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. While every effort is made to ensure the accuracy and completeness of information contained, the company makes no guarantee and assumes no liability for any errors or omissions of the information. No one can use the information as the basis for any claim, demand or cause of action. LKP Securities Ltd., and affiliates, including the analyst who have issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of the companies mentioned herein or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect to companies mentioned herein or inconsistent with any recommendation and related information and opinions. LKP Securities Ltd., and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. LKP Securities Ltd. Ph: (91‐22) 66351234 FAX: (91‐22) 66351249 E Mail: [email protected] web: http://www.lkpsec.com LKP Advisory