TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES ) NIFTY FIFTY : - The market has kick-started in the Minor weak trend on monday Nifty was down 16.30 points or 0.2 percent at 7745.65. The mixed trend seen in Asian markets.The fall in the Indexes Followed losses on Wall Street that shed 2 per cent on last Friday after crude oil prices hit their fresh seven-year lows. Investors also remained disappointed over a likely washout of winter session of Parliament which Ended on wednesday. "On wednesday market opened strong following positive Asian cues Nifty Open up 62.65 points or 0.8 percent at 7848.75. Asian equity markets followed their Wall Street peers as investors cheered strong US data, a pause in the greenback's rally and higher oil prices. Going forward, if the Nifty manages to sustain above the 7900 mark then we may witness a continuation of this move towards 79708050 levels. On the other hand, 7720-7650 are now seen as important support levels, The major resistance for Nifty is 7920 if the Nifty able to meet that point we could find the comfortable zone for Nifty to move in the continues trend for Next week. The Resistance for next week is 7920-7950 And the Support for Next week for Nifty is 7850-7795.
BANK NIFTY : - The Bank Nifty open in Minor down trend on Monday trading session at 16593.14. The Bank Nifty is currently trading at 16811 down by 5.65 point or 0.03 per cent. The Banking stocks has Performed well in this week and make the new high of this week. The Bank Nifty is seems Strong for Next week also. It can cross the level of 17000. The Strong Resistance for Bank Nifty is 17039-17395 And the Banking Nifty Strong support is 16683-16327. If the Bank Nifty able to break the level of 16900 we can expect the 17000-17300 level For Next week. RBI Governor has said that the high debt is a worry for the Indian Inc and the Banks also.The All over the Trend of Banking Nifty is on Bullside. So Expectations from banking Nifty to reach at the 17200 level at the end of Next week Session.
TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES ) NIFTY DAILY
R2
R1
PP
S1
S2
7920
7868
7816
7712
R2
R1
PP
S1
S2
8162
7940
7829
7718
7496
R2
R1
PP
S1
S2
9092
8256
7838
7420
6584
8024
WEEKLY
MONTHLY
BANK NIFTY DAILY
R2
R1
PP
S1
S2
17039
16861
16683
16327
R2
R1
PP
S1
S2
17520
17044
16806
16568
16092
R2
R1
PP
S1
S2
20916
18304
16998
15692
13080
17395
WEEKLY
MONTHLY
MOVING AVERAGE
21 DAYS
50 DAYS
100 DAYS
200 DAYS
NIFTY
7828
7997
8110
8295
BANK NIFTY
17038
17321
17627
18061
PARABOLIC SAR
DAILY
WEEKLY
MONTHLY
NIFTY
7915
8346
8533
BANK NIFTY
17395
16061
19814
PATTERN FORMATION ( NIFTY AND BANK NIFTY )
Depiction of Chart - On the Above given weekly chart Applied the 100 days Moving average along with 50 days Exponential moving Average.The Moving average lag the current price action because they are based on past prices longer the time period the greater the lag of Moving Average. Thus a 100-day MA will have a much greater degree of lag than a Less-days MA because it contains prices for the past 100 days. With breaks above and below this moving average considered to be important trading signals.for Buying or Selling. MAs also impart important trading signals on their own, .While on the Above given Chart EMA is About to cross over the MA which is a early signal for Bullish movement for Nifty . The globle market also in Support for Bull movement, The previleg for Nifty50 to give gap-up opening in next week. So we can expect that if the Nifty is crossing the level of 7870 it can make the high of 7900-7950 for Next Week. Weekly Support of Nifty Is 7750-7720 And Resistance is 7875-8030.
BANK NIFTY MACD
Details of Chart On the Above given weekly chart of bank Nifty applied 100 days Moving Average along with 50 days Exponential moving Average . And the both are the indicators on Bull movement for Bank Nifty. After long time the Bnak nifty has seen the Near level of 16900. The market is now in good shape so we could expect the handsome return from the Bank Nifty for Next week. Hope from Banking industry is Also good for next week, so we can assuming further movement of Bank Nifty The Crucial level for Banking Nifty is 17039-17122 if the Nifty able to meet that target we can Expect the Bank nifty 17300 level near next week. So i am Still bullish on bank Nifty. The major Resistance for Nifty Is 1683-16568 And the Resistance for BAnking Nifty is 17039-17325.
NSE EQUITY DAILY LEVELS COMPANY NAME
R2
R1
PP
S1
S2
ACC ALBK
EQ EQ
1351 71
1348 71
1346 70
1342 69
1337 69
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 SBIN SSLT( VEDL) SUNPHARMA TATAMOTORS TATAPOWER TATASTEEL UNIONBANK
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
204 889 458 2515 162 233 176 343 658 343 118 3069 366 3770 871 1256 1082 2705 86 873 266 325 954 1112 887 707 1310 1278 39800 4660 242 140 89 428 1012 511 56 233 93 805 388 67 270 156
203 880 450 2487 158 228 173 338 649 331 117 3046 363 3752 864 1246 1078 2692 86 870 263 324 950 1106 874 703 1303 1265 39538 4637 239 139 88 422 1007 494 55 231 92 799 384 67 267 154
202 879 451 2486 159 229 173 334 648 325 115 3025 361 3732 860 1236 1073 2685 85 866 261 322 942 1098 862 700 1295 1259 39322 4612 236 137 86 415 1001 478 54 229 91 793 381 66 264 152
202 869 447 2476 157 227 172 330 644 321 113 3002 358 3714 853 1226 1070 2672 84 863 258 321 938 1092 849 696 1288 1246 39060 4589 233 135 85 409 996 461 52 227 90 787 377 66 261 150
201 859 444 2457 156 225 170 325 640 319 111 2981 356 3694 849 1216 1065 2665 83 859 255 319 930 1084 837 693 1280 1240 38844 4564 230 133 84 402 990 445 51 225 89 781 374 65 258 148
TOP 15 ACHIEVERS
SR.NO
SCRIPT NAME
PREV CLOSE
CMP
//
% CHANGE
2
PIPAVAV DEFENC 65.55 &OF BEMAL LTD. 1090.30
3
ESSAR OIL LTD.
217.95
256.00
+17.46 %
4
SREI INFRA.
43.55
50.65
+16.30 %
5
RELIANCE INFRA
423.20
493.05
+16.51 %
6
BERGER PAINTS
222.95
251.95
+12.83 %
7
ARVIND LTD.
301.15
337.95
+12.22 %
8
BHARAT
1177.10
1316.80
+11.87 %
9
ELECTRONIC B F UTILITIES LTD.
603.85
669.05
+10.80 %
10
TRENT LTD.
1523.20
1687.10
+10.76 %
11
CENTURY TEXTILES 544.90
598.90
+9.91 %
12
BHARTI AIRTEL
308.40
338.75
+9.84 %
13
DCB BANK
75.60
82.95
+ 9.72 %
14
CAIRN INDIA LTD.
126.70
138.45
+9.27 %
15
RELIANCE CAPITAL 388.30
421.10
+8.45 %
1
100.25
+52.94 %
1293.80
+17.70 %
SR.NO
1 1.11+2.11+3.11+4. B112+5. B11 E021E021E021E021E02 M 997M997M997M997M99 3 A03 . A03 . A03 . A03 . A03 L4 .5 .+ 77. L4 .5 .+ 78. L4 .5 .+ 79. L .5 .+ 7S L4 .5 . 6. S4 4010. 81 0R30 81 0R30 81 0R30 81 8 R30 R30 L.0.06E L.0.06E L.0.06E L.0.06E L.0.0 E 5 IT56% . IT56% . IT56% . IT56% . IT56 D B5 25 23 +ID B5 25 23 +ID B5 25 23 +ID B5 25 263 +ID B5 25 2 .E250 .E250 .E250 .E25 I.E250 1N 1N 1N 1N N F F F F R212R212R212R212R21 7R F G. . % .R G. . % .R G. . % .R G. . % . G. . R E1 91 9+ 8A E1 91 9+ 8A E1 91 9+ 8A E1 91 9+ 8A E1 91 9 B B B B B 8 A . . . R1 53 51 3R1 53 51 3R1 53 51 3R1 53 51 3.R1 53 5 H . 711H711H711H711H71 9 P76.% P76.% P76.% P76.% P76 A A A A A A1 A1 A1 A1 A1 .1 .+ 8T .1 .+ 8T .1 .+ 8T .1 .+ 8T .. T R R R R R1 10 I5 16 81 7I 5 16 81 7I 5 16 81 7I 5 16 81 7I 5 16 8 R R R R R N2 N2 N2 N2 N2 A 08 00A 08 00A 08 00A 08 00A 08 0 11 T37% T37% T37% T37% T37 E .E .E .E .E T T T T T S. . 7S. . 7S. . 7S. . 7S. . B33+N B33+N B33+N B3312 +N B33 N 2 01 36 92 01 36 92 01 36 92 01 36 92 01 3 H H H H H00 T 0 0 T 0 0 T 0 0 T 0 0 .T E88 . E88 . E88 . E8813 E88 % % % % A. . 8A. . 8A. . 8A. . 8A. . L474L474L474L474L47 C 11+C +C R R11+C R11+C R1114 R11 L 03 59L 03 59L 03 59L 03 59L 03 5 E2 E2 E2 E2 E2 A A A A A T68% . T68% . T68% . T68% . T68 T C T C T C T C 15T C II. . 2II . . 2II . . 2II . . 2II . . D T747D T747D T747D T747D T74 R R R R R . 05 A . 05 A . 05 A . 05 A . 05 R R R R R N % N % N % N % A I I I N I O O O O O I R R R R N N N N N IR IT IT IT IT I I I I I N T N E N E N E N E C C C C C D D D E L L D L D L IL I A A
I
I
I
A
A
A
TOP 15 LOOSERS
SCRIPT NAME
MARICO LTD.
PREV CLOSE
432.80
CMP
% CHANGE
226.15 -47.75 %
BECLERX B B 1811.00 SERVICES KAVERI SEED CO. 383.85
1487.30
SABB S INDIA S
1187.20
1118.50
JUST DIAL
916.60
864.00
KPIT TECHNOLOGIES TITAN CO.
173.60
167.55
363.40
351.45
JUBILANT LIFE SCIENC BOSCH LTD.
427.90
414.50
18805.15
18210.0
-17.87 % 346.80 -9.65 % -5.79 % -5.55 % -3.49 % -3.29 % -3.13 % -3.16 %
GUJRAT PIPAVAV 150.40 PORT EMEMI LTD. 1004.85
146.00
M&M
1255.65
-2.93 % 975.65 -2.91 %
1289.05
-2.59 % JK LAKSHMI 335.45 CEMENT NIIT 597.90 TECHNOLOGIES RAJESH EXPORT 681.60
329.50 -1.77 % 588.85 676.00
-1.51 % -0.82 %
LTD.
NEXT WEEK STARS (AS PER TECHNICAL ANALYSIS PRIDICTION)
NSE CASH
L L
L
L
L
T T
T
T
T
D D
D
D
D
.
.
.
.
.
NATCOPHARM NSE CASH : NATCOPHARM IS IN UPTREND AND LONG POSITION CAN BE MADE ABOVE 580 FOR TGT AND SL OF 630 AND 560 RESPECTIVELY.
ECLERX NSE CASH : LONG POSITION CAN BE MADE IN ECLERX ABOVE 1482 FOR TGT AND SL OF 1600 AND 1437 RESPECTIVELY.
ALKEM NSE CASH : ALKEM SHOWED POSITIVE MOMENTUM LAST WEEK. LONG POSITION CAN BE MADE ABOVE 1520 FOR TGT AND SL OF 1642 AND 1475 RESPECTIVELY.
E11- E11- E11- E11- E11 C841C841C841C841C84 L187L187L187L187L18 E17. E17. E17. E17. E17 R1 .1 . -8A R1 .1 . -8A R1 .1 . -8A R1 .1 . -8A R1 .1 . A X1 01 35 7B X1 01 35 7B X1 01 35 7B X1 01 35 7B X1 01 3 B 01 0. B8 01 0. B8 01 0. B8 01 0. B8 01 0 B8 S787 % S787 % S787 % S787 % S78 IE K.1.19 - IE K.1.19 - IE K.1.19 - IE K.1.19 - IE K.1.1 R R R R R N P2 75 63N P2 75 63N P2 75 63N P2 75 63N P2 75 6 V V V V V D I0 30 7% .D I0 30 7% .D I0 30 7% .D I0 30 7% .D I0 30 7 IT. . 4IT. . 4IT. . 4IT. . 4IT. . C659A C659A C659A C659A C65 A J44- J44- J44- J44- J44 E T2 01 53E T2 01 53E T2 01 53E T2 01 53E T2 01 5 U U U U U S S S S S E74.% E74.% E74.% E74.% E74 B B B B B IC. . 1IC. . 1IC. . 1IC. . 1IC. . H1 H1 H1 H1 H1 L 91 5-3G L 91 5-3G L 91 5-3G L 91 5-3G L 91 5 G N5 N5 N5 N5 N5 A 04 02U A 04 02U A 04 02U A 04 02U A 04 0 U O06.% O06.% O06.% O06.% O06 N N N N N J J J J J L. . 9R L. . 9R L. . 9R L. . 9R L. . T T T T T R O403A O 03A O 03A O 03A O0 A M 11- M4 11- M4 11- M4 11- M4 11 G00 T G00 T G00 T G00 T G00 L T &222L &222L &222L &222L &22 IM I I I I % % % % 85. M85. M85. M85. M85 E E E E E F P955F P955F P955F P955F P95 S IE S IE S IE S IE S IE .5 . -9N5 .5 . -9N5 .5 . -9N5 .5 . -9N5 .5 . N5 08 61IP9 08 61IP9 08 61IP9 08 61IP9 08 6 IP9 S S S S S 58 5.% 58 5.% 58 5.% 58 5.% 58 5 IA7 IA7 IA7 IA7 IA7 C C C C C V. . 5T V. . 5T V. . 5T V. . 5T V. . T IA IA IA IA IA 981 981 981 981 98 E V05 E V05 E V05 E V05 E V05 T T T T T N N N N N E % E % E % E % E C C C C P C P C P C P C P C C O H O H O H O H O H R N R N R N R N R N T O T O T O T O T O L L L L L O O O O O G G G G G I I I I I E E E E E S S S S S
MRPL NSE CASH : MRPL IS TREADING IN A RANG AND ON BREAKOUT LONG POSITION CAN BE MADE ABOVE 66.70 FOR TGT AND SL OF 72 AND 64.70
RPOWER NSE CASH : RPOWER GAINED ABOUT 3% IN LAST TREADING SESSION OF THE WEEK AND CAN MOVE FURTHER, LONG POSITION CAN BE MADE ABOVE 54.50 FOR TGT AND SL OF 58.85 AND 52.85.
NSE FUTURE RCOM FUTURE : RCOM SHOWS BULLISH TREND ON DAILY CHART WE CAN EXPECT FURTHER UPSIDE MOVEMENT IN RCOM. MADE LONG POSITION IN RCOM ABOVE 87 TGT 92 SL 85
NCC FUTURE: NCC MOVES IN BULLISH TREND. WE CAN MADE LONG POSITION IN IT ABOVE 78 TGT 84 SL 76.
ZEEL FUTURE : ZEEL SOWS BEARISH TREND ON DAILY CHART WE CAN EXPECT FURTHER DOWNSIDE MOVEMENT IN IT BELOW 410 TGT 400,SL 416.
WIPRO FUTURE : WIPRO CONSITENTLY MOVES IN DOWNSIDE WE CAN EXPECT FURTHER DOWNSIDE RALLY IN WIPRO. WE CAN MADE SHORT POSITION IN WIPRO BELOW 555 TGT 540 SL 563.
TV18BRDCST FUTURE : TV18BRDCST SHOWS BULLISH MOVEMENT ON DAILY CHART WE CAN MADE LONG POSITION IN IT ABOVE 49 TGT 53 SL 48.
NSE - WEEKLY NEWS LETTERS TOP NEWS OF THE WEEK
Government sells PSU shares worth $5 billion in 2015, readies 2016 pipeline Government's disinvestment kitty has almost doubled this year with over Rs 35,000 crore garnered through PSU share sales, but not without the help of its all-time saviour LIC, while a strong pipeline is ready for 2016 with bluechips like NTPC, Coal India and ONGC. At a record high of Rs 35,236 crore, the total funds collected by the government through part-sale of its stake in the 'family silver' PSUs during 2015 marks a huge jump from about Rs 18,000 raised in the previous year.
Year End Review 2015: Ministry of Commerce & Industry - GDP at factor cost is no longer relevant in the New Series. As per the international practices, industry-wise estimates have been presented as Gross Value Added at basic prices, while „GDP at market prices‟ of old series has been referred as GDP in new series. India‟s growth rate of the GVA at Basic Price at constant (2011-12) prices in 2014-15 was 7.2 % with growth of GVA in industry at 4.5 % and in manufacturing at 5.3 %. The sectoral share in GVA at basic price at constant (2011-12) price of manufacturing sector was 18.1 % in 2014-15. GDP at constant (2011-12) prices in Q2 of 2015-16 is estimated at Rs. 27.57 lakh crore as against Rs. 25.66 lakh crore in Q2 of 2014-15, showing a growth rate of 7.4%. Quarterly GVA at basic prices for Q2 2015-16 from „manufacturing‟ sector grew by 9.3 percent as compared to growth of 7.9 percent in Q2 2014-15.
Banks need to cut lending rates to spur economic growth - Many people think that RBI is to be blamed for not doing enough to cut rates and revive economic growth. But there is difference between cutting policy rates and lending rates. The former is the responsibility of RBI and latter of the banks. So when RBI has already cut policy rates by more than 1.2%, it is now upto banks to translate this move by RBI into lending rate cuts and transmit it to borrowers. But banks have not cut rates in line with RBI. Though new mathematics of calculating base rates on basis of marginal cost of funds is expected to benefit new borrowers, there is still a lot more that banks need to do.
FinMin cuts disinvestment target by 57% to Rs. 30,000 crore - The Finance Ministry has cut its ambitious disinvestment revenue target by 57% to Rs. 30,000 crore for the
current fiscal year. Despite missing targets in the past five years, the Centre had set an ambitious disinvestment revenue target of Rs. 69,500 crore for FY16. But, strategic stake sales failed to take off and minority stake sales in PSUs also came to a halt after initial promise due to volatile markets, according to a financial newspaper. The Centre managed to mop up INR 12,700 crore in the first half of FY16 by selling stakes in 4 PSUs - the highest disinvestment in the first half in the past seven years.
optimistic about the real estate sector year in 2016 - We are optimistic and hope the year 2016 heraldsâ€&#x; good tidings for the real estate sector. 2015 has been quite eventful year as compared with the last two years. The government has made all the right moves to propel its growth. It has initiated a number of polices which when implemented should hopefully see the sector come out of its slumber and attract huge investments into the sector going forward. The proposed Development Plan 2034, State Regulatory bill, relaxed FDI rules, Smart Cities, GST and favourable budget are some key drivers which have the potential to improve the market sentiments and achieve the governmentâ€&#x;s aim of providing Housing for All 2022.
India will be fastest growing economy over next 10 years: Harvard researchers India, with a projected annual growth rate of 7 per cent, has the potential to be the world's fastest growing economy over the coming decade, surging ahead of its South Asian economic rival China that will continue to see a slowdown, according to Harvard researchers. "India has the potential to be the fastest growing economy over the coming decade... India tops the global list for predicted annual growth rate for the coming decade, at 7.0 per cent," new growth projections presented by researchers at the Centre for International Development at Harvard University showed.
Call drop case: Telcos get temporary relief from Delhi HC - Delhi High Court gave a temporary relief to telecom operators at the hearing of call drops case today. The Telecom Regulatory Authority of India said that it will not take any coercive action on call drops till the next hearing on January 6, after the Delhi HC asked the regulator to do so. The High Court did not put a stay on the compensation regulation formulated by TRAI. Hence the regulation is likely to be introduced as planned on January 1, 2016. However, Delhi High Court has refrained the regulator body from taking any coercive action in case of non-compliance by telcos.
As one of the largest importers, India needs to renegotiate Oil & Gas Import contracts - For something as critical as crude oil, it‟s a common belief that suppliers have immense power over customers. But on the contrary and as one of the biggest customers of crude oil producing countries, India too has a great chance to show its bargaining skills and renegotiate the terms of oil supply contracts. India's energy demand is all set to double by 2040. Also it‟s quite evident that even in future, a major part of energy demands will have to be met by imports. So to ensure that it is neither arm-twisted nor short changed in future; India should renegotiate its energy contracts taking a long-term vision.
Cabinet gives approval for investment of Rs. 5,000 crore by ONGC - The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, has given its approval for investment of Rs.5,000 crore by Oil and Natural Gas Company Limited into the equity share capital of ONGC Videsh by conversion of existing loan of equivalent amount into equity. The approved investment will strengthen the capital base of ONGC Videsh. It will enhance the ability of ONGC to undertake overseas Exploration and Production business, thereby improving the energy security of the country.
New base rate policy will actually help banks - While the new base rate norms released by the Reserve Bank of India were initially seen as a big hit for the banks, as they are going to tie the hands of the banks and force them to transmit and money policy changes faster, on hindsight it emerges that the new guidelines will actually reduce pressure on the banks‟ net interest margins. As per the new RBI guidelines, domestic lenders will have to gradually adopt the marginal cost of funds lending rate to price their loans. The key components of MCLR include marginal cost of funds, negative carry on the cash reserve ratio, operating costs and tenure premium. The new policy will apply to all new loans advanced after April 1, 2016 and not apply to the existing loans. Plus, banks will have a tenure-based benchmark instead of a single base rate.
Government tables Bankruptcy Bill in Lok Sabha - The Finance Minister of India Arun Jaitley has introduced the bankruptcy bill in Lok Sabha. The bill aims to wind up sick companies in 180 days or earlier in some cases. The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha by the Finance Minister Arun Jaitley to replace the current Bankruptcy law. Under the current Bankruptcy law, it takes years to revive or liquidate an ailing company. The proposed Bill will make it easier to wind up bankrupt
companies within a fixed time frame and is in line with global practices. The bill was introduced as Money Bill in Lok Sabha as it limits the role of Rajya Sabha in the passage of the Bill. Money Bills cannot be defeated in Rajya Sabha, where Bills such as goods and service tax did not find approval due to want of majority.
NPA of large borrowers hurting banking system: RBI - The Reserve Bank of India on Wednesday expressed concern about the debt servicing capability of large borrowers, saying that it was affecting the health of the banking sector. In its Financial Stability Report released on Wednesday, the RBI stated that there has been a sharp increase in the large borrowers' share of gross NPAs in the total gross NPAs to 87.4% in September from 78.2% in March. "This is a major concern to the lending institutions and other stakeholders," according to the central bank.
Reliance Defence, United Shipbuilding sign Rs. 66,000 cr pact - Reliance Defence has entered into a strategic partnership with Russia‟s United Shipbuilding Corporation and Rosoboronexport with an aim to get US$10 billion worth of business in manufacturing, refitting and modernisation of surface vessels for the Indian Navy, reports a financial newspaper. The agreement has a time horizon of 15 years and focuses on modernisation and refitment of all Russian origin surface warships of the Indian Navy at Reliance‟s newly acquired facility in Pipavav, according to the business daily.
Data Shows Decline in Foreign Investment: Net foreign investment declined to USD 0.1 billion in 2QFY16 from USD 7.8 billion in 1QFY16. While net foreign direct investment declined to USD 6.6 billion in 2QFY16 from USD7.5 billion 1QFY16, foreign portfolio investments witnessed a net outflow of USD 6.4billion in 2QFY16 compared with a net inflow of USD 9.8billion in 2QFY15. Despite dismal performance of FDI/ FII in 2QFY16, Ind-Ra expects both FDI and FII to perform better. Portfolio investments are expected to return post reallocation in early 2016 as India‟s macro fundamentals and growth prospects are better. Also, the focus on „Make in India‟ will create longer and more stable opportunities for FDI.
SBI raises Rs. 4,000 crore - India's largest bank, State Bank of India, has said it has raised Rs 4,000 crore by issuing tier-II bonds on private placement basis under the BaselIII norms. The bank has announced that in terms of Regulation 30 (2) of the SEBI Regulations, 2015, the Bank on December 23, 2015 has issued 40,000, Basel III
compliant, Tier-ll bonds in the nature of debentures, of face value of Rs.10,00,000/- each at par, with 10 year tenure, bearing 8.33% p.a. coupon and with call option after 5 years, aggregating to Rs.4000 crores on private placement basis. Rajan calls for close monitoring of accounts of financial institutions - Reserve Bank of India governor Raghuram Rajan has flagged concerns over rising level of bad loans in Indian banks, according to reports. Rajan stated that weak corporates with lower debtservicing capacity may worsen the situation. The Reserve Bank of India expressed concern about the debt servicing capability of large borrowers, saying that it was affecting the health of the banking sector. In its Financial Stability Report released on Wednesday, the RBI stated that there has been a sharp increase in the large borrowers' share of gross NPAs in the total gross NPAs to 87.4% in September from 78.2% in March.
TOP ECONOMY NEWS Policy Bytes: Niti Aayog initiatives, FDI proposals Cleared - NITI Aayog will soon come out with policy papers on key sectors like agriculture, infrastructure, energy, manufacturing and social development. The Health Insurance TPA of India Ltd. formed by public sector non-life insurance companies to manage their health claims, is all set to go live. The Finance Ministry is actively pursuing with SEBI, the case for raising the single foreign investment limit in a stock exchange from 5% to 15%. For the forthcoming budget, the departments of direct and indirect tax will operate under a single financial authority – Department of Revenue.
Growth rate will touch the 8% mark soon: Arvind Panagariya - NITI Aayog vicechairman Arvind Panagariya said that growth rate will touch the 8% mark soon. India will rank even better in ease of doing business once new changes are taken into account, Arvind Panagariya was quoted as saying. Panagariya reported that states have a more „equal‟ relationship with NITI Aayog as compared to the Planning Commission.
Indian economy will more than double to $5 trillion in 10 years: Jayant Sinha Minister of State for Finance Jayant Sinha reportedly said that the size of the Indian economy will more than double to USD 5 trillion if 7% growth rate is sustained for next 10 years, "If we grow at 7%, we will double our economy in a decade. We are going to go
from US$ 2 trillion economy to USD 4 trillion economy, if the rupee strengthens," Sinha was quoted as saying. He added that the government will meet the fiscal deficit target for current as well as for the next fiscal.
WTI threatened by higher US oil rig count - Oil concluded last week heavily depressed closing under $36 following the Friday report from oil services company, Baker Hughes Inc. showing that the oil rig count climbed for the first time in five weeks. Sentiment towards WTI Oil received a heavy blow as this latest increase in oil rig counts, combined with the consistent rise in crude oil inventories have led to intensifying concerns over the aggressive oversupply in the markets. Investor attraction towards this commodity has rapidly faded, and with Iraqâ€&#x;s oil Minister Adel Abdul-Mahdi reiterating that OPEC will stick to its decision of maintaining a policy of uncapped production levels, prices may remain vulnerable and open to further losses.
IIP increased by 4.8% during April-October, 2015-16 - The rate of industrial growth measured in terms of Index of Industrial Production increased by 4.8 per cent during April-October, 2015-16 as compared to the growth of 2.2 per cent during the same period of previous year i.e. 2014-15. All the three industrial sectors viz. mining, manufacturing and electricity have registered positive growth of 2.0 %, 5.1 % and 5.2 % respectively, during April-October, 2015-16.
Remove additional tax in GST: Rangarajan - The proposed 1% additional tax on interstate sales is against the spirit of Goods and Services Tax and that should not be implemented, former RBI Governor C Rangarajan reportedly said. "I think GST is a good measure. Certainly that 1% tax, that was contemplated, goes against the spirit of GST, "C Rangarajan was saying. Finance Minister Arun Jaitley had hinted at accepting Congress' stand on scrapping 1 per cent additional tax.
FIPB approves 9 FDI Proposals worth Rs. 1,200 crore - FIPB on Monday approved 9 FDI proposals worth Rs. 1,200 crore, according to reports. FIPB has deferred Holcim, HSBC Sec's. FIPB approved proposals of Cadila Healthcare.
2015 round up: Weaker rupee hits fund raising via ECB - The amount of fund raised by the companies via external commercial borrowing has found on a back-seat due to weakening of Indian rupee against the US dollar. Also, global uncertainity coupled with
average domestic growth in CY2015 made it more difficult for the domestic companies to raise funds via ECB. In CY2015, till October 2015, total 633 Indian companies have raised US$ 21.422 billion through ECB, according to the data available with the Reserve Bank of India. In CY2014, total 737 companies had raised US$ 30.501 billion via ECB, through automatic as well as approval route. Q2FY15-16 current account deficit stands at $8.2 bn - India‟s current account deficit stood at US$ 8.2 billion 1.6 per cent of GDP in Q2 of 2015-16 was lower than US$ 10.9 billion 2.2 per cent of GDP in Q2 of 2014-15 but increased from US$ 6.1 billion 1.2 per cent of GDP in the preceding quarter, according to RBI. RBI data says that the contraction in CAD was primarily on account of lower trade deficit US$ 37.4 billion as compared with US$ 39.7 billion in Q2 of last year though it was higher than the level in the preceding quarter US$ 34.2 billion.
Mid-year review is signals govt going easy on deficit management - The government's mid-year economic review released last week captured some interesting trends of the broader economy. First of all, the review clearly states that the engines of growth are not really firing on all cylinders. While two key components -- public expenditure and private consumption -- are said to be working well for the economy, a major slowdown in exports and also lack of private investment have been big drags on growth. Incidentally, these are areas that the government has been focusing on all along.
Bankruptcy code referred to Joint Select Committee of Parliament - The Insolvency and Bankruptcy Code 2015 would be referred to a „Joint Select Committee of Parliament‟, the Finance Minister Arun Jaitley said.
CAD data shows delicate balance on external trade front - India's current account deficit widened to $8.2 billion or 1.6 per cent of GDP in the second quarter of the financial year from $ 6.2 billion reported for the first quarter of the financial year. While the number was lower on a year-on-year basis -- it was $10.9 billion in the second quarter of last financial year -- the trade deficit ballooned to $ 37.4 billion from $34.2 billion quarter on quarter and $39.7 billion year on year.
MoS Finance says expects GST & Bankruptcy Code Bill to be passed in Budget Session - The Minister for State for Finance, Jayant Sinha is expecting GST &
Bankruptcy Code Bill to be passed in Budget Session. Jayant Sinha added that Bankruptcy as Money Bill was intended to speed up its passage. Minister for State for Finance says it is very hard to predict GST rollout time. We hope to have over 2000 PPP Projects in Next few years from current 1,300, says Jayant Sinha.
The Odisha state government formally opened the process for e-auction of mineral assets - The Odisha state government formally opened the process for e-auction of mineral assets with the offering of Ghorhaburhani-Sagasahi iron ore block with geological reserve of 99.59mn tonne. The block is at G2 exploration stage and located in Koira sector in Sundargarh district
TOP CORPORATE NEWS Sun Pharmaceuticals Industries Limited - Sun Pharma has received a warning letter from USFDA relating to its facility in Halol in Gujarat. The letter was a result of the inspection done by the US Food and Drug Administration at Halol plant in September 2014.
Reliance Jio - Reliance Jio Infocomm will start its 4G service on December 27, but only for group employees. The commercial operations are widely expected to commence in April-May, 2016.
Tata Power Company Limited - Tata Power's subsidiary, Maithon Power Ltd, has commenced 150 MW supply to Kerala with immediate effect.
Cipla Limited - Cipla announced the launch of generic version of anti-hepatitis drug Ledipasvir-Sofosbuvir in the domestic market. The drug is used for treating hepatitis C virus.
Reliance Communication Ltd. - Reliance Communications has sold about 150 residential flats in Navi Mumbai for Rs3.3bn. RCom has already received more than 50% of the sale proceeds and the balance amount will be realized in the next 2-3 months.
SpiceJet - SpiceJet has, for the seventh consecutive month, reported a seat factor of above 90% in November. As against this, rival IndiGo recorded a seat factor of 83.9% in
November while Air India saw its seat factor increasing to 81.7% as compared with 74.6% in October.
Strides Arcolab Ltd. - Drug firm Strides Shasun has received approval from the Drug Controller General of India to produce a generic version of Gilead's 'Sovaldi' used for treatment of Hepatitis C. Raymond Ltd. - Devendra Fadnavis handed over an “offer letter� allocating 500 acres of land in Amravati district to Raymond Group for setting up a Rs15bn textile unit in Vidarbha.
Jindal Steel And Power Ltd. - Jindal Steel and Power will resume mining coal from two of its stalled projects in Australia as it expects to get regulatory clearances from Canberra soon. The firm had to suspend operations at its Russell Vale Colliery in September because of regulatory issues. Wongawilli Colliery was shut for maintenance in August but it now needs government approvals to restart mining.
GAIL India Ltd. - GAIL has extended last date of bidding for its $7bn tender for hiring nine newly built ships for ferrying LNG from the US by over two months to allow Indian shipyards to tie up technology for building the specialized vessels. Bids for charter hiring of nine ships quoted in three lots of three ships each were due last week but have now been extended till February 29, 2016.
Tata Steel Ltd. - Tata Steel is in talks to sell its struggling British-based unit to investment firm Greybull Capital, the two firms said in a statement.
Ultratech Cement Ltd. - The limestone mine allotted to the UltraTech Cement in Chhattisgarh's Raipur district had come under the scanner as the state government announced to cancel the No-Objection-Certificate granted to the company required to commission the mining operation, due to environmental issues.
Aurobindo Pharma Ltd. - Aurobindo Pharma has received approval from the US health regulator for generic Olopatadine Hydrochloride ophthalmic solution used for treatment of seasonal allergic conjunctivitis and is ready to launch the product in the American market.
Glenmark Pharmaceuticals Ltd. - Glenmark Pharmaceuticals has received the final nod from the US health regulator for a generic version of anti-bacterial drug Zyvox.
Reliance Communication Ltd. - Telecom service provider Reliance Communications on Tuesday announced that it is holding exclusive talks with with shareholders of telecom operator Aircel for a potential merger of their Indian wireless business of RCom and Aircel.
Ultratech Cement Ltd. - The limestone mine allotted to the UltraTech Cement in Chhattisgarh's Raipur district had come under the scanner as the state government announced to cancel the No-Objection-Certificate granted to the company required to commission the mining operation, due to environmental issues.
Somany Ceramics Limited - Somany Ceramics has raised Rs1.2bn (at an issue price of Rs339.5 per share) through the QIP route.
Idea Cellular Limited - Idea announced the launch of 4G LTE services in all five telecom service areas of South India - namely Telegana, Andhra Pradesh, Karnataka, Kerala and Tamil Nadu - on Wednesday. In the first phase, 4G will be available across 75 towns in the five southern states.
Wipro Limited - Wipro has signed a definite agreement to acquire New Jersey-based back office services provider Viteos Group for a consideration of $130 million.
Piramal Enterprises Limited - Piramal Enterprises has acquired five healthcare brands from Merck Sharp & Dohme for Rs 920 million as a part of its strategy to grow its OTC business. This is Piramal Enterprises's second acquisition in the OTC segment in a month.
Lupin Ltd. - Lupin has received final approval from the US health regulator to market Potassium Chloride extended release capsules, used to treat potassium deficiency in the body, in the American market.
Natco Pharma Ltd. - Natco Pharma Limited and its US partner Allergan announced the settlement of their pending litigation with Celgene regarding generic Lenalidomide, an
oral cancer drug used in the treatment of multiple myeloma.
Larsen & Toubro Limited - Larsen & Toubro has bagged orders worth Rs11.78bn across various segments so far this month, the company said in a filing to the BSE.
TOP BANKING AND FINANCIAL NEWS OF THE WEEK IDBI Bank plans to sell 20% stake in life insurance JV - IDBI Bank is planning to sell 20% stake in life insurance joint venture for Rs. 800 crore, according to reports. Report says that the process to sell stake is expected to start in January. The promoters holding in the Bank stood at 76.5 % while Institutions and Non-Institutions held 13.88 % and 9.63 % respectively. The stock traded below its 50 DMA. Banks to raise provisioning for another bank’s NPAs - One bank will have to pay for a sticky loan of another bank if they have lent to the same company. A new rule, that is believed to be underway, will force a bank to take a knock on earnings even if the corporate borrower is paying on time but is blacklisted as 'non-performing asset' by any other lender. The proposal which was recently discussed between senior bankers and regulatory officials may impact earnings of many banks as they provide more on loans that are standard and well-behaved on their books but are irregular and NPA with some other bank.
Tax-free bonds and select debt mutual funds see big demand; banks lose Rs 40,000 cr net in a fortnight - Falling rates appear to be prompting a shift from traditional bank term deposits to alternative investment avenues including taxfree bonds and select mutual fund debt schemes.Depositors have pulled out a net Rs 40,000 crore from banks since the fortnight ended October 2, which began immediately after the Reserve Bank of India lowered its policy rates by 50 basis points. A basis point is 0.01%.
Canara Bank to raise up to Rs.2,400 crore - The Board of the Bank has permitted the Bank to raise additional capital of Rs. 2,400 crore through issue of BASEL-III compliant Tier II Bonds by way of Private Placement at a Coupon Rate as decided by the Bond Committee of the Bank to support the asset growth during 2015-16 & also to maintain healthy level of CRAR. The Bank received ratings of "IND AAA"; Outlook Stable from India Ratings & Research Private Limited for the proposed issue of the said Bonds.
RBI discussion paper on peer-to-peer lending soon - Reserve Bank of India deputy governor R Gandhi said on Monday that the central bank was actively studying the peerto-peer lending arrangements and would soon come out with a discussion paper. The deputy governor aid while innovations are mandatory, it is important to be conscious of risks arriving from such innovations. Gandhi was speaking at the first summit of nonbanking financial companies, organised by the Confederation of Indian Industry. New RBI norm for rate calculation credit positive: Moody’s -The Reserve Bank‟s new uniform methodology for calculating base rate on marginal cost of funds is „credit positive‟ for Indian banks as it would ease pressure on their balance sheet, Moody‟s said.“The new guidelines will reduce pressure on the banks‟ net interest margins , a credit positive,” Moody‟s Investors Service said in a statement.
State Bank Of India - State Bank of India said it plans to raise up to Rs120bn by issuing tier-II bonds on private placement basis.
No deadline for resolving complaints by Banking Ombudsman: RBI - There is no time limit for resolution of complaints under Banking Ombudsman scheme, aimed at seeking redressal of customers' common complaints against banks, the Reserve Bank of India has said. "Over 9,500 such complaints were pending against various banks," it said.
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