TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) NIFTY FIFTY : - Indian Markets witnessed magnificent rally on Friday on the back of rate cut hopes from RBI's Monetary Policy review due in December. Index Nifty saw a sharp upside rally of 132 points from a low of 8006 to make a high of 8138 and finally closed at 8118. The Nifty open in a Negative note on Monday down by 34 points or 0.42 per cent at 8080 level. Excess liquidity and cash reserves in banks, which are to the tune of Rs. 6 lakh crore, also raised hopes of lower inflation. However, The Central Banks decision of soaking up liqudity on Saturday could become a spoil sport during next week trading sessions. As of now, no trade is the best trade on Dalal Street. Untill and unless Nifty 50 trades and sustains above 8150 mark one should not remain Long. FII have continued their selling spree in the cash market. The net selling for the month of Nov stands at Rs. 19547 Cr, highest one month selling in the year 2016. Nifty has a major resistance at 8287, which the markets are not very likely to breach now. However, Nifty saw a sharp selling from 8219, just 68 points short of the major resistance. This could put some pressure on the markets. As stated earlier by Dynamic Levels, Nifty took resistance near its weekly level of 8288 and might continue to witness this pressure. However, next week has a major event lined up, the RBI credit policy on the 7th. This credit policy needs to be monitored even more minutely as Demonetization has already left its unforgettable mark on the face of Indian Economy. Expectations are that of a rate cut which would be cheered by the markets. Technically, Nifty is still in positive zone Market would remain in trading range and traders can go long in Nifty until Nifty holds 8117 levels by closing. Closing below 8117 levels would force Nifty to enter into negative zone again and if that happens, Nifty would see sharp downfall. Nifty would see strong support at 8160-8117-8100-8050 whereas strong resistance would be seen at 8250-8288-8305-8400 levels for Next week trading Session.
BANK NIFTY : - Indian Bank Index Bank Nifty opned in a Negative zone on Monday trading Session down by 270 points or 1.47 per cent at 18237 level. Bank Nifty continue outperforming. After RBI's latest move to curb excess liquidity with the banks, it was expected to put some pressure on the markets especially the banking shares, which may get the worst hit. Irrespective of all the odds, Indian Indices maintained their strength throughout the trading week. Bank Nifty has its Major Support at 18200 and 17963. However, if these levels are breached on the downside the next target for Bank Index is 17350. Traders can also consider going long in Bank Nifty at every dip and can take long positions if Bank Nifty closes above 18651 levels. Bank Nifty is at 18880-19000 levels, if it closes above 18651 levels. For now, traders should go long at every dip in the market. The Reserve Bank of India on Thursday capped banks’ exposure limit to a single entity to 20% and that to a business group at 25%. The move, aimed at containing concentration risk of banks, is in line with international best regulatory practice that is popularly known as Basel III norms. The Bank Nifty strong Support stand at 17960-18050 levels and Strong Resistance is 18542-18832. the Bank Nifty is Expected to trade in the range of 17960-18360 for Next week. If Bank Nifty is able to Sustain the 18160 level we may witness the 18560-18786 levels in Upcoming week.. Monday, 05 December 2016
TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES ) NIFTY DAILY
R2
R1
PP
8184
8113
R1
PP
8316
8135
R2
R1
PP
8640
8306
8139
R2
R1
PP
S1
19256
18614
18293
17972
R2
R1
PP
S1
S2
20004
18912
17820
16728
R2
R1
PP
S1
S2
18373
17827
8326 WEEKLY
R2 8678
MONTHLY
S1
S2
8042
7900
S1
S2
7954
7592
S1
S2
7972
7638
BANK NIFTY DAILY
WEEKLY
MONTHLY
20011
18366
18919
S2 17330
16735
MOVING AVERAGE
21 DAYS
50 DAYS
100 DAYS
200 DAYS
NIFTY
8232
8394
8416
8297
BANK NIFTY
18837
19094
18901
PARABOLIC SAR
DAILY
WEEKLY
MONTHLY
NIFTY
8400
8594
7826
BANK NIFTY
19518
20267
16124
18324
PATTERN FORMATION ( NIFTY )
Detail of Chart - On the above given daily Chart of Nifty has Applied Bollinger Band along with Parabolic SAR both the indicators are Leading Indicators, and gives signal of Buying or Selling. Although the Uses of Bollinger Band differ from traders to traders Some buy when it break the Lower Band from below side and some buy when it break Upper Band. We assume that the Breaking the Middle Band Usually a down side is bear Signal as we can see on the above given chart it has break the Lower Band. and it was not able to sustain the Significance Support level of 8060. and give Gap Down opening below its Lower Band. From this ;level we may see some Consolidation for Nifty for the Upcoming week. The Significance levels for Nifty is 8080-7968 is down side and 8120-8180 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 around lower Band if it is not able Sustain the Support level of 18250. From this level we are Expecting the Bank Nifty may go Further Down side to the level of 18150-18020 level for Next week. The Significance levels for Bank Nifty is 18614 - 19256 Up side and 18060-17980 is Down Side.
NSE EQUITY DAILY LEVELS COMPANY NAME
R2
R1
PP
S1
S2
ACC ADANI PORTS
EQ EQ
1342 278
1334 271
1325 268
1317 261
1308 258
AMBUJACEM ASIAN PAINT AXISBANK BAJAJ-AUTO BANKBARODA BPCL BHEL BHARTIARTL BOSCH LTD BHARTI INFRATEL CIPLA COALINDIA CAIRN INDIA LTD DRREDDY GAIL GRASIM HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK ITC INDUSIND BANK INFY IDEA CELLULAR KOTAKBANK LT M&M MRF MARUTI SUZUKI ONGC NTPC RCOM RELCAPITAL RELIANCE RELINFRA RPOWER SBIN SSLT( VEDL) SUNPHARMA TATA MOTORSDVR TCS TATAMOTORS TATAPOWER TATASTEEL UNIONBANK YES BANK LIMITED ZEEL
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 EQ EQ EQ EQ EQ EQ
208 948 468 2730 168 634 130 325 20999 399 578 315 256 3232 454 880 820 1266 1206 3239 176 858 268 236 1082 982 76 753 1386 1174 49884 5307 296 164 37 434 1011 468 42 262 228 734 461 2300 452 75 415 150 1173 463
207 927 464 2694 165 630 129 321 20675 392 572 312 252 3204 448 876 816 1248 1192 3209 172 848 264 232 1062 974 74 739 1372 1160 49368 5187 292 162 36 428 1003 462 41 258 224 728 446 2264 448 74 408 145 1161 452
205 914 460 2658 162 626 127 318 20337 387 566 308 248 3178 442 872 812 1242 1184 3180 168 838 259 228 1042 966 72 729 1366 1151 48824 5117 288 161 35 424 997 458 40 254 220 722 439 2235 444 73 401 143 1152 447
204 893 456 2628 159 622 126 314 20013 380 560 304 244 3150 438 868 808 1236 1178 3150 164 828 255 224 1022 958 70 715 1352 1137 48308 4997 286 159 34 418 989 454 39 250 216 716 424 2199 440 72 393 138 1140 436
202 880 452 2598 156 618 124 311 19675 375 544 298 240 3124 432 860 804 1230 1172 3121 160 818 250 220 1002 950 68 705 1346 1128 47764 4927 282 158 33 414 983 450 38 246 212 710 417 2170 436 71 386 136 1131 431
TOP 15 ACHIEVERS SR.NO
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
PREV CLOSE
SCRIPT NAME
// CMP
HPL ELECTRIC
100
108
NUCLEUS SOFT
256
272
SWAN ENERGY
150
157
KIRILOSKAR IND
820
853
GUJRAT INDUS
98
101
EICHER MOTORS
22202
22756
JYOTHY LAB
355
363
GUJRAT APOLLO
129
132
NELCO LIMITED
82.70
84.40
TECHNOCRAFT
356
363
IDEA CELLULAR
72.80
73.45
TATA POWER CO.
72.85
73.45
CIPLA
568
571
ULTRATECH CEM
3570
3585
ICICI BANK
258
259.25
% CHANGE
+8.00 % +6.29 % +4.90 % +4.00 % +2.59 % +2.50 % +2.39 % +2.17 % +2.06 % +1.91 % +0.89 % +0.82 % +0.53 % +0.42 % +0.23 %
TOP 15 LOOSERS SR.NO
SCRIPT NAME
PREV CLOSE
CMP
% CHANGE
1
HINDALCO
180
168
-6.51 %
2
BHARAT PETRO
639
608
-4.89 %
3
TATA MOTORS
452
432
-4.30 %
4
ASIAN PAINTS
945
904
-4.29 %
5
BANK BARODA
167
161
-4.05 %
6
KOTAK BANK
752
723
-3.80 %
7
TCS
2300
2221
-3.41 %
8
AURO PHARMA
740
719
-2.85 %
9
TECH MAHINDRA 487
473
-2.84 %
10
SBI
260
254
-2.63 %
11
AXIS BANK
471
459
-2.39 %
12
M&M
1173
1145
-2.34 %
13
INDUSIND BANK
1073
1056
-1.57 %
14
YES BANK LTD
1167
1150
-1.50 %
15
INFOSYS
977
964
-1.33 %
NEXT WEEK STARS( AS PER TECHNICAL ANALYSIS ) NSE FUTURE NSE FUTURE : SELL BHARATFIN FUTURE BELOW 695 TGT 650 SL 715 NSE FUTURE : BUY EICHMOTORS FUTURE ABOVE 23000 TGT 24000 SL 22500 NSE FUTURE :BUY TATAELEXI FUTURE ABOVE 1330 TGT 1400 SL 1295 NSE CASH NSE CASH : BUY BOSCHLTD NSE CASH ABOVE 20580 TGT 21815 SL 20155. NSE CASH : BUY YESBANK NSE CASH ABOVE 1162 TGT 1232 SL 1137.. NSE CASH : BUY MFSL NSE CASH ABOVE 550 TGT 585 SL 537..
NSE - WEEKLY NEWS LETTERS � TOP NEWS OF THE WEEK Government's public debt inches up 3 per cent in September quarter - The public debt of the central government rose 3 per cent in the July-September quarter compared to the previous quarter. "The Public Debt of the central government provisionally increased by 3 per cent in second quarter of 2016-17 on Q-o-Q basis," said the Quarterly Report on Debt Management for July-September 2016. Internal debt constituted 92.3 per cent of public debt as at end-September 2016, while marketable securities accounted for 83.4 per cent of public debt. About 26.2 per cent of outstanding stock has a residual maturity of up to 5 years, which implies that over the next five years, on an average, around 5.6 per cent of outstanding stock needs to be rolled over every year. "Thus, the rollover risk in debt portfolio continues to be low. The implementation of budgeted buyback/switches in coming months is expected to reduce rollover risk further," the report said. India's trade deficit with China rises to $ 53 billion in FY16 - India's trade deficit with China increased to USD 52.69 billion in 2015-16 from USD 48.48 billion in the previous financial year, Parliament was informed today. During the April-September period of 2016-17, the deficit is at USD 25.22 billion, Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha. "Increasing trade deficit with China can be attributed primarily to the fact that Chinese exports to India rely strongly on manufactured items to meet the demand of fast expanding sectors like telecom and power," she said. India is negotiating the Regional Comprehensive Economic Partnership trade agreement keeping in view "its offensive export interests" as well as sensitivities with respect to all participating countries including China, she said. She added that efforts are being made to increase overall exports by diversifying the trade basket with emphasis on manufactured goods, services, resolution of market access issues and other non-tariff barriers. Bank of America Merrill Lynch lowers GDP forecast to 7.1% for FY 2017 - Bank of America Merrill Lynch today trimmed the country's economic growth estimates by 30 basis points to 7.1 per cent for the current fiscal as demonetisation of Rs 500 and Rs 1,000 notes is expected to hurt activity in December. Besides, the global financial services major has lowered its GDP number by 30 bps to 7.3 RPT 7.3 per cent for the next fiscal. Earlier, BofA had estimated GDP growth at 7.4 per cent for 2016-17 and 7.6 per cent for 2017-18. At the same time, BofA said the Reserve Bank would cut rates by 25 basis points in the upcoming policy review on December 7, as the "conversion of black money into deposits allow banks to cut lending rates even in October-March busy industrial season". BofA said it is relieved to hear RBI governor Urjit Patel's comments that the banking regulator will review the cash reserve ratio hike as soon as the government issues an adequate quantum of Market
Stabilisation Scheme bonds. However, it noted that as CRR does not pay interest, banks would find it difficult to cut lending rates even if the RBI cuts lending rates by 25 bps in December. Rs 4,00,000 crore debt risks being written off: India Ratings - At least Rs 4 lakh crore of debt held by India’s top borrowers faces the risk of being written off as these companies face an issue with cash flows because of a build-up in non-productive assets during the last five years, credit rating agency Indian Ratings and Research said on Tuesday. The ratings agency analysed asset funding trends for the top 500 companies in India which showed that 240 out of the 500 companies may be classified as vulnerable with an overall debt of Rs 12.4 lakh crore. “Economic recovery will marginally benefit these entities. Structural mismatch in cash flow and relatively high proportion of non-productive assets will need to be addressed to restore debt sustainability. Banks may find it difficult to fit such corporates in the Scheme for Sustainable Structuring of Stressed Assets. Corporates operating in sectors such as infrastructure and construction, sugar, consumer durables, engineering and equipment, airlines and trading primarily fall in this category,� India ratings said. Credit growth hits double digit at 12% in September quarter - Deposit expansion of scheduled commercial banks stood at 12.9 per cent while credit growth was at 12.1 per cent for the quarter ended September, led by higher contribution by public sector banks, RBI today said. "The acceleration in both, deposits as well as credit, was broad based and observed across all population groups as also bank groups with exception of growth in bank credit by foreign banks," RBI said in its Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks: September 2016. It said public lenders continued to maintain their leading position, accounting for 70 per cent of total deposits and 67 per cent of credit in the quarter. Term deposits constituted the highest share (63.6 per cent) in aggregate deposits followed by savings (28.1 per cent) and current deposits (8.3 per cent). Seven states -- Maharashtra, NCT of Delhi, Tamil Nadu, Karnataka, Uttar Pradesh, West Bengal and Gujarat -- accounted for 68 per cent of the total business (deposits plus credit) of the banks in the country. "These seven states together accounted for 66 per cent of deposits and 72 per cent of credit, at all-India level," RBI data showed.
Cash shortage may slowdown GDP to 6.5% in Oct-Dec quarter: Nomura - Cash crunch post demonetisation is expected to slowdown India's GDP growth to 6.5 per cent for the fourth quarter of 2016 and is likely to spill over into the first quarter of 2017, says a report. According to global financial services firm Nomura, the cash shortage is likely to last till January. Nomura noted that even though the economy experienced a robust aggregate momentum before the demonetisation, its recovery was narrow-based due to weak investments and slow non-agriculture sectors with consumption serving as the only growth engine. "We expect the cash shortage triggered by demonetisation to last until January and GDP growth to slow to 6.5 per cent in fourth quarter Oct-Dec
and to remain subdued at 7 per cent in the first quarter 2017," Nomura said. "However, once the cash shortage eases, we expect a gradual recovery to take hold in the second half of 2017, owing to a boost to government fiscal finances and improved banking system liquidity," it added. Rate cut by Reserve Bank next week a near certainty, say economists - Minutes after RBI’s blunt move to soak up liquidity from banks, a fund house chief executive wrote a long text to members of his WhatsApp group justifying the hike in the cash reserve ratio and how it would stabilise markets. A day later, when the governor said it was a temporary measure, he joined those cheering in the bond market. These men know that a dip in growth and surge in deposits would force the central bank to lower interest rates sooner than later — an action that pushes up bond prices and softens bond yields. What’s bad news for the economy is good news for the bond market, which has recovered most of the losses from the shock of last Saturday’s CRR hike. “A rate cut now is not a conflict with the CRR hike because this hike will be eventually rolled back. The economy is at a standstill now, so we should expect a cut. We were always expecting a 25-basis-point cut in December and another 25 bps later in the fiscal, and we are sticking to our prediction,” said Indranil Sengupta, chief India economist at Bank of America-Merrill Lynch. Pradip Madhav, MD of STCI Primary Dealer — one of the country’s largest bond houses — said he would not rule out even a 50-bps cut by RBI.
✍ TOP ECONOMY NEWS
Indian banks' loans rose 7.9% in the two weeks to November 11 from a year earlier, while deposits rose 11.7.
A minimum of 50% tax may be levied on unexplained bank deposits made using the banned currency notes up to December 30 along with a 4-year lock in period for half of the remaining amount under the amendments to tax law the government plans to bring in Parliament shortly.
As
many as 273 infrastructure projects, including those delayed due to land acquisition, forest
clearances and other reasons, have led to a cost overrun of Rs. 1.77 trillion.
The government of India has so far generated a revenue of approximately Rs. 27.79 billion from the auction and allotment of 83 coal blocks.
The Finance Ministry said the customs department is moving towards a paperless regime and doing away with submission of certain documents physically by importers and exporters from December 1.
India's economy grew at 7.1% in the first six months of the current financial year despite subdued growth in the world economy.
Providing a window to black money holders, the government proposed to levy a total tax, penalty and surcharge of 50% on the amount deposited post demonetisation while higher taxes and stiffer penalty of up to 85% await those who don't disclose but are caught.
The government is pushing banks to install 1 million credit card swipe machines in the next three months. To incentivise banks and the manufacturers of point-of-sales terminals, the government has waived the 12.5% excise duty and 4% special excise duty on these machines.
The
Lok Sabha passed the Bill to amend Income Tax Act to impose tax on deposits made post-
demonetisation without debate.
Public banks have seen nearly Rs. 800 billion increase in gross non-performing assets in the three months ended September 2016.
The
Indian telecom sector has received foreign direct investment of USD 10 billion in the first 8
months of the current financial year.
GDP rose 7.3% in the quarter ended September, higher than the 7.1% in the previous one. Infrastructure sector recorded a growth rate of 6.6% in October — the highest in last six months — on the back of impressive performance by steel and refinery products.
State oil companies have raised the price of petrol by 13p/ltr and cut the price of diesel by 12p/ltr. The Nikkei/ Markit Manufacturing Purchase Managers Index fell to 52.3 in November from 54.4 in October.
Aviation
turbine fuel prices were cut by 3.7%, while subsidised LPG rate was hiked by Rs
2.07/cylinder, the seventh increase in cooking gas price in six months.
India Inc's borrowings from overseas markets fell by 30.3% from a year ago to USD1.47bn in October 2016.
The Reserve Bank of India will cap banks' exposure to a single entity to 20% of a lender's capital base and to 25% limit to a group of connected entities. � TOP CORPORATE NEWS Gufic Biosciences Limited has approved the Scheme of Amalgamation of Gufic Stridden Bio-Pharma with the company. Ashok Leyland Limited has completed the acquisition of Nissan Motor Co. Limited’s stake in each of the three joint ventures formed between the two companies. Bharat Heavy Electricals Limited and Kawasaki Heavy Industries, are in talks for forming a joint venture to make locomotives and steel coaches for metro trains in India. Strides Shasun Limited has inked a pact with Moberg Pharma to acquire PediaCare brand for over USD 5 million. Aurobindo Pharma Limited has inked a pact to acquire select commercial products in France from Teva for an undisclosed amount. Reliance Industries Limited has sought access to the LPG pipeline that Indian Oil Corporation Limited is laying from Gujarat to Gorakhpur in eastern Uttar Pradesh to cater to the growing demand for cooking gas in the country. Oil and Natural Gas Corporation is planning to invest USD 10-15 billion in East Coast. State Bank of India said it will raise Rs. 56.81 billion by issuance of preferential shares to the central government, its majority shareholder. Steel Authority of India Limited, Bhilai Steel Plant , is looking to develop and explore small mines to meet its iron-ore requirement. After eight years, the Rs. 60 billion joint venture between NTPC Limited and BHEL to manufacture power equipment has finally got into production mode at Mannavaram in Chittoor district of Andhra Pradesh.
Tata Motors Limited and Kingfisher Airlines are among the 4 companies that owe over Rs10bn in indirect taxes to the exchequer. The Competition Commission has approved the proposed acquisition of urea and customised fertilisers business of Tata Chemicals Limited by Norway’s Yara Fertilisers. RBL Bank Limited has tied up with Bajaj Finance, to launch a series of co-branded credit cards for Indian customers. After GAIL India Limited, Gujarat government has sought Rs 66 billion from the Central government to partly fund two gas pipeline projects of its firm GSPL including one taking the fuel to Jammu and Kashmir. Government has in-principle approved strategic disinvestment of loss-making subsidiary of Steel Authority of India Limited, Salem Steel Plant. Tata Steel Limited has signed an agreement with Liberty House to negotiate on sale of UK Speciality Steel biz for Rs. 8.54 billion. The Rs. 129.40 billion Jagdishpur-Haldia-Bokaro-Dhamra natural gas pipeline project, recently awarded to GAIL India Limited by the Cabinet Committee on Economic Affairs, has hit a regulatory roadblock as the Petroleum & Natural Gas Regulatory Board has questioned the validity of the government’s decision. Suzlon Energy Limited has announced that it has bagged a 50.40MW wind power project from a leading business house to be executed in Andhra Pradesh. Indiabulls Housing Finance Limited has raised Rs5bn by issuing debentures on a private placement basis. Sun Pharmaceuticals Industries Limited launched BromSite solution, marked for treatment of postoperative inflammation and prevention of ocular pain in patients undergoing cataract surgery, in the US market. The Competition Appellate Tribunal has granted a conditional stay against the Competition Commission of India's imposition of a Rs. 1.88 billion penalty against The India Cements Limited.
Reliance Infrastructure Limited has received capital market regulator SEBI’s clearance to launch an infrastructure investment trust. JSW Steel Limited has joined one of two investor groups vying to take over Italy's loss-making Ilva steel plant. Pfizer Limited is planning to extend its Corex brand to a series of new products to treat respiratory ailments as part of a revamp of its product portfolio. Natco Pharma has received final approval from the US Food and Drug Administration for a generic version of Armodafinil tablets used as a wakefulness promoting agent for oral administration. The government has ordered LPG producers like Reliance Industries to supply all the cooking gas they produce locally to state-owned oil companies only, and private retailers have been asked to source their requirements through imports. Reliance Industries Ltd's recent technological innovation for its Only Vimal textile brand, DEO2 process technology has been granted a patent by the US government's United States Patent & Trademark Office. Jet Airways is developing a gateway in Singapore, its first in East Asia, to build connections between Europe and Asia Pacific. Lupin Limited is launching generic version of sleep disorder Nuvigil tablets in the US market. The brand has an annual market size of USD 515 million and Lupin is the third company to launch the generic version in the US. Quess Corp has entered into agreements to acquire the facility management and catering businesses of Manipal Integrated Services Pvt. Ltd. Fortis Healthcare Limited has redeemed the outstanding USD100mn foreign currency convertible bonds listed on the Luxembourg stock exchange, on the due date. Apollo Hospitals said its clinics subsidiary, Apollo Health and Lifestyle, has raised Rs4.50bn by selling 29% equity stake to World Bank’s arm IFC, to fund its growth plans. Lupin Limited announced a new partnership with Eli Lilly India to market and sell the latter’s diabetes treatment drug ‘Eglucent’ in the country.
Bharat Heavy Electricals Ltd has commissioned the first unit of the 4x30MW Pulichintala hydroelectric project in Telangana. The government has restricted coal production from Reliance Power’s Moher and Moher Amlohri extension blocks attached to the Sasan ultra mega power project in Madhya Pradesh. KPIT has completed an agreement to invest in a Germany-headquartered automotive engineering services company. Mukesh Ambani, chairman and managing director, Reliance Industries said that all Reliance Jio's new users will get free voice calls and data from December 4 to 31 March 2017 as part of the company's new year offer. ITC Limited will set up an integrated consumer goods facility and a five star hotel in Odisha at an investment of Rs8bn. Sun Pharma is eyeing a controlling stake in Bolt Equity Limited which is backed by AAC Capital. Surana Solar Limited has received an order from Aryavaan Renewable Energy Pvt Ltd, one of the subsidiaries of Surana Telecom and Power Ltd, for the supply of solar modules for a 5MW solar power plant. Vedanta group has lined up Rs. 300 billion investments to ramp up the capacity of Cairn India. Wipro Limited has been awarded a three-year IT infrastructure services and digital transformation contract by Woodside, an Australian oil and gas company with a global presence.
� TOP BANKING AND FINANCIAL NEWS OF THE WEEK
Private sector lender RBL Bank, has tied up with non banking finance company Bajaj FinanceBSE 3.93 %, to launch a series of co-branded credit cards for Indian customers. The first of these credit cards is proposed to be launched in the fourth quarter of FY17. The co-branded cards are targeted at the large segment of people in metros and non-metros who have no credit cards. These will have many customer-friendly features, including no-cost EMI options, easy borrowing rates, digital payment solutions and more. The cards will also boast attractive offers and deals, said the bank in a statement.
Banks
and automated teller machines in Delhi, Mumbai and elsewhere were strapped for cash on
Monday as the supply of notes by the Reserve Bank of India continued to fall short of demand, leaving those awaiting the month-end payday filled with trepidation. While the lack of new Rs 500 notes was especially acute, bankers said currency supplies had improved from last week but not enough to meet customer requirements. Some officials speculated that the central bank may have turned its focus to the villages, where the economy is even more heavily dependent on cash and where distress could be acute since branches and ATMs are more widely dispersed than in urban areas. Long queues were seen outside ATMs in Mumbai, Delhi and Kolkata while many others were out of cash despite being tweaked to dispense the new, smaller-sized Rs 2,000 and Rs 500 notes.
The government will nudge banks to tap Pradhan Mantri Jan Dhan Yojana accounts that have seen a spurt in deposits to push financial services products, including insurance and pension schemes. The idea is to inculcate the transaction habit among accountholders and provide them basic financial cover, said a government official aware of deliberations. The move follows a surge in such accounts, promoted as part of the government’s financial inclusion drive, after Rs 500 and Rs 1,000 notes ceased to become legal tender starting November 9 in the campaign against black money.
Banks
played down expectations of a dramatic improvement in currency availability, raising the
prospect of queues lengthening as salaries get paid and people look to withdraw money from their accounts. While much of India has become habituated to the sight of people lining up at banks and cash dispensers since the November 8 demonetisation announcement, bank officials said the message from the Reserve Bank of India is that supplies may not get any easier in the near future and that they should push digital transactions. “We had sought a hearing with RBI as we were not allocated enough cash, but we were told that rationing of cash may continue for some time,” said a banker who was present at one of several meetings with central bank officials.
New central bank Governor Urjit Patel is facing fires on multiple fronts as he prepares for next week’s monetary policy review. A cash shortage triggered by Prime Minister Narendra Modi’s decision to void 86 percent of currency in circulation and an accompanying surge in banking liquidity as Indians deposit their worthless bank notes threatens one of the world’s economic bright spots. Gross domestic product data due later Wednesday is likely to highlight what’s as at stake as economists forecast a 7.5 expansion in July through September from a year earlier.
With
the government nudging people towards digital banking modes -- payments through mobile
phones, Point of Sale machines and others -- ATM players may find their business in a flux in the coming years. ATMs are cash-vending machines and operators are paid on a per transaction basis. While some industry insiders see a plateauing of demand for ATMs because of the various other
payment modes that will come into play in the near future, others are sanguine about the continued demand for the cash-dispensing machines.
The Reserve Bank of India on Thursday capped banks’ exposure limit to a single entity to 20% and that to a business group at 25%. The move, aimed at containing concentration risk of banks, is in line with international best regulatory practice that is popularly known as Basel III norms. A bank’s exposure to an entity or a business group is considered ‘large' if it is equal to or above 10% of a bank’s eligible capital base. According to the revised norms, the sum of all exposures of a bank to a single business entity must not be higher than 20% of a bank’s available and eligible capital base at all times. However, in exceptional cases, bank boards may be allowed an additional 5% exposure of the lender's available and eligible capital base.
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