TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )

NIFTY FIFTY : - The Equity benchmark Nifty closed at 8000 levels last week, the Index tested levels of

7950 which is just 30 points shy of the previous month low of 7921. The benchmark Index remained

weak in the last five trading sessions with FII's turning out as net sellers in the market. Nifty dropped

almost 200 points from 8148 to 7953 in the course of the week's trading session. Indian benchmark Index

opened gap down On Monday trading Session at 7965 down by 20 points or 0.25 percent as Prime

Minister Modi gave ample hints of raising taxes in the capital markets, this will dent the sentiments as the

market tries to recover from the demonetization set back. The markets in the December series saw heavy

selling by FII's in the cash and F&O segment. There was a possibility that Nifty could close at the lowest

level in this clearing if it is unable to close above 7954. The Index is trading above an important gap level

of 8160 and it could test the next target 8200-8280 if 8180 level is breached. Nifty January Series has

started on a positive note. The benchmark index ended the December series with an upward bias as it

closed above the 8100 mark. After making a low of 7894 early this week, Nifty bounced back

convincingly and tested 8100 levels. The data for the Jan series shows that short positions have been

squared off, so the market is likely to trade with a bullish bias. If Nifty stays above 8130 today, then the

next target is 8278. On Technical chart, Nifty is in positive zone. We are into last trading Session of the

calendar year 2016 and overall market would remain in a Positive territory. Market can see some profit

booking but overall market is positive as of now and traders can go long at dips with strict stop loss of

7980 levels for Nifty on closing basis as market would enter into negative zone once Nifty closes below

the levels of 7980-7960. The Crucial Levels for Nifty is 8220-8280 is Upside and 8130-7980 is Down

side.

BANK NIFTY : - The Banking Shares Index Bank Nifty opened in a Negative Note on Monday trading

Session Down by 59 points or 0.32 per cent at 17825. The banking sector continues to face "significant"

level of stress as the asset quality has deteriorated further with the banks' Gross Non-Performing advances

increasing to 9.1 per cent in September from 7.8 per cent in march, says the Reserve Bank of India. Bank

Nifty Need to close below 18255 levels to enter into negative zone. Traders can initiate short positions

only if Bank Nifty closes below 18255 levels. Bank Nifty has broken its major support level of 18250 and

has traded below it for consecutively for 2 sessions. The Bank Nifty was also trading down below the gap

level of previous month low of 17911 and closed on Thursday at 17700 with a possible price target of

17346. Bank Nifty has major support at 17986 and Resistance at 18329 above which next target is 18647.

Sustaining above 18200 zone, Bank Nifty may further rebound towards 18350-18475 & 18550-18600

area and if it Sustaining below 17960 may drag the Bank Nifty toward 17656-17458 Level for next

trading week sessions.

Monday, 02 January 2017

TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )

NIFTY

DAILY R2 R1 PP S1 S2

8390 8242 8168 8094 7946

WEEKLY R2 R1 PP S1 S2

9001 8397 8095 7793 7189

MONTHLY R2 R1 PP S1 S2

9260 8500 8120 7740 6980

BANK NIFTY

DAILY R2 R1 PP S1 S2

18746 18364 18173 17982 17600

WEEKLY R2 R1 PP S1 S2

19931 18661 18026 17391 1612

MONTHLY R2 R1 PP S1 S2

21577 19321 18193 17065 14809

MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS

NIFTY 8099 8228 8311 8262

BANK NIFTY 18201 18576 18663 18300

PARABOLIC SAR DAILY WEEKLY MONTHLY

NIFTY 8113 8322 7826

BANK NIFTY 18340 19755 16124

PATTERN FORMATION ( NIFTY )

Detail of Chart -We can see that Nifty index has been constantly forming 'Lower Highs and Lower

Lows'. We also see that the index is en-route building a Kind of 'Head and Shoulder' pattern. The head

and shoulder pattern was initiated from 7807 levels after which it created a high of 8954. If technical

analysis is followed, Nifty should complete its Head and Shoulder pattern. For this the index should

break the 7900 mark before taking support at 7807, before making any further Upmove. Looking at

the option chain in sync with the chart, 7807 could become a potential mark for the December expiry.

The Bollinger Band is Also giving Signal that if it Sustain the Level of 8150 could lead the Nifty

toward the 8273 level. The crucial levels for Nifty is 8090-7946 is down side and 8152-8242 is Up

side.

PATTERN FORMATION ( BANK NIFTY )

Detail of Chart -On the Above given daily Chart of BANK NIFTY has Applied the Bollinger

Band along with Parabolic SAR. Both are the leading Indicators and give Signal on Breakout of

Upper or Lower Band. On the Above given chart of Bank Nifty it is trading Above Middle Band if it

is able Sustain the level of 18250 could witness the upward Rally. From this level we are Expecting

the If the Bank Nifty is able to Sustain the Level of 18250 may go Further Up side to the level of

18550-18660 Level for Next week. The Significance levels for BANK NIFTY is 17980-17600 Down

side and 18360-18740 is Up Side

NSE EQUITY DAILY LEVELS

COMPANY NAME R2 R1 PP S1 S2 ACC EQ 1336 1329 1320 1313 1304

ADANI PORTS EQ 275 271 268 264 261

AMBUJACEM EQ 210 208 205 203 200

ASIAN PAINT EQ 902 896 889 883 876

AXISBANK EQ 456 453 449 446 442

BAJAJ-AUTO EQ 2679 2656 2644 2621 2609

BANKBARODA EQ 154 154 152 152 150

BPCL EQ 643 640 634 632 627

BHEL EQ 122 122 120 120 118

BHARTIARTL EQ 311 308 304 301 297

BOSCH LTD EQ 21345 21185 20917 20757 20489

BHARTI INFRATEL EQ 349 346 341 338 333

CIPLA EQ 577 572 569 564 561

COALINDIA EQ 304 302 299 297 294

CAIRN INDIA LTD EQ 246 244 242 240 238

DRREDDY EQ 3091 3079 3063 3051 3035

GAIL EQ 454 445 434 425 414

GRASIM EQ 886 874 856 844 826

HCLTECH EQ 840 834 824 818 808

HDFC EQ 1281 1272 1261 1252 1241

HDFCBANK EQ 1217 1209 1204 1196 1191

HEROMOTOCO EQ 3077 3054 3041 3018 3005

HINDALCO EQ 157 156 154 153 151

HINDUNILVR EQ 835 830 824 819 813

ICICIBANK EQ 260 258 254 252 248

ITC EQ 245 243 239 237 233

INDUSIND BANK EQ 1124 1116 1106 1098 1088

INFY EQ 1025 1018 1005 998 985

IDEA CELLULAR EQ 75 75 73 73 71

KOTAKBANK EQ 726 721 718 713 710

LT EQ 1360 1354 1349 1343 1338

M&M EQ 1196 1187 1180 1171 1164

MRF EQ 49642 49183 48842 48383 48042

MARUTI SUZUKI EQ 5406 5360 5332 5286 5258

ONGC EQ 194 193 191 190 188

NTPC EQ 166 165 164 163 162

RCOM EQ 35 34 34 33 33

RELCAPITAL EQ 439 435 430 426 421

RELIANCE EQ 1098 1089 1076 1067 1054

RELINFRA EQ 477 471 466 460 455

RPOWER EQ 43 42 41 40 39

SBIN EQ 255 252 250 247 245

SSLT( VEDL) EQ 221 219 216 214 211

SUNPHARMA EQ 641 635 625 619 609

TATA MOTORSDVR EQ 303 300 298 295 293

TCS EQ 2396 2381 2363 2348 2330

TATAMOTORS EQ 478 474 470 466 462

TATAPOWER EQ 79 78 76 75 74

TATASTEEL EQ 398 395 391 388 384

UNIONBANK EQ 127 124 123 120 119

YES BANK LIMITED EQ 1170 1162 1154 1146 1138

ZEEL EQ 460 457 451 448 442

TOP 15 ACHIEVERS TOP 15 LOOSERS

SR.NO SCRIPT NAME PREV CLOSE CMP % CHANGE

1 ENGINEERS INDIA 323 151 - 53.32 %

2 DIVI'S LAB 861 783 - 9.03 % -

93 CANARA BANK 279 262 - 6.01 %

4 WELSPUN CORP 79.45 75.25 - 5.29 % -

55 GLENMARK PHAR 925 888 - 4.02 %

6 PUNJ.NATINL

BANK

120 115 -3.79 % -

3

.7ALEMBIC

PHARMA

614 595 - 3.16 %

8 UNION BANK OFIND

126 123 - 2.73 % -

29 APOLLO TYRES 189 184 - 2.35 %

10 CIPLA LIMITED 582 568 -2.32 % -

211 VRLLOGISTICS

LTD.

264 258 - 2.31 %

12 ANDHRA BANK 48.50 47.45 - 2.16 % -

213 ROLTA INDIA 61.95 60.65 - 2.10 %

14 DLF LIMITED 113 111 - 2.07 % -

2

15KPIT

TECHNOLOGI

137 134 -1.79 %

SR.NO SCRIPT NAME PREVCLOSE

CMP % CHANGE

1ITC LIMITED 323 151

- 53.32 %

2IDEA CELLULAR 861 783 - 9.03 %

3HUL 279 262

- 6.01 %

4TECH MAHINDRA 79.45 75.25 - 5.29 %

5ULTRATECH CEM 925 888

- 4.02 %

6INDUSIND BANK 120 115 -3.79 %

7HCL TECH 614 595

- 3.16 %

8COAL INDIA LTD. 126 123 - 2.73 %

9GRASIM INDUS 189 184

- 2.35 %

10BHARAT PETRO 582 568 -2.32 %

11WIPRO LIMITED 264 258

- 2.31 %

12BHARTI AIRTEL 48.50 47.45 - 2.16 %

13TCS 61.95 60.65

- 2.10 %

14AURO PHARMA 113 111 - 2.07 %

15

HDFC 137 134

-1.79 %

NEXT WEEK STARS( AS PER TECHNICAL ANALYSIS )

NSE FUTURE

NSE FUTURE :BUY BHARATFIN FUTURE ABOVE 620 TGT 650 SL 610

NSE FUTURE :BUY INFY FUTURE ABOVE 1020 TGT 1050 SL 1010

NSE FUTURE :BUY ABIRLANUVO FUTURE ABOVE 1310 TGT 1350 SL 1290

NSE CASH

NSE CASH : BUY NMDC NSE CASH ABOVE 125 TGT 135 SL 121..

NSE CASH : BUY DWARKESH NSE CASH ABOVE 330 TGT 356 SL 320.

NSE CASH : BUY NTPC NSE CASH ABOVE 166 TGT 180 SL 157.

NSE - WEEKLY NEWS LETTERS

✍ TOP NEWS OF THE WEEK

Household owned majority of deposits in banks till March 2016: RBI - Majority of deposits in

banks was held by the household sector at 61.5 per cent as on March 31, 2016, the Reserve Bank said

today. This was followed by the Government sector which accounted for 12.8 per cent of total

deposits. The private corporate sector came next with a contribution of 10.8 per cent. Total deposits as

on March 31, 2016 was Rs. 98,41,290 crore, as against Rs. 89,72,710 crore till March 2015. "A

majority (63.8 per cent) of the deposits was term deposits. The combined share of current and savings

deposits, however, increased from 34.9 per cent in 2015 to 36.2 per cent in 2016," the RBI said. More

than half (51.5 per cent) of the total deposits was raised by metropolitan branches followed by urban

branches (22.8 per cent) and semi-urban branches (15.4 per cent). While term deposits dominated the

total deposits in these branches, savings deposits dominated in rural branches. Public sector banks

continued to maintain the largest share (70.6 per cent) in total deposits. Private sector banks had a

share of 21.6 per cent in total deposits

India's forex reserves fall $ 2.4 billion to reach one of the lowest levels since May - India’s foreign

exchange reserves dipped $ 2.4 billion to settle at $ 360.6 billion, one of the lowest levels since May

of this year, as market sources said that the Reserve Bank of India could be selling dollars heavily in

order to arrest the slide in the value of Rupee. A combination of factors may have triggered the fall,”

said Ashutosh Khajuria, executive director, Federal Bank. “The last leg of FCNR(B) redemptions has

put pressure on the Rupee to an extent while RBI’s routine intervention may also have led to an

erosion of the reserves. While one of the steepest falls in the last few months in RBI’s dollar reserves

was seen in early October due to FCNR(B) outflows starting off, a strengthening dollar and consistent

outflow of foreign portfolio investors from the country has also created some pressure on the Rupee

lately. “The RBI had definitely intervened when Rupee had hit 68.8 few days back and even now the

value of the currency has been held steady at around 68 due to heavy selling of dollars,” said market

sources.

Demonetisation: India's GVA growth to be at 6.6 per cent in 2016-17, says rating agency ICRA's

- India's gross value added growth is likely to be at 6.6 per cent in 2016-17 as economic activity will

take more time to normalise following the government's move to demonetise high-value notes, Icra

has said. "Although currency liquidity is likely to improve significantly by the end of January 2017,

economic activity may take longer to normalise, based on which we have revised our forecast for

GVA growth in 2016-17 to 6.6 per cent," the domestic rating agency said in a report. It said the pace

of revival of economic activity in the fourth quarter of the current financial year is likely to take a cue

from how quickly currency in circulation gets replenished and digital transactions become more

widespread. Between November 10 and December 19, banknotes of Rs. 5.9 trillion were issued to the

public through the banking system, as indicated by the Reserve Bank, equivalent to an estimated 38

per cent of the value of currency that ceased to be legal tender.

Government reviews capital needs of banks - The government is reassessing the capital needs of

state-run banks after some lenders and the Reserve Bank of India raised concerns over stressed assets

turning non-performing if demonetisation impacts demand for long. “There were accounts that were

already under stress. Banks say they may be further impacted due to the demonetisation drive,”a

senior government official said, requesting anonymity. “If they move in the non-performing category

—from substandard to doubtful—provisioning will increase, which will further impact banks’

capital.” The official said banks are also worried as demonetisation has led to a surge in their deposits

but they cannot deploy this money because of low credit growth. This means they will have bear

more of the interest burden, which will ultimately impact their profitability. The Narendra Modi-led

government had on November 8 demonetised old Rs 500 and Rs 1,000 notes. The two notes

accounted for about 85% of the cash in circulation. But a finance ministry official said the exercise to

assess capital needs was routine and one cannot draw a direct link with demonetisation.

Union Budget 2017 likely to be taxpayer-friendly - The post-demonetisation Budget is likely to be

citizen- and taxpayer-friendly and will aim to push growth. This was the central message that

emanated from an interaction between Prime Minister Narendra Modi and a group of economists

organised by the NITI Aayog on Tuesday. The consultations saw the PM remark that while people in

general were not tax evaders, they did want taxes better utilised and accounted for. "Tax

simplification figured quite a lot... on direct taxation, corporate and personal income tax, reducing

exemptions, bringing down the tax rate and aligning tax system to make India competitive with

international destinations," NITI Aayog vice-chairman Arvind Panagariya said. A source said the

Modi government's third Budget may offer incentives and packages to boost consumption and

accelerate economic growth, a concern after reports that demonetisation had suppressed demand and

reduced discretionary spending.

RBI extends grace period for NPA classification by 30 days - The Reserve Bank of India on

Wednesday further extended the grace period for banks, non-banking finance companies and

microfinance companies to classify bad loans by 30 days in the case of agriculture and term loans of

up to Rs. 1crore. The central bank had on November 21 had asked lenders to provide additional 60

days to small ticket borrowers to pay instalments due between November 1 and December 31 in view

of the cash crunch following the demonetisation drive. “Permit all regulated entities to defer the down

grade of an account that was standard as on November 1, 2016, but would have become NPA for any

reason during the period November 1, 2016 to December 31, 2016, by 90 days from the date of such

downgrade,” the RBI circular said on Wednesday.

Government's direct tax kitty swells to Rs 5.57 lakh crore between April and December -

Government's direct tax kitty has swelled to Rs. 5.57 lakh crore between April 1 and December 19,

thereby achieving 65 per cent of budget estimates. The mop up from indirect tax, which comprises

customs, excise and service tax, in April-November period jumped 26.2 per cent to Rs. 7.53 lakh

crore. Belying fears of slowdown in industrial activity post demonetisation, the indirect tax collection

in November alone grew 23.1 per cent to Rs. 67,358 crore. Finance Minister Arun Jaitley said,

irrespective of what critics had predicted, figures revealed that till November 30, there is a significant

increase in indirect taxes. "We have also tried to check the figures for the month of November which

could have been adversely impacted on account of the currency replacement compared to the

November of 2015. On year-to-year basis, in November 2016, for all the three indirect taxes, the

collection is much high," he said.

After government's nudge, banks set to slash interest rates in next few days - Nudged by the

government, banks are poised to slash interest rates in the next few days as they move in lockstep

with the administration to lift the spirits of borrowers following the dislocation caused by

demonetisation and the 50 days sought by Prime Minister Narendra Modi come to an end. Bankers

said the reduction in lending rates could be accompanied by a steeper cut in deposit rates. Large

commercial banks currently pay about 7 per cent for one-year deposits and charge 8.9 per cent for

loans of the same tenor. A senior bank official said the government has sought to persuade banks to

lower rates on the grounds that the cost of deposits had dropped due to demonetisation and the

benefits should be passed on to customers to boost consumption. "Investment sentiments are low and

the government is under tremendous pressure from the Opposition to showcase that the

demonetisation exercise has paid off. Secondly, the common man is hoping that after going through

agony for 50 days, he should get the benefits of demonetisation," said a senior bank official.

"Therefore, the government is in dialogue with banks on measures that can be taken to boost

investments."

✍ TOP ECONOMY NEWS

Finance Minister Arun Jaitley rejected possibilities of any hike in long-term capital gains tax on

market participation.

The Goods and Services Tax Council, comprising the Union finance minister and state

representatives, mainly their finance ministers, cleared most of the draft model GST Bill.

Power consumers are likely to gain to the extent of Rs. 693.10 billion from the reduction in

electricity tariff enabled by the auction of nine coal blocks to power sector firms so far.

The government received Rs. 348 billion from the sale of minority stakes in an array of state-owned

firms this year even as it prepared the ground for the first strategic sale of public sector undertakings

in over 12 years.

Betting big on capital markets for raising funds, Indian companies have garnered an estimated Rs.

6.3 trillion from the marketplace in 2016, with debt instruments being the most favoured route to

raise money for their business needs amid volatile trends in equities.

Foreign investors have pulled out a massive USD 3.5 billion from the capital market this month so

far following rate hike by the US Federal Reserve.

Over Rs. 360 billion were saved in last two years for providing diverse payment and various wages

straightway to the beneficiaries under the Direct Benefit Transfer scheme.

For the first time in the past five years, venture capital investments have seen a drop -- of around

29% -- in 2016.

Government's direct tax kitty has swelled to Rs. 5.57 trillion between April 1 and December 19,

thereby achieving 65% of budget estimates.

The government is expected to raise Rs. 1 trillion of additional taxes under the Income Disclosure

Scheme II , which in turn will help in containing the 2017-18 fiscal deficit.

FIPB approved six investment proposals, including that of Sanofi Synthelabo India, Star Den Media

Services and Idea Cellular Infrastructure Services, envisaging foreign investment of Rs. 12 billion.

✍ TOP CORPORATE NEWS -

Tata Steel Limited has signed an agreement to acquire Brahmani River Pellets Ltd for Rs. 9 billion

in cash.

Reliance infrastructure Limited has exited India Energy Exchange, selling its stake in the country's

largest power trading platform, for Rs. 1.03 billion.

Camlin Fine Sciences Limited said it is acquiring 51% stake in Ningbo Wanglong Flavors and

Fragrances Company Limited.

ONGC Limited will pay over USD 1.2 billion for buying GSPC's entire 80% stake in KG-basin

natural gas block, which is struggling to start commercial production despite trial outputs starting

nearly two-and-half years back.

Welspun Enterprises Limited is looking to divest its entire 15.49% stake in Welspun Energy.

Cipla Limited respiratory portfolio received a boost with the UK drug regulator approving its key

asthma inhaler. The inhaler will be launched within the next few weeks.

Balrampur Chini Mills has got environment clearance for expansion of its Babhnan unit of distillery

and Co—generation power in Uttar Pradesh, entailing Rs. 720 million investment.

Sun Pharma subsidiary has invested USD 13 million about Rs. 880 million in the US-based

scPharmaceuticals Inc.

Alkem Labs’ Daman manufacturing plant has obtained the Establishment Inspection Report from US

health regulator USFDA.

ICICI Bank Limited has launched a mobile application for merchants that allows consolidation of

all modes of payments, including digital wallets, Unified Payments Interface, QR code, and credit

& debit cards. The app, eazypay, which is designed for business, allows multiple users to connect to

the same account. This makes it possible to be used for cash-on-delivery payments.

Wipro Limited has agreed to pay a civil money penalty worth USD 5 million to the US Securities

and Exchange Commission to resolve a six-year-old investigation on account of embezzlement of

funds by an employee.

The US Food and Drug Administration has issued form 483 with five observations against Divi's

Laboratories' Limited unit at Chippada Village in Visakhapatnam of Andhra Pradesh following an

inspection, which concluded on December 6.

Lupin Limited has received tentative approval from the US health regulator to sell Olmesartan

medoximil tablets, used for treating high blood pressure, in the American market.

NTPC Limited has commissioned the Unit-1 of 800 MW of Kudgi Super Thermal Power Project on

December 25.

L&T Construction, the construction arm of L&T Limited, has won orders worth Rs. 30.39 billion

across its various business segments.

The board of directors of Gayatri Projects Limited, at a meeting held Dec 26, 2016, has approved

sub-division of nominal value of the company's equity shares of Rs. 10 each to Rs. 2/share.

Panacea Biotec Limited has launched fully-liquid tetravalent vaccine easyfour-TT used for primary

immunisation and as booster dose for diphtheria, tetanus, pertussis and Hib.

Jet Airways Limited announced the deployment of higher seating capacity aircraft on two domestic

and an equal number of international routes from early next year amid growing passenger demand.

India Inc raised USD 488.49 million via External Commercial Borrowings and Rupee Denominated

Bonds in November 2016.

Glenmark Pharmaceuticals has received final approval from the US health regulator USFDA for

the sale of Tretinoin capsules, used in the treatment of leukemia.

JSW Energy said its board has given nod to raise funds up to Rs. 7.50 billion through issuance of

redeemable non-convertible debentures by way of private placement.

ITC Ltd has raised the prices of two of its bestselling brands -- Gold Flake and Navy Cut.

Biocon Limited and Mylan said that the results of the HERITAGE study have been published in the

Journal of the American Medical Association.

L&T Metro Rail Hyderabad Limited has thus far incurred a cumulative expenditure of Rs141.72bn

on the elevated rail project.

Zydus Discovery DMCC, a research subsidiary of Cadila Healthcare, has been pulled up by the US

FDA for misbranding Saroglitazar, its drug used in India to treat diabetic dyslipidemia and

hypertriglyceridemia, in a promotional YouTube video.

ICICI Bank Limited , which had attempted to auction the asset with a built-up area of 41,000/sq ft

twice before, expects to raise Rs. 2.40 billion from selling it off.

Hinduja Group flagship Ashok Leyland has launched Oyster staff bus in Saudi Arabia, the third

product from India's second largest commercial vehicle manufacturer in the kingdom in six months.

State Bank of India rejected reports that Rs. 13 billion cash have been deposited in its various

branches in Arunachal Pradesh after demonetisation saying no such deposits were found after

minutely verifying the relevant records.

Zydus Cadila announced that its wholly-owned subsidiary, Zydus Healthcare Limited, has

acquired six brands from American pharma player MSD and its subsidiaries in India.

Zydus Pharmaceuticals USA Inc is recalling over 16 thousand bottles of Bupropion Hydrochloride

tablets manufactured by Cadila Healthcare Limited on account of failure to meet the desired

dissolution specifications.

JK Tyre & Industries said its board has given approval to raise up to Rs. 10 billion by issuing

securities.

JMC Projects (India) Limited said it has bagged new construction projects worth over Rs. 14.57

billion.

India Inc raised a whopping Rs. 386.45 billion in November through private placement of corporate

debt bonds, a surge of 57% from the year-ago level, for business expansion and propping up working

capital requirements.

Rajesh Exports has won a Rs. 9.29 billion export order from the United Arab Emirates.

Tata Steel Limited Special Economic Zone Ltd has sought more time from the Government for

setting up a multi—product SEZ in Odisha.

Lupin Limited has received tentative approval from the US health regulator to market its

Balasalazide Disodium tablets, used for the treatment of ulcerative colitis, in the American market.

Bharat Heavy Electricals Limited has successfully commissioned another 600mw coal-based

thermal power plant in Telangana.

Reliance Industries Limited has announced the successful commissioning of the first phase of the

paraxylene plant at its Jamnagar petrochemicals complex in Gujarat with capacity of 2.2mn tpa.

✍ TOP BANKING AND FINANCIAL NEWS OF THE WEEK

Plastic transactions have jumped around 25 per cent per month since November 8 in the wake of

demonetisation and the government's aggressive push — led by Prime Minister Narendra Modi — for

a predominantly cashless society. While card payments grew the most in organised retail, even small

roadside merchants appeared to be shifting to digital payments.

State Bank of India, the country's largest lender, and a few other banks are expected to announce a

cut in lending rates effective early January, said people with knowledge of the matter. That could give

consumption a much-needed boost, having slumped in the wake of demonetisation as people are

unwilling to spend on non-essential items amid a currency shortage.

Non-banking finance company Au Financiers today said it has received final approval of the Reserve

Bank to start operations as small finance bank. "The company has now received final licence from

Reserve Bank to establish and operate Small Finance Bank in India," the Jaipur-based NBFC said in a

statement.

Bankers are back to dealing with the problem that worried them the most prior to November 8 —

recovery of loans — which had taken a back seat since the demonetisation announcement. At a recent

meeting led by State Bank of India, top bankers decided to send out a strong signal to defaulting

companies that they would face stern action if they don't cooperate with recovery.

state Bank of India has rejected reports that Rs. 1,300 crore cash have been deposited in its various

branches in Arunachal Pradesh after demonetisation saying no such deposits were found after

minutely verifying the relevant records.

Based on initial estimates that as much as Rs. 4 lakh crore of undisclosed funds may have flown into

bank accounts post-demonetisation, the tax department is gearing up to serve notices on those who

cannot explain the source of the money. Data with the income tax department shows that till

December 17, cash deposits of Rs. 80 lakh or more added up to nearly Rs 4 lakh crore, which flowed

into 1.14 lakh bank accounts.

An internal government review based on feedback from banks suggests that the supply of currency

from the Reserve Bank of India may not be adequate following demonetisation, officials said. The

government is working with RBI and banks to try and remedy the situation as the end of the 50 days

sought by Prime Minister Narendra Modi for the restoration of normalcy approaches.

The banking sector continues to face "significant" level of stress as the asset quality has deteriorated

further with the banks' gross non-performing advances increasing to 9.1 per cent in September from

7.8 per cent in March, says the RBI. "The gross non-performing advances ratio of Scheduled

Commercial Banks increased to 9.1 per cent from 7.8 per cent between March and September 2016,

pushing the overall stressed advances ratio to 12.3 per cent from 11.5 per cent," the Financial

Stability Report released by the RBI said today.

India's banking sector continues to face "significant" levels of stress but the financial system remains

stable overall after moves to enhance transparency, Reserve Bank of India Governor Urjit Patel said

in the twice-yearly Financial Stability Report. The report noted the gross non-performing advances

ratio of commercial banks - a measure of stress in the sector - had increased to 9.1 percent in

September from 7.8 percent in March, pushing the overall stressed assets ratio to 12.3 percent from

11.5 percent.

Armed with information about Rs. 7 lakh crore deposits made by some 60 lakh individuals and

companies, the government today warned of hauling up anyone unable to show legal means saying

mere depositing in bank does not convert black money into white. Top officials said while the

government will not hound any genuine depositor, it will not hesitate to litigate at any forum to catch

any black money holder trying to convert illegal wealth into white.

LEGAL DISCLAIMER

This Document has been prepared by Ways2Capital (A Division of High Brow Market Research

Investment Advisor Pvt Ltd). The information, analysis and estimates contained herein are based on

Ways2Capital Equity/Commodities Research assessment and have been obtained from sources believed to

be reliable. This document is meant for the use of the intended recipient only.

This document, at best, represents Ways2Capital Equity/Commodities Research opinion and is meant for

general information only. Ways2Capital Equity/Commodities Research, its directors, officers or

employees shall not in any way to be responsible for the contents stated herein. Ways2Capital

Equity/Commodities Research expressly disclaims any and all liabilities that may arise from information,

errors or omissions in this connection. This document is not to be considered as an offer to sell or a

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