Morning Notes   LKP Advisory

Morning Notes
LKP Advisory
17 Nov-2014
FII's & DII's in equity
Indices
14-Nov
13-Nov
% Chg.
Major Indices
14-Nov
13-Nov
% Chg.
S&P BSE SENSEX
28,047
27,941
0.38%
CAC 40 Index
4,202
4,188
0.35%
14-Nov
8,390
8,358
0.38%
DAX Index
9,253
9,249
0.05%
S&P CNX NIFTY
Rs.Crs
Buy
Sell
Net
FII' Investments
4987
4341
646
DII's Investments
1418
1936
-518
S&P BSE MID CAP
10,155
10,102
0.52%
Dow Jones Industrial Av
17,635
17,653
-0.10%
S&P BSE SMALL CAP
11,217
11,160
0.52%
FTSE 100 Index
6,654
6,635
0.29%
FII's contribution to the total turnover
44%
Nasdaq Composite Inde
4,689
4,680
0.18%
DII's contribution to the total turnover
16%
BSE Sectoral Indices
S&P BSE METAL
S&P BSE REALTY
11,401
11,120
2.53%
Major Asian Indices
14-Nov
13-Nov
% Chg.
1,669
1,631
2.35%
Hang Seng
24,087
24,020
0.28%
FII's in Derivatives
14-Nov
Rs.Crs
Index Fut Index Opt
Stock Fut Stock Opt
8,225
8,095
1.61%
Nikkei 225
17,491
17,393
0.56%
Net
S&P BSE OIL & GAS
10,838
10,724
1.06%
KOSPI Index
1,945
1,961
-0.78%
OI
S&P BSE BANKEX
20,119
19,975
0.72%
SSE Composite Index (S
2,479
2,486
-0.27%
S&P BSE AUTO
18,660
18,544
0.62%
Taiwan Weighted
8,983
8,981
0.02%
S&P BSE CAPITAL GOODS
15,885
15,798
0.55%
2,123
2,112
0.52%
Commodities (MCX)
14-Nov
13-Nov
% Chg.
Futures (NSE)
14-Nov
13-Nov
% Chg.
10,892
10,869
0.22%
Aluminium (28NOV2014
126
126
-0.20%
USDINR 26-NOV-2014
61.87
61.68
0.30%
S&P BSE TECk
6,029
6,017
0.20%
Copper (28NOV2014)
416
407
2.09%
EURINR 26-NOV-2014
77.10
76.93
0.21%
S&P BSE CONSUMER DURA
9,830
9,815
0.16%
Crude (19NOV2014)
4,662
4,641
0.45%
JPYINR 26-NOV-2014
53.18
53.42
-0.44%
S&P BSE PSU
S&P BSE POWER
S&P BSE IT
S&P BSE FMCG
S&P BSE HEALTHCARE
Chg.OI
-208
736
98
22
19733
66869
49676
2967
1.1%
3.8%
1.3%
4%
FIIs' contribution to the total Derivatives turnove
22%
7,753
7,762
-0.12%
Gold (5DEC2014)
26,466
25,822
2.49%
FTSE100 (21-Nov-2014
6647
6624
0.35%
14,840
15,023
-1.22%
Silver (5DEC2014)
36,032
34,707
3.82%
S&P500 (21-Nov-2014
2038
2042
-0.18%
% Chg
ASIANPAINT
673
28
4.4
6
3.8
157
6
3.7
NMDC
155
4
GAIL
489
Company
LTP
LTP
Chg
% Chg
SUNPHARMA
888
-21
-2.3
609
-14
-2.3
1610
-30
-1.8
2.7
GRASIM
3563
-50
-1.4
13
2.7
KOTAKBANK
1097
-15
-1.3
Chg
% Chg
LTP
Chg
% Chg
JPASSOCIAT
35
3
8.1
SAIL
86
6
7.6
CIPLA
Company
RANBAXY
655
-19
-2.9
CIPLA
609
-15
-2.5
1
4.8
SUNPHARMA
887
-22
-2.4
40
4.5
M&MFIN
319
-8
-2.3
ASIANPAINT
672
27
4.3
HCLTECH
1611
-29
-1.8
Company
LTP
Chg
% Chg
Company
LTP
Chg
% Chg
69
5
7.6
BALKRISIND
691
-135
-16.3
FINOLEXIND
286
-27
-8.6
NBCC
774
-46
-5.7
RCF
ALLCARGO
308
19
6.7
GSPL
104
6
6.6
Top Losers
21
927
BSE Midcap
UNITECH
SIEMENS
MYSOREBANK
552
34
6.5
TVSMOTOR
242
-12
-4.7
VOLTAS
271
16
6.4
FINCABLES
249
-12
-4.6
Company
LTP
Chg
% Chg
Company
LTP
Chg
% Chg
SVGLOBAL
175
29
20.0
42
-6
-12.4
14
2
16.7
188
-20
-9.4
-8.8
JAYNECOIND
GREENPOWER
SIGNETIND
DYNAMATECH
Company
HCLTECH
BSE 100
158
Top Losers
JINDALSTEL
HINDALCO
CNX Nifty
Chg
Top Losers
LTP
16
2
15.0
134
12
10.0
2421
219
9.9
Top Losers
CNX Nifty
Company
BSE Smallcap
Top Gainers
BSE 100
BSE Midcap
Top Gainers
Top Gainers
BSE Smallcap
Top Gainers
KDJHRL
SPECIALITY
BANASFN
20
-2
HCIL
28
-2
-7.4
PFS
52
-4
-6.4
Domestic Market View Markets to make a soft start on weak regional cues
The Indian markets made a modestly positive close in last
session supported by some upbeat earnings number.
Today, the start is likely to be slightly in red tailing the
weakness in the regional peers. However, there is some
positive news from domestic Services sector front, as the
Services exports rose 5.3 per cent to $ 12.94 billion in
September this year compared to the same month last year.
Meanwhile, industry chamber Assocham has suggested
that government must use the opportunity to integrate
proposed Foreign Trade Policy with the 'Make in India'
programme.
Today, there is likely to be buzz in the PSU stocks, as the
Centre has begun the process of shutting some sick staterun firms. A Cabinet note proposing the closure of six firms
under the department of heavy industry has been
circulated, which includes Hindustan Photo Films, HMT
Bearings, HMT Chinar Watches, Tungbhadra Steel,
Hindustan Cable and the iconic HMT Watches. There will
be lots of result reactions to keep the markets buzzing.
Domestic Market Overview
Benchmarks end higher as WPI eases; Sensex recaptures 28,000 mark
ndian equity benchmarks ended the volatile day of trade in green terrain with Sensex recapturing its crucial
28,000 mark on sustained capital inflows and positive economic data. Overall, sentiments remained up-beat
after India’s main inflation gauge, based on monthly WPI, softened to five year low at 1.77% for the month of
October as compared to 2.38% (Provisional) for the month of September. The reading was way below the
street expectation, which were expecting figure to be near 2% mark for the month under review. Meanwhile,
the Organisation for Economic Cooperation and Development (OECD), in its latest economic outlook report
for Asian countries, has highlighted that Indian economy is expected to witness an average growth of 6.7%
over the 2015-19 period and a further boost would depend on reform plans of the government.
Sentiments remained up-beat on report that foreign portfolio investors bought shares worth a net Rs 690.61
crore yesterday, as per provisional data. Better than expected second quarter earnings from State Bank of
India (SBI) too lifted the sentiments. The bank’s consolidated net profit after taxes and minority interest for
the quarter under review registered 30.95% growth at Rs 4023.84 crore against Rs 3072.77 crore in the
September quarter of previous fiscal. The bank’s consolidated total income has increased by 15.02% at Rs
61098.67 crore for the quarter from Rs 53118.63 crore in the similar quarter of previous year.
Meanwhile, stocks related to software and technology edged higher on weak rupee. The Indian rupee was
trading at 61.77 at the time of equity markets closing against the US dollar compared to the previous close of
Rs 61.54. Stocks related to rate sensitive counters like Banking and Auto too remained on buyers’ radar
amidst hopes that RBI may slash interest rates in upcoming monetary policy in December after 5-year low
October WPI data. Additionally, public sector oil marketing companies (OMCs) edged higher on decline in
crude oil prices. Crude oil futures extending the declining run ended to three year low on Thursday, on
increasing concerns of a supply glut and that OPEC won’t act to ease a global glut.
Global Market Overview
Asian markets ended mostly in green on Friday
Asian markets ended mostly in green on Friday, with Japan’s index rising as investors await a report on
economic growth amid speculation Prime Minister Shinzo Abe plans to delay a sales-tax increase and call
an election. South Korea’s central bank kept its policy interest rate steady as widely expected, to assess the
effects of this year’s two rate cuts as well as policy decisions in the United States and Japan. The Bank of
Korea’s monetary policy committee left its base rate unchanged at 2 percent. Singapore’s housing market
may face fire sales with mortgage defaults as the government’s property curbs hurt home sales and prices.
Singapore’s private home prices fell 0.7 percent in the three months ended September, the fourth quarteron-quarter drop, bringing the slide in the past year to almost 4 percent.
US markets closed mostly up; Dow ekes out
LKP Advisory The US markets closed mostly higher on Friday, managing to post a fourth-straight weekly gain. On the
economy front, a gauge of consumer sentiment rose this month to the highest level since mid-2007, as gas
prices and the unemployment rate dropped. The preliminary November reading on the University of
Michigan/Thomson Reuters consumer-sentiment index increased to 89.4 - the highest level since July 2007 from a final October reading of 86.9. According to the report, a gauge of consumers’ views on current
conditions rose to 103 in November from 98.3 in October. Meanwhile, a barometer of their expectations
increased to 80.6 from 79.6. Sales at US retailers rose in October, snapping back from the first decline in
eight months, as plunging gasoline prices gave consumers more money to spend on other goods and
services. The uptick in spending last month, especially when gasoline is stripped out, suggests households
could be prepared to spend more during the holiday season than they have in years. That would be a boon
for the economy because retail sales account for one-third of consumer spending, the main engine of US
economic activity. Retail sales rose by a seasonally adjusted 0.3% last month.
Nasdaq was up by 8.40 points or 0.18 percent to 4,688.54, S&P 500 ended higher by 0.49 points or 0.02
percent to 2,039.82 while, Dow Jones Industrial Average lost 18.05 points or 0.10 percent to 17,634.74.
Index Futures
(OI in '000 Shares)
Total Open Interest
Future
Chg
Spot
Chg
Prem /
14-Nov
(%)
14-Nov
(%)
Disc
14-Nov
Chg (%)
NIFTY
8,417
0.44
8,390
0.38
26.8
25,002
CNXIT
11,596
-0.10
11,572
0.28
24.5
29
-0.8
0.1
BANKNIFTY
17,670
0.19
17,577
0.71
93.1
2,268
4.0
Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares)
Symbol
Total OI
14-Nov % Chg.
Del Qty Cash Market
14-Nov
% Del.
ASIANPAINT
7,250
VOLTAS
6,996
SIEMENS
1,466
7%
249,594
LICHSGFIN
10,599
6%
2,154,035
HDIL
27,868
6%
1,768,528
12%
Prev
% Del.
Increase
Del Qty
Spot
(Rs.)
Fut
(Rs.)
Spot
Chg (%.)
Fut
Chg (%.)
Prem /
Disc
28%
4,195,642
75%
67%
3,382,815
672
676
4.2%
4.7%
3.4
24%
1,739,580
26%
23%
1,061,863
272
272
6.6%
6.6%
0.4
31%
33%
157,009
928
932
4.4%
4.5%
3.6
49%
42%
55,955
421
422
2.6%
2.6%
1.5
11%
357,821
88
89
1.3%
1.4%
0.4
HAVELLS
4,505
5%
573,097
34%
35%
265,779
308
309
2.4%
2.5%
1.4
CESC
1,597
5%
298,547
19%
36%
77,803
757
762
6.2%
6.7%
4.4
SBIN
6,398
4%
1,413,184
24%
35%
725,620
2788
2801
2.5%
2.5%
13.5
ACC
1,387
4%
171,161
66%
51%
16,471
1511
1518
0.6%
0.7%
6.8
12,436
3%
791,129
40%
20%
452,786
127
127
0.2%
0.2%
0.6
Increase in
Del Qty
Spot
(Rs.)
Fut
(Rs.)
Spot
Chg (%.)
Fut
Chg (%.)
Prem /
Disc
317
318
-2.8%
-2.8%
1.3
SYNDIBANK
Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares)
Symbol
SUNTV
TATAMOTORS
Total OI
14-Nov % Chg.
2,177
% Del.
Prev
% Del.
45%
131,072
Del Qty Cash Market
14-Nov
5%
358,237
60%
18,178
5%
2,586,033
51%
48%
1,123,652
524
525
-0.5%
-0.5%
1.5
RANBAXY
8,523
4%
814,117
41%
23%
586,216
653
657
-3.3%
-3.0%
3.3
SRTRANSFIN
1,228
4%
3,663,167
90%
59%
3,028,718
1043
1049
-0.6%
-0.2%
5.7
EXIDEIND
9,898
4%
1,135,962
53%
43%
665,151
161
162
-0.5%
-0.2%
0.8
MCLEODRUSS
3,548
4%
2,295,777
92%
38%
2,193,697
242
244
-1.1%
-0.9%
1.4
BHEL
41,146
4%
1,960,183
20%
36%
86,295
246
242
-0.8%
-0.5%
-3.7
SUNPHARMA
10,335
4%
1,644,815
50%
52%
196,420
887
888
-2.4%
-2.7%
1.1
KOTAKBANK
4,121
2%
525,400
71%
63%
111,888
1094
1099
-1.6%
-1.6%
5.0
M&MFIN
6,279
2%
605,104
42%
25%
133,714
319
321
-2.2%
-2.0%
1.4
Open Interest Break-up
(Rs. in Cr.)
14-Nov
13-Nov
Change in OI
INDEX FUTURES
25,291
25,189
103
0.41
INDEX OPTIONS
117,327
114,065
3,262
2.86
TOTAL INDEX
142,618
139,254
3,364
2.42
STOCK FUTURES
62,160
61,289
871
1.42
STOCK OPTIONS
17,253
16,377
876
5.35
TOTAL STOCKS
79,412
77,666
1,747
2.25
GRAND TOTAL
222,030
216,920
5,111
2.36
FII's
139,245
135,801
3445
2.54
82,785
81,119
1666
2.05
Others
LKP Advisory % Chg
Corporate News
¾
Poddar Developers has launched its new housing project ‘Poddar Aspire’ located at Teesgaon, Kalyan in state of Maharashtra on November
15, 2014. The board of directors at their meeting held on November 14, 2014 has taken the note of it.
¾
HBL Power Systems has received an approval for merger of a 100% subsidiary of HBL Power Systems with the company. The board of
directors at their meeting held on November 14, 2014 has decided for the same.
¾
Anant Raj has received its board’s approval for investment of up to Rs 7.50 crore in the equity share capital of ‘Rolling Construction’, a
subsidiary of the company. The board of directors at their meeting held on November 14, 2014 has decided for the same.
¾
MIC Electronics has received an approval for disinvestment of majority stake holding of Maave Electronics, a 100% subsidiary of the
company, to improve the cash flows of the company. The board of directors at their meeting held on November 14, 2014 has decided for the
same.
¾
Maxwell Industries has received an approval to implement the integrated SAP system in the company in replacement of existing system in
operation. The board of directors at its meeting held on November 14, 2014 has approved for the same.
¾
Southern Ispat and Energy has decided to diversify and de-risk by going into manufacturing of solar grade silicon ingots and bricks used in
solar cells. In this regard, the company has signed an agreement with Gujarat Government to set up the plant and the board has decided to
acquire 200 acres of land in a phased manner.
¾
Shilp Gravures has received an approval to make the further investment of up to Rs 1.00 crore in to JV Company ‘HMSU Rollers (India)’. The
board of directors at its meeting held on November 14, 2014 has approved for the same.
¾
Sundaram Multi Pap has received an approval to permanently close down Nagpur Paper Unit with immediate effect subject to the completion
of necessary formalities. The board of directors at their meeting held on November 14, 2014 has approved for the same.
¾
Sunshield Chemicals will shut down its operations mainly with respect to Ethylene Oxide (EO) based products for the period of about 75
days estimated to begin from December 15, 2014 to restart by March, 2015. EO based products contributes more than 75% of Company's
current production. The balance 25% being anti-oxidants and other non-EO based products will continue to be produced and sold.
¾
Mukta Arts has decided to expand its foot-print in Media Exhibition by deciding to open 6 Cinema Screens in Bahrain to begin with. In this
regard, the company has signed a Memorandum of Understanding (MoU) with V. K. Universal Property Management Co. SPC, Bahrain. It is
proposed to set-up a subsidiary company with suitable structure to implement the decision.
¾
Stone India has received the first major order for ENBIOLET - its patented environment friendly aerobic bio-toilet from a Government Agency
after the Prime Minister launched ‘Swatch Bharat Abhiyan’ for installation in Parks in NCR.
¾
Era Infra Engineering, an integrated infrastructure company with Pan India presence has been awarded three contracts aggregating worth
Rs 440.69 crore. The company has bagged work for development of 4 lanes of Dogal Kalan to Punjab/Haryana Border section of NH-71 (New
NH-52) from km 211+390 to 238+695 in the State of Punjab on EPC Basis under NHDP-IV by Punjab PWD at an estimated cost of Rs 354
crore.
¾
Allahabad Bank is planning to raise BASEL III compliant Tier II Bonds aggregating up to Rs 500.00 crore through Private Placement in one or
more trenches during the current FY 2014-15.
¾
Dynamatic Technologies has signed a global outline agreement with BELL Helicopter, a Textron Inc., company, as a single source supplier
of major airframe assemblies for the BELL 407 GX. The estimated business volume of the agreement is around $90 million over a seven year
period with options to extend through the life of the product.
¾
Reliance Capital Mutual Fund (MF) has bought 10 lakh shares representing 2.02% stake of Simplex Infrastructures at Rs 275 per equity
share of Simplex Infrastructures.
LKP Advisory ¾
Omkar Speciality Chemicals has received an approval for raising of funds up to an amount of Rs 125 crore, by way of a qualified institutions
placement (QIP), on such terms and conditions as may be decided by the board of directors and / or committee of the board. The board of
directors at their meeting held on November 13, 2014 has approved for the same.
¾
GAIL (India), India’s leading natural gas company, along with state gas companies of Turkmenistan, Afghanistan and Pakistan have
established a company that will build, own and operate the planned 1,800-kilometer Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural
gas pipeline.
¾
Tata Motors Group global wholesales in October 2014, including Jaguar Land Rover, were 82,026 units. Cumulative wholesales for the fiscal
were 544,122 units. Global wholesales of all Tata Motors’ commercial vehicles and Tata Daewoo range in October 2014 were 32,049 units.
Cumulative commercial vehicles wholesales for the fiscal were 2,16,345 units.
¾
Sterlite Technologies’ subsidiary -- Sterlite Grid -- has successfully commissioned India’s first Ultra Mega Transmission Project (UMTP). The
first line in this project connecting Purnea and Bihar Sharif was commissioned in September 2013, which was the first 400 KV line to cross the
river Ganges since Independence. The second line which is about 225km long connects Bongaigaon in Assam to Siliguri in West Bengal. The
400 KV double-circuit quad transmission line was commissioned today making the East-North Interconnection Company (ENICL) fully
operational.
¾
Sesa Sterlite is planning to invest $782 million over a three-year period in southern Africa to tap the region’s large undeveloped deposits of
the metal and offset a fall in production volume from its mine in Ireland
¾
Apollo Hospitals Group has diversified into exclusive diabetes management with a new entity called Apollo Sugar. In this regard, the
company will establish a network of 50 Apollo Sugar Clinics by January 2015.
¾
Shasun Pharmaceuticals, a global pharmaceutical organization offering world class capabilities and facilities, has successfully completed
United States Food and Drug Administration (USFDA) inspection at its manufacturing facility at Dudley England. The USFDA audit was held
on first week of November 2014.
¾
Tata Consultancy Services (TCS), a leading IT services, consulting and business solutions organization, has been ranked second on the
FinTech 100, the annual ranking of the top technology vendors that garner more than one-third of their revenue from the financial services
industry.
¾
Acrysil has received an approval for acquisition of UK based kitchen sinks distribution company namely Homestyle Products. The board of
directors at their meeting held on November 13, 2014 has approved for the same. The board also approved for investment in wholly owned
subsidiary in UK and to grant Loan to wholly owned subsidiary in UK.
¾
Videocon Telecom, part of the diversified $4 billion Videocon Group, has added 1.71 lakh new mobile subscribers in October, 2014.
Following the addition, the company’s total subscriber count stood at 61.13 lakh with a market share of 0.80%.
¾
Mahanagar Telephone Nigam (MTNL), the state owned telecom firm which operates in Delhi and Mumbai, has added 11,907 mobile
subscribers in October, 2014. Following the addition, the company’s total subscriber count stood at 33.20 lakh with a market share of 0.44%.
¾
Idea Cellular, one of the biggest cellular carrier of the country, has added 18.50 lakh new mobile subscribers in October, 2014. Following the
addition, the company’s total subscriber count stood at 14.54 crore. The country’s third-largest operator has a market share of 19.07%.
Economy
¾
India, US resolve food security row to end WTO impasse
Moving closer to end the log jam at WTO over the signing of Trade Facilitation Agreement (TFA), India and the US successfully resolved their
differences on the issue of public stockholding for food security purposes. According to the agreement, the US will support India's proposal at
WTO that 'peace clause', crucial for uninterrupted implementation of India's food security programme, should continue indefinitely till a
permanent solution is found.
LKP Advisory The agreement will enable India to continue procurement and stocking of foodgrain for distribution to poor under its food security programme
without attracting any kind of action from WTO members even if it breaches the 10 per cent subsidy cap as prescribed by the multilateral trade
body. The agreement comes two days ahead of the G-20 Summit in Australia, which will be attended by Prime Minister Narendra Modi and
other world leaders including the US President Barack Obama. WTO related matters are likely to come up during discussion between world
leaders.
Earlier, in July 2014, India had made it clear to WTO that it would not agree to the Trade Facilitation Agreement (TFA) unless there is a
permanent solution on safeguards to run food security programmes. The WTO’s Ministerial Conference at Bali last December had provided for
only a four-year “peace clause” during which no member country would be legally barred from implementing food security programmes even if
the farm subsidies breached the caps imposed by the original Agreement on Agriculture (AoA). India had, however, rejected the temporary
peace clause and insisted on its right to provide unlimited subsidies until a “permanent solution” to the issue was found. This stance attracted
strong criticism, especially from developed countries including the US, the EU and Australia.
¾
October WPI inflation eases at five-year low of 1.77% v/s 2.38% in September
Easing at lowest level since October 2009, India's main inflation gauge, based on monthly WPI, stood at 1.77% for the month of October as
compared to 2.38% in the previous month and 7.24% during the corresponding month of the previous year. The reading was way below the
street expectation of a 2% mark for the month under review. However, August inflation figures were revised upwards to 3.84% from 3.74%
earlier. Meanwhile, build up inflation rate in the financial year so far was 2.00% compared to a build up rate of 6.23% in the corresponding
period of the previous year. The reading, which was lowest in five years was mainly on the back of lower food and fuel inflation.
Fuel & Power index, which occupies 14.91% weight in the overall index, declined by 1.3% to 210.7 (provisional) from 213.4 (provisional) for
the previous month due to lower price of furnace oil (4%), aviation turbine fuel (3%), petrol and bitumen (2% each) and kerosene and high
speed diesel oil (1% each). However, the price of lubricants (1%) moved up.
Meanwhile, the index of Manufactured Products, which occupies the majority 64.97% weight in WPI index, declined by 0.5% to 174.2
(provisional) from 175.1 (provisional) in September.
¾
DERC hikes power tariff by up to 7%
In a move, which is likely to increase the cost of electricity bills for consumers in national capital, Delhi Electricity Regulatory Commission
(DERC) approved the Power Purchase Cost Adjustment charge (PPAC) under which power tariff was hiked by up to 7%. The regulator, who
will review the surcharge again in February, has hiked the tariff to help the power distribution companies to recover their power purchase cost.
The DERC approved a hike of 7% for BSES Yamuna Power (BYPL), 4.5% for BSES Rajdhani Power (BRPL) and 2.5% for Tata Power. BRPL
supplies electricity of south and west Delhi, while Tata Power supplies it to north Delhi and BYPL supplies to east and central Delhi.
While hiking the power tariff by up to 7.5% for domestic consumers, the DERC in July had withdrawn Power Purchase Adjustment Cost
(PPAC) of around 8% till October. The regulator had introduced PPAC in 2012 to help the private power distribution companies recover
additional cost on account of increase in coal and gas prices. However, its withdrawal had resulted into marginal decline of tariff for the
consumers, whose monthly consumption does-not exceed 400 units. Delhi has seen series of hike in power tariff in the past two years. The
tariff was hiked by 22% in 2011, followed by 5% hike in February 2012. The tariff was increased by up-to to 2% in May, 2012 and again by
26% for domestic consumers in July, 2012. It was hiked by up to three percent in February last year and again by 5% in August.
¾
India’s gold demand surges 39% to 225.1 tonnes in Q3 2014: WGC
India’s gold demand during July-September quarter this year shot up 39 percent to 225.1 tonnes against 161.6 tonnes in third quarter of 2013
mainly driven by strong buying from the jewellery sector, as per the World Gold Council (WGC) report. The WGC also attributed the sudden
increase in country’s gold demand to unusual low base of third quarter of 2013 that was impacted by the introduction of a range of duty
increases and restrictions.
The report further highlighted that the total jewellery demand was up by 60 per cent at 182.9 tonnes during third quarter of current year against
114.5 tonnes in the same period last year. On global front, the WGC report highlighted that global gold demand fell by 2 percent to five year
low at 929 tonnes in the third quarter. China, which was top gold consumer in last year, saw a 39 percent drop in jewellery consumption as
LKP Advisory well as a 30 per cent fall in bar and coin investment. India once again took over as the world's biggest gold consumer, buying 225.1 tonnes of
gold jewellery, coins and bars last quarter, compared to 182.7 tonnes in China.
¾
Govt hikes excise duty on petrol and diesel by Rs 1.50 per litre to boost revenues
In order for boosting revenues and contain budget borrowing, the government has raised excise duty on petrol and diesel by Rs 1.50 per litre.
While the duty on branded petrol excise was hiked to Rs 3.85/litre from Rs 2.35/litre, that on unbranded petrol was hiked to Rs 2.70/litre from
Rs 1.20/litre. Additionally, excise duty for branded diesel was raised to Rs 5.25/litre from Rs 3.75/litre and that of unbranded diesel was hiked
to Rs 2.96/litre from Rs 1.46/litre. This development doesn’t come as much of a surprise as reports earlier only had hinted that government
was contemplating this move in order to ensure that the benefit of recent sharp decline in international oil prices, should not be limited to
customers in the form of price cut in fuel prices, but also to the exchequer. The hike in excise duty is expected to mop up additional revenue of
about Rs 14,000 crore to the exchequer.
International oil prices have fallen nearly 25% in the past five months, in step with a global commodities decline. The country's average crude
import cost, as measured by the Indian crude basket has fallen to $80.87 per barrel (Rs 4,970) on November 7 from $108.05 per barrel (Rs
6,331) on May 26, the day the Narendra Modi government assumed office. Notably, this development comes a little ahead of fortnightly review
of the oil marketing companies, Indian Oil Corp (IOC ), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) on Saturday.
However, this hike is not expected to burden consumers as oil companies plan to adjust the excise hike with a reduction in retail rates that
was due this weekend.
¾
India to witness average growth of 6.7 % during 2015-19: OECD
The Organisation for Economic Cooperation and Development (OECD), in its latest economic outlook report for Asian countries, has
highlighted that Indian economy is expected to witness an average growth of 6.7 % over the 2015-19 period and a further boost would depend
on reform plans of the government. The OECD highlighted that these reforms include promoting domestic and foreign investments, creating
jobs and improving food security, raising standards of education and skills development, building new infrastructure, enhancing water
governance and increasing the country's overall competitiveness, particularly in the manufacturing sector.
After two years of slowdown, Indian economy is showing signs of revival and expanded at its fastest pace in more than two years by 5.7% y-oy during Q1FY15 as compared to 4.7% growth recorded in same quarter last year and 4.6% in Q4FY14. Regarding economic outlook for
Asian countries, the OECD’s report has stated that Emerging Asia is set for healthy growth over the medium term even as outlook for many
OECD countries remains subdued. Annual GDP growth for the ASEAN-10 countries is forecast to average 5.6% over 2015-19. China's growth
is expected to slow to 6.8% over 2015-19 period. However, the Paris based think tank also highlighted that India and China could face
significant challenges in future.
Source: Reuters, Ace Equity & LKP Research
LKP Advisory Tech View
CNX NIFTY
TECHNICAL VIEW
Nifty continued to trade in a range with 8400 level acting as strong immediate resistance. Market breadth as well as sector participation which have
been causes of caution since last few trading sessions were seen improving which indicates that trend remains intact in the stock. Nifty is expected
to consolidate for a brief period before resuming a new trend. The supports continue to be seen at 8200 level in short term.
IMPORTANT LEVELS FOR THE DAY
Support
BSE
NSE
BANKNIFTY
S1
28,074
8346
17412
S2
28,184
8305
17266
R1
27,896
8412
17647
R2
27,787
8454
17793
Pivot
27,985
8,379
17,529
Resistance
.
LKP Advisory PIVOT POINTS
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
ACC
1511
1538
1521
1508
1494
1477
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
GAIL
490
514
498
485
472
456
ADANIENT
490
505
495
487
478
468
GLENMARK
771
798
785
775
765
753
ADANIPORTS
297
305
300
296
292
287
GMRINFRA
20
21
20
20
20
19
ADANIPOWER
46
47
46
46
45
44
GODREJIND
298
307
301
297
292
286
ALBK
119
125
121
119
116
113
GRASIM
3569
3675
3623
3582
3541
3490
AMBUJACEM
230
238
232
228
224
219
HAVELLS
308
320
313
307
301
293
HCLTECH
1611
1683
1649
1622
1595
1561
HDFC
1127
1164
1141
1122
1103
1080
930
954
938
925
912
896
88
93
90
88
86
84
2964
3042
2994
2956
2918
2871
ANDHRABANK
87
90
88
86
84
82
APOLLOHOSP
1109
1143
1126
1112
1098
1081
APOLLOTYRE
237
245
240
237
233
229
HDFCBANK
ARVIND
282
289
285
281
278
274
HDIL
54
56
55
54
53
52
ASHOKLEY
ASIANPAINT
HEROMOTOCO
672
707
683
663
643
619
HEXAWARE
221
231
226
222
218
213
1120
1163
1138
1118
1099
1074
HINDALCO
157
166
160
156
151
145
477
488
481
476
470
463
HINDPETRO
555
582
568
557
546
532
BAJAJ-AUTO
2653
2714
2675
2643
2611
2571
HINDUNILVR
756
772
764
758
751
744
BANKBARODA
1015
1041
1024
1009
995
977
HINDZINC
162
169
165
163
160
156
BANKINDIA
285
294
289
285
280
275
IBREALEST
81
88
83
80
76
72
BATAINDIA
AUROPHARMA
AXISBANK
1314
1362
1332
1308
1284
1254
1692
1711
1701
1692
1684
1673
BHARATFORG
909
930
920
911
903
893
IDBI
72
75
73
71
69
67
BHARTIARTL
388
400
394
390
385
380
IDEA
162
166
164
163
161
159
BHEL
246
261
251
244
236
226
IDFC
155
159
157
155
153
151
BIOCON
441
454
447
442
437
431
IFCI
39
40
39
39
38
37
BPCL
735
761
745
733
720
704
IGL
435
463
447
433
420
403
CAIRN
268
279
272
265
259
251
INDIACEM
109
115
112
109
106
103
CANBK
403
418
409
402
395
387
INDUSINDBK
731
749
737
727
717
704
CENTURYTEX
575
588
581
575
569
562
INFY
4192
4244
4216
4192
4169
4141
CESC
757
821
778
743
708
665
IOB
58
59
59
58
57
56
CIPLA
609
647
629
615
601
584
IOC
357
375
363
353
342
330
COALINDIA
356
372
361
353
345
335
IRB
268
275
270
267
263
258
1984
2130
2055
1995
1934
1860
ITC
369
374
371
369
367
365
CROMPGREAV
190
197
193
190
187
183
JINDALSTEL
159
168
162
157
152
146
DABUR
231
236
233
232
230
227
JISLJALEQS
82
85
84
82
81
79
COLPAL
DISHTV
63
65
64
63
62
60
1724
1808
1769
1737
1706
1667
142
147
144
142
139
137
DRREDDY
3435
3540
3484
3440
3395
3339
EXIDEIND
161
167
164
161
159
FEDERALBNK
140
150
145
141
137
DIVISLAB
DLF
LKP Advisory ICICIBANK
JPASSOCIAT
35
38
36
34
32
29
JPPOWER
14
16
15
14
13
12
JSWENERGY
76
79
77
76
74
73
JSWSTEEL
1237
1293
1259
1231
1203
1169
156
JUBLFOOD
1466
1538
1492
1455
1418
1373
133
JUSTDIAL
1490
1518
1503
1491
1478
1464
PIVOT POINTS
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
KOTAKBANK
1094
1134
1114
1098
1081
1061
TATACHEM
425
436
430
424
419
412
137
145
140
137
133
128
TATACOMM
436
451
443
436
429
420
74
76
75
74
73
72
TATAGLOBAL
155
158
157
155
153
152
421
445
430
419
407
392
TATAMOTORS
524
550
537
527
516
503
KTKBANK
L&TFH
LICHSGFIN
LT
1622
1654
1636
1621
1606
1588
TATAMTRDVR
323
330
327
324
321
317
LUPIN
1444
1476
1458
1443
1429
1411
TATAPOWER
89
94
90
88
85
82
M&M
1256
1273
1262
1253
1245
1234
TATASTEEL
478
497
486
476
466
454
M&MFIN
319
339
330
322
314
304
TCS
2606
2647
2620
2598
2575
2548
MARUTI
3330
3364
3346
3331
3317
3299
TECHM
2638
2720
2680
2647
2614
2573
MCDOWELL-N
2723
2810
2764
2728
2692
2646
TITAN
375
383
379
375
372
367
MCLEODRUSS
242
252
247
244
240
236
UBL
703
727
715
706
697
685
32355
32932
32634
32392
32151
31852
88
91
89
87
85
83
NHPC
21
21
21
20
20
20
2616
2679
2638
2606
2573
2532
NMDC
155
161
157
154
151
147
UNIONBANK
217
226
221
217
213
208
UNITECH
MRF
NTPC
143
147
145
142
140
137
OFSS
3301
3401
3344
3299
3253
3197
ONGC
393
404
397
391
385
ORIENTBANK
290
303
294
287
PETRONET
197
204
201
198
21
23
22
21
20
18
362
373
367
361
356
349
378
VOLTAS
272
290
277
266
256
242
279
270
WIPRO
564
574
569
564
560
554
195
192
YESBANK
689
710
700
692
685
675
ZEEL
376
388
381
375
369
363
281
289
285
281
278
273
PNB
939
970
955
942
929
913
POWERGRID
144
148
146
144
143
140
93
98
96
94
92
89
RANBAXY
653
714
685
661
637
608
RCOM
103
108
105
103
100
98
RECLTD
305
315
308
302
297
290
RELCAPITAL
480
492
485
479
473
465
RELIANCE
969
988
978
971
963
953
RELINFRA
621
641
629
619
610
598
RPOWER
72
73
73
72
71
71
SAIL
86
95
89
84
79
73
SBIN
2788
2892
2825
2772
2718
2651
928
980
944
916
888
852
1043
1094
1068
1046
1024
998
SSLT
240
252
245
239
232
225
SUNPHARMA
887
947
918
895
872
843
SUNTV
317
336
327
320
313
304
SYNDIBANK
127
130
128
126
125
123
SIEMENS
SRTRANSFIN
LKP Advisory ULTRACEMCO
UPL
PFC
PTC
UCOBANK
The information in this documents has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and is for general guidance only. While every effort is made to ensure the accuracy and completeness of information contained, the company makes no guarantee and assumes no liability for any errors or omissions of the information. No one can use the information as the basis for any claim, demand or cause of action. LKP Securities Ltd., and affiliates, including the analyst who have issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of the companies mentioned herein or engage in any other transaction involving such securities and earn brokerage or compensation or act as advisor or have other potential conflict of interest with respect to companies mentioned herein or inconsistent with any recommendation and related information and opinions. LKP Securities Ltd., and affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. LKP Securities Ltd. Ph: (91‐22) 66351234 FAX: (91‐22) 66351249 E Mail: [email protected] web: http://www.lkpsec.com LKP Advisory