TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )

NIFTY FIFTY : - Indian Benchmark Index Nifty had a negative last week which was the result of a

combination of local and Global factors. The local being, currency notes reforms initiated by the

government which is bringing in temporary pain to the economy and thereby affecting sentiments. The

Benchmark Nifty Open in a Positive Note on Monday up by 28 points or 0.34 per cent at 8102. Nifty

crumbled below 8050 to touch 7920 which was the panic low made on the Brexit day. Minor reversal

can be expected from this level as Nifty is in the oversold zone and has touched an important monthly

support. However, the overall trend is sell and with FII still being sellers and US interest rates expected

to rise in the FOMC December meeting, Nifty is going to stay under pressure in the near term with

certainty. The Nifty has made lower low in last week. The range for Nifty in this week was 7920-8180.

Investments in domestic capital markets through participatory notes fell to its lowest level in two-and-

half years to Rs. 2 lakh crore in end-October. Nifty has a resistance of 8120-8130 and the markets can

retest these levels upwards. The Slide in Indian Rupee appears to be Paused. Market appears to be in

cautious mode and may continue in the range 7800 and 8200. Buying at lower levels and selling at

higher ends may help the traders. Nifty saw a volatile range bound movement between 8024-7953 levels.

Being the last day of November F&O series, volatility was high as expected. From this level the Nifty is

expected to trade in the range of 7950-8160 levels. The Significance levels for Nifty is 7940-7960 Down

side and 8160-8190 is up side.

BANK NIFTY : - Bank Nifty open in a Positive note on Monday up by 104 Points or 0.54 per cent at

19063. The Banking stocks fell last week and Bank Nifty has given a close below 19000 a lowest closing

in fourteen weeks. The markets are set up for the start of the expiry week and sentiments being negative

with Big FII selling Bank Nifty will test the support of 18500. Banking stocks came in for heavy profit

booking. Bank Nifty has not yet reached its Brexit low of 16946 which underlines recent

outperformance of the Index. The major support of Bank Nifty lies at 18145 which was the low made on

9th November, the day when the Global markets saw panic as United States elected Donald Trump as

their new President. Bank Nifty also saw a pullback closing above 18500 along with NSE Small Cap

Index, which saw a 100 point uptick in the latter half of the trading session. Bank Nifty is showing a

comparative strength since it has not even touched its Trump's low of 18143 made on Nov 9 where the

Brexit low was 16946. We may expect some buying in the December series as Expectations of rate cut

by RBI in next meeting in December are on the rise due to drop in inflation numbers and piling of cash

with banks due to demonetization. Deposit rates cut by state bank of India and other banks have

increased the hopes of transmission of lower rates to consumers and picking up of industrial activity. The

Important resistance for Bank Nifty lies at 18915-19395 levels and Support at 18087-17739 for Next

week.

Monday, 28 November 2016

TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )

NIFTY

DAILY R2 R1 PP S1 S2

8445 8189 8061 7933 7877

WEEKLY R2 R1 PP S1 S2

8622 8236 8043 7850 7464

MONTHLY R2 R1 PP S1 S2

10491 8985 8232 7479 5973

BANK NIFTY

DAILY R2 R1 PP S1 S2

18942 18568 18381 18194 17820

WEEKLY R2 R1 PP S1 S2

21051 19395 18657 17739 16083

MONTHLY R2 R1 PP S1 S2

25279 21083 18985 16887 12691

MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS

NIFTY 8273 8446 8442 8304

BANK NIFTY 19091 19243 18951 18319

PARABOLIC SAR DAILY WEEKLY MONTHLY

NIFTY 8510 8686 7670

BANK NIFTY 18352 20309 15629

PATTERN FORMATION ( NIFTY )

Detail of Chart - On the above given daily Chart of Nifty has Applied Bollinger Band along with

Parabolic SAR both the indicators are Leading Indicators, and gives signal of Buying or Selling.

Although the Uses of Bollinger Band differ from traders to traders Some buy when it break the

Lower Band from below side and some buy when it break Upper Band. We assume that the

Breaking the Middle Band Usually a down side is bear Signal as we can see on the above given chart

it has break the Lower Band. and it was not able to sustain the Significance Support level of 7930.

and give Gap Down opening below its Lower Band. From this ;level we may see some

Consolidation for Nifty for the Upcoming week. The Significance levels for Nifty is 7930-7877 is

down side and 8180-8260 is up side.

PATTERN FORMATION ( BANK NIFTY )

Detail of Chart -On the Above given daily Chart of Bank Nifty has Applied the Bollinger Band

along with Parabolic SAR. Both are the leading Indicators and give Signal on Breakout of Upper or

Lower Band. On the Above given chart of Bank Nifty it has break the Lower band not able to

Sustain the Support level of 18600. From this level we are Expecting the Bank Nifty may go Further

Down side to the level of 18500-18320 level for Next week. The Significance levels for Bank Nifty

is 18820 - 19250 Up side and 18400-18320 is Down Side.

NSE EQUITY DAILY LEVELS

COMPANY NAME R2 R1 PP S1 S2ACC EQ 1345 1326 1312 1293 1279

ADANI PORTS EQ 272 268 262 258 252

AMBUJACEM EQ 208 205 202 199 196

ASIAN PAINT EQ 960 953 945 938 930

AXISBANK EQ 478 474 470 466 462

BAJAJ-AUTO EQ 2663 2638 2620 2595 2577

BANKBARODA EQ 174 170 168 164 162

BPCL EQ 652 646 640 634 628

BHEL EQ 129 127 126 124 123

BHARTIARTL EQ 310 305 302 297 294

BOSCH LTD EQ 19214 19029 18889 18704 18564

BHARTI INFRATEL EQ 366 360 358 352 350

CIPLA EQ 581 572 560 551 539

COALINDIA EQ 308 305 303 300 298

CAIRN INDIA LTD EQ 252 248 244 240 236

DRREDDY EQ 3276 3221 3149 3094 3022

GAIL EQ 429 422 413 406 397

GRASIM EQ 840 831 817 808 794

HCLTECH EQ 836 817 794 775 752

HDFC EQ 1286 1269 1222 1192 1145

HDFCBANK EQ 1214 1200 1179 1165 1144

HEROMOTOCO EQ 3125 3091 3059 3025 2993

HINDALCO EQ 187 183 181 177 175

HINDUNILVR EQ 845 838 832 825 819

ICICIBANK EQ 265 262 260 257 255

ITC EQ 234 231 227 224 220

INDUSIND BANK EQ 1103 1087 1066 1050 1029

INFY EQ 1018 996 963 941 908

IDEA CELLULAR EQ 76 74 73 71 70

KOTAKBANK EQ 766 758 751 743 736

LT EQ 1398 1382 1359 1343 1320

M&M EQ 1194 1186 1169 1161 1144

MRF EQ 48002 47566 47339 46903 46676

MARUTI SUZUKI EQ 4969 4919 4856 4806 4743

ONGC EQ 281 280 277 276 273

NTPC EQ 166 163 159 156 152

RCOM EQ 36 35 35 34 34

RELCAPITAL EQ 437 434 428 425 419

RELIANCE EQ 1002 997 991 986 980

RELINFRA EQ 469 463 457 451 445

RPOWER EQ 40 39 39 38 38

SBIN EQ 267 263 261 257 255

SSLT( VEDL) EQ 232 228 223 219 214

SUNPHARMA EQ 737 724 705 692 673

TATA MOTORSDVR EQ 298 295 287 284 276

TCS EQ 2381 2340 2266 2225 2151

TATAMOTORS EQ 464 459 451 446 438

TATAPOWER EQ 71 70 70 69 69

TATASTEEL EQ 422 415 406 399 390

UNIONBANK EQ 156 154 153 151 150

YES BANK LIMITED EQ 1200 1182 1153 1135 1106

ZEEL EQ 460 449 440 429 420

TOP 15 ACHIEVERS // TOP 15 LOOSERS

NEXT WEEK STARS( AS PER TECHNICAL ANALYSIS )

NSE FUTURE

NSE FUTURE : BUY TATAELEXI FUTURE ABOVE 1220 TGT 1300 SL 1180

NSE FUTURE : BUY CENTURYTEX FUTURE ABOVE 760 TGT 800 SL 740.

NSE FUTURE : BUY MRF FUTURE ABOVE 48000 TGT 49000 SL 47600.

NSE CASH

NSE CASH : BUY STARTECH NSE CASH ABOVE 98 TGT 104 SL 95.45.

NSE CASH : BUY NATCOPHARM NSE CASH ABOVE 605 TGT 645 SL 593.

NSE CASH : BUY YESBANK NSE CASH ABOVE 1160 TGT 1240 SL 1135.

SR.NO SCRIPT NAME PREV CLOSE CMP % CHANGE

1 BHEL 134 126 - 5.62 %

2 M&M LIMITED 1239 1173 - 5.39 %

3 SBIN 275 260 - 5.38 %

4 BANKBARODA 176 167 - 5.11 %

5 TATA MOTORS 471 452 - 4.01 %

6 KOTAK BANK 779 752 - 3.48 %

7 INDUSIND BANK 1101 1073 -2.57 %

8 GAIL LIMITED 427 417 - 2.30 %

9 BOSCH LIMITED 19226 18840 -2.01 %

10 HDFC BANK 1211 1189 -1.82 %

11 ICICI BANK 264 260 -1.70 %

12 ZEEL 446 439 -1.60 %

13 MARUTI SUZUKI 4950 4873 -1.56 %

14 DR. REDDY LABS 3214 3168 -1.44 %

15 YES BANK 1180 1167 -1.11 %

SR.NO SCRIPT NAME PREV CLOSE

CMP % CHANGE

1 TECH MAHINDRA 445 487+ 9.42 %

2HINDALCO INDUS 165 180 + 9.16 %

3 TCS 2125 2300+ 8.25 %

4LUPIN LIMITED 1417 1508 + 6.41 %

5 WIPRO LIMITED 437 464+ 6.31 %

6INFOSYS 920 977 + 6.25 %

7 TATA STEEL 385 408+ 6.14 %

8HCL TECH 763 801 +4.99 %

9 ASIAN PAINT 908 945+ 4.10 %

10HUL 802 833 + 3.83 %

11 HERO MOTOCORP 2935 3045+3.77 %

12SUN PHARMA 688 714 +3.67 %

13 IDEA CELLULAR 71 73+3.59 %

14ULTRATECH CEM 3392 3497 + 3.08 %

15 CIPLA 550 565+ 2.56 %

NSE - WEEKLY NEWS LETTERS

✍ TOP NEWS OF THE WEEK

Marginal rise in professional tax collection in 2015-16 - Collection of professional tax in

Maharashtra has registered a marginal rise of just Rs three crore in last financial year. According to

gross receipts from 2005-06 to 2015-16, furnished by the Assistant Commissioner of Sales Tax

(administration) of Maharashtra, Rs 1,688 crore professional tax was collected in 2010-11 fiscal

year, Rs 1,830 crore in 2011-12, Rs 1,944 crore in 2012-13 and Rs 2,146 crore in 2013-14, as per

RTI activist Manoranjan Roy who had sought details in this regard. However, in subsequent years,

the annual growth in this tax collection saw a marginal rise. The professional tax collected in 2014-

15 went up by Rs 20 crore to Rs 2,166 crore. In 2015-16, it went up by just Rs 3 crore to Rs 2,169

crore. Professional tax is levied by various state governments on salaried individuals, working in

government or non-government entities, or in practice of any profession, including chartered

accountants, doctors, lawyers, etc or those who carry out some form of business.

GST: A new wave of hope for the logistics industry - Just a few months back, the logistics sector

of India received a pat on their back with the announcement made by the World Bank’s latest

Logistics Performance Index (LPI) report titled “Connecting to Complete 2016”, where it climbed

19 places, moving up the ranks from 54 in 2014, to 35 this year. But would the new GST bill prove

to be an obstacle in its growth in 2017?. As the Goods and Services Tax regime announced by the

Finance Minister Arun Jaitley, is ready to go effective by April, 2017, industries are becoming

apprehensive about its impact on the operations of their businesses. Conversely, after much

deliberation industry experts have summarized that the effects of GST’s slab-wise taxation will

rather bring new wave of opportunities for growth in terms of better quality of services at a

comparatively lower cost, particularly in the logistics industry of India. To understand this better, let

us look at the slab structure agreed by the GST Council, which is 0%, 5%, 12%, 18% and 28%, with

lower rates for essential items and the highest for luxury and de-merits goods. The current

established tax structure levy varied central taxes in form of custom duty, excise duty, CST in

addition to very Indian state checkpoint levying states taxes at different rates, viz. of VAT, service

tax, Octroi, etc, for the goods that move across their borders. Adding to the complexity, is levying of

state level taxes on top of central taxes, thus multi-taxation to the consumer. To escape this multi-tax

burden, the manufacturers and third party logistics companies generally transferred stock to

warehouses set up in various states of operations, thus avoiding central taxes to an extent. The

priority for LSP has remained on tax and administration optimization, mostly compromising on

achieving higher operational efficiency through structured large warehouses planned in centralized

geographic locations that gives better connectivity. FMCGs that are currently paying around 24-25%

of tax, including excise duty, VAT, etc will only shell out 17-19% with GST, therefore generating lot

of potential for progress and open doors for investment in the industry.

Demonetisation effect: GDP to fall by up to 80 bps, says DBS - Singapore Based brokerage DBS

has warned of major downside risks to growth due to the demonetisation exercise, and has estimated

that the gross value added can come down by up to 0.80 per cent lower than its 7.6 per cent target.

"There are downside risks to the tune of 0.40-0.80 per cent to our gross-value added estimate of 7.6

per cent," it said in a note today, nearly a fortnight after the government demonetised the Rs 500 and

Rs 1,000 banknotes. This projection, however, is very meagre as many brokerages have already

projected even a 50 per cent dip in GDP growth, with Ambit Capital being the steepest at 3.6 per

cent. The brokerage said there will be an impact on consumer goods and discretionary spending for

at least two quarters, which will impact growth till March 2017. Cash dependent businesses will be

hit the most during this period and rural demand, especially from the unbanked sections, may also

moderate, it added. It, however, said there will be some pent-up demand which can give an upside to

growth starting the first quarter of the next fiscal.

India's demonetisation has mixed impact on sovereign, banks and corporates: Moody's -

Moody's Investors Service says that the move by the Government of India (Baa3 positive) to

withdraw all Rs 500 and Rs 1,000 notes approximately 86% of all outstanding notes is affecting all

sectors of the economy to various extents, with banks being the key beneficiary. "Although, the

measures in the near term will pressure GDP growth and thereby government revenues, in the longer

term they should boost tax revenues and translate into higher government capital expenditure and/or

faster fiscal consolidation," says Marie Diron, an Associate Managing Director in Moody's

Sovereign Group. "Corporates will see economic activity decline, with lower sales volumes and cash

flows, with those directly exposed to retail sales most affected," adds Laura Acres, a Managing

Director in Moody's Corporate Finance Group. Moody's conclusions are contained in its just-

released report "Indian Credit -- Demonetisation Is Beneficial for Indian Government and Banks;

Implementation Challenges Will Disrupt Economic Activity". In the immediate period following the

government's November 8 decision, Moody's says the withdrawal of the Rs 500 and Rs 1,000 notes

will significantly disrupt economic activity, resulting in temporarily weaker consumption and GDP

growth.

India growth to slow to 6.5% on notes ban: Deutsche - India's real GDP growth is expected to

slow to 6.5 per cent in the current fiscal on the likely impact of demonetisation, while muted

inflation may open room for additional rate cuts, says a Deutsche Bank report. According to the

global financial services major, economic growth will see a moderation in the near term and would

gradually recover to 7.5 per cent in the next financial year. Prime Minister Narendra Modi on

November 8 had announced the demonetisation of Rs 500 and Rs 1,000 notes, thereby withdrawing

86 per cent or Rs 14 lakh crore worth currency from circulation. "We expect growth to be impacted

adversely in the present and next quarters due to the government's temporary de-monetisation

initiative," said the note, adding that GDP would slow to 6.5 per cent in 2016-17, and gradually

recover to 7.5 per cent in 2017-18.

CPI inflation to moderate to around 4% in November: Nomura - A moderation in aggregate

food prices will lower inflation momentum in November and the CPI inflation is expected to

moderate to around 4 per cent in November from 4.2 per cent in October, says a Nomura report.

According to Japanese financial services major, demonetisation is disinflationary in the medium

term, but more neutral in the near term. "We currently expect CPI inflation to moderate to around

4.0 per cent y-o-y in November from 4.2 per cent in October," Nomura said in a research note. To

see how demonetisation has affected inflation, Nomura looked at high-frequency price data for both

perishable and non-perishable food items, which together account for around 25 per cent of the CPI

basket. "Data since the November 8 demonetisation move shows a divergence between perishable

and non-perishable food prices. Perishable prices have moderated by 3.3 per cent, led by lower fruit

and vegetable and egg prices, while non-perishable prices are 1.1% higher, led by wheat," the report

said.

Banks' retail focus boosts share of personal loans to 19% in June: RBI - The Reserve Bank

today said the focus by lenders on the retail segment has helped increase the share of personal loans

in the system to 19.3 percent in June 2016, from 17.9 percent in March. "Retail focus of banking

sector helped the share of personal loans in total credit of scheduled commercial banks to increase to

19.3 per cent in June 2016 from 17.9 per cent in March 2016," RBI said in a statement. Citing data,

the regulator said home loan segment was one of the prime contributors to this uptick. The data

release, part of the quarterly BSR-1 which gives details on the outstanding credit of scheduled

commercial banks on a variety of factors, comes amid a move away from the high-value corporate

segment by lenders. The lenders blame both a lack of demand from corporates and concerns over

credit quality for their focus on the retail segment, which has displayed resilience till now.

Goldman forecasts deceleration in GDP growth to 6.8% in FY17 - Goldman Sachs has forecast a

deceleration in India's GDP growth to 6.8 per cent this fiscal, down from 7.6 per cent last financial

year, due to demonetisation of Rs 500 and Rs 1000 currency notes. According to the global financial

services major, post the 'dramatic currency reform' the liquidity shortage would be a significant

constraint on domestic activity, which in turn would affect GDP growth. "In the short term, the

liquidity shortage appears likely to be a significant constraint on domestic activity, leading us to

forecast a deceleration in GDP growth to 6.8 per cent in FY17 (below consensus), down from 7.6 per

cent in FY16," Goldman Sachs said in a research note. Eventually, the currency reform should help

to move economic activity into formal channels, accelerate financial inclusion, and increase

government revenue, it added. According to the report, the "large, young, lower-income" economies

of India, Indonesia, and the Philippines have higher growth potential -- in theory. But in practice,

much will depend on domestic policy and the pace of economic reform.

✍ TOP ECONOMY NEWS

At least 120 bids have been received for 67 small and marginal oil and gas fields, with 40 new

companies entering the sector and submitting their bids.

National Highways Authority of India will raise Rs. 200 billion through EPFO, Rs85bn through

LIC, Rs. 50 billion each through Masala and 54-EC bonds and Rs165b from the market, Minister of

State for Road Transport and Highways.

FDI went up 60% to USD 77.86 billion after the launch of Make in India initiative in September

2014.

With an aim to deepen capital markets, Sebi may consider allowing foreign portfolio investors

(FPIs) to invest in unlisted non-convertible debentures and securitised debt instruments in its board

meeting.

Government auditor Comptroller and Auditor General said I-T department has provided "irregular"

tax benefits to infrastructure companies without verification, which have cost the exchequer over Rs

45 billion.

There are as many as 2,071 industrialists whose loan accounts with an exposure of Rs 3.89trn have

turned into NPAs.

Banks parked a mindboggling Rs 4.32 trillion of their excess liquidity with the central bank.

The government has allowed National Bank for Agriculture and Rural Development to disburse Rs

21000 crore to cash-starved farmers, helping them sow winter crops like wheat ahead of the sowing

season.

Finance ministry sources said as much as Rs. 20000 crore has been deposited in Jan Dhan accounts

since November 8.

India has imposed anti-dumping duties on hot rolled flat sheets and plates of alloy or non-alloy steel

to curb cheaper imports into the country

National Highways Authority of India has raised Rs100bn from EPFO's bonds so far this financial

year, while LIC has in-principle has agreed to subscribe to its taxable bonds worth up to Rs85bn till

March-end.

The Commerce and Industry Ministry has moved a proposal for the consideration of the Cabinet to

completely ban foreign direct investment in the tobacco sector.

✍ TOP CORPORATE NEWS -

The US FDA has begun its inspection at Sun Pharmaceuticals Industries Limited Halol

manufacturing facility, considered to be the most crucial for the company.

Northern Coalfields has awarded Rs.1470 crore project to DBL-DECO, a joint venture of Dilip

Buildcon Limited, for excavation work at one of its open cast mines.

Bharat Forge Limited announced the acquisition of US-based Walker Forge Tennessee, for a total

consideration of $ 14 million. Bharat Forge has made this acquisition through its US subsidiary.

Mahindra First Choice services, the used car services arm of Mahindra & Mahindra, is planning to

sell a portion of its stake to raise up to $ 50 million.

Exxon Mobil, CShevron and BP plc as well as Reliance Industries Limited are unlikely to bid in

the auction of 46 discovered small oil and gas fields.

Infosys Limited has invested Rs 14.5 crore in a start-up UNSILO. The investment is done through

Infosys innovation fund.

Bajaj Auto Limited has commenced production of the most powerful bike in its own stable till date

— a 400cc motorcycle — which it aims to launch around the middle of next month.

Alembic Pharmaceuticals Limited has received approval from the US Food & Drug

Administration for its Abbreviated New Drug Application for Telmisartan and Amlodipine Tablets.

Zydus Cadila has received final approval from the US health regulator to market its Metronidazole

tablets used for the treatment of infections caused by bacteria or parasites.

Novartis said it is acquiring Selexys Pharmaceuticals Corp in a deal worth up to USD 665 million.

Tata Consultancy Services Limited said its former Chairman Cyrus Mistry’s conduct has caused

enormous harm to the Tata group, TCS and its stakeholders, including employees and shareholders.

Bosch Limited India has launched ‘discover, nurture and align-DNA’, its first accelerator

programme for start-ups, which offers start-ups the opportunity of gaining access to Bosch’s

working environment.

Coal India Limited is examining opportunities to export coal with high ash content or high grade

fossil fuel to the neighbouring nations.

Mahindra & Mahindra Limited opened its Rs. 1.50 billion spare parts warehouse in Jaipur to cater

to customers in north and north western regions of the country for both automotive and tractor spare

parts.

ONGC Limited , Oil India, Reliance Industries and BP skip the auction of discovered oilfields.

Brigade Enterprises Limited has announced strategic partnerships with Microsoft and Intel to

benefit Startups in its technology focused Real Estate Accelerator Program .

Honda Cars India said it would facilitate 100% ‘on road’ and ‘ex-showroom’ funding deals with

HDFC, Axis and ICICI banks.

Reliance Infrastructure Limited has won an EPC order for Rs. 36.75 billion from NLC India

Limited for setting up two lignite based CFBC thermal power projects with a capacity of 250MW

each.

Vedanta Limited is looking at increasing its captive power generation capacity by 1200MW amid

rising production. The company is considering setting up 350MW super-critical units in joint

ventures at its different production bases in the country.

Suven Life Sciences has secured two patents -- one each from China and Mexico -- for its new

chemical entities used in the treatment of neurodegenerative diseases.

Larsen & Toubro said its construction arm has bagged projects worth Rs. 19.26 billion across

various business verticals.

Reliance Communications has launched '149 Unlimited' calling plan, which will offer customers

unlimited calling talk-time to any phone on any telecom network across the country, including long

distance calls, at just Rs. 149/m.

In a Rs. 48 billion reprieve to India’s fourth-largest telco, the Supreme Court dismissed a special

leave petition filed by the Income Tax department to tax the proceeds of Reliance

Communications’ USD 1.5 billion foreign currency convertible bonds issued nearly a decade ago.

Bliss GVS Pharma's Kenyan arm has won a three-year contract worth USD111.40mn around Rs.

7.60 billion from Aon Kenya Insurance Brokers.

NLC India Limited has awarded projects worth Rs64.80bn to BGR Energy Systems and Reliance

Infrastructure Ltd.

Delhi High Court sought the government's response on Jindal Power Ltd's plea for refund of over

Rs. 11.85 billion paid by it as additional levy for taking part in the coal auction and challenging the

provisions of the Coal Mines Act which makes such levy mandatory.

CAG has pulled up the Income Tax department for giving benefit of Rs17.67bn to the port and

terminal arm of Reliance Industries by allowing deductions meant for public facilities to the

company's captive jetties.

With State Bank of India and HDFC Bank, deciding to accept payments made through the Unified

Payments Interface, the digital payment system is likely to see robust growth in the days to come.

Leading steel companies across the globe are showing interest in buying the Nagarnaar steel plant of

the National Mineral Development Corporation , which is coming up in Chhattisgarh’s Bastar

district.

Larsen & Toubro has laid off 14,000 employees across businesses during April—September period

this year, was necessary to stay “agile and competitive“.

Sun Pharmaceuticals Industries Limited has entered into an agreement to acquire 85.1% of JSC

Biosintez, that makes and markets pharmaceutical products in Russia and the CIS region.

Cipla Limited is divesting its minority 16.7% stake in Chase Pharmaceuticals Corporation, to a

subsidiary of Allergan Plc.

Wockhardt Limited said that the USFDA has issued a warning letter to C P Pharmaceuticals Ltd,

Wrexham, United Kingdom, a stepdown subsidiary of the company.

Aurobindo Pharma, Cadila, Mcleods Pharmaceuticals are among the 39 Indian drug companies

that have been blacklisted by Vietnam for quality standard violations.

Zee Entertainment Enterprises Limited has acquired the general entertainment broadcasting

business of Reliance Big Broadcasting Private Limited, Big Magic Limited & Azalia Broadcast

Private Limited, all part of Anil Ambani led Reliance Group Entities.

Infosys Limited has put in Rs. 316 million in Stellaris Venture Partners, founded by former Helion

Advisors partners, the second such move in a venture capital firm through its USD500mn Innovation

fund.

Tata Steel Limited is set to commission its 55,000 tpa ferrochrome plant at Gopalpur in South

Odisha on November 30th.

Indian Oil Corporation Limited unit plans to invest USD5.5bn to gradually raise the capacity of

its smallest refinery co-owned by Iran to 300,000 barrels/day , to help meet a surge in demand for

refined products in the world's fastest growing major economy.

The board of directors of Tata Motors Limited had decided to convene an extraordinary general

meeting, or EGM, on December 22 to pass a resolution to remove Cyrus Mistry and Nusli Wadia as

directors of the company.

The US FDA recorded seven observations as part of its recent inspection of Sun Pharma’s

manufacturing site at Mohali.

A fire incident was reported at the refinery complex of Reliance Industries Limited at Jamnagar.

LT Foods has inked a 51:49 joint venture with Kameda Seika, to sell rice-based snacks in India.

Natco Pharma has received final approval from the US health regulator for generic version of

Budesonide capsules used for treatment of active Crohn's disease for the American market.

JSW Group plans to diversify into electric car manufacturing.

Talcher Thermal Power Station of NTPC achieved its ever best highest single day generation of

11.496mu of electricity at 104.13% capacity utilisation on November 23, 2016.

YES Bank Limited announced a partnership with Gujarat State Road Transport Corporation to

digitise payment of bus tickets for its customers.

✍ TOP BANKING AND FINANCIAL NEWS OF THE WEEK

After a gruelling two weeks, bank executives can expect to breathe easy soon. With over half of the

currency notes that have ceased to be legal tender being deposited or exchanged, long queues in

front of banks may soon shrink, say industry experts. Economists feel structural change in payment

habits of individuals, who are likely to increasingly opt for cashless forms of spending, will help

ease the cash crunch situation in the country. Also with more ATMs getting calibrated to dispense the

newly-designed notes, there will soon be a letup in disruption level, they said.

As many as 82,500 ATMs, which account for about 40 per cent of cash vending machines in the

country, have been recalibrated to dispense new high security currency notes of 500 and 2,000

rupees. Out of 2.2 lakh ATMs, 82,500 were recalibrated till yesterday evening. These ATMs have

been reset as per the direction of task force set up by the government to expedite the process, Rituraj

Sinha, President Cash Logistics Association of India, told PTI.

Seeking to reach out to maximum number of people looking to withdraw money, State Bank of

India% today said it is providing cash through Point of Sales machines including in tea gardens,

hospitals and trains. The move follows huge rush at banks and ATMs following the ban on old high-

value notes of Rs 500 and Rs 1000. In a statement, SBI said it is catering to every sector and

geographies including tea gardens, hospitals, trains through 'Cash@POS' initiative to dispense cash

through 741 mobile vans across the country. "At a time when getting cash from an ATM was proving

to be a tall order across the country, State Bank of India has taken the lead in reaching out to the

wide spectrum of its' client base by dispensing cash to the needy," it said.

The finance ministry on Tuesday said that there are 2,071 accounts with state run banks which have

debt exceeding Rs 50 crore and are classified as nonperforming assets or bad loans. The outstanding

amount in these accounts is Rs 3.88 lakh crore, noted Santosh Kumar Gangwar, minister of state in

the finance ministry. “In terms of instructions of Reserve Bank of India, every bank has to have its

own recovery policy including the manner and procedure of write-offs. Loans are written off after

appropriate provisions have been made to take advantage of tax benefits and capital optimization,”

he said in a written reply in Rajya Sabha. The total bad loan and restructured advances in all

scheduled commercial banks stood at Rs. 8.32 lakh crore in FY 16 as against Rs. 7.28 lakh crore in

FY 15.

Fitch Ratings today reaffirmed negative outlook on the country's banking sector due to poor asset

quality and weak earnings. "The negative outlook reiterates our concern on fragile financial position

of the banking sector. It also reflects our expectations of the ongoing weak asset quality, poor

recovery and earnings in light of continued provisioning pressure that are emanating not just from

the new potential NPLs but also from existing NPLs," Fitch Ratings director Saswata Guha told

reporters here today.

The share of non-banking finance companies in loans being given in the financial sector may rise by

300 basis points to 17.6 percent over the next three fiscals and they can grow even faster as public

banks adopt cautious approach on lending, according to Crisil. The credit rating agency said in a

research report today that the growth builds on top of 300 bps or 3 percent seen in the last five years.

According to the report, NBFCs (including housing finance companies) could grow even faster as

public sector banks , facing asset quality challenges, remain circumspect on lending. "Domestic

NBFCs have leveraged their unique strengths and some of them have scaled up to become world-

class institutions," Crisil Ratings Business Head (large corporates) Gurpreet Chhatwal said.

Private sector lenders ICICI BankBSE -1.74 %, Axis BankBSE -1.23 % and Yes BankBSE -0.22 %

joined their public sector peers to waive the merchant discount rate levied on merchants while

accepting digital debit card payments from customers. The move follows government asking banks

today to levy no charges when customers want to pay digitally through their debit cards, a move to

make things easier in a cash-strapped environment in view of ban on old currency notes of Rs 500

and Rs 1000. Banking major SBI had already waived MDR on RuPay debit cards last week, while

ICICI Bank had waived it yesterday.

State Bank of India has lowered rates on bulk deposits between 125 and 190 basis points or bps (one

bps is 0.01%) across various maturities, paving the way for lower interest rates in the system. In

many baskets, the revised interest rates from India's largest bank by market share of deposits and

loans are lower than returns on savings bank accounts, which are currently set at a minimum 4%.

The cut in deposit rates is because of a fall in the cost of funds, as the banking system is flush with

funds ever since the government scrapped Rs 500 and Rs 1,000 notes as legal tender on the evening

of November 8.

In the historic fortnight when the government scrapped Rs. 500 and Rs. 1000 notes, the banking

sector assets too contracted as loans dipped sharply and investments in government bonds posted a

modest rise. In the fortnight ended November 11, the period during which the government decided to

scrap Rs 500 and Rs 100 notes, bank loans contracted by Rs 59,000 crores or 0.6%, while

investments rose modestly by Rs 2551 crore or 0.08%, data released by RBI said. But deposits in the

banking system rose 1.3% or about Rs 1.3 lakh crore during the fortnight, the RBI release said.

Total deposits in Jan Dhan accounts have increased to Rs 64,252.15 crore, with Uttar Pradesh

leading the chart with Rs 10,670.62 crore deposits followed by West Bengal and Rajasthan, the

government said today. The Centre also stressed that no public sector banks had given any

instructions to their officials to deposit Re 1 or 2 to avoid zero balance in Jan Dhan accounts.

The after-shocks of the government's move to discontinue Rs 500 and the use of old Rs 1,000 notes

have led to a contraction of banking assets in the fortnight ended November 11 with loans dipping

sharply and investments in government bonds posting only a modest rise. While bank loans

contracted by Rs 59,000 crore, or 0.6 per cent, investments saw a modest rise of Rs 2,551 crore, or

0.08 per cent.However, deposits in the banking system rose 1.3 per cent, or about Rs 1.3 lakh crore,

during the fortnight, according to data released by the Reserve Bank. Much of the deposit growth

was of cash in the system deposited with commercial banks.

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