Morning Notes. Domestic Market View. LKP Advisory. 23-Oct-2015

Transcription

1 Morning Notes 23-Oct-2015 Indices 21-Oct 20-Oct % Chg. Major Indices 21-Oct 20-Oct % Chg. FII's & DII's in equity Rs.Crs S&P BSE SENSEX 27,288 27, % CAC 40 Index 4,802 4, % 21-Oct Buy Sell Net S&P CNX NIFTY 8,252 8, % DAX Index 10,492 10, % FII / FPI Investments S&P BSE MidCap 11,167 11, % Dow Jones Industrial A 17,489 17, % DII's Investments S&P BSE SmallCap 11,562 11, % FTSE 100 Index 6,376 6, % FII's contribution to the total turnover 32% Nasdaq Composite Ind 4,920 4, % DII's contribution to the total turnover 16% BSE Sectoral Indices S&P BSE METAL 7,507 7, % Major Asian Indices 21-Oct 20-Oct % Chg. FII's in Derivatives Rs.Crs S&P BSE TECk 6,213 6, % Hong Kong 22,845 22, % 21-Oct Index Fut Index Opt Stock Fut Stock Opt S&P BSE IT 11,284 11, % Nikkei ,436 18, % Net S&P BSE AUTO 18,541 18, % Korea 2,023 2, % OI S&P BSE FMCG 8,028 8, % Shanghai 3,369 3, % Chg.OI 1.3% 2.6% 0.7% -0.1% S&P BSE CONSUME 11,839 11, % Taiwan 8,608 8, % FIIs' contribution to the total Derivatives turnover 18% S&P BSE POWER 1,948 1, % S&P BSE PSU 7,009 7, % Commodities (MCX) 21-Oct 20-Oct % Chg. Curr. Derivatives (NSE) 21-Oct 20-Oct % Chg. S&P BSE OIL & GAS 9,262 9, % Aluminium (30OCT % USDINR 28-OCT % S&P BSE BANKEX 20,215 20, % Copper(30NOV2015) % EURINR 28-OCT % S&P BSE HEALTHCA 18,189 18, % Crude (19NOV2015) 2,951 2, % JPYINR 28-OCT % S&P BSE CAPITAL G 15,881 16, % Gold (4DEC2015) 26,865 26, % DJIA (20-NOV-2015) % S&P BSE REALTY 1,424 1, % Silver (4DEC2015) 36,920 36, % S&P500 (20-NOV-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 VEDL DRREDDY Top Losers BAJAJ-AUTO ASIANPAINT BHARTIARTL SBIN NTPC ASIANPAINT TATASTEEL DRREDDY Company LTP Chg % Chg Company LTP Chg % Chg VEDL FEDERALBNK Top Losers EXIDEIND SRTRANSFIN ABB GMRINFRA BAJAJ-AUTO DRREDDY RELCAPITAL JPASSOCIAT Company LTP Chg % Chg Company LTP Chg % Chg MPHASIS SRTRANSFIN Top Losers CASTROLIND GMRINFRA EXIDEIND JPASSOCIAT TORNTPHARM BANKINDIA ABB ALBK Company LTP Chg % Chg Company LTP Chg % Chg HINDUJAVEN FEDERALBNK Top Losers HCC EVERESTIND VIKASGLOB AMMLTD OKPLA NOIDATOLL ITDCEM ASIANTILES CNX Nifty BSE 100 BSE Midcap BSE Smallcap Domestic Market View Markets to make a strong start on jubilant global cues The Indian markets extended the consolidation mood in last session going for a holiday, lacking any major supportive cues. Today, the start is likely to be good on jubilant global cues and Nifty can reclaim the 8300 mark in initial trades. Market participant will be getting additional support with a Moody's Investors Service s report stating that India will clock the highest growth rate of per cent among G20 economies in 2015 and It has said that India is less exposed to global risks because of its more resilient economic growth and the impact of positive policy reforms momentum. Also, the Grant Thornton International Business Report (IBR), a quarterly global survey has stated that India Inc is the second most optimistic in terms of business optimism globally. There will be some buzz in gold and banking stocks, as the Reserve Bank has issued guidelines for the Gold Monetisation Scheme that allow banks to fix their own interest rates on gold deposits. On the other hand, Iron and steel stocks will be under pressure, as the India's iron and steel exports plummeted by 41 percent to $4.57 billion in September against $7.69 billion a year ago, hit by a subdued economic sentiment mainly in the commodities market. There will be lots of result reactions too, to keep the markets buzzing for the day.

2 Domestic Market Overview Benchmarks witness consolidation; end marginally in red Indian equity benchmarks ended a choppy day of trade on a flat note, with a negative bias, amid selling in financial, pharma and capital goods shares. Earlier, markets traded in fine fettle in early deals supported by US Treasury Department report that amid weaker outlook across emerging market economies India's recovery has strengthened under a new reform agenda, since it is not a large importer. Traders also got some encouragement with the statement of finance ministry that the country will grow by 7.5 per cent in the current fiscal, slightly higher than international rating agency Standard & Poor's latest forecast, saying the government will roll out more reforms measures to push growth. However, markets took U-turn in noon deals, tracking a slump in China markets which got pounded by over three percent. Sentiments also remained dampened after report that government deferred a decision on convening the Winter Session of Parliament till next week, amid indications that it could be summoned any day after November 19. But a final decision will be taken by the Cabinet Committee of Parliamentary Affairs (CCPA) on October 26. 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 per dollar. However, some support came with reports that foreign portfolio investors (FPIs) bought shares worth a net Rs crore on October 20, 2015, as per provisional data released by the stock exchanges. Meanwhile, oil producing companies remained under pressure after international crude prices fell with data from an US industry group showing a larger-than-expected build in US crude inventories last week. On the flip side, aviation stocks edged higher with a report that domestic air traffic posted a 15 percent increase last month, as airlines carried 6.67 million passengers when compared with 5.82 million in September Global Market Overview US markets closed higher as ECB hints more stimulus The US markets closed higher on Thursday, rallying on some positive economic data, better-thanexpected earnings and dovish comments from European Central Bank (ECB) President Mario Draghi. Draghi indicated the central bank could move next month to expand stimulus measures in the face of sluggish global growth that is exacerbating worries about persistently low inflation in the euro zone. The US central bankers will meet on October to set monetary policy for the next six weeks. Fed watchers think a rate hike is off the table next week. Investors also were heartened by strong economic data, including an employment report that showed the four-week average of initial jobless claims fell to its lowest level in four decades, suggesting that the jobs market remains solid amid questions about global growth. The four-week average of claims, a less volatile measure than the weekly figure, decreased to 263,250 from 265,250 in the prior week. This is the lowest level for this average since December Initial unemployment claims in the week ended October 17 rose by 3,000 to 259,000. Claims had fallen by 20,000 in the prior two weeks. Meanwhile, US home prices rose to a seasonally adjusted 0.6% in July. The National Association of Realtors reported a 4.7% rise in existing-home sales to a seasonally adjusted annual rate of 5.55 million, marking the second-highest monthly level since just before the housing market collapsed in Separately, the Chicago Fed National Activity Index (CFNAI) remains in negative territory. These are made up of four components and themes: production and income; employment data; personal consumption and housing; and sales, orders and inventories. The CFNAI was shown to have ticked to in September from in August. Two of the four broad categories of indicators decreased from August.

3 Index Futures (OI in '000 Shares) Future Chg Spot Chg Prem / Total Open Interest 21-Oct (%) 21-Oct (%) Disc 21-Oct Chg (%) NIFTY 8, , , 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 / 21-Oct % Chg. 21-Oct % Del. % Del. Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc CASTROLIND 1,255 23% 284,734 27% 40% 126, % 5.2% 1.2 TVSMOTOR 6,839 9% 604,474 33% 26% 389, % 2.6% -4.4 BAJAJ-AUTO 1,866 7% 369,433 28% 47% 240, % 3.7% 6.5 PAGEIND 42 5% 7,132 65% 56% 4, % 1.0% -52 RELCAPITAL 10,845 5% 538,164 10% 20% 87, % 3.2% 1.2 SUNTV 10,171 5% 360,290 16% 36% 122, % 2.6% 1.2 EICHERMOT 293 2% 35,612 56% 56% 7, % 0.1% 11.9 JINDALSTEL 36,057 2% 1,310,246 21% 14% 130, % 1.0% 0.2 AUROPHARMA 15,793 2% 687,495 47% 37% 151, % 0.0% 0.7 COALINDIA 16,446 2% 5,830,095 76% 61% 4,702, % 0.7% 0.6 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 / 21-Oct % Chg. 21-Oct % Del. % Del. Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc SRTRANSFIN 3,482 65% 526,442 34% 56% 351, % -4.5% -1.4 DRREDDY 1,272 27% 389,868 42% 61% 159, % -3.1% 10.5 FEDERALBNK 30,656 14% 20,653,502 48% 51% 18,077, % -12.1% 0.2 KTKBANK 14,094 7% 568,412 29% 27% 384, % -3.7% 0.3 ANDHRABANK 14,924 6% 583,155 39% 30% 46, % -2.5% 0.2 UNIONBANK 13,975 6% 619,655 20% 15% 284, % -2.5% -0.1 BANKINDIA 15,130 6% 736,712 26% 15% 450, % -2.9% 0.1 ENGINERSIN 1,198 4% 464,316 49% 48% 229, % -1.4% 0.6 IBREALEST 38,052 3% 3,166,745 16% 27% 537, % -4.8% 0.0 MRF 49 3% 1,910 36% 27% % 0.1% 70.0 Open Interest Break-up (Rs. in Cr.) 21-Oct 20-Oct Change in OI % Chg INDEX FUTURES 25,952 25, INDEX OPTIONS 131, ,271 1, TOTAL INDEX 156, ,249 1, STOCK FUTURES 62,486 62, STOCK OPTIONS 19,775 19, TOTAL STOCKS 82,261 81, GRAND TOTAL 239, ,896 2, FII's 157, , Others 82,027 82,

4 Corporate News Foreign institutional investors (FIIs) have raised their stake in Maruti Suzuki by 33 basis points to percent in Q2FY16 from percent in Q1FY16. On the other hand, the domestic institutional investors (DIIs) have reduced their shareholding in the company by 15 basis points to percent at the end of September 2015 quarter from percent as on June 30, Non Institutions were holding 7.28% stake at the end of September 2015 quarter, down 18 basis points from 7.46% as on Jun 30, TVS Motor Company has launched TVS XL 100 in the Uttar Pradesh market. TVS XL 100 is designed to meet the evolving needs of today's customer and is one of the most affordable, reliable, easy to ride, powerful multi-utility two wheelers in the market. Indiabulls Real Estate has received approval from Westminster City Council on October 20, 2015 whereby the Council has approved the planning permission for redevelopment of 22 Hanover Square, which is being developed by a wholly owned subsidiary of the company. State Bank of Bikaner & Jaipur (SBBJ) has received an approval for raising of capital by additional Tier I of Rs 150 crore and Tier II capital of Rs 750 crore through suitable instrument(s) at an opportune time during Financial Year The board of directors at its meeting held on October 20, 2015 has approved for the same. Reliance Capital Asset Management Company (Reliance Capital AMC), a part of Anil Ambani led Reliance Capital, has signed definitive agreements to acquire Goldman Sachs Asset Management s (GSAM) onshore business in India. Inox Wind, a power equipment maker, has received shareholders approval for raising Rs 150 crore through issuance of Non- Convertible Debentures (NCDs) on private placement basis. The shareholders approved the special resolution at its Annual General Meeting held on September 19, to issue NCDs worth Rs 150 crore in one or more tranches during one year period. Reserve Bank of India (RBI) has notified that the foreign shareholding through Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) in Shriram Transport Finance has crossed threshold ban limit of its paid-up capital. Therefore, no further purchase of shares of this company would be allowed through stock exchanges in India on behalf of FII/RFPIs. Usher Agro s subsidiary Usher Eco Power has signed a procurement agreement with Goodyear Tire and Rubber Company for supply of Green Silica to be extracted from Rice Husk Ash generated by the boiler of the Rice Husk fired Biomass Power Plant. JL Morison India has started manufacturing at its Walunj unit with effect from October 20, The said unit is located at E-95/1, MIDC, Waluj, Near Siemens Factory, Aurangabad in state of Maharashtra. The manufacturing unit was closed with effect from August 23, Insilco s plant operations have been restarted from October 20, Earlier, company s plant had been shut down from September 23, 2015 to October 20, 2015 due to high inventory & low sales volume. Welspun Corp has won an order for supply of approximately 90k MT line pipes for an offshore pipeline project in MENA region. Geometric, a global leader in advanced machining software, has released CAMWorks 2016 software, the latest release of the company s suite of 3D CNC machining applications. CAMWorks 2016 delivers new productivity-enhancing capabilities that will help companies move seamlessly from design to manufacturing, while enabling more cost-effective handling of design and manufacturing changes. Financial Technologies (India) (FTIL) has entered into a share purchase agreement (SPA) with Madison India Opportunities III, for sale of 478,834 comprising 1.58% stake in Indian Energy Exchange (IEX) on fully diluted basis equity shares of Rs 10 each of IEX for an aggregate consideration of Rs crore. The said transaction is subject to fulfillment of certain condition precedents.

5 .Economy India Inc may have to file monthly returns for B2B deals under GST A recent report by a panel on Income Tax return forms has recommended separate returns for input and output. With this move, India Inc will now have to file monthly returns with due invoices of business-to-business (B2B) transactions under the proposed goods and services tax (GST) regime. The panel, which has officials from Centre as well as the state governments, has presented its fourth report after the previous ones on registration, refund and payment process. The report stated that there will be common e-return for central GST, state GST, integrated GST and additional tax. According to the report, vendor management would also be very important and details of inward supplies would be auto populated in the return of the buying entity and any difference with actual books of accounts would have to be reconciled. Besides, the panel has mooted a separate return form for non-resident tax payers. Tax department has recently given an assurance that the Goods and Service Tax (GST) will be implemented anytime during a year once the bill is passed in Rajya Sabha. GST, once rolled out, will include various levies like excise, service tax, sales tax, octroi, etc, and ensure a single indirect tax regime for the entire country. GST, seen as the most comprehensive reform of indirect taxes since independence, is expected to lift the country's GDP by one to two percentage points. India- Russia decide to boost trade ties With an aim to achieve the target of $30 billion in bilateral trade in the next 10 years, India and Russia have discussed the ways to boost their economic ties. External Affairs Minister Sushma Swaraj and Russia's Deputy Prime Minister Dmitry Rogozin, chairing the 21st India-Russia Inter-Governmental Consultations, also looked at ways to enhance the mutual direct investment to $15 billion by Both the countries identified various sectors in order to achieve their commercial targets. Agriculture, pharmaceutical and infrastructure were some of the areas identified by both countries to strengthen their economic engagement. The other areas deliberated upon were space, energy, culture and science and technology. Furthermore, India reiterated its commitment to work towards having 12 Russian nuclear plants as was agreed between Prime Minister Narendra Modi and Russian President Vladimir Putin as Russia is an important partner for India in peaceful uses of nuclear energy. Last year, the bilateral trade between the two countries amounted to $9.51 billion, with Indian export touching $3.17 billion and imports from Russia $6.34 billion. Government amends rules to reduce transfer pricing litigation The government has notified amendments for transfer pricing calculations to incorporate range concept and use of multi-year data to reduce litigation and bring Indian laws in line with international practices. The new rules are applicable for calculating the arm's length pricing of international transactions and specified domestic transactions from April 1, Transfer pricing is one of the main reasons for tax disputes in India. The tax department has made these changes to provide more clarity. Finance ministry has said that the amended rules would therefore provide clarity in determination of price in transfer pricing cases and reduce disputes on transfer pricing issues. It is a part of the government s continuing initiative of providing a stable and certain direct tax regime. The new rules also provide for use of multi-year data, which will take care of annual fluctuations. The range concept will be applicable in certain cases for determining the price and will begin with the 35th percentile and end with the 65th percentile of the comparable prices. Transaction price shown by the taxpayers falling within the range will be accepted and no adjustment will be made. This will help reduce adjustments to only cases where transfer prices are outside the range. The use of multiple year data allows for yearly variations to be averaged out and would therefore add value to transfer pricing analysis.

6 IRDAI issues guidelines on Indian-owned and controlled insurance firms Insurance Regulatory and Development Authority of India (IRDAI) has issued guidelines on Foreign Direct Investment (FDI), in order to bring clarity on the issue of compliance with the manner of Indian-owned and -controlled companies. According to the Insurance Laws (Amendment) Act 2015, the total foreign investment including both direct and indirect in Indian insurance companies cannot exceed the limit of 49 percent. The guidelines will come into force from the date of issue. IRDAI further said that the guidelines are also applicable to insurance intermediaries such as brokers, third party administrators, surveyors and loss assessors. However, guidelines shall not be applicable to insurance intermediaries who are having more than 50 percent of its revenue from the non-insurance activities. The applicability of the guidelines may come into existence after notification of the Act. The law provides for 'Indian Owned and controlled requirement' for an Indian insurance company. In such a case the law will be applicable where the companies proposes to hike their foreign investment from the existing level or even when they do not intend to increase their current foreign stake from the existing level. On the other side while stating about the Indian control, IRDAI said the domestic firm shall ensure that majority of the directors, excluding independent directors, should be nominated by Indian promoter/investors and appointment of key management person, including Chief Executive Officer or Managing Director or Principal officer, should be through the Board of Directors or by the Indian promoter. However, key management person, excluding CEO, may be nominated by the foreign investor provided that the appointment of such key management person is approved by the Board of Directors, wherein majority of the directors excluding independent directors are the nominees of Indian promotor. India's recovery strengthened under a new reform agenda: US Treasury report In an environment when global rating agencies have started downgrading India s growth outlook, the government has got a pat from the United States, as an US Treasury Department report has said that amid weaker outlook across emerging market economies, India's recovery has strengthened under a new reform agenda; since it is not a large importer, but it is not yet a 'major driver' of global growth. In its semi-annual 'Report to Congress on International Economic and Exchange Rate Policies' the US Treasury Department said that buoyed by savings of $ 44 billion from drop in prices of oil imports, India's total foreign exchange reserve has reached an alltime monthly average high of $ 328 billion - thus making it the eighth country from the top in terms of foreign reserve. According to the report, the sharp drop in the price of oil is having a large impact on global current account imbalances. On an annualised basis, the roughly $50-per-barrel decline in the price of oil is generating shifting income of over $600 billion annually from oil exporters to oil importers, holding all else constant, with Europe and Asia the key beneficiaries. As per it, China's savings amounted to nearly $120 billion the largest single country gain from lower oil prices. Japan saved $76 billion, India $44 billion, and Korea $36 billion. Source: Reuters, Ace Equity & LKP Research

7 Tech View CNX Nifty Technical View Nifty continued to take support near 8200 levels following the range it has been following since last few days. Nifty is expected to continue its rangebound move finding strong resistance at 8350 levels and support near 8180 levels. Nifty is expected to open on strong note and may test 8320 levels which if not held can lead to fall till levels in coming days. IMPORTANT LEVELS FOR THE DAY Support BSE NSE BANKNIFTY S1 27, S2 26, Resistance R1 27, R2 27, Pivot 27,308 8,254 17,723

8 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

9 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

10 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