Morning Notes. Domestic Market View. LKP Advisory. 26-Nov-2015

Transcription

1 Morning Notes 26-Nov-2015 Indices 24-Nov 23-Nov % Chg. Major Indices 24-Nov 23-Nov % Chg. FII's & DII's in equity Rs.Crs S&P BSE SENSEX 25,776 25, % CAC 40 Index 4,893 4, % 24-Nov Buy Sell Net S&P CNX NIFTY 7,832 7, % DAX Index 11,170 10, % FII / FPI Investments NIFTY MIDCAP ,129 13, % Dow Jones Industrial A 17,813 17, % DII's Investments NIFTY SMALL 100 5,418 5, % FTSE 100 Index 6,338 6, % FII's contribution to the total turnover 38% Nasdaq Composite Ind 5,116 5, % DII's contribution to the total turnover 17% BSE Sectoral Indices NIFTY REALTY % Major Asian Indices 24-Nov 23-Nov % Chg. FII's in Derivatives Rs.Crs NIFTY ENERGY 8,207 8, % Hong Kong 22,498 22, % 24-Nov Index Fut Index Opt Stock Fut Stock Opt NIFTY FIN SERVICE 6,998 6, % Nikkei ,848 19, % Net NIFTY FMCG 20,184 20, % Korea 2,009 2, % OI NIFTY METAL 1,697 1, % Shanghai 3,648 3, % Chg.OI 9.7% -0.4% 2.9% -6.8% NIFTY CONSUMPTIO 3,541 3, % Taiwan 8,386 8, % FIIs' contribution to the total Derivatives turnover 30% NIFTY BANK 16,989 17, % NIFTY IT 11,057 11, % Commodities (MCX) 24-Nov 23-Nov % Chg. Curr. Derivatives (NSE) 24-Nov 23-Nov % Chg. NIFTY PSU BANK 3,091 3, % Aluminium (30NOV % USDINR 26-NOV % NIFTY PHARMA 11,638 11, % Copper(30NOV2015) % EURINR 26-NOV % NIFTY INFRA 2,729 2, % Crude (18DEC201) 2,876 2, % JPYINR 26-NOV % NIFTY AUTO 8,333 8, % Gold (4DEC2015) 25,289 25, % DJIA (18-DEC-2015) % NIFTY MEDIA 2,376 2, % Silver (4DEC2015) 33,889 33, % S&P500 (18-DEC-2015) % Top Gainers Top Gainers Top Gainers Top Gainers BSE Smallcap BSE Midcap BSE 100 CNX Nifty Company LTP Chg % Chg Company LTP Chg % Chg HINDUNILVR BOSCHLTD Top Losers HDFC ADANIPORTS RELIANCE MARUTI BHARTIARTL GAIL GRASIM LT Company LTP Chg % Chg Company LTP Chg % Chg RCOM BANKINDIA Top Losers GMRINFRA BOSCHLTD DLF SIEMENS RELCAPITAL MARUTI JINDALSTEL ADANIPORTS Company LTP Chg % Chg Company LTP Chg % Chg RCOM EMAMILTD Top Losers MRPL BANKINDIA GMRINFRA CADILAHC RELCAPITAL JSWENERGY JINDALSTEL IDBI Company LTP Chg % Chg Company LTP Chg % Chg GAMMONIND NYSSACORP Top Losers DOLPHINOFF GRANDMA GLOBUSSPR ABGSHIP ESL VIVIDHA LITL GUJNRECOKE CNX Nifty BSE 100 BSE Midcap BSE Smallcap Domestic Market View Markets to make a cautious start of the F&O expiry session The Indian markets had ended marginally in red before going for a day of break. Today, the start of the F&O expiry session is likely to be cautious but mildly in green, traders will be eyeing the winter session of Parliament, which begins today after Prime Minister Narendra Modi striking a conciliatory note at an allparty meeting when he called for a collective effort to make the two Houses function smoothly and ensure passage of important legislations, including the goods and services tax bill. However, there will be some cautiousness too, as the global rating agency Moody s Investors Service has cautioned that a loss of momentum on reforms may hamper investment and prove to be a 'downside factor' for Indian companies, even as it said most corporates will benefit from strong economic fundamentals and accommodative monetary policy. There will be some buzz in the oil & gas sector, as the Petroleum Ministry is talking to the Finance Ministry on reducing the cess that the industry has been seeking since the steep fall in crude prices beginning June Metals and mining stocks too will be in action, on report that the new national mineral exploration policy will be ready by January which will seek to tap the private sector, as in the years to come, mining is expected to be a key industry, attracting huge investments.

2 Domestic Market Overview Benchmarks end choppy session with marginal losses Indian equity benchmarks ended the choppy day of trade with modest cut on Tuesday, as investors remained on sidelines ahead of expiry of November derivative contracts on Thursday. Markets will remain shut tomorrow on account of Gurunanak Jayanti. The cautiousness was also ahead of the start of winter session of Parliament on Thursday, which sets the agenda of the government. NDA's recent reverses in Bihar elections have put a cloud over the pace of reforms, and market participants fear that it won't be smooth sailing in Parliament. Moreover, traders will also eye on development on GST after Parliamentary Affairs Minister Venkaiah Naidu said that the government is reaching out to the Opposition to bring it on board to ensure passage of the Constitution Amendment Bill for GST. A key panel on goods and services tax is likely to recommend a revenue-neutral rate of about 18 per cent. The group, headed by Chief Economic Adviser Arvind Subramanian, has zeroed in on the rate after considering various scenarios, brightening the chances for this important reform as the low rate should be acceptable to everyone. Meanwhile, Minister of State for Finance Jayant Sinha has said that the high-powered committee to suggest revenue neutral GST rate will submit its report in the first week of December. Sentiments also remained dampened on report that foreign portfolio investors (FPIs) sold shares worth a net Rs crore on November 23, 2015, as per provisional data released by the stock exchanges. However, appreciation in rupee helped benchmarks to limit downfall. The rupee recovered from over two-month low by rising 6 paise to against the dollar at the time of equity markets closing at the Interbank Foreign Exchange on fresh selling of the US currency by exporters and banks. Buying in Oil & Gas counters provided some support to the markets after the report that Qatar has agreed to waive USD 1 billion penalty on India for breaking a long-term LNG contract, and has also consented to change the pricing formula. Metal stocks too remained on buyers radar after Finance Minister Arun Jaitley s statement that government is considering proactive steps to improve the health of steel and aluminium sectors which are reeling under the impact of decline in global prices. Global Market Overview Asian markets trade lower in early deals on Wednesday Most of the Asian equity benchmarks are trading down in the early deals on Wednesday, amid heightened geopolitical tensions after Turkey shot down a Russian fighter jet near the Syrian border the previous day, though a rise in commodity prices lifted some resource shares in the region. Meanwhile, the Japanese market declined, amid heightened geopolitical tensions. Additionally, a stronger yen weighed on exporters' stocks. Among the other Asian markets, South Korea, Hong Kong, Singapore and Taiwan are also trading lower. Bucking the trend, Shanghai, Indonesia and Malaysia are up with modest gains. Nikkei 225 declined points or 0.39% to 19,846.61, Hang Seng slipped points or 0.49% to 22,476.36, KOSPI Index dipped 2.14 points or 0.11% to 2,014.15, Straits Times decreased points or 0.91% to 2,896.87, and Taiwan Weighted was down by points or 0.28% to 8, On the flip side, Shanghai Composite surged 5.79 points or 0.16% to 3,621.90, Jakarta Composite added points or 0.61% to 4,573.23, and FTSE Bursa Malaysia KLCI was up by 3.47 points or 0.21% to 1, The US markets made a flat closing in last session, despite some good economic data, as the traders remained on sidelines ahead of the Thanksgiving holiday.

3 Index Futures (OI in '000 Shares) Future Chg Spot Chg Prem / Total Open Interest 24-Nov (%) 24-Nov (%) Disc 24-Nov Chg (%) NIFTY 7, , , CNXIT 11, , BANKNIFTY 17, , , Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares) Symbol Total OI Del Qty Cash Market Prev Increase Spot Fut Spot Fut Prem / 24-Nov % Chg. 24-Nov % Del. % Del. Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc GMRINFRA 237,822 16% 17,957,524 36% 20% 15,880, % 4.9% 0.1 OIL 6,066 14% 612,054 56% 54% 240, % 1.7% 0.3 PTC 13,064 11% 481,040 35% 16% 366, % 1.2% 0.1 HINDPETRO 10,831 10% 315,809 33% 42% 28, % 1.4% 1 RCOM 78,216 10% 3,777,930 16% 19% 3,038, % 9.2% 0.0 IOC 11,702 8% 1,850,703 68% 69% 734, % 1.7% 1.0 ADANIENT 15,108 7% 564,610 14% 17% 67, % 0.5% 0.2 IBULHSGFIN 12,146 6% 1,397,093 49% 35% 202, % 1.9% 1.0 INDIACEM 31,554 6% 1,537,816 30% 25% 1,235, % 4.4% 0.2 JINDALSTEL 43,407 6% 2,073,509 19% 20% 436, % 3.2% 0.1 Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares) Symbol Total OI Del Qty Cash Market Prev Increase in Spot Fut Spot Fut Prem / 24-Nov % Chg. 24-Nov % Del. % Del. Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc BANKINDIA 21,738 16% 1,376,548 31% 26% 866, % -2.9% 0.0 SUNPHARMA 20,115 15% 7,199,363 73% 70% 3,081, % -1.5% 1.9 INFRATEL 1,963 14% 708,344 53% 51% 53, % -1.0% 1.0 BATAINDIA 4,636 9% 166,011 27% 39% 39, % -2.0% UNIONBANK 16,260 7% 378,767 19% 19% 52, % -1.3% -0.2 LT 12,633 7% 825,167 47% 41% 217, % -1.9% 1.4 ACC 1,689 6% 155,537 50% 52% 57, % 0.0% 0.3 COLPAL 2,021 5% 139,467 58% 51% 42, % -1.6% 2.4 SIEMENS 1,244 5% 145,168 38% 24% 89, % -2.3% 1.4 NTPC 22,212 4% 1,228,492 59% 51% 485, % -1.4% 0.3 Open Interest Break-up (Rs. in Cr.) 24-Nov 23-Nov Change in OI % Chg INDEX FUTURES 25,230 25, INDEX OPTIONS 141, , TOTAL INDEX 166, , STOCK FUTURES 67,720 67, STOCK OPTIONS 21,742 21, TOTAL STOCKS 89,462 89, GRAND TOTAL 256, , FII's 155, , Others 100, ,

4 Corporate News Power Finance Corporation s subsidiary - PFC Consulting has transferred its three wholly-owned subsidiaries viz. Sipat Transmission, Chhattisgarh-WR Transmission and Raipur-Rajnandgaon-Warora Transmission to Adani Power. Adani Power won these three transmission projects through a tariff-based competitive bidding process. Idea Cellular has entered into agreement with Videocon Telecommunications for acquiring right to use spectrum of Gujarat and Uttar Pradesh (West) for Rs billion. This agreement for the company s two Leadership telecom circles is for a quantum of 2x5 MHz contiguous blocks of 1800 MHz in each service areas, with right to use spectrum until December, Maruti Suzuki India (MSIL), the largest passenger cars maker in India, will be offering dual airbags and anti-lock braking system (ABS) as an option in all variants of Swift and DZire, including the base variant. Together, Swift and Dzire have handsomely contributed towards enhancing Maruti Suzuki s market share in the Indian passenger vehicle market. The cars are known for contemporary styling, superior comfort, convenience features and performance. By offering driver and co-driver airbags and ABS across all variants of Swift and DZire, the company wants to further strengthen their popularity among customers. Tata Global Beverages has unveiled a new brand under its Tata Tea portfolio - Tata Tea Fusion. After leading the leaf, dust and green tea markets in India for many years, for the first time, Tata Tea is now offering the new and delightful experience of premium black tea through Fusion. Featuring a dual-pouched innovative pack and jar, Tata Tea Fusion is available in two variants - Superior Assam & Green Tea and Superior Assam & Kenyan Tea. It is available in 250g jars priced at Rs 125 per unit & 250g packs at Rs 122 per unit in North and East of India and Rs 115 per unit in West and South. National Aluminium Company (Nalco) has received USD 8.05 million towards an out of court settlement from an US Firm in connection with a case pending in the US Court. Mindtree has been featured in the overall leadership zone by Zinnov, a prominent globalization and market expansion advisory firm, in its recently released Global Service Provider Report The company has established its expertise in this space through a solid innovative culture, mature offerings and industry specialization. Investments in short range wireless technology, engineering development labs and unique client engagement models, have also contributed to the strong rating. National Pharmaceutical Pricing Authority has exempted Wockhardt's three insulin products from price controls for a period of five years with effect from January 8 this year. The Mumbai-based drug firm had applied to the National Pharmaceutical Pricing Authority (NPPA) for non-application of price control provisions of the DPCO 2013 on the three drugs. GRP has signed a joint venture (JV) agreement with Marangoni S.p.a., Italy a leading international company which owns technical knowledge relating to procured retreading process for tyres, to carry on the business of commercial vehicle tyre retreading in India. The total estimated investment will be Rs 2,00,00,000 to be contributed equally by both the partners.this venture will give GRP a strategic advantage to strengthen its raw material collection network and offer entry into the fast growing radial tyre retreading industry Pharma Major Lupin has received final approvals for its Blisovi Fe 1/20 Tablets (Norethindrone Acetate and Ethinyl Estradiol Tablets USP, 1 mg/0.02 mg and Ferrous Fumarate Tablets, 75 mg) and Blisovi 1.5/30 Tablets (Norethindrone Acetate and Ethinyl Estradiol Tablets USP, 1.5 mg/0.03 mg and Ferrous Fumarate Tablets, 75 mg) from the United States Food and Drug Administration (FDA) to market generic versions of Warner Chilcott's Loestrin Fe 1/20 Tablets (Norethindrone Acetate and Ethinyl Estradiol Tablets USP, 1 mg/0.02 mg and Ferrous Fumarate Tablets, 75 mg) and Loestrin Fe 1.5/30 Tablets (Norethindrone Acetate and Ethinyl Estradiol Tablets USP, 1.5 mg/0.03 mg and Ferrous Fumarate Tablets, 75 mg). The company s US subsidiary, Lupin Pharmaceuticals Inc. shall commence promoting the product in the US shortly. Optiemus Infracom has entered into a joint venture (JV) agreement with Wistron Corporation, Taiwan's leading riginal Design Manufacturer (ODM) to set up manufacturing facilities for telecom products in India. Over the next five years, the partners will strategically invest approximately $200 million in best in class infrastructure, technologies and processes to cater to growing Indian

5 and global demands of telecom products viz. smart phones, tablets and smart devices. The JV targets to create over 15,000 employment opportunities in India, over the next five years. BGR Energy has received new order worth Rs 300 crore in the electrical sub-section segment through its Electrical Projects Division. It consists of two substation contracts from state utility Transmission Corporation of Telangana (TSTRANSCO) and an e- BoP contract from National power major NTPC. Mawana Sugars has commenced its crushing operations for the season in all its units viz. Mawana Sugars Works, Naglamal Sugar Complex and Titawi Sugar Complex. Nippon Life Insurance (NLI), a Fortune 500 company and one of the largest life insurers in the world, has signed definitive agreements to increase its stake in Reliance Life Insurance (RLIC), a part of Reliance Capital from the existing 26 percent to 49 percent. The Japanese company will be investing an aggregate value of Rs 2,265 crore ($ 348 million) to acquire an additional 23 percent stake in Reliance Life Insurance to reach a 49 per cent stake. The transaction pegs Reliance Life Insurance s valuation at approximately Rs 10,000 crore, amongst the highest valuations for any Life Insurance company in the country. The proposed stake increase has been approved by boards of both the companies. Tata Motors subsidiary Jaguar Land Rover (JLR) is planning to double the size of its Engine Manufacturing Centre (EMC) as part of a 450m expansion programme. This latest expansion is a clear signal of the company s long-term commitment to Britain. Total investment in the site, which opened a year ago, now stands at 1 billion making it the most significant new automotive manufacturing facility to be built in the UK in the last decade. The EMC is home to the high technology, low emission Ingenium engine - JLR s first venture into in-house engine manufacturing in a generation. In just twelve months, the Midland based facility has moved from prototype production to full-scale manufacture with more than 50,000 engines coming off the production line. Cambridge Technology Enterprises has expanded its presence in India with an office in Chennai. CTE's Chennai office at Mount Road, Royapettah will focus on managed services, sales, and project delivery. This expansion will provide CTE a footprint in the region while tapping fresh and experienced talent in and around the 'innovation hub'. While CTE plans to grow in the domain of cloud and big, this move is sure to benefit at this juncture. Berger Paints India (Berger) and Nippon Paint Automotive Coatings, Japan (NPAU), together with Nippon Paints (India) (NPI) have entered into definitive agreements to transfer certain business including three wheeler and four wheeler (passenger cars and SUV) paint business of Berger and four wheeler (other than commercial vehicles, auto parts and ancillaries) paint business of NPI to BNB Coatings India (BNB) at agreed values. The transferred businesses may include transfer of electro coat business also. The understanding is subject to the parties entering into definitive agreements as regards values and other terms and conditions, after due diligence. BNB Coatings India is a joint venture company where NPAU holds 51% and Berger holds 49% of paid-up capital. BNB is mainly engaged in the business of coatings for plastic substrate of automobiles. Mahindra & Mahindra (M&M), one of India's leading automotive brands with a growing global presence, has reportedly decided to launch the automatic variants of the XUV500 in India on November 25. The XUV500 is expected to use the same six-speed automatic transmission from the Scorpio, with a manual and winter/wet mode. The car will continue to use the same 2.2-litre engine producing 140bhp and 330Nm of torque. Pfizer Inc and Allergan plc have entered into a definitive merger agreement under which Pfizer, a global innovative biopharmaceutical company, will combine with Allergan, a global pharmaceutical company and a leader in a new industry model - Growth Pharma, in a stock transaction currently valued at $ per Allergan share, for a total enterprise value of approximately $160 billion, based on the closing price of Pfizer common stock of $32.18 on November 20, Tata Consultancy Services (TCS) and Gfi Informatique have inked strategic partnership agreement on smart cities to meet the requirements of digital initiatives in public transportation, water, and energy and accelerate the adoption of digital technologies in France's fast-growing and innovative smart cities market.

6 Drug firm Strides Shasun has suspended the production at its API facility at Cuddalore in Tamil Nadu on account of Government orders. The company is working with the authorities to resume operations at the earliest. Videocon Realty & Infrastructure has bought 3.41 lakh shares of ABG Shipyard through open market route. The shares were purchased on an average price of Rs 83 valuing the transaction to Rs 2.83 crore. On the other hand, IL and FS Financial Services has sold 3.43 lakh shares of the company for an average price of Rs 83 through open market route. Hindustan Foods supply agreement with Pepsico India Holdings to produce Kurkure extruded products have been extended up to July 31, In order to reduce its carbon footprint and increase in utilisation of renewable energy, Indian Oil Corporation (IOC) has reportedly decided to set up 1,400 MW solar power systems at its Gujarat Refinery. The solar power systems will be commissioned in A grid-connected 250-kW Solar Power system is already catering to the partial electricity requirement of technical building. In a bid to refinance its bloated debt and reduce interest cost, Tata Steel is reportedly planning to raise at least $1.5 billion. The fund size could go up to as high as $3 billion. The proposed mobilisation will be done through the company's Singapore subsidiary. Apollo Health & Lifestyle (AHLL), a wholly owned subsidiary of Apollo Hospitals Enterprise (AHEL), has signed Memorandum of Understanding (MoU) with Ramsay Sime Darby Healthcare (Ramsay) to offer world class diabetes care to people of Malaysia. As per the MoU, Apollo Health & Lifestyle and Ramsay aim to pool their resources and expertise to provide care to people with diabetes in Malaysia. Max India has received an approval to divest 23% stake in Max Bupa Health Insurance Company (Max Bupa) in favour of Bupa Plc., UK. Bupa will pay Rs 191 crore (as increased by 23% of further capital infusions by shareholders in Max Bupa till the transaction is implemented) to Max India in an all cash transaction, to increase its stake in Max Bupa from 26% to 49%. The board of directors at their meeting held on November 23, 2015 has approved for the same. Infosys Finacle, part of EdgeVerve Systems, a product subsidiary of Infosys, has unveiled a new offering Finacle as a managed service on Oracle Cloud. This offering will enable banks globally to leverage Finacle s industry-leading solution suite, along with other enterprise-class applications hosted on premise or in an external environment, to gain agility and cost efficiencies. Tata Power s 100% subsidiary - Tata Power Solar (TPS), India s largest integrated solar player, has emerged as a leader in solar rooftop solutions for the second consecutive year among EPC contractors, in the recently published India Solar Rooftop Map 2016 report by Bridge to India, a leading Cleantech consulting firm. Real Realty Management Company has received an approval for sale the Windsor Wood project admeasuring 12, square meters with apartment building thereon, area known as Windsor Wood of Revenue Survey No. 37 of Village Jivapar, Surendra Nagar district in Gujarat with all assets & liabilities, through process of slump sale, to Woodcraft Realty LLP, and necessary agreement to sale has been executed. Lanco Infratech s step down subsidiary MW Lanco Anpara Power (LAPL) has received tariff order from Uttar Pradesh Electricity Regulatory Commission (UPERC) to compensate for changes in RFP / PPA conditions in respect of coal supply and power purchase payments. Dion Global, the financial technology firm for capital markets, has official launched its trading solutions in Australia. The company has recently implemented its trading solution at Hartleys Securities. It is targeting tier one and two brokerage firms as well as retail and investment banks. Amid a slowing market for light commercial vehicles (LCVs), Mahindra & Mahindra (M&M) has managed to go past Tata Motors and take the top position. While the domestic LCV market has shrunk over five per cent this year, M&M has been able to gain market share.

7 .Economy Govt to sell PSU stakes when market conditions improve: Jaitley Finance Minister Arun Jaitley has said that the government will sell stake in some state-owned companies, especially those in metals business only when market conditions improve amid concerns that the disinvestment target of Rs 69,500 crore for the current fiscal year may be missed. Jaitley said I have already said there are few stocks, especially metal stocks, which are down globally. Therefore, in such circumstances it would not be appropriate to sells such stocks in the market. For the current financial year, the government has budgeted to raise Rs 69,500 crore through disinvestment, 180 per cent higher than the total amount garnered from PSU share sales in the previous fiscal, though the government has missed its divestment target for five years in a row. Of this, Rs 41,000 crore is to come from minority stake sale in PSUs and the remaining Rs 28,500 crore from strategic stake sale. With eight months of the current fiscal about to be over, the government has been able to sell stake only in four companies -- PFC, REC, Dredging Corp and IOC to net Rs 12,600 crore. For the current fiscal, the government has a pipeline of over 20 PSUs for offloading part stake for which it already has the Cabinet approval which include 10 per cent stake sale each in OIL, Nalco, NMDC, and 5 per cent each in NTPC, ONGC, BHEL. Besides, plans are afloat for 10 per cent stake sale in Coal India. However, volatile market conditions have dented the prospects of a stake sale, with the recent disinvestments of IOC and PFC facing rough weathers. Govt spending key for revival of Indian steel industry: Fitch Global Rating agency, Fitch has said that spending by the Indian government on infrastructure will be the catalyst for any meaningful improvement in domestic steel demand. Fitch in its report titled '2016 Outlook: Indian Steel Sector' has said that spending on infra projects such as housing for all and smart cities is the key for the revival of the Indian steel industry, which faces headwinds like cheap imports. Fitch in its report further highlighted that India's steel consumption to improve marginally by 7-8 per cent in The agency projected that high imports and soft steel prices globally in 2016 are likely to result in continuing profitability pressures for the Indian steel producers. Further, it added that their margins are likely to be lower in 2015 and improve marginally in 2016, supported by improving domestic demand and the imposition of safeguard duty on imports on certain steel products for 200 days,. As of end-september 2015, Indian steel prices had fallen almost a quarter year-on-year in line with global trends. A relatively stronger rupee in 2015 to date; significant import increases and weak steel demand affected steel prices and consequently, profitability of steelmakers. On the other hand, the imposition of a 20 per cent duty on certain steel product imports, effective September 14, has given them some relief, Fitch said. On the global front, the report stated that global steel prices to remain weak in 2016, driven by weak demand and overcapacity in the industry. Govt to consider sectoral intervention to tackle banks bad loan issues: Arun Jaitley Finance Minister Arun Jaitley has said that the government is willing to consider sectoral interventions to stressed sectors such as steel and aluminum at the second-quarter performance review meeting of public sector banks (PSBs). There were discussions on banks that are facing difficulties on loan quality front. Jaitley said Results will not come overnight. The problems of each sector have to be addressed separately. The series of steps announced by the RBI will help improve the asset quality situation. The government on its part has also been taking proactive steps in certain sectors. Expressing confidence, Jaitley said that asset quality of the PSBs would improve considerably in a reasonable time on the back of a series of steps announced by the RBI and being implemented by several banks. Further, he said that part of the problem of the unacceptable level of NPAs could be attributed to the pressures of the past, which need to be removed.

8 Highlighting willful defaulters and banks willingness to take action, Jaitley asserted that PSBs already had the required authority and autonomy to effectively deal with each of their debtors. He further stated that the ability of banks to get failed borrowers to exit will increase if the bankruptcy law gets enacted in Parliament soon Qatar agrees to waive $1 billion penalty on India for breaking a long-term LNG contract In a positive move for the domestic oil & gas sector, after months of intense negotiations RasGas of Qatar has agreed to waive $1 billion penalty on India for breaking a long-term liquefied natural gas (LNG) contract. Besides, RasGas has in-principle agreed to changing the current pricing formula based on a 60-month average of a basket of Japanese crude oil prices to a 3-month average of brent crude. This move will lower cost of LNG to $7-8 per million British thermal unit as compared to $12-13 currently. India's biggest importer of LNG, Petronet LNG, has to pay for buying only 68 per cent of the contracted 7.5 million tons this year. As Petronet was taking only 68 percent of the volumes it agreed to in 25-year contracts with RasGas after a slump in global energy prices led to gas being available in spot or current market a roughly half that rate. The reduced offtake by the buyers forced Petronet to cut its purchase from RasGas Earlier, state-owned GAIL India, Indian Oil Corp (IOC) and Bharat Petroleum Corp (BPCL) have committed to buy all of the 7.5 million tonne a year of LNG that Petronet is to import from Qatar. But with slump in global prices, they have opted to buy gas from spot market rather than use the long-term LNG. This resulted in idling of three cryogenic ships it had chartered hired for ferrying gas in its liquid form at sub-zero temperatures from Qatar to its import terminal at Dahej in Gujarat. According to the current deal negotiated, Petronet will take the quantities it did not take this year during the remainder of the contract period. Government reaching out to the Opposition for GST bill: Venkaiah Naidu Raising hopes for the passage of the much delayed Goods and Services Tax (GST) bill, the Parliamentary Affairs Minister Venkaiah Naidu, just ahead of the start of the winter session of Parliament, has said that the government is reaching out to the Opposition to bring it on board to ensure passage of the Constitution Amendment Bill for GST. Terming GST as the 'need of the hour', Naidu said the 'GST should be passed in the Winter Session of Parliament. The minister added that I am confident (about the passage of GST) as the Parliamentary Affairs Minister. I am already in touch with some of the Opposition parties. We are discussing with them and they have meaningful suggestions... They can also be taken into consideration while adopting the Bill in Parliament. It is being said that with the introduction of GST, India's GDP will rise by per cent. Naidu said that we are seeing that the world market is slowing down, China is going a little negative and India is the most attractive place. Adding that it is a great opportunity for India, he said that we should take the initiative and make Indian economy more strong so that interest rates can come down and you can spend more on welfare and developmental activities.earlier, Minister of State for Finance Jayant Sinha had also said the government was in continuous consultation with the opposition parties on the proposed GST. Source: Reuters, Ace Equity & LKP Research

9 Tech View CNX Nifty Technical View Nifty continued to trade in a narrow range and is expected to trade in range in next few trading sessions. The market breadth has again got weak indicating that Nifty is likely to face pressure at higher levels. Nifty is likely to get influenced by expiration of November series contracts which is likely to bring increased amount of volatility today. The index is expected to open on positive note and may test levels which if held can lead to an intraday rise till levels. Increased weakness is likely to be seen once Nifty trades below 7800 levels. IMPORTANT LEVELS FOR THE DAY Support BSE NSE BANKNIFTY S1 25, S2 25, Resistance R1 25, R2 26, Pivot 25,794 7,838 19,957

10 Tech View PIVOT POINTS Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2 ACC GAIL ADANIENT GLENMARK ADANIPORTS GMRINFRA ADANIPOWER GODREJIND ALBK GRASIM AMBUJACEM HAVELLS ANDHRABANK HCLTECH APOLLOHOSP HDFC APOLLOTYRE HDFCBANK ARVIND HDIL ASHOKLEY HEROMOTOCO ASIANPAINT HEXAWARE AUROPHARMA HINDALCO AXISBANK HINDPETRO BAJAJ-AUTO HINDUNILVR BANKBARODA HINDZINC BANKINDIA IBREALEST BATAINDIA ICICIBANK BHARATFORG IDBI BHARTIARTL IDEA BHEL IDFC BIOCON IFCI BPCL IGL CAIRN INDIACEM CANBK INDUSINDBK CENTURYTEX INFY CESC IOB CIPLA IOC COALINDIA IRB COLPAL ITC CROMPGREAV JINDALSTEL DABUR JISLJALEQS DISHTV JPASSOCIAT DIVISLAB JPPOWER DLF JSWENERGY DRREDDY JSWSTEEL EXIDEIND JUBLFOOD FEDERALBNK JUSTDIAL

11 Tech View Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2 KOTAKBANK TATACHEM KTKBANK TATACOMM L&TFH TATAGLOBAL LICHSGFIN TATAMOTORS LT TATAMTRDVR LUPIN TATAPOWER M&M TATASTEEL M&MFIN TCS MARUTI TECHM MCDOWELL-N TITAN MCLEODRUSS UBL MRF UCOBANK NHPC ULTRACEMCO NMDC UNIONBANK NTPC UNITECH OFSS UPL ONGC VOLTAS ORIENTBANK WIPRO PETRONET YESBANK PFC ZEEL PNB POWERGRID PTC RCOM RECLTD RELCAPITAL RELIANCE RELINFRA RPOWER SAIL SBIN SIEMENS SRTRANSFIN SUNPHARMA SUNTV SYNDIBANK

12 DISCLAIMERS AND DISCLOSURES LKP Sec. ltd. (CIN-U67120MH1994PLC080039, www. Lkpsec.com) and its affiliates are a full-fledged, brokerage and financing group. LKP was established in 1992 and is one of India's leading brokerage and distribution house. LKP is a corporate trading member of Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited(NSE), MCX Stock Exchange Limited (MCX-SX).LKP along with its subsidiaries offers the most comprehensive avenues for investments and is engaged in the businesses including stock broking (Institutional and retail), merchant banking, commodity broking, depository participant, insurance broking and services rendered in connection with distribution of primary market issues and financial products like mutual funds etc. LKP hereby declares that it has not defaulted with any stock exchange nor its activities were suspended by any stock exchange with whom it is registered in last five years. However, SEBI and Stock Exchanges have conducted the routine inspection and based on their observations have issued advice letters or levied minor penalty on LKP for certain operational deviations in ordinary/routine course of business. LKP has not been debarred from doing business by any Stock Exchange / SEBI or any other authorities; nor has its certificate of registration been cancelled by SEBI at any point of time. LKP offers research services to clients. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report. Other disclosures by LKP and its Research Analyst under SEBI (Research Analyst) Regulations, 2014 with reference to the subject company(s) covered in this report-: Research Analyst or his/her relative s financial interest in the subject company. (NO) LKP or its associates may have financial interest in the subject company. LKP or its associates and Research Analyst or his/her relative s does not have any material conflict of interest in the subject company. The research Analyst or research entity (LKP) has not been engaged in market making activity for the subject company. LKP or its associates may have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report. Research Analyst or his/her relatives have actual/beneficial ownership of 1% or more securities of the subject company at the end of the month immediately preceding the date of publication of Research Report: (NO) LKP or its associates may have received any compensation including for investment banking or merchant banking or brokerage services from the subject company in the past 12 months. LKP or its associates may have received compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months. LKP or its associates may have received any compensation or other benefits from the Subject Company or third party in connection with the research report. Subject Company may have been client of LKP or its associates during twelve months preceding the date of distribution of the research report and LKP may have co-managed public offering of securities for the subject company in the past twelve months. Research Analyst has served as officer, director or employee of the subject company: (NO) LKP and/or its affiliates may seek investment banking or other business from the company or companies that are the subject of this material. Our salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to our clients that reflect opinions that are contrary to the opinions expressed herein, and our proprietary trading and investing businesses may make investment decisions that may be inconsistent with the recommendations expressed herein. In reviewing these materials, you should be aware that any or all of the foregoing, among other things, may give rise to real or potential conflicts of interest including but not limited to those stated herein. Additionally, other important information regarding our relationships with the company or companies that are the subject of this material is provided herein. This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject LKP or its group companies to any registration or licensing requirement within such jurisdiction. Specifically, this document does not constitute an offer to or solicitation to any U.S. person for the purchase or sale of any financial instrument or as an official confirmation of any transaction to any U.S. person. Unless otherwise stated, this message should not be construed as official confirmation of any transaction. No part of this document may be distributed in Canada or used by private customers in United Kingdom. All trademarks, service marks and logos used in this report are trademarks or registered trademarks of LKP or its Group Companies. The information contained herein is not intended for publication or distribution or circulation in any manner whatsoever and any unauthorized reading, dissemination, distribution or copying of this communication is prohibited unless otherwise expressly authorized. Please ensure that you have read Risk Disclosure Document for Capital Market and Derivatives Segments as prescribed by Securities and Exchange Board of India before investing in Indian Securities Market. In so far as this report includes current or historic information, it is believed to be reliable, although its accuracy and completeness cannot be guaranteed. All material presented in this report, unless specifically indicated otherwise, is under copyright to LKP. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of LKP LKP Securites Ltd, 13th Floor, Raheja Center, Free Press Road, Nariman Point, Mumbai Tel Fax