morning notes

Morning Notes

6 Apr,2017

LKP Advisory

Indices 5-Apr 3-Apr % Chg. Major Indices 5-Apr 4-Apr % Chg. ‎₹ Crs

S&P BSE SENSEX 29,974 29,910 0.21% Dow Jones Industrial Average20,648 20,689 -0.20% 05-Apr Buy Sell Net

S&P CNX NIFTY 9,265 9,238 0.30% Nasdaq Composite Index 5,864 5,899 -0.58% FII / FPI Investments 7,798 7,458 340

NIFTY MID100 FREE 17,467 17,333 0.77% CAC 40 Index 5,092 5,101 -0.18% DII's Investments 3,294 3,488 -194

NIFTY SML100 FREE 7,163 7,072 1.29% FTSE 100 Index 7,332 7,322 0.13% FII's contribution to the total turnover 44%

DAX Index 12,218 12,282 -0.53% DII's contribution to the total turnover 20%

NIFTY REALTY 226 219 3.10% Major Asian Indices 5-Apr 4-Apr % Chg. ‎₹ Crs

NIFTY MEDIA 3,224 3,156 2.16% Hong Kong 24,401 24,261 0.57% 05-Apr Index Fut Index Opt Stock Fut Stock Opt

NIFTY INFRA 3,196 3,148 1.53% Nikkei 225 18,861 18,810 0.27% Net 635 -97 -291 48

NIFTY PSU BANK 3,576 3,526 1.43% Korea 2,161 2,161 -0.01% OI 22,882 54,960 82,148 3,896

NIFTY ENERGY 11,979 11,819 1.35% Shanghai 3,270 3,223 1.48% Chg.OI 0.3% 6.0% 1.5% 28.5%

NIFTY AUTO 10,034 9,921 1.13% Taiwan 9,949 9,812 1.41% FIIs' contribution to the total F&O turnover 20%

NIFTY METAL 3,137 3,106 1.02%

NIFTY CONSUMPTION 4,036 4,000 0.91% Commodities (MCX) 5-Apr 3-Apr % Chg. 5-Apr 3-Apr % Chg.

NIFTY BANK 21,653 21,548 0.49% Aluminium( 28APR2017) 127.5 125.9 1.3% USDINR 26-APR-2017 65.09 65.23 -0.21%

NIFTY PHARMA 10,541 10,504 0.36% Copper( 28APR2017) 386.2 376.7 2.5% EURINR 26-APR-2017 69.54 69.61 -0.10%

NIFTY FMCG 23,584 23,640 -0.24% Crude (19APR2017) 3,332 3,325 0.2% JPYINR 26-APR-2017 58.79 58.59 0.33%

NIFTY FIN SERVICE 8,804 8,826 -0.25% Gold (05APR2017) 28,675 28,862 -0.6% DJIA (21-Apr-2017) 20,663 20,653 0.05%

NIFTY IT 10,510 10,592 -0.77% Silver (5MAY2017) 42,258 42,570 -0.7% S&P500 (21-Apr-2017) 2,358 2,362 -0.18%

BSE Sectoral Indices

Curr. Derivatives (NSE)

FII's in Derivatives (F&O)

FII's & DII's in equity

Company LTP Chg % Chg Company LTP Chg % Chg

ADANIPORTS 358 16 4.6 HCLTECH 848 -18 -2.1

MARUTI 6335 263 4.3 COALINDIA 290 -5 -1.7

RELIANCE 1415 40 2.9 INFY 995 -14 -1.4

ZEEL 543 15 2.8 TECHM 447 -6 -1.4

HINDALCO 198 4 2.2 ITC 278 -3 -1.2


TITAN 491 31 6.7 HDFC 1490 -43 -2.8

RCOM 41 2 4.8 COALINDIA 290 -5 -1.7

ADANIPORTS 357 15 4.5 TECHM 447 -7 -1.4

MARUTI 6339 267 4.4 HCLTECH 853 -12 -1.4

PFC 154 6 4.3 INFY 995 -14 -1.4


MFSL 595 27 4.8 CROMPTON 220 -5 -2.1

RCOM 41 2 4.8 TORNTPHARM 1477 -30 -2.0

JSWENERGY 67 3 3.9 GET&D 335 -5 -1.5

SAIL 65 2 3.8 AMARAJABAT 896 -13 -1.4

TVSMOTOR 450 15 3.5 AJANTPHARM 1723 -24 -1.4


HEG 270 45 20.0 GALLISPAT 340 -79 -18.8

GRAPHITE 134 19 17.0 BAJAJELEC 348 -25 -6.6

SOBHA 400 57 16.5 DELTACORP 203 -11 -5.2

UNITECH 6 1 15.4 KSK 8 -0.4 -4.8

KRIINFRA 68 8 13.1 HIGHGROUND 27 -1 -4.3

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Domestic Market View

Markets to make a soft start; RBI’s policy decision eyed

The Indian markets despite a choppy trade posted

gains in last session and the benchmarks ended at

record closing highs ahead of the Reserve Bank of

India's monetary policy review. Today, the start is likely

to be cautious and somber, tailing weak global cues.

All eyes will be on the Reserve Bank of India at its first

bi-monthly monetary policy review of this fiscal,

though general expectation are that it will keep

interest rates unchanged, in view of inflation numbers

but its statement will eyed. Meanwhile, global credit

rating agency Crisil in its latest report has said that CPI

inflation is likely to average higher at 5 percent in the

current fiscal on expectations of increasing pressure

on food prices as well as uptick in global oil and

commodity rates. There will be negative reaction to a

Sebi survey that more than 95 per cent Indian

households prefer to park their money in bank

deposits, while less than 10 per cent opt for investing

in mutual funds or stocks. Some support to the

markets can come with Finance Minister Arun Jaitley

presenting the much-awaited Goods and Services Tax

(GST) Bill for discussion and passage in Rajya Sabha

on Wednesday. There will be some buzz in the steel

sector stocks, as the Ministry of Steel is going to rank

non-integrated secondary steel producers. The

ranking will draw inspiration from the Smart City

ranking approach that takes into account multiple

factors.

Morning Notes

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Domestic Market Overview

Indian benchmarks settle at record closing highs ahead of RBI policy review

Indian stock markets sustained the joy of closing in the positive territory for the second successive

session on Wednesday after the frontline equity gained around quarter percent and settled at record

closing highs. Sentiments got some support after government exceeded the tax collection estimates

for 2016-17 fiscal at Rs 17.10 lakh crore, indicating that it should be able to meet the fiscal deficit

target for the year. While direct tax mop-up during the April-March period grew 14.2% at Rs 8.47 lakh

crore, indirect tax kitty swelled by 22% over last year to Rs 8.63 lakh crore. Some support also came

with the report that department of Industrial Policy and Promotion (DIPP) and global think-tank

OECD are jointly organising a seminar in Delhi to assess India's FDI regime and find ways to further

improve the ease of doing business. The international seminar will also analyse the business climate

in the country.

However, many market participants remained on the sidelines and refrained from any buying activity

ahead of the Reserve Bank of India's monetary policy statement due tomorrow. Rising interest rate in

the US provides sufficient indication that benchmark policy rate of RBI is not going to go down but

may increase in the future depending on domestic and external factors. However, investors are

expecting the RBI to announce measures to absorb liquidity that has accumulated post

demonetisation. Central bank Governor Urjit Patel in his last policy review on February 8 had kept

the key interest rate on hold at 6.25%. Meanwhile, IT stocks came under pressure on the report that

Trump administration has issued a stern warning to companies not to discriminate against American

workers by misusing the H-1B work visas programme. In a fresh blow to Indian software

professionals, the Trump administration has also moved to bar entry-level programmers from the H-

1B visa programme.

Global Market Overview

Asian markets end mostly in green on Wednesday

Asian equity markets ended mostly in green on Wednesday even as underlying sentiment remained

cautious after North Korea fired a ballistic missile into the Sea of Japan and the US said it is

considering all options to tackle the threat posed by the country's repeated nuclear arms test.

Investors also looked ahead to some key events this week, including the release of minutes of the

latest Federal Reserve meeting later today, the US-China summit starting Thursday, and the closely-

watched monthly US jobs report due on Friday. Chinese shares ended higher as investors cheered

Beijing's decision to launch a new economic zone in Hebei province, sending shares of several

related firms surging by the daily limit of 10 percent. Further, Japanese shares rose as the yen rally

paused and data from Markit showed activity in the country's services sector expanded at the fastest

pace in 19 months in March.

US markets closed lower after Fed's release of latest meeting minutes

The US markets closed lower on Wednesday, suffering a late selloff after minutes of the Federal

Reserve’s March meeting showed policy makers plan to begin unwinding the central bank’s gigantic

balance sheet before the end of the year. Markets appeared to shrug off geopolitical news coming

from North Korea, which launched another intermediate-range missile, and a chemical attack in Syria

that left hundreds dead. The two-day summit between Trump and China’s President Xi was still in

focus for investors, who are looking for clues on ramifications for trade and the dollar.

Meanwhile, the Federal Reserve released minutes from its March meeting, noting that most Federal

Reserve policymakers think the central bank should take steps to begin trimming its $4.5 trillion

balance sheet later this year as long as the economic data holds up. The minutes released of the

March 14-15 policy discussion, at which the Fed voted 9-1 to raise interest rates, also showed that the

rate-setting committee had a broad discussion about whether to phase out or halt reinvestments all

at once. In the minutes, almost all policymakers agreed that the timing of a change in balance sheet

policy would depend on economic and financial conditions and generally preferred to taper or stop

investments in both Treasury and mortgage-backed bonds. Several participants now anticipated that

meaningful fiscal stimulus would likely not begin until 2018. A number of participants noted that

core inflation was a useful indicator of future headline inflation, and the latest reading on 12-month

core inflation suggested that it could still be some time before headline inflation reached 2 percent

on a sustained basis.

Morning Notes

LKP Advisory

(OI in '000 Shares) Future Chg Spot Chg Prem /

5-Apr (%) 5-Apr (%) Disc 5-Apr Chg (%)

NIFTY 9,287 0.25 9,265 0.30 21.4 24,589 -2.18

NIFTYIT 10,535 -0.66 10,510 -0.77 24.7 45 3.53

BANKNIFTY 21,684 0.39 21,653 0.49 30.9 2,789 3.85

Symbol Prev Increase Spot Fut Spot Fut Prem /

5-Apr % Chg. 5-Apr % Del. % Del. Del Qty (‎₹) (‎₹) Chg (%.) Chg (%.) Disc

TITAN 5,862 17% 1,545,724 28% 38% 1,319,517 492 493 7.6% 6.7% 0.9

TVSMOTOR 5,046 14% 776,245 36% 31% 637,750 453 449 3.6% 3.7% -3.4

IBREALEST 37,320 12% 2,593,529 17% 25% 1,693,828 91 91 3.6% 3.6% 0.3

ENGINERSIN 31,227 10% 3,728,863 49% 65% 2,290,036 151 152 4.4% 4.4% 1.0

IDFC 113,282 8% 19,927,280 79% 69% 16,259,574 55 55 0.4% 0.5% 0.5

ICIL 10,154 7% 1,442,124 70% 41% 973,802 200 201 0.2% -0.1% 1.2

YESBANK 7,970 7% 932,421 45% 35% 607,296 1,568 1,574 1.9% 1.8% 6.9

MOTHERSUMI 8,598 7% 1,072,318 51% 46% 741,137 382 384 1.6% 1.8% 2.1

HDIL 22,584 7% 3,061,477 28% 17% 1,988,574 83 84 1.3% 1.1% 0.3

ADANIPORTS 13,003 5% 1,996,941 32% 49% 645,109 358 359 4.4% 4.5% 0.4

Symbol Prev Increase in Spot Fut Spot Fut Prem /

5-Apr % Chg. 5-Apr % Del. % Del. Del Qty (‎₹) (‎₹) Chg (%.) Chg (%.) Disc

CONCOR 1,440 37% 1,337,787 80% 80% 564,527 1,013 1,019 -19.1% -19.2% 5.8

AMARAJABAT 1,904 12% 442,504 66% 37% 92,110 896 901 -1.5% -0.9% 5.3

APOLLOHOSP 1,807 10% 481,604 82% 73% 132,845 1160 1166 -1.5% -1.2% 5.8

COALINDIA 21,723 10% 6,873,313 74% 67% 4,565,005 290 292 -1.7% -1.1% 1.6

BHARATFIN 20,219 9% 2,390,565 38% 26% 1,778,142 797 801 -2.6% -2.6% 4.1

UPL 5,786 9% 1,059,581 71% 43% 223,059 732 736 -0.4% -0.5% 3.8

VEDL 40,691 8% 2,875,591 45% 42% 104,364 273 256 -0.1% -0.1% -16.6

BPCL 12,385 7% 2,564,491 74% 53% 1,985,954 638 640 -0.3% -0.2% 2.6

HDFC 10,101 6% 3,883,516 76% 71% 2,204,508 1490 1499 -3.0% -2.5% 8.3

KSCL 2,828 4% 243,620 35% 39% 76,649 554 558 -0.4% -0.5% 3.1

Total Open Interest

Total OI

Index Futures

Del Qty Cash Market

Total OI Del Qty Cash Market

Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares)

Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares)

Morning Notes


Corporate News

Majestic Research Services and Solution (MRSS) has won a contract from United Nations Industrial Development Organization

(UNIDO) to conduct a survey covering 200 auto ancillary firms across the country. In addition to automotive component

manufacturers, the study will also approach nearly 25 automobile companies across different vehicle manufacturing categories to

understand their views in terms of firm level of innovation.

Narayana Hrudayalaya has decided to discontinue plans to build a multispecialty hospital in Bhubaneswar citing concerns over

financial viability. Furthermore, the company will be surrendering the land allotted to it on lease by the Odisha government for the

purpose of setting up hospital, subject to the refund of the consideration paid for leasing the land.

Renewing its thrust on accelerated project execution, Bharat Heavy Electricals (BHEL) has achieved a capacity addition of 45,274

MW of utility sets during the 12th five-year plan, surpassing the Government’s capacity addition target by 9%. Significantly, BHEL

continues to remain the single largest contributor to the country’s installed capacity of utility sets, with a share of 46% in the 12th

Plan capacity addition. Notably, BHEL’s capacity addition during the 12th five-year plan is 78% higher than that in the 11th plan.

MTNL has approached the government with a proposal to monetise surplus land and reduce debt. The debt laden company has up

to Rs 5,000 crore worth of real estate that can be monetised readily.

Mahindra & Mahindra (M&M) has reported 4.67% fall in its production to 50711 units in March 2017 as compared to 53196 units in

same month last year. On the other hand, the company’s total sales for the month stood at 56,031 vehicles, a growth of 6%,

compared to 52,718 vehicles during March 2016.

Capital First has received an approval for issue of rated, listed, secured, redeemable, non-convertible debentures (NCDs) of Rs 500

crore with a Green Shoe Option of Rs 200 crore on private placement basis. The Debenture Committee constituted by the board of

directors of the company at its meeting held on April 05, 2017, has approved for the same.

Tata Power’s wholly-owned subsidiary - Tata Power Renewable Energy (TPREL) has commissioned its 100 MW wind farm project in

Nimbagallu in state of Andhra Pradesh. The Nimbagallu wind farm is built with Gamesa’s 2 MW state-of-the-art Wind-Turbine

Generation (WTG) platform.

GOCL Corporation’s Houghton International has entered into a definitive agreement to combine with Quaker Chemical (KWR) to

create a global leader in the space of process fluids, chemical specialties, and technical expertise to the global primary metals and

metal working industries. The Hinduja conglomerate will be the largest shareholder in the combined public company.

Mahindra & Mahindra (M&M) has launched the 2017 version of the Scorpio Adventure edition in India with prices starting at Rs

13.09 lakh for the 4×2 variant and Rs 14.2 lakh for the 4×4 variant (ex-showroom Delhi). The Scorpio Adventure is powered by the

standard Scorpio's engine, a 2.2 litre mHawk turbocharged diesel unit that develops 120 hp of power and churns out a peak torque

of 280 Nm and is paired to a 5-speed manual transmission.

Parton Commercial has sold 1.23 lakh shares of Websol Energy System through the open market route. The shares were sold on an

average price of Rs 53.19 valuing the transaction to Rs 65.42 lakh.

Yes Bank has reported $1 billion on its balance sheet at the IFSC Banking Unit (IBU) in Gujarat International Finance Tec City (GIFT)

as on March 31, 2017. The Bank has become the first to achieve milestone of $1 billion mark at the GIFT City.

Bharat Forge is reportedly planning to raise $500 million in an overseas bond sale. The company will use the money to restructure

debt and finance expansion.

InterGlobe Aviation (IndiGo) has added 35 new flights as part of its summer schedule. The new flights will be introduced between

Amritsar-Jammu, Chennai-Bhubaneshwar, Chennai-Indore, Kolkata-Jammu, Srinagar- Kolkata, Bengaluru-Mangalore, Mumbai-

Mangalore, Hyderabad- Thiruvananthapuram and Sharjah-Thiruvananthapuram. The company will also increase frequencies from

seven stations including, Ahmedabad, Goa, Chennai, Agartala, Amritsar, Delhi and Thiruvananthapuram. With these additions, the

airline major will operate over 900 flights per day and connect 46 destinations.

Morning Notes


Cyient has collaborated with Amdocs to implement GE’s Geographical Information System (GIS), Smallworld, as part of the Next-

Generation Business/Operations Support System (NGBOSS) project for NetLink Trust. The NGBOSS project is aiming to improve the

user experience for NetLink Trust’s customers with faster deployment of new fiber networks while reducing fault repair and outage

times, as well as delivering improved service quality.

Sobha has registered 6.21% drop in sales bookings to Rs 2,012.40 crore in the FY17, due to slowdown in property market. The

company had achieved sales booking of Rs 2,145.80 crore in FY16. Further, the company's sales volume dropped to 3 million sq ft

last fiscal from 3.38 million sq ft in the 2015-16. However, sales realisation increased to Rs 6,704 per sq ft from Rs 6,342 per sq ft

during the period under review.

Dilip Buildcon has received the Provisional Completion Certificates as declaration of Commercial Operation Date (COD), prior to the

Scheduled Completion Date for the two Projects respectively and consequently the company is entitled to a cumulative maximum

bonus amount of Rs 42.18 crore in lieu of earlier completion of the said respective Projects.

IL&FS Transportation Networks has commenced commercial operation of Metro Link from Sikenderpur to Sector 56 in Gurgaon,

Haryana with effect from March 31, 2017. The project has a concession period of 98 years and allows the concessionaire to collect

and appropriate fare and non-fare revenue from the project during concession period.

Reserve Bank of India (RBI) has granted license to Aditya Birla Idea Payments Bank, a 51:49 joint venture (JV) between Aditya Birla

Nuvo (ABNL) and Idea Cellular, to carry out business of payments bank in India. Payments banks are allowed to accept deposits and

open current and savings accounts, but are restricted from issuing loans or credit cards. Aditya Birla Idea Payments Bank becomes

the seventh entity to receive a final licence from the RBI to set up a payments bank.

Rajshree Sugars & Chemicals has divested its entire equity shareholding in Trident Sugars, the wholly owned subsidiary, on April 3,

2017.

NIIT Technologies has received a part payment amounting to Rs 41.9 crore under a settlement agreement. This will result in revenue

recognition of Rs 27.1 crore for services contracted, and reversal of provisions amounting to Rs 13.15 crore in the financial statement

of the Company for FY 2017.

Wonderla Holidays is reportedly in the process of commissioning space theme ride based on virtual reality in Hyderabad park. In this

regard the company will invest Rs 40 crore.

Container Corporation of India (CONCOR) has loaded approximately 36 million tons of traffic in 2016-17, registering a growth of

7.8% over 33.39 million tons (MT) in 2015-16. There was a growth of 9.2% in EXIM from 27.28 MT to 29.8 MT and growth of 1.5% in

domestic from 6.11 MT to 6.20 MT. The growth is primarily due to various initiatives taken by the company through reduction in

dwell time at JNPT, Time tabled trains, and strategic ties with ports and private terminal operators.

Reliance Industries (RIL) has received environment clearance for expansion and debottlenecking of its Dahej petrochemical facility in

Gujarat. The estimated cost of the project is Rs 13,250 crore and a budget of Rs 400 crore will be kept aside for environment

protection and conservation.

MEP Infrastructure Developers has entered into a Memorandum of Understanding (MoU) with CIDB Holdings, fully owned

subsidiary of the Construction Industry Development Board (CIDB Malaysia) to strengthen, promote and develop their cooperation

by knowledge sharing and introducing best practices towards joint development of Sustainable Highway and Expressways projects

in India and related investments. The activities mentioned above may be carried out in India or any other country as may be mutually

agreed upon.

Premier Explosives has received response with respect to its application submitted to Andhra Pradesh Industrial Infrastructure

Corporation (APIIC) whereby APIIC is provisionally willing to offer 202 acres of land at Routhsurmala village in Chittoor district of

Andhra Pradesh to the company for establishing a unit to manufacture Solid Propellant. The company has accepted the offer and

will take necessary steps required for firm allotment of land and setting up the said unit.

Morning Notes


Nila Infrastructures has received a work order from Ahmedabad Municipal Corporation (AMC) towards construction of D K Patel Hall

at Ahmedabad. With this, the company forays into yet another activity within Civic Urban Infrastructure.

Seamec has entered into a contract for the charter hire of vessel ‘REVELATION’ with Carlton Industrial Engineers, for undertaking a

job in West Coast of India. The tenure of the contract is for a firm period of 30 days subject to extension thereafter with mutual

consent. The contract will commence around April 10, 2017. The value of charter during firm period is Rs 1.04 crore.

KEC International has secured new orders worth Rs 1,781 crore. Under Transmission & Distribution business, the company has

bagged orders worth Rs 1,702 crore. The company bagged international orders worth Rs 1,270 crore, while domestic orders are

worth Rs 432 crore. Domestic orders include contract from PGCIL for construction of 800 kV HVDC transmission line and

construction and extension of 765/400 kV GIS/ AIS substations. The Cable & Solar business has secured various orders for cable

supply/EHV cabling/rooftop solar projects worth Rs 79 crore.

Dr. Reddy’s Laboratories’ API manufacturing plant at Srikakulam in state of Andhra Pradesh has been audited by the US Food and

Drug Administration (USFDA), and the audit has been completed on April 4, 2017. The company has been issued a Form 483 with 2

observations, which it is addressing.

NTPC has commissioned Unit 2 of 250 MW of Bhartiya Rail Bijlee Company (BRBCL) on April 3, 2017. BRBCL is a subsidiary of the

company. Further, NTPC has also commissioned its first wind turbine of 2 MW at Rojmal Wind Power Project (50 MW). With this, the

commissioned capacity of NTPC and NTPC Group has become 43534 MW and 50750 MW respectively.

Cipla has received final approval for its Abbreviated New Drug Application (ANDA) for Abacavir and Lamivudine Tablets USP, 600

mg/300 mg, from the United States Food and Drug Administration (USFDA).

Economy

Commerce Ministry planning to set up company to operate GeM

After making e-procurement from the Government e-Marketplace (GeM) mandatory for all departments, the Commerce Ministry is

now planning to set up a company for the management of it. The move will make GeM an autonomous body, which will help in

taking all the decisions including those related to finance at a faster pace. The move would also help to take real-time decisions like

hiring of manpower.

The GeM is a platform for the Central Government departments to source goods and services online, which also provides the tools of

e-bidding and reverse e-auction as well as demand aggregation to facilitate the government users to achieve the best value for the

money.

The GeM was launched last year and to make use of this portal, the Finance Ministry has amended the General Financial Rules

(GFRs) as per which it is now compulsory to procure items and services from it. Currently, it sells over 9,000 products from 250

categories including computers, stationery and several services. The Directorate General of Supplies and Disposals (DGS&D) who has

developed this portal is working on increasing the number of services ranging from cleaning and plumbing services to the

digitisation of records. With increasing use of the portal by central government departments, several states have approached the

DGS&D for adopting similar practices.

New H-1B visa memo to have little impact on Indian IT firms: Nasscom

After the US Citizenship and Immigration Services released new guidance that computer programmers are no longer presumed to

be eligible for H-1B visas. The Indian IT trade body, National Association of Software and Services Companies (NASSCOM) has said

that the United States government's new policy memo on H-1B visas is going to have 'little impact' on Indian IT firms as they have

already started applying for visas for higher-level specialized professionals this year. The US Citizenship and Immigration Services

(USCIS) in its latest policy memorandum said that companies applying for visas must provide “evidence to establish that the particular

position is one in a specialty occupation”.

Nasscom said that the clarifying guidance should have little impact on its members as this has been the adjudicatory practice for

years and also as several of their member executives have noted recently, they are applying for visas for higher level professionals

Morning Notes


this year. It added that the demand for additional evidence showing that the said job is complex or specialized and requires

professional degrees mentioned in the memo has been the de facto requirement for years.

Noting that member companies provide skilled talent and solutions to U.S. companies, the industry body said that the H-1B visa

system exists specifically because of the persistent shortage of highly-skilled domestic IT talent in the U.S. and its members will

continue to provide skilled talent and solutions to fill that gap and keep U.S. companies competitive globally.

The US Department of Homeland Security on March 31, 2017 issued a policy memorandum with subject line 'Rescission of the

December 22, 2000 “Guidance memo on H-1B computer related positions”' suggesting that the older provisions will be cancelled. In

its policy memorandum, the USCIS mentioned that 'Based on the current version of the Handbook, the fact that a person may be

employed as a computer programmer and may use information technology skills and knowledge to help an enterprise achieve its

goals in the course of his or her job is not sufficient to establish the position as a specialty occupation'.

WTO agrees to Japan’s request for setting up a dispute settlement panel on steel import

After India and Japan failed to mutually resolve the dispute over imposition of safeguard import duty on iron and steel products; the

World Trade Organization (WTO) has set up a panel to resolve the dispute between the two countries. The two sides failed to

resolve the issue in the bilateral consultation process and Japan sought formation of dispute resolution panel.

Japan, which is the second largest steel producer in the world, had alleged that duties imposed on steel imports by India violates

WTO trade norms and dragged India to the WTO against certain measures taken by it. Japan, in its request, reiterated that India’s

safeguard measures in question were inconsistent with its obligations at the WTO and since the measures will expire on March 13,

2018, it hoped the new panel would observe the time frames specifically prescribed in the WTO’s Dispute Settlement Understanding

for the purpose of a prompt resolution of the dispute. India on its part had objected to Japan’s request to the World Trade WTO to

put in place early time frames for a “prompt’’ resolution of its dispute against India’s penal duties on steel imports.

In September 2015, India imposed provisional safeguard duty of 20 per cent on import of certain categories of steel with a view to

protect domestic producers. Later in November last year, the government slapped the final duty. The duties are being slowly tapered

off but would be in place till March 2018.

Indirect tax collections surges 22%, direct tax jumps 14.2% in FY17

The government’s revenue collection during fiscal year 2016-17 has shown a healthy growth of 18 percent at Rs 17.10 lakh crore as

compared to last year. It was highest in last 6 years and also surpassed the revised tax collection target. Indirect tax collection surged

by 22 percent at Rs 8.63 lakh crore on the back of robust collection in excise duty mop-up. This has exceeded the Revised Estimates

(RE) of Rs 8.5 lakh crore for FY17. Direct tax jumped by 14.2 percent to Rs 8.47 lakh crore led by increase in personal income tax,

which is 100 percent of the RE of Rs 8.47 lakh crore for FY17. Earlier, in the revised estimates for FY17 presented in the budget, the

government had raised the tax collection target to Rs 17.03 lakh crore against Rs 16.3 lakh crore estimated initially.

In indirect tax collections, central excise collections during April-February jumped 33.9 percent to Rs 3.83 lakh crore as compared to

Rs 2.86 lakh crore in the same period of previous financial year. Service tax collations in the same period clocked a growth of 20.2

percent to Rs 3.83 lakh crore as compared to Rs 2.86 lakh crore in FY16. Net Tax collections on account of Customs during FY17

stood at Rs 2.26 lakh crore as compared to Rs 2.10 lakh crore during the same period in the previous year, thereby registering a

growth of 7.4 percent.

On the direct tax front, the gross collection of corporate income tax (CIT) grew at 13.1 percent, while under personal income tax

(PIT) it was 18.4 percent over the corresponding period last fiscal. However, after adjusting for refunds, the net growth in CIT

collections is 6.7 percent, while that in PIT collections is 21.0 percent. Refunds amounting to Rs 1.62 lakh crore have been issued

during April 2016-March 2017, up 32.6 percent from a year ago period.

Tech View

LKP Advisory

CNX Nifty

Technical View

Nifty has formed a indecisive pattern with bulls trying to control to onslaught of the Bears. Today being a event day so all eyes on

Banknifty which had managed to comfortably move above 21608. Nifty closed around Gann level as indicated @9265. Over the trend

is bullsih to sideways and higher levels 9310-9325 can be tested and lower support for the day is placed at 9250-9218-9197 and blw it

9110. Trading range for Nifty Spot 9280 - 9250

Tech View

LKP Advisory

PIVOT POINTS

Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2

ACC 1470 1500 1482 1467 1452 1434 GAIL 382 393 388 383 378 372

ADANIENT 115 120 117 114 111 107 GLENMARK 877 900 884 872 859 843

ADANIPORTS 358 376 363 353 343 331 GMRINFRA 17 17 17 16 16 16

ADANIPOWER 42 44 43 42 41 39 GODREJIND 536 546 541 536 531 526

ALBK 75 77 76 75 74 72 GRASIM 1065 1101 1081 1065 1049 1029

AMBUJACEM 239 243 241 238 236 234 HAVELLS 469 481 474 469 463 456

ANDHRABANK 59 61 60 59 59 58 HCLTECH 851 887 869 855 841 824

APOLLOHOSP 1160 1204 1183 1165 1148 1127 HDFC 1490 1562 1529 1502 1476 1443

APOLLOTYRE 212 217 214 212 210 208 HDFCBANK 1432 1462 1447 1435 1424 1409

ARVIND 408 418 413 408 404 399 HDIL 83 87 85 83 82 80

ASHOKLEY 85 87 86 85 84 83 HEROMOTOCO 3198 3266 3233 3207 3181 3149

ASIANPAINT 1083 1118 1098 1082 1066 1046 HEXAWARE 215 220 217 215 213 210

AUROPHARMA 678 702 689 678 668 655 HINDALCO 198 204 200 197 194 190

AXISBANK 508 522 513 506 499 490 HINDPETRO 523 534 527 521 515 508

BAJAJ-AUTO 2761 2833 2799 2772 2744 2710 HINDUNILVR 935 957 942 930 918 904

BANKBARODA 175 180 177 174 172 168 HINDZINC 291 297 294 292 290 287

BANKINDIA 143 150 145 142 139 134 IBREALEST 91 99 94 90 87 82

BATAINDIA 566 582 573 565 557 547 ICICIBANK 285 290 287 285 283 280

BHARATFORG 1073 1102 1087 1075 1063 1048 IDBI 77 80 79 77 75 73

BHARTIARTL 345 355 349 344 339 332 IDEA 88 92 89 87 85 82

BHEL 171 178 174 170 166 161 IDFC 55 56 55 55 54 54

BIOCON 1124 1153 1138 1125 1113 1098 IFCI 30 31 31 30 30 30

BPCL 638 654 645 637 630 621 IGL 1012 1029 1020 1013 1005 996

CAIRN 303 310 306 304 301 297 INDIACEM 163 169 166 163 160 156

CANBK 311 322 315 309 303 296 INDUSINDBK 1401 1421 1410 1401 1391 1380

CENTURYTEX 1064 1082 1071 1062 1052 1041 INFY 996 1017 1006 997 989 978

CESC 849 877 863 853 842 829 IOB 28 29 28 27 27 26

CIPLA 593 614 604 596 587 577 IOC 381 389 385 382 379 375

COALINDIA 290 302 297 292 288 283 IRB 241 246 243 241 240 237

COLPAL 1003 1050 1028 1010 992 970 ITC 279 288 284 280 276 272

#REF! #REF! #REF! #REF! #REF! #REF! #REF! JINDALSTEL 125 127 125 124 123 122

DABUR 284 289 286 283 280 277 JISLJALEQS 103 106 104 102 101 99

DISHTV 103 108 105 103 101 99 JPASSOCIAT 14 15 15 14 13 13

DIVISLAB 632 648 639 633 626 618 JPPOWER 5 5 5 5 5 5

DLF 150 154 151 149 147 144 JSWENERGY 67 70 68 66 64 62

DRREDDY 2741 2862 2788 2728 2668 2594 JSWSTEEL 196 202 198 195 192 188

EXIDEIND 229 236 232 229 226 222 JUBLFOOD 1095 1132 1112 1097 1081 1062

FEDERALBNK 91 93 92 91 90 89 JUSTDIAL 555 575 564 554 545 533

Tech View

LKP Advisory

Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2

KOTAKBANK 890 914 900 888 876 862 TATACHEM 612 633 619 607 595 581

KTKBANK 146 153 148 145 141 136 TATACOMM 728 751 740 730 720 708

L&TFH 124 127 125 124 123 121 TATAGLOBAL 153 158 155 153 150 148

LICHSGFIN 626 637 630 625 620 613 TATAMOTORS 474 483 477 472 467 461

LT 1696 1753 1714 1681 1649 1609 TATAMTRDVR 285 292 288 284 281 276

LUPIN 1455 1474 1461 1451 1440 1427 TATAPOWER 88 91 90 89 87 86

M&M 1291 1318 1300 1285 1270 1252 TATASTEEL 493 509 500 493 486 477

M&MFIN 321 327 323 320 317 314 TCS 2401 2440 2421 2405 2390 2371

MARUTI 6342 6655 6435 6257 6080 5860 TECHM 447 465 457 450 443 434

MCDOWELL-N 2031 2094 2060 2033 2006 1972 TITAN 492 520 501 486 471 452

MCLEODRUSS 168 173 170 168 165 162 UBL 762 777 770 764 758 751

MRF 60685 62020 61332 60776 60220 59533 UCOBANK 37 37 37 37 36 36

NHPC 33 34 33 33 32 31 ULTRACEMCO 4081 4152 4105 4066 4028 3981

NMDC 136 139 137 136 134 133 UNIONBANK 158 165 161 157 154 150

NTPC 167 171 168 166 164 162 UNITECH 6 7 6 6 5 4

OFSS 3843 3939 3879 3831 3783 3723 UPL 732 753 741 732 723 712

ONGC 186 189 187 186 185 183 VOLTAS 415 424 420 416 413 409

ORIENTBANK 145 152 148 145 141 137 WIPRO 511 522 514 508 502 495

PETRONET 409 425 417 410 403 395 YESBANK 1568 1605 1579 1558 1537 1511

PFC 154 163 157 152 148 142 ZEEL 544 564 550 539 527 513

PNB 151 156 153 151 148 145

POWERGRID 195 201 198 196 193 191

PTC 94 96 95 94 93 92

RCOM 41 43 42 40 39 37

RECLTD 184 191 187 183 180 175

RELCAPITAL 623 633 628 624 619 614

RELIANCE 1415 1457 1428 1404 1381 1352

RELINFRA 576 588 582 578 573 568

RPOWER 50 52 51 50 50 49

SAIL 65 69 67 65 63 61

SBIN 297 308 301 295 290 283

SIEMENS 1305 1330 1315 1302 1290 1275

SRTRANSFIN 1108 1148 1124 1105 1086 1063

SUNPHARMA 691 705 698 691 685 677

SUNTV 796 811 803 797 790 782

SYNDIBANK 72 75 74 72 70 69

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