nifty pharma 9,756 9,755 0.01% shanghai 3,393 3,390 · pdf file2017. besides, finance...

Morning Notes

1Nov, 2017

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Indices 31-Oct 30-Oct % Chg. Major Indices 31-Oct 30-Oct % Chg. ‎₹ Crs

S&P BSE SENSEX 33,213 33,266 -0.16% Dow Jones Industrial Average23,377 23,349 0.12% 31-Oct Buy Sell Net

S&P CNX NIFTY 10,335 10,364 -0.27% Nasdaq Composite Index 6,728 6,699 0.43% FII / FPI Investments 5,992 6,524 -532

NIFTY MID100 FREE 19,578 19,555 0.12% CAC 40 Index 5,503 5,494 0.18% DII's Investments 3,906 3,309 597

NIFTY SML100 FREE 8,550 8,508 0.49% FTSE 100 Index 7,493 7,488 0.07% FII's contribution to the total turnover 31%

DAX Index 13,230 13,218 0.09% DII's contribution to the total turnover 18%

NIFTY REALTY 305 296 2.89% Major Asian Indices 31-Oct 30-Oct % Chg. ‎₹ Crs

NIFTY FMCG 25,688 25,638 0.20% Hong Kong 28,246 28,336 -0.32% 31-Oct Index Fut Index Opt Stock Fut Stock Opt

NIFTY FIN SERVICE 10,236 10,222 0.13% Nikkei 225 22,012 22,012 0.00% Net -630 883 -315 -65

NIFTY BANK 25,019 24,989 0.12% Korea 2,523 2,502 0.86% OI 21,966 72,218 64,372 5,551

NIFTY PHARMA 9,756 9,755 0.01% Shanghai 3,393 3,390 0.09% Chg.OI 1.6% 3.8% 2.0% 16.2%

NIFTY INFRA 3,582 3,582 0.01% Taiwan 10,794 10,757 0.34% FIIs' contribution to the total F&O turnover 25%

NIFTY CONSUMPTION 4,697 4,699 -0.06%

NIFTY ENERGY 14,511 14,532 -0.14% Commodities (MCX) 31-Oct 30-Oct % Chg. 31-Oct 30-Oct % Chg.

NIFTY IT 10,838 10,854 -0.15% Aluminium (3NOV2017) 138.6 138.8 -0.11% USDINR 28-NOV-2017 64.99 65.07 -0.13%

NIFTY MEDIA 3,151 3,160 -0.26% Copper ( 30NOV2017) 444.7 446.1 -0.31% EURINR 28-NOV-2017 75.71 75.84 -0.16%

NIFTY AUTO 11,370 11,427 -0.49% Crude (17NOV2017) 3,528 3,513 0.43% JPYINR 28-NOV-2017 57.39 57.37 0.04%

NIFTY METAL 3,877 3,944 -1.71% Gold ( 05DEC2017) 29,153 29,384 -0.79% GBPINR 28-NOV-2017 85.92 85.81 0.14%

NIFTY PSU BANK 3,784 3,867 -2.14% Silver (05DEC2017) 38,818 39,265 -1.14%

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

AXISBANK 525 41 8.5 UPL 799 -25 -3.1

INFRATEL 442 12 2.9 VEDL 332 -9 -2.6

ONGC 191 5 2.4 GAIL 465 -11 -2.2

HCLTECH 855 19 2.3 M&M 1346 -29 -2.1

BHARTIARTL 498 5 1.0 TATASTEEL 704 -15 -2.1


AXISBANK 523 39 8.0 PFC 139 -5 -3.6

DLF 201 13 7.1 PNB 197 -7 -3.6

BEL 185 9 5.3 LICHSGFIN 599 -20 -3.2

DABUR 333 12 3.6 UPL 799 -25 -3.0

INFRATEL 442 12 2.8 SAIL 78 -2 -2.6


RCOM 17 1 9.2 IDBI 63 -3 -3.9

GMRINFRA 19 1 5.5 UNIONBANK 177 -7 -3.9

BEL 185 9 5.3 LICHSGFIN 599 -20 -3.2

SHRIRAMCIT 2301 114 5.2 INDIANB 315 -9 -2.7

MRPL 142 7 5.0 SAIL 78 -2 -2.6


8KMILES 668 96 16.8 BHUSANSTL 65 -8 -11.2

BALAMINES 516 73 16.5 TANLA 33 -3 -7.8

INDIAGLYCO 374 49 15.0 SIGNETIND 13 -1.0 -6.9

SAINTGOBAIN 74 9 13.1 ORICON 64 -5 -6.7

KIRIINDUS 597 68 12.8 ONMOBILE 60 -4 -6.2

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Domestic Market View

Markets to see a positive start reacting to ease of doing

business report

The Indian markets after a lackluster trade ended

modestly lower in the last session following the subdued

trend in the other global markets. Today, the start is

likely to be in green amid positive global cues and

traders will be reacting to the report of India’s ranking in

the World Bank ease of doing business survey for 2018

climbing a record 30 notches to 100, as a range of

regulatory and policy reforms put in place by the Union

and state governments over the past four years started

delivering results. The survey also recognized India as

one of the top five reformers in this year’s assessment.

Finance minister Arun Jaitley has said the target of

making it to the top 50 countries in the Doing Business

ranking now seems doable. Traders will also get some

encouragement from the economy front, as the Core

sector growth hit a six-month high in September. The

index of eight core industries was up 5.2% in September,

compared with 4.4% in August and 5.3% in September

last year. Also, fiscal deficit improved to 91.3% of the

budget estimate at the end of September from 96.1% at

the end of August as revenues picked up pace. Fiscal

deficit is pegged at Rs 4.99 lakh crore at the end of

September, down about Rs 26,000 crore from August as

second instalment of corporate taxes allowed revenue

to exceed spending in the month. The banking space

will keep buzzing, as the Country's

http://www.lkpsec.com/

Morning Notes


Domestic Market Overview

Benchmarks end choppy trade with marginal losses

Indian equity benchmarks ended the sluggish day of trade with marginal losses on Tuesday, as

traders remained cautious with a report from domestic rating agency Care Ratings, which said that

employment generation has not kept pace with GDP expansion and termed it as a ‘major concern’.

Such a scenario calls for proactive measures from government and the recent infrastructure building

efforts will help, it noted and said that employment growth has not kept pace with economic

growth. Traders overlooked report that the government has extended the last dates of filing GSTR-2

and GSTR-3. The last date for filing of GSTR-2 for the month of July, 2017 is 31st October, 2017, while

the last date for filing of GSTR-3 for the month of July, 2017 stands extended to 11th December,

2017. Besides, Finance Secretary Ashok Lavasa statement that India’s fiscal deficit is on the path of

recovery, with showing an ease of about 90 percent of the budget estimate for the full year at the

end of September from the level of 96.1 percent at the end of August, too failed to provide support.

However, losses remained capped with SBI Research in its latest report accessing that Indian

economy is likely to improve to 6 percent in the second quarter of the current fiscal year 2017-18, as

against 5.7 percent growth in the first quarter of FY18. It also said that Q2 growth might be in the

lower end of 6-6.5 percent band with an upward bias. Traders also took some comfort with report

that India is expecting a significant improvement in ranking in the World Bank's ease of doing

business index on the back of several steps taken by the government like bankruptcy law and host of

other reforms. Traders also got some solace with few foreign investment banks, who have started

revising upwards their targets for the benchmark indices on the back of bank recapitalisation

programme, infrastructure push and continued inflow of domestic savings into equities and said that

best is yet to come for Sensex and Nifty.

Stocks related to real estate space edged higher on report that real estate investment in India’s six

major cities doubled to $2.87 billion in the year ended June 2017 as Mumbai attracted maximum

capital and was ranked 81st globally. These six cities were able to attract capital because of strong

economic drivers, acceleration in reforms, high yields and rapidly modernizing business base.

Global Market Overview

Asian markets end mixed on Tuesday

Asian equity markets made a mixed closing on Tuesday as China's official manufacturing PMI for

October missed economists' expectations and the Bank of Japan kept its monetary policy steady, as

widely expected. Japanese shares ended on a flat note as the dollar dipped versus the yen and

preliminary figures showed Japan's industrial production dropped a seasonally adjusted 1.1 percent

month-over-month in September, reversing a 2.0 percent rise in August. A separate report revealed

that the country's jobless rate held steady for the third straight month in September, in line with

expectations. Meanwhile, Chinese shares closed marginally higher, underpinned by strong gains in

transport firms even as China posted a disappointing October manufacturing activity index. The

manufacturing PMI fell to 51.6 from 52.4 in September

US markets closed higher buoyed by quarterly results

The US markets closed higher on Tuesday, with the Nasdaq ending at a record and major indexes

overall wrapping up a strong October, as quarterly results kept equities drifting higher. For the

month, the Dow rose 4.3% while the S&P 500 was up 2.2% and the Nasdaq ended up 3.6%. All three

posted their biggest monthly percentage rise since February. Both the Dow and the S&P wrapped up

their seventh straight monthly gain, making for the longest such streak for the blue-chip gauge since

one ended April 2012, and the best for the S&P 500 since May 2013. The Nasdaq rose for its fourth

straight month. Investors followed the start of a two-day Federal Reserve meeting, which isn’t

expected to yield any changes to monetary policy. Investors will watch for clues on the health of the

economy and inflation as gauged by policy makers.

The Dow Jones added 28.5 points or 0.12 percent to 23,377.24, the Nasdaq gained 28.706 points or

0.43 percent to 6,727.67, and the S&P 500 edged higher by 2.43 points or 0.09 percent to 2,575.26.


Morning Notes

LKP Advisory

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

31-Oct (%) 31-Oct (%) Disc 31-Oct Chg (%)

NIFTY 10,369 -0.19 10,335 -0.27 33.2 24,671 1.29

NIFTYIT 10,891 0.50 10,838 -0.15 53.1 32 -1.25

BANKNIFTY 25,057 -0.34 25,019 0.12 38.1 1,764 -1.92

Symbol Prev Increase Spot Fut Spot Fut Prem /

31-Oct % Chg. 31-Oct % Del. % Del. Del Qty (‎₹) (‎₹) Chg (%.) Chg (%.) Disc

NIITTECH 1,020 47% 221,042 11% 30% 126,080 677 682 5.4% 5.5% 4.9

BEL 21,577 42% 9,716,575 34% 49% 8,387,811 185 186 4.7% 5.4% 1.0

GODREJCP 2,501 33% 886,949 84% 74% 563,951 934 941 0.2% 0.9% 6.9

CAPF 3,950 25% 1,318,388 35% 57% 969,795 755 761 4.5% 5.1% 6.2

MRPL 10,440 23% 2,638,363 25% 24% 2,213,422 142 144 5.0% 5.3% 1.3

NATIONALUM 25,776 15% 9,022,678 55% 49% 6,277,973 96 96 4.0% 4.7% 0.8

CONCOR 1,471 14% 440,241 59% 57% 263,932 1,382 1,395 0.9% 1.0% 12.4

BHARTIARTL 35,870 11% 6,020,278 50% 57% 2,157,722 497 501 1.1% 0.9% 3.9

KPIT 12,648 10% 1,419,662 24% 30% 662,740 148 149 5.8% 6.0% 0.9

MANAPPURAM 34,182 9% 4,055,265 42% 49% 2,405,177 101 102 2.9% 2.9% 0.7

Symbol Prev Increase in Spot Fut Spot Fut Prem /

31-Oct % Chg. 31-Oct % Del. % Del. Del Qty (‎₹) (‎₹) Chg (%.) Chg (%.) Disc

POWERGRID 19,680 38% 5,899,774 61% 58% 4,478,666 212 213 -0.3% -0.1% 1.1

LICHSGFIN 13,935 12% 3,545,916 56% 54% 2,010,533 599 603 -3.1% -3.1% 4.3

BANKBARODA 46,162 11% 7,812,661 41% 17% 4,675,019 170 171 -2.6% -2.5% 1.3

STAR 5,129 8% 358,607 18% 40% 185,019 829 831 -1.4% -1.5% 2.2

IBULHSGFIN 8,219 7% 830,002 56% 60% 13,690 1244 1243 -1.3% -1.3% -1.0

TATAMOTORS 46,353 6% 4,079,992 60% 48% 214,257 428 432 -2.1% -1.6% 3.1

CUMMINSIND 685 5% 333,921 75% 68% 148,225 905 902 -0.5% -1.3% -3.3

OFSS 51 5% 32,402 87% 56% 25,426 3499 3528 -0.1% -0.7% 28.8

CANFINHOME 4,468 5% 342,577 34% 40% 41,302 480 484 -2.0% -1.8% 3.9

HINDPETRO 24,535 5% 3,140,307 50% 35% 2,218,689 447 450 -1.8% -1.7% 2.6

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

Shiva Global Agro Industries has entered into marketing arrangement with Indian Potash and Greenstar Fertilizers for marketing of

Single Super Phosphate manufactured by Shiva Global Agro Industries under its brand name of ‘Trishul’.

Mindtree has been named a leader in ‘Zinnov Zones for Digital Services’ for 2017, a key industry benchmark for digital service

providers. The company has been recognized for its core digital strengths, including breadth of service offerings, innovation

capability, ecosystem leverage, proprietary assets, and new engagement models. The rating also considered the scale of Mindtree’s

digital business, clientele and talent.

Intellect Design Arena has launched its complete end-to-end Digital Core Banking solution, IDC 17.1. The product has been

specially designed for Truly Digital banking and carries unique differentiators including the deployment of BOTS, Artificial

Intelligence and Machine Language.

Salasar Techno Engineering has received new order worth Rs 112 crore from Reliance Jio, which is one of the major telecom

players in India. The order is to supply 1,715 telecom towers all over India. The order will be executed by March 2018. With this

order, the total order book now stands at over Rs 400 crore.

TRF has executed a Share Purchase Agreement (SPA) on October 31, 2017 with JL Power Venture (JPL) and Adithya Automotive

Applications (AAA), whereby TRF has agreed to sell its entire 51% stake in AAA to JPL, subject to the terms of SPA.

Zydus Cadila has received the final approval from the US Food & Drug Administration (USFDA) to market Doxycycline Hyclate

Tablets USP, 100 mg. The drug is a broad spectrum antibiotic and is indicated to treat or prevent a variety of infectious disorders

that are proven or strongly suspected to be caused by susceptible bacteria.

Tata Consultancy Services (TCS) has been accorded a leadership level score among the 2,418 companies that reported to CDP’s

Climate Change programme in 2017.

Adani Ports and Special Economic Zone (APSEZ) has raised Rs 1,600 crore by allotment of 16,000 Rated, Listed, Secured,

Redeemable, Non-Convertible Debentures (NCDs) of the face value of Rs 10,00,000 each on private placement basis. The said

NCDs will be listed on the Wholesale Debt Market segment of BSE.

Yes Bank has unveiled a superior payment wallet service, Bhim Yes Pay by fully integrating the application with all the IndiaStack

APIs and NPCI Products. The Bank has over 5.5 lakh registered users on Bhim Yes Pay and more than 2 lakh users have already

availed either UPI or Virtual Card Services to carry out P2P payments and online shopping.

Shri Dinesh Mills has incorporated wholly owned subsidiary (WOS) company by name ‘Fernway Technologies’ vide Certificate of

Incorporation dated October 30, 2017 issued by the Registrar of Companies, Ministry of Corporate Affairs, Government of India.

Shriram Transport Finance Company is considering raising of funds through various options of borrowings including by way of

issue of securities in onshore/offshore market on private placement basis. Based on the market conditions the meeting(s) of

Banking and Finance Committee/Debt Issuance Committee will be held during the next month ending November 30, 2017 to

consider and approve the terms and conditions of such borrowings.

Som Distilleries & Breweries has received United States Food and Drug Administration’s (USFDA) approval for its beer brands for

supplying these products to the United States of America (USA). The first trial order has already been dispatched.

Tata Global Beverages is evaluating the out of home beverage space with the pilot launch of its first tea cafe Tata Cha. The first Tata

Cha tea cafe is located at 12th Main Indiranagar, the heart of Bangalore. The company is planning to test launch a total of four pilot

stores to evaluate the consumer proposition and business model. Based on the outcome of the pilot, Tata Global Beverages will

decide on future course of action for the out of home beverage space.

Jindal Steel and Power (JSPL) is keen to participate in a tender floated by the Indian Railways for procuring rails. The Ministry of

Railways has recently floated a global tender to procure 7 lakh tonnes (LT) of rails worth Rs 3,500 crore.


Morning Notes


Bharti Telecom, promoter firm of Bharti Airtel, will acquire additional 4.62% at market price in the telecom major on or after

November 3.

Jindal Steel and Power (JSPL) is keen to participate in a tender floated by the Indian Railways for procuring rails. The Ministry of

Railways has recently floated a global tender to procure 7 lakh tonnes (LT) of rails worth Rs 3,500 crore.

Mcnally Bharat Engineering Company has secured order worth Rs 30 crore from Hindustan Zinc. The order is for work of ‘Balaria-

Mochia Surface Crushing Portal Package at Zawar Mines’.

Subros has bagged further order from Indian Railways for around Rs 10 crore. This order will be executed within the current

financial year. Further, the company has been shortlisted by two major Tier 1 suppliers of Indian Railways, Bombardier India and

Medha Servo Drives. They have engaged with Subros for future projects with Integral Coach Factory (ICF), Chennai. As part of this

engagement, both the companies have awarded trial orders to Subros. With this, the company is expecting exceptional business

growth in this segment.

Manappuram Finance has received an approval for the allotment of 2000 Secured Redeemable Non-Convertible Debentures

having face value of Rs 10 lakh each for Rs 200 crore on private placement basis in compliance with provisions of SEBI (Issue and

Listing of Debt Securities) Regulations, 2008 and other applicable Provisions. The company’s Financial Resources and Management

Committee of the Board of Directors at its meeting held on October 30, 2017, approved the same.

RCL Foods has closed its manufacturing activity and also its two retail outlets, due to non viability of the existing business. The

company is looking for a suitable buyer to sell the machineries used for manufacturing activity, subject to the applicable provisions

of all applicable laws for the time being in force.

Albert David has decided to shut down the operations of its plant located at Mandideep Unit at New Industrial Area No. 2,

Mandideep, Raisen District in state of Madhya Pradesh. The company’s Board of Directors at their meeting held on October 30,

2017, has decided the same.

Kajaria Ceramics has received an approval for acquisition of 43,33,500 equity shares of Rs 10 each of Jaxx Vitrified (Jaxx), a

subsidiary company, at a consideration aggregating up to Rs 8.68 crore, subject to applicable laws. The board of directors at its

meeting held on October 30, 2017 has approved for the same.

Mahindra & Mahindra Financial Services has received an approval for the allotment of Zero Coupon Secured Redeemable Non-

Convertible Debentures (NCDs) of the face value of Rs 10,00,000 each, at discount, aggregating to Rs 200 crore. At the Meeting of

the duly authorised Committee which was held on October 30, 2017, the same has been approved.

Seamec’s board has discussed in brief the concept of a restructuring arrangement between the company and HAL Offshore

proposed by its management. The board has advised its management to prepare a comprehensive proposal along with legal

requirements and place it before the subsequent board meeting for consideration.

NTPC will commence operation at Unit 2 of 250 MW of Bongaigaon Thermal Power Project (TPP) (3 X 250 MW). The company has

declared that the commercial operation will commence from November 1, 2017.

Himadri Speciality Chemical is planning to raise funds by further issue of securities by way of Preferential Issue/ QIP / FCCBs / FCEBs

/ ADRs / GDRs. The Board of Directors of the company at the meeting which is scheduled to be held on November 02, 2017 will

consider the same.

Deepak Fertilisers and Petrochemicals Corporation (DFPCL) is planning to raise Rs 250 crore through private placement of Non-

Convertible Debentures (NCDs) to replace its existing debt, subject to the approval of the shareholders of the company. The board

of directors will meet on November 2, 2017 to consider for the same.

Bharti Infratel has received an approval to explore and evaluate acquisition of stake in one or more tranches in Indus Towers with

the aim of making it a subsidiary or wholly owned subsidiary of the company. The board of directors of the company at its meeting

held on October 30, 2017 has approved for the same.


Morning Notes


Indian Oil Corporation (IOC) has received approval for augmenting its Koyali-Sanganer pipeline (KSPL) capacity up to 6 million

tonnes per annum (MTPA) from existing 4.6 MTPA at a cost of Rs 273.23 crore.

State Bank of India (SBI) in collaboration with the World Bank has sanctioned loans worth Rs 2,317 crore to finance grid-connected

solar rooftop projects in the country. The loans are intended for developers and end-users for installation of rooftop solar systems

on the rooftops of commercial, institutional and industrial buildings.

BNP Paribas Arbitrage sold 9,74,126 shares of Prakash Industries at Rs 141.34 per share on the NSE on October 30, 2017.

Corporation San Finance has bought 8,00,000 shares of Bharat Road Network at Rs 173.22 per share on the NSE on October 30,

2017.

Cartica Capital has sold 36,40,862 shares of PI Industries at Rs 775.01 on the NSE and 7,84,275 shares at Rs 775.03 on the BSE on

October 30, 2017.

Zen Technologies has received its biggest ever order from the domestic market. It is a landmark Rs 224 crore order from

Government of India (GoI), split into Rs 156 crore for equipment (expected to be executed during the next financial year 2018-

2019) and Rs 68 crore of AMC which will accrue over the 5 years following the warranty period of 2 years.

Thomas Cook (India) has completed acquisition of 100% stake of TC Forex Services (formerly known as Tata Capital Forex) from

TATA Capital on October 30, 2017.

Titagarh Wagons has entered into a Memorandum of Understanding (MoU) with MERMEC S.p.A., Italy (MERMEC) for setting up a

Joint Venture Company (JVC) for development, manufacture of cost effective diagnostic solutions for signaling and safety systems

for Indian Railways. The JVC will be incorporated in India with equal stake i.e. 50% each of the company and MERMEC.

Economy

India’s fiscal deficit on path of recovery: Finance Secretary

Dismissing worries over fiscal deficit target, Finance Secretary Ashok Lavasa has said that India’s fiscal deficit is on the path of

recovery, with showing an ease of about 90% of the budget estimate for the full year at the end of September from the level of

96.1% at the end of August.

Highlighting the difference in revenue and expenditure trends, Lavasa also said that there is no shortfall in revenue when it’s

compared to last year. He added that the flow of revenue stream has a steady course and revenue earning departments cannot

change it easily. On the expenditure front, he pointed that the acceleration in pace of expenditure is due to an early approval of

the budget. He said the revenue stream will start catching up when the country will move towards achieving the balance.

Finance Secretary also expressed worries over the direct taxes and indirect taxes performance as he feels that they need to perform

and added that that so far things are on course except for a little uncertainty on the goods and services tax. On expectations that

revenue from spectrum auctions is likely to fall short of target, he said every year there are some anticipated income schemes that

don’t materialise and something else will probably make up for that.

Cement demand growth likely to bounce back from Q4 FY18: ICRA

Domestic credit rating agency, ICRA in its latest report has said that cement demand growth is expected to bounce back from Q4

FY18 (January - March) after weak offtake in the first half of the current fiscal ending September (H1FY18) due to several factors

such as weak real estate activity, sand shortage and Goods and Services Tax (GST) implementation issues. Based on current trends,

it expects that the demand growth is likely to be driven by a pick-up in the housing segment - primarily affordable and rural

housing, and infrastructure segment - mostly road and irrigation projects. However, it said that subdued real estate activity and

sand unavailability in few states is expected to delay the cement demand recovery to Q4 FY18.

From the profitability perspective, the rating agency stated that the industry’s ability to maintain cement prices remains critical,

given the expectations of higher power, fuel and freight costs in this fiscal. According to the report, during five-months of FY2018,


Morning Notes


the cement production reported de-growth of 3.2% to 117.3 million MT when compared to 121.2 million MT during 5M FY2017. It

also noted that while in May 2017, production reported growth of 6.7% on a month-on-month (M-o-M) basis to 24.8 million MT, it

declined by 1.5% and 7.2% in June and July 2017 on an M-o-M basis to 24.5 million MT and 22.7 million MT respectively. It added

that monsoons impacted the demand in August-September 2017 across various regions and this resulted in a decline in demand by

3.1% on M-o-M basis in August 2017.

On the pricing front, the report indicated that despite adverse impact on cement prices across various regions, they continue to

remain higher than traditionally what has been witnessed in the monsoon impacted Q2s till FY2016. It noted that pet coke prices

continue to remain firm and are higher by around 12-15% in Q2 FY2018, compared to Q2 FY2017. It also mentioned that cement

demand remained subdued across the country due to various local issues - in the North, especially in the states of Uttar Pradesh

and Punjab the offtake has been impacted by sand shortage and labour unavailability, while in the West the implementation of the

Real Estate Regulatory Authority (RERA) Bill resulted in construction activity slowing down.

Govt constitutes ministerial panel to oversee merger proposals of PSBs

Moving ahead with reforms to revive the public sector banks (PSBs), the government has constituted a ministerial panel headed by

Finance Minister Arun Jaitley that will oversee merger proposals of the country’s 21 state-owned banks. The other members of the

panel include Railway and Coal Minister Piyush Goyal and Defence Minister Nirmala Sitharaman.

The decision comes less than a week after the government announced a Rs 2.11 trillion bank recapitalisation plan for public sector

banks weighed down by bad loans, seeking to stimulate the flow of credit to spur private investment. Jaitley had said that capital

infusion roadmap for PSBs will be accompanied by a series of banking reforms over next few months. The constitution of an

Alternative Mechanism is a move in that direction. The cabinet had decided to set up an Alternative Mechanism to fast-track PSBs

consolidation.

Besides, the consolidation of struggling state-run banks, which have a market share of about 70% and account for over 80% of bad

loans in the Indian banking system, is aimed at building scale and bolstering their risk-taking ability.

Job generation in India fails to keep pace with GDP expansion: Care Ratings

Confirming worries of jobless growth in India, Credit rating agency Care Ratings in its latest report has stated that employment

generation in the country has failed to keep pace with the gross domestic product (GDP) expansion in recent years. It also termed it

as a ‘major concern’ and noted that such a scenario calls for proactive measures from government and the recent infrastructure

building efforts will help. It added that the Union labour ministry had also conceded and set up a task force to compile figures of

jobs generated in the last three years.

From a sectoral basis, the rating agency has said that the services sector had extended some respite but manufacturing had failed

to create jobs in recent times. It also pointed out that banks, IT, retailing and healthcare continue to create jobs, while mining,

power and telecom saw reduction in employees. It further highlighted that banking is the highest among sectors when it comes to

generating employment, with a 21.3% share and is followed by IT, mining, healthcare and textiles. It also mentioned that sectors

which witnessed a fall in employment in FY17 from the previous fiscal included fast-moving consumer goods, media and

entertainment and paper. It also noted that crude oil, infrastructure, trading, automobiles and ancillaries, finance and hospitality,

which had recorded negative growth in employment in FY16, also witnessed growth in FY17.

Adding further, Credit rating did a study of employment in the corporate sector for last five years and asked for the findings to be

taken with caution because the unorganized sector and smaller businesses account for a large share in employment generation.

However, it believed that these numbers are broadly indicative of the trends witnessed in the last two years. It further highlighted

that aggregate employees in 1,473 companies grew to 5.18 million in FY17 from 5.01 million in FY15, a rise of a little over 1% per

year compared to over nearly 7% economic growth. From a cost of employment perspective, it indicated that the average salary

has risen for a sample of 1,473 firms to Rs 8.35 lakh in FY17 from Rs 7.13 lakh in FY15.


Tech View

LKP Advisory

CNX Nifty

Technical View

Nifty Spot Daily (10335.30) :- Nifty not able to sustain higher levels of 10354 and made a low at 10328 (low 10323) closed weak. For the

Day 10374-10405 and above it 10430-10456 looks a hurdle area and down side 10354 and below it 10328-10300 can be support.

Nifty is now trading at a crucial level and so caution is the state.

Bank nifty opened around 25044 ( open 25042) but failed to hold and retraced back support 24965 (low 24948). On the higher side

25044-25105-25280 are hurdles. Lower support now 24965-24807 and below its 24390 possible


Tech View

LKP Advisory

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

ACC 1,810 1,861 1,837 1,817 1,797 1,773 COALINDIA 286 293 289 286 283 279

APOLLOTYRE 246 251 248 246 244 241 DLF 201 219 207 197 187 174

ASHOKLEY 131 135 132 130 129 126 CONCOR 1,382 1,432 1,404 1,381 1,358 1,330

AXISBANK 523 564 537 515 493 466 ADANIENT 132 139 135 132 129 126

BANKBARODA 170 185 178 172 166 158 DRREDDY 2,428 2,598 2,511 2,441 2,370 2,283

BATAINDIA 811 838 825 815 805 792 DISHTV 78 80 79 78 76 75

BEML 1,714 1,792 1,755 1,725 1,694 1,657 EICHERMOT 32,233 33,183 32,750 32,400 32,050 31,617

BERGEPAINT 266 273 269 266 262 258 ENGINERSIN 186 195 189 185 180 175

BHARATFIN 975 994 983 974 965 954 EQUITAS 147 152 149 147 145 142

BHARATFORG 698 732 713 698 682 663 EXIDEIND 209 214 211 208 205 202

BOSCHLTD 21,012 21,550 21,307 21,110 20,914 20,671 FEDERALBNK 122 124 123 122 121 119

BPCL 542 562 548 538 527 514 GODFRYPHLP 1,008 1,025 1,016 1,009 1,001 993

BRITANNIA 4,640 4,873 4,766 4,680 4,594 4,488 GODREJCP 934 951 941 933 925 916

CANFINHOME 480 508 495 484 474 461 GODREJIND 593 611 601 593 585 576

CGPOWER 83 87 85 83 81 79 HAVELLS 485 500 493 487 481 473

ADANIPORTS 430 440 434 430 425 419 HEROMOTOCO 3,850 3,914 3,877 3,847 3,817 3,780

ADANIPOWER 33 35 34 33 32 30 HINDALCO 267 281 274 269 263 256

ALBK 78 83 81 79 77 75 AMBUJACEM 282 295 289 284 279 273

CHENNPETRO 469 497 481 468 455 440 HINDPETRO 447 472 460 450 440 427

AMARAJABAT 700 738 715 696 678 655 HINDZINC 315 330 322 317 311 304

APOLLOHOSP 1,039 1,055 1,046 1,039 1,032 1,023 ESCORTS 760 818 789 766 743 715

ARVIND 401 412 406 402 397 392 IBREALEST 225 234 228 223 218 212

CHOLAFIN 1,151 1,175 1,162 1,152 1,142 1,130 IBULHSGFIN 1,244 1,291 1,269 1,251 1,233 1,211

CIPLA 628 646 636 628 620 610 ANDHRABANK 66 70 68 67 65 63

ASIANPAINT 1,181 1,200 1,190 1,182 1,174 1,164 ICIL 119 124 121 119 117 114

AUROPHARMA 760 786 773 762 752 739 IDFC 63 68 65 62 60 56

BAJFINANCE 1,801 1,868 1,830 1,800 1,769 1,731 IGL 1,585 1,645 1,616 1,592 1,569 1,540

BALRAMCHIN 171 178 173 170 166 162 FORTIS 144 147 145 144 143 141

BANKINDIA 191 205 196 190 183 175 INDIACEM 194 200 197 194 191 188

COLPAL 1,065 1,081 1,072 1,064 1,057 1,048 INDIGO 1,248 1,294 1,262 1,237 1,212 1,180

BHEL 98 102 100 98 95 93 GLENMARK 618 632 625 619 614 607

CUMMINSIND 905 927 916 907 897 886 INDUSINDBK 1,627 1,661 1,644 1,629 1,615 1,597

DALMIABHA 2,992 3,119 3,055 3,003 2,950 2,886 INFIBEAM 127 130 129 127 126 125

INFY 922 938 930 924 918 910

CADILAHC 503 526 514 504 494 481 IOC 416 431 423 417 411 404

CAPF 755 822 777 740 702 657 GRASIM 1,227 1,274 1,244 1,220 1,196 1,166

CASTROLIND 400 409 405 401 397 393 ITC 266 270 267 266 264 261

CENTURYTEX 1,360 1,395 1,375 1,359 1,342 1,322 HCLTECH 856 884 866 851 837 818

CESC 1,019 1,064 1,039 1,018 997 971 JETAIRWAYS 584 615 595 579 563 543

DCBBANK 178 181 180 178 177 175 JINDALSTEL 163 172 167 163 159 154

PIVOT POINTS


Tech View

LKP Advisory


HDFC 1,707 1,752 1,729 1,711 1,693 1,670 POWERGRID 212 225 219 214 209 202

HEXAWARE 285 300 293 287 282 275 RAYMOND 892 917 905 895 885 873

JSWENERGY 85 90 88 86 84 82 PFC 139 150 145 141 137 132

BAJAJFINSV 5,010 5,401 5,188 5,017 4,845 4,633 RBLBANK 525 534 529 526 522 518

JSWSTEEL 258 269 263 259 254 248 PNB 197 214 207 200 194 186

JUBLFOOD 1,633 1,681 1,655 1,633 1,612 1,585 GSFC 161 169 163 158 154 148

JUSTDIAL 466 502 477 457 437 413 RELCAPITAL 577 606 592 580 568 553

ICICIBANK 300 307 304 301 297 294 HDFCBANK 1,809 1,823 1,814 1,806 1,799 1,789

KAJARIACER 680 706 693 681 670 656 HDIL 59 62 60 59 58 56

KPIT 148 162 153 145 138 128 HINDUNILVR 1,237 1,266 1,251 1,239 1,227 1,212

KSCL 575 595 582 571 560 547 RELIANCE 941 958 948 940 931 921

KTKBANK 163 168 164 162 159 155 IDBI 63 69 66 63 61 57

L&TFH 201 206 203 201 198 196 SAIL 78 85 81 78 75 71

LICHSGFIN 599 640 621 606 591 572 SHREECEM 18,930 19,507 19,217 18,983 18,749 18,459

INFRATEL 442 477 455 437 419 396 PTC 123 128 126 124 122 119

LT 1,222 1,262 1,241 1,224 1,207 1,186 SIEMENS 1,272 1,319 1,296 1,278 1,259 1,237

LUPIN 1,028 1,064 1,043 1,025 1,008 987 RAMCOCEM 721 758 741 726 712 694

BIOCON 359 373 367 362 356 350 SINTEX 27 28 27 27 26 26

M&M 1,345 1,405 1,377 1,355 1,333 1,305 IFCI 24 26 25 25 24 23

M&MFIN 432 447 437 429 421 411 SBIN 306 321 314 308 302 295

MARUTI 8,211 8,284 8,238 8,202 8,165 8,120 SOUTHBANK 31 32 31 31 30 29

MCDOWELL-N 3,051 3,150 3,099 3,058 3,016 2,965 SRF 1,689 1,764 1,728 1,699 1,670 1,634

MOTHERSUMI 365 373 368 364 359 354 INDIANB 315 337 326 318 309 298

KOTAKBANK 1,025 1,045 1,035 1,027 1,019 1,009 SRTRANSFIN 1,168 1,237 1,204 1,177 1,150 1,117

MRF 66,422 68,536 67,384 66,453 65,522 64,371 SUNPHARMA 553 570 560 553 545 535

MFSL 587 611 597 585 574 560 TATACHEM 733 761 748 737 727 714

NCC 109 115 112 109 107 103 TATAGLOBAL 227 233 229 226 223 219

CANBK 406 430 419 409 400 388 TATAMTRDVR 241 250 246 242 239 234

NTPC 181 186 183 182 180 177 TATASTEEL 704 755 730 710 690 665

OIL 369 389 379 372 364 354 IRB 243 262 252 243 235 225

DABUR 333 346 337 330 323 314 TITAN 635 657 643 632 621 607

MRPL 142 160 149 141 132 121 TORNTPOWER 271 284 278 272 267 260

MUTHOOTFIN 493 510 501 494 486 477 TV18BRDCST 44 45 44 44 43 42

NBCC 260 278 270 263 256 248 TVSMOTOR 723 742 733 725 718 708

PAGEIND 19,956 20,592 20,248 19,970 19,692 19,348 UNIONBANK 176 194 186 179 172 163

DHFL 643 667 654 644 635 622 UPL 799 867 835 810 784 753

NESTLEIND 7,239 7,394 7,311 7,243 7,176 7,093 VEDL 332 353 343 335 327 317

NIITTECH 677 750 706 671 636 593 VGUARD 215 223 219 215 212 207

PEL 2,748 2,813 2,779 2,751 2,724 2,690 STAR 829 900 861 828 796 756

PETRONET 260 267 263 260 257 253 VOLTAS 568 592 576 564 551 536

PIDILITIND 782 794 788 783 778 772 YESBANK 314 326 320 315 310 304

PCJEWELLER 351 361 356 352 347 342 SUNTV 857 908 878 855 831 801


Tech View

LKP Advisory


SUZLON 17 18 17 17 17 16

MARICO 315 323 318 314 310 304

ZEEL 542 556 549 543 537 530

TATAMOTORS 428 447 439 432 424 416

TATAPOWER 85 88 86 85 84 83

AJANTPHARM 1,220 1,340 1,283 1,237 1,191 1,135

TECHM 482 496 488 482 475 467

TORNTPHARM 1,270 1,303 1,287 1,274 1,261 1,245

MGL 1,202 1,241 1,222 1,207 1,193 1,174

BAJAJ-AUTO 3,257 3,331 3,296 3,268 3,240 3,205

BALKRISIND 1,705 1,761 1,725 1,696 1,667 1,631

CEATLTD 1,672 1,725 1,700 1,680 1,659 1,634

ONGC 191 199 194 189 185 179

HCC 40 42 41 40 39 38

ORIENTBANK 141 151 146 142 137 132

RELINFRA 503 517 510 505 499 492

BHARTIARTL 497 519 506 496 485 473

DIVISLAB 883 912 895 882 868 851

MCX 1,054 1,085 1,069 1,055 1,042 1,025

MINDTREE 480 492 485 479 473 465

GAIL 465 487 477 469 460 450

NMDC 128 133 131 129 127 124

SYNDIBANK 83 86 84 83 81 79

TATAELXSI 840 861 848 838 828 815

GRANULES 140 145 142 139 137 133


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