Morning Notes - LKP Securities

Morning Notes
LKP Advisory
12-Mar-2015
FII's & DII's in equity
Indices
10-Mar
9-Mar
% Chg.
Major Indices
10-Mar
9-Mar
% Chg.
S&P BSE SENSEX
28,659
28,710
-0.18%
CAC 40 Index
4,998
4,882
2.37%
10-Mar
8,700
8,712
-0.14%
DAX Index
11,806
11,500
2.66%
S&P CNX NIFTY
Rs.Crs
Buy
Sell
Net
FII / FPI Investments
4344
4789
-445
DII's Investments
1697
2036
-339
S&P BSE MID CAP
10,816
10,860
-0.40%
Dow Jones Industrial A
17,635
17,663
-0.16%
S&P BSE SMALL CA
11,284
11,320
-0.32%
FTSE 100 Index
6,722
6,703
0.28%
FII's contribution to the total turnover
41%
Nasdaq Composite Ind
4,850
4,860
-0.20%
DII's contribution to the total turnover
17%
FII's in Derivatives
BSE Sectoral Indices
S&P BSE REALTY
1,724
1,717
0.42%
Major Asian Indices
10-Mar
9-Mar
% Chg.
S&P BSE TECk
6,350
6,325
0.40%
Nikkei 225
18,724
18,665
0.31%
Shanghai Composite
3,291
3,286
0.15%
Net
Taiwan SE Index
9,523
9,537
-0.14%
OI
10-Mar
Rs.Crs
Index Fut Index Opt Stock Fut Stock Opt
2,208
2,205
0.11%
S&P BSE AUTO
19,547
19,556
-0.05%
S&P BSE BANKEX
21,841
21,853
-0.05%
KOSPI Index
1,981
1,985
-0.20%
Chg.OI
8,148
8,158
-0.11%
Hang Seng Index
23,718
23,897
-0.75%
FIIs' contribution to the total Derivatives turnove
S&P BSE IT
11,675
11,717
-0.36%
S&P BSE CONSUMER D
10,292
10,331
-0.38%
Commodities (MCX)
10-Mar
9-Mar
% Chg.
Futures (NSE)
10-Mar
9-Mar
7,825
7,862
-0.48%
Aluminium (31MAR201
110
111
-0.90%
USDINR 27-MAR-2015
63.07
63.00
0.10%
S&P BSE CAPITAL GOO
17,622
17,717
-0.54%
Copper (30APR2015)
365
368
-0.72%
EURINR 27-MAR-2015
66.71
67.76
-1.55%
S&P BSE HEALTHCARE
S&P BSE POWER
S&P BSE FMCG
S&P BSE PSU
337
123
-297
-46
21487
55534
59464
3059
0.4%
1.0%
1.0%
1%
23%
% Chg.
17,010
-0.82%
Crude (19MAR2015)
3,000
3,061
-1.99%
JPYINR 27-MAR-2015
51.92
51.86
0.11%
9,458
9,539
-0.84%
Gold (3APR2015)
25,685
25,919
-0.90%
FTSE100 (20-MAR-201
6717
6893
-2.55%
S&P BSE METAL
9,698
9,859
-1.64%
Silver (5MAY015)
35,049
35,697
-1.82%
S&P500 (20-MAR-2015)
2051
2067
-0.81%
LTP
BHARTIARTL
390
22
6.0
NTPC
155
5
3.1
TECHM
2920
80
2.8
M&M
1256
28
2.3
KOTAKBANK
1376
28
2.1
LTP
UNITECH
20
1
IDEA
164
10
6.4
BHARTIARTL
390
22
6.0
RCOM
66
2
IDBI
76
2
NATCOPHARM
FORTIS
UNITECH
STAR
7.0
Chg % Chg
HINDALCO
131
-7
-5.1
CAIRN
224
-7
-2.9
SSLT
192
-6
-2.8
TATASTEEL
325
-6
-1.9
BANKBARODA
177
-3
-1.8
Company
LTP
HINDALCO
130
Chg % Chg
-8
-5.5
GODREJCP
-56
-4.7
224
-8
-3.5
3.1
ADANIPORTS
308
-10
-3.2
3.0
HINDPETRO
618
-17
-2.7
Company
LTP
Chg % Chg
134
17
14.2
1792
149
9.1
156
12
8.7
20
1
7.0
1064
55
5.4
LTP
Chg % Chg
IFBIND
620
101
19.4
SHRENUJ
52
6
11.8
JSL
40
4
10.7
22
2
10.0
337
29
9.4
SSWL
LTP
1144
Company
SHARONBIO
Company
CAIRN
Top Losers
BSE Midcap
Top Gainers
BSE Midcap
RESPONIND
LTP
Chg % Chg
Top Losers
BSE 100
Company
Company
Top Gainers
BSE Smallcap
Chg % Chg
Top Losers
CNX Nifty
Company
Top Losers
BSE Smallcap
Top Gainers
BSE 100
Top Gainers
CNX Nifty
16,870
S&P BSE OIL & GAS
Chg % Chg
HMT
48
-6
-11.0
PMCFIN
49
-5
-9.9
JUSTDIAL
1139
-110
-8.8
SPARC
503
-38
-7.1
ECLERX
1557
-87
-5.3
Company
LTP
MTNL
Chg % Chg
21
-5
-18.9
AJIL
76
-8
-9.9
ITI
24
-3
-9.5
1
-0.1
-9.0
236
-20
-7.9
SHALPRO
ABGSHIP
Domestic Market View
Markets to make some recovery on supportive
regional cues
The Indian markets continued their bearish trend and
ended modestly lower in the last session, as traders
preferred to book profits at every rise. Today, the start
is likely to be in green and some recovery can be
expected after the series of fall, supported by an
International Monetary Fund’s latest report raising its
forecasts of India’s economic growth to 7.2% in the
current fiscal year, compared to 5.6% as predicted
earlier. Traders will also be getting some support with
the statement of Revenue Secretary that the GST
rollout is on track. He has also said that the roadmap
for the removal of corporate tax exemptions
announced in the Union Budget are also set to be
announced during the course of this year. Though,
there will be some cautiousness too ahead of the
release of February CPI and January IIP data after
the market hours. Telecom stocks will keep buzzing
as the total bid value jumped up to Rs 96,000 crore,
higher by Rs 3,800 crore from the previous day on the
seventh day of the spectrum auction, with fierce
bidding in all circles except Bihar, Karnataka, Kolkata,
Tamil Nadu, UP (east) and UP (west) in 800 MHz.
Domestic Market OverView
Benchmarks end lower for third straight session
Extending their southward journey for third straight day, Indian equity benchmarks ended the volatile
day of trade slightly in the red as investors remained on sidelines ahead of data on industrial
production for January and consumer price index for February scheduled to be announced on
Thursday. Marketmen also traded with caution and were unwilling to take fresh positions ahead of
the proceedings in the Parliament particularly with respect to the passage of key bills such as Land
Acquisition Bill in Rajya Sabha.
However, losses remained capped as some support came with report that India’s current account
deficit (CAD) narrowed considerably to $8.2 billion or 1.6% of gross domestic product (GDP) for the
quarter ended December 2014 down from $10.1 billion or 2% of GDP on end-September 2014.
Sentiments remained downbeat on report that foreign portfolio investors (FPIs) sold shares worth a
net Rs 748.13 crore on March 10, 2015, as per provisional data released by the stock exchanges.
Meanwhile, stocks related to metal counter fell on concerns over the impact of the investigations by
the Central Bureau of Investigation. Additionally, public sector oil marketing companies (OMCs)
edged lower as global crude oil prices rebounded on Wednesday after data showed US crude stocks
fell for the first time in two months. On the flip side, select stocks from Auto space edged higher with
the Society of Indian Automobile Manufacturers (SIAM) reporting that domestic car sales grew 7% to
1,71,727 units in February, however there was 9% drop in rural motorcycle sales last month.
Moreover, telecom stocks remained in action with aggressive bidding by mobile phone operators in
auction of mobile airwaves, which led the government accumulate Rs 94,000 crore by the end of
auctioning after five days of bidding.
Global Market Overview
Asian markets end mostly in red on Wednesday
The Asian markets ended mostly in red on Wednesday, amid concerns about an interest rate hike in
the US. Growth in China’s investment, retail sales and factory output all missed forecasts in January
and February, leaving investors with little doubt that the economy is still losing steam and in need of
further support measures. The figures came a day after data showed deflationary pressures in the
factory sector intensified in February, and is likely to reinforce expectations of more interest rate cuts
and other policy loosening to avert a sharper slowdown in the world’s second-biggest economy.
Industrial output grew 6.8% in the first two months of the year compared with the same period a year
ago, the weakest expansion since late 2008. Chinese Retail Sales fell to an annual rate of 10.7%,
from 11.9% in the preceding month while Chinese Fixed Asset Investment fell to a seasonally
adjusted 13.9%, from 15.7% in the preceding month.
US markets closed lower on rate hike concerns
The US markets closed lower on Wednesday, with growing expectations of a rate hike by the
Federal Reserve. The Congressional Budget Office forecasts the US annual budget deficit to reach
$486 billion, $18 billion higher than the agency’s shortfall projection in January. CBO adjusted its
federal debt estimate for fiscal 2015 due to an anticipated increase in government spending for
Medicaid, Medicare and student loan programs. The agency also lowered its 10-year cumulative
deficit forecast to $7.2 trillion between 2016 and 2025, a $431 billion decrease from the January
forecast. Federal debt would equal 73 percent or 74 percent of the US gross domestic product over
the next few years and climb to 77 percent of the country’s GDP by 2025.
The Dow Jones Industrial Average lost 27.55 points or 0.16 percent to 17,635.39, Nasdaq was down
by 9.86 points or 0.20 percent to 4,849.94 while, S&P 500 dropped 3.92 points or 0.19 percent to
2,040.24.
LKP Advisory
Index Futures
(OI in '000 Shares)
NIFTY
Total Open Interest
Future
Chg
Spot
Chg
Prem /
10-Mar
(%)
10-Mar
(%)
Disc
10-Mar
-0.14
52.2
26,899
0.6
8,752
-0.09
8,700
Chg (%)
CNXIT
12,424
-0.43
12,352
-0.42
71.2
16
17.6
BANKNIFTY
19,188
-0.81
19,044
-0.05
144.3
2,759
3.6
Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares)
Symbol
HCLTECH
IGL
RECLTD
UNITECH
PFC
TECHM
IDBI
MOTHERSUMI
Total OI
10-Mar % Chg.
Del Qty Cash Market
10-Mar
% Del.
Prev
% Del.
Increase
Del Qty
Spot
(Rs.)
Fut
(Rs.)
Spot
Chg (%.)
Fut
Chg (%.)
Prem /
Disc
3,463
36%
1,631,018
62%
76%
479,301
2059
2062
0.7%
0.4%
2.5
783
14%
119,944
54%
33%
54,357
437
441
1.2%
1.4%
3.9
2.4
7,521
12%
1,294,589
44%
46%
118,258
348
350
0.8%
1.1%
183,348
10%
21,341,652
21%
17%
13,028,448
20
20
6.5%
7.0%
0.2
5,388
10%
893,592
34%
28%
418,156
287
289
0.7%
0.8%
2.0
3,139
9%
866,833
65%
68%
384,547
2922
2930
2.9%
2.8%
8.3
40,640
9%
854,396
16%
15%
253,040
76
77
3.0%
3.2%
0.5
3,091
6%
730,823
49%
56%
183,776
487
490
1.6%
1.7%
2.9
IDEA
19,278
5%
7,273,096
52%
44%
1,796,329
164
164
6.5%
5.9%
-0.1
BHARTIARTL
13,046
5%
7,131,630
51%
46%
1,385,304
390
391
5.9%
5.6%
1.6
Spot
(Rs.)
Fut
(Rs.)
Spot
Chg (%.)
Fut
Chg (%.)
Prem /
Disc
Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares)
Symbol
Total OI
10-Mar % Chg.
Del Qty Cash Market
10-Mar
% Del.
Prev
% Del.
Increase in
Del Qty
JUSTDIAL
1,055
28%
785,115
49%
60%
497,216
1139
1147
-8.8%
-8.9%
8.0
ABIRLANUVO
1,825
8%
453,368
74%
54%
335,148
1615
1622
-2.1%
-2.4%
7.7
IDFC
71,094
7%
2,878,934
46%
37%
1,014,658
169
170
-1.6%
-1.4%
1.4
CESC
2,421
6%
351,809
23%
41%
198,653
593
596
-0.2%
0.0%
3.5
APOLLOHOSP
ADANIPORTS
SRTRANSFIN
LT
AXISBANK
TVSMOTOR
482
6%
67,997
49%
37%
26,343
1347
1355
-0.8%
-0.8%
7.8
10,562
6%
1,706,596
33%
32%
1,257,586
308
310
-3.1%
-2.9%
2.3
999
5%
289,075
62%
61%
33,524
1167
1174
-2.1%
-2.1%
7.7
8,220
5%
1,000,883
49%
36%
272,715
1740
1752
-0.7%
-0.6%
12.3
31,252
5%
2,073,835
31%
27%
320,710
584
588
-0.3%
-0.1%
4.3
4,629
5%
1,214,554
47%
35%
597,187
285
287
-3.3%
-2.9%
1.7
Open Interest Break-up
(Rs. in Cr.)
10-Mar
09-Mar
Change in OI
% Chg
INDEX FUTURES
28,935
28,637
298
1.04
INDEX OPTIONS
110,171
107,419
2,752
2.56
TOTAL INDEX
139,106
136,056
3,050
2.24
STOCK FUTURES
73,418
71,883
1,535
2.14
STOCK OPTIONS
17,714
17,038
676
3.97
TOTAL STOCKS
91,132
88,921
2,211
2.49
GRAND TOTAL
230,238
224,976
5,261
2.34
FII's
139,543
138,251
1293
0.94
90,694
86,725
3969
4.58
Others
LKP Advisory
Corporate News
¾
Mahindra USA (MUSA), the wholly-owned subsidiary of Mahindra & Mahindra (M&M), and Yahoo Sports Radio are hitting the air
with a comprehensive nationwide marketing partnership to support the continued robust growth of the Mahindra brand and the
company’s extensive dealer network. The campaign provides Mahindra with a sweeping, multi-platform presence on Yahoo Sports
Radio’s network of over 500 radio station affiliates. In this new partnership, Mahindra will be a presenting sponsor of Yahoo Sports
Radio’s coverage updates of several of the largest sporting events of the year, including the recently completed coverage of Super
Bowl XLIX and the upcoming March Madness Collegiate Basketball events.
¾
Sharon Bio-Medicine has received the certification for the approval of Good Manufacturing Practices (GMP) for both, Capsules
and Tablets from United Kingdom - Medical & Health Care Product Regulatory Agency (UKMHRA) for its expanded area of
Formulation and Tablets unit located at Selaqui, Uttarakhand.
¾
Omkar Speciality Chemicals (OSCL) has commissioned its Unit No VI, located at Plot No B-15 & B-15, Lote Parshuram MIDC,
Chiplun, in Maharashtra. The plant with a volumetric capacity of 300 Metric Tonnes Per Annum (MTPA) will manufacture a number
of advance intermediates for pharma industry catering to essential life-saving drugs and veterinary APIs with the state of the art
facility for production and quality control. Besides, with the commissioning of the above facility, the status of various operational
capacities in OSCL and its subsidiaries has reached a total capacity of 4920 MTs per annum.
¾
Mahindra Two Wheelers (MTWL), part of the $16.5 billion Mahindra & Mahindra (M&M) has entered into a partnership with mobile
commerce platform -- Paytm -- for online retailing of Mahindra Centuro motorcycles and Mahindra Rodeo UZO range of scooters.
¾
Bharat Heavy Electricals (BHEL) has achieved one more milestone by successfully commissioning another 270 MW coal based
thermal power plant in Maharashtra. Incidentally, on the same day, BHEL has also commissioned the second 660 MW supercritical
thermal unit at NTPC Barh in Bihar. The unit was commissioned at RattanIndia Power’s (formerly Indiabulls Power) upcoming
thermal power project located at village Nandgaonpeth in Amravati district of Maharashtra.
¾
Wipro, a leading global information technology, consulting and business process services company, is reportedly planning to
officially launch business process outsourcing (BPO) services in the domestic market with major focus on transaction processing
works instead of pure voice-based BPO services. Currently, the company has a very little presence in the BPO space in the country
and the service is mainly focused on global markets. The company is creating two horizontal practices around ‘digital India’ and
‘smart city’ with separate teams to exploit business opportunities in these areas.
¾
VHCL Industries has received an export order worth Rs 30 crore from an overseas customer for supply of ‘Specialty Plastic
Recycled Granules’. These granules have been developed to enhance product performance while reducing cost for the end user.
¾
In a bid to create awareness on road safety, Hindustan Zinc (HZL) has entered into partnership with Rajasthan Parivahan
Nirikshak Sangh (RPNS), a body affiliated to All India Federation of Motor Vehicles Department Technical Executive Officers
Association, Bangalore.
¾
The US Food and Drug Administration (USFDA) auditors have inspected two manufacturing facilities of Shilpa Medicare located at
Karnataka. The result of the audit has been awaited by the company.
¾
In a bid to scale up its non-cigarette fast-moving consumer goods (FMCG) business, Diversified conglomerate ITC is scouting for
more acquisitions. The company is aiming cumulative brand turnover from non-cigarette segment to increase to Rs 15,000 crore in
the next two-three years.
¾
Goa Carbon has reported production of 13,694.70 MT (million tonnes) of Calcined Petroleum Coke for the month of February
2015. Of the total production achieved for the month, Bilaspur plant produced 2,279.90 MT, Goa plant produced 5,077.80 MT of
Calcined Petroleum Coke while Pradeep plant produced 6,337.00 MT.
LKP Advisory
¾
HDFC Mutual Fund has bought 1.96 lakh shares of APL Apollo Tubes through open market route. The shares were purchased on
an average price of Rs 365.05 valuing the transaction to Rs 7.15 crore. On the other hand, EMBLEM FII has sold 2 lakh shares of
the company for an average price of Rs 365.15 through open market route.
¾
In a bid to raise its steel-making capacity to 40 million tonnes per annum (mtpa) by 2025, JSW Steel is planning to focus on
acquisitions as well as expansion through the brownfield and greenfield routes.
¾
Adani Power is reportedly in advanced talks with Adhunik Group to buy Adhunik Power. The deal negotiations are hovering
between Rs 3,500 to 4,000 crore which is the expected enterprise value of Adhunik Power. Adhunik Metaliks will use the proceeds
to re-pay part of the debt pile on its books.
¾
Wipro, a leading global information technology, consulting and business process services company has been awarded with a
ANSI/TIA-942:2014 Rated 3 design conformity certificate for its state-of-the-art data centers at Greater Noida-II and Pune.
¾
Housing Development Infrastructure (HDIL) has launched an affordable housing project at Kurla in Mumbai. The project,
Premier Legend, offers 1 and 2 BHK flats with superior amenities like a gymnasium, kids play area and landscaped garden among
others.
¾
Cholamandalam Investment & Finance Company has tied-up with Cognizant to digitally transform its vehicle finance business
operations, from loan origination through recovery, in order to reduce costs, improve business agility, and deliver an integrated
customer experience.
¾
Dr Reddy's Laboratories has established a new formulation development laboratory at its facility in Miyapur in Hyderabad. This
was part of expansion of its existing custom service facilities.
¾
Maruti Suzuki India will proactively inspect and replace the `right hand door latch assembly’ of 33,098 vehicles comprising 19,780
units of Alto 800 and 13,318 units of Alto K10 manufactured between December 08, 2014 and February 18, 2015. The company’s
dealers in the domestic market will contact owners of all the affected vehicles. The dealer workshop technicians will inspect the
condition and carry out the necessary replacement, free of cost.
¾
HCL Technologies, a global business and IT service provider, and Aegon, a multinational life insurance, pensions and asset
management company, have opened their joint cXstudio, aimed at delivering customer experience excellence through the adoption
of the latest digital technologies.
¾
Asian Paints has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to set up a
manufacturing facility for paints and intermediates at Pudi Village, Rambilli Mandal, Vishakhapatnam District in Andhra Pradesh.
¾
Himachal Futuristic Communications (HFCL) has incorporated a wholly owned subsidiary (WOS) on February 23, 2015 by the
name ‘HFCL Advance Systems’. The registered office of the aforesaid company is situated at 8, Electronics Complex,
Chambaghat, Solan in state of Himachal Pradesh.
.Economy
¾
Govt revives plans of setting up fertilizer plant in Iran
The government has revived plans to set up a fertilizer plant in Iran with an investment of about Rs 5,000 crore. The proposal is to
set up a urea/ammonia JV Project with capacity to produce 1.3 MT Urea for import to India. However, the government has
requested the Persian Gulf nation to offer long term gas contract for manufacturing the soil nutrient at feasible rates.
The government has nominated companies like Rashtriya Chemicals and Fertilizers (RCF), Gujarat Narmada Valley Fertilizers &
Chemicals (GNFC) and Gujarat State Fertilizers Corporation (GSFC) for the proposed 1.3 million tonne urea joint venture
plant. These Indian companies’ have appointed SBI Capital to identify the Iranian partners for the Joint Venture Project.
LKP Advisory
Notably, both the nations have been in discussions for setting up of a fertilizer plant in the Persian Gulf nation since 2013, but talks
failed to fructify stuck over gas price issue. However, India has revived its plans after Iranian authorities approached the
government officials and expressed willingness to partner with them in this project.
¾
Government to support oil PSUs in case of US sanctions: Dharmendra Pradhan
Government is likely to lend a helping hand to Indian oil PSUs in protecting their economic interest from being impacted in the
eventuality of US sanctions against them for investing in Iran. Recently, Government Accountability Office (GAO) of US named Oil
and Natural Gas Corp (ONGC), Indian Oil Corp (IOC) and Oil India (OIL) along with two Chinese firms for having energy ties with
Iran, an act for which it can impose sanctions against them.
Petroleum Minister Dharmendra Pradhan though has not elaborated the details but has said that we will look at ways how our
companies won’t be affected by any adverse situation. He further said that “India will take its own stand, independent diplomatic
stand on the issue,” he said. “Certainly economic interest of our companies and country will be priority.”
The US Iran Sanctions Act provides for steps against persons, including foreign firms, investing more than $ 20 million in Iran’s
energy sector in any 12-month period. ONGC, IOC and OIL have been named for having 40 per cent, 40 per cent and 20 per cent
interest respectively in the Farsi block of Iran, though the three companies have said that exploration contract (for Farsi block)
expired in 2009 and that they had not carried out any activity after 2007 in the Farsi Block. They had proposed investing $5.5 billion
to produce gas from the 21.68 trillion cubic foot discovery they made in the offshore area located near the Saudi Arabian border.
¾
Domestic car sales grew 6.85% to 1,71,727 units in February
In an encouragement to the auto makers, the Society of Indian Automobile Manufacturers (SIAM) reported a strong February car
sales numbers. As per SIAM data domestic car sales grew 6.85% to 1,71,727 units in February, compared to 1,60,717 units in the
year ago period. SIAM stated that even though growth will remain in single digits, the passenger car sales is inching toward the
lower end of the growth guidance given by automobile trade body of 5-10% in Fy15 (2014-15) as passenger vehicle sales in the
first 11 months of the year to end-March rose 4 per cent to 2.36 million.
There was some concern from weakening rural sales that led to a 9% drop in motorcycle sales last month and could impact other
segment in the long term as the rural market accounts for nearly half of the two wheeler demand.Overall two-wheeler sales fell
0.99% to 12,08,084 units in February from 1220141 in the year ago period. Commercial Vehicle sales continued on recovery path
as its sales rose 10.13% to 52,843 units in February. Sales of heavy and medium trucks grew 38% to 18,767 units as demand
picked up in the mining, infrastructure and freight related segments.
¾
Government likely to revise the ‘5/20’ rules for Indian carriers
In its effort to bring a balance between domestic and foreign carriers, the government is planning to revise the existing ‘5/20’ rules
for Indian carriers to operate international flights. The civil aviation ministry wants the criteria to fly abroad be based on technical
and financial parameters rather than the number of years of operation or the number of aircraft.
As per the existing norms, a domestic carrier wishing to fly abroad must possess a valid permit of operation, lease or purchase at
least 20 aircraft and have at least five years experience in the domestic skies. The ministry may also consider taking away unused
bilateral rights with existing airlines and give them to other carriers, including the new entrants who may be allowed to fly abroad.
In 2014, Indian carriers utilised 32 percent of the traffic rights on international routes against total entitlements available, while the
utilisation by foreign airlines stood at 62 percent during the same period. On lucrative European routes, Indian carriers used less
than 10 per cent of the capacity allocated to them, leaving most of the market share to foreign airlines. In the Asia-Pacific region,
foreign carriers have a 55 per cent share, while on India-US routes, domestic airlines hardly fly, despite the unlimited rights they
have.
LKP Advisory
¾
Q3 current account deficit narrows; reaches 1.6% of GDP
In an encouraging development, India's current account deficit reached $8.2 billion, or 1.6% of gross domestic product, in the
October-December quarter, lower than the previous quarter but double from a year earlier. The current account deficit had reached
$4.2 billion or 0.9% of GDP a year earlier, while it reached $10.1 billion or 2.0% of GDP in the previous quarter. The reduction in
Q3FY15 CAD was primarily on account of net exports of services which picked up in q-o-q terms on the back of an improvement in
net earnings through travel and software services, and lower net outflows under primary income (profit, dividend and interest).
However, balance of payment (BoP) stood in surplus for fifth consecutive quarter at $13.2 billion during October- December
quarter. It was also almost double the $6.9 billion surplus in the previous quarter. This considerable improvement on a y-o-y basis
on the back of a higher growth in merchandise exports and a marginal rise in merchandise imports, with a sizable increase in net
financial flows financing the CAD and enabling a large build-up of reserves.
The merchandise trade deficit at $39.2 billion widened on a q-o-q basis on account of a larger decline in merchandise exports (7.3
per cent) than in merchandise imports (4.5 per cent); in terms of y-o-y changes too, the trade deficit in Q3 2014-15 widened due to
a decline in exports (1.0 per cent), while imports increased (4.5 per cent).
On a BoP basis, a net accretion of $ 13.2 billion to India’s foreign exchange reserves in Q3 of 2014-15 was reported, almost double
the accretion in the preceding quarter, but was lower than the same quarter of the previous year, bolstered by special non-resident
and banks’ overseas borrowings.
CAD during the first nine months of the fiscal, shrank to $26.2 billion or 1.7 percent of GDP against $ 31.1 billion or 2.3 percent of
GDP during the same period last fiscal. The trade deficit narrowed to $ 112.5 billion in the April-December period from $ 116.9
billion in the same period year-ago. For the first three quarters, the total accretion to the forex kitty was of $31.3 billion against a $
8.4 billion in the same three quarters of previous fiscal.
Source: Reuters, Ace Equity & LKP Research
LKP Advisory
Tech View
CNX Nifty
Technical View
Nifty continued to trade in a range taking support near 8650 levels and finding resistance at 8780 levels. the index is expected to
continue its range bound move today. The next triggers are likely to come from macroeconomic data to be released today evening
which will closely watched by market participants. The market breadth though witnessed some improvement but remained skewed
toward declines indicating pressure may again play havoc at higher levels. The index is expected to open on positive note and test
8750 levels today. If Nifty fails to breach 8780 level today then it can fall back to 8700 levels during the day.
IMPORTANT LEVELS FOR THE DAY
Support
BSE
NSE
BANKNIFTY
S1
28,558
8667
18885
S2
28,379
8611
18683
R1
28,849
8758
19211
R2
29,028
8814
19413
Pivot
28,704
8,713
19,048
Resistance
LKP Advisory
Tech View
PIVOT POINTS
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
ACC
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
1640
1700
1670
1646
1622
1593
GAIL
389
410
397
386
376
362
ADANIENT
649
682
664
649
635
616
GLENMARK
831
890
863
840
818
790
ADANIPORTS
308
333
320
310
299
287
GMRINFRA
17
17
17
17
16
16
ADANIPOWER
52
55
53
52
50
48
GODREJIND
331
336
333
330
327
323
ALBK
106
109
107
105
103
101
GRASIM
3701
3799
3737
3687
3637
3576
AMBUJACEM
260
271
265
260
255
249
HAVELLS
283
299
291
285
279
272
ANDHRABANK
82
85
83
83
82
80
HCLTECH
2059
2183
2121
2071
2020
1958
APOLLOHOSP
1347
1418
1384
1356
1328
1294
HDFC
1323
1363
1341
1324
1306
1285
APOLLOTYRE
174
179
176
174
171
168
HDFCBANK
1056
1073
1063
1056
1049
1040
ARVIND
295
312
304
297
291
283
HDIL
115
120
117
114
112
108
ASHOKLEY
75
78
76
75
74
72
2613
2661
2633
2611
2589
2561
ASIANPAINT
809
830
820
812
804
794
HEXAWARE
279
293
286
280
275
268
1112
1177
1146
1120
1094
1063
HINDALCO
130
148
139
132
125
116
584
603
593
586
578
568
HINDPETRO
619
665
644
626
609
587
2098
2196
2149
2112
2074
2027
HINDUNILVR
969
1006
984
966
948
925
AUROPHARMA
AXISBANK
BAJAJ-AUTO
HEROMOTOCO
BANKBARODA
177
185
181
178
174
170
HINDZINC
170
173
171
170
169
167
BANKINDIA
218
227
222
218
214
209
IBREALEST
75
78
76
74
73
71
BATAINDIA
1222
1261
1239
1222
1204
1183
ICICIBANK
333
344
338
333
328
322
BHARATFORG
1305
1346
1318
1295
1272
1244
IDBI
76
82
79
76
73
70
BHARTIARTL
390
426
402
382
362
338
IDEA
164
178
169
161
153
144
BHEL
258
269
263
259
254
249
IDFC
169
176
173
170
167
163
BIOCON
428
447
438
430
423
414
IFCI
36
37
36
36
35
34
BPCL
751
791
772
757
741
723
IGL
437
452
443
435
428
418
CAIRN
224
235
230
225
221
215
INDIACEM
99
102
100
99
98
96
CANBK
407
419
412
407
402
396
INDUSINDBK
890
921
906
893
881
866
CENTURYTEX
573
606
585
567
550
528
INFY
2182
2295
2241
2197
2153
2099
CESC
593
650
624
602
581
555
IOB
46
48
47
46
45
44
CIPLA
718
757
738
723
707
688
IOC
341
359
350
343
336
327
COALINDIA
369
375
372
369
366
362
IRB
240
251
245
241
236
231
2111
2167
2134
2108
2081
2049
ITC
338
343
341
339
337
334
CROMPGREAV
176
183
180
176
173
169
JINDALSTEL
191
199
194
190
186
180
DABUR
268
281
273
266
259
251
JISLJALEQS
65
67
66
65
64
63
DISHTV
84
87
85
84
82
80
JPASSOCIAT
27
28
28
27
27
26
1774
1838
1803
1775
1747
1712
JPPOWER
12
12
12
11
11
11
145
154
148
144
139
133
JSWENERGY
109
117
113
109
106
102
3468
3683
3557
3456
3355
3229
JSWSTEEL
931
973
953
937
921
901
COLPAL
DIVISLAB
DLF
DRREDDY
EXIDEIND
184
189
186
184
181
179
JUBLFOOD
1552
1605
1578
1555
1533
1506
FEDERALBNK
138
142
140
138
137
135
JUSTDIAL
1139
1347
1251
1173
1095
999
LKP Advisory
Tech View
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
KOTAKBANK
1376
1429
1395
1367
1339
1304
TATACHEM
450
459
454
450
446
441
131
135
133
131
130
128
TATACOMM
428
446
434
425
416
404
66
68
67
66
65
65
TATAGLOBAL
158
162
160
158
156
154
466
483
474
467
460
451
TATAMOTORS
551
578
565
555
544
531
LT
1740
1792
1766
1746
1725
1700
TATAMTRDVR
340
356
347
341
334
326
LUPIN
1872
1941
1907
1879
1851
1817
TATAPOWER
81
83
82
81
80
79
M&M
1260
1313
1277
1248
1219
1183
TATASTEEL
325
343
335
328
322
313
M&MFIN
251
267
259
253
246
238
TCS
2607
2707
2660
2621
2583
2536
MARUTI
3656
3726
3683
3648
3613
3570
TECHM
2922
3071
2973
2893
2814
2716
MCDOWELL-N
3620
3843
3729
3637
3545
3431
MCLEODRUSS
241
250
245
241
236
231
41452
42524
41972
41526
41080
40528
NHPC
20
20
20
20
20
19
NMDC
129
133
131
129
127
125
KTKBANK
L&TFH
LICHSGFIN
MRF
NTPC
154
163
157
152
147
140
OFSS
3303
3404
3352
3310
3268
3217
ONGC
310
323
317
312
307
ORIENTBANK
234
248
242
237
PETRONET
177
186
182
178
992
69
71
70
69
68
67
2987
3099
3045
3002
2959
2906
170
177
173
170
167
164
20
20
19
18
428
421
413
301
VOLTAS
269
285
275
266
257
247
231
225
WIPRO
655
698
678
661
644
623
175
171
YESBANK
823
848
835
824
814
801
ZEEL
349
361
353
346
339
331
293
287
281
274
166
163
161
158
POWERGRID
148
152
150
148
147
145
81
85
83
82
80
78
794
827
811
799
786
771
66
70
68
66
64
62
RECLTD
348
369
357
347
337
325
RELCAPITAL
442
457
450
444
438
430
RELIANCE
856
883
870
859
849
836
RELINFRA
459
473
465
459
452
444
RPOWER
58
60
59
58
58
57
SAIL
66
69
67
66
65
64
SBIN
285
296
291
287
282
277
SIEMENS
1392
1437
1412
1392
1371
1346
SRTRANSFIN
1167
1237
1203
1176
1148
1114
193
203
198
194
190
185
1010
1057
1035
1017
1000
978
SUNTV
406
465
437
414
391
363
SYNDIBANK
112
116
114
113
111
109
LKP Advisory
387
435
300
SUNPHARMA
396
1010
21
169
UNITECH
402
1023
443
287
SSLT
UNIONBANK
409
1037
20
163
RCOM
ULTRACEMCO
417
1054
426
PNB
RANBAXY
UCOBANK
400
1020
UPL
PFC
PTC
TITAN
UBL
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