Morning Notes LKP Advisory 17 Nov-2014 FII's & DII's in equity Indices 14-Nov 13-Nov % Chg. Major Indices 14-Nov 13-Nov % Chg. S&P BSE SENSEX 28,047 27,941 0.38% CAC 40 Index 4,202 4,188 0.35% 14-Nov 8,390 8,358 0.38% DAX Index 9,253 9,249 0.05% S&P CNX NIFTY Rs.Crs Buy Sell Net FII' Investments 4987 4341 646 DII's Investments 1418 1936 -518 S&P BSE MID CAP 10,155 10,102 0.52% Dow Jones Industrial Av 17,635 17,653 -0.10% S&P BSE SMALL CAP 11,217 11,160 0.52% FTSE 100 Index 6,654 6,635 0.29% FII's contribution to the total turnover 44% Nasdaq Composite Inde 4,689 4,680 0.18% DII's contribution to the total turnover 16% BSE Sectoral Indices S&P BSE METAL S&P BSE REALTY 11,401 11,120 2.53% Major Asian Indices 14-Nov 13-Nov % Chg. 1,669 1,631 2.35% Hang Seng 24,087 24,020 0.28% FII's in Derivatives 14-Nov Rs.Crs Index Fut Index Opt Stock Fut Stock Opt 8,225 8,095 1.61% Nikkei 225 17,491 17,393 0.56% Net S&P BSE OIL & GAS 10,838 10,724 1.06% KOSPI Index 1,945 1,961 -0.78% OI S&P BSE BANKEX 20,119 19,975 0.72% SSE Composite Index (S 2,479 2,486 -0.27% S&P BSE AUTO 18,660 18,544 0.62% Taiwan Weighted 8,983 8,981 0.02% S&P BSE CAPITAL GOODS 15,885 15,798 0.55% 2,123 2,112 0.52% Commodities (MCX) 14-Nov 13-Nov % Chg. Futures (NSE) 14-Nov 13-Nov % Chg. 10,892 10,869 0.22% Aluminium (28NOV2014 126 126 -0.20% USDINR 26-NOV-2014 61.87 61.68 0.30% S&P BSE TECk 6,029 6,017 0.20% Copper (28NOV2014) 416 407 2.09% EURINR 26-NOV-2014 77.10 76.93 0.21% S&P BSE CONSUMER DURA 9,830 9,815 0.16% Crude (19NOV2014) 4,662 4,641 0.45% JPYINR 26-NOV-2014 53.18 53.42 -0.44% S&P BSE PSU S&P BSE POWER S&P BSE IT S&P BSE FMCG S&P BSE HEALTHCARE Chg.OI -208 736 98 22 19733 66869 49676 2967 1.1% 3.8% 1.3% 4% FIIs' contribution to the total Derivatives turnove 22% 7,753 7,762 -0.12% Gold (5DEC2014) 26,466 25,822 2.49% FTSE100 (21-Nov-2014 6647 6624 0.35% 14,840 15,023 -1.22% Silver (5DEC2014) 36,032 34,707 3.82% S&P500 (21-Nov-2014 2038 2042 -0.18% % Chg ASIANPAINT 673 28 4.4 6 3.8 157 6 3.7 NMDC 155 4 GAIL 489 Company LTP LTP Chg % Chg SUNPHARMA 888 -21 -2.3 609 -14 -2.3 1610 -30 -1.8 2.7 GRASIM 3563 -50 -1.4 13 2.7 KOTAKBANK 1097 -15 -1.3 Chg % Chg LTP Chg % Chg JPASSOCIAT 35 3 8.1 SAIL 86 6 7.6 CIPLA Company RANBAXY 655 -19 -2.9 CIPLA 609 -15 -2.5 1 4.8 SUNPHARMA 887 -22 -2.4 40 4.5 M&MFIN 319 -8 -2.3 ASIANPAINT 672 27 4.3 HCLTECH 1611 -29 -1.8 Company LTP Chg % Chg Company LTP Chg % Chg 69 5 7.6 BALKRISIND 691 -135 -16.3 FINOLEXIND 286 -27 -8.6 NBCC 774 -46 -5.7 RCF ALLCARGO 308 19 6.7 GSPL 104 6 6.6 Top Losers 21 927 BSE Midcap UNITECH SIEMENS MYSOREBANK 552 34 6.5 TVSMOTOR 242 -12 -4.7 VOLTAS 271 16 6.4 FINCABLES 249 -12 -4.6 Company LTP Chg % Chg Company LTP Chg % Chg SVGLOBAL 175 29 20.0 42 -6 -12.4 14 2 16.7 188 -20 -9.4 -8.8 JAYNECOIND GREENPOWER SIGNETIND DYNAMATECH Company HCLTECH BSE 100 158 Top Losers JINDALSTEL HINDALCO CNX Nifty Chg Top Losers LTP 16 2 15.0 134 12 10.0 2421 219 9.9 Top Losers CNX Nifty Company BSE Smallcap Top Gainers BSE 100 BSE Midcap Top Gainers Top Gainers BSE Smallcap Top Gainers KDJHRL SPECIALITY BANASFN 20 -2 HCIL 28 -2 -7.4 PFS 52 -4 -6.4 Domestic Market View Markets to make a soft start on weak regional cues The Indian markets made a modestly positive close in last session supported by some upbeat earnings number. Today, the start is likely to be slightly in red tailing the weakness in the regional peers. However, there is some positive news from domestic Services sector front, as the Services exports rose 5.3 per cent to $ 12.94 billion in September this year compared to the same month last year. Meanwhile, industry chamber Assocham has suggested that government must use the opportunity to integrate proposed Foreign Trade Policy with the 'Make in India' programme. Today, there is likely to be buzz in the PSU stocks, as the Centre has begun the process of shutting some sick staterun firms. A Cabinet note proposing the closure of six firms under the department of heavy industry has been circulated, which includes Hindustan Photo Films, HMT Bearings, HMT Chinar Watches, Tungbhadra Steel, Hindustan Cable and the iconic HMT Watches. There will be lots of result reactions to keep the markets buzzing. Domestic Market Overview Benchmarks end higher as WPI eases; Sensex recaptures 28,000 mark ndian equity benchmarks ended the volatile day of trade in green terrain with Sensex recapturing its crucial 28,000 mark on sustained capital inflows and positive economic data. Overall, sentiments remained up-beat after India’s main inflation gauge, based on monthly WPI, softened to five year low at 1.77% for the month of October as compared to 2.38% (Provisional) for the month of September. The reading was way below the street expectation, which were expecting figure to be near 2% mark for the month under review. Meanwhile, the Organisation for Economic Cooperation and Development (OECD), in its latest economic outlook report for Asian countries, has highlighted that Indian economy is expected to witness an average growth of 6.7% over the 2015-19 period and a further boost would depend on reform plans of the government. Sentiments remained up-beat on report that foreign portfolio investors bought shares worth a net Rs 690.61 crore yesterday, as per provisional data. Better than expected second quarter earnings from State Bank of India (SBI) too lifted the sentiments. The bank’s consolidated net profit after taxes and minority interest for the quarter under review registered 30.95% growth at Rs 4023.84 crore against Rs 3072.77 crore in the September quarter of previous fiscal. The bank’s consolidated total income has increased by 15.02% at Rs 61098.67 crore for the quarter from Rs 53118.63 crore in the similar quarter of previous year. Meanwhile, stocks related to software and technology edged higher on weak rupee. The Indian rupee was trading at 61.77 at the time of equity markets closing against the US dollar compared to the previous close of Rs 61.54. Stocks related to rate sensitive counters like Banking and Auto too remained on buyers’ radar amidst hopes that RBI may slash interest rates in upcoming monetary policy in December after 5-year low October WPI data. Additionally, public sector oil marketing companies (OMCs) edged higher on decline in crude oil prices. Crude oil futures extending the declining run ended to three year low on Thursday, on increasing concerns of a supply glut and that OPEC won’t act to ease a global glut. Global Market Overview Asian markets ended mostly in green on Friday Asian markets ended mostly in green on Friday, with Japan’s index rising as investors await a report on economic growth amid speculation Prime Minister Shinzo Abe plans to delay a sales-tax increase and call an election. South Korea’s central bank kept its policy interest rate steady as widely expected, to assess the effects of this year’s two rate cuts as well as policy decisions in the United States and Japan. The Bank of Korea’s monetary policy committee left its base rate unchanged at 2 percent. Singapore’s housing market may face fire sales with mortgage defaults as the government’s property curbs hurt home sales and prices. Singapore’s private home prices fell 0.7 percent in the three months ended September, the fourth quarteron-quarter drop, bringing the slide in the past year to almost 4 percent. US markets closed mostly up; Dow ekes out LKP Advisory The US markets closed mostly higher on Friday, managing to post a fourth-straight weekly gain. On the economy front, a gauge of consumer sentiment rose this month to the highest level since mid-2007, as gas prices and the unemployment rate dropped. The preliminary November reading on the University of Michigan/Thomson Reuters consumer-sentiment index increased to 89.4 - the highest level since July 2007 from a final October reading of 86.9. According to the report, a gauge of consumers’ views on current conditions rose to 103 in November from 98.3 in October. Meanwhile, a barometer of their expectations increased to 80.6 from 79.6. Sales at US retailers rose in October, snapping back from the first decline in eight months, as plunging gasoline prices gave consumers more money to spend on other goods and services. The uptick in spending last month, especially when gasoline is stripped out, suggests households could be prepared to spend more during the holiday season than they have in years. That would be a boon for the economy because retail sales account for one-third of consumer spending, the main engine of US economic activity. Retail sales rose by a seasonally adjusted 0.3% last month. Nasdaq was up by 8.40 points or 0.18 percent to 4,688.54, S&P 500 ended higher by 0.49 points or 0.02 percent to 2,039.82 while, Dow Jones Industrial Average lost 18.05 points or 0.10 percent to 17,634.74. Index Futures (OI in '000 Shares) Total Open Interest Future Chg Spot Chg Prem / 14-Nov (%) 14-Nov (%) Disc 14-Nov Chg (%) NIFTY 8,417 0.44 8,390 0.38 26.8 25,002 CNXIT 11,596 -0.10 11,572 0.28 24.5 29 -0.8 0.1 BANKNIFTY 17,670 0.19 17,577 0.71 93.1 2,268 4.0 Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares) Symbol Total OI 14-Nov % Chg. Del Qty Cash Market 14-Nov % Del. ASIANPAINT 7,250 VOLTAS 6,996 SIEMENS 1,466 7% 249,594 LICHSGFIN 10,599 6% 2,154,035 HDIL 27,868 6% 1,768,528 12% Prev % Del. Increase Del Qty Spot (Rs.) Fut (Rs.) Spot Chg (%.) Fut Chg (%.) Prem / Disc 28% 4,195,642 75% 67% 3,382,815 672 676 4.2% 4.7% 3.4 24% 1,739,580 26% 23% 1,061,863 272 272 6.6% 6.6% 0.4 31% 33% 157,009 928 932 4.4% 4.5% 3.6 49% 42% 55,955 421 422 2.6% 2.6% 1.5 11% 357,821 88 89 1.3% 1.4% 0.4 HAVELLS 4,505 5% 573,097 34% 35% 265,779 308 309 2.4% 2.5% 1.4 CESC 1,597 5% 298,547 19% 36% 77,803 757 762 6.2% 6.7% 4.4 SBIN 6,398 4% 1,413,184 24% 35% 725,620 2788 2801 2.5% 2.5% 13.5 ACC 1,387 4% 171,161 66% 51% 16,471 1511 1518 0.6% 0.7% 6.8 12,436 3% 791,129 40% 20% 452,786 127 127 0.2% 0.2% 0.6 Increase in Del Qty Spot (Rs.) Fut (Rs.) Spot Chg (%.) Fut Chg (%.) Prem / Disc 317 318 -2.8% -2.8% 1.3 SYNDIBANK Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares) Symbol SUNTV TATAMOTORS Total OI 14-Nov % Chg. 2,177 % Del. Prev % Del. 45% 131,072 Del Qty Cash Market 14-Nov 5% 358,237 60% 18,178 5% 2,586,033 51% 48% 1,123,652 524 525 -0.5% -0.5% 1.5 RANBAXY 8,523 4% 814,117 41% 23% 586,216 653 657 -3.3% -3.0% 3.3 SRTRANSFIN 1,228 4% 3,663,167 90% 59% 3,028,718 1043 1049 -0.6% -0.2% 5.7 EXIDEIND 9,898 4% 1,135,962 53% 43% 665,151 161 162 -0.5% -0.2% 0.8 MCLEODRUSS 3,548 4% 2,295,777 92% 38% 2,193,697 242 244 -1.1% -0.9% 1.4 BHEL 41,146 4% 1,960,183 20% 36% 86,295 246 242 -0.8% -0.5% -3.7 SUNPHARMA 10,335 4% 1,644,815 50% 52% 196,420 887 888 -2.4% -2.7% 1.1 KOTAKBANK 4,121 2% 525,400 71% 63% 111,888 1094 1099 -1.6% -1.6% 5.0 M&MFIN 6,279 2% 605,104 42% 25% 133,714 319 321 -2.2% -2.0% 1.4 Open Interest Break-up (Rs. in Cr.) 14-Nov 13-Nov Change in OI INDEX FUTURES 25,291 25,189 103 0.41 INDEX OPTIONS 117,327 114,065 3,262 2.86 TOTAL INDEX 142,618 139,254 3,364 2.42 STOCK FUTURES 62,160 61,289 871 1.42 STOCK OPTIONS 17,253 16,377 876 5.35 TOTAL STOCKS 79,412 77,666 1,747 2.25 GRAND TOTAL 222,030 216,920 5,111 2.36 FII's 139,245 135,801 3445 2.54 82,785 81,119 1666 2.05 Others LKP Advisory % Chg Corporate News ¾ Poddar Developers has launched its new housing project ‘Poddar Aspire’ located at Teesgaon, Kalyan in state of Maharashtra on November 15, 2014. The board of directors at their meeting held on November 14, 2014 has taken the note of it. ¾ HBL Power Systems has received an approval for merger of a 100% subsidiary of HBL Power Systems with the company. The board of directors at their meeting held on November 14, 2014 has decided for the same. ¾ Anant Raj has received its board’s approval for investment of up to Rs 7.50 crore in the equity share capital of ‘Rolling Construction’, a subsidiary of the company. The board of directors at their meeting held on November 14, 2014 has decided for the same. ¾ MIC Electronics has received an approval for disinvestment of majority stake holding of Maave Electronics, a 100% subsidiary of the company, to improve the cash flows of the company. The board of directors at their meeting held on November 14, 2014 has decided for the same. ¾ Maxwell Industries has received an approval to implement the integrated SAP system in the company in replacement of existing system in operation. The board of directors at its meeting held on November 14, 2014 has approved for the same. ¾ Southern Ispat and Energy has decided to diversify and de-risk by going into manufacturing of solar grade silicon ingots and bricks used in solar cells. In this regard, the company has signed an agreement with Gujarat Government to set up the plant and the board has decided to acquire 200 acres of land in a phased manner. ¾ Shilp Gravures has received an approval to make the further investment of up to Rs 1.00 crore in to JV Company ‘HMSU Rollers (India)’. The board of directors at its meeting held on November 14, 2014 has approved for the same. ¾ Sundaram Multi Pap has received an approval to permanently close down Nagpur Paper Unit with immediate effect subject to the completion of necessary formalities. The board of directors at their meeting held on November 14, 2014 has approved for the same. ¾ Sunshield Chemicals will shut down its operations mainly with respect to Ethylene Oxide (EO) based products for the period of about 75 days estimated to begin from December 15, 2014 to restart by March, 2015. EO based products contributes more than 75% of Company's current production. The balance 25% being anti-oxidants and other non-EO based products will continue to be produced and sold. ¾ Mukta Arts has decided to expand its foot-print in Media Exhibition by deciding to open 6 Cinema Screens in Bahrain to begin with. In this regard, the company has signed a Memorandum of Understanding (MoU) with V. K. Universal Property Management Co. SPC, Bahrain. It is proposed to set-up a subsidiary company with suitable structure to implement the decision. ¾ Stone India has received the first major order for ENBIOLET - its patented environment friendly aerobic bio-toilet from a Government Agency after the Prime Minister launched ‘Swatch Bharat Abhiyan’ for installation in Parks in NCR. ¾ Era Infra Engineering, an integrated infrastructure company with Pan India presence has been awarded three contracts aggregating worth Rs 440.69 crore. The company has bagged work for development of 4 lanes of Dogal Kalan to Punjab/Haryana Border section of NH-71 (New NH-52) from km 211+390 to 238+695 in the State of Punjab on EPC Basis under NHDP-IV by Punjab PWD at an estimated cost of Rs 354 crore. ¾ Allahabad Bank is planning to raise BASEL III compliant Tier II Bonds aggregating up to Rs 500.00 crore through Private Placement in one or more trenches during the current FY 2014-15. ¾ Dynamatic Technologies has signed a global outline agreement with BELL Helicopter, a Textron Inc., company, as a single source supplier of major airframe assemblies for the BELL 407 GX. The estimated business volume of the agreement is around $90 million over a seven year period with options to extend through the life of the product. ¾ Reliance Capital Mutual Fund (MF) has bought 10 lakh shares representing 2.02% stake of Simplex Infrastructures at Rs 275 per equity share of Simplex Infrastructures. LKP Advisory ¾ Omkar Speciality Chemicals has received an approval for raising of funds up to an amount of Rs 125 crore, by way of a qualified institutions placement (QIP), on such terms and conditions as may be decided by the board of directors and / or committee of the board. The board of directors at their meeting held on November 13, 2014 has approved for the same. ¾ GAIL (India), India’s leading natural gas company, along with state gas companies of Turkmenistan, Afghanistan and Pakistan have established a company that will build, own and operate the planned 1,800-kilometer Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline. ¾ Tata Motors Group global wholesales in October 2014, including Jaguar Land Rover, were 82,026 units. Cumulative wholesales for the fiscal were 544,122 units. Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in October 2014 were 32,049 units. Cumulative commercial vehicles wholesales for the fiscal were 2,16,345 units. ¾ Sterlite Technologies’ subsidiary -- Sterlite Grid -- has successfully commissioned India’s first Ultra Mega Transmission Project (UMTP). The first line in this project connecting Purnea and Bihar Sharif was commissioned in September 2013, which was the first 400 KV line to cross the river Ganges since Independence. The second line which is about 225km long connects Bongaigaon in Assam to Siliguri in West Bengal. The 400 KV double-circuit quad transmission line was commissioned today making the East-North Interconnection Company (ENICL) fully operational. ¾ Sesa Sterlite is planning to invest $782 million over a three-year period in southern Africa to tap the region’s large undeveloped deposits of the metal and offset a fall in production volume from its mine in Ireland ¾ Apollo Hospitals Group has diversified into exclusive diabetes management with a new entity called Apollo Sugar. In this regard, the company will establish a network of 50 Apollo Sugar Clinics by January 2015. ¾ Shasun Pharmaceuticals, a global pharmaceutical organization offering world class capabilities and facilities, has successfully completed United States Food and Drug Administration (USFDA) inspection at its manufacturing facility at Dudley England. The USFDA audit was held on first week of November 2014. ¾ Tata Consultancy Services (TCS), a leading IT services, consulting and business solutions organization, has been ranked second on the FinTech 100, the annual ranking of the top technology vendors that garner more than one-third of their revenue from the financial services industry. ¾ Acrysil has received an approval for acquisition of UK based kitchen sinks distribution company namely Homestyle Products. The board of directors at their meeting held on November 13, 2014 has approved for the same. The board also approved for investment in wholly owned subsidiary in UK and to grant Loan to wholly owned subsidiary in UK. ¾ Videocon Telecom, part of the diversified $4 billion Videocon Group, has added 1.71 lakh new mobile subscribers in October, 2014. Following the addition, the company’s total subscriber count stood at 61.13 lakh with a market share of 0.80%. ¾ Mahanagar Telephone Nigam (MTNL), the state owned telecom firm which operates in Delhi and Mumbai, has added 11,907 mobile subscribers in October, 2014. Following the addition, the company’s total subscriber count stood at 33.20 lakh with a market share of 0.44%. ¾ Idea Cellular, one of the biggest cellular carrier of the country, has added 18.50 lakh new mobile subscribers in October, 2014. Following the addition, the company’s total subscriber count stood at 14.54 crore. The country’s third-largest operator has a market share of 19.07%. Economy ¾ India, US resolve food security row to end WTO impasse Moving closer to end the log jam at WTO over the signing of Trade Facilitation Agreement (TFA), India and the US successfully resolved their differences on the issue of public stockholding for food security purposes. According to the agreement, the US will support India's proposal at WTO that 'peace clause', crucial for uninterrupted implementation of India's food security programme, should continue indefinitely till a permanent solution is found. LKP Advisory The agreement will enable India to continue procurement and stocking of foodgrain for distribution to poor under its food security programme without attracting any kind of action from WTO members even if it breaches the 10 per cent subsidy cap as prescribed by the multilateral trade body. The agreement comes two days ahead of the G-20 Summit in Australia, which will be attended by Prime Minister Narendra Modi and other world leaders including the US President Barack Obama. WTO related matters are likely to come up during discussion between world leaders. Earlier, in July 2014, India had made it clear to WTO that it would not agree to the Trade Facilitation Agreement (TFA) unless there is a permanent solution on safeguards to run food security programmes. The WTO’s Ministerial Conference at Bali last December had provided for only a four-year “peace clause” during which no member country would be legally barred from implementing food security programmes even if the farm subsidies breached the caps imposed by the original Agreement on Agriculture (AoA). India had, however, rejected the temporary peace clause and insisted on its right to provide unlimited subsidies until a “permanent solution” to the issue was found. This stance attracted strong criticism, especially from developed countries including the US, the EU and Australia. ¾ October WPI inflation eases at five-year low of 1.77% v/s 2.38% in September Easing at lowest level since October 2009, India's main inflation gauge, based on monthly WPI, stood at 1.77% for the month of October as compared to 2.38% in the previous month and 7.24% during the corresponding month of the previous year. The reading was way below the street expectation of a 2% mark for the month under review. However, August inflation figures were revised upwards to 3.84% from 3.74% earlier. Meanwhile, build up inflation rate in the financial year so far was 2.00% compared to a build up rate of 6.23% in the corresponding period of the previous year. The reading, which was lowest in five years was mainly on the back of lower food and fuel inflation. Fuel & Power index, which occupies 14.91% weight in the overall index, declined by 1.3% to 210.7 (provisional) from 213.4 (provisional) for the previous month due to lower price of furnace oil (4%), aviation turbine fuel (3%), petrol and bitumen (2% each) and kerosene and high speed diesel oil (1% each). However, the price of lubricants (1%) moved up. Meanwhile, the index of Manufactured Products, which occupies the majority 64.97% weight in WPI index, declined by 0.5% to 174.2 (provisional) from 175.1 (provisional) in September. ¾ DERC hikes power tariff by up to 7% In a move, which is likely to increase the cost of electricity bills for consumers in national capital, Delhi Electricity Regulatory Commission (DERC) approved the Power Purchase Cost Adjustment charge (PPAC) under which power tariff was hiked by up to 7%. The regulator, who will review the surcharge again in February, has hiked the tariff to help the power distribution companies to recover their power purchase cost. The DERC approved a hike of 7% for BSES Yamuna Power (BYPL), 4.5% for BSES Rajdhani Power (BRPL) and 2.5% for Tata Power. BRPL supplies electricity of south and west Delhi, while Tata Power supplies it to north Delhi and BYPL supplies to east and central Delhi. While hiking the power tariff by up to 7.5% for domestic consumers, the DERC in July had withdrawn Power Purchase Adjustment Cost (PPAC) of around 8% till October. The regulator had introduced PPAC in 2012 to help the private power distribution companies recover additional cost on account of increase in coal and gas prices. However, its withdrawal had resulted into marginal decline of tariff for the consumers, whose monthly consumption does-not exceed 400 units. Delhi has seen series of hike in power tariff in the past two years. The tariff was hiked by 22% in 2011, followed by 5% hike in February 2012. The tariff was increased by up-to to 2% in May, 2012 and again by 26% for domestic consumers in July, 2012. It was hiked by up to three percent in February last year and again by 5% in August. ¾ India’s gold demand surges 39% to 225.1 tonnes in Q3 2014: WGC India’s gold demand during July-September quarter this year shot up 39 percent to 225.1 tonnes against 161.6 tonnes in third quarter of 2013 mainly driven by strong buying from the jewellery sector, as per the World Gold Council (WGC) report. The WGC also attributed the sudden increase in country’s gold demand to unusual low base of third quarter of 2013 that was impacted by the introduction of a range of duty increases and restrictions. The report further highlighted that the total jewellery demand was up by 60 per cent at 182.9 tonnes during third quarter of current year against 114.5 tonnes in the same period last year. On global front, the WGC report highlighted that global gold demand fell by 2 percent to five year low at 929 tonnes in the third quarter. China, which was top gold consumer in last year, saw a 39 percent drop in jewellery consumption as LKP Advisory well as a 30 per cent fall in bar and coin investment. India once again took over as the world's biggest gold consumer, buying 225.1 tonnes of gold jewellery, coins and bars last quarter, compared to 182.7 tonnes in China. ¾ Govt hikes excise duty on petrol and diesel by Rs 1.50 per litre to boost revenues In order for boosting revenues and contain budget borrowing, the government has raised excise duty on petrol and diesel by Rs 1.50 per litre. While the duty on branded petrol excise was hiked to Rs 3.85/litre from Rs 2.35/litre, that on unbranded petrol was hiked to Rs 2.70/litre from Rs 1.20/litre. Additionally, excise duty for branded diesel was raised to Rs 5.25/litre from Rs 3.75/litre and that of unbranded diesel was hiked to Rs 2.96/litre from Rs 1.46/litre. This development doesn’t come as much of a surprise as reports earlier only had hinted that government was contemplating this move in order to ensure that the benefit of recent sharp decline in international oil prices, should not be limited to customers in the form of price cut in fuel prices, but also to the exchequer. The hike in excise duty is expected to mop up additional revenue of about Rs 14,000 crore to the exchequer. International oil prices have fallen nearly 25% in the past five months, in step with a global commodities decline. The country's average crude import cost, as measured by the Indian crude basket has fallen to $80.87 per barrel (Rs 4,970) on November 7 from $108.05 per barrel (Rs 6,331) on May 26, the day the Narendra Modi government assumed office. Notably, this development comes a little ahead of fortnightly review of the oil marketing companies, Indian Oil Corp (IOC ), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) on Saturday. However, this hike is not expected to burden consumers as oil companies plan to adjust the excise hike with a reduction in retail rates that was due this weekend. ¾ India to witness average growth of 6.7 % during 2015-19: OECD The Organisation for Economic Cooperation and Development (OECD), in its latest economic outlook report for Asian countries, has highlighted that Indian economy is expected to witness an average growth of 6.7 % over the 2015-19 period and a further boost would depend on reform plans of the government. The OECD highlighted that these reforms include promoting domestic and foreign investments, creating jobs and improving food security, raising standards of education and skills development, building new infrastructure, enhancing water governance and increasing the country's overall competitiveness, particularly in the manufacturing sector. After two years of slowdown, Indian economy is showing signs of revival and expanded at its fastest pace in more than two years by 5.7% y-oy during Q1FY15 as compared to 4.7% growth recorded in same quarter last year and 4.6% in Q4FY14. Regarding economic outlook for Asian countries, the OECD’s report has stated that Emerging Asia is set for healthy growth over the medium term even as outlook for many OECD countries remains subdued. Annual GDP growth for the ASEAN-10 countries is forecast to average 5.6% over 2015-19. China's growth is expected to slow to 6.8% over 2015-19 period. However, the Paris based think tank also highlighted that India and China could face significant challenges in future. Source: Reuters, Ace Equity & LKP Research LKP Advisory Tech View CNX NIFTY TECHNICAL VIEW Nifty continued to trade in a range with 8400 level acting as strong immediate resistance. Market breadth as well as sector participation which have been causes of caution since last few trading sessions were seen improving which indicates that trend remains intact in the stock. Nifty is expected to consolidate for a brief period before resuming a new trend. The supports continue to be seen at 8200 level in short term. IMPORTANT LEVELS FOR THE DAY Support BSE NSE BANKNIFTY S1 28,074 8346 17412 S2 28,184 8305 17266 R1 27,896 8412 17647 R2 27,787 8454 17793 Pivot 27,985 8,379 17,529 Resistance . LKP Advisory PIVOT POINTS Scrip Name CMP RB2 RB1 PP SB1 SB2 ACC 1511 1538 1521 1508 1494 1477 Scrip Name CMP RB2 RB1 PP SB1 SB2 GAIL 490 514 498 485 472 456 ADANIENT 490 505 495 487 478 468 GLENMARK 771 798 785 775 765 753 ADANIPORTS 297 305 300 296 292 287 GMRINFRA 20 21 20 20 20 19 ADANIPOWER 46 47 46 46 45 44 GODREJIND 298 307 301 297 292 286 ALBK 119 125 121 119 116 113 GRASIM 3569 3675 3623 3582 3541 3490 AMBUJACEM 230 238 232 228 224 219 HAVELLS 308 320 313 307 301 293 HCLTECH 1611 1683 1649 1622 1595 1561 HDFC 1127 1164 1141 1122 1103 1080 930 954 938 925 912 896 88 93 90 88 86 84 2964 3042 2994 2956 2918 2871 ANDHRABANK 87 90 88 86 84 82 APOLLOHOSP 1109 1143 1126 1112 1098 1081 APOLLOTYRE 237 245 240 237 233 229 HDFCBANK ARVIND 282 289 285 281 278 274 HDIL 54 56 55 54 53 52 ASHOKLEY ASIANPAINT HEROMOTOCO 672 707 683 663 643 619 HEXAWARE 221 231 226 222 218 213 1120 1163 1138 1118 1099 1074 HINDALCO 157 166 160 156 151 145 477 488 481 476 470 463 HINDPETRO 555 582 568 557 546 532 BAJAJ-AUTO 2653 2714 2675 2643 2611 2571 HINDUNILVR 756 772 764 758 751 744 BANKBARODA 1015 1041 1024 1009 995 977 HINDZINC 162 169 165 163 160 156 BANKINDIA 285 294 289 285 280 275 IBREALEST 81 88 83 80 76 72 BATAINDIA AUROPHARMA AXISBANK 1314 1362 1332 1308 1284 1254 1692 1711 1701 1692 1684 1673 BHARATFORG 909 930 920 911 903 893 IDBI 72 75 73 71 69 67 BHARTIARTL 388 400 394 390 385 380 IDEA 162 166 164 163 161 159 BHEL 246 261 251 244 236 226 IDFC 155 159 157 155 153 151 BIOCON 441 454 447 442 437 431 IFCI 39 40 39 39 38 37 BPCL 735 761 745 733 720 704 IGL 435 463 447 433 420 403 CAIRN 268 279 272 265 259 251 INDIACEM 109 115 112 109 106 103 CANBK 403 418 409 402 395 387 INDUSINDBK 731 749 737 727 717 704 CENTURYTEX 575 588 581 575 569 562 INFY 4192 4244 4216 4192 4169 4141 CESC 757 821 778 743 708 665 IOB 58 59 59 58 57 56 CIPLA 609 647 629 615 601 584 IOC 357 375 363 353 342 330 COALINDIA 356 372 361 353 345 335 IRB 268 275 270 267 263 258 1984 2130 2055 1995 1934 1860 ITC 369 374 371 369 367 365 CROMPGREAV 190 197 193 190 187 183 JINDALSTEL 159 168 162 157 152 146 DABUR 231 236 233 232 230 227 JISLJALEQS 82 85 84 82 81 79 COLPAL DISHTV 63 65 64 63 62 60 1724 1808 1769 1737 1706 1667 142 147 144 142 139 137 DRREDDY 3435 3540 3484 3440 3395 3339 EXIDEIND 161 167 164 161 159 FEDERALBNK 140 150 145 141 137 DIVISLAB DLF LKP Advisory ICICIBANK JPASSOCIAT 35 38 36 34 32 29 JPPOWER 14 16 15 14 13 12 JSWENERGY 76 79 77 76 74 73 JSWSTEEL 1237 1293 1259 1231 1203 1169 156 JUBLFOOD 1466 1538 1492 1455 1418 1373 133 JUSTDIAL 1490 1518 1503 1491 1478 1464 PIVOT POINTS Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2 KOTAKBANK 1094 1134 1114 1098 1081 1061 TATACHEM 425 436 430 424 419 412 137 145 140 137 133 128 TATACOMM 436 451 443 436 429 420 74 76 75 74 73 72 TATAGLOBAL 155 158 157 155 153 152 421 445 430 419 407 392 TATAMOTORS 524 550 537 527 516 503 KTKBANK L&TFH LICHSGFIN LT 1622 1654 1636 1621 1606 1588 TATAMTRDVR 323 330 327 324 321 317 LUPIN 1444 1476 1458 1443 1429 1411 TATAPOWER 89 94 90 88 85 82 M&M 1256 1273 1262 1253 1245 1234 TATASTEEL 478 497 486 476 466 454 M&MFIN 319 339 330 322 314 304 TCS 2606 2647 2620 2598 2575 2548 MARUTI 3330 3364 3346 3331 3317 3299 TECHM 2638 2720 2680 2647 2614 2573 MCDOWELL-N 2723 2810 2764 2728 2692 2646 TITAN 375 383 379 375 372 367 MCLEODRUSS 242 252 247 244 240 236 UBL 703 727 715 706 697 685 32355 32932 32634 32392 32151 31852 88 91 89 87 85 83 NHPC 21 21 21 20 20 20 2616 2679 2638 2606 2573 2532 NMDC 155 161 157 154 151 147 UNIONBANK 217 226 221 217 213 208 UNITECH MRF NTPC 143 147 145 142 140 137 OFSS 3301 3401 3344 3299 3253 3197 ONGC 393 404 397 391 385 ORIENTBANK 290 303 294 287 PETRONET 197 204 201 198 21 23 22 21 20 18 362 373 367 361 356 349 378 VOLTAS 272 290 277 266 256 242 279 270 WIPRO 564 574 569 564 560 554 195 192 YESBANK 689 710 700 692 685 675 ZEEL 376 388 381 375 369 363 281 289 285 281 278 273 PNB 939 970 955 942 929 913 POWERGRID 144 148 146 144 143 140 93 98 96 94 92 89 RANBAXY 653 714 685 661 637 608 RCOM 103 108 105 103 100 98 RECLTD 305 315 308 302 297 290 RELCAPITAL 480 492 485 479 473 465 RELIANCE 969 988 978 971 963 953 RELINFRA 621 641 629 619 610 598 RPOWER 72 73 73 72 71 71 SAIL 86 95 89 84 79 73 SBIN 2788 2892 2825 2772 2718 2651 928 980 944 916 888 852 1043 1094 1068 1046 1024 998 SSLT 240 252 245 239 232 225 SUNPHARMA 887 947 918 895 872 843 SUNTV 317 336 327 320 313 304 SYNDIBANK 127 130 128 126 125 123 SIEMENS SRTRANSFIN 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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