Equity research report 04 july 2016 ways2capital

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TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) NIFTY FIFTY : The Market has Opened in a Negative bias on Monday the 50 Share Index Nifty 50 opened 49 points below or 0.60 Percent of its last closing at 8039. The Uncertainty over the Consequence of the Britain Exit referendum still hang over investors Psyche. The Nifty was trading around its Crucial level of 8050. From Now Investors need to take a measured Approach and not get Carried away by dooms day. Scenario in so far as the impact on the Indian economy and Market is concerned. Once the Brexit concern settled, India will be the Net Gainer and Inflow would be Continue. The Volatility foreseen in the Market due to Negative Global Cues. The development in Euro zone will be decisive factor for the Market. Favorable Monsoon outcomes, increase in corporate Earning, and Possibility US Fed is not going to raise the interest rate will be positive Trigger For the Market. The Union Cabinet has cleared the 7 th pay Commission pay will also improve the sentiments and rate cut Possibility in near term by RBI. The Nifty Technically Seem toward 8400 level in near Term. The Crucial Level for Nifty is 83008350 Up side and 8150-8100 is Down Side.

BANK NIFTY : - The Bank Nifty has Opened in a Negative bias on Monday down by 80 points or 0.45 percent at 17346. The Current and savings account deposits, once a key pillar of any public sector bank's business in India, have shrunk rapidly since the turn of the century as customers moved to technology-savvy private sector banks attracted by their service and convenience. CASA deposits are crucial to a bank's health because they are the cheapest source of funds for banks. The Health of the Indian Financial System is worsened in the six month to march. Due to surge in bad loans and dwining profitability making banks vulnerable to extreme credit shock show the RBI Financial Stability Report. The Government must play the role of a responsible sponsor if it want’s Bank to Support Growth The RBI said. The Bank Nifty Seems Bull side in Technical Side. The crucial level for Bank Nifty is 17890-18080 down side and 18290-18380 is upside.

Monday, 04 July 2016


TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES ) NIFTY DAILY

WEEKLY

MONTHLY

R2

R1

PP

S1

S2

8464

8378

8335

8292

8206

R2

R1

PP

S1

S2

9148

8548

8248

7948

7348

R2

R1

PP

S1

S2

8374

8336

8298

8222

R2

R1

PP

S1

S2

18287

18111

18023

17935

17759

R2

R1

PP

S1

S2

18495

17826

17157

15819

R2

R1

PP

S1

S2

18285

18109

18021

17933

17757

8450

BANK NIFTY DAILY

WEEKLY

19833

MONTHLY

MOVING AVERAGE

21 DAYS

50 DAYS

100 DAYS

200 DAYS

NIFTY

8209

8042

7757

7799

BANK NIFTY

17715

17221

16224

16503

WEEKLY

MONTHLY

PARABOLIC SAR

DAILY

NIFTY

7929

7929

7001

BANK NIFTY

16956

16956

13740


PATTERN FORMATION ( NIFTY )

Detail of Chart On the Above given Chart of Nifty has Applied the Bollinger Band along with Parabolic SAR these are the Leading indicator, which tells the trends for Short Term break above or below Upper or Lower Band is Crucial Signal for the Particular Stock or Index, On the Above Given Chart of Nifty the Nifty has Given the Break Upper Band which is the clearly signal for long-Position of Nifty for Next Week if the Nifty is able to Sustain the Rally of Consecutive four days it could reach at around 8400-8540 level and if it is not able to Sustain the level of 8300 we could move toward 8250-8180 in near term. The crucial level for Nifty is 8400-8450 up side and 8300-8250 is Down side.


PATTERN FORMATION ( BANK NIFTY )

Details of ChartOn The Above given Chart of Bank Nifty has Applied the Bollinger Band and alo ng with Parabolic SAR both are the Trend Identification Indicators, Bollinger Band Gives the Indication of Buying or Selling break the level of above or below band. Some traders buy when it Break the Middle Band or Sell When it Break the Lower Band. On the Above given Chart of Bank Nifty it is looking to break the Level of Upper Side, We are Expecting that if the Bank Nifty is Holding the Trend it may touch the Level of 1820018400. The Crucial Level for Bank Nifty is 17800-18200.


NSE EQUITY DAILY LEVELS COMPANY NAME

R2

R1

PP

S1

S2

ACC ALBK

EQ EQ

1633 71

1625 70

1618 70

1610 69

1603 68

AMBUJACEM ASIAN PAINT AXISBANK BAJAJ-AUTO BANKBARODA BANKINDIA BHEL BHARTIARTL CIPLA COALINDIA DLF DRREDDY GAIL GRASIM HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK ITC INDUSIN D BANK INFY JINDALSTEL KOTAKBANK LT M&M MRF MARUTI ONGC ORIENTBANK RCOM RELCAPITAL RELIANCE RELINFRA RPOWER SBIN SSLT( VEDL) SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL UNIONBAN K

EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ

258 1019 551 2737 159 107 135 377 515 316 154 3548 403 4695 738 1272 1189 3220 126 914 243 268 1132 1184 74 772 1574 1498 34367 4253 238 115 53 405 979 553 53 222 138 772 469 76 332 136

256 1011 547 2705 158 106 133 373 512 313 152 3517 399 4666 735 1257 1181 3203 125 906 241 260 1125 1777 72 762 1559 1479 33983 4209 233 113 52 402 977 548 52 221 136 767 464 75 329 133

254 995 541 2686 155 103 131 367 505 311 151 3473 392 4647 732 1247 1176 3182 124 896 240 251 1122 1174 70 756 1529 1456 33517 4171 225 110 51 399 973 545 52 219 134 765 459 74 328 131

252 987 537 2654 154 102 129 363 502 308 149 3442 388 4618 739 1232 1168 3165 123 888 238 243 1115 1167 68 746 1514 1437 33133 4127 220 108 50 396 971 540 51 218 132 760 454 73 325 128

250 971 531 2635 151 99 127 357 495 306 148 3398 381 4599 726 1222 1163 3144 122 878 237 234 1112 1164 66 740 1484 1414 32667 4089 212 105 49 393 967 537 51 216 130 758 449 72 324 126


TOP 15 ACHIEVERS

SR.NO

1 2

SCRIPT NAME

PREV CLOSE

CMP

//

% CHANG E

BHEL

118.25

132.05

+ 11.67

DR. REDDY’S

3,153.2

3,484.1

+ 10.49

SR.NO

1

5 6

7 8

9 10

11 12

13 14

15

GRASIM IND S.

4,291.2

4,643.2

+ 8.20

BHARTI INFR A

324.75

350.20

+ 7.84

L&T

1,430.6

1,542.6

+ 7.83

BHARAT P ETR OL

1,013.4

1,091.9

+ 7.75

ONGC

209.40

225.00

+ 7.45

BOSCH LTD.

21,159.

22,684.

+ 7.20

CIPLA

476.55

508.60

+ 6.73

IDEA C ELLULAR

99.55

106.05

+ 6.53

AURO PHARMA

700.90

746.25

+ 6.47

BANK BARODA

147.15

156.60

+ 6.42

AXIS BANK LTD.

510.50

542.90

+ 6.35

HINDALCO

117.30

124.75

+ 6.35

LUPIN LTD.

1462.90

1552.8

+6.15 %

SCRIPT NAME

ITC LIM ITED

3

. 141. 141. 141. 141. 14 B33+B33+B33+B334 +B33 R580R580R580R580R58 H25 H25 H25 H25 H25 E34. E34. E34. E345 . E34 A407A407A407A407A40 D . . 4 D . . 4 D . . 4 D . . 4 B11+B11+B11+B116 +D B.1.1 R. . . R. . . R. . . R. . . R. . D 2 1 9 D 2 1 9 D 2 1 9 D 2 1 9 H, , H, , H, , H, , D H2 ,1 , T728T728T728T727 8T72 Y007A Y007A Y007A Y007A Y00 A I2 50+4B I2 52 0+4B I2 52 0+4B I2 52 0+4B I2 52 0 B ’R12 9. ’R19. ’R19. ’R198 . ’R19 I 12 O I 12 O I 12 O I 12 O I 12 O SA317SA317SA317SA317SA31 9 N S, , 7N S, , 7N S, , 7N S, , 7N S, , TI .9.15 T . . 5 T . . 5 T . . 1+I 91+I 915 +TI .9.1 FC16+. IFC9 16. FC16. FC110 6. FC16 D4 99 0 D4 99 0 D4 99 0 D4 99 0R D4 99 0 R H582R H582R H582R H511 82H58 P P P P P EA. 66EA. 66EA. 66EA. 66EA. 6 94 94 94 94 94 B 10 +B 10 +B 10 +B 10 +B 1 E1 E1 E1 E1 E1 A 5. . A 5. . A 5. . A 5.12 .A 5. L4 .5 . A L4 .5 . A L4 .5 . A L4 .5 . A L4 .5 . A T505T505T505T505T50 13 TN766TN766TN766TN766TN76 R C11 5+3R C11 5+3R C11 5+3R C11 5+3R C11 5 H H H H H D K. . . D K. . . D K. . . D K. 14 ..D K. . O O O O EI 12 EI 12 EI 12 EI 12 O EI 12 . 164. 164. 164. 164. 16 LL LL LL LL 15LL N746N746N746N746N74 B502B502B502B502B50 LD. . . LD. . . LD. . . LD. . . LD. . A A A A A U373A U373A U373A U373A U37 A R R R R R LL055LL055LL055LL055LL05 O O O O O A C A C A C A C A C D D D D D R R R O O O R O R O A +A +A +A +A +

PREV CLOSE

CMP

354

252

177

157

% CHANG E

- 28.73 %

D33+D33+D33+D332 +D33 KPIT TECHNO R, , R, , R, , R, , R, ,

3 4

TOP 15 LOOSERS

- 11.59 %

TCS

2573

2500

MASTEK LIMITED

139

135

ICRA LIM ITED

4104

4009

INFOSYS

1194

1172

WELSPUN CORP

81.60

80.00

ASIAN HOTEL

111

109

JUST DIAL

625

615

BALAJI TEL E

108

106.55

HCL TECHNO

741

731

ALKEM LAB ’S

1384

1367

INFIB EAM INCOR

680

672

BERGER P AINTS

279

276

NATCO PHARM A

574

568

- 2.84 % - 2.66 % - 2.32 % - 1.85 % - 1.84 % - 1.66 % - 1.59 % - 1.48 % - 1.37 % - 1.23 %

NEXT WEEK STARS (AS PER TECHNICAL ANALYSIS) +13.67 AMBUJA CEMENT AM 204 232 Futures Pack % BUJ 18128 20371 2. B +12.37 3. B 124.125.126.127. B12B B B % 1 1 1 1 A NSE FUTURE : BUY TATAMOTORS FUTURE A BOVE 462 TGT 80O80O80O80O 801 476 SL 455 ACC 1240 1385 O +11.68 OSCH ACC 2 2 2 2 2 CEM % FUTURE NSE FUTURE : BUY YESBA S NK LTD. ABOVE131122 S13S13TGT S13S131142 SL 1112 . . . . . ENT C L FUTURE A BOVE273618 C273CTGT 273C273C 273 SL 608 NSE FUTURE : BUY JUSTDIA 638 H 817H817H817H817H817 % L L %L %L %L % T T T71TTGT T 75.50 SL 68.75. NSE CASH : BUY MANAPPURAM NSE CASH A BOVE D DDDD NSE CASH : BUY CENTURYPLY NSE CASH A BOVE 205 TGT 218 SL 198. . . . . .

Cash Pack

NSE CASH : BUY TATAMTRDVR NSE CASH A BOVE 298 TGT 320 SL 290.

- 1.19 % - 1.14 % - 1.00 %

111- 211- 311- 4K11- 5 K11 P751P751P751P751P75 I 771I 771I 771I 771I 77 T .T .T .T .T M 11-5M11-5M11-5M11-5M11 A T332 9A T332 9A T332 9A T332 9A T33 SE95. SE95. SE95. SE95. SE95 TC 6 %TC 6 %TC 6 %TC 6 %TC IEH11-6IEH11-6IEH11-6IEH11-6IEH11 N K K K K K N111N N111N N111N N111N N11 FO97.%FO97.%FO97.%FO97.%FO97 O L428O L428O L428O L428O L42 A SI 11-5A SI 11-5A SI 11-5A SI 11-5A SI 11 SYM 101SYM101SYM101SYM101SYM10 ISI 19.%ISI 19.%ISI 19.%ISI 19.%ISI 19 TA 6TA 6TA 6TA 6TA B N N N N N E11-6B E11-6B E11-6B E11-6B E11 A D001A D001A D001A D001A D00 LH86.%LH86.%LH86.%LH86.%LH86 A O . 4A O . 4A O . 4A O . 4A O. A JT11 5-8A JT11 5-8A JT11 5-8A JT11 5-8A JT11 5 LIE33 51LIE33 51LIE33 51LIE33 51LIE33 5 K TL86.%K TL86.%K TL86.%K TL86.%K TL86 E472E472E472E472E47 B M M M M M L22-3B L22-3B L22-3B L22-3B L22 EE771EE771EE771EE771EE77 R L96.%R L96.%R L96.%R L96.%R L96 G A 1G A 1G A 1G A 1G A EB 4EB 4EB 4EB 4EB R R R R ’ R ’ ’ ’ ’ S %S %S %S %S P P P P P A A A A A I I I I I N N N N N T T T T T S S S S S


NSE - WEEKLY NEWS LETTERS � TOP NEWS OF THE WEEK Relaxation of foreign investment rules credit positive - Moody's - India's decision to relax foreign direct investment in sectors including defence, aviation, and retail is a positive development for the country's sovereign ratings, said Moody's Investors Service on Monday. "The announcement is credit positive because it demonstrates a continuatio n of reform momentum and paves the way for private investment and a boost in productivity," said Moody's. India announced last week sweeping reforms to rules on foreign direct investment and easier terms for investors in sectors ranging from civil aviation to pharmaceuticals. But Moody's warned reforms have stalled in passing a revamped goods and services tax and land acquisition rules. "We expect that political division will keep the reform process uneven and slow- moving," Moody's said.

Mauritius woos Indian investors to set up ventures in touris m, manufacturing Mauritius wooed Indian investors to set up ventures in various potential sectors like tourism, manufacturing, food processing and promised them hassle- free environment to have an access to African countries. "Mauritius offers great opportunity to Indian business houses to make investment in different sectors like tourism, food processing, manufacturing like textile, light engineering goods, trading, pharmaceuticals ICT BPO and financial services. "These are some of the sectors in Mauritius where Indian investors can make investments," Country Head of Board of Investment, Mauritius, Seewraj Nundlall told reporters here today. By setting up their ventures in Mauritius, Indian Corporates can have an access to African countries, he said.

India might get fillip in slowing UK trade post Brexit - Britain is likely to explore direct bilateral trade agreements with India which could impart a fillip to sluggish UK India trade ties after the UK's exit from the European Union, a Singapore bank said today. "Post exit EU, the UK is likely to explore direct bilateral trade agreements with other trading partners including India," said Development Bank of Singapore. "This might provide an alternate route to India, in comparison to the tough and the drawn-out negotiations on the EU Free Trade Agreement, in turn providing a fillip to a slowing India-UK trade," said DBS.

India's growth may dip by 60 bps on Brexit, pre dicts Morgan Stanley - Brexit is likely to have an adverse impact on India's growth with domestic GDP expected to decline by up to 60 basis points in a high-stress scenario within the next two years,


Morgan Stanley today said in a report. According to the global financial services major, with the UK's referendum to leave the European Union, the impact on Indian economy would be through trade and financial channels. However, it noted that owing to lower direct exposure in terms of exports to the UK, the Brexit impact would be "less" as compared to other more open economies in the region. "In a medium-stress scenario, we expect downside of 10-20 bps to GDP growth in the next two years, while in a high-stress scenario, we expect downside of 30-60 bps to GDP growth," Morgan Stanley said.

Continue structural reforms for sustainable growth: Raghuram Rajan - The Reserve Bank of India Governor Raghuram Rajan has once again reiterated that India needs to stay on the path of sound domestic policies and structural reforms to achieve sustainable growth. "Although India stands out in terms of relatively stronger growth and improved economic fundamentals, we need to stay on the path of sound domestic policies and structural reforms," Rajan wrote in the foreword to the latest edition of the regulator's Financial Stability Report. Rajan added that it was imperative that India dealt with legacy issues that were holding back growth and bring about changes to improve the effectiveness of our business processes and conduct. Once again raising the issue of stress in the banking sector the RBI governor said that clean-up of the system should be dealt with priority.

� TOP ECONOMY NEWS

P rime

Minister Narendra Modi asked people to declare their undisclosed income by

September 30, making it clear that this is the last chance to avoid problems.

Exports

from special economic zones logged a marginal growth of 0.77% to Rs 4.67

trillion in 2015-16.

Touching

a new high, India's holding of American government securities jumped to

USD121.6 billion in April amid uncertain global economic cues.

To clear the air on retrospective applicability of the stringent anti-avoidance GAAR rule, the I-T department has said the same will not apply to income from transfer of investments before April 1, 2017.


The

Food Safety and Standard Authority of India is working on regulations to check

misleading and unsubstantiated health and nutritiona l claims made by food and beverage companies.

To give a boost to public spending, the government has increased the financial powers of individual ministries. The Union Cabinet and the Cabinet Committee on Economic Affairs will now on only review proposals that exceed Rs. 10 billion while proposals between Rs. 5 billion and Rs. 10 billion would be cleared by the Finance Minister.

The

government is preparing the ground for at least one strategic stake sale in a public

sector unit this fiscal.

The

power ministry has sent a note to the Cabinet seeking its approval for the new

bidding document for domestic coal-based ultra mega power projects .

More than 10 million central government employees will get a pay hike after the Cabinet approved the implementation of the recommendations of the Seventh Central Pay Commission.

The Cabinet cleared a new mineral exploration policy that will allow private companies to carry out stand-alone exploration for the first time.

Sugar

mills have paid about 92% of their Rs. 529 billion cane dues to growers so far,

with only Rs. 42.25 billion pending for the current sugar season.

A model law that allows shops, malls and other establishments to operate throughout the year received Cabinet approval, which will give them the flexibility to open and shut at their convenience.

The

core sector index, which measures output of eight infrastructure industries, rose

2.8% in May, down from 8.5% in the previous month.

Retail inflation for industrial workers rose to 6.59% in May from 5.86% in the previous month on account of increase in price of food items.


The Cabinet Committee on Economic Affairs approved implementation of three highway projects entailing a cost of almost Rs. 60 billion.

The setting up of eight

new Indian Institutes of Technology will now cost an estimated

Rs. 139.90 billion as against Rs. 60.80 billion, after the Cabinet approved the revised cost estimates.

Expressing

“serious disappointment” with the NDA government for not accepting

modifications suggested by them, the National Joint Action Committee , comprising 3.5 million Railway, Defence, Central government and Postal employees, has called for a strike on July 11.

The Supreme Court declined to

stay an order of the Appellate Tribunal for Electricity

that directed a group of state electricity distribution companies to pay around Rs. 10.50 billion to Reliance Power's Sasan Power Ltd

To

provide relief to Corporates with income abroad, the Tax Department has notified

‘Foreign Tax Credit’ rules allowing companies to claim credit for taxes, surcharge and cess paid overseas. ✍ TOP CORPORATE NEWS Larsen & Toubro has won orders amounting to Rs. 24.16 billion across three business segments – building & factories, power transmission & distribution, and smart world & communication – in June 2016.

Adani Enterprises, has raised Rs. 1.50 billion through issuance of non-convertible debentures on private placement basis.

MBL Infrastructures Limited has bagged a Rs. 7.79 billion road project from the National Highways Authority of India.

Bharat Heavy Electricals Limited has commissioned two units of 14MW each at Salma Hydro Electric Project order worth Rs. 5.70 billion from Power Grid Corporation of India for supply of the world's largest STATCOM (Synchronous Compensator in Afghanistan.

Siemens Limited has bagged an projects, the Indian arm of the German capital goods


company.

Bharti Airtel Limited and Axiata Group Berhad have further extended the agreement for merger of their Bangladesh operations till September 26, 2016.

The Enforcement Directorate summoned British liquor major Diageo and United Spirits Limited in connection with the USD 75 million deal between the two in February this year.

TVS Capital Funds has sold its investment in Wonderla Holidays Limited, as an anchor investor before the theme park and resort owner went public.

Alembic Pharmaceuticals’ Limited two API facilities at Panelav have been successfully inspected by the USFDA.

RPG Life Sciences has announced its foray into the cosmetics business with the tie-up with Italy-Swiss based Labo Cosprophar.

Maharashtra government plans to sign a MoU with Tata Powe r for sourcing 1,000 MW from the upcoming Dherand Thermal Project.

Motilal Os wal is set to raise USD 250-300 million from overseas investors for a fresh fund to provide growth capital to mid- market companies in the country. Bajaj Auto Limited is preparing to launch more motorcycles from the ‘V’ platform through this fiscal and the next as part of a plan to grow market share in the executive commuter space.

Gayatri Projects has bagged a Rs. 3.06 billion order from the Centre for four- laning of a highway on the Andhra Pradesh-Tamil Nadu border.

Reliance communications is rolling out 4G services commercially in Mumbai, Maharasthra and Andhra Pradesh circles.

Bharti Airtel launched 2G and 3G mobile services in towns of Lumla, Nafra and Longding in Arunachal Pradesh under its network transformation program "Project Leap".


Jet Airways, is talking to lenders about raising up to USD180mn thro ugh a loan, banking.

Torrent Pharmaceuticals has entered into an agreement with Hyderabad based Glochem Industries to acquire the latter's bulk drug manufacturing unit at Vishakhapatnam along with a few drug master files as a going concern on slump sale basis.

� TOP BANKING AND FINANCIAL NEWS OF THE WEEK Country's second- largest lender ICICI Bank Limited will add 400 more branches and expand its ATM network by another 1,000 in the current fiscal to boost business from retail operations. "We believe that a wide branch network is a cornerstone in retail banking. Keeping this in mind, we plan to add around 400 branches this fiscal. We also plan to expand our ATM network by adding over 1,000 ATMs," Chanda Kochhar Managing Director and Chief Executive Officer of ICICI Bank said in an Interview.

Cautioning against expecting too much from central banks, RBI Governor Raghuram Rajan has said it is wrong on their part also to always claim a 'bazooka' left up their sleeves, even as he asserted that life is "very d ifficult" in emerging markets. In a panel discussion here on lessons learnt by the central bankers from the global financial crisis, he also took on the industrial nations for expecting the emerging markets to be "orthodox" in their monetary and economic policies at a time when they themselves have "thrown out the orthodoxy out of the window". He was speaking at a panel discussion after the Per Jacobsson Foundation Lecture, delivered by JPMorgan Chase International Chairman Jacob Frenkel, on the occasion of the Bank for International Settlements Annual General Meeting here.

State-owned Syndicate Bank today it plans to raise up to Rs. 4,300 crore by way of different instruments, including selling shares, to meet business requirements and comply with global capital adequacy norms. "The bank has planned to access capital market for raising capital upto the extent of Rs 1,700 crore by issuing equity shares by way of Qualified Institutional Placement /Rights Issue/ Follow on Public Issue or any other mode" in one or more tranches, Syndicate Bank said in a regulatory filing.

Leveraging on the popularity of Facebook and Twitter, State Bank of India today launched 'SBI Mingle', allowing its customers access various banking services via these social platforms. "Using SBI Mingle, the bank's customers can do a host of banking services on their Facebook or Twitter accounts at their own convenience," the bank said


in a press release.

Enforcement Directorate officials probing into a bank fraud committed allegedly by people behind Chennai-based First Leasing have expanded investigation to include former chief of the Indian cricket board AC Muthiah, who was the company's chairman and is currently in London. "We have begun Enquiries with him...a preliminary statement has been obtained from him and about 20 others. At the same time, we are also following the money trail to secure the proceeds of the crime," said KSVV Prasad, the joint director investigating the case.

Bank of Maharashtra is planning to raise Rs 1,000 crore for growth opportunities and has sought approval from shareholders for it. The approval was sought at the bank's annual general meeting of shareholders held in Pune. "The meet was held to seek shareholders consent to raise Rs 1,000 crore by way of FPO/ Rights issue/ QIPs etc to meet capital requirements as per RBI's Basel III norms to tap future growth opportunities," Bank of Maharashtra said

The health of the Indian financial system worsened in the six months to March due to surge in bad loans and dwindling profitability, making banks vulnerable to extreme credit shocks. But they are well positioned to face liquidity risks like a sudden surge in deposit withdrawals, the Reserve Bank of India said. Under conditions of extreme stress, bad loans could surge, hurting state-run lenders more than the rest and putting nearly a quarter of India's banking capital at risk of at risk of being wiped out through contagion effect if top borrowers default, the central bank said in its half- yearly Financial Stability Report.

The performance of the corporate sector has improved in the past year as the number of leveraged companies has fallen and the amount of debt in companies' books has also declined, Reserve Bank of India said in its bi-annual Financial Stability Report. The proportion of both leveraged and highly leveraged companies fell in March from a year ago — leveraged companies, with a negative net worth or a debt-to-equity ratio of 2% or more, dropped to 14% of the RBI sample size.


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Disclosure in terms of Conflict of Interest: (a) High Brow Market Research Pvt. Ltd. or his associate or his relative has no financial interest in the subject company and the nature of such financial interest; (b) High Brow Market Research Pvt. Ltd. or its associates or relatives, have no actual/beneficial ownership of one percent or more in the securities of the subject company, (c) High Brow Market Research Pvt. Ltd. or its associate has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;

Disclosure in terms of Compensation: High Brow Market Research Investment Advisor Pvt. Ltd. policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst's area of coverage. Analyst compensation: Analysts are salary based permanent employees of High Brow Market Research Pvt. Ltd.


Disclosure in terms of Public Appearance: (a) High Brow Market Research Pvt. Ltd. or its associates have not received any compensation from the subject company in the past twelve months; (b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report. (c) High Brow Market Research Pvt. Ltd. or its associates has never served as an officer, director or employee of the subject company; (d) High Brow Market Research Pvt. Ltd. has never been engaged in market making activity for the subject company.


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