—>Bombay high court has approved the demerger of Consumer business from Consolidated business of Crompton Greaves. – Positive for Crompton Greaves
—>Inox Leisure starts commercial operations of Multiplex Cinema Theatres, taken on Lease basis, and located at Thrissur and Meerut – Positive for the company
Inox Leisure has commenced the commercial operations of Multiplex Cinema Theatres in two locations i.e Sobha City Mall, Thrissur and PVS Mall, Meerut, with effective from December 31, 2015. The Multiplex Cinema Theatre, Thrissur has 6 screens and 1368 seats and the Multiplex Cinema Theatre, Merrut has 3 screens and 1012 seats.
—>Cadila has received a Warning Letter issued by the US FDA relating to its Moraiya formulation facility and Ahmedabad API facility (Zyfine) – Negative; do not bottomfish at lower levels; will review the TP and reco post more clarity on contents of warning letter and the impact on its financials
—>Godrej Consumer Products, Torrent Phrama, Concor and Jet Airways are included in F&O segment with effect from January, 1st 2016 – positive for respective stocks
—>BSE group re-balancing – companies shifted from B group to A group are Pfizer Kansai Nerolac, Blue Dart, Repco Home and Chola Investments & Finance
—>USFDA grants Aurobindo tentative approval for Angiomax injectable, an anticoagulant drug – Positive fof Aurobindo Pharma
—>Madhya Pradesh bans more than 15 year old commercial vehicles; other states expected to follow suit – positive for CV manufacturers like Tata Motors and Ashok Leyland
As per media reports, the Madhya Pradesh (MP) government has banned more than 15 year old commercial vehicles from plying on the state roads. The decision has been taken to counter the increase in pollution. There will be no new permits or fitness certificates for the old vehicles. View: Madhya Pradesh is the second region after NCR to put a restriction on plying of old commercial vehicles. We expect other states to follow suit considering the renewed focus on controlling pollution. The move will increase demand for replacement from fleet operators and is positive for CV manufacturers such as Tata Motors and Ashok Leyland.
—>Bharat Electronics set to get a boost from Defence systems upgrade plan
Bharat Electronics Ltd (BEL), one of the largest Defence electronics equipment manufacturer, is all set to be a key beneficiary of the Centre’s increasing thrust on the replacement and modernisation of military hardware in the country. Currently, the company has a 60% share in the Defence electronics segment. But over the last few years, the business model of BEL has witnessed a shift from being a pure product supplier to a system integrator. New orders have been placed with the company for entire systems rather than separate products, as was being done earlier, said sources, adding that the Akash air Defence missile system, a medium range, surface-to-air missile, was one such example, as was the company’s Battlefield Surveillance Radar, and Advanced Gun Fire Control Systems. BEL has not only maintained a consistent policy of R&D investments but also has launched collaborative R&D with private small and medium-size firms in the country. On an average, 80 per cent of BEL’s sales turnover is from indigenous R&D every year.
—>Solar power – CCEA approved higher budget for grid connected solar rooftop system (during market hours) – positive read thru for solar power players i.e. Swelect Energy and Ujaas Energy
The Cabinet Committee on Economic Affairs has approved an increase in the budget for implementation of grid connected solar rooftop systems under National Solar Mission from Rs 600 crore to Rs 5,000 crore by 2019-20. This will support Installation of 4,200 megawatt peak (MWp) solar rooftop systems in the country in the next five years. A capital subsidy of 30% will be provided for general category states and union territories, and 70% for special category states. However, there will be no subsidy for private commercial and industrial establishments since these entities are eligible for other benefits such as accelerated depreciation, customs duty concessions, excise duty exemptions and tax holiday, etc.