Morning Notes. Domestic Market View. LKP Advisory. 21-Dec-2015

Transcription

1 Morning Notes 21-Dec-2015 Indices 18-Dec 17-Dec % Chg. Major Indices 18-Dec 17-Dec % Chg. FII's & DII's in equity Rs.Crs S&P BSE SENSEX 25,519 25, % CAC 40 Index 4,625 4, % 18-Dec Buy Sell Net S&P CNX NIFTY 7,762 7, % DAX Index 10,608 10, % FII / FPI Investments NIFTY MIDCAP ,178 13, % Dow Jones Industrial A 17,129 17, % DII's Investments NIFTY SMALL 100 5,489 5, % FTSE 100 Index 6,052 6, % FII's contribution to the total turnover 54% Nasdaq Composite Ind 4,923 5, % DII's contribution to the total turnover 16% BSE Sectoral Indices NIFTY REALTY % Major Asian Indices 18-Dec 17-Dec % Chg. FII's in Derivatives Rs.Crs NIFTY INFRA 2,677 2, % Hong Kong 21,756 21, % 18-Dec Index Fut Index Opt Stock Fut Stock Opt NIFTY MEDIA 2,492 2, % Nikkei ,987 19, % Net NIFTY CONSUMPTIO 3,523 3, % Korea 1,975 1, % OI NIFTY FMCG 19,813 19, % Shanghai 3,579 3, % Chg.OI 1.4% -5.4% 0.8% 4.1% NIFTY AUTO 8,079 8, % Taiwan 8,257 8, % FIIs' contribution to the total Derivatives turnover 22% NIFTY BANK 16,594 16, % NIFTY PHARMA 11,664 11, % Commodities (MCX) 18-Dec 17-Dec % Chg. Curr. Derivatives (NSE) 18-Dec 17-Dec % Chg. NIFTY FIN SERVICE 6,891 6, % Aluminium (31DEC % USDINR 29-DEC % NIFTY ENERGY 8,278 8, % Copper(29FEB2016) % EURINR 29-DEC % NIFTY PSU BANK 2,904 2, % Crude (19FEB2016) 2,508 2, % JPYINR 29-DEC % NIFTY METAL 1,773 1, % Gold (05FEB2016) 25,082 24, % DJIA (18-DEC-2015) % NIFTY IT 11,123 11, % Silver (4MAR2016) 33,933 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 ADANIPORTS VEDL Top Losers IDEA ULTRACEMCO POWERGRID BAJAJ-AUTO ASIANPAINT SBIN AMBUJACEM INFY Company LTP Chg % Chg Company LTP Chg % Chg TITAN NESTLEIND Top Losers SRTRANSFIN VEDL GLENMARK ABB IDBI HINDZINC UBL ULTRACEMCO Company LTP Chg % Chg Company LTP Chg % Chg BERGEPAINT ABB Top Losers BAJAJHLDNG ALSTOMT&D SJVN EMAMILTD BEL GMRINFRA OBEROIRLTY PAGEIND Company LTP Chg % Chg Company LTP Chg % Chg SMSPHARMA CASTEXTECH Top Losers SAREGAMA GODFRYPHLP MTEDUCARE ALOKTEXT ORIENTBELL THEBYKE NEULANDLAB TAKE CNX Nifty BSE 100 BSE Midcap BSE Smallcap Domestic Market View Markets to make a soft start on weak global cues Indian markets went through heavy profit taking in the last session, with benchmarks witnessing cut of over a percent. Today, the start of the holiday truncated week is likely to be weak and the markets will be extending their decline tailing sluggish global cues, Nifty is likely to slip below 7750 levels in very early deals. Traders will also continue to react negatively to the mid-year economic analysis, which has forecast GDP growth of per cent this fiscal, against per cent growth projected in February this year. Also, a private report has stated that inflationary pressures are likely to see an uptrend largely due to the deficit monsoon and weakening of rupee, while WPI is expected to be in the range of (-)1.10 percent to (-) 0.90 percent in December. However, some recovery too can be expected, as after the truce in Parliament, the government is hopeful about a substantial portion of pending legislative business being completed in the remaining three days of the Winter Session, where 18 bills are pending. There will be some buzz in the infra stocks, as SEBI has said that in the case of initial public offerings, qualified institutional buyers can invest only up to 75 per cent in Infrastructure Investment Trusts (InvITs). Aviation stocks too will be in action on report that domestic airlines flew lakh passengers in November this year recording a per cent increase over the lakh passengers carried during the same period in the previous year.

2 Domestic Market Overview Benchmarks edge lower as Govt prunes FY16 growth forecast Friday turned out to be a disappointing session for the Indian equity indices which got pounded by over a percentage point as investors sold stocks across sectors amid feeble global cues. After a negative opening, the domestic bourses never looked in recovery mood and breached their crucial support levels of 25,600 (Sensex) and 7,800 (Nifty). Traders overlooked the Finance Ministry s statement that India is well prepared to deal with the impact of the US Federal Reserve interest rate hike and the end of uncertainties will actually help policy makers in emerging economies. Selling got accelerated with government lowering FY16 GDP growth forecast lower to 7-7.5% from 8-8.1% earlier. Also, the government at its mid-year economic review forecasted consumer price inflation of 6% for FY16 adding that the economy had made progress but challenges remained. It also promised to hold fiscal deficit at 3.9% of total GDP, while projecting a revenue deficit of 2.8% for FY16. It cautioned that it would reassess commitment to cut fiscal deficit by 0.4% by FY2017. It also warned that the proposed wage hike for central government employees by the Seventh Pay Commission could adversely impact the fiscal deficit. Selling was both brutal and wide-based as most sectoral indices on BSE ended in red. Counters which featured in the list of worst performers included software, technology and energy. Depreciation in Indian rupee too weighed down sentiments. Rupee was trading at per dollar at the time of equity markets closing compared with its previous close of Shares of IT companies finished weak after the US Congress doubled a special fee on the popular H-1B and L-1 visas raising it up to $4,500 to fund a 9/11 healthcare act and biometric tracking system that will hit Indian IT companies. Global Market Overview Asian markets end lower on Friday Asian equity markets closed in red on Friday after Wall Street suffered a setback overnight and fresh signs of inventory buildup put further downward pressure on the already low prices. While positive home price data from China spurred some buying interest, the recovery quickly petered out following the Bank of Japan's policy decision. China's home prices rose 0.9 percent in November, up from the previous month's reading of 0.1 percent, signaling further stabilization in the country's housing markets. Japanese shares ended a choppy session lower after the Bank of Japan tweaked its bondbuying program. While keeping its main target for monetary stimulus unchanged at an annual pace of about 80 trillion yen, the Bank of Japan expanded the quantitative easing program to include exchange traded funds (ETFs). US markets slip for second straight day The US markets closed lower on Friday, ending the week with losses amid fears that collapsing oil prices might impact banks with exposure to highly-leveraged energy companies. The Dow Jones Industrial Average dropped by 2.1%, its largest one-day drop since September 1, to close out a historic week in which the Federal Reserve raised interest rates for the first time in nearly 10 years. Although the move was meant to represent a vote of confidence by the central bank in the US economy, the attempt to get the monetary policy back on normal footing. On the economy front, the index of US leading economic indicators increased in November, buoyed by more home construction permits and higher stock prices. The Conference Board s measure of the economic outlook for the next three to six months rose 0.4 percent after climbing 0.6 percent in October. Five of the 10 indicators of the composite gauge advanced. They also included a favorable interest-rate spread and pickup in consumer goods orders. The LEI is comprised of 10 components including manufacturer' new orders, stock prices, and average weekly initial claims for unemployment insurance.

3 Index Futures (OI in '000 Shares) Future Chg Spot Chg Prem / Total Open Interest 18-Dec (%) 18-Dec (%) Disc 18-Dec Chg (%) NIFTY 7, , , CNXIT 11, , BANKNIFTY 16, , , 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 / 18-Dec % Chg. 18-Dec % Del. % Del. Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc APOLLOHOSP 805 7% 238,897 54% 41% 89, % 1.6% -1.1 DIVISLAB 2,529 5% 288,154 63% 75% 3, % 1.6% 5.2 BANKINDIA 25,641 4% 618,164 17% 18% 200, % 0.0% 0.2 CAIRN 10,266 3% 929,714 41% 30% 325, % 0.2% 0 INDIACEM 32,568 3% 651,756 30% 28% 31, % 1.4% 0 RPOWER 57,288 3% 3,723,749 33% 31% 1,200, % 1.2% 0.3 ORIENTBANK 10,086 3% 589,688 17% 18% 214, % 2.0% 0.3 NTPC 20,568 2% 4,773,397 77% 73% 1,166, % 0.3% 0.6 BEL 2,279 2% 510,076 52% 63% 306, % 2.3% 4.4 RCOM 81,480 2% 2,309,420 19% 13% 769, % 0.4% 0.3 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 / 18-Dec % Chg. 18-Dec % Del. % Del. Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc AJANTPHARM 894 9% 103,661 44% 42% 17, % -1.8% 6.1 AMARAJABAT 1,253 9% 356,649 60% 66% 52, % -0.2% 3.4 SBIN 78,558 8% 10,489,280 52% 38% 4,282, % -1.8% 1.1 PNB 34,244 7% 2,960,814 38% 40% 142, % -0.5% 0.4 CANBK 15,762 5% 419,294 19% 21% 102, % -0.2% 0.3 ITC 27,736 5% 7,612,607 80% 67% 3,699, % -1.0% 1.3 NMDC 19,990 4% 908,104 39% 35% 33, % -2.3% -0.5 MOTHERSUMI 10,401 3% 1,424,045 50% 34% 742, % -0.3% 0.9 BOSCHLTD 121 3% 318,340 21% 27% 40, % -0.6% 68.1 BIOCON 2,531 3% 428,893 27% 30% 27, % -0.5% 1.6 Open Interest Break-up (Rs. in Cr.) 18-Dec 17-Dec Change in OI % Chg INDEX FUTURES 20,021 20, INDEX OPTIONS 134, , TOTAL INDEX 154, , STOCK FUTURES 66,707 66, STOCK OPTIONS 20,105 19, TOTAL STOCKS 86,813 86, GRAND TOTAL 241, , FII's 144, , Others 97,442 94,

4 Corporate News Sun Pharmaceutical Industries has received a warning letter from the United States Food and Drug Administration (USFDA) over violation of manufacturing norms in its facility at Halol in Gujarat. The warning letter follows inspection of the facility in September 2014 by USFDA inspectors. The company has responded to the US FDA inspection observations with a robust remediation process that is still on-going, with significant investments in automation and training to enhance its quality systems. The company has been working with external consultants to ensure its remediation activities have been completed in an appropriate manner. Manappuram Finance will purchase 100% equity shares of Manappuram Insurance Brokers pursuant to approval received from Insurance Regulatory and Development Authority (IRDA). The regulator has given its approval to Manappuram Insurance Brokers for change in share holding pattern through its letter dated December 18,2015. Tata Power Company's subsidiary, Maithon Power's power plant has been able to commence 150 MW supply to Kerala with immediate effect, while the balance 900 MW was already being supplied on long term basis. Therefore, with this, the entire 1050 MW is now being supplied to procurers on long term PPA basis. Havells India, electrical goods makers, will start manufacturing small domestic appliances from January The company will make appliances like mixer grinder, juicer mixer grinder, electric iron and induction cook top. Dr. Reddy s Laboratories will expand its Community Health Intervention Programme (CHIP) to a larger region of Vizianagaram District of Andhra Pradesh. CHIP was launched in 2013 in partnership with Neonatal Intensive Care and Emergencies (NICE) Foundation and since then has improved access to primary healthcare, with special focus on reducing the mortality rate of infants and children in more than 54 villages of Ranastalam Mandal of Srikakulam district. Gujarat State Petronet (GSPL) along with other promoters of Sabarmati Gas (SGL) has entered in to the share purchase agreement with the financial investors of Sabarmati Gas and SGL, wherein, GSPL has agreed to purchase 27,43,070 number of equity shares having face value of Rs 10 each (constituting 13.71% of the total paid-up equity share capital of SGL) from the financial investors of SGL. Videocon Telecom, part of the diversified Videocon Group, has lost 75,770 mobile subscribers in November, Consequently, the company s total subscriber count stood at lakh with a market share of 1.04%. Mahanagar Telephone Nigam (MTNL), the state owned telecom firm which operates in Delhi and Mumbai, has added 4,211 mobile subscribers in November, Following the addition, the company s total subscriber count stood at lakh with a market share of 0.47%. Idea Cellular, one of the biggest cellular carrier of the country, has added lakh new mobile subscribers in November, Following the addition, the company s total subscriber count stood at crore with a market share of 22.78%. Bharti Airtel, a leading global telecommunications company with operations in 20 countries across Asia and Africa, has added lakh users in November, Following this, the company s total customer base has increased to crore with a market share of 32.14%. MBL Infrastructures (MBL) has been awarded the Project of 'Rehabilitation and upgradation' from Jabalpur to Hiran River Section of NH-12 (New NH No. 45) to four -lanes with payed shoulders configuration from km to km (design length kms) in the state of Madhya Pradesh under NHDP- Ill through Engineering, Procurement & Construction (EPC) Basis Contract for the contract price of Rs crore from Ministry of Road Transport & Highways. The execution period of the project is 24 months from the appointed date. Diamond Power Infrastructure has received an order for supply of 1981 kms from Power Grid Corporation of India for conductor package LSCD13 Transmission line associated with North East, Northern/western interconnection 400 KV DC Kameng-

5 Bongaigaon Transmission line and for Lower Sub Ansari Package. With this the outstanding order book position of the company stands at Rs 1933 crore. Duke Offshore has secured a contract to provide 10 high speed boats and been appointed as the official vendor for the same by the DEO (Ministry of Defence) for the Indian Navy s International fleet review to be held in india. The IFR is the largest ever tone held in India till date and will be attended by numerous foreign Navies of the world. Mahindra & Mahindra (M&M), India's leading SUV manufacturer, has revealed its much awaited compact SUV codenamed S101, calling it the Mahindra KUV100 (pronounced as KUV 1 double Oh'). The company also unveiled an all new, world-class engine family named mfalcon, marking its entry into the ground up petrol space. Conceptualized and developed with the aim of creating an entirely new category, the KUV100 is a compact SUV where 'K' stands for the 'kool' & trendy generation of youth, while UV represents an SUV. The numeric '100' represents the pecking order of the series which comes in below TUV300 and XUV500. With its aggressive styling and dominating SUV stance, the KUV100 remains true to the tough and rugged Mahindra DNA. Strengthening its operations in key international markets including Europe and North America, NIIT has established a new facility in Bergen, Norway to expand near-shore multi-lingual delivery capability and further invest in the rapid growth of its business in Europe. Strides Shasun has launched a share sale to raise funds up to Rs 1,500 crore ($225.7 million). The company is selling shares at Rs 1,278 apiece in the transaction, which comprises a base deal for Rs 1,000 crore with an upsize option of Rs 5 crore. Axis and Jefferies are the bookrunners for the deal. Syndicate Bank has issued unsecured redeemable non-convertible Basel III Compliant 10 year Tier II Bonds in the nature of debentures (Bonds) for inclusion in Tier II Capital aggregating to Rs 750 crore. The issue is fully subscribed. Reliance Capital Trustee Company has bought 1.85 per cent stake, valued at over Rs 21 crore at the current market prices, in GIC Housing Finance. Following the acquisition, Reliance Capital Trustee, which held 6.01 per cent in the company earlier, now holds 7.87 per cent in GIC Housing Finance. OK Play India has developed a plastic body Green E-Rickshaw. The company intends to launch its innovative range of new product line In Ev Expo -- an exhibition focusing on E-Rickshaw, to be held on 24th, 25th, 26th and 27th December, 2015 at Pragati Maidan, New Delhi. SimbaNET, a member of Wananchi Group and a leading provider of internet connectivity to businesses in Eastern Africa will collaborate with Tata Communications to provide a portfolio of technology and communication solutions for enterprises' growing ICT requirements in East Africa. In order to achieve a production target of a billion tonnes by 2020, Coal India (CIL), the world s largest coal miner by output, has reportedly tied up with Indian Council of Forest Research and Education (ICFRE) as well as National Energy Research Institute (NERI) to find ways and means of producing coal through measures that would be beyond the mandatory environment norms. Further, the company is committed to set up at least 1,000 MW of solar power generation plants in various states to compensate for greenhouse effects. Mindtree, a leading digital transformation and technology services company, has launched its Loss Control Platform -- a cloudbased solution for transforming the underwriting and risk assessment process for insurers and risk management companies. The solution will enable insurance companies to reduce business exposure due to more optimized risk selection and lower claim incidences. Housing Development Finance Corporation (HDFC) and the ERGO Insurance Group, Dusseldorf, Germany (ERGO) have agreed the terms under which ERGO would increase its stake in HDFC ERGO General Insurance Company (HDFC ERGO). Under the shareholders agreement between HDFC and ERGO, ERGO had the right to increase its shareholding from 26% in HDFC ERGO as and when laws permitted such increase.

6 Vedanta s arm Sesa Goa may suspend iron ore mining in Goa as it is facing dispute with truck operators. If mining is suspended, this will be a huge set back to the mining operations in the state that had resumed only in August this year after Supreme Court lifted its 2012 ban. RPP Infra Projects has received its first maiden order from the state of Madhya Pradesh for strengthening of Amarpatan Rampur Road Length Km worth Rs 35.1 crore. The work is to be completed within 20 Months. Tata Power Company and renewable energy firm Gamesa India have entered into a pact for a 100 MW wind turbine project in Andhra Pradesh. The 100 MW turnkey project will entail the supply, erection and commissioning of 50 units of wind turbines in Andhra Pradesh by May Gamesa is further contracted to offer long term operations and maintenance agreement to ensure smooth functioning of the wind farm. Heritage Foods has received its board s approval for setting up of a 2.1 megawatts wind power project in Andhra Pradesh for captive consumption. The board has appointed Suzlon Energy as a turnkey contractor for setting up the wind power plant. Maruti Suzuki has received its shareholders approval for entering into a contract manufacturing agreement with Suzuki Motor Gujarat for the production and sale of vehicles. The company s shareholders have also approved a lease deed for leasing land for purposes of implementing the contract manufacturing agreement. Tata Motors subsidiary Jaguar Land Rover (JLR) has launched its innovative new smartphone integration platform, InControlTM Apps, which has been developed in conjunction with Bosch. The InControlTM Apps platform transfers the interface from the phone to the in-car infotainment touchscreen, to allow users access to popular apps, thus significantly enhancing user experience. Jaguar Land Rover and Bosch have worked closely with leading third party app developers, specifically in India, to enable access to an initial suite of Android and ios compatible applications. The India-customised platform will allow access to popular apps in India like NDTV, Hungama, MapmyIndia and Zomato. InControlTMApps platform is now available on 2016 Model Year Range Rover, Range Rover Sport, and Discovery Sport and will be rolled out on other Jaguar and Land Rover vehicles subsequently. Jyoti has won the prestigious order worth Rs 139 crore from DRN Infrastructure, Hubli, Karnataka for design, manufacturing, supply, erection, testing and commissioning of 5 Nos. Metallic Volute Pumps along with allied Mechanical, electrical and instrumentation equipment, 220 KV Sub-Station, Tools-Tackles, Spares for TubchiBableshwar Lift Irrigation Scheme under Karnataka Neeravari Nigam. Stone India has signed an agreement with Shenyang Brilliant Elevator Group Company, China, on December 15, 2015 for forming a Joint Venture Company (JVC) to undertake the business of manufacture and sell of Elevators in India with their technology. Asahi Songwon Colors has resumed production at its CPC Blue plant located at Padra, Vadodara district in state of Gujarat with effect from December 15, 2015 after planned partial shutdown. Gujarat Gas (GGL) has executed a gas purchase contract for Regasified LNG with Gujarat State Petroleum Corporation (GSPC). This shall effectively enable GGL to purchase 0.50 mmscmd additional Regasified LNG on long term basis valid up to July 01, MRSS India, the country s first and only listed market research company, has been selected by the Times Group, India s largest media conglomerate as its research partner for 3 projects - Times Architect Study, Times Tech Study and Times Best Brands. Tata Consultancy Services (TCS) has been recognized as a leader in life sciences - clinical and R&D IT services providers by leading advisory and research firm, Everest Group, in its report, Life Sciences - Clinical and R&D IT Service Providers with PEAK Matrix Assessment MT Educare (MTEL) has launched its Robomate+ App in co-ordination with Global Education Trust (GET) its CSR partner. The Robomate+ App can be downloaded from Google play store. The App currently works on all Android platforms.

7 .Economy Government ups threshold for appeals in service tax, customs cases With an aim to reduce litigations from indirect taxes, the government has raised the threshold limit for filing appeals before Customs Excise and Service Tax Appellate Tribunal (CESTAT) and High Courts to Rs 10 lakh and Rs 15 lakh, respectively. Besides, there will be withdrawal of all cases in High Courts and CESTAT where there is precedent Supreme Court decision, against which no review contemplated. A slew of measures were taken to enable effective and speedy dispute resolution and to facilitate the trade and industry. Finance Ministry said that the Central Board of Excise and Customs (CBEC) has taken a number of initiatives to facilitate trade and resolve disputes. The Finance Ministry further said that pre show cause notice consultation at the level of Principal Commissioner/ Commissioner has been made mandatory in all the cases where duty involved is above Rs 50 lakh. Further, Zonal Chief Commissioners and Principal Commissioners have been directed to hold monthly or bi-monthly meetings with all the adjudicating and appellate authorities in their respective zone and also advice them on how to pass good adjudication/appellate orders. Besides, the training institute will impart intense training to train officers on the qualities of a good adjudication order, advocacy, and interpretation of statue as well as drafting of laws. Government considering a comprehensive food policy In a bid to help enhance farmers' income and provide processed food products to consumers at affordable rates, the government is considering to frame a comprehensive policy for the food sector. Stressing on the need to further strengthen the linkage of the farms with the market and industry, Food Processing Minister Harsimrat Kaur Badal said I think there should be a one comprehensive food policy, which encompasses policies for agriculture, distribution of food and food processing, that is the need of the hour and we are thinking on those lines. In order to help the farmers to raise their income levels, Badal emphasized upon the need to make agriculture a more profitable profession. She said the government plans to establish a task force to prepare a vision for the food processing sector by It is an ongoing process, the government wants to create such environment where farmers income level rises, promotes processing and at the same time, food products for consumers are available at affordable prices. Badal further highlighted that government is taking steps to ease product approval system of food regulator FSSAI and working on a new mechanism where manufacturers may not need approval for their products if ingredients are cleared. Govt approves 3 FDI proposals worth Rs 160 crore The Foreign Investment Promotion Board (FIPB), headed by Economic Affairs Secretary Shaktikanta Das has cleared 3 Foreign Direct Investments (FDI) proposals amounting Rs 160 crore which includes ScaleneWorks People Solutions LLP, GVK Biosciences and Singapore based GMS Pharma. Of the 24 proposals which were on the agenda of the FIPB, 11 worth Rs 300 crore fell under the automatic route due to the new policy announced earlier this month. So, in effect, the FIPB discussed the remaining and cleared three. Approval has been sought by GVK Biosciences for transfer of its 9.091% shares currently held by Sequoia Capital to Destiny Investments for an aggregate consideration of crores. Besides, approval has been sought by GMS Pharma (Singapore) for the proposed acquisition of 25.1% of the share capital of Stelis Biopharma either by itself or through its affiliates and or group companies, in one or more tranches which is currently held by Strides Arcolab. However, 9 FDI proposals including HDFC Standard Life insurance Company, Tata Sikorsky Aerospace, Jupiter Satellite lndia, Financial Times (lndia), Volvo Asset Finance lndia, Aviva Life lnsurance Co lndia, lndus Way Emerging Market Fund Series ll, Ivy Cap Ventures Trust Fund ll and Firefly Networks were deferred. Meanwhile, FIPB rejected ACN Cable proposal which has been sought for increasing the equity stake from 47.56% to 73.16% by way of downstream investment by Atria Convergence

8 Technologies (foreign owned) in ACN Cable, an MSO. Besides, 8 FDI proposals did not lie before FIPB and three proposals were withdrawn by the applicants. Govt to issue policy on flexible fuel engines by January: Nitin Gadkari Transport minister Nitin Gadkari has said that in order to curb pollution levels in metropolitan cities, he will issue a policy on flexible fuel engines by January 26. This move will help absorb extra ethanol supplies in the country and reduce pollution while providing a new market for the sugar sector. He also said that he will seek to convince the petroleum industry about the merits of biofuel. Gadkari said that We are working on a policy on flexi-fuel vehicles, which can run entirely on ethanol, but also have the option for petrol. I've told my officials to expedite work on this so that I can announce this before January 26. He further said that not much research or study is required to finalise the policy as countries like the US and Brazil are already implementing. The minister has asked Germany's biggest car maker, Volkswagen, to make flexi-fuel vehicles for India. Emphasizing the need to boost ethanol production in the country to meet demand once the flexi-fuel system is in place, Gadkari said that its proportion in blended petrol should rise to 22% from the current 10%. Banks to follow MCLR methodology for Interest rate on advances from next fiscal The Reserve Bank of India (RBI), in order to improve transparency and ensure speedier monetary policy transmission has said that all banks will have to follow a new uniform methodology from the next fiscal (April 1, 2016) for calculation of base rate on the basis of the marginal cost of funds. The apex bank stated that marginal cost pricing of loans will help the banks become more competitive and enhance their long run value and contribution to economic growth. The new lending rates, Marginal Cost of Funds-based Lending Rate (MCLR), will be computed based on banks' marginal cost of borrowing, or incremental cost of funds, rather than the average cost of funds that banks have used so far. Apart from helping improve the transmission of policy rates into the lending rates of banks, these measures are expected to improve transparency in the methodology followed by banks for determining interest rates on advances. As per the RBI notifications, the MCLR will be a tenor linked internal benchmark and the actual lending rates will be determined by adding the components of spread to the MCLR. Banks will have to review and publish their MCLR of different maturities every month on a pre-announced date. If a bank's cost of borrowing is eight per cent now but tomorrow the incremental cost of funds becomes 7.5 per cent, the marginal cost of borrowing for the computation purpose will be 7.5 per cent, rather than the average of the two as was previously being used. Source: Reuters, Ace Equity & LKP Research

9 Tech View CNX Nifty Technical View Nifty witnessed increased pressure on Friday s trade and closed near low point of the day. The market breadth which saw some improvement in last few days was seen getting very weak implying Nifty is expected to trade in range and unless either of the two levels are breached further move is unlikely. Nifty is expected to open on flat to mild negative note and may test levels which if held can lead to an intraday rise till levels. IMPORTANT LEVELS FOR THE DAY Support BSE NSE BANKNIFTY S1 25, S2 25, Resistance R1 25, R2 26, Pivot 25,597 7,784 16,635

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

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