Morning Notes

8 Jan, 2018

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Indices 5-Jan 4-Jan % Chg. Major Indices 5-Jan 4-Jan % Chg. ‎₹ Crs

S&P BSE SENSEX 34,154 33,970 0.54% Dow Jones Industrial Average25,296 25,075 0.88% 05-Jan Buy Sell Net

S&P CNX NIFTY 10,559 10,505 0.51% Nasdaq Composite Index 7,137 7,078 0.83% FII / FPI Investments 5,812 5,230 581

NIFTY MID100 FREE 21,500 21,308 0.90% CAC 40 Index 5,471 5,414 1.05% DII's Investments 3,985 3,742 243

NIFTY SML100 FREE 9,399 9,310 0.95% FTSE 100 Index 7,724 7,696 0.37% FII's contribution to the total turnover 25%

DAX Index 13,320 13,168 1.15% DII's contribution to the total turnover 17%

NIFTY MEDIA 3,530 3,479 1.45% Major Asian Indices 5-Jan 4-Jan % Chg. ‎₹ Crs

NIFTY CONSUMPTION 5,139 5,080 1.15% Hong Kong 30,815 30,736 0.25% 05-Jan Index Fut Index Opt Stock Fut Stock Opt

NIFTY INFRA 3,737 3,702 0.94% Nikkei 225 23,715 23,506 0.89% Net -1,201 716 91 -20

NIFTY FMCG 26,914 26,690 0.84% Korea 2,498 2,466 1.26% OI 16,998 61,050 70,346 5,848

NIFTY AUTO 11,930 11,843 0.73% Shanghai 3,392 3,386 0.18% Chg.OI 13.4% 9.0% 1.4% 7.2%

NIFTY REALTY 347 345 0.73% Taiwan 10,880 10,849 0.29% FIIs' contribution to the total F&O turnover 25%

NIFTY PHARMA 9,701 9,634 0.70%

NIFTY BANK 25,602 25,463 0.55% Commodities (MCX) 5-Jan 4-Jan % Chg. 5-Jan 4-Jan % Chg.

NIFTY METAL 4,130 4,112 0.45% Aluminium ( 31JAN2018 ) 139.2 142.0 -1.97% USDINR 29-JAN-2018 63.52 63.56 -0.07%

NIFTY FIN SERVICE 10,473 10,429 0.42% Copper ( 28FEB2018) 452.5 457.7 -1.14% EURINR 29-JAN-2018 76.65 76.71 -0.08%

NIFTY IT 11,634 11,591 0.37% Crude (19JAN2018) 3,887 3,921 -0.87% JPYINR 29-JAN-2018 56.17 56.54 -0.65%

NIFTY ENERGY 14,250 14,247 0.02% Gold ( 05FEB2018) 29,217 29,230 -0.04% GBPINR 29-JAN-2018 86.07 86.17 -0.11%

NIFTY PSU BANK 3,695 3,720 -0.69% Silver (05MAR2018) 39,253 39,276 -0.06%

BSE Sectoral Indices

Curr. Derivatives (NSE)

FII's in Derivatives (F&O)

FII's & DII's in equity

Company LTP Chg % Chg Company LTP Chg % Chg

YESBANK 333 16 5.0 INFRATEL 372 -7 -1.8

BAJFINANCE 1818 64 3.7 HINDALCO 276.2 -4 -1.3

ADANIPORTS 424 14 3.4 UPL 774 -8 -1.0

INDUSINDBK 1700 53.4 3.2 HINDPETRO 415 -4 -0.9

BHARTIARTL 540 17 3.2 IOC 384 -3 -0.8

Company LTP Chg % Chg Company LTP Chg % Chg

IDEA 116 11 10.7 CUMMINSIND 957 -21 -2.1

IDFCBANK 58 4 7.0 INFRATEL 373 -5 -1.4

SHREECEM 19018 959 5.3 CROMPTON 279 -4 -1.3

YESBANK 333 16 5.0 BANKBARODA 162 -2 -1.2

GRASIM 1211 45 3.9 VAKRANGEE 406 -5 -1.2

Company LTP Chg % Chg Company LTP Chg % Chg

IDFCBANK 58 4 7.0 RAJESHEXPO 824 -21 -2.5

UBL 1151 72 6.6 CUMMINSIND 957 -21 -2.1

INDHOTEL 133 7 5.4 JINDALSTEL 239 -5 -2.0

ADANIENT 193 10 5.2 LTI 1111 -22 -1.9

ADANIPOWER 46 2 5.0 UNIONBANK 145 -2 -1.4

Company LTP Chg % Chg Company LTP Chg % Chg

GMBREW 1173 195 20.0 AURIONPRO 248 -15 -5.9

INDOSOLAR 12 2 20.0 RAMANEWS 37 -2 -5.8

SUBROS 377 63 20.0 DIAPOWER 21 -1 -5.2

VIPCLOTHNG 98 11 13.0 BRFL 97 -5 -5.0

SYMPHONY 1953 224 13.0 STEELXIND 44 -2 -5.0

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Domestic Market View

Markets to get a positive start of the new week on

sanguine global cues

The Indian markets coming out of the consolidation

mood surged in the last session and the major bourses

touched their fresh record highs. Today, the start is likely

to be in green on positive global cues, though traders

will be concerned with the Central Statistics Office (CSO)

first advance estimates of GDP growth for current

financial year, stating that the Indian economy is

expected to grow at a slower 6.5 percent in 2017-18

compared to the 7.1 percent in 2016-17. According to

CSO, the Gross Domestic Product (GDP) at constant

(2011-12) prices for 2017-18 is likely to attain a level of

Rs 129.85 lakh crore. However, there will be some

support with report that credit growth after a long gap

grew in double digits to 10.65 per cent at Rs 80,96,727

crore in the fortnight ended December 22, 2017 due to

the base effect. Meanwhile, credit rating agency ICRA’s

statement that the narrower-than-expected win in

Gujarat and upcoming polls in other states will lead to a

reorientation of priorities for the government with a

greater focus expected on the farm and small businesses

sectors. It has said that government may opt for fiscal

deficit range in Budget. There will be some buzz in the

aviation stocks, as the government has if capping of

airfares get implemented it would result in increased

cost of air travel for 99 per cent of the passengers.

Morning Notes

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Domestic Market Overview

Bulls tighten grip on Dalal Street; Nifty surpasses 10,550 mark

Friday turned out to be a remarkable day of trade for Indian equity benchmarks where bulls

tightened their grip on Dalal Street, with Nifty and Sensex hitting fresh record highs and ending

above their crucial 10,550 and 34,150 levels, respectively for the first time ever. The markets’ mood

remained up-beat throughout the day and benchmarks fervently gained from strength to strength,

as investors continued hunt for fundamentally strong stocks. Sentiments remained up-beat

throughout the session with NITI Aayog’s expectation that the first strategic disinvestment of Central

Public Sector Enterprises will be conducted within the current financial year. It said that the process

of divestment is being carried out by Department of Investment and Public Asset Management

(DIPAM) and the first transactions are expected in the current financial year after a long gap of 14

years. Some support also came with the Union Cabinet approving the revised model concession

agreement for public private partnership projects in major ports. The amendments were made in the

MCA to attract more investments in the port sector and are expected to clear the hurdles created by

some of the provisions in the current model concession agreement.

Some support also came with Finance Minister Arun Jaitley’s assurance that the positive impact of

the government’s reform measures would get reflected in the medium to long term and noted that

India is the only economy which could maintain a growth rate of 7-8 percent amid challenges like

the country’s weak public sector banks (PSBs) and initial disturbance of demonetisation, Goods and

Services Tax (GST). Meanwhile, traders’ focus shifts to third quarter earnings with Tata Consultancy

Services (TCS) and Infosys scheduled to report their Q3 numbers next week, amid signs the economy

is recovering after the withdrawal of high-denomination currency bills in late 2016 and the

introduction of the GST last year.

The infra stocks remained on buyers’ radar after the government approved Rs 12,178 crore worth of

infrastructure projects and an AIIMS in Bilaspur in Himachal Pradesh to be constructed at a cost of Rs

1,351crore. Shares of liquor companies rallied on BSE after GM Breweries reported a strong results

for the third quarter ended December 2017 of current fiscal (Q3FY18). IT stocks exhibited mixed

trend on report that the US is considering new regulations to prevent the extension of H-1B visas as

part of president Donald Trump's 'Buy American, Hire American' initiative, a move which could hit

tech firms and hundreds of thousands of Indian IT professionals.

Global Market Overview

Asian markets end mostly higher on Friday

Asian equity markets ended mostly in green on Friday even as regional gains remained modest

ahead of the release of the closely-watched US jobs report for December, due later in the day. The

jobs report is expected to show an increase of about 190,000 jobs in December after an addition of

228,000 jobs in November. The unemployment rate is expected to hold at 4.1 percent. Japanese

shares extended gains from the previous session to probe 26-year highs as the yen held broadly

lower on improved risk appetite. Further, Chinese shares ended higher on growth optimism. China’s

services sector activity expanded in December on solid growth in new business, with the outlook

improving to a six-month high, a private sector survey showed on Thursday. Another private business

survey showed growth in China’s manufacturing sector unexpectedly rose to a four-month high in

December thanks to a surge in new orders.

US markets end first week of 2018 on stellar note

The US markets closed higher on Friday, to end the first week of 2018 on a stellar footing, marked by

four straight positive session following lackluster jobs data. Friday’s rally meant that none of the

equity indexes have posted a down day so far in 2018. For the S&P 500 and the Nasdaq, it was the

fourth straight closing record, while the Dow carved out its third in a row. The broad-market

benchmark has closed at a record on the first four trading days of the New Year, the first time it has

done so since 1964. The gains over the week have been buoyed by the recently passed corporate

tax-cut package, rising commodity prices, and robust corporate earnings. Solid economic data and

low bond yields have also been cited as contributing factors.

Morning Notes

LKP Advisory

(OI in '000 Shares) Future Chg Spot Chg Prem /

5-Jan (%) 5-Jan (%) Disc 5-Jan Chg (%)

NIFTY 10,573 0.45 10,559 0.51 14.4 26,286 5.80

NIFTYIT 11,613 0.29 11,634 0.37 -20.5 31 -1.12

BANKNIFTY 25,637 0.36 25,602 0.55 34.7 1,735 7.99

Symbol Prev Increase Spot Fut Spot Fut Prem /

5-Jan % Chg. 5-Jan % Del. % Del. Del Qty (‎₹) (‎₹) Chg (%.) Chg (%.) Disc

UBL 2,554 45% 849,758 38% 11% 807,745 1,151 1,157 7.0% 6.8% 5.7

ADANIPORTS 14,285 18% 1,569,487 26% 26% 1,026,528 424 426 3.4% 3.5% 1.8

EQUITAS 22,877 15% 4,018,837 34% 20% 3,609,983 157 158 7.3% 7.4% 0.8

CASTROLIND 20,331 13% 3,115,021 62% 48% 2,689,903 195 196 1.6% 2.1% 1.2

APOLLOTYRE 10,926 13% 2,251,131 40% 56% 835,035 281 281 3.6% 3.5% 0.3

RBLBANK 6,172 12% 2,312,948 49% 70% 1,653,781 540 542 4.6% 4.7% 2.6

VGUARD 3,663 12% 579,363 32% 20% 462,156 238 239 1.2% 1.2% 1.5

JUSTDIAL 4,067 11% 886,325 11% 5% 782,561 551 553 6.8% 6.7% 2.0

AJANTPHARM 829 9% 86,136 28% 19% 46,711 1,523 1,530 3.5% 2.8% 6.6

REPCOHOME 815 9% 71,640 23% 34% 26,223 715 719 2.7% 2.8% 4.1

Symbol Prev Increase in Spot Fut Spot Fut Prem /

5-Jan % Chg. 5-Jan % Del. % Del. Del Qty (‎₹) (‎₹) Chg (%.) Chg (%.) Disc

ARVIND 8,498 28% 1,965,784 65% 17% 1,702,597 448 450 -1.4% -0.8% 2.4

ICICIBANK 62,871 8% 3,924,779 58% 50% 513,091 313 313 -0.5% -0.8% 0.2

INFY 31,352 8% 4,014,125 69% 69% 701,485 1012 1014 -0.3% -0.5% 1.6

PAGEIND 39 8% 11,870 44% 33% 6,920 24455 24502 -0.1% 0.0% 47.0

BPCL 11,223 7% 1,902,534 59% 61% 174,462 488 490 -0.8% -0.8% 2.2

HINDZINC 7,088 3% 506,897 38% 40% 14,034 314 315 -1.4% -1.2% 1.6

HEROMOTOCO 1,491 3% 157,545 65% 67% 15,716 3745 3759 -0.1% 0.0% 14.1

DALMIABHA 654 3% 143,996 69% 63% 93,991 3104 3124 -0.2% 0.2% 19.9

ANDHRABANK 24,210 2% 964,542 33% 22% 8,985 59 59 -1.7% -1.3% 0.3

UNIONBANK 23,112 1% 1,378,842 33% 17% 561,581 145 146 -1.7% -1.6% 0.4

Total Open Interest

Total OI

Index Futures

Del Qty Cash Market

Total OI Del Qty Cash Market

Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares)

Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares)

Morning Notes

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Corporate News

NBCC (India) has received the contract from Ecotourism Development Corporation of Uttarakhand, Dehradun for Construction of

Kotdwar-Ramnagar Kandi Road under Green Infrastructure/Green Road Project amounting around Rs 2000 crore, as project

management consultant.

Sampre Nutritions has decided to launch its own products in the market to encash the deep knowledge of company in various

candy flavors. In the first phase, the company proposed to launch 6 flavors of Hard Boiled Candy under ‘Sampre’ Brand.

Bella Casa Fashion & Retail has entered into a licensing agreement with UTV Software Communications (Disney) on December 13,

2017 for co-creating, manufacturing and selling Disney & Marvel character based home textiles products under its brand name

‘Bella Casa’.

PVR has opened 12 screens multiplex at Vega City, Bannerghatta Main Road in Bengaluru on January, 05, 2018. This multiplex is

equipped with 4K projection system, next-genergtion 3D-enabled screens and 7.1 Digital Dolby surround sound in all auditoriums.

With this launch, PVR now operates the largest multiplex network with 612 screens at 132 properties in 51 cities.

Tata Steel has reported marginal fall of 1.22 percent in its saleable steel production to 3.24 million tonnes (MT) in Q3 (October-

December) 2017-18 compared to 3.28 MT in the corresponding quarter of 2016-17. However, in the nine month period from April-

December of FY 18, the company's Indian production was higher by 10.67 percent at 9.23 MT against 8.34 MT production in

previous comparable period.

Force Motors has reported the production, sales and export of the products manufactured by the company during the month of

December 2017. The company’s production of Small Commercial Vehicles (SCV) & Light Commercial Vehicles (LCV) stood at 1,326

units and Utility Vehicles (UV), Sports Utility Vehicles (SUV) & Tractors stood at 1,321 units.

Maruti Suzuki India has reported 13.75% rise in its production to 1,22,096 units in December 2017, as compared to 1,07,338 units

in December 2016. Of total, the company manufactured 32,418 vehicles under mini segment (including Alto, Wagon R) in

December 2017, as against 30,575 units manufactured in corresponding month previous year.

Seamec has entered into a contract for charter hire of vessel ‘SEAMEC III’ with IGOPL Offshore for undertaking a job in Mumbai

High Offshore. The charter is for firm period of 100 days with option for extension. The contract will commence around January 10,

2017. The value of charter during firm period is $2.4 million.

Navin Fluorine International has received an approval for sale of up to 16,00,000 equity shares held by the company in NOCIL (out

of total 38,78,550 equity shares - 2.36%) at appropriate market price in the best interest of the company on BSE and/or National

Stock Exchange of India (NSE). The board of directors at its meeting held on January 5, 2018 has given approval for the same.

Indowind Energy has received an approval to raise capital of

Rs 30 crore by way of issue of QIP for Rs 20 crore and issue of warrants to the promoters under preferential issue for Rs 10 crore.

This step has been taken in order to meet the expansion and repowering requirements of the company. The board of directors at

its meeting held on January 05, 2018 has given approval for the same.

Infosys has been selected by Proximus, the largest telecommunications company in Belgium, to implement Excite – a business

transformation program aimed at delivering superior digital customer experiences for its enterprise clients. The multi-year program

will strengthen Proximus’ leadership in the professional services market by replacing legacy IT systems, streamlining processes and

deploying advanced tools for quoting, selling, ordering, billing, invoicing and more.

Elantas Beck India has executed Deed of Sale on January 5, 2018 for sale of its property (not being an undertaking) situated at Beck

House, Erandwane, Pune, admeasuring around 2238.25 sq. mts., to Pitre Business Ventures LLP, Pune, at a lumpsum consideration

of Rs 25 crore.

Pidilite Industries has received its board’s approval for investment in equity shares of CIPY Polyurethanes (CIPY). The proposed

shareholding of the company in CIPY post such investment will be 70% initially, thereby making CIPY a subsidiary of the company.

The acquisition of shares of CIPY is not a related party transaction.

Morning Notes

LKP Advisory Source: Reuters, ACE Equity & LKP Research

V-Mart Retail has opened a new fashion store in the state of Uttar Pradesh. With this, the tally of stores in Uttar Pradesh is 52

fashion stores and 17 composite stores. This takes the total number of stores to 168 stores in 142 cities across 14 states, with 37

composite stores & 131 fashion stores with a total area of around 14.1 lakh square feet.

Dilip Buildcon has incorporated a subsidiary namely ‘DBL-VPR Mining’ for exploring sector of Mining Activities including but not

limited to coal mining. The said company is jointly promoted by Dilip Buildcon and VPR Mining Infrastructure, with equity

participation of 74% and 26% respectively, in the Equity Share capital of the said company.

IL&FS Transportation Networks’ wholly owned subsidiary --- ITNL Offshore will issue RMB denominated Notes guaranteed by the

company. The proceeds will be primarily utilised for redeeming the Notes issued by the subsidiary in 2015. The Notes are proposed

to be listed on the Singapore Stock Exchange and the issue is expected to be launched in the near future subject to market

conditions.

Lupin has launched Flucytosine capsules USP, 250 mg and 500 mg, having received an approval from the United States Food and

Drug Administration (USFDA), which are AB rated generic equivalent of Valeant Pharmaceuticals International Inc’s ANCOBON

Capsules, 250 mg and 500 mg, indicated for the treatment of serious infections caused by susceptible strains of Candida and/or

Cryptococcus.

Havells India has unveiled a range of unique water purifiers capable of handling new age pollutants at Chandigarh. These purifiers

maintain the pH balance in water and add various essential minerals and trace elements lost during the reverse osmosis (RO)

process.

Ahluwalia Contracts (India) has secured new orders worth around Rs 395.21 crore for construction of institutional, & commercial

including Electrical, Plumbing & Firefighting Services.

Subros, after receiving notification from Ministry of State for Road Transport and Highways about introduction of blower in Truck

application for N2 (3.5 to 12 tonnes) and N3 (above 12 tonnes) category trucks, has started supplying blower for trucks from

January 1, 2018. The company has also tied up businesses from Ashok Leyland, Swaraj Mazda Isuzu, Mahindra Truck and Bus

Division and Tata Motors.

Royal Orchid Hotels has opened its new hotel in Pushkar named ‘Regenta Resort Pushkar Fort, Pushkar’. Providing peaceful

getaway amidst the Aravalli Hills, Royal Orchid group takes the number of properties to 48.

Sukhjit Starch & Chemicals’ wholly owned subsidiary -- Sukhjit Mega Food Park & Infra has received a sum of Rs 15 crore as the first

installment of subsidy from the Ministry of Food Processing Industries (MOFPI), Government of India. The commissioning of the

project is going on as per the schedule in accordance with the guidelines of the Ministry of Food Processing Industries.

HK Trade International has decided to explore the possibilities to diversify the existing business of the company into alternative

energy segment, since the alternative energy segment have high potential in the market which will benefit the interest of the

shareholders.

State Bank of India (SBI) is planning for long term fund raising in single / multiple tranches up to $2 billion under Reg-S/144A,

through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during FY

2017-18 and FY 2018-19. The meeting of the Executive Committee of the Central Board is scheduled on January 08, 2018, to

consider the same.

Tata Motors’ subsidiary -- Jaguar Land Rover (JLR) has sold 11,394 units in December 2017, which was lower by 9.4% compared

with 12,573 units sold in year-ago. Land Rover sales reached 7,980 units sold, down only 4% from December 2016, while Jaguar

sales for the month were 3,414 units. For the full year 2017, Jaguar Land Rover US sales reached 114,333 units, up 9% compared to

105,104 units in 2016, and establishing a new all-time US sales record for the combined brands.

Palred Technologies is planning to invest in subsidiary companies. The meeting of the Board of Directors of the company will be

held on January 08, 2018, to consider the same.

Morning Notes

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Parag Milk Foods has launched Gowardhan Fresh ‘n’ Thick Dahi in Delhi. Made from 100% fresh & pure, high quality cow’s milk,

Gowardhan Dahi is easy to digest and contains natural proteins & calcium. The product is available in tubs of 400 gm, 200 gm, 80

gm and at a price of Rs 60, Rs 25 and Rs 10 respectively.

InterGlobe Aviation (IndiGo) has expanded its network with launch of six new and five additional frequencies on its existing

domestic network. Effective February 01, 2018, IndiGo will connect Chennai with first direct flight on Chennai - Udaipur, Chennai -

Varanasi, Chennai - Patna and Chennai - Lucknow sectors.

Gravita India has started commercial production of Lead Tetra Oxide (commercially known as Red Lead Oxide) by installing new

state of art continuous process production plant at its Jaipur unit with a capacity of 7500 MTPA. The production of Red Lead Oxide

is a value added product and it will help company to cater new segments like ceramic tiles, crystal glass, anti-corrosive paints and

inverter & solar batteries.

Sanghvi Associates sells 2,00,000 shares of MT Educare through an open market transaction. It has sold the shares at a price of Rs

63.40 per share on NSE on January 4, 2018.

Tata Elxsi is displaying its latest innovations across technologies, AI & Design at CES 2018, North Hall, Las Vegas NV from 9th - 12th

January 2018. The company’s theme for this year is AI + Design - Enabling the Driving Experience of the Future. This brings

together Tata Elxsi’s world-class Artificial Intelligence and Analytics practice, an award-winning HMI & design team, and SPICE Level

5 certified automotive engineering to drive solutions for the autonomous and connected cars of the future.

Uno Metals has offloaded 47.25 lakh shares of Subex. The company has sold these shares at Rs 10.87 per share on the BSE on

January 04, 2018.

Yes Bank has tied-up with fintech startup Nearby Technologies to provide Aadhaar-enabled cardless and pinless ATM service by

which customers can deposit or withdraw money. Using the PayNEARBY mobile application on a smart phone, a retailer can

become an Aadhaar ATM/Aadhaar Bank branch for cash withdrawals and deposits by a customer.

International Finance Corporation has sold 75 lakh shares of Jain Irrigation Systems. The company has offloaded these shares at Rs

125.52 per share on the BSE on January 04, 2018.

Kotak Mahindra Matual Fund has bought 2.75 lakh shares in Apollo Pipes at Rs 655.61 on the BSE on January 04, 2018. Also, India

Acorn India Acorn Fund has bought 1,64,040 shares of the company at Rs 652.10 on the BSE.

Punjab National Bank (PNB) has crossed a total business turnover of Rs 11 lakh crore and going forward profit will be the main

focus of the Bank. The Bank is in the process of rationalization of some of its branches, in line with the rationalization call by the

government.

Indian Overseas Bank (IOB) has received an approval to utilize share premium account to write off the accumulated losses. The

board of directors of the Bank at its meeting held on January 4, 2018 has approved for the same.

Larsen & Toubro’s (L&T) wholly-owned subsidiary, L&T Hydrocarbon Engineering (LTHE) has signed an offshore contract for

‘Bassein Development 3 Well Platform & Pipeline Project’ with Oil & Natural Gas Corporation (ONGC) valued at around Rs 1,483

crore.

Idea Cellular has added 32 lakh new mobile subscribers in November, 2017. Following this, the company’s total customer base has

increased to 19.40 crore.

Take Solutions has incorporated a step down subsidiary, Navitas Lifesciences SAS in Columbia on January 3, 2018. It has been

incorporated as a step down subsidiary of the company, for its business purpose.

Macquarie Finance (India) has sold 25,00,000 shares of Gitanjali Gems at Rs 73.50 per share on the NSE on January 04, 2018.

Healthcare Global Enterprises (HCG) has executed definitive agreements for the business combination of its Triesta Sciences

business unit (Triesta) with Strand Life Sciences (Strand).

Morning Notes

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Bharti Airtel has added 43.4 lakh users in November 2017. Following this, the company’s total customer base has increased to

28.95 crore with market share of 29.68%.

Sanghi Industries has decided to expand its capacity from 4.1 MMTPA to 8.1 MMTPA. The expansion plan will primarily consist of

brownfield expansion of 3.3 MTPA Clinker Capacity and 2 MMTPA Cement Capacity within the premises of existing plant at

Sanghipuram, Gujarat and Satellite grinding unit of 2 MMTPA cement capacity.

Varun Beverages (VBL) has further deepened its relationship with PepsiCo by entering into a strategic partnership for the larger

Tropicana portfolio along with Gatorade and Quaker Value-Added Dairy in territories across North and East India. This is part of

VBL’s strategy to expand its product portfolio through its valued relationship with PepsiCo.

JSW Energy has incorporated a wholly owned subsidiary - JSW Solar on January 1, 2018, to pursue business opportunities in the

renewable energy space, energy storage systems, micro grids, etc.

HCL Technologies has terminated Joint Venture Agreement (JVA) with Great American Insurance Company (GAIC). The JVA

between HCL and GAIC has been terminated on mutual understanding to reduce financial / operational overheads. The JVA has

been terminated on January 4, 2018.

Bharti Airtel has entered into strategic alliance with Samsung, India’s No. 1 smartphone and consumer electronics brand, to bring a

range affordable 4G smartphone options to customers. The partnership is part of Airtel’s ‘Mera Pehla Smartphone’ initiative, under

which Airtel aims to partner device manufacturers to build an open ecosystem of affordable smartphones.

Economy

FICCI urges government to lower corporate tax to 28% in Budget 2018-19

The Federation of Indian Chambers of Commerce and Industry (FICCI) has urged the government to lower the corporate tax from

30 percent to 28 percent in the upcoming Union Budget 2018-19. It believed that such a move would help the Indian industry in

meeting the challenges emanating from tax cuts by the Trump administration in the US and its outcome in other developing

countries.

The Industry body has clarified that bringing the tax rate to 28 percent will be a good start and noted that the corporate sector

would start becoming unproductive in the absence of the rate cut. It also said that in Budget 2016-17, Finance Minister Arun Jaitley

had promised to reduce the corporate tax to 25 percent over the next four years. However, he has not been able to cut the rates.

Besides, it stated that in December 2017, Senate Republicans passed a sweeping overhaul of the US tax code in more than 30

years. It also said that the Senate approved the $1.5 trillion tax bill, which includes permanent tax breaks for corporations and

temporary tax cuts for individuals, by a final vote of 51-48.

Regarding the prospects of economic growth, the chamber expects that India's economic growth will accelerate to 7.5 percent in

the fiscal year 2018-19. Meanwhile, the government is scheduled to come out with the Budget for 2018-19 on February 1, which

will also be the last regular Budget of the current government.

Govt’s recapitalization plan likely to narrow gap between public, private banks: Moody’s

The global ratings agency, Moody’s Investors Service in its latest report has said that the government’s ambitious plan to infuse Rs

2.11 lakh crore capital over the next two years into public sector banks (PSBs) is likely to help narrow the gap between the capital

profiles of Indian public and private sector banks. Besides, Moody’s Indian affiliate, ICRA pointed that the deterioration in asset

quality -- in terms of gross non-performing assets (GNPAs) are likely to peak by the end of FY2018, but elevated levels of

provisioning on these NPAs will continue to negatively affect the banks until fiscal 2019.

The US-based agency, Moody’s believed that the capital infusion will also help public sector banks build their provisioning coverage

ratios as they will be able to allocate much of their operating profits towards loan-loss provisioning without having to worry about

the impact on their capital positions. It also pointed out that state-run banks' weak capital profile is their key credit weakness in

Morning Notes

LKP Advisory Source: Reuters, ACE Equity & LKP Research

comparison to their peers in the private sector. It highlighted that the average common equity tier 1 (CET1) ratio of rated PSBs as

on September 2017, stood at 8.7% compared with that of 12.2% of rated private banks.

Moody’s further said that the package will facilitate the two key policy initiatives of non-performing loan (NPL) resolution and Basel

III implementation. Apart from this, it noted that the move will also strengthen the government's bargaining position for pushing

through some of its more fundamental reforms, such as those targeting corporate governance and industry consolidation.

Fitch Ratings project India’s medium-term growth at average 6.7% over next 5 years

Expressing optimism over India’s medium-term economic prospects, global ratings agency, Fitch Ratings in its latest report has

stated that the country has the potential to grow at an average of 6.7 percent per annum over the next five years and will be the

fastest growing large economies. It added that even though this rate of growth is lower than the potential and what policymakers

have been aspiring for, it is ahead of the 5.5 percent growth estimated for China and Indonesia, who are joined at the second

fastest rank.

The report titled ‘Global Economic Outlook (GEO) forecast’ has said that demographic factors, where India is among the youngest

countries in the world with a maximum number of people in the working age group, and investment rates will be aiding the

country. It also said that the country is set to witness a continued robust growth in the working-age population in the next five

years, bolstering growth potential, and added that Indonesia, Mexico, Turkey and Brazil will also benefit from a similar trend.

Fitch Ratings said India has an ‘impressive rate of capital accumulation per worker’ which helps in maintaining the economic

growth and also in upping the living standards. However, it said going by total factor productivity, which captures improvements in

the efficiency of the production process, India has some catching-up to do. It added that trend total factor productivity in India is

expected to increase after recent ambitious structural reforms such as the Goods and Services Tax (GST) and the Insolvency and

Bankruptcy Code.

Govt seeks additional Rs 80,000 crore bonds for the recapitalisation of PSBs

In its third supplementary demand in the current fiscal, the government has sought parliamentary nod for additional Rs 80,000

crore bonds for the recapitalisation of public sector banks (PSBs). Lok Sabha gave its nod to the central government's request for

additional spending to boost the capital health of Public Sector and now the matter will be heard in Rajya Sabha on 5th January.

The Parliament approval is in line with the government's larger plan to strengthen the Indian economy with total financial

inclusion, and bank recapitalization is a major part of the initiative. Though, it’s still not declared but the major beneficiaries may

include State Bank of India, Bank of Baroda, Canara Bank and Indian Bank. The latest approval of funds will be utilised by March

this year.

Under the Indradhanush road map announced in 2015, the government had declared infusion of Rs 70,000 crore in state-owned

banks over four years, while they will have to raise a further Rs 1.1 lakh crore from the market to meet their capital requirement in

line with global risk norms, known as Basel-III. In October last year, Finance Minister Arun Jaitley approved the recapitalisation of

PSBs to support credit growth and job creation, entailing mobilization of capital of Rs 2.1 lakh crore in the next two years, including

re-capitalisation bonds of Rs 1.35 lakh crore.

Tech View

LKP Advisory

CNX Nifty

Technical View

Nifty Spot Daily (10558.85):- Nifty gained momentum and made a new high of 10566. Lower levels to watch is 10552 and also the

bullish gap of 10513 if manages to trade below it then there is some concern. Lower imp support levels 10456-10410 below 10354.

Over all the trend is bullish and higher level 10609-10635 possible as short covering can take nifty to these levels

Bank Nifty finally closed ab 25521 and made a high 25643. Next level to watch 25681-25761.Lower support 25521-25441

Tech View

LKP Advisory

Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2

ACC 1,810 1,843 1,824 1,809 1,793 1,774 COALINDIA 279 283 281 279 277 275

APOLLOTYRE 281 297 286 278 269 259 DLF 260 272 266 261 256 250

ASHOKLEY 127 130 129 127 126 124 CONCOR 1,379 1,395 1,386 1,379 1,372 1,363

AXISBANK 563 575 568 562 556 549 ADANIENT 193 206 197 190 183 174

BANKBARODA 162 170 166 163 160 156 DRREDDY 2,473 2,565 2,501 2,449 2,397 2,333

BATAINDIA 765 781 773 766 759 750 DISHTV 85 87 86 85 83 82

BEML 1,550 1,590 1,564 1,544 1,523 1,497 EICHERMOT 29,237 29,966 29,478 29,083 28,688 28,200

BERGEPAINT 266 272 269 266 264 261 ENGINERSIN 200 208 204 201 198 194

BHARATFIN 1,035 1,078 1,049 1,026 1,003 974 EQUITAS 157 171 161 154 146 137

BHARATFORG 739 759 748 739 730 719 EXIDEIND 227 235 230 225 221 216

BOSCHLTD 19,693 19,919 19,787 19,681 19,574 19,442 FEDERALBNK 112 117 114 111 109 106

BPCL 488 503 495 488 482 474 GODFRYPHLP 1,019 1,078 1,041 1,012 982 945

BRITANNIA 4,644 4,736 4,686 4,646 4,606 4,556 GODREJCP 990 1,005 996 988 980 970

CANFINHOME 470 484 477 472 467 461 GODREJIND 616 631 623 616 609 601

CGPOWER 93 95 94 93 92 91 HAVELLS 566 585 576 569 561 552

ADANIPORTS 424 443 431 420 410 397 HEROMOTOCO 3,745 3,788 3,763 3,743 3,723 3,698

ADANIPOWER 46 50 48 46 44 42 HINDALCO 276 291 284 279 273 266

ALBK 73 76 74 73 72 71 AMBUJACEM 274 282 278 275 271 267

CHENNPETRO 423 432 427 424 420 416 HINDPETRO 415 431 423 416 410 402

AMARAJABAT 862 890 871 856 840 821 HINDZINC 314 325 320 315 311 306

APOLLOHOSP 1,196 1,239 1,209 1,185 1,161 1,131 ESCORTS 795 817 806 797 787 776

ARVIND 448 461 454 449 444 437 IBREALEST 221 229 225 222 219 215

CHOLAFIN 1,308 1,343 1,325 1,310 1,295 1,277 IBULHSGFIN 1,199 1,221 1,207 1,196 1,185 1,172

CIPLA 615 627 621 615 610 603 ANDHRABANK 59 62 60 59 58 57

ASIANPAINT 1,185 1,215 1,197 1,182 1,166 1,148 ICIL 121 127 123 121 118 115

AUROPHARMA 671 679 674 670 666 661 IDFC 64 68 66 64 62 59

BAJFINANCE 1,815 1,884 1,836 1,798 1,760 1,713 IGL 330 338 334 331 328 324

BALRAMCHIN 140 145 142 140 137 134 FORTIS 163 178 171 166 160 153

BANKINDIA 172 181 177 174 170 166 INDIACEM 199 212 204 197 191 183

COLPAL 1,101 1,127 1,112 1,100 1,088 1,073 INDIGO 1,199 1,230 1,214 1,202 1,189 1,174

BHEL 102 106 104 102 101 99 GLENMARK 592 603 597 592 587 580

CUMMINSIND 957 1,002 980 962 945 923 INDUSINDBK 1,698 1,764 1,718 1,682 1,645 1,599

DALMIABHA 3,104 3,192 3,147 3,111 3,075 3,031 INFIBEAM 143 147 145 143 142 140

INFY 1,012 1,043 1,027 1,015 1,002 987

CADILAHC 440 452 445 438 432 424 IOC 384 394 389 385 381 375

CAPF 727 740 733 727 722 715 GRASIM 1,214 1,268 1,231 1,201 1,171 1,135

CASTROLIND 195 203 198 194 189 184 ITC 263 265 264 263 262 261

CENTURYTEX 1,435 1,478 1,456 1,438 1,421 1,399 HCLTECH 900 924 908 895 882 867

CESC 1,087 1,126 1,106 1,090 1,073 1,053 JETAIRWAYS 871 913 888 868 848 824

DCBBANK 197 200 198 196 194 192 JINDALSTEL 239 259 249 242 234 224

PIVOT POINTS

Tech View

LKP Advisory

Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2

HDFC 1,725 1,755 1,736 1,721 1,705 1,686 POWERGRID 201 203 202 201 200 199

HEXAWARE 359 369 362 356 351 344 RAYMOND 1,110 1,139 1,122 1,108 1,093 1,076

JSWENERGY 92 94 93 92 91 90 PFC 125 128 127 125 124 123

BAJAJFINSV 5,127 5,211 5,159 5,116 5,074 5,021 RBLBANK 540 569 549 532 516 496

JSWSTEEL 285 300 292 285 278 269 PNB 176 184 180 177 174 170

JUBLFOOD 1,904 1,986 1,931 1,886 1,842 1,786 GSFC 154 157 155 154 152 150

JUSTDIAL 551 594 565 541 517 488 RELCAPITAL 601 622 611 601 592 581

ICICIBANK 313 318 315 313 311 308 HDFCBANK 1,864 1,880 1,870 1,862 1,855 1,845

KAJARIACER 751 765 757 750 743 735 HDIL 64 68 66 64 62 60

KPIT 202 207 204 202 200 197 HINDUNILVR 1,357 1,376 1,365 1,356 1,347 1,336

KSCL 539 555 545 538 530 520 RELIANCE 923 933 928 923 919 914

KTKBANK 158 164 161 158 155 151 IDBI 64 68 66 64 63 61

L&TFH 175 179 176 175 173 171 SAIL 97 101 99 98 96 95

LICHSGFIN 571 580 575 571 567 562 SHREECEM 18,965 19,924 19,242 18,691 18,139 17,457

INFRATEL 373 389 381 375 369 361 PTC 120 124 122 120 119 117

LT 1,315 1,346 1,330 1,317 1,304 1,288 SIEMENS 1,287 1,309 1,294 1,282 1,270 1,255

LUPIN 900 933 911 894 876 854 RAMCOCEM 800 819 811 804 797 788

BIOCON 541 553 547 541 536 529 SINTEX 27 28 27 27 27 26

M&M 756 763 759 756 753 749 IFCI 31 34 32 30 29 27

M&MFIN 484 513 494 478 462 443 SBIN 306 316 311 308 304 300

MARUTI 9,434 9,625 9,533 9,459 9,386 9,294 SOUTHBANK 33 35 34 33 32 30

MCDOWELL-N 3,953 4,296 4,072 3,890 3,708 3,484 SRF 1,955 2,024 1,982 1,948 1,914 1,871

MOTHERSUMI 381 391 385 381 376 370 INDIANB 379 392 385 380 375 369

KOTAKBANK 1,003 1,016 1,008 1,002 996 988 SRTRANSFIN 1,480 1,522 1,497 1,477 1,457 1,432

MRF 72,906 74,751 73,453 72,402 71,351 70,053 SUNPHARMA 579 597 588 580 573 564

MFSL 589 600 594 588 583 576 TATACHEM 758 776 765 756 747 736

NCC 132 137 134 132 130 128 TATAGLOBAL 313 321 316 313 310 305

CANBK 365 375 369 364 359 353 TATAMTRDVR 254 261 257 254 251 248

NTPC 178 180 178 177 176 175 TATASTEEL 771 790 779 770 761 750

OIL 381 391 386 381 377 371 IRB 244 255 248 242 236 229

DABUR 358 368 362 357 352 346 TITAN 910 934 918 906 893 877

MRPL 129 132 130 129 127 125 TORNTPOWER 280 292 286 281 277 271

MUTHOOTFIN 472 486 477 469 462 453 TV18BRDCST 64 68 65 63 60 57

NBCC 251 255 253 251 249 247 TVSMOTOR 767 783 775 769 763 755

PAGEIND 24,455 25,112 24,783 24,516 24,250 23,920 UNIONBANK 145 154 149 146 143 138

DHFL 612 639 620 605 590 572 UPL 774 797 786 777 768 756

NESTLEIND 7,857 7,920 7,887 7,861 7,834 7,801 VEDL 340 353 346 341 336 330

NIITTECH 670 692 677 664 652 637 VGUARD 238 245 240 236 232 228

PEL 2,854 2,915 2,878 2,848 2,817 2,780 STAR 819 837 828 821 813 804

PETRONET 252 256 254 253 251 250 VOLTAS 646 669 658 649 641 630

PIDILITIND 910 923 916 909 903 896 YESBANK 333 358 342 329 317 301

PCJEWELLER 492 509 499 491 483 473 SUNTV 1,038 1,070 1,050 1,034 1,018 998

Tech View

LKP Advisory

Scrip Name CMP RB2 RB1 PP SB1 SB2 Scrip Name CMP RB2 RB1 PP SB1 SB2

SUZLON 16 16 16 16 15 15

MARICO 327 336 330 325 320 313

ZEEL 587 601 592 585 578 569

TATAMOTORS 432 442 437 433 429 424

TATAPOWER 100 104 102 100 99 97

AJANTPHARM 1,523 1,581 1,542 1,511 1,479 1,440

TECHM 525 539 530 522 515 506

TORNTPHARM 1,421 1,476 1,440 1,410 1,381 1,345

MGL 1,098 1,116 1,106 1,098 1,090 1,080

BAJAJ-AUTO 3,280 3,342 3,304 3,273 3,242 3,204

BALKRISIND 1,211 1,262 1,238 1,219 1,199 1,175

CEATLTD 1,978 2,033 1,999 1,971 1,943 1,909

ONGC 198 205 201 199 196 192

HCC 42 44 43 42 41 40

ORIENTBANK 124 129 126 125 123 120

RELINFRA 578 605 588 574 560 542

BHARTIARTL 540 567 548 534 519 501

DIVISLAB 1,108 1,141 1,124 1,111 1,098 1,081

MCX 919 938 929 922 914 905

MINDTREE 602 612 606 601 596 590

GAIL 494 505 499 495 491 486

NMDC 159 165 161 158 154 150

SYNDIBANK 80 84 82 80 79 77

TATAELXSI 1,006 1,028 1,016 1,007 997 985

GRANULES 139 146 141 138 135 131

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