30 nov

NewsWala aaya, taaza khabre laya! Good morning!
 

MARKETS

Markets: Sensex and Nifty 50 played the stock market game well on Wednesday, taking a joy ride fueled by banks, IT, and auto stocks. IREDA made a fab debut and climbed up to hit the upper circuit.

BUSINESS

Aurobindo Pharma Secures USFDA Nod for HIV Drug

What happened 

Aurobindo Pharma, based in Hyderabad, has received the green light from the US Food and Drug Administration (USFDA) to produce and market Darunavir tablets in strengths of 600 mg and 800 mg. This medication is a generic treatment for human immunodeficiency virus (HIV-1) infection. The approval positions Aurobindo Pharma to launch its therapeutically equivalent product, which mirrors Janssen Products' reference-listed drug (RLD), Prezista tablets.

Why it matters: A Boost in HIV Treatment Options

This USFDA approval opens avenues for Aurobindo Pharma to contribute significantly to HIV treatment. Darunavir tablets, in combination with other antiretroviral agents, cater to both adult and pediatric patients aged three and older. 

• The product's market potential is substantial, with an estimated size of $274.8 million for the 12 months ending October 2023.

• In a broader context, Aurobindo Pharma's achievement is part of a larger portfolio, marking its 500th Abbreviated New Drug Application (ANDA) approval from the USFDA. 

Aurobindo's expansion into the HIV treatment space enhances the range of available therapeutic options.

Zoom out

Aurobindo Pharma's latest USFDA approval is a significant milestone, allowing the company to make inroads into the competitive landscape of HIV treatment. It solidifies the company’s position as a key player in the global pharmaceutical arena, contributing to the accessibility and affordability of crucial medications.

BIG MONEY MOVES

Bharti Telecom plans record-breaking $961 million bond issuance

Bharti Telecom is aiming to raise up to $961 million in the local bond market. The company plans to issue two-, three-, and five-year notes, marking its largest-ever rupee issuance if successful. This move coincides with Bharti Airtel, its subsidiary and India's second-largest wireless carrier, rolling out 5G services nationwide, intensifying competition with rival Reliance Jio.

Karnataka Approves Rs 3,607 Crore Industrial Boost

The Karnataka government greenlights 62 industrial investment proposals valued at Rs 3,607.19 crore, set to generate 10,755 jobs within the state. Notably, eight proposals, each exceeding Rs 50 crore, account for Rs 2,088.44 crore and could create 6,360 jobs. Key investors include Texcon Steels, Hundri Sugars, Bren Life Sciences, and Qualcomm India.

BUSINESS

GST to be Simplified for the Service Economy

What happened

In a move aimed at untangling the tax web for service industries like e-commerce and travel, the central government is exploring avenues to streamline the Goods and Services Tax (GST) regime. Authorities are considering potential modifications to the GST law, either through an additional clause or an adjustment to its definition, tailored to the distinct nature of these industries.

This initiative stems from a crackdown earlier in the year by the Central Board of Indirect Taxes and Customs (CBIC) on fake GST registrations

Why it matters

The current GST law mandates a definite physical business presence in brick-and-mortar form. However, the virtual nature of many businesses in the service sector, including travel booking firms, poses a unique challenge. The dilemma arises as the services sector, with its common work areas and virtual offices, challenges the traditional requirement of a fixed physical space.

With the surge in work-from-home practices, the government is striving to tailor GST solutions to accommodate these evolving business structures.  

• Under the existing GST framework, a physical address is compulsory for audits and verifications.

• The potential modifications under consideration include a simplified regime or a reverse charge mechanism for these sectors. 

• The objective is twofold: to ensure that taxation seamlessly integrates into their business processes and to facilitate easier participation in the tax compliance and enforcement landscape.

Zoom out

The ongoing examination and consideration of suggestions highlight the commitment to crafting a GST framework that caters to the unique dynamics of the service industry, paving the way for simplified tax compliance and enforcement in the virtual frontier.

FYI: GST contributes to 23.8% of the union government's total tax revenue.

BIG PICTURE

💳️ Apple set to terminate its credit-card collaboration with Goldman Sachs

Apple is reportedly ending its credit card partnership with Goldman Sachs, with a proposal to exit in the next 12 to 15 months. The tech giant and Goldman had introduced a virtual credit card in 2019, encompassing their entire consumer partnership. Apple emphasized its focus on customer experience, citing the success of the Apple Card. The exit includes the savings account launched this year.

💹 US Bonds Set for Historic Month: Best Since 1985

US bonds had their most impressive monthly surge in nearly four decades, with the Bloomberg US Aggregate Bond index surging 4.3% in November. This marks the index's best performance since 1985. The rally, driven by optimism for Federal Reserve rate cuts in 2024, has turned the benchmark's total returns positive for the year, avoiding a potential three-year loss streak.

BUSINESS

ICICI Bank Cleared for ICICI Securities Delisting

What happened

ICICI Bank has received the green light from both the National Stock Exchange (NSE) and the Bombay Stock Exchange to delist ICICI Securities, a move marking a significant step in reshaping their subsidiary dynamics. The bank shared that it obtained 'No Objection' letters from the NSE on November 28 and from BSE on November 29. This follows ICICI Bank's prior approval from the Reserve Bank of India (RBI) on November 9, allowing it to secure full ownership of ICICI Securities.

Why it matters

The approval to delist ICICI Securities comes after the RBI's nod to ICICI Bank to establish complete ownership of its subsidiary. 

• This move, initiated on June 29, showcases ICICI Bank's strategic shift as it aims to make ICICI Securities a wholly-owned subsidiary. 

• The decision to delist is underlined by ICICI Securities being a low capital-consuming business with ample internal accruals for sustainable growth. 

• This strategic move is expected to streamline operations and enhance the bank's control over its subsidiary.

Zoom out

ICICI Bank's successful pursuit of delisting ICICI Securities reflects a pivotal moment in their subsidiary relationship. The recent financial report from ICICI Securities, boasting a 41% surge in net profit for Q2FY24, further strengthens the bank's position in this move. As ICICI Bank takes the driver's seat in its subsidiary's destiny, eyes are keenly set on how this transformative step will unfold.

MIRCH MASALA

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