Top Gainers BSE Smallcap Top Losers BSE Smallcap Top Gainers BSE Midcap Top Losers BSE Midcap Top Gainers BSE 100 Top Losers BSE 100 Top Gainers CNX Nifty Top Losers CNX Nifty Morning Notes 27-Aug-2015 Indices 26-Aug 25-Aug % Chg. Major Indices 26-Aug 25-Aug % Chg. FII's & DII's in equity Rs.Crs S&P BSE SENSEX 25,715 26,032-1.22% CAC 40 Index 4,501 4,565-1.40% 26-Aug Buy Sell Net S&P CNX NIFTY 7,792 7,881-1.13% DAX Index 9,997 10,128-1.29% FII / FPI Investments 5051 7397-2346 S&P BSE MidCap 10,477 10,560-0.79% Dow Jones Industrial Average 16,286 15,666 3.95% DII's Investments 3358 1477 1881 S&P BSE SmallCap 10,712 10,695 0.16% FTSE 100 Index 5,979 6,081-1.68% FII's contribution to the total turnover 54% BSE Sectoral Indices Nasdaq Composite Index 4,698 4,506 4.24% DII's contribution to the total turnover 21% S&P BSE POWER 1,829 1,800 1.64% Major Asian Indices 26-Aug 25-Aug % Chg. FII's in Derivatives Rs.Crs S&P BSE METAL 7,162 7,146 0.23% Hong Kong 21,080 21,405-1.52% 26-Aug Index Fut Index Opt Stock Fut Stock Opt S&P BSE REALTY 1,234 1,237-0.20% Nikkei 225 18,377 17,807 3.20% Net -89-848 243-22 S&P BSE CONSUMER DURABLES 10,602 10,652-0.47% Korea 1,894 1,847 2.57% OI 24928 86164 52306 3841 S&P BSE PSU 6,723 6,763-0.60% Shanghai 2,927 2,965-1.27% Chg.OI 14.3% 1.8% 0.9% -4.6% S&P BSE AUTO 17,679 17,803-0.70% Taiwan 7,716 7,676 0.52% FIIs' contribution to the total Derivatives turnover 26% S&P BSE CAPITAL GOODS 16,069 16,217-0.91% S&P BSE IT 10,892 10,997-0.96% Commodities (MCX) 26-Aug 25-Aug % Chg. Curr. Derivatives (NSE) 26-Aug 25-Aug % Chg. S&P BSE FMCG 7,630 7,704-0.96% Aluminium (31AUG2015) 100 102-1.62% USDINR 27-AUG-2015 66.19 66.10 0.14% S&P BSE OIL & GAS 8,532 8,617-0.98% Copper(31AUG2015) 329 337-2.30% EURINR 27-AUG-2015 75.55 75.92-0.48% S&P BSE TECk 5,928 5,990-1.04% Crude (21SEP2015) 2,610 2,607 0.12% JPYINR 27-AUG-2015 55.37 55.02 0.64% S&P BSE HEALTHCARE17,195 17,393-1.14% Gold (5OCT2015) 26,471 26,740-1.01% DJIA (18-SEP-2015) 15928 16225-1.83% S&P BSE BANKEX 19,395 19,726-1.68% Silver (4SEP2015) 33,423 34,652-3.55% S&P500 (18-SEP-2015) 1898 1936-1.94% Company LTP Chg % Chg Company LTP Chg % Chg BHEL 241 10 4.3 TECHM 507-22 -4.1 TATAPOWER 60 2 3.3 HEROMOTOCO 2370-95 -3.8 CAIRN 129 3 2.5 AMBUJACEM 200-8 -3.8 POWERGRID 131 3 2.0 HEROMOTOCO 2370-95 -3.8 BAJAJ-AUTO 2241 42 1.9 TECHM 507-22 -4.1 Company LTP Chg % Chg Company LTP Chg % Chg RELINFRA 333 24 7.7 BHARATFORG 1105-60 -5.1 GMRINFRA 12 1 6.0 AMBUJACEM 199-9 -4.5 RELCAPITAL 294 12 4.2 TATACHEM 398-17 -4.1 CROMPGREAV 172 7 3.9 SAIL 49-2 -4.0 BHEL 240 8 3.5 TECHM 507-21 -4.0 Company LTP Chg % Chg Company LTP Chg % Chg RELINFRA 333 24 7.7 BHARATFORG 1105-60 -5.1 GMRINFRA 12 1 6.0 TATACHEM 398-17 -4.1 JSWENERGY 69 3 4.5 GODREJIND 341-13 -3.7 RELCAPITAL 294 12 4.2 BRITANNIA 2886-100 -3.4 CROMPGREAV 172 7 3.9 UNIONBANK 170-6 -3.4 Company LTP Chg % Chg Company LTP Chg % Chg IFGLREFRAC 117 14 13.4 LIFELINE 168-42 -20.0 SANDUMA 626 73 13.1 GOLDLINE 240-27 -10.0 KESORAMIND 91 9 10.5 CCLINTER 53-5 -8.0 UBHOLDINGS 21 2 10.4 TRF 190-15 -7.4 NILKAMAL 943 86 10.0 BLISSGVS 136-9 -6.4 Domestic Market View F&O series expiry session to get a gap-up start tailing jubilant global cues The Indian markets suffered another big sell-off in last session and markets despite showing some early recovery sign ended lower by over a percent. Today, the start of the F&O series expiry session is likely to be a gap-up one on jubilant global cues. Apart from short covering and bargain hunting traders will be getting some support from a report of India Ratings that the government can spend an additional Rs 37,200 crore more this fiscal year in infra investments or bank recapitalisation and still not miss the 3.9 percent fiscal deficit target, attributing the surplus to the higher indirect tax collections, which till July rose a healthy 39 percent and a massive decline in crude prices. The infra stocks are likely to remain in action, as the Centre has allowed road developers to completely exit BOT (build-operate-transfer) projects two years after completion and invest the funds in incomplete highway projects, power plants or retire debt. However, there will be some cautiousness too, with the RBI Governor Raghuram Rajan s statement that it will be a long time before India can replace China as a growth engine for the global economy, even if it grows at a faster rate. Aviation stocks too will be buzzing, as the Prime Minister has said that the financial aspects of various proposals being included in the civil aviation policy must be considered before making them a part of the policy. Textile stocks may see some action, as the textiles ministry is making out a case for keeping the industry in the lowest slab of the proposed GST.
Domestic Market Overview Benchmarks resume southward journey; Nifty slips below 7,800 mark Penultimate session of F&O series expiry turned out to be a daunting one for stock markets in India, with benchmarks ending below their crucial 7,800 (Nifty) and 25,800 (Sensex) levels. Key domestic markets, resuming their southward trend, clobbered out of shape with frontline gauges shaving off over a percentage point on Wednesday as traders booked profit mainly in last leg of trade. Earlier, after a gap-down opening markets witnessed significant recovery as traders got some support with the global rating agency Moody s latest report that it will upgrade India's rating if the government is able to push through reforms, inflation stabilises, regulatory environment improves and infrastructure investment rises. Traders got some sense of relief with Reserve Bank of India Governor Raghuram Rajan s statement that there is confidence that we are actually quite healthy, last time we did not have the confidence that is the big difference this time. However, the sentiments were spooked largely in last leg of trade where frontline gauges once again entered into red terrain as investors feared fresh rate cuts in China may not be enough to stabilise its slowing economy or halt a stocks collapse that is wreaking havoc in global markets. Depreciation in Indian rupee too dampened the sentiments. The rupee depreciated by 4 paise to 66.14 against the US dollar at the Interbank Foreign Exchange at the time of equity market closing due to fresh dollar demand from importers. Moreover, the traders will be keenly watching whether the government succeeds in convening a special session of Parliament to pass the crucial GST bill. The sentiments were also under pressure on reports that foreign portfolio investors (FPIs) sold shares worth a net Rs 2080.01 crore on August 25, 2015, as per provisional data released by the stock exchanges Global Market Overview Asian markets close mostly in green on Wednesday The Asian markets closed mostly in green on Wednesday, while China s stock market has fallen again, for the fifth day running, as the market rout continues despite its central bank s efforts to calm the crisis by cutting interest rates on Tuesday. The People s Bank of China cut its benchmark interest rate and lowered the amount of cash banks are required to hold, as Beijing steps up efforts to support a stock market rout and a deepening economic slowdown. The People s Bank of China cut the one-year lending rate to 4.6% from 4.85% effective Wednesday. China s central bank also reduced its reserve requirement ratio by 0.5%, with that requirement effective on September 6. China s central bank injected 140 billion yuan ($21.8 billion) into the interbank money market via short-term liquidity operations (SLOs). The loans, which mature in six days, have an average interest rate of 2.3%. The PBOC launched SLOs in 2013 to supplement its other monetary policy tools. US markets closed higher; snaps six-day rout The US markets closed higher on Wednesday, snapping the six-day stock-market rout, with Dow and S&P 500 posting their largest gains in nearly four years. The jump attributed to fresh stimulus measures by China s central bank as well as better-than-expected economic data. New York Fed President William Dudley, a pivotal member of Fed Chairwoman Janet Yellen s inner circle, backed away from supporting an interest-rate hike at the US central bank s September meeting. Dudley stated that wild swings in global financial markets, the slowing Chinese economy and falling commodity prices have increased the downside risks to the US economic outlook somewhat. There could be less demand for US goods and services, as strains are rising on emerging economies. And the drop in stock prices effectively has had the same impact as higher interest rates by tightening financial market conditions. The New York Fed President is a fairly dovish US central banker. But more important, he is seen as reflecting Yellen s views. Dudley added that it was important not to overreact to the stock-market tumble and stressed his views could change again before the Fed meeting on September 16-17.
Index Futures (OI in '000 Shares) Future Chg Spot Chg Prem / Total Open Interest 26-Aug (%) 26-Aug (%) Disc 26-Aug Chg (%) NIFTY 7,801-1.21 7,792-1.13 8.8 28,639 9.5 CNXIT 11,277-1.05 11,284-0.81-6.9 13-11.7 BANKNIFTY 16,939-2.09 16,918-1.60 21.1 2,732 10.5 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 / 26-Aug % Chg. 26-Aug % Del. % Del. Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc PETRONET 4,052 12% 569,995 64% 49% 196,491 179 177 0.6% -1.1% -2.1 OIL 474 12% 370,534 67% 63% 107,558 449 446 3.3% 1.0% -3.1 TATAMOTORS 46,970 8% 8,644,502 56% 54% 765,513 335 332 1.7% 1.2% -2.9 KSCL 1,755 4% 439,368 24% 30% 81,452 471 471 3.3% 5.2% 0.4 IBULHSGFIN 5,002 1% 1,743,677 60% 51% 130,814 760 757 2.9% 2.3% -2.6 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 / 26-Aug % Chg. 26-Aug % Del. % Del. Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc AMBUJACEM 9,010 25% 14,848,593 81% 60% 11,556,205 198 199-5.4% -4.3% 1.0 HDFC 14,428 16% 6,155,625 75% 73% 1,824,534 1102 1104-4.1% -3.8% 1.8 HINDZINC 3,704 7% 850,271 60% 54% 112,225 127 127-0.2% 0.2% 0.4 HEROMOTOCO 1,308 6% 1,128,709 81% 63% 735,305 2393 2392-2.9% -3.1% -0.5 ASIANPAINT 4,403 5% 593,656 43% 37% 39,910 852 854-0.5% 0.1% 1.7 JUSTDIAL 1,406 5% 348,764 35% 28% 44,015 770 771-2.8% -2.3% 1.1 MCLEODRUSS 2,955 4% 169,006 42% 24% 67,929 166 166-2.2% -1.8% 0.4 M&M 5,365 3% 931,246 70% 59% 285,638 1216 1217-4.1% -3.0% 1.0 ABIRLANUVO 604 3% 126,113 46% 41% 23,792 1989 1993-4.4% -3.4% 3.9 Open Interest Break-up (Rs. in Cr.) 26-Aug 25-Aug Change in OI % Chg INDEX FUTURES 27,159 25,073 2,086 8.32 INDEX OPTIONS 149,541 145,588 3,953 2.72 TOTAL INDEX 176,700 170,661 6,039 3.54 STOCK FUTURES 64,928 65,124-196 -0.30 STOCK OPTIONS 23,696 23,492 204 0.87 TOTAL STOCKS 88,624 88,616 7 0.01 GRAND TOTAL 265,324 259,277 6,046 2.33 FII's 167,239 162,322 4917 3.03 Others 98,084 96,955 1129 1.16
Corporate News Sun TV Network has entered into partnership with HOOQ, a video streaming service provider, for video on demand services. HOOQ has recently entered into the Indian market with over 30,000 hours of movies & TV series and will now carry Sun TV's library that includes a mix of super hit films from Tamil, Telugu, Malayalam & Kannada languages. The content catalogue includes titles 3, Jilla, Naduvula Konjam Pakkatha Kanaom, Manam Kothi Paravai, Mayakkam Enna, Oru Kal Oru Kannadi, Ragalapuram, Kanchana, Neram, Kazhugoo (New), Sundara Pandian, Mankatha and many more. Cairn India is all set to expand its crude oil and natural gas carrying capacity by laying a new gas pipeline from its Barmer (Rajasthan) field. In this regard, the company will invest Rs 1,400 crore. Life Insurance Corporation of India (LIC) has raised its stake in Andhra Bank to 11.48% by acquiring 2.19% stake or 13,199,656 shares. Earlier, the company had 55,997,829 shares amounting to 9.29% of equity in the state-owned bank. In order to develop intermediate and light commercial vehicles, Mahindra & Mahindra (M&M), a flagship company of the Mahindra Group, is planning to invest Rs 700 crore in its commercial vehicle business in the next two years. The company wants to become a full range commercial vehicle player with focus on developing vehicles in the 9-16 tonnes range. As part of the product development project which began last year, the company plans to introduce intermediate commercial vehicles (ICVs), medium commercial vehicles (MCVs), upgrade light commercial vehicles (LCVs) and consolidate its heavy commercial vehicles (HCV) segment. Monnet Ispat and Energy has agreed in-principle to offload its holding in Orissa Sponge Iron & Steel (OSISL), which owns iron ore reserves in the Odisha to Bhushan Steel (BSL). However, no commercial terms and valuations have been finalised. Gammon India is reportedly in talks with Hinduja Group to sell its EPC business and negotiations may be hovering around a valuation of Rs 300 crore. Recently, the company announced its plans to separate its EPC as well as transmission & distribution businesses into subsidiaries called Gammon Retail Infra and Transrail Lighting, respectively. Cambridge Technology Enterprises (CTE), an IT services leader focused on the convergence of big data and cloud, has entered into agreement with a private leading technology company connecting the worlds of print, archive, and online. Mahindra Truck and Bus Division (MTBD), a part of the USD 16.9 billion Mahindra Group, has rolled out its 15,000th heavy commercial vehicle (HCV) from the state-of-the- art plant in Chakan, Maharashtra. In addition, the company also reached a sales milestone of 125,000 light commercial vehicles (LCVs) on Indian roads. AGC Networks and Avaya, a leading global provider of solutions that enable customer and team engagement, have entered into an agreement to deliver cloud-based services to businesses across India. Under the terms of the agreement, AGC Networks will deliver communication and collaboration capabilities for new and existing customers in India, with the support and expertise of the Avaya Private Cloud Services organisation. National Thermal Power Corporation (NTPC) has presented a cheque of Rs 6 crore towards Skill Development. The company has signed a MOU with National Skill Development fund (NSDF), under ministry of skill development and entrepreneurship (MSDE) and NSDC on June 26, for skilling of 25,000 youths. Mindtree, a leading digital transformation and technology services company, has completed the closing conditions and obtained necessary regulatory approvals with respect to the acquisition of entire ownership interest in Relational Solutions, Inc., a US based IT solutions provider specializing in technology services to the consumer goods industry. The company had entered into a definitive agreement on July 16, 2015 for acquisition of Relational Solutions, Inc. Tech Mahindra s in-house developed platform TAP (Tech Mahindra Analytics Platform) for Big Data solutions has been certified by Hortonworks, a technology leader and ecosystem builder for the Apache Hadoop industry. TAP, an asset-based delivery kit, addresses the critical and evolving needs of customers with a multitude of diverse use cases in Big Data Analytics. It is one of the
major technology initiatives in the Analytics area and the certification by Hortonworks adds further value to this asset and enables the delivery of analytics solutions on the HWX platform. UCO bank has entered into partnership pact with FreeCharge to enable efficient recharge and bill payments for their consumers. This first public sector bank alliance with FreeCharge will empower PSUs in adapting digital innovation of online transactions serving all the mundane tasks. Larsen & Toubro s (L&T) subsidiary L&T Construction s Power Transmission and Distribution Business has bagged order worth Rs 864 crore from Qatar General Electricity & Water Corporation KAHRAMAA for its ongoing Qatar Electricity Transmission Network Expansion Plan-Phase XII. Gayatri Projects has bagged various orders from National Highways Authority of India (NHAI) worth Rs 3318 crore. Of total, the company has bagged contract worth Rs 741 crore for 4- laning of Ghaghra Bridge to Varanasi Section of NH-233 from km 180.420 to km 240.340 ( Package -II from Bhudanpur Urban Section to Start of Gossai Bazar bypass) in the state of Uttar Pradesh under NHDP Phase -IV on EPC mode. The company has also won order worth Rs 785 crore for 4- laning of Ghaghra Bridge to Varanasi Section of NH-233 from km 240.340 to km 299.350 (Package -III from Start of Gossai Bazar bypass to Varanasi) in the state of Uttar Pradesh under NHDP Phase - IV on EPC mode. Government of India (GOI) has decided to infuse capital funds to the tune of Rs 5,393 crore in State Bank of India (SBI), the country's largest lender by way of preferential allotment of equity in favour of the GOI. The board of the bank on August 25, 2015 has approved infusion of capital. Morgan Stanley Mauritius Company has sold 86.16 lakh shares of Federal Bank through the open market route. The shares were sold on an average price of Rs 60.28, valuing the transaction to Rs 51.94 crore. Foreign Investment Promotion Board (FIPB) has recommended Cadila Healthcare s proposal for equity infusion of Rs 5000 crore to the Cabinet Committee on Economic Affairs (CCEA). The company is seeking approval for fresh equity infusion of up to Rs 5,000 crore under FDI route by QIBs through Qualified Institutional Placement on a private placement basis for the expansion of the business. Currently, the Finance Ministry can approve investments up to Rs 3,000 crore with amounts exceeding that having to be referred to the Cabinet panel. Edelweiss Financial Services subsidiary Edelweiss Tokio Life Insurance has been granted approval by the Foreign Investment Promotion Board (FIPB) for increase in foreign equity from 26% to 49% of the paid up capital. It is proposed that Tokio Marine & Nichido Fire Insurance will invest a sum of not exceeding Rs 540 crore in the company. Government of India (GOI) has decided to infuse capital funds to the tune of Rs 407 crore in Dena Bank by way of preferential allotment of equity in favour of the GOI. The board of the bank on August 20, 2015 has approved infusion of capital. Further, the bank is taking necessary steps / approvals in this regard. Glenmark Pharmaceuticals (GPL) is planning to launch 10-12 new products in the domestic market during the current financial year (2015-16) and hopes to report a growth of 18-20 percent. The company wants to increase its focus on the Indian market across four key areas, including dermatology, diabetes, cardiology and respiratory segments. The company derives about 26% of its revenues from the India, which is its second largest market. IL&FS Transportation Networks is planning to raise upto Rs 1,000 crore to augment its long-term resources. The company would seek shareholders approval for the same in the ensuing annual general meeting, which is scheduled for August 26, 2015. Jindal Steel & Power (JSPL), the Naveen Jindal-led firm, will seek shareholders nod for raising up to Rs 15,000 crore via securities for loan refinancing and capital expenditure. The company is also evaluating various options including selling stake in its overseas subsidiaries. The firm will put these proposals before the shareholders at its annual general meeting scheduled next month.
JK Paper is aiming to scale up its exports further by 25% during FY16 on the back of availability of additional capacity. The company exported over 40,000 tonnes in FY15, up by 150% Year-on-Year (Y-o-Y). Moreover, the company is actively involved in market expansion beyond the shores of India. Tata Consultancy Services (TCS) has gifted $35 million to Carnegie Mellon University (CMU) marking a new era of partnerships between leaders in industry and academia. Representing the largest corporate gift to CMU and the largest gift from outside the US, this donation will fund a new facility, the Tata Consultancy Services Building, which will support education and cutting-edge research by CMU faculty and students. Niraj Cement Structurals has secured 2 tenders worth Rs 61.69 crore. The first tender is from Odisha PWD for project - Improvement Khajuripada - Nuagada road (ODR) from 0/000 km to 5/800 km in the district of Gajapati under State Plan for the year 2014-2015 shall be developed at a cost of Rs 6.85 crore. Indian Oil Corporation (IOC) has inked a Memorandum of Understanding (MoU) with Nepal Oil Corporation (NOC) in August 25, 2015 for construction of 1.3 MMTPA capacity Raxaul-Amlekhgunj Petroleum product pipeline along with some works at Amlekhganj Petroleum Depot of NOC..Economy Low prices of crude responsible for dip in exports: Commerce Ministry Commerce & Industry Ministry additional secretary J K Dadoo has said that due to fall in fuel prices overseas, the exports of petroleum products have been dipped. Low prices of crude, metal and commodity, dip in manufacturing and slowdown in western markets are some of the factors attributing to the fall. Also there has been increase in demand for petroleum-based products in the domestic markets because of the deregulation of diesel prices. Dadoo further said that trading with the European Union has been impacted due to economic woes of the 27-nation bloc. Reliance, which accounts for over quarter of the country s exports reported over 40% plunge in exports in Q1 of the current fiscal. Essar Oil too reported decline in petroleum products exports during the same quarter as oil prices across the globe were falling, due to fall in demand in the world's largest oil consumer China and increased shale gas production in the US, which is the second largest oil market globally. Govt approves 16 FDI proposals worth Rs 1,153 crore Based on the recommendation of Foreign Investment Promotion Board (FIPB) Government has approved 16 foreign direct investment (FDI) proposals amounting Rs 1,152.53 crore approximately, including that of Edelweiss Tokio Life Insurance, Encore Asset Reconstruction Company and News Laundry Media. FIPB cleared proposal of Edelweiss Tokio Life Insurance to increase foreign equity from 26% to 49% of its paid-up capital. Further, government gave nod to News Laundry Media for raising its foreign equity from 6.25% to 18.64%. FDI proposal of Tata Global Beverages was also cleared for issuing shares to foreign collaborators of Mount Everest Mineral Water, a subsidiary of TGBL, pursuant to merger of the two companies. Besides, FIPB also cleared FDI proposals of Arkadin ConferIndia, Zone Startup (India) Advisory, HSS BIM Solutions, Cogniphi Technologies, Move.in (Singapore), Logbase Inc, Celon Laboratories, Elanco India, Kinedex Healthcare, Windlas Biotech, Cairnhill CIPEF and Cairnhill CGPE and that of Akumentis Healthcare. However, 11 proposals, including that of Apollo Hospitals Enterprise, Aegon Religare Life Insurance, Almondz Insurance Brokers, Indian Herbs Specialties, IIFL Holdings and BTI Payments, were recommended for deferment. Meanwhile, similar number of proposals were rejected including that of Bloomberg Data Services India, Taurus Ventures, Architects 49, Afro Asia Equipments and Dhanvantari Technologies.
Ratings can be upgraded if government is able to push through reforms: Moody s Global rating agency Moody s has said that it will upgrade India's rating if the government is able to push through reforms, inflation stabilises, regulatory environment improves and infrastructure investment rises. In its latest report the rating agency has said that India's rating could be upgraded if it's expectations of gradual but credit positive reforms are realised in actual policy implementation and if the recent improvement in inflation, fiscal and current account ratios is sustained. Moody s which is having a 'Baa3' rating on India with a positive outlook, said that it had changed its outlook on India in April to positive from stable, based on premise that the proposed policies are likely to lower sovereign credit risk by stabilising inflation, improving the regulatory environment, increasing infrastructure investment while maintaining the ongoing improvement in fiscal ratios. Though, it also cautioned that rating outlook would likely return to stable if there was 'a slowdown or reversal of the policy reform process, if banking system metrics continue to weaken, or if there is a decline in foreign exchange reserves coverage of external debt and imports. It also said that India's performance on political stability, regulatory quality, control of corruption and government effectiveness is weaker than the median for sovereigns rated in the Baa range. Panic should subside soon, we have enough ammunition: RBI governor Trying to soothe the nerves of the investors after the global rout, the Reserve Bank of India Governor Raghuram Rajan has said that there is confidence that we are actually quite healthy, last time we did not have the confidence that is the big difference this time. We know this will pass and at some point the market will wake up and at that point start differentiating.' He further added that Based on what I have seen so far there is no strong reason to believe that we are on the verge of another crisis...but we have to be vigilant about some of those fragilities that have built up.' Talking about the China-led slowdown he said China is a big country and every adverse development has impacts, even as he warned against overburdening central banks to fix struggling economies. He said There is a lot of uncertainty about what the real numbers are...the numbers have to come out but China is a big country, has become very important to the global economy. Every adverse development across the world affects the rest of the world in some ways. The devaluation of the Chinese yuan on August 11 sparked a global selloff in equities, commodities and currencies. Govt to auction 20 major iron ore mines this year to revive mining industry In a bid to revive mining industry, the government is planning to auction about 20 major iron ore mines this year in its first such sale ever. This move will help to curb wrongdoing and is expected that mine sales will bring India closer to its target of tripling the steel capacity to 300 million tonnes by 2025 and relying less on ore imports, however it is unlikely to lead to an immediate boost in iron ore output at a time when there is a global glut. In the last financial year, India had produced 136 million tonnes of iron ore. About 1.5 million tonnes of ore are needed to make 1 tonne of steel, implying India's ore output will have to more than triple in 10 years if steel companies are to be self sufficient. Most of the iron ore mines being sold are in the southern state of Karnataka, known for its high-quality ore. This will greatly benefit local steelmakers like JSW Steel. Led by JSW's purchases, country s ore imports hit a record of over 15 million tonnes previous financial year as global prices collapsed. Mines Secretary Balvinder Kumar has said that Most of the states are in the midst of carrying out their pre-auction activities and hopefully by the end of October and November onwards they will start (auctions) and said that about 80 mines to be auctioned in the first phase, including limestone, gold and about 20 iron ore mines, furthermore, he added that States are estimating reserves. RBI governor also acknowledged that his situation was not typical in the current climate because unlike most global economies India still has high inflation at close to 6 percent. Interest rates are also high at 7.25 percent despite having been cut three times this year to try and stimulate growth. Source: Reuters, Ace Equity & LKP Research
Tech View CNX Nifty Technical View Nifty continued to show its pattern of rising during the day and giving up all its gains finally closing with considerable downside. However, Nifty is seen bouncing from 7750-7800 levels which implies immediate supports are likely to be around 7800 levels and unless Nifty breaches this level further downside will be restricted. Nifty is expected to face strong resistance at 7950-8000 levels. Nifty is expected to open with 70-80 points gap up and likely to test 7920 levels which if held on closing basis can lead to further upside in momentum and if it fails to hold 7920 levels then an intraday fall till 7850 can be seen. IMPORTANT LEVELS FOR THE DAY Support BSE NSE BANKNIFTY S1 25,535 7738 16805 S2 25,153 7622 16578 Resistance R1 26,151 7928 17172 R2 26,533 8044 17398 Pivot 25,843 7,833 16,988
Tech View PIVOT POINTS Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2 ACC 1360 1407 1384 1365 1346 1323 GAIL 283 302 291 283 274 263 ADANIENT 72 78 74 72 69 66 GLENMARK 1197 1254 1216 1186 1156 1119 ADANIPORTS 348 373 358 346 335 320 GMRINFRA 12 13 12 12 11 10 ADANIPOWER 22 24 23 21 20 19 GODREJIND 341 369 356 345 334 320 ALBK 83 88 85 83 80 77 GRASIM 3412 3583 3499 3432 3365 3282 AMBUJACEM 198 215 207 201 195 187 HAVELLS 259 272 264 258 251 243 ANDHRABANK 63 67 65 64 63 61 HCLTECH 902 977 939 907 876 837 APOLLOHOSP 1253 1337 1298 1265 1233 1193 HDFC 1102 1208 1158 1118 1078 1028 APOLLOTYRE 179 196 185 177 168 158 HDFCBANK 1014 1045 1030 1017 1005 990 ARVIND 257 274 266 259 252 244 HDIL 62 67 64 62 60 57 ASHOKLEY 88 94 90 87 84 80 HEROMOTOCO 2393 2518 2455 2403 2352 2289 ASIANPAINT 852 885 869 856 843 827 HEXAWARE 225 251 239 228 218 206 AUROPHARMA 724 789 751 720 689 651 HINDALCO 80 84 82 80 79 77 AXISBANK 496 514 504 495 487 477 HINDPETRO 808 869 841 818 795 767 BAJAJ-AUTO 2245 2405 2300 2216 2132 2028 HINDUNILVR 855 883 869 858 846 832 BANKBARODA 177 188 183 179 174 169 HINDZINC 127 136 130 126 121 115 BANKINDIA 139 149 144 139 135 130 IBREALEST 60 70 63 58 52 46 BATAINDIA 1040 1111 1067 1032 997 953 ICICIBANK 278 288 283 279 275 270 BHARATFORG 1108 1246 1178 1122 1066 998 IDBI 56 62 59 56 53 50 BHARTIARTL 339 362 351 342 333 322 IDEA 152 162 156 152 147 142 BHEL 240 262 247 236 224 210 IDFC 129 136 133 130 128 124 BIOCON 425 446 435 425 416 405 IFCI 20 21 20 19 19 18 BPCL 838 911 877 849 821 787 IGL 460 473 465 459 453 446 CAIRN 130 141 135 129 124 117 INDIACEM 70 80 75 71 68 63 CANBK 279 302 291 281 272 260 INDUSINDBK 854 899 877 860 842 820 CENTURYTEX 552 601 570 545 521 490 INFY 1065 1126 1097 1074 1050 1021 CESC 537 583 553 530 506 476 IOB 35 37 36 35 35 34 CIPLA 637 661 650 640 630 619 IOC 394 436 415 398 382 361 COALINDIA 358 375 365 357 349 339 IRB 220 240 227 217 207 194 COLPAL 1917 1968 1936 1910 1884 1852 ITC 318 327 322 317 313 307 CROMPGREAV 173 189 178 170 161 151 JINDALSTEL 67 73 70 68 65 63 DABUR 275 287 281 276 271 265 JISLJALEQS 57 62 59 56 53 49 DISHTV 106 118 111 105 100 92 JPASSOCIAT 9 10 9 9 8 7 DIVISLAB 2158 2508 2345 2214 2082 1919 JPPOWER 6 6 6 6 5 5 DLF 111 119 115 111 107 103 JSWENERGY 69 81 74 68 63 56 DRREDDY 4061 4274 4152 4054 3956 3834 JSWSTEEL 891 957 918 887 856 817 EXIDEIND 153 159 156 154 151 148 JUBLFOOD 1631 1712 1667 1630 1592 1547 FEDERALBNK 61 65 63 61 59 57 JUSTDIAL 770 852 813 783 752 713
Tech View Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2 KOTAKBANK 627 666 648 633 618 599 TATACHEM 398 432 416 403 390 374 KTKBANK 121 127 124 122 120 117 TATACOMM 380 409 395 384 372 358 L&TFH 62 65 63 62 60 58 TATAGLOBAL 117 124 120 117 115 111 LICHSGFIN 428 449 439 430 422 411 TATAMOTORS 335 364 346 332 317 300 LT 1592 1686 1642 1606 1571 1526 TATAMTRDVR 226 247 235 226 216 204 LUPIN 1810 1966 1894 1835 1776 1704 TATAPOWER 60 65 62 60 57 55 M&M 1216 1306 1263 1228 1192 1149 TATASTEEL 216 230 221 215 208 200 M&MFIN 254 269 262 256 250 243 TCS 2577 2751 2654 2576 2497 2400 MARUTI 4207 4392 4281 4192 4102 3991 TECHM 507 554 532 515 498 476 MCDOWELL-N 3109 3326 3219 3133 3047 2940 TITAN 325 344 334 326 318 309 MCLEODRUSS 166 182 174 168 162 154 UBL 840 909 875 848 821 787 MRF 40070 42201 40881 39814 38747 37427 UCOBANK 43 46 45 44 42 41 NHPC 16 18 17 17 16 15 ULTRACEMCO 2905 2999 2941 2894 2847 2789 NMDC 92 97 94 93 91 89 UNIONBANK 170 183 177 172 167 161 NTPC 120 129 124 120 116 110 UNITECH 6 7 6 6 6 5 OFSS 4069 4360 4211 4091 3971 3823 UPL 505 540 521 505 489 470 ONGC 225 247 237 228 220 209 VOLTAS 270 286 277 269 261 252 ORIENTBANK 130 140 135 132 128 123 WIPRO 551 569 559 550 542 532 PETRONET 179 187 183 179 176 171 YESBANK 682 724 700 680 660 635 PFC 211 243 227 214 202 186 ZEEL 369 395 380 368 357 342 PNB 142 150 146 142 139 135 POWERGRID 131 137 134 131 128 124 PTC 55 67 61 55 50 44 RCOM 52 59 55 52 49 45 RECLTD 240 270 252 238 224 207 RELCAPITAL 295 329 308 291 274 253 RELIANCE 853 904 878 856 835 808 RELINFRA 337 385 353 327 300 268 RPOWER 37 40 38 36 35 33 SAIL 49 52 51 50 48 47 SBIN 246 259 253 248 243 237 SIEMENS 1225 1326 1275 1234 1193 1142 SRTRANSFIN 812 847 829 815 801 783 SUNPHARMA 873 924 900 881 861 837 SUNTV 326 349 335 323 312 297 SYNDIBANK 84 88 86 84 83 81
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