TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) NIFTY FIFTY : - The Indian Benchmark Index, Nifty fell 2.12% for the week ended 11 Nov 2016. Volatility was the order of the week with the panic gap down low of 8076 being made on Wednesday on 9th Nov. Morning as it suffered from the double whammy when Indian Prime Minister Modi banned Rs. 500/- and Rs. 1000/- currency note to curb corruption and black money in India which affected sentiments. On that day US President candidate Mr. Donald Trump won the elections which shocked global financial markets. The Nifty open in a negative trend down by 12 points or 0.14 per cent at 8284. The benchmark Index Nifty fell by 163 points from its high of 8287 on Tuesday Trading Session. The benchmark index is experiencing a "see saw" between the bulls and the bears as evident from Nifty oscillating between the range of 8100 to 8600, two times in last 5 trading sessions. This is the result of Dollar outflows from the country because of the increased probability of a December Rate hike by US FED. The chances of December rate hike has increased as confirmed by the upside breakout in the 3 month US treasury yield. Similar phenomena occurred during FED's last rate hike in Nov-Dec 2015 where Nifty fell by 500 points. September IIP data is lower than the market estimates. The uncertainty around immediate outcomes of the demonetization introduced by the PM has contributed in such a highly volatile markets. Nifty saw relentless selling by FIIs in last 5 trading sessions where shares worth Rs. 8632 Crore have been sold in the cash segment. After a gap up opening , market fell and could not sustain above 8200 levels. This caused panic and markets fell further by 50 points in the last hour of trading Session. Nifty major support of 8076 if breached can put pressure and markets can go to the psychological level of 7920 mad BANK NIFTY : - The Banking Stocks Index Bank Nifty open in a Negative note on Tuesday trading Session down by 70 points or 0.36 per cent at 19808. Banking stocks continue to outperform their peers globally which makes 19500 a major support for Bank Nifty and an important resistance at 20300. Broader markets were weak with Bank Nifty selling off almost 1200 points from its recent high of 20300. With about Rs. 4 lakh crore coming into the banking system within a week after demonetisation, Moody's Investors Service today cautioned that banks' deposit base will witness a "shar p decline" as and when the current restriction on cash withdrawals eases. In a major assault on black money, counterfeit notes and terror financing. The Bank Nifty Chart showing the Cautiousness ahead. If Bank Nifty breaks above the level of 19900 the Bank Nifty can rally 400-600 points in near term. The support for Bank Nifty is at 19211-19166-1908018950-18825 and the resistance to the up move is at 19435-19490-19660-19800 levels. Monday, 21 November 2016
TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES ) NIFTY DAILY
WEEKLY
R2
R1
PP
S1
8321
8163
8084
8005
R2
R1
PP
S1
8324
8124
7924
R1
PP
S1
S2
8913
8250
7587
6261
R2
R1
PP
S1
S2
19850
19300
R2
R1
8724 MONTHLY
R2 10239
S2 7847 S2 7524
BANK NIFTY DAILY
WEEKLY
22041 MONTHLY
19025
PP
20173
R2
18305
PP
21242
21 DAYS
50 DAYS
NIFTY
8440
8545
BANK NIFTY
19437
19399
PARABOLIC SAR
DAILY
WEEKLY
S2 16437
S1
19144
MOVING AVERAGE
18200
S1
19239
R1
25438
18750
17046
100 DAYS
S2 12850
200 DAYS
8489
8320
18994
1830
MONTHLY
NIFTY
8048
8762
7670
BANK NIFTY
18431
18854
15629
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 Middle 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 middle Band. and it was not able to sustain the Significance Support level of 8150. and give Gap Down opening below its Lower Band. From this ;level we may see some Panic zone in Nifty for the Upcoming week. Nifty may witness the furthre downfall towards 7920 level. The Significance Levels for Nifty is 8150-8180 is up side and 8050-7980 is down 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 has touch the Upper band but not able to break the Resistance level of 19980. From this level we are Expecting the Bank Nifty may go Up side further to the level of 20260 for Next week. The Significance levels for Bank Nifty is 19920-20542 Up side and 1930018900 is Down Side.
NSE EQUITY DAILY LEVELS COMPANY
R2
R1
PP
S1
S2
ACC NAME ADANI PORTS
EQ EQ
1333 270
1320 265
1306 260
1293 255
1279 250
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
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
203 936 480 2599 180 652 137 310 19602 310 562 311 245 3318 447 838 787 1268 1245 2988 172 823 272 232 1142 939 72 791 1392 1262 50545 5041 279 165 40 445 997 467 41 282 219 710 305 2173 480 72 423 164 1200 477
200 925 477 2584 177 647 135 306 19424 306 555 309 235 3263 436 829 775 1258 1228 2962 168 812 268 230 1122 928 72 785 1381 1251 49822 4990 276 161 39 440 991 462 41 279 211 699 302 2149 474 71 404 161 1190 461
196 918 474 2565 175 640 134 301 19165 301 548 306 230 3202 431 815 766 1252 1218 2916 166 804 265 228 1109 923 70 779 1371 1236 49356 4939 275 157 38 436 987 457 40 276 206 680 297 2127 468 70 392 154 1175 452
193 907 471 2550 172 635 132 297 18987 297 541 304 220 3147 420 806 754 1242 1201 2890 162 794 261 226 1089 912 69 773 1360 1225 48633 4888 272 153 37 431 981 452 40 273 198 669 294 2103 462 69 373 151 1165 436
189 900 468 2531 170 628 131 292 18728 292 534 301 215 3086 415 792 745 1236 1191 2844 160 785 258 224 1076 907 68 767 1350 1210 48167 4837 271 149 36 427 977 447 39 270 191 650 289 2081 456 68 361 144 1150 427
TCS MOTORSDVR TATAMOTORS TATAPOWER TATASTEEL UNIONBANK YES BANK ZEEL LIMITED
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
CORP. BANK LTD.
42
48
INFEABEAM
923
1060
BANK BARODA
160
176
UNION BANK
143
157
DELTA CORP LTD.
106
116
ENGINEERS IND
268
283
POWER FINANCE
118
125
BHARAT FORGE
862
906
SWAN ENERGY
134
141
KRBL LTD.
238
250
CYIENT LTD.
458
480
NTPC
151
159
POWERGRID COR
183
191
CANARA BANK
311
326
PETRONET LNG
360
376
// % CHANGE
+ 15.52 % + 14.85 % + 10.25 % + 9.17 % + 9.11 % + 5.82 % + 5.75 % + 5.10 % + 5.09 % + 5.07 % + 4.91 % + 4.85 % + 4.83 % + 4.62 % + 4.27 %
SR.NO
TOP 15 LOOSERS SCRIPT NAME
PREV CLOSE
CMP
% CHANGE
1
TATA STEEL
426
385
- 9.71 %
2
AMBUJA CEMENT 219
198
- 9.45 %
3
INDUSIND BANK
1,192
1,101
- 8.94 %
4
ZEEL
482
446
-7.36 %
5
TATA MOTORS
504
471
- 7.11 %
6
ULTRATECH CEM 3634
3392
- 6.64 %
7
ACC LIMITED
1400
1309
- 6.48 %
8
AURO PHARMA
772
722
- 6.45 %
9
ITC LIMITED
242
227
- 6.22 %
10
ASIAN PAINTS
962
908
- 5.62 %
11
ADANI PORTS
276
261
- 5.37 %
12
COAL INDIA LTD. 324
306
-5.35 %
13
AXIS BANK LTD.
498
473
- 5.07 %
14
HDFC BANK
1275
1211
- 5.05 %
15
KOTAK BANK
815
779
- 4.46 %
NEXT WEEK STARS( AS PER TECHNICAL ANALYSIS ) NSE FUTURE NSE FUTURE : SELL VOLTAS FUTURE BELOW 290 TGT 280 SL 295 NSE FUTURE : SELL YESBANK FUTURE BELOW 1150 TGT 1110 SL 1170 NSE FUTURE : BUY TORNTPHARMA FUTURE ABOVE 1300 TGT 1350 SL 1280 NSE CASH NSE CASH : BUY AXISBANK NSE CASH ABOVE 483 TGT 515 SL 468. NSE CASH : BUY HINDUNILVR NSE CASH ABOVE 870 TGT 930 SL 845. NSE CASH : BUY ONGC NSE CASH ABOVE 272 TGT 292 SL 264.
NSE - WEEKLY NEWS LETTERS � TOP NEWS OF THE WEEK Demonetization to have temporary impact on MFIs, borrowers' - The Center's decision to demonetize Rs. 500 and Rs. 1,000 currency notes may impact micro-finance institutions and their borrowers on short term, with the latter likely to face high overdoes. The Narendra Modi-led government on November 8 had announced demonetizing notes of Rs. 500 and Rs. 1,000 in a clampdown on black money and counterfeit notes. "(Post demonetization) we expect MFI borrowers to face cash flow mismatch, thereby prioritizing their expenses. As a result, MFIs could witness high over-dues, indicating lack of diversification in MFIs' borrower profiles," India Ratings and Research associate director Jindal Haria told reporters. The rating agency today released a report on microfinance sector. He expects MFI borrowers to face cash flow mismatch, thereby reprioritising their expenses which will result into over-dues for MFIs. The report said demonetization suggests higher core capital requirements for MFIs to withstand systemic stress. "Most MFIs have liquidity in the form of steady-state unencumbered cash and unavailed bank lines to meet debt obligations for 30-60 days in the event of business disruption," the report said. FM Jaitley rules out demonetization rollback, says no plans for Rs 1,000 note at the moment - The government tightened over-the-counter currency exchange rules for invalid Rs. 500 and Rs. 1,000 notes, cutting the amount by more than half to ensure that more people get cash. It also provided relief to the farm sector and households with weddings. Finance Minister Arun Jaitley ruled out a rollback of demonetization, as demanded by some political parties, saying the government will "stick to it". The minister rejected calls for a joint parliamentary committee review of the decision. He also said the Rs. 1,000 note will not be reintroduced for now. The one-time exchange facility limit has been lowered to Rs. 2,000 from Rs. 4,500, effective Friday. The weekly cap of Rs. 24,000 on withdrawals from bank accounts remains. Farmers and mandi traders can get up to Rs. 50,000 in cash a week and families celebrating weddings can seek Rs. 2.5 lakh from their bank accounts. This is the second revision of the exchange limit, which was set at Rs. 4,000 initially and increased to Rs. 4,500 on November 14 to facilitate the issue of new Rs. 500 notes. "We find that many people are not able to reach the counter and the same persons are visiting the counter multiple times and other people are not getting the benefits," Economic Affairs Secretary Shaktikanta Das told reporters, while also clarifying that this did not indicate a shortage of funds.
RBI could use proceeds to retire part of govt debt - Economists say the Reserve Bank of India could help the government settle a part of its debt bilaterally from the mop-up from demonetization, without going to the market entirely. Since Rs. 2-3 lakh crore of unaccounted money would not find its way back into the system, there would be a permanent reduction in currency notes issued by the RBI. This could lead to a decline the value of its liabilities. In absence of concomitant reduction in value of RBI assets, it would result in a revaluation gain for RBI mainly through 'Rupee securities' held on its books. "This could be used by government to retire a part of its debt held on the books of RBI," said Shubhada Rao, chief economist, Yes Bank. "We estimate on the basis of a Rs 2 lakh crore worth of decline in liabilities, the interest expenses of the government would alone come down by Rs 16,000-17,000 crore." This is one of the options for the RBI besides transferring the gains to its profit and loss account and re-transfers it to the government as dividend. The legalities, however, remain uncertain in order to adjust its balance sheet for lower liabilities. Exports up 9.59 per cent at $ 23.5 billion in October; trade deficit at $ 10 billion India’s merchandise exports sharply rose in October with 18 of the 30 export sectors registering a growth in outward shipments. Showing a 9.6% rise, exports in the month were $ 23.5 billion compared with $ 21.4 billion in the year ago period while imports rose 8.1% to $ 33.7 billion from $ 31.1 billion in the year ago period leaving a trade deficit of $ 10.1 billion. “Overall the trade balance has improved,” said the commerce and industry ministry in a release. Gold imports more than doubled to $ 3.5 billion from $ 1.7 billion in the year ago period. As for services trade, data released by RBI showed exports worth $ 13.7 billion and imports of $ 8.3 billion in September. India’s bullish exports have come at a time when Chinese exports fell for the seventh consecutive month in October due to weak demand. Advance GDP estimates will be released on Jan 7 - The Central Statistics Office will release the first advance estimates of economic growth for the current financial year on January 7 to help the government prepare the Budget, which has been brought forward by about a month to February 1. The advance gross domestic product numbers are needed to arrive at estimates of the fiscal deficit and revenue for the next year, assuming a reasonable growth rate. Previously, the data was released around February 7, almost three weeks before the Budget. "It has been decided to release first advance estimates of GDP on January 7 or previous working day if January 7 is a holiday, two months and 24 days before the end of a financial year," the statistics office said. The office will now squeeze in the second advance estimates for the current financial year along with the third-quarter data on February 28 or on the last working day of February. Last month, chief statistician
TCA Anant told ET that the since the inventory of data collection is currently done for a release to be made on February 7, a separate inventory will have to be made for an earlier release. Moreover, to get a more accurate estimate of growth, the CSO will use of figures from the Annual Survey of Industries instead of data from the Index of Industrial Production for the manufacturing sector. CPI inflation may fall below 4 per cent in Nov-Dec period: Citigroup - CPI inflation could fall below 4 per cent in November-December period before climbing back to 4.5 per cent in March and accordingly there will be some space for further monetary policy easing, says a Citigroup report. According to the global financial services major, there is close to 50 bps downside to RBI's March 2017 CPI target of 5 per cent and consequently some space for further easing. Monetary policy committee, which has three members nominated by the government and the rest from the RBI, lowered repo rate to 6.25 per cent from 6.50 per cent at the end of two-day deliberations on October 4. The next meeting of the MPC is scheduled on December 6 and 7. "We maintain our rate cut view in December policy for now, but we also acknowledge that the December policy could be a close call," Citigroup said in a research note. Overall inflation eases in Oct but rate cut unlikely - Consumer and wholesale inflation eased in October on the back of cooling food prices but economists do not expect a rate cut by the Reserve Bank of India at its policy meeting next month. India's headline inflation rate based on the Consumer Price Index eased to 14 month low of 4.2% in October compared with 4.39% in September and 5% a year ago, according to official data released on Tuesday. The country's wholesale inflation softened to 3.39% in October from 3.57% in September, data showed. Economists, however, ruled out the possibility of the RBI cutting interest rates in December because demonetization will flush banks with funds, which will automatically push lending rates down. RBI had cut interest rate by 25 basis points in October. One basis point is one hundredth of a percentage point. "CPI is higher than our expectations," said Madan Sabnavis, chief economist at CARE Ratings. "Going ahead, retail inflation will be higher because of the demonetization drive and farm output may get stalled in some regions due to payment issues. Vegetable prices that declined recently are already going up. The RBI may not cut interest rate in December because banks are already flushed with funds and would reduce lending rate," he said. Industrial output rises 0.7 per cent year-on-year in September - India’s industrial growth rose 0.7% in September, after falling for two consecutive months. Woollen carpets, ship building and ready to eat food made industrial output inch up slightly in the month. Data released by the statistics office on Friday showed a 0.9% increase in
manufacturing production in September and a 3.1% fall in mining output. Manufacturing as a sector has the highest weight in the Index of Industrial Production. The pace of electricity generation improved 2.4%. In the first six months of 2016-17, mining output was flat while manufacturing has contracted 0.8%. August IIP reading was revised to a 0.99% decline compared with the 0.7% decline reported earlier. Capital goods output nosedived 21.6% in September. It has been falling for the last few months. The improved pace of industrial activity was evident in 12 out of the 22 industry groups in the manufacturing sector in September. Consumer goods production rose 6% in September with the output of consumer non-durables — an indicator of rural demand – rising a mere 0.1% and that of consumer durables, a gauge of urban demand, rising 14%.
✍ TOP ECONOMY NEWS
A mega package for the powerloom sector is in the works, focused on upgrading units. The package will include social welfare schemes, insurance cover and cluster development of power looms. This would be the second in a series of incentives for the textile sector, after a Rs 6,500 crore package announced for garments in June.
Corporate India’s merger and acquisition activity witnessed significant surge in October with transactions worth $4.5 billion, taking the total deal tally to $ 32.55 billion in the first 10 months of the year, according to Grant Thornton.
The
Insurance Regulatory & Development Authority of India is open to insurers
surpassing the 15% limit on equity holdings in a company under some conditions.
Gross
non-performing assets in the domestic steel sector, which accounts for 2% of
India's GDP , are around Rs 1.15 trillion.
Wholesale
Price Index-based inflation eased to 3.39% in October from 3.57% in
September as food items became cheaper. Aided by lower food articles inflation, the Consumer price index -based inflation for October 2016 came in at 4.20%. (
Merchandise exports
grew 9.6% year-on-year to USD 23.50 billion in October, while
imports expanded 8.11% year-on-year to USD 33.67 billion.
Petrol price was cut by Rs. 1.46/l and diesel by Rs. 1.53/l, reversing the rising trend of the past few weeks. (BS)
Reserve Bank Deputy Governor NS Vishwanathan said the deadline for banks to clean up their balance sheet 'stands' at March 2017, even as its governor Urjit Patel hinting at pragmatic approach in dealing with non performing assets.
Private equity and venture capital investments declined 27% to USD1.19bn in October due to decline in big ticket transactions.
With large amounts of cash currently being deposited in bank accounts by customers, the RBI is witnessing a deluge of funds through its reverse repo window as banks are parking their excess liquidity with the central bank.
India and the US have resolved more than 100 tax dispute cases involving Rs. 5000 crore under the bilateral Mutual Agreement Procedure.
A
scheme to construct 100 lakh houses in next three years has been approved by the
government with the objective of 'Housing for All by 2022'.
The Reserve Bank of India allowed foreign portfolio investors to invest in any kind of debt instrument, provided the residual maturity of the paper is three years and the proceeds are not used in real estate. � TOP CORPORATE NEWS Canada's Niko Resources wants to exit its 10% stake in the KG-D6 gas block off the east coast which it was developing in partnership with Reliance Industries at a time when the government has made a claim of about $ 1.55 billion against the contractors. The Future Group, India's largest retailer, is partnering British wholesaler Booker Group to open cash and carry stores. The equal joint venture between Future Consumer and UK’s largest wholesaler, plans to open 60-70 stores in three years to sell merchandise to local kirana stores, hotels and catering firms. Reliance Defence and Engineering Limited is planning to manufacture Kalashnikov
class of weapons for Indian armed forces in a joint venture with an Israeli arms maker, Kalashnikov Israel Company, Healthcare group Apollo Hospitals has plans to invest Rs. 14 billion over the next couple of years for expansion, and the company is all set to come up with the modern Proton therapy at its Chennai facility for the treatment of cancer patients in near future. Goldstone Infratech Limited has announced its move to assemble electric buses in partnership with BYD Company Limited, based in China. LafargeHolcim has increased its stake in Ambuja Cement Limited and ACC by 1.49% and 4.19%, respectively. The State Bank of India has cleaned up Non-Performing Assets worth Rs. 70.16 billion from its books by writing off loans given to 63 wilful defaulters. Of the 63 accounts, 31 have been partially written off and six shown as NPAs. Axis Bank Limited has cut marginal cost of fund-based lending rate by 0.15-0.20%. Reliance Communications Limited, through its wholly owned subsidiary Reliance Globalcom Services has acquired a newly incorporated firm named “Onyx NewCo LLC. Blackstone Group and Canadian investor Brookfield have joined the race to acquire as much as 40% in Bharti Infratel Limited, intensifying the contest to own a slice of India’s second-largest telecom tower company. Wipro Limited has begun offering solutions to customers from entrepreneurial projects of its employees in segments such as corporate treasury and software defined infrastructure. Crompton Greaves Consumer Electricals Limited has assigned an advertising budget of Rs. 1 billion towards building its brand and has appointed BBDO as its advertising agency. Apollo Tyres Limited is planning to set up a new factory in Andhra Pradesh to manufacture tyres for two-wheelers and pickup trucks. Religare Enterprises Limited said its subsidiary will write off a total of Rs. 7.94 billion on account of non-receipt of dues.
BHEL has expanded its footprint in the international market by securing export orders for supply of industrial motors to the African nations of Togo and Benin. Coal India Limited sold 7 MT of coal, or 35% of the quantity on offer in an e-auction, at a floor price that was 20% higher than listed prices for non-power users. Traders as well as power producers with or without supply commitments from Coal India were allowed to bid in the auction. Welspun India Limited has initiated steps to closely monitor and control its Egyptian cotton business, which had come under a cloud early this year over quality issues. Hindustan Petroleum Corporation Limited will take 25% equity stake in the proposed 60 MT refinery on the west coast that the state oil companies plan to build. Jet Airways Limited has expanded its existing code share pact with Kenya Airways which will allow the African carrier to fly more passengers into India Reliance Industries Limited and its partners, BP and Niko Resources, have initiated an arbitration process against the Centre's notice imposing a penalty of USD 1.55 billion on these companies for allegedly using migrated gas from Oil and Natural Gas Corporation's asset in KG-D6. L&T Infotech has been awarded a five-year contract by Hartford Steam Boiler. Wheels India Limited has signed a technology transfer agreement with Fluitecnik of Spain for hydraulic components used in wind turbines. Welspun India Limited has made a one-time provision of Rs. 4.89 billion to meet expenses and losses arising from export of home textile made of fake Egyptian cotton. IL&FS Transportation Networks Limited said its joint venture with IL&FS Engineering & Construction Co has bagged two road projects in Madhya Pradesh worth Rs. 375 crore. Lupin Limited said its US arm Gavis has received approval from the US health regulator to market hydrocodone bitartrate and acetaminophen tablets, a pain relieving drug, in the American market.
A month after suspending operations at its Bicholim iron ore mine in Goa due to labour unrest, Vedanta Limited has 'revoked the suspension order' with immediate effect. Federal Bank Limited has partnered with Oxigen for cash management services through the bank’s e – collection facility. No power producer has got in touch with Coal India Limited for supply of imported coal for plants in the current fiscal. CPL Biologicals Pvt Ltd, a joint-venture biotechnology company of Cadila Pharmaceuticals Limited, India and Novavax Inc, USA, has indigenously developed 'Cadiflu-S' becoming the first Indian company to develop a vaccine to treat seasonal influenza. IL&FS Financial Services became the first Indian company to raise money through a masala loan, a rupee-denominated loan from overseas investors, by securing the equivalent of USD50mn from Export Development Canada (EDC). (BS) Reliance Industries (RIL) has entered into a global partnership agreement with GE to enter in the Industrial Internet of Things (IIOT) space by building joint applications on the latter's Predix platform. (BS) Tata Motors has become the first company in India to introduce liquefied natural gasfuelled bus in Kochi recently. (BL)
✍ TOP BANKING AND FINANCIAL NEWS OF THE WEEK
Post withdrawal of Rs. 500 and Rs. 1,000 notes, banks have disbursed nearly Rs. 30,000 crore cash in bills of lower denominations and the newly-introduced Rs. 2,000 currency over the past three days, the apex body for lenders said today. The government on November 8 demonetised Rs. 500 and Rs. 1,000 notes in a step to curb black money. Following the move, banks were closed on November 9 to stock lower value notes and exchange the defunct ones. "In the last three days of working, nearly Rs 30,000 crore cash has been disbursed in currency notes of lower denominations and newly introduced Rs 2,000 notes. The ATMs are being recalibrated to handle new Rs 500 and Rs. 2,000 notes," Indian Banks' Association said in a statement.
State Bank of India today said that the central board today approved issuance of 13.63 crore shares to minority shareholders of its three listed subsidiaries and Government of India, that wholly owns Bharatiya Mahila Bank, as part of consolidation exercises. The board has "approved issuance of maximum 13,63,65,146 equity shares, of face value of Rs. 1 each, to the shareholders of State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of Travancore and the Government of India for its shareholding in BMB as on the record date at the agreed swap ratio...," SBI said in a filing to the BSE. Largest lender State Bank of India has said it has collected around Rs. 38,677 crore in deposits, while its branches exchanged Rs. 1,666 crore since yesterday after the government scrapped Rs. 500 and Rs. 1,000 notes on Tuesday. On Thursday, cash deposits were Rs. 21,150 crore while exchanges were Rs. 723 crore. Till 6 pm today, cash deposited was Rs. 17,527 crore and exchanges stood at Rs. 943 crore," SBI Chairperson Arundhati Bhattacharya told reporters here. Ujjivan Small Finance Bank today said it has received final license from Reserve Bank for small finance bank and is likely to commence banking operation in early 2017. Ujjivan Small Finance Bank is expected to commence banking operations in the first quarter of 2017 after receiving necessary approvals, registrations and licensing from various departments of RBI and other integrated agencies," Ujjivan said in a statement here today.
The government’s move to pull out Rs. 500 and Rs. 1,000 notes from circulation could result in a windfall gain for the Reserve Bank of India as it will reduce the central bank’s liabilities to the extent that the old notes do not come back into the system.
The money flooding into banks as people rush to deposit Rs. 500 and Rs 1,000 notes has resulted in such a massive bonanza that it’s pulling rates down, bankers said. Thus the longstanding complaint of the Reserve Bank of India that banks weren’t passing on rate reductions may be addressed soon. Banks ran out of currency in the Capital and elsewhere, although some cities reported that queues had shortened. In Parliament, the opposition parties attacked the government over the withdrawal of Rs 500 and Rs 1,000 notes, saying it was insensitive, caused hardship to people and had unleashed “economic anarchy”. Yes Bank Limited has partnered with Crownit, amerchant discovery and privileges platform, to launch digitised meal vouchers. The app based digital meal wallet can be
linked with a Meal Debit MasterCard which enables employees to avail unlimited food, beverage & grocery redemption options, both online and offline. Private lender Axis Bank Limited has cut marginal cost of fund-based lending rate by 0.15-0.20 per cent effective Friday. "Axis Bank reviews and reduces the MCLR by 15 basis points or 0.15 per cent across all tenures up to 1 year and by 20 bps for 2-year and 3-year tenure," it said in a regulatory filing. For overnight tenure, the new MCLR will be 8.65 per cent. One-month tenure will attract a rate of 8.70 per cent while those for three and six months will be 8.90 and 9 per cent, respectively.
With
about Rs. 4 lakh crore coming into the banking system within a week after
demonetization, Moody's Investors Service today cautioned that banks' deposit base will witness a "sharp decline" as and when the current restriction on cash withdrawals eases. In a major assault on black money, counterfeit notes and terror financing, Prime Minister Narendra Modi had on November 8 announced demonetisation of Rs 500 and Rs 1,000 notes and asked holders of such bills to deposit them in banks. Moody's said the trend of significant inflows will continue for the next 3-4 weeks. "But, as cash availability increases and the current restrictions on cash withdrawals are lifted, sharp declines in the deposit base will occur in the near future," Moody's said.
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