloride Capsules, and concluded that the production quality management of Atomoxetine Hydrochloride Capsules does not meet the requirements of China's Good Manufacturing Practice for Drugs and has suspended the import, sale, and use of the Company’s Atomoxetine Hydrochloride Capsules
Biocon has received approval of its ANDA for Sacubitril/Valsartan Tablets for various strengths from USFDA. Sacubitril and valsartan combination is used to treat chronic heart failure in adults to help reduce the risk of death and hospitalization. This medicine is also used to treat paediatric patients over the age of one year.
As per exchange filing, Royal Enfield reported steady performance with volumes for the month coming in at 73,629 units, down 5% YoY, however up 9.5% MoM. Interestingly, product mix continues to improve at the company with >350cc segment reporting higher ever volume print of 12.5k for the month, up healthy 46% YoY and 18% MoM.
As per media sources, HDFC Bank plans to sell up to ₹ 10,000 crore, worth of car loan-backed pass-through certificates to improve credit-deposit ratio (104.5% in Q1FY25) and reduce sector exposure. This move, is first of its kind for the bank in a decade, is expected to offer interest rates between 8.3% and 8.5%. The bank is in discussion with domestic asset managers for this sale.
As per media sources, Bajaj Housing Finance is anticipated to schedule IPO on 9-11 September 2024. Issue size is estimated at ₹6560 crore (lower than earlier ₹7000 crore as per DRHP) consisting of fresh issue of ₹3560 crore and OFS of ₹3000 crore. While pricing of the issue is awaited, ask for ~₹60,000 crore of valuation is expected.
Tata Motors total sales volume for the month was down by 8.1% YoY to 71,693 units, with total CV sales down by 15.2% YoY to 27,207 units. PV sales were also down by 3.2% YoY to 44,486 units.
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