Morning Notes   LKP Advisory

Morning Notes
LKP Advisory
13 Oct-2014
FII's & DII's in equity
Indices
13-Oct
10-Oct
% Chg.
M ajo r Indices
13-Oct
10-Oct
% Chg.
S&P B SE SENSEX
26,297
26,637
-1.28%
CA C 40 Index
4,074
4,141
-1.64%
13-Oct
B uy
Rs.Crs
S&P CNX NIFTY
7,860
7,961
-1.26%
DA X Index
8,789
9,005
-2.40%
FII' Investments
2577
3296
S&P B SE M ID CA P
9,444
9,576
-1.38%
Do w Jo nes Industrial A
16,544
16,659
-0.69%
DII's Investments
1867
1309
S&P B SE SM A LL CA P
10,611
10,732
-1.12%
FTSE 100 Index
6,340
6,432
-1.43%
FII's co ntributio n to the to tal turno ver
3 1%
Nasdaq Co mpo site Ind
4,276
4,378
-2.33%
DII's co ntributio n to the to tal turno ver
17 %
M ajo r A sian Indices
13-Oct
10-Oct
% Chg.
FII's in Derivatives
Hang Seng
23,089
23,535
-1.90%
15,301
15,479
-1.15%
Net
-1464
2222
-176
-13
1,941
1,965
-1.24%
OI
10433
63832
42699
2214
Chg.OI
-9.6%
3.7%
-0.6%
3%
FIIs' co ntributio n to the to tal Derivatives turn
22%
S e ll
N et
-720
558
B SE Secto ral Indices
S&P BSE IT
10,681
10,441
2.29%
S&P BSE TECk
5,889
5,821
1.17%
S&P BSE HEALTHCARE
13,702
13,728
-0.19%
Nikkei 225
S&P BSE OIL & GAS
10,754
10,810
-0.52%
KOSP I Index
S&P BSE CONSUM ER DUR
9,590
9,684
-0.96%
SSE Co mpo site Index (
2,375
2,389
-0.62%
S&P BSE POWER
2,007
2,033
-1.29%
Taiwan Weighted
8,966
8,966
0.00%
S&P BSE CAPITAL GOODS
13-Oct
Rs.Crs
Index Fut Index Opt Sto ck FutSto ck Opt
14,352
14,563
-1.45%
S&P BSE PSU
7,780
7,898
-1.49%
Co mmo dities ( MCX)
13-Oct
10-Oct
% Chg.
Futures (NSE)
13-Oct
10-Oct
S&P BSE REALTY
1,592
1,617
-1.53%
A luminium (31OCT2014
118
118
-0.08%
USDINR 29-OCT-2014
61.53
61.23
0.49%
S&P BSE BANKEX
17,694
18,018
-1.80%
Co pper (28NOV2014)
414
413
0.35%
EURINR 29-OCT-2014
77.94
78.18
-0.31%
% Chg.
S&P BSE FM CG
7,351
7,544
-2.56%
Crude (20OCT2014)
5,284
5,264
0.38%
JP YINR 29-OCT-2014
57.15
56.92
0.39%
S&P BSE AUTO
17,348
17,844
-2.78%
Go ld (5DEC2014)
26,964
26,958
0.02%
FTSE100 (17-Oct-2014)
6443
6495
-0.80%
S&P BSE M ETAL
10,931
11,401
-4.11%
Silver (5DEC2014)
38,512
38,615
-0.27%
S&P 500 (17-Oct-2014)
1924
1973
-2.50%
C o m pa ny
LT P
INFY
% C hg
3884
237
6.5
HCLTECH
C o m pa ny
JINDA LSTEL
LT P
156
C hg
% C hg
-10
-5.9
Domestic Market View 1735
40
2.3
NM DC
152
-9
-5.4
Markets to make weak start of the new week
A SIA NP A INT
664
9
1.4
TA TA M OTORS
495
-26
-4.9
B HEL
221
2
1.1
HINDA LCO
151
-7
-4.5
HEROM OTOCO 2843
24
0.8
448
-20
-4.3
C hg
% C hg
C hg
% C hg
The Indian markets suffered sharp plunge in last session
and both the major indices lost over a percent on global
growth concern. Today, the start is likely to remain cautious
and muted, as all the Asian peers have made a weak start
and Nifty may retest its crucial 7800 support levels in the
very early deals. Traders will be first reacting to the
disappointing IIP data announced after the market hours on
Friday, which rose by just 0.4 per cent in August,
substantially below the expectation of 2.4 per cent.
Marketmen will also be eyeing the Consumer Price Index
(CPI) data to be announced later in the day, however it is
expected to ease to 7.2 per cent for the September as
compared to 7.8 per cent reported in the month of August,
helped by lower food and fuel costs.
TA TA STEEL
C o m pa ny
LT P
INFY
3889
243
6.7
UNITECH
22
1
3.8
JSWSTEEL
GM RINFRA
HCLTECH
C o m pa ny
LT P
19
-1
-6.3
1143
-71
-5.9
1739
44
2.6
JINDA LSTEL
156
-10
-5.8
A SIA NP A INT
663
8
1.3
B HA RA TFORG
762
-44
-5.4
P FC
241
3
1.1
NM DC
152
-9
-5.4
C hg
% C hg
C o m pa ny
LT P
C hg
% C hg
C o m pa ny
LT P
JETA IRWA YS
244
21
9.5
RISA INTL
ABAN
622
54
9.4
UNITECH
19
-1
-6.3
DEN
150
7
5.2
M ONSA NTO
2919
-171
-5.5
P IP A VA VDOC
41
2
5.0
A M TEKINDIA
100
-6
-5.4
GM RINFRA
22
1
3.8
M A HA B A NK
40
-2
-5.3
C hg
% C hg
C o m pa ny
LT P
C hg
% C hg
C o m pa ny
251
LT P
-31
-11.1
LIFELINE
295
45
18.0
INDINFO
1
0
-18.9
NDTV
139
19
16.0
SHRGLTR
21
-3
-10.6
TDP OWERSYS
375
41
12.4
SHA LP RO
4
0
-9.9
FINA NTECH
A STA R
C hg
231
19
8.9
KA ILA SH
22
-2
-9.3
1290
100
8.4
B A NA SFN
17
-2
-9.1
Meanwhile, Finance Minister Arun Jaitley has given the goahead for a major overhaul of the current monetary policy
framework wherein the Centre will specify ‘inflation targets’
for the Reserve Bank of India (RBI) to achieve and the RBI
will set inflation as its top priority in its policy statements.
There will be buzz in the India Inc on reports that the
Reserve Bank of India (RBI) plans to announce the final
norms on small and payments banks next month. There will
be some buzz in the coal and power stocks too, as the
PMO has asked the Coal Ministry to work out a plan of
action to deal with the present situation -- arising out of the
Supreme Court’s cancelling the allocation of 214 coal
blocks..
Domestic Market Overview
Benchmarks witness massacre on feeble global cues
Indian barometer gauges witnessed bloodbath on Friday with both the major indices losing over one percent
and ending below their crucial 7,900 (Nifty) and 26,300 (Sensex) levels. Sentiments remained dampened
throughout the session after two Fed officials’ indicated that the Federal Reserve will probably start raising
interest rates around the middle of next year. Moreover, investors opted to stay away from risky assets
ahead of the industrial production data due later during the day. Selling was both brutal and wide-based as
none of sectoral indices, barring software and technology, on BSE were spared. Counters, which featured in
the list of worst performers, include metal, auto and fast moving consumer goods.
Sentiments remained down-beat on report from the HSBC Emerging Markets Index (EMI) has stated that
manufacturing and services sectors in India expanded at a slower pace than China in September, even as
emerging market output touched an 18 month high in the same month. Moreover, market-participants failed
to draw any sense of relief from better than expected Infosys numbers. The IT bellwether has not only
surpassed market expectations on almost all operating and financial fronts but gave a surprise to the street
with a 1:1 bonus announcement. However, the company has maintained its guidance at 7-9% in dollar
revenue growth, which is much lower than Nasscom’s growth rate of around 13-15%.
The market sentiment was weighed down by the weakness in rupee which fell in on Friday due to fresh
demand for the US currency from banks and importers. Sentiments also remained dampened on report that
foreign portfolio investors (FPIs) sold shares worth a net Rs 20.89 crore on October 9, 2014. Stocks related
to metal sector hit rock bottom on the back of swift retreat in Chinese demand for iron ore and coal which in
turn led the global iron ore prices to touch near five-year lows and local coal prices to their weakest in six
years. On the flip side, stocks related to software and technology counters edged higher, as the finance
ministry has said that companies will be able to transfer or redeploy up to 50% of manpower from existing
units to new ones in special economic zones (SEZs) without losing any tax benefits.
Global Market Overview
Asian markets end in red on Friday
Asian markets ended in red on Friday, after a warning by the European Central Bank about that region’s
economic outlook sparked a rout in US shares.Taiwan market remained shut for the trade today for National
Day.The Bank of Japan agreed that exports remained weak and a few of them were cautious about a
sustainable rise in exports, the minutes of the bank’s September 3-4 policy meeting released showed.
Despite sluggish exports and factory output, the nine-member board still believed that the positive domestic
cycle from income to spending was in place in both the household and corporate sectors, and that Japan’s
economy was likely to continue its moderate recovery trend, overcoming the drag from the April sales tax
hike.
Global growth concerns drag US markets lower on Friday
Extending their previous session’s southward journey, the US markets ended notably lower on Friday on
account of global sell-off, with stock markets in Asia and Europe falling sharply on the day. European growth
concerns were mainly cited for the weakness. Investors remained worried about the euro-zone economy
after the week’s poor figures from Germany and comments from ECB president Mario Draghi that the
recovery was running out of steam. On economic front, the US Labor Department released a report before
the start of trading showing that another sharp drop in fuel prices contributed to a continued decline in U.S.
import prices in the month of September. The Labor Department said its import price index fell by 0.5
percent in September following a revised 0.6 percent drop in August. The street had been expecting import
prices to slide by about 0.7 percent. The report also showed that export prices dipped by 0.2 percent in
September after falling by 0.5 percent in August.
Dow Jones Industrial Average lost 115.15 points or 0.69 percent to 16,544.10, Nasdaq was down by 102.10
points or 2.33 percent to 4,276.24, while S&P 500 ended lower by 22.08 points or 1.15 percent to 1,906.13.
1,928.21
LKP Advisory Index Futures
(OI in '000 Shares)
Future
Chg
Spot
Chg
Prem /
13-Oct
(%)
13-Oct
(%)
Disc
Total Open Interest
13-Oct Chg (%)
NIFTY
7,887
-1.30
7,860
-1.26
26.9
16,520
-5.7
CNXIT
11,327
2.07
11,311
2.22
16.0
46
-6.1
BANKNIFTY
15,496
-2.55
15,454
-1.83
42.5
1,601
-3.2
Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares)
Symbol
Total OI
13-Oct % Chg.
Del Qty Cash Market
13-Oct
% Del.
Prev
% Del.
Increase
Del Qty
Spot
(Rs.)
Fut
Spot
Fut
(Rs.) Chg (%.) Chg (%.)
Prem /
Disc
INFY
4,354
7%
18,56,778
29%
61%
7,93,594
3889
3878
6.6%
6.5%
-10.3
BHEL
35,202
6%
38,58,792
29%
28%
1,65,698
222
219
1.2%
0.7%
-3.0
2,27,590
1%
70,91,141
18%
23%
9,77,724
22
22
3.8%
3.5%
0.1
5,902
0%
12,54,073
50%
42%
3,93,222
592
595
0.1%
0.0%
3.1
Fut
Spot
Fut
(Rs.) Chg (%.) Chg (%.)
Prem /
Disc
GMRINFRA
CIPLA
Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares)
Symbol
Total OI
13-Oct % Chg.
Del Qty Cash Market
13-Oct
% Del.
Prev
% Del.
Increase in
Del Qty
Spot
(Rs.)
ORIENTBANK
6,880
19%
5,70,741
24%
25%
23,754
224
225
-4.7%
-4.8%
SUNTV
1,862
9%
3,14,355
50%
39%
1,19,672
335
335
-1.6%
-2.3%
0.1
BHARATFORG
5,046
8%
8,04,163
49%
38%
5,75,153
761
764
-5.6%
-5.7%
2.9
CROMPGREAV
15,784
6%
21,66,389
37%
33%
4,48,511
202
203
-3.4%
-3.5%
0.9
SAIL
40,972
6%
36,88,820
46%
30%
27,31,554
73
71
-0.4%
-1.7%
-2.2
TATASTEEL
19,284
6%
23,16,443
38%
30%
6,49,175
448
450
-4.2%
-4.2%
1.8
MCLEODRUSS
0.7
2,538
5%
1,06,589
49%
47%
40,019
272
273
-2.9%
-3.1%
1.3
1,57,063
5%
1,12,18,239
19%
15%
19,14,774
19
19
-6.3%
-6.5%
0.1
HEXAWARE
10,520
5%
7,37,768
23%
18%
4,17,943
191
192
-0.3%
-0.1%
1.3
CAIRN
14,300
4%
18,57,139
59%
62%
10,07,437
286
286
-4.3%
-4.6%
0.2
UNITECH
Open Interest Break-up
(Rs. in Cr.)
13-Oct
10-Oct
Change in OI
% Chg
INDEX FUTURES
15,676
16,803
-1,127
-6.71
INDEX OPTIONS
1,09,765
1,05,742
4,023
3.80
TOTAL INDEX
1,25,441
1,22,545
2,896
2.36
-1.61
STOCK FUTURES
53,016
53,882
-866
STOCK OPTIONS
15,874
15,033
840
5.59
TOTAL STOCKS
68,890
68,915
-25
-0.04
GRAND TOTAL
1,94,331
1,91,460
2,871
1.50
FII's
1,19,179
1,18,206
973
0.82
75,152
73,254
1898
2.59
Others
LKP Advisory Corporate News
¾
Reliance Industries is planning to spend $16 billion for expanding petrochemical production capacity and lower feed and fuel costs to boost
profits. The company will invest the same in an integrated gasification combined cycle (IGCC) project that will convert captive petrocoke to
synthetic gas (syngas) which can be used to generate power, steam and hydrogen, which currently are being produced using expensive
imported LNG. Refinery off-gas from this unit will be used to extract petrochemical compounds like ethane, ethylene, propylene, butanes and
propanes at a $4.5 billion Refinery off-gas cracker (ROGC).
¾
In the wake of weak demand, Mahindra & Mahindra (M&M) is all set to stop production for four days this month across its tractor plants
located at Rudrapur and Jaipur. As part of aligning its production with sales requirements, the company would be observing no production
days at its tractor plants located at Rudrapur and Jaipur for four days during the balance period of October, 2014.
¾
In a bid to offer enhanced broking services, Federal Bank has entered into partnership with India Infoline, a part of IIFL Group. Federal
Bank’s customers in India and abroad will be offered IIFL’s enhanced broking services. The bank is aiming to connect its customers in India
and abroad to one of the most trustworthy brands in broking.
¾
Indovation Technologies has signed a term sheet to buy 100% stake in Symetric Life, a Hyderabad-based pharma solutions & services
company for Rs 15 crore. Along with the stake, the company would also acquire three products - SyMetric used for clinical data management
system (CDMS); Mindomatics used for computerised psychometrics tests and a pharma application likely to be rolled out by December 2014.
¾
Bharti Airtel has entered into partnership pact with the Telangana government to unveil the first public Wi-fi in the state. At present, the pilot
is in progress at 17 tested hotspot locations in Hyderabad that allow users to access Internet upto 750 Mb per day across operators.
¾
Power Finance Corporation (PFC) has agreed to fund the expansion of the AP Genco Krishnapatnam power project in Nellore district of
Andhra Pradesh. The project now has a functional 800 MW unit and second unit of 800 MW is ready for commissioning.
¾
HDFC Mutual Fund (MF) has acquired additional stake in TD Power Systems through open market transaction. HDFC Trustee Company A/c
HDFC Prudence Fund has bought 250,000 equity shares of the company at Rs 325 per share on October 9 on NSE. Moreover, the fund
house bought 200,000 shares of heavy electrical equipment maker at Rs 319 per share on October 8 on BSE. On October 7, HDFC Trustee
Company through various schemes bought 1.99 million shares representing 6% of total equity of the company via BSE and NSE.
¾
Cairn India’s average gross production for H1 FY15 stood at 206,125 barrels of oil equivalent per day (boepd), 3% lower than the previous
year due to the planned maintenance shutdown at the Rajasthan facilities and a suspension of gas sales at the Ravva block, partially offset by
higher production at the Cambay block.
¾
Aban Offshore has bagged total orders worth $182.66 million from ONGC. The first firm order is for the deployment of jack-up rig ‘Aban IV’
for a period of 3 years. The total value of this order is approximately $91.33 million equivalent to Rs 557 crore. The contract is expected to
commence during the first quarter of calendar year 2015.
¾
Tata Teleservices (Maharashtra) (TTML) has reported the subscriber figures as on September 30, 2014. The company’s total subscribers
stood at 10,751,467 of which Wireline contributed 825,587, FWT 713,433 and Mobile 9,212,447 subscribers.
¾
Foreign institutional investors (FIIs) have reduced their shareholding in Uco Bank by 21 basis points to 4.68 percent in Q2FY15 from 4.89
percent as on June 30, 2014. However, the domestic institutional investors (DIIs) have raised their stake in the bank by 44 basis points to 9.17
percent at the end of September 2014 from 8.73 percent as on June 30, 2014.
¾
Rourkela Steel Plant (RSP), a unit of Steel Authority of India (SAIL), has reported 23% rise in Crude steel output during April-September
period of 2014-15 to 1.35 million tonne (mt), its best ever performance since the inception of the plant. During the same period, hot metal
production surged 27.4% to 1.5 mt while salable steel output was 1.28 mt, a rise of 18.3%.
¾
IDFC Alternatives, multi-asset class management arm of IDFC, has announced final closing for its $900 million India Infrastructure Fund II.
This includes a commitment of $90 million from its parent IDFC Limited and remaining $810 million from third party Limited Partners (LPs).
LKP Advisory ¾
Foreign institutional investors (FIIs) have reduced their stake in Indian Bank by 73 basis points to 6.16 percent at the end of September 2014
quarter from 6.89 percent as on June 30, 2014. However, domestic institutional investors (DIIs) have raised their shareholding in the bank by
193 basis points to 8.41 percent in Q2FY15 from 6.48 percent as on June 30, 2014.
¾
Maruti Suzuki India is aiming to expand its presence in the A3 plus segment with Ciaz, which replaces SX4 sedan. Presently, the market in
A3 plus segment is about 1.25 lakh units out of 5 lakh in entire A3 segment, which is 20% of the 25 lakh car market.
¾
JSW Steel’s crude steel production in Q2FY15 increased by 11% and stood at 3.30 million tonnes as compared to 2.98 million tonnes in
Q2FY14. The production of rolled products (flat) increased by 6% to 2.61 million tonnes as compared to 2.45 million tonnes in Q2FY14.
Moreover, the production of rolled products (long) during the quarter soared by 21% at 0.56 million tonnes as compared to 0.46 million tonnes
in Q2FY14.
¾
Foreign institutional investors (FIIs) have increased their stake in Eros International Media by 163 basis points to 17.78 percent at the end of
September 2014 quarter from 16.15 percent as on Jun 30, 2014. Domestic institutional investors (DIIs) shareholding was unchanged at 1.24
percent at the end of September 2014.
¾
Global Offshore Services has entered into a Memorandum of Agreement for acquisition of one Anchor Handling Tug cum Supply vessel,
which is scheduled for delivery in Q12015.
¾
Lakshmi Automatic Loom Works has suspended the operations at Weaving Machinery Division at Hosur with immediate effect, pending
finalization of discussions with prospective foreign collaborators for manufacture of shuttleless weaving machines. The company has taken
this step in view of lack of orders for high speed ‘C’ type automatic shuttle weaving machines.
¾
Solix Technologies, Inc., a leading provider of Enterprise Data Management (EDM) solutions, has partnered with Hortonworks to deliver an
integrated Information Lifecycle Management (ILM) solution for the Hortonworks Data Platform (HDP). The Solix Big Data Suite provides an
ILM policy framework for Hadoop to manage the data lifecycle including ingestion, retention, archiving and retirement, ensuring security,
compliance and control for low cost, bulk data storage on a petabyte scale.
¾
Suraj has acquired land at village Chandarda, Mehsana district in state of Gujarat admeasuring 400,000 square meters which is almost clear
from agriculture to non agriculture and company is starting service center and production facility including extrusion press for stainless steel
long heater tube for power, oil and gas plant sectors.
¾
Jindal Steel & Power (JSPL) has received an approval for acquisition of remaining 10,20,000 equity shares of Rs 10 each for an aggregate
amount of Rs 1.02 crore only representing 51% equity stake in ‘JB Fabinfra’ (JBFAB) from its existing shareholders. The board of directors at
their meeting held on October 09, 2014 has approved for the same.
¾
Pritish Nandy Communications’ (PNC) subsidiary - PNC Digital, has announced an exclusive partnership of Ogle, its cutting edge video and
audio streaming platform with Think Why Not Group (TYN), the marketing force behind India’s bestselling authors. This partnership empowers
Ogle subscribers to watch live streamed events at Litomania, The October Lit Fest.
¾
Cupid has signed a 10 year Male Condom supply agreement with Safeware & Company based in Florida, USA. Cupid's WHO/UNFPA
Prequalified Male Condoms will be marketed under Cupid’s popular Green Love Brand throughout USA.
Economy
¾
Industrial production growth slows down to 0.4% in August
Contradicting the signs of economic revival, Indian industrial production (IIP) slows down to 0.4% y-o-y in the month of August as compared to
0.5% growth in the previous month and 0.4% in the same month of previous year. IIP growth in August was below than market expectation
and mainly dragged down by contraction in manufacturing sub-sector. The cumulative growth of industrial production for the period AprilAugust’ FY15 recorded at 2.8% as compared to 0% growth in the same period of previous fiscal.
Sector wise, the output of manufacturing sector, which occupies 75.52% weightage in the overall index, declined by 1.4% in August as
compared to the de-growth of 1% in the previous month. Electricity sector, which occupies 10.32% weightage in the overall index, grew by
12.9 % in the reported month as against 11.7% in July and mining sector output grew by 2.6% as compared to 2.1% in the previous month.
LKP Advisory The cumulative growth of Mining, Manufacturing and Electricity sectors during April-August’ FY15 over the corresponding period of 2013-14
stood at 2.5%, 1.8% and 11.7% respectively.
On Use-based classification, capital goods production, a barometer for investments in the economy, witnessed a contraction of 11.3% in
August as against a de-growth of 3.8% in July, showing that companies did not add new capacities in the reported month.
¾
Govt allows IT firms to transfer manpower to SEZs without losing tax benefits
In a big sigh of relief to Information technology and IT-enabled services (ITeS) sectors firms, the government has permitted these firms to
transfer or redeploy up to 50% of manpower from existing units to new ones in special economic zones (SEZs) without losing any tax benefits.
The Central Board of Direct Taxes (CBDT) has notified that mere transfer or redeployment of technical manpower from an existing unit of a
taxpayer to a new SEZ unit in the first year of commencement of business will not be construed as splitting up or reconstruction of an existing
business, provided the number of technical staff so transferred does not exceed 50% of the total manpower actually engaged in developing
software at any point of time. Earlier, the limit of technical staff transferred was set at much lower at 20%.
The government decision came after intense pressure by the industry body Nasscom seeking clarity over the availability tax benefits to the IT
companies that have set up parallel operations in SEZs to take advantage of profit-linked exemptions available under the policy.
Section 10AA of the Income Tax Act, 1961 provides tax benefit to a unit set up in a SEZ if the revenue is generated from exports of computer
software or from providing ITeS. However, this tax exemption is not available till now if the unit is formed by transfer of used plant or
machinery or splitting or reconstruction of an existing business.
¾
India initiates measures to ease customs norms
In order to boost the international trade, India has initiated measures to ease customs norms. The government has decided to set up a
national committee which will have representation from 7-8 departments to look after all aspects of trade facilitation. The committee will
suggest and implement measurers to ensure seamless movement of cargo by addressing constraints like high transaction costs and poor
infrastructure.
The move to ease custom norms came after the government blocked an international agreement on easing trade regulations. On July 31,
India vetoed the trade facilitation agreement at the World Trade Organisation (WTO), arguing that there should be parallel deal on food
security issue. However, India is fully committed to trade facilitation which is aimed at simplifying customs procedure, reducing transactions
cost and increasing transparency.
Prime Minister Narendra Modi, during his US visit, had told President Barack Obama that trade facilitation was important for India and it
expected the US' support in addressing India's concerns over public stockholding for food security. Moreover, Finance Minister Arun Jaitley in
its budget speech had said that the government will allocate significant funds towards trade facilitation and provide facility like extension of
24x7 customs clearance facilities to many more ports, airports and sea ports.
¾
Govt notifies 25% minimum public shareholding norms for listed PSUs
The government has notified 25% minimum public holding norms for listed public sector units (PSUs). The move is likely to help the
government to disinvest PSU shares worth an estimated Rs 60,000 crore over the next three years as well as ensure more PSU shares for
retail investors.
As per the government notification, over 30 listed PSUs will need to raise their public shareholding to minimum 25% by August 21, 2017.
Presently, the listed PSUs were required to have at least 10% public holding, whereas the minimum public holding in non-PSU listed
companies is already 25%.
The government had already decided that there should be a uniform norm for all companies listed on stock exchanges. There are around 9
public sector banks (PSBs), 25 Central Public Sector Enterprises (CPSEs) and one State-level public enterprise (SLPE) which are listed and
have less than 25% minimum public shareholding.
LKP Advisory ¾
HSBC Emerging markets index rises to 18-month high at 52.5 in September
Indicating that economic growth in emerging countries continues to revive, the services and manufacturing activities across emerging
markets touched an 18-month high level during September. The HSBC Composite Emerging Markets Index, based on the survey of around
8,000 firms in 17 countries, rose to 52.5 in September, up from 52.4 in August. Moreover, on a quarterly basis the EMI averaged 52.2 in Q3,
the best since the Q1 of 2013.
The HSBC survey highlighted that services activity rose at a stronger rate than manufacturing output for the second month running. The
significant output growth was mainly driven by strongest growth in China's services economy as services activity in Brazil, India and Russia
rose at either weak or marginal rates. However, the survey highlighted that the manufacturing and services sectors in India expanded at a
slower pace as compared to China in September. In Brazil, business conditions improved, albeit marginally, for the first time in six months in
September, with an upturn in new orders paving the way for a further upturn in the fourth quarter. While, Russia continued to eke out marginal
growth in September, however, the inflows of new business slow to near stagnation.
¾
India to receive the highest-ever inflow of FDI in the fiscal: DIPP official
Giving a reason to cheer to the new government, the Department of Industrial Policy and Promotion (DIPP) has said that India will receive the
highest-ever inflow of foreign direct investment (FDI) in the current financial year, attracted by the policy reforms announced by the National
Democratic Alliance (NDA) government.
While the highest so far FDI received by the country was in 2011-12 at $35.12 billion, in the four months of this fiscal alone inflows have
crossed $10.75 billion and in June only FDI inflow jumped by 34 percent to $1.92 billion.
The new government, since its formation has been taking all sorts of measures to boost FDI inflow in the country. It has raised FDI limit in
defence manufacturing and also cleared the long-delayed 100 percent FDI in railways, while there is a debate going on regarding 100 percent
FDI in the insurance sector.
Atul Chaturvedi, joint secretary in the DIPP said that we would achieve an all-time high in FDI inflows in FY15 given the extra focus on the
same we are giving and looking at increasing FDI with all these
promotional measures and promoting the country as an investment
destination. He, however, declined to give a target for the inflows, which the government is expecting for the fiscal.
Source: Reuters, Ace Equity & LKP Research
LKP Advisory Tech View
CNX NIFTY
TECHNICAL VIEW
After a brief bounce Nifty has again fallen back to 7850 levels indicating that volatility is likely to stay in the index. However, the index has taken
support at around 7820 level on multiple occasions and same is expected from Nifty in coming days. If Nifty manages to sustain 7850 level then it
can test 7920-7950 levels. The index has strong resistance at 8000 level and unless Nifty closes above that level further upside in the index will
remain a faint possibility.
IMPORTANT LEVELS FOR THE DAY
Support
BSE
NSE
BANKNIFTY
S1
26,459
7831
15390
S2
26,462
7773
15246
R1
26,454
7924
15624
R2
26,451
7982
15769
Pivot
26,456
7,877
15,507
Resistance
LKP Advisory PIVOT POINTS
S c rip Na me
CMP
RB2
RB1
PP
S B1
S B2
S c rip Na me
1403
1435
1419
1405
1392
1375
GAIL
ADANIENT
461
474
466
460
454
446
ADANIPORTS
259
276
268
262
255
247
ADANIPOWER
43
45
44
43
42
41
GODREJIND
ALBK
100
106
103
100
97
93
GRASIM
AMBUJACEM
211
219
215
213
210
206
HAVELLS
266
279
273
268
263
257
ANDHRABANK
66
72
69
66
63
60
HCLTECH
1738
1800
1757
1722
1688
1645
APOLLOHOSP
1055
1104
1078
1057
1036
1010
HDFC
1006
1068
1040
1017
994
965
APOLLOTYRE
220
241
229
219
210
198
HDFCBANK
867
900
885
872
860
844
ARVIND
281
300
292
285
277
269
HDIL
81
84
83
81
80
78
44
47
46
44
43
42
2841
2975
2893
2826
2760
2678
ASIANPAINT
663
701
678
660
641
619
HEXAWARE
191
207
198
191
184
176
AUROPHARMA
939
985
963
945
928
906
HINDALCO
150
159
155
152
148
144
AXISBANK
379
390
384
380
376
371
HINDPETRO
509
532
521
512
503
492
2354
2423
2380
2344
2309
2265
HINDUNILVR
720
750
736
725
714
700
BANKBARODA
859
893
876
862
849
832
HINDZINC
155
165
160
156
152
148
BANKINDIA
239
255
246
240
233
225
IBREALEST
67
70
69
67
65
64
BATAINDIA
1299
1368
1335
1309
1282
1249
1459
1505
1483
1465
1447
1425
BHARATFORG
761
837
802
774
745
710
IDBI
61
63
62
61
60
59
BHARTIARTL
392
411
402
395
388
379
IDEA
153
164
159
155
150
145
BHEL
222
236
227
220
213
204
IDFC
140
145
142
140
137
134
ACC
ASHOKLEY
BAJAJ- AUTO
CMP
RB2
RB1
PP
S B1
S B2
444
457
449
442
436
428
GLENMARK
711
735
723
713
703
691
GMRINFRA
22
24
23
22
20
19
290
301
296
292
287
282
3424
3553
3491
3440
3389
3327
HEROMOTOCO
ICICIBANK
BIOCON
482
504
494
485
477
467
IFCI
34
35
34
34
33
32
BPCL
670
693
682
673
665
654
IGL
422
452
437
425
413
399
CAIRN
286
306
296
288
280
271
INDIACEM
109
114
112
109
107
104
CANBK
367
382
374
367
361
353
INDUSINDBK
623
640
630
623
615
606
CENTURYTEX
529
554
543
533
523
512
INFY
3889
4253
3997
3790
3583
3326
CESC
735
774
756
741
726
707
IOB
57
60
59
58
57
55
CIPLA
592
616
602
590
579
565
IOC
375
402
390
380
369
357
COALINDIA
335
348
342
337
332
326
IRB
229
242
235
229
224
216
1704
1763
1734
1710
1685
1656
ITC
353
375
365
357
349
339
CROMPGREAV
202
216
210
204
199
192
JINDALSTEL
156
171
164
158
152
145
DABUR
215
217
216
215
215
213
JISLJALEQS
78
82
80
78
77
75
DISHTV
54
55
55
54
53
53
JPASSOCIAT
30
32
31
30
29
27
1767
1824
1792
1767
1741
1710
JPPOWER
12
13
13
12
12
12
153
163
157
152
147
141
JSWENERGY
73
76
74
73
71
69
2999
3102
3049
3006
2964
2911
JSWSTEEL
1143
1263
1206
1160
1114
1057
EXIDEIND
167
175
171
168
165
162
JUBLFOOD
1225
1281
1255
1233
1212
1185
FEDERALBNK
128
138
133
130
126
122
JUSTDIAL
1659
1783
1725
1678
1631
1573
COLPAL
DIVISLAB
DLF
DRREDDY
LKP Advisory PIVOT POINTS
S c rip Na me
CMP
RB2
RB1
PP
S B1
S B2
KOTAKBANK
1003
1037
1020
1006
993
976
KTKBANK
111
117
114
112
110
107
L&TFH
66
68
67
66
65
CMP
RB2
RB1
PP
S B1
S B2
TATACHEM
389
402
395
390
384
377
TATACOMM
378
401
387
376
364
350
64
TATAGLOBAL
160
168
164
161
158
154
312
326
320
314
309
302
TATAMOTORS
493
534
514
499
483
464
LT
1462
1508
1482
1461
1440
1415
TATAMTRDVR
324
354
340
330
319
305
LUPIN
1328
1357
1342
1329
1317
1302
TATAPOWER
83
86
84
83
82
80
M&M
1317
1399
1362
1332
1302
1265
TATASTEEL
448
471
460
451
443
432
M&MFIN
285
295
288
282
277
270
TCS
2679
2773
2728
2691
2655
2610
MARUTI
2966
3041
3000
2968
2935
2894
TECHM
2339
2446
2390
2345
2300
2244
MCDOWELL- N
2352
2457
2397
2348
2300
2240
TITAN
398
416
407
399
392
383
MCLEODRUSS
272
285
279
274
269
263
UBL
703
730
716
704
692
678
31676
32923
32341 31870
31399
30817
79
83
81
80
78
76
NHPC
19
20
19
19
19
19
2481
2604
2548
2503
2458
2402
NMDC
152
168
160
155
149
142
UNIONBANK
201
214
207
202
196
189
NTPC
141
145
143
141
139
137
UNITECH
19
21
20
20
19
18
OFSS
3341
3458
3402
3356
3310
3254
UPL
332
347
340
334
328
321
ONGC
404
415
410
406
401
396
VOLTAS
227
243
235
229
223
215
ORIENTBANK
224
240
232
226
220
213
WIPRO
585
614
600
588
576
562
PETRONET
179
188
184
180
176
172
YESBANK
573
593
581
571
561
548
PFC
241
259
248
239
230
218
ZEEL
319
329
324
319
315
310
PNB
900
935
914
896
879
857
POWERGRID
136
140
138
137
135
134
83
85
84
83
82
81
RANBAXY
609
643
623
607
591
571
RCOM
102
107
104
102
100
98
RECLTD
252
270
259
250
241
231
RELCAPITAL
443
462
453
446
439
430
RELIANCE
961
1001
976
955
935
910
RELINFRA
582
627
602
583
563
539
LICHSGFIN
MRF
PTC
RPOWER
71
74
72
71
70
69
SAIL
73
79
76
73
71
68
SBIN
2451
2542
2496
2459
2422
2376
SIEMENS
810
855
834
816
799
778
SRTRANSFIN
877
926
901
882
862
837
SSLT
250
268
259
252
245
237
SUNPHARMA
821
858
836
817
799
776
SUNTV
335
344
339
335
331
326
112
119
115
112
109
106
SYNDIBANK
LKP Advisory S c rip Na me
UCOBANK
ULTRACEMCO
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: lkpadvisory@lkpsec.com web: http://www.lkpsec.com LKP Advisory