Morning Notes LKP Advisory 10 Nov-2014 Indices S&P BSE SENSEX S&P CNX NIFTY 7-Nov 5-Nov % Chg. Major Indices 7-Nov 6-Nov % Chg. FII's & DII's in equity 27,869 27,916 -0.17% CAC 40 Index 4,190 4,228 -0.89% 07-Nov 8,337 8,338 -0.02% DAX Index 9,292 9,377 -0.91% S&P BSE MID CAP 10,000 9,965 0.35% S&P BSE SMALL CAP 11,117 11,161 -0.39% Dow Jones Industrial Av Rs.Crs Buy Sell FII' Investments 8091 5554 2537 Net 1818 2011 -192 17,574 17,554 0.11% DII's Investments FTSE 100 Index 6,567 6,551 0.25% FII's contribution to the total turnover 53% Nasdaq Composite Inde 4,633 4,638 -0.13% DII's contribution to the total turnover 15% 7-Nov 6-Nov % Chg. FII's in Derivatives 07-Nov BSE Sectoral Indices 1,642 1,603 2.43% Major Asian Indices 14,885 14,553 2.28% Hang Seng 23,550 23,649 -0.42% S&P BSE TECk 6,001 5,971 0.49% Nikkei 225 16,880 16,792 0.52% Net S&P BSE CONSUMER DURA 9,746 9,713 0.35% KOSPI Index 1,940 1,936 0.18% OI 10,821 10,797 0.21% SSE Composite Index (S 2,418 2,426 -0.32% 7,531 7,521 0.13% Taiwan Weighted 8,913 8,891 0.24% S&P BSE BANKEX 19,854 19,872 -0.09% S&P BSE OIL & GAS 11,054 11,064 -0.09% Commodities (MCX) 7-Nov 5-Nov % Chg. Futures (NSE) 7-Nov 5-Nov 8,281 8,291 -0.11% Aluminium (28NOV2014 127 128 -1.01% USDINR 26-NOV-2014 61.85 61.64 0.34% 18,339 18,424 -0.46% Copper (28NOV2014) 413 411 0.56% EURINR 26-NOV-2014 76.72 77.01 -0.37% S&P BSE REALTY S&P BSE HEALTHCARE S&P BSE IT S&P BSE FMCG S&P BSE PSU S&P BSE AUTO Rs.Crs Index Fut Index Opt Chg.OI Stock Fut Stock Opt 332 114 -535 45 18573 60653 48163 1923 2.4% 3.0% 0.8% 22% FIIs' contribution to the total Derivatives turnove 27% % Chg. 2,134 2,148 -0.65% Crude (19NOV2014) 4,861 4,814 0.98% JPYINR 26-NOV-2014 53.76 53.91 -0.29% S&P BSE CAPITAL GOODS 15,945 16,061 -0.72% Gold (5DEC2014) 25,932 25,461 1.85% FTSE100 (21-Nov-2014 6573 6478 1.47% S&P BSE METAL 11,335 11,481 -1.27% Silver (5DEC2014) 34,796 34,271 1.53% S&P500 (21-Nov-2014 2031 2013 0.93% S&P BSE POWER Chg % Chg 135 8 6.3 373 18 5.2 DRREDDY ZEEL 3395 143 4.4 LUPIN Chg % Chg 250 -8 -3.2 2890 -73 -2.5 GAIL HEROMOTOCO 487 -11 -2.2 44 3.2 ASIANPAINT 646 -12 -1.8 895 24 2.7 SSLT 247 -4 -1.5 Company LTP Chg % Chg Company LTP Chg % Chg 59 8.0 8 6.2 ZEEL 373 18 5.1 1085 -36 -3.2 HINDPETRO 572 26 4.8 RELCAPITAL 468 -15 -3.0 DRREDDY 3400 147 4.5 UNIONBANK 215 -7 -3.0 Company LTP Chg % Chg Company LTP Chg % Chg ALLCARGO 281 34 13.8 BIRLACORPN 491 -35 -6.7 RISAINTL 277 27 10.8 83 -4 -4.6 Top Losers BSE Midcap SJVN GMRINFRA BSE 100 797 135 Top Losers CUMMINSIND DLF BHEL ABB UCOBANK 25 2 6.5 3369 196 6.2 NBCC 41 2 6.0 JPPOWER Company LTP Chg % Chg RATNAMANI 567 94 20.0 SUNDRMFAST 186 28 17.9 1 0 9.5 KOLTEPATIL INDINFO 206 16 8.7 LAOPALA 461 35 8.2 Top Losers Top Gainers BSE Smallcap LTP BHEL 1425 FSL Company SUNPHARMA ABBOTINDIA CNX Nifty LTP DLF Top Losers Company BSE Smallcap CNX Nifty BSE 100 Top Gainers Top Gainers BSE Midcap Top Gainers GMRINFRA 22 -1 -4.4 249 -8 -3.2 22 -1 -4.4 844 -39 -4.4 14 -1 -4.4 Company LTP Chg % Chg SIGNETIND 235 -51 -17.9 NILKAMAL 328 -48 -12.7 1145 -99 -7.9 ESCORTS GREENPLY 154 -13 -7.9 MANGIND 190 -15 -7.3 Domestic Market View Markets to make a cautious but positive start of the new week The Indian markets ended modestly in red in last session and bourses lost their way after the Services PMI showed weakest reading since July. Today, the start of the new data heavy week is likely to be positive and the traders will be first reacting to the cabinet expansion of the Narendra Modi government, with 21 new faces and changes in the leadership of key ministries. Meanwhile, echoing the sentiments of India Inc, the Confederation of Indian Industry (CII) has said that the ministry-expansion will help improve the focus on economic recovery. However, there will be some cautiousness in the market with Reserve Bank of India Deputy Governor H.R. Khan stating that India's inflation has a “long way” to go before it eases because of high input costs, while the reasons for elevated food price inflation remain “structural.” There is likely to be buzz in the PSU banking stocks, as the Finance Minister Arun Jaitley has said that the government is planning to bring down its stake in public sector banks to 52 percent so as to meet Rs 3 lakh crore capital requirement. The realty stocks too will be in action as the Finance Minister has also said that the government will amend the tough land acquisition law even if the opposition does not support. Domestic Market Overview Benchmarks witness consolidation on Friday Indian equity benchmarks made a flat close on the last day of holiday truncated week, with a negative bias as investors opted to book some profits after recent rallies. Market-participants also remained on sidelines ahead of portfolio rejig, which is likely to take place over the weekend. As per reports, at least a dozen new ministers are set to be inducted by Narendra Modi’s government as part of the cabinet expansion that is likely to take place on Sunday, November 9, 2014. Sentiments also remained dampened as the Paris-based think tank OECD, revising its forecast downwards, projected 5.4 per cent growth for the Indian economy this year, as global recovery continues at a moderate pace. Earlier in September, it had projected 5.7 per cent growth rate for India. However, downside remained capped on report that foreign portfolio investors (FPIs) bought shares worth a net Rs 1030.85 crore on November 5, 2014. depreciation in Indian rupee too dampened the sentiments. Rupee was trading at 61.62 per dollar at the time of equity markets closing compared with its previous close of 61.41. Meanwhile, metal shares edged lower after the services purchasing managers’ index (PMI) compiled by HSBC/Markit came lower at 52.9 in October, the weakest reading since July, from 53.5 in September. Moreover, banking stocks too lost sheen after global credit rating agency Moody’s said that the asset quality of state-owned banks will continue to be burdened by weak financial health of Indian corporate. Additionally, stocks related to infrastructure space witnessed profit booking after a smart rally on the back of government relaxed foreign direct investment (FDI) rules in the construction sector by reducing minimum built up area as well as capital requirement and easing exit norms. Global Market Overview Asian markets ended mostly in red on Friday Asian markets ended mostly in red on Friday, with Chinese stocks closing in red before the release of trade data scheduled for tomorrow. Meanwhile, China’s central bank has published details on its latest tool to provide liquidity as banks see a rate cut as unlikely. The People’s Bank of China confirmed it pumped 769.5 billion yuan ($126 billion) into the country’s lenders in the last two months through a newly-created mediumterm lending facility. The PBOC injected 500 billion yuan in September and another 269.5 billion yuan in October via the facility -- all termed at three months with an interest rate of 3.5%. On the other hand the Nikkei posted over half a percent of gains with Japanese companies heading towards their highest profits ever, as the falling yen boosts exporters. As the earnings season winds down in Japan -- almost all companies will have reported results by next week -- exporters are emerging as one of the biggest beneficiaries of Prime Minister Shinzo Abe’s economic policies. Taiwanese Trade Balance rose to a seasonally adjusted annual rate of 4.62B, from 3.50B in the preceding month. US markets closed mostly up on employment report LKP Advisory The US markets closed mostly higher on Friday, with two of the three main benchmarks capping a third straight week of gains. The S&P 500 and Dow Jones Industrial Average closed at record highs for the third consecutive day. On the economy front, the US generated 214,000 new jobs in October to nudge the unemployment rate down to a six-year low of 5.8%, another healthy increase in hiring that point to solid economic growth in the months ahead. Job creation in October marked the ninth straight month the economy has added 200,000 jobs or more, a feat last accomplished in 1994. Hiring in September and August were also higher than previously reported. The US has created 2.3 million jobs this year and is on track for the biggest gain in almost a decade. The unemployment rate, meanwhile, fell again as nearly 700,000 people found work. And another 400,000-plus joined the labor force; a good sign because it means people think more jobs are available. Consumer credit grew at a seasonally adjusted annual rate of 5.9%, for a gain of $15.9 billion, as demand for student and auto loans stayed strong. Non-revolving debt like car and student loans grew at a 7.3% rate, while revolving debts like credit cards rose at a 2% rate. For the third quarter, consumer credit grew 6.5%. Index Futures (OI in '000 Shares) Future Chg Spot Chg Prem / 7-Nov (%) 7-Nov (%) Disc Total Open Interest 7-Nov Chg (%) NIFTY 8,382 0.02 8,337 -0.02 44.6 24,859 2.0 CNXIT 11,519 0.23 11,469 0.11 50.8 24 0.1 BANKNIFTY 17,458 -0.68 17,372 0.00 85.4 2,210 -3.9 Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares) Symbol TATACHEM Total OI 7-Nov % Chg. 5,535 % Del. Prev % Del. Del Qty Cash Market 7-Nov Increase Del Qty Spot (Rs.) Fut (Rs.) Spot Chg (%.) Fut Chg (%.) Prem / Disc 1.0% 2.2 28% 476,045 57% 43% 136,295 419 421 1.1% PETRONET 5,974 18% 2,077,639 36% 61% 1,147,384 201 202 0.0% 0.0% 1.3 RANBAXY 8,566 12% 738,660 16% 27% 282,783 667 671 1.9% 1.9% 3.3 AXISBANK 28,765 8% 2,204,370 31% 37% 289,321 469 472 2.4% 2.5% 2.8 ZEEL 6,837 7% 2,513,729 56% 69% 203,077 372 374 4.8% 4.9% 2.4 SUNPHARMA 9,291 5% 1,816,951 46% 54% 398,184 894 896 2.6% 2.6% 1.5 943 4% 422,230 48% 73% 58,208 3397 3402 4.5% 4.4% 5.2 AUROPHARMA 8,530 3% 958,847 29% 32% 495,140 1028 1033 2.7% 2.7% 4.3 IOC 7,212 3% 2,433,620 61% 54% 1,242,017 375 377 1.6% 1.9% 2.1 66,420 2% 3,811,269 34% 30% 1,128,312 21 21 0.7% 1.2% 0.1 Increase in Del Qty Spot (Rs.) Fut (Rs.) Spot Chg (%.) Fut Chg (%.) Prem / Disc 8,367,576 2888 2906 -2.6% -2.0% 18.3 DRREDDY NHPC Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares) Symbol HEROMOTOCO Total OI 7-Nov % Chg. % Del. Prev % Del. 73% 71% Del Qty Cash Market 7-Nov 2,682 47% 8,963,904 KOTAKBANK 3,778 12% 912,096 75% 63% 312,505 1123 1130 -0.5% -0.4% 7.1 AMBUJACEM 6,383 7% 1,555,564 64% 58% 760,723 222 224 -0.5% -0.3% 1.6 TATASTEEL 20,058 6% 1,504,715 33% 33% 198,259 471 474 -1.4% -1.2% 2.8 PTC 7,996 5% 850,100 54% 42% 321,623 91 92 -0.7% -0.4% 0.7 M&M 3,662 5% 1,331,056 80% 71% 372,246 1239 1246 -1.4% -1.2% 7.4 JUSTDIAL 421 4% 112,597 44% 46% 4,831 1493 1501 -1.5% -1.0% 7.4 JISLJALEQS 30,984 4% 1,475,256 43% 33% 344,571 84 84 -3.3% -3.1% 0.5 ITC 28,124 4% 6,304,848 80% 77% 2,179,903 356 358 -1.0% -0.7% 2.2 2,085 3% 234,755 50% 49% 46,584 325 324 -1.9% -1.8% -0.3 SUNTV Open Interest Break-up (Rs. in Cr.) 07-Nov 05-Nov Change in OI INDEX FUTURES 24,924 24,662 262 % Chg 1.06 INDEX OPTIONS 105,803 102,105 3,698 3.62 TOTAL INDEX 130,726 126,767 3,960 3.12 STOCK FUTURES 59,822 58,919 903 1.53 STOCK OPTIONS 12,465 10,771 1,694 15.73 TOTAL STOCKS 72,287 69,691 2,596 3.73 GRAND TOTAL 203,013 196,457 6,556 3.34 FII's 129,312 126,405 2906 2.30 73,702 70,052 3650 5.21 Others LKP Advisory Tech View Corporate News ¾ Talwalkars Better Value Fitness, India’s largest fitness chain, is looking for potential launches of 20-25 gyms in Q3. The company is also confident of logging over 20 percent growth in FY15. It expects the club business to start earning revenues in H2FY16. ¾ State Bank of Bikaner & Jaipur (SBBJ) has received board’s approval for augmentation of capital by way of issue of Basel III compliant, unsecured, redeemable, non-convertible, subordinated Bonds for inclusion in Tier II capital aggregating to Rs 217 crore on private placement basis. ¾ Infosys, a global leader in consulting, technology, outsourcing and next-generation services, has announced a major recruitment drive in the US to support the growth of its business and enhance its capabilities. The company plans to hire 1,500 professionals for consulting, sales and delivery during the current financial year. In addition, it will hire close to 600 Bachelors and Masters Graduates from US Universities over the next twelve months. ¾ Tata Consultancy Services (TCS), a leading IT services, consulting and business solutions organization, has been recognized by Gartner, Inc. in the ‘Leaders’ quadrant of the Magic Quadrant for SAP Application Management Service Providers, Worldwide. ¾ Jet Airways (India) has received an approval for raising of long term finance in the form of Redeemable Preference Shares and / or NonConvertible Debentures and/or Loan from Shareholder up to a maximum of $300 million. ¾ JL Morison India has received an approval to start manufacturing of cosmetic products including Hair colour/Dye. The board of directors at their meeting held on November 07, 2014 has approved for the same. ¾ Color Chips (India) has received an approval to acquire Kamptos Technologies, a company dealing in SAP & ERP Products for expansion of the business activities in consonance with the business objects of the company. The board of directors at their meeting held on November 07, 2014 has approved for the same. ¾ The US Food and Drug Administration has rescinded approvals given to Ranbaxy Laboratories for two drugs in 2008. The tentative nod given to Ranbaxy to manufacture and sell esomeprazole magnesium delayed-release capsules (20 mg and40 mg) for heartburn and for antiviral valganciclovir hydrochloride tablets(450 mg), in February and June of 2008, respectively, have been withdrawn since the regulator felt its decisions to grant approval were in error. FDA has made its original decisions granting tentative approvals were in error because ofthe compliance status of the facilities referenced in the ANDAs at the time the tentative approvals were granted. ¾ Rain Cements (RCL), a wholly-owned subsidiary of Rain Industries Group is in the process of setting up a solar power plant in Andhra Pradesh with an investment of Rs. 140 crore. In order to enhance its foot print in Renewable Energy, Rain Group, through Rain Cements Ltd, is evaluating the possibility of setting up a 22 MW of solar power plant in Anantapur district of Andhra Pradesh.RCL had participated in the bids invited by Southern Power Distribution Company of Andhra Pradesh & Eastern Power Distribution Company Ltd of AP and had qualified in the evaluation process. ¾ CESC has allotted 76.21 lakh shares of Rs. 10 each at a premium of Rs. 634 a share to qualified institutional investors. The placement offer closed on October 29. The company had revised the floor price of Rs. 677.84 a share, allowing a discount of 5 per cent. The allotted shares represent 3.5 per cent of the paid-up equity of the company. The disclosures made in the placement document, allotment of two coal blocks to CESC has been cancelled and the company has to fork out Rs. 97 crore as penalty for the coal extracted after allocation of the mines. This came after the Supreme Court recently held that coal block allocations by the UPA Government to private miners was illegal. ¾ Reliance Industries Inc had agreed to consider the divestment of its Eagle Ford Shale midstream joint venture with partner Pioneer Natural Resources Co. Reliance owns a 49.9% stake in the business, EFS Midstream LLC, while Pioneer is the operator with a 50.1% stake in the Eagle Ford midstream system, which consists of 10 central gathering plants and about 460 miles of pipelines. ¾ Nestle is looking to focus majorly on the health, wellness and nutrition segments by expanding its portfolio of products containing low salt, sugar and trans-fatty acids. They as a company have recognised the value of nutrition, health and wellness and are working towards becoming a credible player in this segment, both globally as well as in India. LKP Advisory Tech View ¾ In a major relief for realty major DLF, the Securities Appellate Tribunal (SAT) on Wednesday allowed the company to redeem Rs 1,800crore invested in mutual funds. SAT had earlier asked DLF to file an affidavit by November 3, specifying the purpose for redeeming its mutual fund investments. DLF has mutual fund investments to the tune of Rs 2,500 crore, which are frozen following an order passed by Securities and Exchange Board of India (Sebi) that restrains the company from accessing the capital market for a period of three years. ¾ Dish TV India’s Sri Lanka based subsidiary Dish TV Lanka has been granted the 'Satellite Television Broadcasting License' (DTH License) by the Government of Sri Lanka to establish, operate and maintain Satellite Television Network for the purpose of Digital Television Satellite Broadcasting. ¾ Hinduja Global Solutions (HGS) has been featured as ‘Leader’ ranking in the NelsonHall Vendor Evaluation and Assessment Tool (NEAT) for Transformational Customer Management Services (CMS). HGS’ ranking as a Leader is based on the company’s ability to deliver immediate benefits to clients as well as meet their future requirements. ¾ Gabriel India has signed a technology license agreement with KONI B.V. (KONI), part of ITT Corporation, on November 06, 2014 for Commercial Vehicle, Buses and Industrial Equipment suspensions in India. ¾ Mahindra Comviva, a subsidiary of Tech Mahindra and a part of the USD 16.5 billion Mahindra Group, has entered into partnership with TRACE TV, one of the leading music channels to launch TRACE Music Stars across all Airtel operations in Africa. Contestants will have the chance to compete for a grand prize of 30,000 Euros and a recording deal with Universal Music. The winner will travel to New York to be personally mentored by American R&B and hip hop recording artist, songwriter, and record producer, AKON. The grand finale will be held on March 2015. This is the first of its kind partnership to promote Music Karaoke and VAS. ¾ Dr Reddy’s Laboratories and US firm Endo International Plc have received final approval from US Food and Drug Administration (US FDA) to make cheaper copies of Roche Holding AG's antiviral Valcyte. ¾ Wipro, a leading global Information Technology, Consulting and Business Process Services company and Red Hat, Inc (RHT), the world's leading provider of open source solutions, has announced the global expansion of their alliance to accelerate the deployment of open hybrid cloud solutions. As part of the expanded collaboration, Red Hat and Wipro will work together to develop and deliver enterprise-grade cloud solutions to the market, and will also jointly deliver next-generation DevOps solutions for continuous integration and testing. ¾ IRB Infrastructure Developers has received an approval for fund raising options and enabled special resolution for the purpose of further issue of securities for an amount not exceeding Rs 1,500 crore. The board of directors at their meeting held on November 05, 2014 has approved for the same. ¾ Infosys, a global leader in technology, consulting, outsourcing and next-generation services, has entered into a strategic partnership with Tableau Software, a global leader in rapid-fire, easy-to-use business analytics software. ¾ Wockhardt Hospitals has opened a 350-bed hospital in South Mumbai at an estimated cost of Rs 300 crore. The tertiary care hospital bundles major specialities including cardiac and critical care. ¾ Apollo Hospitals is reportedly planning to focus on rural sector. In this regard, the company will add at least 14 Reach Hospitals in rural regions at a cost of Rs 1,800 crore by 2016 and plans more in the coming years. ¾ Finolex Industries is planning to expand its product portfolio by entering into the water supply and water equipment business. Also, as a part of this, the company is planning to increase its capacity of the PVC pipes and fittings plants by 40 percent to 320,000 tonnes through an additional capital expenditure of Rs 90 crore spread over three years. ¾ Voltas has received an order for nearly 46,000 chocolate coolers from Cadbury. This success cements Voltas’ position as the market leader in Chocolate Coolers and Commercial Refrigeration products. The bulk of the orders were for the Counter-Top model of 33 litres capacity, popularly known as CT-33; and the remaining were for the 145 litres capacity Display Cooler (DC-145). ¾ Suzlon Energy has launched a new hybrid wind turbine generator that is nearly one-and-a-half times taller than the conventional wind turbine. The first of the 120 m tall hybrid tower was launced at a wind farm at Naniber in Kutch district of Gujarat. LKP Advisory Tech View ¾ Axis Bank, a private sector lender has signed a Memorandum of Understanding (MoU) with NongHyup Bank (NH Bank) to enhance cooperation in treasury, trade and other business between India and South Korea. NH Bank is one of the largest banks in South Korea with an asset base of $185 billion. ¾ Financial Technologies has reportedly sold its entire 25.64 per cent stake in Indian Energy Exchange to TVS Capital Funds-led consortium, which includes Kris S Gopalakrishnan, former Infosys executive Vice-Chairman, and Lakshmi Narayanan, Vice-Chairman of Cognizant for Rs 576.84 crore. With this, Financial Technologies will completely exit Indian Energy Exchange. ¾ Magma Fincorp has received an approval to exit the line of business comprising of the Gold Loans originated by the company which involves the grant of terms loans to individuals and/or small businesses (whether constituted as a company, a partnership firm, a sole proprietorship or otherwise) against the security of gold (Gold Loans). The board of directors at their meeting held on November 06, 2014 has approved for the same. ¾ Axis Bank has raised $20 million through senior notes in the International Market. The bank on November 06, 2014 has allotted Senior Notes aggregating to $20 million under the MTN Programme through its Dubai International Financial Centre (DIFC) branch. Economy ¾ Finance Minister promises more reforms, privatisation of loss making PSUs Assuring a transparent and rule-based policy environment, Finance Minister Arun Jaitley promised reforms in labour, land acquisition and insurance laws to make regulations in India more business-friendly. Terming reforms as a long journey, Finance Minister added that the government is of the view of consistently pursuing the reforms agenda to boost the economic growth rather than taking one or two big bang steps. By adding further, Arun Jaitley said that the government has introduced some labour reforms in Parliament which will be discussed in the upcoming winter session. The government is looking at changing some illogical provisions of land acquisition laws that have made it virtually impossible for companies to acquire land for industrial projects. On insurance sector, Jaitley expressed hope that the long-pending Insurance Amendment Bill, that seeks to raise FDI in the sector from existing 26 percent to 49 percent, will get Parliament nod in the upcoming Winter Session. Finance Minister also stressed that the government may privatize some loss making public sector units (PSUs). India has 79 loss making PSUs, of which 49 are sick enterprises. On ambitious divestment programme, Jaitley said the government would push ahead with divestment of its stake in state-owned firms but will retain majority stake in such companies. ¾ Indian power sector can attract $250 billion investment by 2019: Piyush Goyal Highlighting high growth potential of domestic power sector, Power Minister Piyush Goyal has asserted that power sector has the potential to attract $250 billion investments over the next five years, of which $100 billion will come from renewable energy sector and $50 billion for the transmission networks. Piyush Goyal added that at present the country produce one trillion units power a year and aim is to take it to two trillion by 2019. Renewable and stranded gas-based power plants only produce around 10 percent of total number of units and thus need to be revived. Minister further added that the government is taking measures to overcome fuel challenges to provide power to all 1.2 billion people. Government is planning to double coal production target to one billion tonnes in the next five years to meet rising energy demands in the country. The Minister also called for an increasing private sector role in coal production and expressed interest in new gas discoveries and ways to get gas plants back on stream. Industry installed power capacity stands at around 248 GW, out of which coal-fired plants account for about 59% and hydro plants accounts for around 17% of India's totalled installed electricity capacity. Presently, coal shortage in the country has become a key concern for Indian power sector. Indian domestic coal demand is around 35 percent higher than domestic supply. Coal India (CIL) is the only producer of coal in the country, which is struggling to meet domestic coal requirements. CIL production fell 4.21 percent short of its production target to 462.53 LKP Advisory Tech View 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 for FY15. ¾ Modified LPG subsidy scheme to be launched in 54 districts from November 15 Modified LPG subsidy scheme is all set to be launched in 54 districts from November 15 and will be rolled all over the country from January 1. This is after Oil Minister Dharmendra Pradhan reviewed preparedness for the launch of the Direct Benefit Transfer for LPG (DBTL) scheme in four of the 54 districts. The review with district authorities was conducted by Oil Minister in presence of officials from oil marketing companies and nationalized banks since the Minister laid emphasis on coordination among all the units for effective implementation of the scheme and smooth and flawless receipt of LPG subsidy by consumers in their bank accounts. Further, Pradhan also discussed the issues pertaining to difficulties in the earlier scheme. Under the scheme, LPG consumers will get cash subsidy in their bank accounts so they can buy a cooking gas cylinder at market price. LPG subsidy transfer has been a bumpy ride till now. To begin with, when the government launched the scheme making it compulsory for everyone to link their Aadhaar card to bank accounts to get the LPG subsidy refunded, many did not have an Aadhaar card, which in turn triggered a mad rush for application of Aadhaar card. However, those which had one, complained linking Aadhaar to their bank account was taking time and also there those middle class customers, which refused to take LPG cylinders as they were paying around Rs.1,200 with-out an assurance of receiving the subsidy. While in remote districts, people suffered as they had to travel long distances to withdraw the subsidy amount in absence of enough banks in particular areas. ¾ PSU banks asset quality to remain burdened by weak financial health of corporates : Moody's Credit rating agency, Moody’s Investor Service has said that the asset quality of state owned banks would continue to be burdened by weak financial health of Indian corporates. It highlighted that asset quality of public sector bank had hit the bottom and that its recovery would take some time. The agency also added that non-performing assets of banks would continue to be a drag on bank’s credit quality. However, Moody’s stated that it expects lower formation of net new performing loan for public sector banks than those observed over last three years, while estimating impaired loan ratio to stabilize around the current levels. Although, the agency expects the formation of new net performing loans to gradually decrease over next two years, it pointed that health of corporates in India, despite stabilizing, continues to remain fragile on an absolute basis with high debt levels and weak debt-servicing metrics. It noted that this would have a negative impact on public sector banks, which have a higher share of corporate loans in their loans books than private banks. ¾ OECD lowers Indian economic growth forecast to 5.4% for 2014 The Organisation for Economic Cooperation and Development (OECD) has lowered India's GDP growth forecast to 5.4% for this year from 5.7% projected earlier in September. Paris-based think tank, in its latest G20 economic outlook report, has revealed that global recovery continues at a moderate pace which could weigh on Indian economic growth prospect this year. However, growth will strengthen in India in coming year as investment picks up because of the improved political situation in the country. The OECD expects the Indian economy to expand 6.4% next year and 6.6 % in 2016. The report further added that pickup in growth after the sharp slowdown in 2012-13 will continue despite the tight monetary and fiscal stance. Further the factors like improved business sentiment resulting from reduced political uncertainty, deregulation of diesel and the government commitment to cut red tape are likely to boost economic growth. The outlook also projects inflation to head lower in future. Indian economic growth stayed below 5% for the second fiscal in a row at 4.7% during FY14. The factors like high interest rate and stubborn inflation, low investments and slow execution of infrastructure projects have impacted country’s economic growth. However, the economy has shown signs of nascent recovery and expanded at its fastest pace in more than two years by 5.7% during the April-June quarter of current fiscal as compared to 4.7% growth recorded in same quarter last year. ¾ Source: Reuters, Ace Equity & LKP Research LKP Advisory Tech View CNX NIFTY TECHNICAL VIEW Nifty is expected to witness some amount of consolidation for couple of trading sessions in absence of triggers from domestic as well as global front. IIP and Inflation data to be released this week is likely to influence the indices going forward. The index is expected to face resistance at 8400 level whereas support is seen at 8200 level in near term. IMPORTANT LEVELS FOR THE DAY Support BSE NSE BANKNIFTY S1 27,923 8286 17207 S2 27,983 8232 17069 R1 27,826 8373 17431 R2 27,766 8426 17570 Pivot 27,874 8,329 17,319 Resistance . LKP Advisory PIVOT POINTS Scrip Name CMP RB2 RB1 PP SB1 SB2 ACC 1509 1554 1528 1507 1487 1461 Scrip Name CMP RB2 RB1 PP SB1 SB2 GAIL 485 507 497 488 480 470 ADANIENT 475 495 484 475 466 455 GLENMARK 800 842 813 790 767 738 ADANIPORTS 293 307 298 291 284 275 GMRINFRA 21 24 23 22 21 20 ADANIPOWER 48 50 48 48 47 46 GODREJIND 305 315 309 304 300 294 ALBK 116 122 119 116 113 110 GRASIM 3589 3638 3606 3580 3554 3522 AMBUJACEM 222 233 228 223 219 214 HAVELLS 289 303 294 286 279 270 HCLTECH 1619 1648 1630 1615 1600 1582 HDFC 1100 1125 1110 1098 1085 1070 899 918 908 900 892 882 88 92 89 88 86 84 2888 3038 2964 2903 2843 2769 ANDHRABANK 86 90 88 85 83 80 APOLLOHOSP 1163 1197 1177 1161 1145 1125 APOLLOTYRE 233 242 237 232 227 221 HDFCBANK ARVIND 299 330 314 302 289 273 HDIL 47 51 49 48 47 45 ASHOKLEY ASIANPAINT AUROPHARMA AXISBANK BAJAJ-AUTO BANKBARODA HEROMOTOCO 646 680 662 648 633 616 HEXAWARE 210 232 221 212 202 191 1028 1113 1061 1020 978 927 HINDALCO 156 165 161 157 153 149 469 484 475 467 460 451 HINDPETRO 571 617 589 566 544 516 2540 2624 2584 2552 2520 2481 HINDUNILVR 762 780 767 757 747 735 962 1015 980 953 925 890 HINDZINC 166 173 169 166 163 159 BANKINDIA 287 297 291 286 281 275 IBREALEST BATAINDIA 1246 1300 1270 1245 1220 1190 ICICIBANK 75 80 77 74 72 69 1685 1721 1698 1679 1661 1638 BHARATFORG 836 877 856 838 820 799 IDBI 70 74 72 70 69 67 BHARTIARTL 391 406 395 387 379 369 IDEA 168 179 172 166 160 153 BHEL 249 272 261 253 244 234 IDFC 152 158 155 153 150 147 BIOCON 455 465 459 455 450 444 IFCI 39 41 40 39 38 37 BPCL 759 792 771 755 738 717 IGL 404 419 410 402 395 386 CAIRN 275 282 278 274 271 267 INDIACEM 116 122 118 115 111 107 CANBK 404 415 409 403 398 391 INDUSINDBK 728 746 735 726 717 706 CENTURYTEX 587 613 600 589 578 565 INFY 4167 4245 4196 4156 4116 4067 CESC 691 709 699 690 681 670 IOB 58 60 59 58 57 56 CIPLA 650 683 668 655 643 628 IOC 375 390 381 374 367 358 COALINDIA 345 353 349 345 341 336 IRB 261 276 267 259 252 242 1780 1875 1816 1768 1720 1660 ITC 356 367 361 356 352 346 CROMPGREAV 188 199 193 189 184 179 JINDALSTEL 162 170 166 162 159 155 DABUR 228 235 231 228 225 221 JISLJALEQS 84 92 88 85 82 78 COLPAL DISHTV 59 62 60 58 57 55 1752 1861 1792 1736 1680 1611 135 140 136 133 130 126 DRREDDY 3397 3675 3502 3362 3223 3050 EXIDEIND 161 167 164 161 159 FEDERALBNK 145 151 148 145 143 DIVISLAB DLF LKP Advisory JPASSOCIAT 33 35 34 33 32 31 JPPOWER 14 16 15 14 14 13 JSWENERGY 78 81 79 78 77 75 JSWSTEEL 1211 1263 1238 1218 1198 1173 156 JUBLFOOD 1282 1320 1296 1277 1258 1234 139 JUSTDIAL 1493 1580 1535 1498 1461 1415 PIVOT POINTS Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2 KOTAKBANK 1123 1168 1142 1122 1101 1076 TATACHEM 419 431 423 416 410 402 130 136 133 130 127 124 TATACOMM 428 444 433 424 415 404 70 73 72 71 69 68 TATAGLOBAL 161 166 163 160 157 154 382 401 389 379 369 357 TATAMOTORS 533 553 544 537 529 520 KTKBANK L&TFH LICHSGFIN LT 1654 1746 1698 1659 1620 1572 TATAMTRDVR 329 343 333 326 318 309 LUPIN 1419 1475 1438 1408 1377 1340 TATAPOWER 91 94 93 91 90 89 M&M 1239 1275 1257 1241 1226 1207 TATASTEEL 471 499 486 476 466 454 M&MFIN 310 327 316 307 298 287 TCS 2573 2663 2618 2582 2546 2501 MARUTI 3288 3382 3328 3285 3242 3189 TECHM 2652 2744 2683 2634 2584 2523 MCDOWELL-N 2585 2687 2624 2573 2522 2459 TITAN 379 392 384 377 371 362 MCLEODRUSS 252 268 260 254 248 241 UBL 698 720 708 698 688 675 32336 33150 32718 32368 32018 31586 83 95 89 85 80 74 NHPC 21 22 22 21 21 20 2562 2600 2577 2558 2538 2515 NMDC 158 163 160 158 155 152 UNIONBANK 215 228 222 217 212 206 UNITECH MRF NTPC 144 149 147 145 143 141 OFSS 3339 3476 3408 3353 3298 3230 ONGC 410 423 414 407 400 ORIENTBANK 291 302 295 290 PETRONET 201 217 209 203 23 25 23 22 21 20 333 351 342 334 327 318 391 VOLTAS 247 259 253 248 243 236 285 278 WIPRO 553 575 564 555 546 535 197 189 YESBANK 676 696 684 674 664 652 ZEEL 372 390 378 368 358 346 283 292 287 283 279 274 PNB 940 970 955 942 929 914 POWERGRID 145 149 146 144 142 139 91 95 93 92 90 89 667 722 683 652 621 582 RANBAXY RCOM 109 115 111 108 105 101 RECLTD 302 315 308 303 298 292 RELCAPITAL 467 495 482 471 461 448 RELIANCE 981 1009 995 985 974 961 RELINFRA 629 658 644 633 621 608 RPOWER 75 79 77 75 74 72 SAIL 84 88 86 84 82 80 SBIN 2743 2822 2783 2751 2720 2681 SIEMENS 882 908 894 882 871 856 SRTRANSFIN 971 1003 983 966 949 929 SSLT 246 260 254 248 243 236 SUNPHARMA 894 959 913 876 838 792 SUNTV 325 346 336 327 318 308 SYNDIBANK 125 132 129 126 123 119 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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