Morning Notes LKP Advisory 20 Oct-2014 FII's & DII's in equity Indices 17-Oct 16-Oct % Chg. Major Indices 17-Oct 16-Oct % Chg. S&P BSE SENSEX 26,109 25,999 0.42% CAC 40 Index 4,033 3,919 2.92% 17-Oct 7,780 7,748 0.41% DAX Index 8,850 8,583 3.12% Dow Jones Industrial Av S&P CNX NIFTY S&P BSE MID CAP S&P BSE SMALL CAP 9,272 9,244 0.31% 10,314 10,343 -0.28% Rs.Crs Buy Sell FII' Investments 3554 4984 2566 1829 Net -1430 16,380 16,117 1.63% DII's Investments FTSE 100 Index 6,310 6,196 1.85% FII's contribution to the total turnover 43% 737 Nasdaq Composite Inde 4,258 4,217 0.97% DII's contribution to the total turnover 22% BSE Sectoral Indices FII's in Derivatives S&P BSE BANKEX 18,240 17,803 2.46% Major Asian Indices 17-Oct 16-Oct % Chg. S&P BSE CAPITAL GOODS 14,244 13,984 1.86% Hang Seng 23,023 22,901 0.53% S&P BSE CONSUMER DURA 9,281 9,116 1.81% Nikkei 225 14,533 14,738 -1.40% Net 1030 624 -159 -90 S&P BSE POWER 1,989 1,963 1.34% KOSPI Index 1,901 1,919 -0.95% OI 9986 69721 42654 2728 S&P BSE PSU 7,857 7,774 1.06% SSE Composite Index (S 2,341 2,357 -0.65% Chg.OI 13.6% 5.6% 1.6% S&P BSE REALTY 1,430 1,416 0.96% Taiwan Weighted 8,513 8,634 -1.40% FIIs' contribution to the total Derivatives turnove S&P BSE AUTO 17,019 16,901 0.70% S&P BSE HEALTHCARE 13,467 13,379 0.66% Commodities (MCX) 17-Oct 16-Oct % Chg. 17-Oct 16-Oct % Chg. S&P BSE OIL & GAS 10,542 10,504 0.36% Aluminium (31OCT2014 120 118 1.99% USDINR 29-OCT-2014 61.59 62.02 -0.69% 7,308 7,297 0.15% Copper (28NOV2014) 409 409 0.06% EURINR 29-OCT-2014 78.94 79.04 -0.13% 10,852 10,837 0.14% Crude (20OCT2014) 5,095 5,109 -0.27% JPYINR 29-OCT-2014 57.77 58.72 -1.61% S&P BSE FMCG S&P BSE METAL S&P BSE TECk S&P BSE IT 17-Oct Rs.Crs Index Fut Index Opt Futures (NSE) Stock Fut Stock Opt 1% 19% 5,657 5,812 -2.67% Gold (5DEC2014) 27,256 27,449 -0.70% FTSE100 (21-Nov-2014 6249 6150 1.61% 10,131 10,553 -4.00% Silver (5DEC2014) 38,399 38,872 -1.22% S&P500 (21-Nov-2014 1879 1838 2.24% Chg % Chg 323 11 3.6 888 29 3.4 ICICIBANK HDFCBANK 1508 48 3.3 M&M 1258 39 BHEL 226 Company LTP Chg % Chg 2433 -245 -9.2 HCLTECH 1510 -146 -8.8 JINDALSTEL 147 -4 -2.6 3.2 HINDALCO 139 -4 -2.5 7 3.1 SSLT 234 -6 -2.3 Chg % Chg Company LTP Chg % Chg HCLTECH 1506 -150 -9.1 TCS 2445 -234 -8.7 7 4.6 217 9 4.1 UBL 661 25 3.9 SSLT 233 -7 -2.8 30 1 3.7 HINDALCO 140 -3 -2.2 CANBK 384 13 3.5 JINDALSTEL 148 -3 -2.2 Company LTP Chg % Chg Company LTP Chg % Chg 42 6.1 42 6.0 Top Losers 733 739 BSE Midcap NBCC EMAMILTD BSE 100 154 Top Losers IDEA CMC 1873 -315 -14.4 ATUL 1287 -149 -10.4 212 -14 -6.4 64 -4 -5.9 385 -23 -5.7 ANDHRABANK 72 4 5.9 EDELWEISS 48 3 5.6 KSK ORIENTBANK 247 12 5.1 PIIND Company LTP Chg % Chg INSECTICID 771 103 15.5 PFLINFOTC 501 42 9.2 SRSREAL 47 4 8.7 IVRCLINFRA 16 1 7.5 KDJHRL 43 3 7.4 RALLIS Company Top Losers Top Gainers BSE Midcap BSE Smallcap Top Gainers LTP TCS UNIONBANK JPASSOCIAT Company CNX Nifty LTP ZEEL Top Losers Company BSE Smallcap CNX Nifty BSE 100 Top Gainers Top Gainers LTP Chg % Chg ASTAR 1170 -210 -15.2 DICIND 420 -72 -14.7 RSSOFTWARE 649 -82 -11.2 34 -3.7 -9.9 1 -0.1 -9.0 SPICEMOBI INDINFO Domestic Market View Markets likely to see early Diwili with a good start The Indian markets showed the signs of rally and had ended with decent gains in last session. Today, the start of the Diwali week is likely to see some fireworks with a good gap-up opening. Traders will be getting a boost with ruling party’s victory in two state assembly elections of Maharashtra and Haryana, which will give Narendra Modi government a tremendous morale boost to pursue economic reforms. Meanwhile, according to IMF's latest world economic outlook, India is poised to become a USD two trillion economy this year, while its GDP size would cross another milestone of USD three trillion after five years in 2019. There is another news that will be aiding the strength in the markets with the government raising the price of gas from domestic fields to $5.6 per unit, around 33% higher from $4.2 at present. The new price would come into effect from November 1 and would be revised every six months with a view to ensuring “stability in the market.” However, the same decision is likely to weigh negatively on the fertilizers and power stocks. There will be some buzz in the telecom sector, as an inter-ministerial panel of Telecom Commission has said that the proposed telecom spectrum auction should be completed by February 28 next year. Domestic Market Overview Benchmarks snap two days losing streak; Sensex recaptures 26,100 level Snapping two days losing streak, Indian equity benchmarks ended the session with a gain of around half a percent, amid a rebound in European shares. Domestic bourses witnessed volatility throughout the session as key gauges entered into negative terrain after a flat-to-positive start as sell off by foreign institutional investors (FIIs) was massive who offloaded Indian shares worth Rs 1,128 crore on October 16, 2014. But recovery in second half of trade helped markets to their crucial 26,100 (Sensex) and 7,750 (Nifty) bastions. Traders took some comfort from Reserve Bank of India’s (RBI) Governor Raghuram Rajan’s statement that India is seeing a pick-up in economic growth although more could be done to support that on a sustainable basis, while noting inflation was also easing. He has also said that a growth of 7 percent is possible in shortterm but major reforms will be needed to take it to higher levels. Further, expectations that the BJP would form the government in Maharashtra, the country’s largest industrial State, also boosted investor sentiment. The Indian rupee firmed up against the US dollar and was trading higher at Rs 61.48 compared to the previous close of Rs 61.83 tracking gains in Asian currencies. Meanwhile, banking shares remained in demand after the Wholesale Price Index (WPI)-based inflation declined to its lowest level in five years at 2.38% in September from 3.74% in the previous month. Power stocks too participated in the rally despite the looming crisis within sector with over 60 per cent thermal power stations grappling with critical coal shortage. On the flip side, selling was witnessed in software and technology counters, led by around 8% fall in TCS after reporting lower-than-expected Q2 numbers. TCS reported around 6% drop in net profit at Rs 5,244 crore for the second quarter ended September 2014 compared with Rs 5,568 crore in the first quarter ended June 2014. Meanwhile, HCL numbers too remained below street expectation, although its profit increased 32% year on year but was up by only 2.1% sequentially. Its revenues grew 1.9% sequentially to $1,433 million, lagging behind its larger rivals Infosys and TCS. Global Market Overview Asian markets ended mixed on Friday Asian markets ended mixed on Friday, with Japanese stocks falling for a second day, as banks and exporters retreated. China will set an economic growth target of about 7 percent for 2015, tolerating the weakest expansion in a generation as leaders tackle debt risks and imbalances. The PBOC cut the interest rate it pays lenders for 14-day repurchase agreements for the second time in a month. Next week’s data -including GDP, industrial production and investment -- will help show whether more easing is needed. Foreign direct investment commitments in Indonesia rose at a slower pace in the first nine months of 2014 compared with a year earlier, highlighting sluggish investment growth in Southeast Asia’s largest economy. Commitments in January-September were Rp 228.3 trillion ($18.7 billion), a 14.6 percent increase from the same period of 2013. US markets closed higher; Dow snaps 6-day losing streak The US markets closed higher on Friday, with Dow snapping 6-day losing streak, as earnings beat estimates, consumer confidence reached a seven-year high and investors speculated that central banks will add more economic stimulus. On the economy front, consumer sentiment in October rose to a reading of 86.4 from 84.6 in September, marking the highest level since July 2007. The index was as high as 96.9 in January 2007 and was as low as 55.8 in August 2011. The pace of home construction climbed last month on a jump in apartment building. Construction started on new US homes rose 6.3% in September, with the annual rate hitting 1.02 million, following a sizable August drop. Signaling a continuation of the market’s rebound, the pace of total home-building starts was up 17.8% from the year-earlier period. Dow Jones Industrial Average added 263.17 points or 1.63 percent to 16,380.41, Nasdaq was up by 41.05 points or 0.97 percent to 4,258.44, while S&P 500 ended higher by 24.00 points or 1.29 percent to 1,886.76. LKP Advisory Index Futures (OI in '000 Shares) Future Chg Spot Chg Prem / 17-Oct (%) 17-Oct (%) Disc Total Open Interest 17-Oct Chg (%) NIFTY 7,817 0.50 7,780 0.41 37.4 17,159 9.0 CNXIT 10,786 -3.79 10,746 -3.84 39.4 48 13.1 BANKNIFTY 15,991 2.14 15,930 2.50 61.2 1,894 11.1 Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares) Symbol Total OI 17-Oct % Chg. UNIONBANK 10,494 % Del. Prev % Del. 20% 16% Del Qty Cash Market 17-Oct 1,068,130 8% Increase Del Qty Spot (Rs.) Fut (Rs.) Spot Chg (%.) Fut Chg (%.) Prem / Disc 426,347 218 217 4.2% 4.9% -0.6 BHARTIARTL 8,357 5% 3,405,834 72% 61% 889,325 396 398 2.0% 2.3% 2.1 ZEEL 6,248 5% 1,817,344 33% 25% 1,578,375 322 322 3.3% 2.8% -0.3 DRREDDY 1,181 4% 232,710 63% 69% 13,648 2919 2934 0.5% 0.5% 15.8 HDFCBANK 37,130 4% 1,812,987 61% 48% 1,102,861 885 892 3.1% 3.3% 6.5 FEDERALBNK 16,468 3% 2,427,719 28% 19% 805,404 136 137 3.3% 3.5% 0.9 IDFC 48,824 3% 2,495,217 42% 39% 511,834 140 139 2.0% 1.9% -0.3 TATAPOWER 25,052 2% 2,970,367 53% 51% 725,332 85 85 1.4% 1.7% 0.5 KOTAKBANK 2,610 2% 808,475 70% 65% 186,557 1000 1005 0.9% 1.3% 5.2 MARUTI 1,908 1% 139,461 45% 38% 67,737 2941 2957 0.1% 0.6% 15.4 Increase in Del Qty Spot (Rs.) Fut (Rs.) Spot Chg (%.) Fut Chg (%.) Prem / Disc -8.8% -8.6% 8.0 Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares) Symbol TCS Total OI 17-Oct % Chg. 5,283 % Del. Prev % Del. Del Qty Cash Market 17-Oct 18% 2,877,694 52% 54% 1,759,179 2441 2449 HCLTECH 3,330 18% 2,710,947 59% 70% 1,771,338 1506 1508 -9.1% -9.3% 2.4 GLENMARK 2,286 17% 752,055 74% 44% 552,925 710 715 -1.2% -1.2% 4.5 859 10% 117,202 47% 44% 67,330 1211 1219 -1.2% -1.1% 7.1 BATAINDIA ADANIPORTS 10,668 8% 1,417,417 40% 34% 578,710 250 252 -1.0% -0.9% 1.3 HINDALCO 31,458 7% 7,113,568 50% 49% 910,237 139 140 -2.1% -2.1% 0.8 TATAMOTORS 20,587 7% 5,434,116 54% 44% 2,361,057 476 478 -1.7% -1.4% 2.6 375 6% 173,743 70% 47% 124,707 1640 1640 -0.1% 0.1% 0.5 SSLT 20,060 6% 2,824,551 46% 42% 123,413 233 234 -2.7% -2.6% 1.4 HEXAWARE 11,482 3% 1,061,911 33% 25% 589,215 171 172 -2.8% -2.8% 0.9 JUSTDIAL Open Interest Break-up (Rs. in Cr.) 17-Oct 16-Oct Change in OI % Chg INDEX FUTURES 16,569 15,005 1,565 10.43 INDEX OPTIONS 123,831 119,986 3,845 3.20 TOTAL INDEX 140,401 134,990 5,410 4.01 54,189 52,400 1,788 3.41 STOCK FUTURES STOCK OPTIONS 19,429 18,896 534 2.82 TOTAL STOCKS 73,618 71,296 2,322 3.26 GRAND TOTAL 214,019 206,286 7,732 3.75 FII's 125,089 119,503 5586 4.67 88,930 86,784 2146 2.47 Others LKP Advisory Corporate News ¾ Sharon Bio-Medicine’s recently expanded formulation plant area located at Selaqui, Uttarakhand has been inspected by UKMHRA. The United Kingdom - Medicine & Health Care Product Regulatory Agency (UKMHRA) team has conducted the inspection for Good Manufacturing Practices (GMP) for formulation plant area. The intimation from the authorities is expected to be received by November, 2014. ¾ OCL India has reportedly launched special cement ‘Konark DSP cement’ for concrete casting. The product would be available in West Bengal at a premium over normal bags. ¾ Brigade Group will invest Rs 500 crore in Gujarat International Finance Tec-City (GIFT City), India’s first globally benchmarked International Financial Services Centre (IFSC) over next few years. The allotment of Development Rights for 1.1 million square feet of Built Up Area (BUA) has been made to the Group for development of Commercial, Residential, Retail Mall and Hotel projects in SEZ & Non-SEZ Area in GIFT City. ¾ BEML, a premier domestic manufacturer of Mining & Construction equipment, has opened a regional office at Bangalore adding to its 11 existing regional offices spread across the Country. The Bangalore Regional Office will augment the needs of its customers in providing total solutions for Mining & Construction application under one- roof. ¾ Sagar Cements has received final approval for the acquisition of 100% equity stake in BMM Cements, which owns a cement plant of 1 million tonne capacity per annum and a captive thermal power plant of 25 MW capacity in Gudipadu near Tadipatri Anantapur District in the state of Andhra Pradesh. The board of directors at their meeting held on October 17, 2014 has approved for the same. ¾ Tata Power’s 100% subsidiary - Tata Power Solar (TPS), one of the pioneering solar manufacturers in the world, has launched its latest product line in LED home lighting. With the extended Tata Solar Diva range of lanterns and table lamps (5L, 15L2 and 25L) as well as Tata Solar Venus range of home lighting solutions (15L and 75L), consumers can now enjoy uninterrupted power supply at an affordable cost. This latest improved and diverse range of solar products will be available this Diwali, at select markets. ¾ Repco Home Finance has received an approval from Reserve Bank of India (RBI) whereby the ceiling for foreign investment in the company under the Portfolio Investment Scheme has been enhanced to 49%. The name of the company has been removed from the Ban ListFII/RFPIs. ¾ Orbit Exports has permanently closed down one of its factory situated at Plot No G-99, Additional MIDC, Jalgaon in state of Maharashtra with effect from October 17, 2014. All the manufacturing activities and operations in the said factory have been permanently and irrevocably closed down. ¾ Everest Industries has received an approval for setting up of a 72,000 MTPA Fibre Cement Boards Plant in UAE through its wholly owned subsidiary company in Mauritius subject to grant of applicable approvals. The board of directors at their meeting held on October 17, 2014 has approved for the same. ¾ Suzlon Group, the world’s fifth largest wind turbine maker, has bagged orders for a combined capacity of 150 MW. This combined capacity includes orders from corporate houses such as Malpani Group, Rajasthan Gum Group, KRBL, Sterling Agro Group and an assortment of SMEs (Small and Medium Enterprise). The 150 MW order received is a significant development since it demonstrates renewed customer interest to harness wind energy post the reinstatement of Accelerated Depreciation (AD) policy by the Government of India. The projects are scheduled for execution across eight states in India with high wind potential. ¾ National Buildings Construction Corporation (NBCC) has formed a wholly owned subsidiary company in the name and style of -- NBCC Services -- to carry on the business of providing post construction maintenance services and to act as an execution and implementation agency for undertaking Corporate Social Responsibilities projects & related activities. ¾ BASF India has decided to divest the textile chemicals business to Archroma. The move comes in the wake of its parent company BASF SE’s decision to divest the global textile chemicals business to Archroma. This transaction is expected to close in the first quarter of 2015. ¾ Clariant Chemicals (India) has opened its first regional innovation centre (RIC) in India at its headquarters in Navi Mumbai. The new facility will host about 100 technical employees in chemical research and application development. LKP Advisory ¾ In a bid to add new products, Minda Industries has invested Rs 450 crore. Moreover, the company has entered into several new segments like fuel cap, die-casting, battery, CNG/LPG kits. This is its strategy to increase content per vehicle to step up engagement with automakers. ¾ Future Lifestyle Fashions has acquired 60% stake in Elisir Lifestyle, a company engaged in business of manufacture, supply and distribution of footwear and accessories in India. ¾ In a bid to trim debt of Rs 60,000 crore by disposing off assets, Jaiprakash Associates is reportedly in talks with Shree Cement to sell its 2.1 million tonne Bhilai Cement unit for Rs 1,800 crore. The negotiation with Shree Cement is at an advanced stage and the deal is likely to be completed by October. ¾ Crompton Greaves is planning to demerge its consumer products business unit into a separate company. With this, the company has opened the doors for foreign investors by raising the investment limit to 100 per cent of the paid-up equity share capital. ¾ Premier Synthetics has sold 100% equity holdings of Premier Equity. Pursuant to this sale, Premier Equity is no more a subsidiary company of Premier Synthetics. ¾ Mahindra Lifespace Developers has acquired a land parcel in MMR region for residential development having as estimated potential of around 0.33 million square feet of saleable area. It will be a joint development project under residential housing segment. ¾ CMC’s board has approved the amalgamation of CMC with Tata Consultancy Services (TCS) pursuant to and subject to the provisions of sections 391 to 394 of the companies act, 1956. ¾ DQ Entertainment (DQE) is teaming up with Italian public broadcaster Rai Com, to co-produce a new animated series called ‘Pio The Chick’, based on a successful online property. The principal terms of this deal have been agreed by both parties at the recently concluded MIPCOM in Cannes and the final agreement is expected to be signed imminently. ¾ CHL’s subsidiary company - CHL International has commenced its operation of hotel under the brand ‘Sheraton’ Dushanbe at Dushanbe, Tajikistan since September 06, 2014. The Hotel Sheraton Dushanbe stands as a land mark in the Capital city of Dushanbe, Tajikistan. The city Dushanbe is ideally situated and has now become a focal point of many countries such as USA, France and India who are making a substantial presence in Tajikistan. ¾ The Tata Motors Group global wholesales in September 2014, including Jaguar Land Rover, were 80,104 vehicles. Cumulative wholesales for the fiscal were 461,996 vehicles. Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in September 2014 were 34,918 units. Cumulative commercial vehicles wholesales for the fiscal were 184,196 units. Global wholesales of all passenger vehicles in September 2014 were 45,186 units. Cumulative passenger vehicles wholesales for the fiscal were 277,800 units. ¾ Bharat Heavy Electricals (BHEL) has successfully commissioned a 600 MW thermal unit in state of Madhya Pradesh achieving yet another landmark. The unit has been commissioned at Madhya Pradesh Power Generating Company’s 2x600 MW Shree Singaji Thermal Power Project, located near Dongaliya village of Khandwa District of Madhya Pradesh. ¾ Essar Steel is planning to re-start pellet production at its cyclone-hit Visakhapatnam unit in two-three days, even as work is under way to restore the plant. The company has an eight-million-tonne-per-annum (mtpa) pellet plant in Visakhapatnam and another of six-mtpa at Paradip (Odisha), which were not affected in the recent cyclone. The iron ore required for the pellet plant is pumped through a slurry pipeline from the eight-mtpa beneficiation plants at Bailadilla (Chhattisgarh) and 12-mtpa plant at Dabuna (Odisha), which have rich iron ore deposits. ¾ Tata Steel’s 100% indirect subsidiary - Tata Steel UK Holdings (TSUKH) has executed agreements for the refinancing of its bank debt through term loan and revolving credit facilities of euro 3.05 billion. The debt was originally incurred in relation with the acquisition of Corus Group plc in 2007. The new financing structure consists of a 5-year loan of euro 370 million, a 6 year revolving credit facility for working capital purposes of 700 million pound and a 7-year loan of euro 1.8 billion, with more favourable terms and pricing relative to the earlier debt. ¾ Carborundum Universal has completed the acquisition of 49% equity stake of CRIL on October 16, 2014. With this acquisition, CRIL has become a wholly owned subsidiary of Carborundum Universal. The company had earlier executed a letter of intent (LoI) on August 04, 2014, with Cellaris, for the purchase of 6,725,250 equity shares representing the remaining 49% of the equity capital held by Cellaris in CRIL subject to necessary approvals. LKP Advisory ¾ Videocon Telecom, part of the diversified $4 billion Videocon Group, has added 1.07 lakh new mobile subscribers in September, 2014. Following the addition, the company’s total subscriber count stood at 59.41 lakh with a market share of 0.79%. ¾ Mahanagar Telephone Nigam (MTNL), the state owned telecom firm which operates in Delhi and Mumbai, has added 14,223 mobile subscribers in September, 2014. Following the addition, the company’s total subscriber count stood at 33.08 lakh with a market share of 0.44%. ¾ Idea Cellular, one of the biggest cellular carrier of the country, has added 17.25 lakh new mobile subscribers in September, 2014. Following the addition, the company’s total subscriber count stood at 14.35 crore. The country’s third-largest operator has a market share of 18.99%. ¾ Bharti Airtel, a leading global telecommunications company with operations in 20 countries across Asia and Africa, has added 10.22 lakh users in September, 2014. Following this, the company’s total customer base has increased to 21.15 crore with a market share of 27.98%. Economy ¾ India makes pitch for Chinese investments in SEZs After attracting Chinese investments to its industrial parks, India has now strongly pitched for China's participation in country’s Special Economic Zones (SEZ). An Indian delegation comprising senior officials from Commerce Ministry and SEZ developers, is presently on China tour to attend business meetings and visit a number of successful Chinese Special Economic Zone (SEZ) ventures to get feedback. It is reported that that delegation discussed the SEZ framework in the country and specific opportunities in select economic zones. India has asked Chinese companies to increase investment in country and take optimum advantage of ‘Make in India’ campaign, aimed at ensuring investor-friendly environment for businessmen in the country. The six-member delegation is first from India after Chinese President Xi Jinping visited India in September during which $20 billion commitment was made by China to invest in industrial parks in Gujarat and Maharashtra. During the period April 2000 to July 2014, China has invested only $411 million which is only 0.18 percent of India's total FDI received in the reported period. To enhance the Chinese investments in the country, the government has given an in-principle approval to a memorandum of understanding (MoU) allowing China to set up industrial parks in the country. The industrial parks are expected to include special economic zones (SEZs) and manufacturing zones. ¾ Central bank, Govt working on new monetary policy framework: RBI Governor The RBI Governor Raghuram Rajan has stated that the central bank and the government are in discussion to formulate a new monetary policy framework. The Governor added that the new policy will be in line with international standards and help central bank to make its objectives more expressive. Under the new monetary policy framework, the central bank will pursue the retail inflation target decided by the government. Further, Raghuram Rajan said that an institutional structure such as a financial resolution authority will be set up that will improve the functioning of the financial sector. Such an authority would be helpful in cleaning up the system by closing down entities which are in trouble and resurrecting promising ones. The Governor also clarified that there is no conflict between the RBI and government and both maintain a free, frank and cordial relationship with each other. It is reported that the internal work for the new monetary policy framework is in advanced stages and the government will have to take a final decision on it in consultation with the central bank. According to new framework, a separate monetary policy committee will be set up which will set the interest rate with a view to ensure that inflation remains within the targeted levels. The move to set a new monetary policy framework came in after the recommendation of Urjit Patel Committee, which had suggested that the RBI should target to bring down retail inflation to 8 percent by January 2015 and 6 percent by January 2016. LKP Advisory ¾ Coal stocks at power plants decline to 25-year low at 7.2 MT: CEA The Central Electricity Authority (CEA) has stated that Coal stocks at power plants hit a new low in 25 years as state-owned Coal India (CIL) and its subsidiaries failed to meet their production targets. In its latest report, the CEA highlighted that total fuel stocks at 103 coal-based stations have come down to 7.2 million tonnes (MT) compromising 6.58 million tonnes of indigenous coal and 706 tonnes of imported fuel. The CEA has noted that Coal India’s production is not in line with the demand of the power sector and its subsidiaries Northern Coalfields (NCL) and Central Coalfields etc are not producing coal as per their respective targets. Around 61 thermal power stations are grappling with critical coal shortage with less than a week’s stock at their disposal. Among these, 36 stations are reeling under acute shortage with less than four days of stockpiles at their disposal. Coal shortage in the country has become a concern for Indian power sector as coal-fired plants account for 59% of India's installed electricity capacity. Indian domestic coal demand is around 35 percent higher than domestic supply, resulting into a high deficit of which a huge part is being met by costly imports from Indonesia, South Africa and Australia. Coal India (CIL) is the only producer of coal in the country and is struggling to meet domestic coal requirements. CIL production fell 4.21 percent short of its production target to 462.53 million tonnes in FY14 amid concerns like shutdown of mining activities in Talcher Coalfields in Odisha. The government has set coal production target at 507 million tonnes to Coal India (CIL) for FY15. ¾ Pranab Mukherjee makes strong pitch for India as investment destination With an aim to enhance foreign direct investments (FDI) in the country, President Pranab Mukherjee wooed Finland investors and suggested them to take optimum advantage of the 'Make in India' programme. Promising a business-friendly environment which is ‘predictable, facilitatory and transparent’ the President has asserted that India is fourth most attractive destination for FDI during 2014-16 owing to easing of restrictions, growth and investor friendly atmosphere promoted by the government. Making a strong pitch for bringing in investments, Mukherjee said that India has emerged as one of the largest global economies and country’s FDI policy widely seen to be amongst the most liberal in the emerging economies, allowing up to 100 percent FDI under the automatic route in several of our sectors and activities. Regarding the safety to investors from global shocks, President stressed that resilience of our economy is evident from the fact that the impact of the global financial crisis has been far less severe in India as compared to the other countries. ¾ RBI governor hopes the economy to grow by 5.5% this year Reserve Bank of India (RBI) governor Raghuram Rajan has expressed hopes on the Indian growth story and has said that the country is seeing a pick-up in economic growth and more can be done to support it on a sustainable basis. He said the government is focusing on improving the framework of doing business and expressed that it should be easier for businesses to grow in terms of finance and regulations among others. Rajan further said that “we are expecting 5.5% this year; it may go up little more to 6% next year and hopefully sevens the year after.” However he reiterated that major reforms will be needed to take the growth to higher levels and to sustain that, we have to think about how we reform the system of fundamentals. Denying any conflict with the government, he said that the government and the RBI enjoy a free, frank and cordial relationship. We discuss many things and we find and do what is in the best interest of the country. He said that there is discussion going on right now on a couple of things, the talks include setting objectives for the RBI and did not threaten the independence of the central bank and were instead issues being worked out between the two sides. Source: Reuters, Ace Equity & LKP Research LKP Advisory Tech View CNX NIFTY TECHNICAL VIEW Nifty has taken strong support at around 7700 level which is also where the 100 DMA is placed. Though Nifty bounced from lower levels it failed to cross 7800 level which is its immediate resistance. However, the fact that almost all the major sectors as well as midcap and smallcap space witnessed strength indicates that Nifty may continue its upside. If Nifty trades above 7800 level then it can test 7900 swiftly. Nifty will continue to take support at 7700. IMPORTANT LEVELS FOR THE DAY Support BSE NSE BANKNIFTY S1 26,221 7715 15607 S2 26,449 7642 15324 R1 25,852 7833 16064 R2 25,624 7906 16347 Pivot 26,036 7,774 15,836 Resistance . LKP Advisory PIVOT POINTS Scrip Name CMP RB2 RB1 PP SB1 SB2 ACC 1407 1456 1425 1400 1374 1343 Scrip Name CMP RB2 RB1 PP SB1 SB2 GAIL 448 465 457 449 442 433 ADANIENT 441 458 448 441 433 423 GLENMARK 710 738 723 712 700 685 ADANIPORTS 250 266 257 250 243 234 GMRINFRA 21 22 21 21 20 20 ADANIPOWER 43 44 43 42 42 41 GODREJIND 283 294 287 281 274 267 ALBK 103 109 105 102 99 96 GRASIM 3279 3363 3315 3275 3236 3188 AMBUJACEM 207 214 210 207 204 200 HAVELLS 268 278 271 266 260 253 HCLTECH ANDHRABANK 72 77 74 71 68 65 1506 1664 1591 1532 1473 1400 APOLLOHOSP 1022 1068 1045 1028 1010 987 HDFC 997 1032 1011 994 977 956 APOLLOTYRE 207 216 211 207 202 197 HDFCBANK 885 920 896 877 858 834 ARVIND 273 285 278 272 266 259 HDIL 77 83 79 76 72 68 43 45 44 43 42 41 2874 3076 2946 2841 2736 2606 ASHOKLEY HEROMOTOCO ASIANPAINT 640 657 647 638 629 619 HEXAWARE 171 186 178 171 165 157 AUROPHARMA 913 965 935 911 886 856 HINDALCO 139 149 144 141 137 132 AXISBANK 402 415 407 400 394 386 HINDPETRO 492 515 503 494 485 473 2373 2447 2409 2378 2347 2309 HINDUNILVR 726 755 741 730 719 705 872 892 880 871 861 849 HINDZINC 159 163 161 159 157 154 BAJAJ-AUTO BANKBARODA BANKINDIA 257 271 262 255 249 240 IBREALEST BATAINDIA 1211 1280 1248 1222 1196 1165 ICICIBANK 68 72 69 67 65 63 1505 1553 1521 1496 1470 1438 BHARATFORG 752 777 762 750 738 724 IDBI 62 64 63 61 60 59 BHARTIARTL 396 409 401 395 389 381 IDEA 154 164 157 152 147 141 BHEL 227 236 230 225 220 215 IDFC 140 145 141 139 136 132 BIOCON 468 490 476 464 452 437 IFCI 33 35 34 33 32 30 BPCL 667 689 677 667 657 646 IGL 412 430 421 413 405 396 CAIRN 276 281 278 276 273 271 INDIACEM 104 110 106 103 100 97 CANBK 384 407 392 380 368 353 INDUSINDBK 661 686 671 658 646 631 CENTURYTEX 512 542 523 507 491 472 INFY 3852 3989 3923 3871 3818 3752 CESC 671 721 698 679 660 637 IOB 59 61 60 58 57 56 CIPLA 596 626 606 591 575 555 IOC 366 382 373 365 357 348 COALINDIA 351 362 356 351 345 339 IRB 230 239 233 229 224 219 1696 1755 1728 1706 1684 1657 ITC 354 367 360 355 350 343 CROMPGREAV 191 209 198 189 181 170 JINDALSTEL 148 160 154 149 144 138 DABUR 206 212 209 207 204 201 JISLJALEQS 81 86 82 80 77 73 COLPAL DISHTV 55 56 55 54 53 52 1705 1760 1734 1713 1692 1666 111 123 116 110 104 97 DRREDDY 2919 3056 2979 2918 2856 2779 EXIDEIND 165 176 170 166 162 FEDERALBNK 136 145 139 134 129 DIVISLAB DLF LKP Advisory JPASSOCIAT 30 31 30 30 29 28 JPPOWER 12 13 12 12 11 11 JSWENERGY 70 74 72 69 67 65 JSWSTEEL 1132 1212 1162 1122 1082 1032 156 JUBLFOOD 1196 1253 1221 1196 1170 1139 123 JUSTDIAL 1640 1689 1663 1642 1621 1595 PIVOT POINTS Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2 KOTAKBANK 1000 1029 1010 995 980 961 TATACHEM 391 403 395 389 383 376 114 119 115 113 110 107 TATACOMM 366 378 371 366 360 354 65 68 66 65 64 62 TATAGLOBAL 153 157 155 153 151 148 333 350 339 330 320 309 TATAMOTORS 476 498 486 476 466 454 KTKBANK L&TFH LICHSGFIN LT 1453 1496 1469 1447 1426 1399 TATAMTRDVR 310 334 318 305 292 276 LUPIN 1347 1398 1364 1336 1308 1273 TATAPOWER 85 88 86 84 83 80 M&M 1254 1310 1276 1248 1220 1186 TATASTEEL 448 470 457 446 435 422 M&MFIN 278 292 285 279 274 267 TCS 2441 2573 2511 2461 2411 2348 MARUTI 2941 3016 2971 2935 2898 2853 TECHM 2273 2494 2364 2259 2153 2023 MCDOWELL-N 2373 2496 2434 2384 2334 2272 TITAN 381 398 387 378 369 358 MCLEODRUSS 254 267 260 253 247 240 UBL 661 696 675 658 641 619 30323 31533 30932 30445 29959 29358 79 84 81 78 76 72 NHPC 19 20 19 19 19 19 2318 2403 2359 2323 2288 2243 NMDC 160 165 162 159 156 152 UNIONBANK 218 231 222 215 208 200 UNITECH MRF NTPC 141 144 142 140 139 137 OFSS 3180 3263 3218 3181 3144 3099 ONGC 397 408 401 396 391 ORIENTBANK 247 264 253 244 PETRONET 188 193 190 188 18 19 18 17 17 16 323 336 328 321 315 307 385 VOLTAS 230 244 235 227 220 211 235 224 WIPRO 566 599 582 569 556 540 185 182 YESBANK 598 615 604 594 585 574 ZEEL 322 347 334 322 311 298 251 269 257 248 238 226 PNB 920 939 930 923 915 906 POWERGRID 134 137 136 134 133 132 82 85 83 82 81 79 592 612 601 592 583 572 RANBAXY RCOM 99 103 101 99 98 96 RECLTD 259 276 265 257 248 237 RELCAPITAL 452 473 459 447 435 421 RELIANCE 938 956 944 935 925 913 RELINFRA 554 582 566 553 540 524 RPOWER 69 71 70 69 69 67 SAIL 77 80 78 76 75 73 SBIN 2522 2593 2548 2511 2474 2428 SIEMENS 796 825 805 789 773 754 SRTRANSFIN 900 939 914 894 873 848 SSLT 233 245 239 234 229 224 SUNPHARMA 798 820 808 799 790 778 SUNTV 308 319 313 308 302 296 SYNDIBANK 114 121 117 113 109 105 LKP Advisory ULTRACEMCO UPL PFC PTC UCOBANK The information in this documents has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and is for general guidance only. 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