Equity Research Report 23 November 2015 Ways2Capital

TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) CNX NIFTY - The Nifty Future is open on Monday 7732.95 The market took a sharp beating in post lunch trade triggered by sell-off in option futures. Traded between 7700-7800. On Wednesday Nifty tumbled below 7750 as fears of further downtrend seized trader. Even as the market inched lowered, thereatening to go below 7,750. The intensity of the fall was expected partly because of global actions leading to building of shorts and partly due to gains in dollar index. The Expectation of Market is on positive trend for next week. Thursday Market gives Some positive movement due to Globle Market open in Bullish trend and expectation traders took down the the possibility of December hike rate after the release, from a 74 percent chance to 68 percent. The expectation from market for next week toward positive movement. We could see the Nifty Around 8000-8100.Resistance for Nifty is R1 8019 And R2 8401Support for Nifty is S1 7637 S2 7255.

Bank Nifty Future: The Bank nifty is also open in red on Monday at 16881 and made the high of 17230 and low 16855 and traded between 16800-17200 the Bank Nifty is currently 17055 and for next we could expect the that nifty can give the gap up opening Reserve Bank of India (RBI) directed banks that they should lend at least 11.57 percent of their funds directly to non-corporate farmers in the fiscal 2015-16.RBI guoide Bank toward agriculture sector consider under the priority sector. The expectation from Banking shares is bullish trend and the chance of Bank Nifty to cross the level of 17200 the Resistance for Bank Nifty is 17410-18070 The Support of Bank Nifty is 16750-16090. According to Technical Analysis Some hot stock in Banking sector is HDFC Bank , ICICI Bank, YES Bank,Canara Bank and Bank of India we could take Buy Position on these script for short term Prospects.IT & Banking Sector is probably on Bullish Trend.

TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES ) NIFTY DAILY

R2 8124

R1 7950

PP 7863

S1 7776

S2 7602

WEEKLY

R2 8401

R1 8019

PP 7828

S1 7637

S2 7255

MONTHLY

R2 9101

R1 8297

PP 7895

S1 7493

S2 6689

DAILY

R2 18070

R1 17410

PP 17080

S1 16750

S2 16090

WEEKLY

R2 18586

R1 17556

PP 17041

S1 16526

S2 15496

MONTHLY

R2 19666

R1 17908

PP 17029

S1 16150

S2 14392

BANK NIFTY

MOVING AVERAGE

21 DAYS

50 DAYS

100 DAYS

200 DAYS

NIFTY

8044

7987

8180

8349

BANK NIFTY

17372

17243

17808

18195

PARABOLIC SAR

DAILY

WEEKLY

MONTHLY

NIFTY

7740

7685

8640

BANK NIFTY

16680

15910

19950

PATTERN FORMATION ( NIFTY AND BANK NIFTY )

MAs also impart important trading signals on their own, or when two averages cross over. A rising MA indicates that the security is in an uptrend, while a declining MA indicates that it is in a downtrend. Similarly, upward momentum is confirmed with a bullish crossover, which occurs when a short-term MA crosses above a longer-term MA. Downward momentum is confirmed with a bearish crossover, which occurs when a short-term MA crosses below a longer-term MA.While on the Above given Chart both the condition are not following so we can expect that if the Nifty is crossing the level of 8000 it can make 8100-8200 high for Next Week. Weekly Support of Nifty Is 7255-7637 And Resistance is 8019-8401.

BANK NIFTY MACD

Details of Chart - On the Above given chart of Bank Nifty Weekly MA for week is giving signal if it breaking the level of 17200 it could make high of 17500.So we can expect The Uptrend movement for Bank nifty in Next week trading Session. Reserve Bank of India (RBI) directed banks that they should lend at least 11.57 percent of their funds directly to non-corporate farmers in the fiscal 2015-16. So Banking Industry Shares Can open i the bullish trend on Monday. Resistance for Bank Nifty is R1 17556 R2 18586 and the Support of bank Nifty is S1 16526 S2 15596. Although The movement of Market depend on the globle Market News For instance Fed Hike Decision, Market trend And Others.

NSE EQUITY DAILY LEVELS COMPANY NAME

R2

R1

PP

S1

ACC

EQ

1357

1348

1339

1330

ALBK AMBUJACEM ASIAN PAINT AXISBANK BAJAJ-AUTO BANKBARODA BANKINDIA BHEL BHARTIARTL CIPLA COALINDIA DLF DRREDDY GAIL GRASIM HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK ITC INDUSIND BANK INFY JINDALSTEL KOTAKBANK LT M&M MRF MARUTI ONGC ORIENTBANK RCOM RELCAPITAL RELIANCE RELINFRA RPOWER

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

76 206 839 469 2563 178 133 181 343 653 341 108 3411 381 3728 884 1234 1093 2665 80 808 274 354 944 1074 98 700 1389 1345 39848 4846 238 152 68 413 970 439 50 253 96 746 414 68 235 48

75 204 833 465 2531 175 132 179 341 649 338 106 3378 369 3708 875 1223 1086 2627 79 803 271 351 934 1065 93 693 1375 1331 39597 4790 236 150 67 409 959 429 49 248 95 737 408 67 233 47

74 201 826 462 2478 171 129 177 337 640 335 104 3343 346 3679 865 1212 1073 2600 78 799 267 349 922 1053 89 686 1360 1311 39299 4711 234 147 66 406 942 418 48 245 93 732 405 67 230 47

74 199 820 458 2446 168 128 175 335 635 332 102 3310 334 3659 856 1201 1066 2562 77 794 264 345 913 1044 84 679 1346 1297 39048 4655 232 145 65 401 932 409 48 240 91 724 400 66 228 46

SBIN SSLT( VEDL) SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL UNIONBANK

S2

1321 73 196 813 455 2393 164 126 173 332 627 329 100 3275 311 3630 846 1190 1053 2535 77 790 260 343 901 1032 81 672 1331 1277 38750 4576 229 143 64 398 915 398 47 237 89 719 397 66 226 46

TOP 15 ACHIEVERS SR.NO

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

SCRIPT NAME

PREV CLOSE

CMP

SHRI RENUKA SUGUR VAKRANGEE

11.37 116.60

15.55 152.60

GAIL(INDIA) LTD. JINDAL STEEL

281.15 71.55

349.45 87.45

GMR INFRA LTD. FIRSTSOURCE SOLUT

11.64 32.60

14.07 38.60

HAVELLS INDIA JUST DIAL

258.65 773

293.00 868

CENTURY TEXTILES 510.60 FINOLEX CABLES 240

572.40 265

REL INFRA HIND CONSTRUCTION

380.35 23.00

417.60 25.25

JET AIRWAYS GATI LTD.

421.55 135

458.00 146.25

ADANI POWER LTD.

26.95

29.05

// % CHANGE

SR.NO

+36.76 %

1

+30.87 %

2

+24.29 %

3

+22.22 %

4

+20.88 %

5

+18.40 %

6

+13.28 %

7

+12.29 %

8

+12.10 %

9

+10.42 %

10

+9.79 %

11

+9.78 %

12

+8.65 %

13

+8.33 %

14

+7.79 5

15

TOP 15 LOOSERS SCRIPT NAME

PREV CLOSE

CMP

% CHANGE

KAVERI SEED CO. 462.30 SHREE CEMENT 11765

416.00 10862

-10.02 % -7.68 %

OIL INDIA LTD. GODREJ CONSUMER INDIAN HOTEL CO. REL COMM LTD.

390.80 1317.65

363.00 1225.00

-7.11 % -7.03 %

97.05 70.15

90.90 65.85

-6.34 % -6.13 %

DLF LTD. POWER FINANCE CO. AJANTA FARMA LTD. HEXAWARE TECHNO

108.80 226.05

102.15 213.40

-6.11 % -5.60 %

1419.80 262.70

1340.80 249.15

-5.56 % -5.16 %

INFOSYS EMAMI LTD.

1106.40 1051.95

1050.00 1000.00

-5.10 % -4.94 %

BEML LTD. IDBI BANK LTD.

1110.40 87.55

1067.20 84.40

-3.89 % -3.60 %

HERO MOTOCO

2657.40

2563.65

-3.53 %

NEXT WEEK STARS (AS PER TECHNICAL ANALYSIS PRIDICTION ) FUTURE CALLS 1.

ZEEL FUTURE : ZEEL MOVES IN BULLISH TREND WE CAN MADE LONG POSITION IN ZEEL ABOVE 401 TGT 420 SL 395.

2.

ADANI POWER : SELL ADANI POWER BELOW 269 TGT 250 SL 274.

3.

ARVIND FUTURE : SELL ARVIND FUTURE BELOW 304 TGT 290 SL 310.

4.

INFRATEL FUTURE : SELL INFRATEL FUTURE BELOW 384 TGT 370 SL 390.

5.

JUSTDIAL FUTURE : BUY JUSTDIAL FUTURE ABOVE 870 TGT 940 SL 854.

CASH CALLS 1.

AMARAJABAT CASH : AMARAJABAT HAS BEEN TRADING IN A CONSOLIDATED RANGE IF FOR COPPLE OF WEEKS AND BREAKOUR IS EXPECTED.LONG POSITION CAN BE MADE ABOVE 908 FOR TGT OF 965 WITH SL OF 887.

2.

JPASSOCIAT CASH : JPASSOCIAT CAN SHOW UPWARE MOMENTUM ABOVE 13.30.LONG POSITION CAN BE MADE ABOVE 13.30 FOR TGT OF 14.10 WITH SL OF 12.95.

3.

IOB CASH : IOB IS FORMING A KIND OF ROUNDING BOTTOM PATTERN ON DAILY CHART AND BREAKOUT LEVEL IS ABOVE 31.60, LONG POSITION CAN BE MADE ABOVE IT FOR TGT OF 33.80 WITH SL OF 30.90.

4.

INDIACEM CASH : INDIACEM IS EXPECTED TO SHOW UPWARD MOMENTUM , LONG POSITION CAN BE MADE ABOVE 83 FOR TGT OF 89 WITH SL OF 81.

5.

VAKRANGEE CASH : VAKRANGEE GAINED ABOUT 25% IN THE LAST WEEK AND EXPECTED TO MOVE UP FURTHER. LONG POSITION CAN BE MADE ABOVE 153 FOR TGT OF 162 WITH SL OF 148.

NSE - WEEKLY NEWS LETTERS TOP NEWS OF THE WEEK 1. October WPI seen at -3.82%; core inflation at -1.87% - The wholesale price index for the month of October is expected to decline 3.8 percent this month, compared to a decline of negative 4.4 percent on a month-on-month basis. The contraction is expected to come down on a MoM. The core inflation number is also expected to contract, but will remain in the negative zone. It is expected a decline of around 1.87 percent versus 1.93 percent. The build-up in inflation rate so far this year has been around 0.28 percent and compare this to 2.61 percent on a year on year basis. The decline is 3.5 percent to a decline of 4 percent. As per the estimates, lesser contraction is expected in all numbers in comparison to the previous month. They will still be in negative zone, but the contraction will be lesser. The quarter-on-quarter pick-up or the MoM pick-up is likely to be led by fuel as well as food inflation. Pulses rose over 40 percent, which is possibly is going to weigh to some effect on the WPI data as well.

2. State-owned compnies like IRFC, Hudco and NHAI to offer tax-free bonds of Rs 18,000 crore - Yield-hungry investors will have reason to celebrate even after Diwali. Three state-owned companies will offer tax-free bonds of as much as Rs 18,000 crore collectively in the next two to four weeks, giving crestfallen retail investors an opportunity to earn attractive returns over a long period. Indian Railways Finance Corporation, Housing & Urban Development Corporation and National Highways Authority of India will sell tax-free bonds that are at least five times larger than recent issuances, three market sources told ET. Individuals who could not subscribe to such bonds offered by NTPC, Power Finance Corporation and Rural Electrification Corporationin the past two months are now expected to rush for the fresh series. NTPC, PFC and REC sold bonds worth Rs 700 crore each, which were oversubscribed multiple times. IRFC will sell tax-free bonds worth Rs 4,532 crore at expected retail interest rates of about 7.30-7.48-7.45 per cent across 10-15-20-year maturities, dealers said. The rates will not be in sharp contrast to what were offered before the latest Reserve Bank of India interest rate cut, although they would be a tad higher than the REC issue two weeks ago.

3. India Inc mops up Rs 3lk cr in H1 FY16, prefers debt route - Indian companies have garnered close to Rs 3 lakh crore from the markets in the first half of the ongoing fiscal with debt market emerging as the most preferred route for their corporate needs. An analysis of funds raised through various channels showed that companies have mopped up fresh capital totalling Rs 2,90,470 crore through equity and debt in the first half of the current fiscal. A large

chunk of this, more than Rs 2.44 lakh crore came from the debt market, while Rs 46,197 crore were mobilised through equity. The funds were raised for business expansion plans to support working capital requirements and retire debt. In the equity segment, money was raised through the preferential route followed by qualified institutional placements, rights issue and initial public offers. Whereas in the debt market, the companies bagged over Rs 2.43 lakh crore through debt placement, while public issuance of debt securities accounted for just Rs 1,553 crore.

4. LIC's Rs 45,000 crore purchase exceeds 2014 infusion, accumulates tech and banking shares - Life Insurance Corp, the country's largest domestic institutional investor, has purchased shares worth over Rs 45,000 crore in the stock market so far in this financial year, exceeding last year's total. Taking advantage of volatile market conditions, LIC bought stocks of firms such as Tata Consultancy Services, Wipro and Axis Bank. LIC has simultaneously cut holdings in state-run companies, including Coal India and State Bank of India. Last year, LIC's gross investments were Rs45,000 crore, compared with Rs 53,373 crore in the previous year and Rs 33,205 crore in 2012-13. "This year, we have invested around Rs 45,000 crore in the equity market," said a senior LIC executive who did not want to be identified. "We have been buying equities since the beginning of this fiscal as valuations have tumbled for some sectors."

The insurer has been playing a contrarian theme, as it often does, and accumulated technology and banking company shares when they were being shunned by other investors over the past few months. LIC increased its stake in TCS to 2.44 per cent from 2.26 per cent in March, Wipro to 1.88 per cent from 1.64 per cent and Axis Bank to 14.14 per cent from 12.49 per cent in March. It cut holdings in SBI to 11.27 per cent from 11.82 per cent in March.

5. Japan economy shrinks 0.8% in Q3, back in recession - Japan's economy slid back into recession in July-September as uncertainty over the overseas outlook hurt business investment, putting policymakers under growing pressure to deploy new stimulus measures to support a fragile recovery. Many analysts expect the economy to grow only moderately in the current quarter as companies remain hesitant to use their record profits for wage hikes, underscoring the challenges premier Shinzo Abe faces in pulling Japan sustainably out of stagnation with his "Abenomics" stimulus policies. The world's third-largest economy shrank an annualised 0.8 percent in July-September, more than a median market forecast for a 0.2 percent contraction, government data showed on Monday.

6. Mutual Funds see Rs 1.35 lakh crore inflow in October - Investors pumped in Rs 1.35 lakh crore into various mutual fund schemes in October, with 'liquid' segment contributing the

most to the inflow.It follows an outflow of over Rs 77,000 crore into mutual fund products in the preceding month. It was the highest outflow in a single month since March, when the industry had seen a withdrawal to the tune of Rs 1,09,897 crore. According to data from the Association of Mutual Funds in India, investors have poured in a net of Rs 1,34,564 crore in MF schemes last month. With this, the total net inflow in MF schemes has crossed over Rs 2.15 lakh crore in the April-October period of the current fiscal, 2015-16. In comparison, mutual funds had witnessed an outflow of Rs 1.55 lakh crore in the year-ago period.

7. Wall Street surges over 1%, looks past Paris attacks - Wall Street had its strongest session in three weeks on Monday, with sizeable gains in energy shares as investors bet Friday's deadly attacks in Paris would have little long-term impact on the US economy and corporate earnings.

US oil prices rose after French air strikes in Syria in reaction to multiple attacks in Paris on Friday that killed 129 people, with Islamic State claiming responsibility.

8. Government to reach out to opposition to get GST Bill passed: FM Arun Jaitley Finance Minister Arun Jaitley today said the government would make all efforts to persuade the opposition for the passage of Constitution amendment bill for implementation of GST in the winter session."The process of economic reforms is a continuing one, no reform legislation is stopped in Parliament in past though delay may occur ... make efforts with opposition to get GST passed by Upper House in coming Parliament session," he said at UAE India Economic Forum 2015 Meeting here. The Goods and Services Tax , which will subsume more than a dozen state levies to create a single market, is to be implemented from April 1, 2016. But the deadline may be missed if Parliament does not pass the Constitution Amendment Bill in the upcoming winter session beginning November 26. The Bill has been passed in the Lok Sabha, it is awaiting clearance from the Rajya Sabha where the ruling NDA lacks a majority.

9. BSE to host Conscious Leadership conclave for head honchos - Prominent personalities from the industrial and corporate world will join a conclave on 'Conscious Leadership Passion, Purpose and Profit', for application of ancient Indian principles in modern businesses.

Organised at the Bombay Stock Exchange jointly with Artha Forum and Indo-American Chamber of Commerce on Saturday, the keynote address will be delivered by spiritual leader Radhanath Swami.

10. Chinese President Xi Jinping says China's economy resilient, ample room for manoeuvring - Chinese President Xi Jinping said on Wednesday that the fundamentals of

China's economy remain positive, the economy is proving resilient to the pains of deepening reform and there is ample room to fend off downward pressure. Xi also told a meeting of Asia-Pacific leaders in Manila, the Philippines, that the world economy was beset with uncertainties with growth continuing to fall short of expectations.

11. Arun Jaitley seeks UAE sovereign wealth funds' investment for NIIF - Finance Minister Arun Jaitley Tuesday invited sovereign wealth funds of the UAE to invest in National Infrastructure and Investment Fund, saying it will provide good return. NIIF will attract good return on the investment made by the Sovereign Wealth Funds, the Finance Ministry said in a statement."It's a great opportunity for UAE Sovereign Wealth Funds and Pension Funds to make best use of it and make big investment in India," it said. Abu Dhabi Investment Authority has shown keen interest in making investment on NIIF, it added. The recently created Rs 20,000-crore NIIF will be professionally managed and mainly invest in commercially viable infrastructure projects. The Finance Minister had a meeting with ADIA Managing Director Sheikh Hamed Bin Jayed Al Nahyan and Chairman, Abu Dhabi Crown Prince Court, where investment in various sectors including infrastructure were discussed.

12. India's current account deficit to be 1% of GDP in FY'16: Citi - India's current account deficit is likely to be about 1 percent of the GDP in the current fiscal because of low crude prices and contained gold imports, says a Citigroup report. According to the global financial services major, CAD is likely to be about USD 20.6 billion in 2015-16, as against USD 28 billion last year. Though it's still early to call the bottom on export contraction, we maintain our view of India's current account deficit narrowing to around 1 percent of GDP in FY16 due to low crude prices and contained gold imports," Citigroup said in a research note. According to official figures, trade deficit in the first seven months of the current fiscal has shrunk to USD 77.76 billion as against USD 86.26 billion last fiscal.

13. FPIs resume selling ahead of US Fed meet in December - Indian equity markets are witnessing another spell of selling by foreign funds ahead of US Fed meet in December where it may raise interest rates. Foreign portfolio investors have sold equities worth $517 million so far this month, stock exchanges data showed. A slew of foreign direct investment reforms announced by the government last week failed to contain sell-off as FPIs sold equities worth $227 million during the previous two sessions.On November 10, the government announced relaxation of FDI norms across 15 sectors including defence, banking, construction, single brand retail, broadcasting and civil aviation. The notification also said the Foreign Investment

Promotion Board could now clear proposals up to Rs 5,000 crore (compared to Rs 3,000 crore earlier). Amid concerns over China, overseas investors had sold equities worth $2.57 billion during the first quarter of the current fiscal, making it the worst quarter in nearly seven years.

However, October offered some respite to the Street as FPI buying picked up as the Reserve Bank had slashed the repo by 50 basis points. FPIs bought equities worth $877 million during October.

14. Fed may send a big message to markets - Minutes from the Fed's last meeting could be a big deal for markets Wednesday, showing the central bank is finally ready to raise rates next month — barring any negative surprises in the economy. "Hopefully, they'll make their intentions to raise rates a lot clearer in the new set of minutes," said Jack Ablin, CIO of BMO Private Bank. The Fed on Oct. 28 laid out some of what it would consider in December when deciding whether to move its target fed funds rate off of zero rates for the first time in nearly seven years. Analysts expect that to be emphasized in the minutes. I think even if they were to hike 25 basis points in December, it's not a tightening. It's just a removal of accommodation and I think they want to make that very clear so as not to derail the rally in risk assets," said Jim Caron, fixed income portfolio manager at Morgan Stanley Investment Management.

15. PM Narendra Modi to focus on anti-terror, business cooperation in Kuala Lumpur Shoring up efforts to combat terrorism and enhancing economic engagement will be the focus of Prime Minister Narendra Modi when he addresses two powerful regional blocs at the ASEAN-India and East Asia summits during his tree-day visit to Kuala Lumpur beginning Saturday. Modi will also hold talks with top leadership of Malaysia on ways to ramp up bilateral cooperation in a range of areas including defence and security and take the strategic ties to a new level. The two sides are like likely to sign a number of MoUs. Combating terrorism is likely to be the major focus area of the 10th East Asia Summit and the Prime Minister will seek concerted efforts to defeat the challenge as the shock of the Paris terrorist attacks jolted the whole world, said officials.The ASEAN is considered one of the world's fastest growing regions and both sides are likely to seek greater economic engagement besides expanding cooperation in host of other areas such as maritime security and dealing with illicit drug trafficking and cyber crime.

16. LIC diet sees more equity chomp -- Life Insurance Corporation of India has over the past three years slowly gone heavier on equity, from a conservative and debt-heavy investor.The country's largest insurer and one of the largest investors in the stock market is slowly turning

towards the equity markets, with higher investment and more participation in large issuances, too. Senior officials at the government-owned company said with volatility in the markets and stock prices, it was seen as a good opportunity to buy. "Churning has been more pronounced, and unlike others, we are a long-term player," said one.In the recent Indian Oil Corporation issue, the insurer took nearly 86 per cent of the offer. It had invested in the share issues of Coal India and share sales in Steel Authority of India last year. While it has often been labelled a 'bailout agency' of the government, LIC has maintained these were decisions it took on merits of the company, the issue and pricing, and after detailed assessment by an internal investment team.In a recent interview to this newspaper, LIC chairman S K Roy had said it was a rising market last year. As a contrarian investor, he said, LIC tends to sell in a rising market. "In a falling market, we will tend to buy. Which of the two will happen will depend on the behaviour of the market."

17. Federal Reserve leaves itself a little room — just in case - While Wall Street talks up the near certainty of a December interest rate hike, the Federal Reserve has left itself some wiggle room for delay. A summary from the most recent Federal Open Market Committee meeting in October contained the expected nod toward raising the key funds rate in December so long as conditions warrant. But the minutes also showed a committee more divided, if in sentiment but not in actual voting, than it's been since Janet Yellen chaired her first meeting in March 2014.

Traders took down the possibility of a December rate hike after the release of the minutes, from a 74 percent chance to 68 percent. Members actively debated the wisdom both in moving too soon and waiting too long. They wondered about delivering the wrong message both at the October meeting and after future FOMC gatherings where, ostensibly, the committee will begin hiking rates at a measured pace. And they debated not only over what to do should things continue to improve, but also how to proceed should conditions worsen.

18. Mutual Funds buy shares worth Rs 52,000 crore in Apr-Oct - Mutual Fund managers remained bullish on equity markets and purchased shares worth a staggering Rs 52,000 crore in the first seven months of the ongoing financial year. This is on top of Rs 40,722 crore already invested by them in the entire 2014-15 – the first net inflow in six years for an entire fiscal after outflows, on net basis, for five consecutive financial years. Between 2009-10 and 2013-14, MF managers had cumulatively sold shares worth over Rs 68,000 crore. They had bought shares worth Rs 6,985 crore in 2008-09. According to the latest Sebi data, fund managers have invested a net Rs 51,977 crore in the April-October period of 2015-16, making it the 18th consecutive month when MFs invested in equities.They have made intensive buying especially

in September and August, when the domestic market crashed due to rout in Chinese equities.

During that time, overseas investors have pulled out from the Indian stock markets.

19. Fed officials again flag December rate hike - Federal Reserve officials on Wednesday continued to flag December as a likely time for interest rates to rise after seven years near zero, with two expressing confidence they will be able to pull off a rate hike smoothly despite fears of an abrupt market reaction. Investors reacted by increasing the odds for a rate increase next month to 72 percent, from 64 percent on Tuesday, based on interest rate futures prices.

Cleveland Fed President Loretta Mester repeated her position that the U.S. economy is now strong enough to absorb a modest policy tightening. Atlanta Fed President Dennis Lockhart, sitting alongside her on a panel in New York, said global financial markets have settled since the August turmoil that caused the U.S. central bank to delay raising rates. "I am now reasonably satisfied the situation has settled down ... So I am comfortable with moving off zero soon, conditioned on no marked deterioration in economic conditions," Lockhart told a conference of bankers, traders and regulators. "I believe it will soon be appropriate to begin a new policy phase," he said, adding he will monitor economic data between now and a meeting on Dec. 15-16, for which he has a vote on policy. Mester regains a vote next year under a rotation.

Sentiment for a December hike took firm hold at the Fed's October 27-28 policy meeting, according to meeting minutes released on Wednesday that showed a solid core of U.S. central bankers poised for liftoff.

20. New bilateral assistance norms to fast-track projects:Goyal - The government today approved a policy on bilateral assistance to fast track flow of overseas investments into infrastructure projects. "We have today approved a policy on bilateral official development assistance for development cooperation with bilateral partners and modified the existing guidelines," Power Minister Piyush Goyal said after the cabinet meeting. The decision will provide a flexible regime and enable the Ministry of External Affairs and the Ministry of Finance to enter into bilateral agreements with different countries which will help India generate large amounts of investments at concessional terms for long durations. It will also help India in developing infrastructure in expeditious manner, he said. The decision has been taken is aimed further liberalising the activities under this bilateral cooperation with different countries. India has bilateral cooperation agreement with countries such as Japan.

21. India seeks investments from GCC countries - India has sought investments from the member countries of the Gulf Cooperation Council in sectors like infrastructure during a recently concluded meeting in Saudi Arabia, CII today said. A 42-member CII delegation participated in the 4th GCC-India Industrial Forum. The forum underscored the need for building strong business partnership between the two sides and exploring investment avenues in diverse fields, it said in a statement. The six GCC countries are - Oman, the UAE, Bahrain, Kuwait, Qatar and Saudi Arabia. "As an energy thirsty country, India looks to the oil-rich GCC states for more investments in vital areas, especially in petrochemical and pharmaceutical sectors," CII said. Quoting Saudi Arabia's Minister of Commerce and Industry Tawfiq Al-Rabiah, it said the Gulf and Indian investors should take advantage of the healthy business environment in both the sides. Inviting Gulf businessmen and investors, Joint Secretary in the Department of Industrial Policy and Promotion Ravneet Kaur said huge potential of investment opportunities exists in India. "India needs USD 1 trillion worth investments within the coming five years, especially in the infrastructure sector. The government is keen to move forward quickly with further simplifying the procedures to the maximum," she said.

22. Japanese retail investors return to India seeking emerging market yield - Just two years after India's policymakers stared down a major capital flight threat, the country has become a hot emerging market investment destination for one of the world's most robust sources of capital - Japanese households. Japanese retail investors chasing higher yields and resilient assets will provide Indian corporates another source of capital at a time of when capital inflows are peaking ahead of a widely-expected US interest rate rise. Fund managers say the increased interest from Japanese investors is also a vote of confidence in the fiscal and market reforms of Indian Prime Minister Narendra Modi, voted into office in May 2014. Just the year before that, worries about India's record current account deficit sent the rupee to a record low.

The reforms that have opened up India's markets to foreigners were game changers for the so-called "Mrs. Watanabe" - Japanese retail investors driven by their country's policy of zero interest rates to seek yield offshore.

23. RBI clears capital adequacy norm under new pvt bank licence - The Reserve Bank today clarified that the capital adequacy norms will be applicable on a consolidated basis on wholly-owned Non-Operative Financial Holding Company of the entities in the private sector banking. As per RBI guidelines for Licensing of New Banks in the Private Sector, the entities or group in the private sector are required to set up wholly-owned Non-Operative Financial

Holding Company

for carrying out business of banking and other permissible financial

activities. The guidelines further stipulates that the capital adequacy norms would be applied to the NOFHC on consolidated basis as applicable to existing banking groups. In this context, it is clarified that consolidated level capital adequacy would also mean application of consolidated capital adequacy norm to the NOFHC after consolidating the relevant entities held by it," RBI said in a notification. As per RBI guidelines, the NOFHC are required to be wholly owned by the promoter or promoter group to run the bank. Also, the NOFHC are mandated to hold the bank as well as all the other financial services entities of the group.

24. BSE to auction investment limits for Rs 332-crore government bonds - Leading stock exchange BSE on Monday will auction investment limits for foreign investors to buy government debt securities worth Rs 332 crore. The auction will be conducted on BSE ebidxchange platform from 1530 hours to 1730 hours after the close of market hours on Monday, November 23, the exchange said in a circular issued today. The debt auction quota gives overseas investors the right to invest in the debt, up to the limit purchased. A mock bidding session will be conducted today to check the system performance. Depository data showed that total investments, including limits acquired by foreign investors through the auction route, stood at Rs 1,29,048 crore till October 29, which is 99.34 per cent of the total permitted investment limit of Rs 1,29,900 crore in government debt securities. During earlier auctions, government bonds were subscribed multiple times, given the huge interest among foreign investors while the demand for corporate bonds remains less. Earlier this month, an auction for government bonds worth Rs 852 crore had attracted bids to the tune of Rs 1,678 crore. The Securities and Exchange Board of India has decided to enhance the limit for investment by FPIs in government securities in two tranches from October 12 to 1 January.

Earlier, they were allowed to invest up to Rs 1,24,432 crore in government debt securities through auction.

25. RBI sets direct agri-lending target at 11.57% - Reserve Bank of India (RBI) directed banks that they should lend at least 11.57 percent of their funds directly to non-corporate farmers in the fiscal 2015-16. RBI set the target for direct lending by banks to agriculture under priority sector at 11.57 percent, which is based on the system-wide average of the last three years' achievement with regard to overall direct lending to non-corporate farmers. "It is hereby brought to the notice of all concerned that the applicable system-wide average figures for computing achievements under priority sector lending for the FY 2015-16 is 11.57 percent," the central bank said in a notification. The foreign banks with more than 20 branches will continue

to be guided by their action plans as submitted by them and approved by RBI, it added. The target for direct lending by banks to agriculture under priority sector norms has aimed to increase the flow of credit directly to farmers. In an effort to increase direct lending to agriculture, the target for direct lending to small and marginal farmers is increased to 7 percent for 2015-16 and to 8 percent for 2016-17.

TOP ECONOMY NEWS 1. Gender parity to boost India's economic growth: IMF - Terming gender-gap in Indian job market as higher than most other countries, IMF pitched for greater investment in infrastructure and enhanced social spending to bring in larger number of women in labour force. As per a recent IMF study, India's GDP can expand by 27 percent if the number of women workers increases to the same level as that of men. This is much higher than the positive impact a 50-50 gender parity in workforce can have on many other economies. "The study refers to the GDP gain that would materialise if the labour force participation gap between men and women is closed. This gender gap in labour force participation is much larger in India than in most other countries," said Kalpana Kochhar, Deputy Director of IMF's Asia and Pacific Department.

"Specifically, this gender gap is around 50 percent in India, compared with an average gap of 12 percent in OECD countries. Since the gap is much larger in India, the economic gain from closing it is much larger compared with other countries," Kochhar told PTI in an interview. She further said that delivering such a large increase in women participation will require work along many dimensions, including increased labour market flexibility, greater investment in infrastructure, and enhanced social spending.

2. India's food industry to be worth $65.4 bn by 2018: Report - Country's food industry is expected to grow 11 percent annually to reach USD 65.4 billion (about Rs 4 lakh crore) by 2018, according to a research report. The industry is presently valued at USD 39.71 billion (Rs 2,476.8 billion), the joint report by IIM-Calcutta and Academic Foundation said. "Food and grocery constitute a substantial part of India's consumption accounting for around 31 percent of the consumption basket," the report said. In contrast, consumers in other countries spend a much lower proportion of their income on food and grocery. While US spends 9 percent, Brazil and China spend 17 percent and 25 percent respectively on food and grocery, the report said.

Food is also the largest segment in India's retail sector, which was valued at USD 490 billion in 2013, it added. "India's retail market is expected to grow to USD 865 billion by 2023, which is presently valued at USD 490 billion," the report stated. The share of modern retail is expected to rise to 24 percent of the total retail market from 8 percent currently, it added.

3. India GDP to exceed 7.3% this fiscal, to go higher: Arun Jaitley - India's economic growth was expected to exceed 7.3 per cent in the current fiscal year and go higher still in the next one, the country's finance minister said on Monday. "(The) Indian economy is expected to grow better than 7.3 per cent - the level achieved last fiscal year - and at an even higher level next year," Arun Jaitley told an investment forum in Dubai. The growth would come despite Jaitley noting that rural demand had been impacted by lower rains in the last two years.

4. Indo-Aus FTA on track to be sealed by year end: Minister - The Indo-Australia free trade agreement is on track to be sealed by the end of the year but "issues" in India could impact plans for realising the deal, Trade Minister Andrew Robb has said. The minister's latest remark came at a time when Prime Minister Narendra Modi is set to meet his Australian counterpart Malcolm Turnbull and discuss the trade pact on the sidelines of the G20 summit in Turkey today. The trade pact is likely to dominate talks between both the leaders who last night announced the completion of all the formalities for India-Australia Civil Nuclear Agreement.

Robb, buoyed by the reassurances he has received during his visits to India throughout the year, said Australia was on track to finalise the Free Trade Agreement by year end. "We have got a programme which will see us complete it... and with India in particular they have lots of other issues that can interfere with our programme. But at the moment we are still on track to complete a Free Trade Agreement by the end of the year," Robb said as he did not elaborate what issues he was referring to.

5. India's economy can hit $10 trillion-mark in over two decades, says Pranab Mukherjee - Asserting that the Indian economy has shown resilience in the face of challenging global trends, President Pranab Mukherjee today said it has the potential to attain a size of $10 trillion over the next two decades.Inaugurating the 35th India International Trade Fair (IITF) 2015 here at Pragati Maidan, he said there was a need to provide impetus to domestic manufacturing, and 'Make in India' campaign along with focus on Asia, Africa and Latin America as newer export markets will help sustain the challenges from the external sector."We are a $2.1 trillion economy and have the potential to be a $10 trillion economy over the next two decades provided we are able to give fillip to manufacturing and innovation," Mukherjee said."Our economy has admittedly withstood the challenging global economic scenario of the past few years. Despite the economic slowdown afflicting major economies in the world, India has remained largely insulated," he said. Barring a below 5 percent growth in one year (2012-13), India's economy has shown resilience, the President said.Mukherjee said that the economic scenario is again looking up, with 7.2 percent economic growth in 2014-15."It is expected to improve further as other macro economic indicators show substantial improvement," he said.

Inflation is within control and industrial performance is also showing signs of revival, he said adding fiscal consolidation measures are in place and India should be able to meet the target of three percent fiscal deficit by 2017-18.

6. India for global efforts on return of illicit overseas funds - Government will soon bring a new law on public procurement to check corruption and domestic black money, Prime Minister Narendra Modi said today while seeking greater global cooperation for return of illicit money stashed abroad. He also said that the barriers of excessive banking secrecy must be removed and all countries should implement a Common Reporting Standard based on Automatic Exchange of Tax Information for better cooperation on such matters.

7. NCAER lowers GDP forecast to 7.4% for FY'16 - Economic think tank NCAER today marginally lowered GDP forecast at 7.4 per cent because of slowdown in agriculture due to deficient monsoon. "This marginal fall is due to the anticipated slowdown in the agricultural sector. Industrial growth continues to gather strength while the outlook for the services remains mixed," National Council of Applied Economic Research (NCAER) said in a statement. n August, it had projected economic growth at 7.5 per cent for the current fiscal.The Finance Ministry has pegged the growth rate for the financial year 2015-16 at around 8.1-8.5 per cent which now looks difficult to achieve as the growth in the first quarter worked out to be only 7 per cent. It further said, the overall demand remains sluggish because of weak external demand and dampened rural demand, while investment shows weak signs of revival.

8. Low oil prices favoured Indian economy: Jaitley - Low oil prices have created a favourable environment for the Indian economy as it helped to absorb the loss faced by oil companies and kept inflation under control, Finance Minister Arun Jaitley said. Jaitley said that low oil prices also enabled the government to rationalise subsidies. "It has enabled us to absorb the loss that our own oil companies were facing because of future purchases. It has also kept inflation under control, which, in turn, has helped the Reserve Bank to ease up the rates. "It has also enabled us to increase the cess around fuel which has been diverted for infrastructure creation," he said told reporters during a press briefing.

9. Exports fall 17.53% in October; trade deficit narrows - Contracting for the 11th month in a row, India's merchandise exports fell 17.53 per cent in October to $21.35 billion, mainly due to a steep fall in shipments of petroleum products, iron ore and engineering, amid a broader

demand slowdown. The imports too shrank an annual 21.15 per cent to $31.12 billion in October, narrowing the trade gap to $9.76 billion, from $13.57 billion in the same month last year. Exports in October 2014 were valued at $25.89 billion. Gold imports during the month under review showed a sharp decline of 59.5 per cent at $1.70 billion. The cumulative exports during April-October this fiscal came down by 17.62 per cent to $154.29 billion as against $187.2 billion in the same period last year, according to data released by the Commerce Ministry. The trade deficit during the first seven months of the current fiscal has shrunk to $77.76 billion as against $86.26 billion last fiscal.

10. Gold imports dip 59.5% to $1.7 bn in October - Gold imports plunged by 59.5 percent to USD 1.7 billion in October which will help curb the country's Current Account Deficit. The sliding prices of the yellow metal is one of the reasons for a dip in imports. The prices are declining in both global and domestic markets. The gold imports stood at USD 4.20 billion in October 2014. The contraction in imports helped in narrowing the trade deficit to USD 9.76 billion in October, lowest since February. It was USD 6.85 billion in that month. This year, the imports of the yellow metal were up 62.2 percent and 140 percent in July and August, respectively. In September, the inward shipments declined by 45.6 percent. India is the largest importer of gold in the world. The imports mainly cater to the demand of jewellery industry. In 2014-15, gold was the third largest commodity imported in India after crude oil and electronic items. During that fiscal, the country's imports stood at USD 34.32 billion. The CAD in 2014-15 shrank to 1.3 percent of GDP from 1.7 percent in 2013-14.

11. October trade deficit narrows to lowest in eight months - India's trade deficit narrowed in October to its lowest since March, largely due to low gold imports and a faint pickup in non-oil exports. Meanwhile, non-oil-non-gold imports rose further although the pace of sequential growth softened a tad. Interestingly, the recent improvement in NONG imports is skewed more towards consumer goods like transport equipment and electronics, than investment related project goods or machine tools,reflecting the mix in India's growth recovery.

"Trade data supports our benign outlook on the external balance. We expect the CAD to be contained at 1 per cent of GDP this year and be fully funded by FDI flows," HSBC said in its report.

12. Rebuffing critics, FM Arun Jaitley goes for growth, reform - Finance Minister Arun Jaitley rebuffed Prime Minister Narendra Modi's critics on Tuesday and challenged the opposition to back a crucial tax reform, pledging also to put investments before budget savings

to drive growth in Asia's No.3 economy. Jaitley, in an interview with Reuters, brushed aside senior leaders in Modi's ruling nationalist party who rebelled after a heavy election defeat this month in Bihar, the country's third most populous state. "People must have a sense of responsibility when they speak," he said over breakfast at his hotel in Dubai, where he was on a visit to attract investments from Middle Eastern sovereign wealth funds that would help drive growth.The setback in Bihar dealt a blow to Modi's prestige after he campaigned actively in the state, and has emboldened his opponents in Parliament who have used their control of the Upper House to delay his economic reform agenda. Jaitley said the government would prefer to use buoyant tax receipts to fund extra infrastructure spending than to slash its borrowing target for the current fiscal year that runs to March 2016.

13. UBS sees RBI cutting rates again by 25 basis points by end-FY16 - Even as the price indices have moved up in recent months, Swiss brokerage UBS expects the same to fall during the second half and expects RBI to cut the repo rate again by 25 basis points in this fiscal and 50 basis points next year. "We reiterate that 75 basis points more repo rate cuts are likely -- 25 basis points by end-FY16, another 50 basis points in FY17, versus no cuts expected by the street over the same period," the brokerage said in a report.

14. Infrastructure

project budgets may exclude land cost for faster clearances - The

government could soon give the go-ahead to excluding the cost of land while computing the total cost of infrastructure projects, a measure that will allow more ministries to clear their own projects without going through the time-consuming process of seeking the approval of the Cabinet Committee on Economic Affairs. All infrastructure projects costing over Rs 1,000 crore have to be approved by the CCEA and given the high cost of land, many projects will remain below the threshold if this component is not included in the project cost, officials said.

"The Prime Minister's Office has supported the proposal to exclude the land cost from total project cost. We are expecting to get the Cabinet's approval soon," said a senior official of the road transport and highways ministry, which has moved the proposal. The land cost makes up as much as 40% of the project cost in many cases, according to officials, who said the proposal will benefit the ministries of urban development and railways as well. To implement the proposal, the government will have to amend the transaction of business rules for the Cabinet Committee on Economic Affairs.

15. Oil

& gas block auction policy to be ready by FY16: Pradhan - Government expects to

finalise the new policy for auction of oil and gas blocks during the ongoing financial year, Oil

Minister Dharmendra Pradhan said. "We have brought this consultation paper and suggestions will come in by November 30. We will make the policy after considering all the views and take it to the Cabinet. It will be our endeavour to make the policy during this financial year only," Pradhan told reporters on the sidelines of Bio-Energy Summit 2015 organised by CII here. Oil Ministry had issued a paper on new fiscal and contractual regime for award of hydrocarbon acreages with a view to revive investor interest in oil and gas exploration by simplifying rules.

It proposes to free natural gas pricing as well as replace the controversial Production Sharing Contract (PSC) with simpler revenue-sharing regime for all future field auctions in the backdrop of low gas prices not attracting investors in exploration and production sector.

16. Narendra Modi understands importance of private sector: US Senator - Highly critical of Nehruvian socialist democracy, a top US Senator has praised the free market economy push of Prime Minister Narendra Modi observing that he understands the importance of private sector.“I think, the new Prime Minister is trying to move in a different direction and realises the wisdom and importance of private sector. Unfortunately we have got a President who is not convinced of that in this country,” Republican Senator Mitch McConnell said in his remarks during the launch of Republican Hindu Coalition. We watch with great interest as India seems to be putting aside some of its socialists rules. Nehru was a great Indian, a great person, but his tendency to lean towards the Soviet Union and pick up some of their bad habits lingered India for long time,” McConnell, the Senate Majority Leader, said. Advocating the need for a stronger Indo-US ties, Pete Sessions, Chairman of House Rules Committee, said under Modi’s tenure there is much greater realisation of strengthening the ties between the two largest democracies of the world.

17. Government likely to pay 45 rupees/T incentive to cane growers - India will, for the first time, pay sugarcane farmers in part for produce that they sell to money-losing mills, government sources said on Tuesday after a cabinet meeting chaired by Prime Minister Narendra Modi. Modi's government would directly pay farmers 45 Indian rupees for every tonne of cane produced, leaving mills to bear the rest of nearly 98 percent of the cost, one of the sources said, aimed at wooing politically influential growers and helping sugar companies recovering from a global glut. The sources did not wish to be identified as the government is soon expected to announce the cabinet decision. Shares of Indian sugar companies have been rising on hopes of government help and stocks of Shree Renuka Sugars, Simbhaoli Sugars and Bannari Amman Sugars shot up further on Wednesday.

18. Foreign Investment Promotion Board clears 6 FDI proposals worth Rs 1,810 crore The Foreign Investment Promotion Board (FIPB) has cleared six FDI proposals envisaging foreign investment of Rs 1,810 crore, including that of IIFL Holdings."Based on the recommendations of FIPB in its meeting held on October 30, 2015, the government has approved six proposals of Foreign Direct Investment amounting to Rs 1,810.25 crore," a Finance Ministry statement said today. The board has approved the proposal of IIFL Holdings, a non-banking finance company, to increase foreign equity from 50.16 per cent to 80 per cent by issuing shares to FIIs. This proposal is expected to result in foreign investment of Rs 1,800 crore.Moreover, FIPB has also approved the proposals of Agile Electric Sub Assembly, Sharekhan Ltd and SeQuent Scientific. These proposals, however, will not involve any inflow of foreign investment and have more to do with restructuring of of businesses.

19. Modi government clears big-ticket projects worth 10,000 crore - In a spate of decisions underlining the government's reform drive, union cabinet has approved 10% stake sale in Coal India, initial public offer of Cochin Shipyards, and approved 3% interest subsidy for exports.

The cabinet also empowered roads ministry to revive 34 stalled projects by appropriate measure where delay is not because of the builder and cleared big-ticket railway projects adding up to over Rs 8,000 crore. For the first time, cabinet also approved direct payment of a production subsidy to the farmers. The union cabinet also allowed separation of land and construction cost of road projects to empower the highways ministry to clear more projects without going to cabinet where the cost escalation is because of higher compensation for land.

20. Africa proving to be favourable for Indian investment: Official - : Africa is proving to be a favourable market for Indian investment, particularly with more participation from the private sector, a senior Indian official has said. Shailesh Nathan, Small and Medium Business Development Chamber of India's Regional Director in a statement said that even though the figures may seem not so impressive from the mid 1990s until now, the growth rate of this investment segment is very high. His statement comes following the Third India Africa Forum Summit held in New Delhi in October where Prime Minister Modi reiterated that his government's interest in Africa was driven by the aim of empowerment, capacity building, human resource development, access to Indian market, and support for Indian investments in Africa. "The African market cannot be overlooked, he said adding that more and more private sector to private sector trade is happening even though the infrastructure may not be as good as when compared with China," Nathan said.

21. Modi govt sets ball rolling, to reboot 34 stuck road plans worth Rs 35,000 crore - The Narendra Modi-led NDA government has set the ball rolling for reviving 34 stuck road projects worth at least Rs 35,000 crore. The government has authorised National Highways Authority of India to work on the revival of these 34 projects on project-by-project basis. As per the decision, NHAI will pay rationalized compensation to concessionaires in case of delays on government's part. The NHAI will now call the concessionaire and the bankers to sort out the issues and would help in releasing of more funds. "We'll extend the concession agreements of investors in case the delay in project is not on their part. Banks would be taken on board and we'll try to get funds released for projects," NHAI Chairman Raghav Chandra told ET. 22. With moves like Coal India stake sale and exports subsidy, Modi sarkar sets the ball rolling on reforms - The government announced a spate of policy changes on Wednesday, maintaining the pace of its hectic reform drive after the Bihar elections. The Cabinet Committee on Economic Affairs approved a 10 per cent stake sale in Coal India Ltd, an initial public offering at Cochin Shipyard and a five-year interest subsidy scheme to boost sagging exports. CCEA also empowered the National Highways Authority of India to revive 34 stalled projects by compensating developers for delays not attributable to them by pushing forward the toll period. The move is aimed at freeing up projects worth Rs 35,000 crore. CCEA also cleared big-ticket railway projects adding up to nearly Rs 10,000 crore of investment and, for the first time, approved direct payment of a sugarcane production subsidy to farmers. Land costs will not be included in the cost of road projects, which gives the highways ministry leeway to clear more projects without having to approach the Cabinet. All these decisions will give a "huge boost to economic growth, to growth of exports, revival of stalled projects and bring back the momentum in the economy which this government has been striving for over the past 18 months", Coal & Power Minister Piyush Goyal said at a news briefing.

23. Govt fixes maximum marketing margin for natural gas -The government today fixed a maximum marketing margin that firms like Reliance Industries can charge on selling natural gas to fertiliser and LPG plants at Rs 200, a 12.5 per cent cut from current charge of Rs 225.

“The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval for determination of marketing margin for supply of domestic gas to urea and LPG producers,” an official statement said here.The new rate would be “fixed on non-discretionary basis,” it said, adding the decision is likely to enhance transparency and provide an element of certainty for future investments in gas infrastructure sector. Currently, Reliance Industries charges USD 0.135 per million British thermal unit as marketing margin on its eastern offshore KG-D6 gas.

This is over an above the current gas selling price of USD 4.24 per mmBtu. 24. Finance Minister Arun Jaitley meets Rahul Gandhi - Finance Minister Arun Jaitley today met Congress vice president Rahul Gandhi. There was no word from the Congress on what was discussed at the meeting held a week before the winter session of Parliament. Arun Jaitley has been meeting leaders of parties across the divide in recent days to extend invitation for his daughter’s wedding next month. He has repeatedly said in the last few days that he would reach out to Congress and Gandhi to seek his help to clear the Goods and Services Tax Bill, the government’s big reform measure that is stuck in Parliament on stiff opposition from Congress. Party sources said Jaitley’s meeting with Rahul Gandhi was welcome but the government should speak with the leaders of the Congress party in the two houses of Parliament –Mallikarjun Kharge in the Lok Sabha and Ghulam Nabi Azad in the Rajya Sabha–on the issue of GST. 25. CCEA decisions to revive economy, boost investor mood: CII - The decisions taken by the government today such as the disinvestment in Coal India will help in reviving the economy and boosting investors' sentiment, industry body CII said. It said that the Cabinet Committee on Economic Affairs has taken some timely decisions. "The Cabinet decisions are targeted at revival of the economy and would go a long way towards boosting investor sentiments," CII President Sumit Mazumder said in a statement. Disinvestment in Coal India Ltd, 3 percent interest subsidy for exporters, and clearances to road and rail projects are all steps in the right direction, he said. "Initial public offering of Cochin Shipyard is a major first step towards unlocking the port sector," he added. Mazumder said that excluding land costs from highway projects requiring Cabinet approval would help fast-track road project clearances. "The relief offered to concessionaires of roads and highways projects would go a long way towards alleviating financial distress and reviving stalled projects," he added. On the interest subvention scheme, he said the decision would boost labour intensive exports and make Indian exports more competitive. The decision of CCEA on sugarcane would help alleviate distress of farmers as well as sugar mills, CII said.

26. US trade delegation to visit India next year to boost trade ties - The sparsely populated North Dakota State of the US will send its first ever trade mission to India next year as part of an effort to attract investment and boost bilateral trade ties."A high-level North Dakotan Trade Mission to India is being planned in February-March 2016, which would probably be led either

by Governor of North Dakota Jack Dalrymple or Lt Governor Drew Wrigley," Ausaf Sayeed,

Consul General of India in Chicago, said after a visit to the State. During his visit early this month, Sayeed met Drew Wringley, chairman of North Dakota Trade Office, and briefed him on the positive economic climate in India and the series of initiatives that are being undertaken by the new Indian government towards ease of doing business.

27. Can handle financial implications of Pay Panel: FinMin -The Finance Ministry today said it can "handle" financial implications of the recommendations of the Seventh Pay Commission and will work out modalities for implementation of the suggestions. "There are challenges, we will face that... It's not going to impact this fiscal. By the time it is implemented, it goes into next financial year and our growth prospects are good, our economy is pretty robust, we will handle this," Finance Secretary Ratan Watal told reporters here. In a big bonanza to central employees and pensioners, the seventh Pay Commission on Thursday recommended a 23.55 percent increase in salary, allowances and pension along with a virtual one-rank-one-pension for civilians, involving an additional outgo of Rs 1.02 lakh crore a year.

Watal also said the Finance Ministry would look at how to channelise the increase in money in the hands of people to long-term saving instruments.

28. Govt announces interest equalisation scheme to boost exports - In a bid to arrest the decline in exports , the Central government has announced an interest equalisation scheme on pre and post shipment rupee export credit with effect from 1st April, 2015 for five years.The rate of interest equalisation would be 3 per cent. The scheme would be available to all exports made by small and medium scale enterprises across 416 tariff lines. Merchant exporters will not be eligible for the sop. The scheme covers mostly labour intensive and employment generating sectors like processed agriculture/food items, handicrafts, handmade carpet (including silk), handloom products, coir and coir manufactures, jute raw and yarn, readymade garments etc.

Fabrics of all types, toys, sports goods, paper and stationary, cosmetics and toiletries, leather goods and footwear, ceramics and allied products, glass and glassware are also included.

Medical and scientific instruments, optical frames, lenses, sunglasses, auto components industrial machinery, electrical and engineering items, manufactured by SMEs are also covered.

According to an official press release, the scheme is expected to cost the government at least Rs 2,500 crore annually. The actual financial outgo, though, would depend on the level of exports and the claims filed by the exporters with the banks.

29. Drop in public and private investments top concerns: Rajan - The Reserve Bank of India chief Raghuram Rajan said on Friday that a drop in public and private investments were

the main concerns he had about the country's economic growth. Weak capital investment has been a key factor behind India's struggle to realise its growth potential and with factories running 30 percent below capacity, private companies are in little rush to make fresh investments. "On the growth front, the central concern is with investments," said Rajan, who was speaking at a business event in Hong Kong. "Private investment has fallen back a bit and so has public investment." The RBI has cut its growth forecast for the current fiscal year to 7.4 percent from 7.6 percent previously, well below the government's target of 8 to 8.5 percent, but still faster than China. Despite the slowdown in growth and investments, Rajan said strong foreign direct investment and some traction in infrastructure development may encourage private investments. Rajan, who was speaking at a business event in Hong Kong, has said the central bank expects to meet its 6 percent target for retail inflation - which the RBI tracks to set interest rates - for January and will focus on its 5 percent target for March 2017. RBI cut the benchmark policy rate by a half percentage point to 6.75 percent in September, after months of pleading by government leaders and industrial groups for more stimulus to stoke growth.

TOP CORPORATE NEWS 1. Tata Steel wants to sell UK plant: Report - Tata Steel wants to sell its plant in northern England to give it the "best chance of survival" as the UK industry has been struggling under a flood of cheap steel being pumped in from China, which has depressed prices. According to The Sunday Times, the Indian steel giant hopes the sale of its Scunthorpe plant in north Lincolnshire will take place by April next year. The firm is weighing up the closure of its long-products arm, of which Scunthorpe forms the core. A plan to sell it to US industrial tycoon Gary Klesch collapsed in the summer, the newspaper had earlier reported. Various bidders are believed to be interested and there is a possibility of a management buyout as well. The UK's Department for Business is understood to be trying to attract buyers with a promise of long-term supply contracts, including a deal to feed Network Rail with steel for its multi-billion-pound overhaul of the railways.

2. British NHS-led consortium to invest Rs 10K-cr in hospitals - Indo-UK Healthcare, a consortium of Indo-British promoters, has committed to invest over Rs 10,000 crore to bring the famed NHS Hospitals of England, apart from other leading English educational institutions and universities into the country over the next few years. The initiative is supported by Healthcare UK, a joint initiative of the British department of health, UK Trade and Investment and the National Health Service England. Under the agreement signed in the presence of

visiting Prime Minister Narendra Modi and his host David Cameron, the first hospital, King's College Hospital, England will come up in New Chandigarh at an investment of 100 million pounds or Rs 1,000 crore, a statement from Indo-UK Healthcare said. However, it did not say when the first hospital will become functional. "Each of the 11 Indo-UK Institutes of Health will entail a foreign direct investment of around Rs 1,000 crore across 11 states and will include multispecialty NHS-branded hospital for healthcare delivery, clinical support services, NHS e-health, staff accommodation, a medical college, a nursing college, R&D facilities, medical manufacturing facilities and a medical mall," the statement said.

3. Jindal Steel to cut costs after Q2 loss - Jindal Steel and Power Ltd said it plans to cut costs and divest some non-core assets, as it swung to a second-quarter loss due to a drop in iron and steel sales and a one-time charge linked to an overseas unit. Indian steelmakers including Tata Steel Ltd, JSW Steel Ltd and Jindal Steel have seen sales dented in the past few quarters due to rising imports from China, Japan, South Korea and Russia. China makes nearly half the world's 1.6 billion tonnes of steel. With growth slowing at home, it is expected to export a record 100 million tonnes to world markets this year to help address its spare steel-making capacity. India imposed a 20 percent import tax on some steel products in September to mitigate the damage to domestic companies. Jindal Steel and Power registered a consolidated loss of Rs 6.2 billion in the September quarter, compared with a profit of Rs 4.4 billion in the year-ago period, the company said in a statement late on Saturday.

4. Rajesh Exports Q2 net profit rises 75% to nearly Rs 280 crore - Jewellery exporter and retailer Rajesh Exports Ltd on Monday reported a 75.15% jump in profit at Rs 279.83 crore for the second quarter ended September 30, on the account of higher sales.The company had clocked a net profit of Rs 159.76 crore during the same period last year. Its net sales reported over fourfold increase to Rs 44,319.65 crore during the quarter under review as against net sales of Rs 10,959.42 crore in the same period last fiscal.

5. DLF gets CCI approval for Rs 1,990 crore deal with GIC - India's largest realty firm DLF on Monday said it has got fair trade regulator CCI's approval for the joint venture with Singapore's sovereign wealth fund GIC, which is investing Rs 1,990 crore in two projects here.The realty firm would use this fund to boost cash flow and reduce debt, which stood at Rs 22,520 crore as on September 30.DLF had sold in September about 50% stake each in two upcoming projects in the national capital to GIC. On September 2, DLF had announced that its arm DLF Home Developers and GIC have entered into a joint venture for two upcoming projects located in Central Delhi. "GIC will invest approximately Rs 1,990 crore". In a

regulatory filing, DLF informed the "Competition Commission of India vide its letter dated November 12 has communicated that the Commission in its meeting held in November 10, 2015 considered and approved the proposed combination in terms of sub-section of the Section 31 of the Competition Act, 2002".

6. Coal India to enhance washing capacity by 112 mt - Coal India , the government-owned near-monopolist in the sector, is to build 15 washeries across its various subsidiaries, through private companies under a build and operate model.CIL currently owns 17 washeries, five for coking coal and 12 for non-coking. Of the new ones, six are to handle coking coal and the other nine the other. The cumulative washing capacity is estimated at 112 million tonnes, said senior CIL officials.The coking washeries would be awarded by Bharat Coking Coal, the combined capacity being 18.6 mt. The non-coking ones would be distributed among Mahanadi Coal, South Eastern Coal and Central Collieries."We are expecting three coking coal washeries to be operational by the end of next year," said a senior CIL official.

7. India can become engine of global economic growth: Anil Agarwal - Pinning hopes on Narendra Modi-led government for policy reforms to attract investment, mining baron Anil Agarwal today said India has the potential to become the "engine of global economic growth".

"As the world is changing the Indian government ... should move towards faster decision making, creating level playing field for the investment. If anyone can help India realise the great potential it is our Prime Minister Modi and his government," Vedanta Resources Chief Anil Agarwal said on the sidelines of the global CEOs meet here. Stressing that India needs at least 10 more companies on par with the natural resources giant Vedanta, Agarwal said companies who want to invest in India can raise capital in the UK to invest in India's growth story. India has all the potential resources and talent to become the engine of global economic growth," he said and added Indian companies are investing up to USD 600 million every year and creating jobs and contributing to the British economy.

8. Telcos line up Rs 34,000-cr capex for 4G expansion - Large telecom operators plan to spend Rs 34,000 crore in the current financial year to roll out fourth-generation technology networks and boost their existing one, to address call drops. Airtel, which had earlier said it would spend $3 billion for its India and global operations in FY16, recently said it might end up investing $200-$400 million totalling a capex of $3.2-3.4 billion because of accelerated 3G and 4G expansion in India. Idea Cellular, the third largest operator, has already raised its guidance from Rs 5,000-5,500 crore to Rs 6,000-6,500 crore for the current financial year, out

of which half has already been spent. Vodafone, the second largest telecom service provider, also said it would be stepping up investments. "In FY15, we invested Rs 8,500 crore on capex and rolled out 23,000 sites, taking our overall network footprint to 131,000 sites. We expect to make similar investments in capex this fiscal as well," said a Vodafone India spokesperson.

9. Reliance Infrastructure to sell 49% stake in Mumbai discom to PSP Investments for Rs 3,500 crore - Anil Ambani-led Reliance Infrastructure has signed a pact to sell a 49 per cent stake in its Mumbai electricity business to the Public Sector Pension Investment Board of Canada. The deal pegs the enterprise value of the division at Rs 15,000 crore, according people familiar with the contours of the transaction.Reliance Infrastructure did not disclose the size of the deal but one of those cited above told ET that the Canadian fund will pay around Rs 3,500 crore for the stake, if the deal takes place. The Mumbai circle licence, along with the generation, transmission and distribution asset, will be transferred to a subsidiary, which will then offload the stake. Around Rs 8,000 crore of debt will also be transferred to the subsidiary, the person said. This deal will help Reliance Infra substantially reduce its debt by Rs 11,500 crore. The deal is subject to approvals but should be closed by March," said an executive involved in the transaction. The deal will mark the first time a foreign fund is investing in a power distribution business in India. The development comes at a time when the government has initiated its ambitious Ujwal Discom Assurance Yojana to erase losses at state run power distribution companies to revive the sector.

10. NEIL plans to increase its turnover to Rs 5,000 cr by 2020 - Country's largest bearings manufacturer and leading exporter National Engineering Industries Ltd is planning to more than treble its turnover and increase export by the year 2020. The company expects to get 35 percent of turnover from export by 2020 and increase its growth rate. The company's current turnover is Rs 1,500 crore. "We are concentrating on export as the automotive market in India is tough. The company expects 35 percent turnover from export by 2020, which in present is 25 percent", Rohit Saboo, President and CEO of NEIL, told PTI today. He said that the company recently got Deming Grand Prize- 2015, which was of huge significance as it recognises the company for the contribution in the field of Total Quality Management. "This not only puts India but also Rajasthan on the world map. We are the first company from Rajasthan and also the first bearing company in the world to get this award. With this recognition, the world had become our market", said Saboo, who received the award on November 11 in Japan.

11.Videocon to raise Rs 641 crore through FCCBs - Videocon Industries will raise USD

97.20 million through five year Foreign Currency Convertible Bonds due in 2020. In a BSE filing, Videocon said it has "launched issue of Foreign Currency Convertible Bonds convertible into ordinary equity shares, in exchange of a part of outstanding amount of existing USD 200,000,000 6.75 percent." It further said: "Convertible Bonds due 2015, subject to the acceptance of the exchange offer by the requisite majority of the bond holders and subject to other statutory approvals." Videocon said it will "make an application to the Singapore Exchange Securities Trading Ltd for the Bonds to be listed; and for in-principle approval for the shares to be issued upon conversion of the Bonds to be listed on the National Stock Exchange of India Ltd and the BSE Ltd." 12. Expect oil production to rise in FY16: ONGC - ONGC reported a weak set of second quarter earnings with net profit declining 31 percent to Rs 4,842 crore and revenue falling 9.4 percent to Rs 20,679 crore. AK Srinivasan, Director-Finance said that realizations were lower in the Q2 at USD 49 per barrel. The company loses close to USD 530 crore every year due to fall in dollar, he added. He expects oil production to cross 26 million this year. Last financial year, the company clocked in production of 25.94 million. However, gas production will be lower than the target and is expected to improve only in FY17, he said.

13. Western Coalfields lines up Rs 6,280 crore investment by FY20 - Western Coalfields, a Coal India arm, has finalised a capital investment plan of a whopping Rs 6,280 crore till 2019-20 in a phased manner. The major chunk of investment, which works out to approximately Rs 3,486 crore and stretches from 2015-16 to 2019-20, will be on land acquisition, followed by Rs 2,032 crore on installation of plant and machinery. WCL has also marked another Rs 242 crore for exploration, Rajiv Ranjan Mishra, Chairman and Managing Director said. According to revised estimates, about Rs 850 crore are being spent on land acquisition during the current fiscal for opening new mines and Rs 350 crore on plant and machinery this year, Mishra, who completed one year at WCL recently, told PTI. WCL, he said, is already in a turnaround mode, as it posted an operating profit of Rs 115.61 crore last financial year after running up losses for three consecutive years from 2011-12 to 2013-14.

14. BSNL reports operating profit of Rs 672 crore for FY15 - Reversing the trend, state-run BSNL today reported an operating profit of Rs 672 crore for the financial year 2015 on the back of fall in administrative costs and jump in revenues. The company had posted an operating loss of Rs 691 crore in the previous fiscal. BSNL Chairman and Managing Director Anupam Shrivastava said income from services increased by 4.16 per cent to Rs 27,242 crore in

2014-15, which is highest in comparison to the previous five years. Income from services stood at Rs 26,153 crore in 2013-14. "BSNL had bad results for the last few years, but in year 2014-15, it has been able to reverse the trend. Also it is a known fact that most of the telecom majors are having heavy debt burdens but it still continues to be relatively better, showing a low debt-equity ratio," Shrivastava said.

15. Apollo Tyres buys out Germany's Reifencom for euro 45.6 mn - Apollo Tyres has acquired Reifencom GmbH, one of the largest tyre distributors in Germany, for euro 45.6 million."The acquisition is a strategic fit in further growing our European business," Apollo Tyres Vice-Chairman and MD Neeraj Kanwar Monday said in a statement. It will enable the company to improve its mix of distribution channels in Germany and Europe and aid in increasing the visibility of Apollo and Vredestein tyres in the offline and especially the fast growing online retail space, he added. Reifencom GmbH has an online presence in six countries Germany, France, Italy, Austria, Switzerland and Denmark. In addition, it operates 37 stores and service centres across Germany. The success of Reifencom GmbH is attributed to its highly efficient logistics system, which ensures there is a guarantee of a high degree of availability of all kinds of tyres and rims, even during busy periods like spring and autumn.With an objective to provide world-class products and services, and that too, at very competitive prices, Reifencom GmbH procures tyres and rims from leading manufacturers, thereby ensuring a high-level of quality."It is our privilege to join hands with Apollo Tyres, where the team shares our passion for providing world-class products and customer service," Reifencom GmbH Managing Directors Olaf Sockel and Heiko Knigge said.

16. Asset quality pressure to continue, not worsen: M&M Fin - M&M Financial Service's second quarter saw worsening in asset quality with gross non-performing asset (NPA) rising to 9.4 percent as against 6.3 percent year-on-year. Ramesh Iyer, MD of the company says though the pressure will continue, but the asset situation will not worsen further. Iyer says that sales have been better during the festive season than in first two quarters of FY16. However, asset under managements saw a muted growth. Growth will pick-up with discounts and raise in sales volume, he adds.

17. Jewellery sales to add Rs 450 cr to topline in Q4FY16:Titan - Titan missed street expectations with net profit slipping 39.1 percent to Rs 145.39 crore and total income falling 25.5 percent to Rs 2,654 crore. However, Bhaskar Bhat, MD of the company says that product mix and cost initiatives aided growth in Q2. The company expects significant pick-up in sales

in the on-going festive season. Jewellery and premium watch segment has been better than gold business, Bhat added. Bhat says jewellery sales will contribute Rs 450 crore to the topline growth in fourth quarter of FY16.

18. No output in sight, Odisha CM to open Tata Steel plant - Tata Steel’s Kalinganagar project is some way off from rolling out steel as Odisha Chief Minister Naveen Patnaik is set to dedicate the plant to the state today. The blast furnace, sinter plant and steel melting shop for the first three million tonnes of the Kalinganagar project, all critical to steel making, are yet to receive clearance from the Odisha State Pollution Control Board. Only peripheral units like the captive power plant, coke plant and hot strip mill had received environmental clearance, officials said. It will take another three months for steel to be produced from the Kalinganagar complex. Though work on the blast furnace, sinter plant and steel melting shop was almost complete, it would take time for the customary pre-operation heating process and stabilisation of the units, they added. We have already started commissioning process of the coke plant and the hot strip mill according to the plan and the next in line is the blast furnace, sinter plant and steel melting shop. After all, the plants are successfully commissioned, trial production would commence. As soon as we come to this stage, appropriate disclosures would be made�, a company spokesperson stated.

19. HCL Technologies wins contract from Deutsche Bank -IT services firm HCL Technologies said on Tuesday it has signed an application development and maintenance contract with Deutsche Bank.The financial details of the deal were not disclosed.Under the terms of agreement, HCL will provide digital solutions, systems integration, product implementation and design, build and test new applications in addition to the ongoing application maintenance and support services, it said in a statement.

20. Dr Reddy's buys IPR for anti-coagulant drug for Rs 115 cr - Dr Reddy 's has completed the purchase of worldwide exclusive Intellectual Property Rights for Fondaparinux sodium, its generic anti-coagulant drug, from Australian partner Alchemia for USD 17.5 million. The company had earlier inked a term sheet for this transaction in September. Alchemia's shareholders approved the sale of Fondaparinux at the company's annual general meeting held on November 10, post which Dr Reddy's and Alchemia have executed a purchase and sale agreement, together with various patent assignment deeds, Dr Reddy's Laboratories said in a statement. "Alchemia has received USD 17.5 million from Dr Reddy's as consideration for the sale. The agreement is effective July, 2015," it added. Fondaparinux is a generic version of the

anticoagulant drug Arixtra, which is approved in the US and Europe for the treatment of deep vein thrombosis and pulmonary embolism .

21. Anil Ambani's defence dream blooms -Anil Ambani-controlled Reliance Group's efforts for a big play in defence - by acquiring stake in Pipavav Defence and Offshore Engineering Company - got a shot in the arm after it found an equity buyer for the electricity distribution business in Mumbai of Reliance Infrastructure. Canada's PSP Investments will acquire 49 per cent stake in Reliance Infrastructure's integrated power generation, transmission and distribution business in Mumbai and adjoining areas. This business will be carved out into a separate special purpose vehicle in which RInfra will own the controlling 51 per cent stake.

RInfra's Mumbai power business had revenues of Rs 7,700 crore in FY 2014/15. The consolidated revenue of RInfra stood at Rs 17,000 crore and net profits at Rs 1,300 crore. The PSP buy is expected to create liquidity of Rs 3,500 crore for RInfra. Using part of the cash, the company will go for an open offer to buy an additional 26 per cent stake in Pipavav Defence and Offshore Engineering Company.

22. BSNL reports Rs 8,234 crore net loss in FY15 - BSNL has reported a net loss of Rs 8,234 crore for 2014-15 against Rs 7,020 crore in 2013-14. BSNL's chairman and managing director Anupam Shrivastava ascribed the rise in net losses to asset depreciation being calculated according to the new Companies Act norms. He said the net loss would have been much less, at Rs 5,370 crore, if asset depreciation was calculated according to the old Companies Act. BSNL reported an operating profit of Rs 672 crore for the financial year under review, compared with an operating loss of Rs 691 crore in 2013-14. Income from services increased 4.16 per cent to Rs 27,242 crore in 2014-15. The figure was Rs 26,153 crore in the previous financial year.

"BSNL had bad financial results for the past few years, but in 2014-15, it was able to reverse the trend. It is a known fact that most of the telecom majors are having heavy debt burdens, but BSNL continues to be relatively better, showing a low debt equity ratio," said Shrivastava.

23. Jindal Stainless aims to cut debt by 64% - Jindal Stainless, part of the $19-billion OP Jindal group, aims to cut its Rs 8,580-crore of debt by 64 per cent, through operational and financial restructuring. This would be the third such in seven years. The aim is do so via improved cash flow, reduction in interest cost and operational efficiencies. Presently, the country’s largest stainless steel manufacturer, it has a factory each in Haryana and Odisha, with cumulative capacity of 1.6 million tonnes a year.“The business restructuring would bring down debt from Rs 8,580 crore at the end of March to Rs 3,080 crore, help us utilise idle capacity and

improve cash flows, through longer tenure of the restructured loan,� Rajiv Rajvanshi, its director, told this newspaper. The company had informed the BSE exchange last week that this Saturday would be the date of record for a Scheme of Arrangement that would involve, apart from JSL, subsidiaries Jindal Stainless Hisar, Jindal United Stainless, Jindal Coke and their creditors.

24. NTPC to benefit from UDAY, improved environment: Moody's - Moody's Investors Service said on Wednesday state-run NTPC will benefit from improving operating environment for India's power sector and revival scheme UDAY for debt-ridden distribution companies."The improving coal environment and proposed debt reduction program should boost the ability of offtakers to buy electricity, which will in turn increase NTPC's utilisation rates and incentive income," said Abhishek Tyagi, Moody's Vice President and Senior Analyst.Further, the government's sale of a 5 per cent stake in NTPC will not affect our assessment of the support for the company, adds Tyagi. The government will retain a 70 per cent stake and NTPC remains of strategic importance as India's largest coal-based generator, the agency said. According to a statement, Tyagi was speaking on the release of a new Moody's report titled 'NTPC Limited: FAQ on Coal Availability, State Distribution Companies Finances and Government Stake Sale' that addresses frequently asked questions by investors on some of these changes in the company's operating environment. Moody's report highlights several important developments that affect the credit profile of India's power sector over the past year.

25. Hero MotoCorp sells over 10 lakh units in festive period - Country's largest two-wheeler maker Hero MotoCorp has clocked over 10 lakh units in retail sales during the festive season this year. "Thanks to the phenomenal customer response to our range of products, including all the new launches, the 1 million unit landmark was achieved during the 35-day festive period starting with the Navratras," Hero MotoCorp Ltd said in a statement. This is a robust 11 percent growth over the corresponding period last year, it added. "Our two new scooters -- Maestro Edge and Duet -- have been blockbusters and there has also been phenomenal demand for the new Splendor PRO," the company said. These, along with the robust sales of Passion PRO and Glamour bikes, and the continuing popularity of Pleasure and Maestro scooters have resulted in this double digit growth, it added. "We are focused on taking this momentum forward as we look to drive growth in the rest of the year and beyond," the company said.

26. Rs 30k-cr realty debt at risk of high refinancing cost - Rating agency Crisil has warned that Rs 30,000 crore debt of the top 25 realtors is at the risk of higher refinancing cost amid a

continued slump in the realty space owing to high prices and dependence of the companies on high-return demanding private equity players. "An analysis of the top 25 realtors, comprising around 95 percent of the market capitalisation of the sector, shows that Rs 30,000 crore of their debt obligations will face high refinancing risks with demand in respective markets expected to be tepid over medium-term," Crisil said in a note today.

27. Govt to auction eight coal blocks in next round: Coal secy - The fourth round of coal mines auction will be notified on Friday, Coal Secretary Anil Swaroop told media. This time eight blocks will be auctioned, and due date for bids is fixed for December 31, Swaroop said.

"Commencement of sale of tender document will start from December 31 while the vesting order by the nominated authority to successful bidders will be issued by March 10," the secretary said. The government has already mobilised over Rs 3 lakh crore in the first three rounds of coal auction and allotment. "It has been decided to auction eight Schedule III coal mines earmarked for non-regulated sectors like, iron and steel, cement and captive power plants in the fourth tranche. The e-auction for these mines will be held from January 18 to January 22, 2016," Coal Secretary Anil Swarup said addressing the media here. the coal secreatry also said coal production for this fiscal is up 9 percent and has crossed the 300 MT mark.

28. Punj Lloyd bags two electrification contracts worth Rs 483 crore from NTPC Engineering major Punj Lloyd has bagged two rural electrification contracts worth Rs 483 crore from NTPC for Puri and Koraput districts of Odisha. These two contracts are awarded under Rajiv Gandhi Grameen Vidyutikaran Yojana of 12th Plan (2012-17), the company said in a press release on Thursday. According to the statement, the scope of work for these two projects includes supply and erection of rural electrification work, construction and augmentation of substation, installation of distribution transformers and connections to below poverty line consumers in the districts. The company bagged these projects shortly after it announced its debut in T&D with two orders for rural electrification by Power Grid Corporation of India Ltd. "Electrification of these districts will give much awaited development to the remote regions of Odisha and Punj Lloyd is proud to be involved in this transformation.

With this, Punj Lloyd will be executing four T&D orders with a cumulative value of about Rs 1,000 crore", C K Thakur, President & CEO Power, Punj Lloyd said.

29. See 20-25% revenue & 25% orderbook growth in FY16: NBCC - State-run NBCC reported a 12 percent increase in its consolidated net profit to Rs 68.28 crore for the quarter ended on September 30, on account of increase in revenue from operations. Detailing the

second quarter numbers and business outlook going forward Anoop Kumar Mittal, CMD, NBCC in an interview to CNBC-TV18 said, he expects 20-25 percent revenue growth, 18-20 percent bottomline growth and 25 percent orderbook growth in the current fiscal.

30. Reliance Group to develop 6000 MW solar park in Rajasthan - Billionaire Anil Ambani-led Reliance Group will develop a 6,000 megawatt Solar Power Park in Rajasthan, a plan that has potential to attract an investment of Rs 60,000 crore. "The Reliance Group has signed an MoU to develop Solar Park and Solar Projects of 6,000 MW capacity, spread over nearly 30,000 acres, over next six years, with a potential to attract investment of about Rs 60,000 crore in Rajasthan," Ambani said at the Resurgent Rajasthan Summit here. Ambani said his group has already made investments exceeding over Rs 7,000 crore, spread across solar power generation, telecom, roads, financial services and entertainment sectors in the State.

TOP BANKING AND FINANCIAL NEWS OF THE WEEK 1. Bank credit growth still lingers in H1 as debt market soars - Bank credit growth continued to disappoint during first half of the current fiscal with an annual growth of just 8.4 per cent at Rs 62.02 trillion, down 20 bps, as per Care Ratings. Debt market growth was, however, robust with debt issuances increasing 18.6 per cent. Reflecting the lingering pain of the manufacturing sector, which accounts for 42 per cent of bank credit, the demand remained negative yet again. Services come second at 23 per cent of the total and agriculture at third with a share of 13 per cent and personal loans 20 per cent. The decline in the services sector demand is mainly due to a steeper decline in loan demand from NBFCs which have been raised 16 per cent more funds from the debt market. This suggests a shift in sourcing funds for NBFCs from banks to the debt market where interest rates have moved downwards at a faster rate. For the first half, credit demand would have been much lower had it not been for the agriculture loans and personal loans segments. Out of the total Rs 62.02 trillion loan of the system in H1, food credit stood at Rs 1.03 trillion, up 3.6 per cent, while in the year-ago period demand grew by 15.6 per cent, while non-food credit 1.6 per cent to Rs 60.99 trillion, against 1.5 per cent pick-up in the year ago period.

2. PE investments in India touch $14 billion till October: Thornton - Private equity investment in India till October this year soared close to $ 14 billion, registering a steady growth over last year but the average deal size has come down, says a report by Grant Thornton. According to the assurance, tax and advisory firm, there were 863 private equity

deals worth $ 13.83 billion during January-October period, as against 497 such transactions worth $ 10 billion in the same period a year ago. The sharp rise in PE transactions was largely driven by sectors like IT & ITES, energy & natural resources, manufacturing, banking & financial services, telecom and pharma, which attracted large investments. Meanwhile, the October private equity deal tally saw a 73 per cent rise in investment volumes, but values declined by 40 per cent due to shrinking size. "Private equity investments are building up but the average deal size has come down by 20 per cent, perhaps as a large chunk of PE money has been invested in early-stage companies or start-ups," the report added.

3. India Inc's appetite for commercial papers decreasing amid fall in bank lending rates India Inc's reliance on commercial paper for short-term borrowings appears to be waning after banks eased their lending rates, leading to a rise in corporate loans. Total CP issuances fell to Rs 43,150 crore during the two weeks that ended on September 30, the lowest fortnightly amount in the past eight months and 16 per cent less than what they raised a year earlier. The focus of borrowing seems to be shifting to the banking channel. State Bank of India said its large corporate advances grew 22 per cent year-on-year to Rs 2.84 lakh crore at the end of September. Axis Bank's corporate lending grew 25 per cent to Rs 1.39 lakh crore. For almost a year, CPs remained the most preferred way for firms to raise short-term resources as banks were rigid about lowering lending rates. Top-rated entities raised funds directly from the market through CPs or corporate bonds at 7-9 per cent rate, while the lending rate for banks exceeded 10 per cent.Commercial papers are unsecured money market instruments and help corporate borrowers diversify their sources of shortterm funds. The outstanding size of the market was Rs 2,68,420 crore, with about onethird of the investment coming from banks.

4. Yes Bank plans to raise funds through green bond issue in London - Private sector lender Yes Bank today signed a memorandum of understanding with London Stock Exchange to collaborate on debt and equity issuances. The MoU with LSE coincides with Prime Minister Modi's trip to the United Kingdom. As part of the Agreement, the bank plans to list a Green Bond of up to $500m on London Stock Exchange by December 2016. Also, as part of its overall $1bn of equity capital raising plans, the bank may also potentially raise funds through the the listing of Global Depository Receipts. Rana Kapoor, Managing Director & CEO of Yes Bank said, "We will endeavour to improve the access to long term overseas funds for corporate in India, through capital markets in the UK particularly towards Green Infrastructure Financing, which is high on India's agenda. We also look forward to working with the LSE in establishing London as the leading centre for rupee denominated offshore capital raising."

5. Banks have $380 bn market opportunity in financial inclusion' - Banks can address an additional $380 billion market in annual revenues by targeting micro-enterprises and bringing unbanked and underbanked adults into the formal financial system, according to a report.Closing the small-business credit gap at average lending spreads and adding fee-based services could generate about $270 billion in additional revenue for banks, while including unbanked adults into the formal financial system could generate another $110 billion, said the report.

6. ICICI Bank to sell 6% stake in Pru Life for Rs 1,950 crore - ICICI Bank on Monday said it would sell a six per cent stake in its life insurance venture, ICICI Prudential Life Insurance, to Premji Invest and its affiliates, and Compassvale Investments Pte, a unit of Singapore-based Temasek, for Rs 1,950 crore. This deal values the life insurance company at Rs 32,500 crore, making it the highest valued private insurance company in the country. Of the six per cent stake, four per cent will be sold to Premji Invest, while balance will be sold to Compassvale Investments, an indirectly wholly-owned subsidiary of Temasek.

7. US private equity firm KKR acquires 60% stake in i-bank Avendus - Bulgebracket US private equity firm KKR has acquired a 60% stake in Avendus Capital through a combination of new shares and a secondary sale of stock by existing investors. The PE firm will increase its ownership to 70% shortly. Under the deal that's set to be announced on Tuesday, KKR will infuse about $70 million or Rs 450 crore in the company and another $35 million will be paid to exiting stakeholders. With this, the equity value of Avendus Capital will swell to $180 million or Rs 1,120 crore, said two people familiar with transaction.

8. Zarine Daruwala quits ICICI Bank to join Standard Chartered - ICICI Bank's head of corporate banking division Zarine Daruwala has quit the Mumbai based lender to join UK base Standard Chartered as its India CEO, two people familiar with the development said. Daruwala will be replaced by Vishakha Mulye who was on Monday designated as executive director at the bank, these people said. ICICI could not be immediately reached for comment. Daruwala has been with the bank since June 1989 working in different roles from corporate to rural banking and even mergers and acquisitions. She joins Standard Chartered at a time when the UK lender has been besieged by rising non performing loans from companies in India. Mulye, the present managing director and chief executive officer of ICICI Venture was CFO at ICICI Bank between 2005 and 2007.

9. India Inc's overseas investment down 21% at $2.3 bn in Oct - Direct investments by

Indian firms abroad fell 21 percent to USD 2.28 billion in October 2015 compared to the same month last year, according to RBI data. Indian companies had put in USD 2.88 billion in the form of outward foreign direct investment in October 2014. While in the preceding month of September 2015, the investment stood at USD 1.24 billion, as per the data. The investments were a mix of issuance of guarantees, loans and equity.

10. Payworld launches service to withdraw cash without going to ATM - Electronic processing platform Payworld announced on Tuesday it has launched the "Payworld Cash point", cash payout from Payworld retail points in areas where ATMs are not available or accessible. "This would also be helpful to the millions of people in rural and semi urban areas that have opened bank accounts under the Prime Minister's Jan DhanYojana and have debit cards but no access to an ATM machine in their neighbourhood," Payworld said in a statement here. Payworld has tied up with the State Bank of India to operate the scheme, it said.

11. Avendus-KKR deal reopens old trend: i-banks diversification - Just sealed Avendus-KKR deal reopens an old trend in the pure play investment banking sector, which was dominated by deal-makers, Nimesh Kampani, Vallabh Bansali, Hemendra Kothari and Uday Kotak till late 90s, who either exited the business or turned full-service financial players. While some of these pioneering biggies, Kothari and Bansali, quit the space after selling DSP Merrill Lynch to Merril Lynch in 2005 and Enam Securities to Axis Bank in 2010, respectively, Kotak and Kampani became full-service financial players with focus on credit business.Kotak has even entered into the banking sector. What was notable about them, however, was that these maverick i-bankers cut deals for cash-rich large business houses riding on their long relationship with the promoters.

12. RBI's Raghuram Rajan urges IMF to act against 'extreme' policies - Reserve Bank of India Governor Raghuram Rajan urged the International Monetary Fund on Monday to stop "sitting on the sidelines" and instead play an active role in questioning the easy money policies adopted by developed economies. Raghuram Rajan, a former chief economist of the IMF, said countries were putting these policies in place without consideration for the negative impact they have on the global economy. "Extreme" measures had steered volatile capital flows to emerging markets, while exchange rate intervention risked spurring competitive devaluations, he said in a speech ahead of a G20 summit in Turkey next month."The IMF has been sitting on the sidelines and applauding these kinds of policies right from when they have been initiated, and hasn't really questioned the value of these kinds of policies," he told a G20 consultation

meeting. We can do better," he said, calling on emerging markets to push back against such policies.

13 Bandhan Bank collects Rs 3,000-cr deposits in less than 3 months -Bandhan Bank, which commenced operations in August this year, has been able to collect deposits of more than Rs 3,000 crore in less than three months. The Kolkata-based private sector lender, the first instance of a microfinance entity transforming into a universal bank in the country, has roped in 5 lakh new customers.With the opening of a new branch in Odisha’s Bhubaneswar on Monday, the bank’s total number of branches at present stands at 566. The bank had started operations on August 23 with 501 branches across 24 states. Now, it operates across 27 states.“We had started the banking operations with a customer base of 74 lakh, and it has increased to 79 lakh in less than three months. Total number of accounts has increased to 1.60 crore. And during the period, the bank has collected deposits of over Rs 3,000 crore,” Bandhan Bank MD and CEO Chandra Shekhar Ghosh told FE. 14. India holds discussions with potential investors at Taskent International Investment Forum - India was among 560 foreign participants that included representatives, heads and managers of over 300 foreign companies, European nations, Korea, Germany, Poland, Japan, Kuwait, banks, investment funds, the Asian Development Bank, the World Bank, and the International Finance Corporation that participated in the International Investment Forum held in Uzbekistan capital of Tashkent on November 5-6. The Indian companies that included BHELBSE 0.31 % had fruitful participation at IIF and held discussions with members of the Government, heads of ministries and departments of Uzbekistan, official foreign delegations, executives of major foreign companies, investment funds and banks. Representatives of the Indian firms also visited certain regions of Uzbekistan where they were appraised of the favorable investment climate, which was offered to Indian business to Uzbekistan. In course of the first plenary session, the Forum's participants form India got familiar with the economic reforms strategy of Uzbekistan. Special attention of the Indian companies was drawn towards the structural transformation and diversification of the Uzbek economy for the period of 2015-2019.

15. State-run banks crack the whip on defaulters, loan recoveries climb - From Finance Minister Arun Jaitley to CLSA strategist Chris Wood, the pre-dominant worry is bad loans of state-run banks. But there is light at the end of the tunnel. Recovery from written-off loans is climbing at a fast clip. Bank of India and the State Bank of India led by Arundhati Bhattacharya are leading the way in getting the defaulters to pay up. They are armed with a new-found

freedom owing to the non-interference of political powers in their day-today business affairs.

Loan recoveries by banks rose 51% on quarter as lenders employed various methods including naming and shaming the defaulters through newspaper advertisements. Top 7 PSU banks have recovered Rs 1,845 crore by end of September quarter, compared with Rs 1,222 crore in the June quarter. For Bank of India it was Rs 799 crore from written-off accounts and for SBI it was Rs 627 crore. And Punjab National Bank recovered Rs 217 crore, data from the banks show. "Our loan recovery has improved significantly. We have focused on speeding up Sarfaesi action against defaulters, initiating wilful defaulter proceedings, taking symbolic possession of assets and conducting eauctions," Anant Upadhyay, GM, Recovery Division, Bank of India, said.

16. RBI restores ‘normalcy’ after staff leave trips settlements - The RBI has swung into action after a mass leave by central bank employees halted payment and RTGS settlements on Thursday morning. Government bond trading was also impacted in the first hour leading to spikes in short term rates by 65-70 basis points higher than the benchmark rate. RTGS, or Real Time Gross Settlement, a central payment mechanism for transactions, was not working when the markets opened for trading, dealers said. Overall, the RBI has ensured uninterrupted RTGS system for the day efficiently. This led to spikes in short-term rates as the inter-bank call money and collateralised borrowing and lending obligation, or CBLO, shot up to 7.40-7.45% against 6.75% — the repo or the rate at which banks borrow short-term funds from RBI. 17. RBI opens door for banking M&As, allows individuals to own more than 10% in banks - The Reserve Bank of India RBI has thrown open the doors for mergers and acquisitions in the banking industry by signaling that it is open to persons owning more than 10 percent stake in a bank. For the first time in decades the central bank has said that it could permit promoters, or investors to own more than 10 per cent if the applicant meets certain conditions including if `it is in public interest' and in the `desirability of diversified ownership.'Many investors who owned up to 4.99 per cent in banks and were keen on raising it but did not do so till now will have an opportunity to raise their holdings. If they get the central bank permission to buy 5 per cent, then they automatically have a right to go up to 10 per cent.

"This indicates that RBI would be willing to allow shareholding of more than 10 percent for purposes of consolidation,'' said Shinjini Kumar, Partner at consultants PwC. "With the ability to grant 26 per cent voting rights as per the amendment bill even though not automatically extended here, this could pave the way for increased promoter shareholding and consolidation activity in banking."

18. Canara Bank to raise Rs 2,400 cr by issuing tier II bonds - Canara Bank said it will raise an additional capital of Rs 2,400 crore by issuing bonds on private placement basis to support its asset growth. The decision to raise the additional capital was taken at Board meeting of the bank Thursday. "The Board of the bank...has permitted to raise an additional capital of Rs 2,400 crore through issue of Basel-III compliant tier II bonds by way of private placement", Canara Bank said in a regulatory filing. The public sector lender said the coupon rate on the bonds would be as decided by the Bond Committee of the bank. The Bengaluru-headquartered bank said the capital raised will be utilised to support the asset growth during 2015-16 and also to maintain healthy level of Capital to Risk Weighted Assets Ratio .

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