Morning Notes

18 Sept, 2017

Indices 15-Sep 14-Sep % Chg. Major Indices 15-Sep 14-Sep % Chg. FII's & DII's in equity ‎₹ Crs S&P BSE SENSEX 32,273 32,242 0.10% Dow Jones Industrial Average22,268 22,203 0.29% 15-Sep Buy Sell Net S&P CNX NIFTY 10,085 10,087 -0.01% Nasdaq Composite Index 6,448 6,429 0.30% FII / FPI Investments 11,764 11,346 419 NIFTY MID100 FREE 18,952 18,936 0.08% CAC 40 Index 5,214 5,225 -0.22% DII's Investments 3,049 2,924 126 NIFTY SML100 FREE 7,935 7,963 -0.35% FTSE 100 Index 7,215 7,295 -1.10% FII's contribution to the total turnover 59% DAX Index 12,519 12,540 -0.17% DII's contribution to the total turnover 15% BSE Sectoral Indices NIFTY IT 10,600 10,496 0.99% Major Asian Indices 15-Sep 14-Sep % Chg. FII's in Derivatives (F&O) ‎₹ Crs NIFTY METAL 3,663 3,650 0.35% Hong Kong 27,808 27,777 0.11% 15-Sep Index Fut Index Opt Stock Fut Stock Opt NIFTY MEDIA 3,100 3,090 0.32% Nikkei 225 19,910 19,807 0.52% Net 134 -1,032 -1,123 -25 NIFTY AUTO 10,971 10,949 0.21% Korea 2,386 2,378 0.35% OI 18,627 82,139 59,363 6,949 NIFTY CONSUMPTION 4,552 4,551 0.02% Shanghai 3,354 3,371 -0.53% Chg.OI 1.0% 3.1% 2.7% 2.3% NIFTY ENERGY 13,347 13,365 -0.13% Taiwan 10,580 10,554 0.25% FIIs' contribution to the total F&O turnover 29% NIFTY FIN SERVICE 10,239 10,258 -0.19% NIFTY BANK 24,844 24,912 -0.27% Commodities (MCX) 15-Sep 14-Sep % Chg. Curr. Derivatives (NSE) 15-Sep 14-Sep % Chg. NIFTY REALTY 287 288 -0.33% Aluminium (29SEP2017) 132.4 133.6 -0.90% USDINR 27-SEP-2017 64.18 64.19 -0.02% NIFTY PHARMA 9,338 9,381 -0.46% Copper ( 30NOV2017) 420.1 421.4 -0.31% EURINR 27-SEP-2017 76.73 76.35 0.50% NIFTY FMCG 25,506 25,628 -0.48% Crude (19SEP2017) 3,191 3,215 -0.75% JPYINR 27-SEP-2017 57.75 58.10 -0.60% NIFTY PSU BANK 3,278 3,295 -0.50% Gold ( 05OCT2017) 29,856 30,010 -0.51% DJIA 18-Oct-2017) 22,175 22,153 0.10% NIFTY INFRA 3,369 3,386 -0.51% Silver (05DEC2017) 40,814 41,140 -0.79% S&P500 (18-Oct-2017) 2,490 2,496 -0.23%

Company LTP Chg % Chg Company LTP Chg % Chg Domestic Market View ONGC 166 7 4.3 INDUSINDBK 1701 -28 -1.6

BAJAJ-AUTO 3030 102 3.5 AUROPHARMA 756 -10 -1.3 Markets to make a cautious but green start of the new week

COALINDIA 261 6 2.3 TATAPOWER 84 -1 -1.2

CNX Nifty CNX Nifty CNX

Top Losers Top Top Gainers Gainers Top INFRATEL 377 7 1.9 ACC 1824 -21 -1.1 The Indian markets recovering from their lows managed a positive close in the last session. Today, the start is INFY 909 16 1.8 TATAPOWER 84 -1 -1.2 likely to be mildly green-to-cautious amid lingering geo- political worries, traders will also be reacting to trade Company LTP Chg % Chg Company LTP Chg % Chg data announced after the market hours on Friday. India’s exports grew by 10.29 percent on a yearly basis ONGC 167 8 4.7 BHEL 132 -5 -3.9 to $23.81 billion in August on account of rise in BAJAJ-AUTO 3022 93 3.2 IDEA 80 -2 -2.6 shipments of engineering, petroleum, chemicals and

COALINDIA 260 5 1.9 LICHSGFIN 647 -13 -2.0 pharmaceuticals products. Imports too rose by 21.02

BSE 100 BSE 100 BSE Top Losers Top Top Gainers Gainers Top percent to $ 35.46 billion in August from $29.30 billion INFY 909 16 1.8 DRREDDY 2210 -40 -1.8 in the year-ago month due to rise in inward shipments TVSMOTOR 650 9 1.4 RELINFRA 499 -8 -1.6 of crude oil and gold. The trade deficit in the month widened to $ 11.64 billion from $ 7.7 billion during the Company LTP Chg % Chg Company LTP Chg % Chg same month a year ago. There will be buzz in the oil sector stocks, as the industry chamber Assocham has MPHASIS 621 17 2.8 RCOM 21 -1 -4.9 called for a cut in the cess on transport fuels, saying that L&TFH 207 5 2.7 CENTRALBK 91 -4 -4.2 the consumer is getting restive about a three-year high

MFSL 615 16 2.6 SJVN 33 -1 -3.5 in the petrol prices and feels the market pricing

Top Losers Top

BSE Midcap BSE Midcap BSE Top Gainers Gainers Top mechanism is being distorted by tax hikes on petrol and OFSS 3537 72.7 2.1 KANSAINER 496 -16 -3.1 diesel. Meanwhile, Petroleum Minister Dharmendra OBEROIRLTY 396 7 1.9 INDHOTEL 116 -3 -2.8 Pradhan has called for a ‘uniform tax mechanism’ across the country for petroleum products and said that said Company LTP Chg % Chg Company LTP Chg % Chg petroleum products will need to be brought under the ambit of the goods and services tax (GST). There will be LYPSAGEMS 47 8 20.0 FLEXITUFF 85 -9.05 -9.6 buzz from the primary market too, where Dixon GRAPHITE 325 54 20.0 GOODLUCK 90 -8 -8.1 Technologies and Bharat Road Network, will make stock

MIRCELECTR 24 4 20.0 HIMFIBP 5 -0.5 -7.8 market debut. Dixon Technologies’ IPO was subscribed

Top Losers Top

Top Gainers Gainers Top BSE Smallcap BSE BSE Smallcap BSE 117.83 times, while Bharat Road Network was PROZONINTU 50 8 18.9 KESORAMIND 135 -8 -5.9 subscribed 1.81 times. TVSELECT 221 34 17.9 DIAPOWER 26 -2 -5.8

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Morning Notes

Domestic Market Overview

Late hour buying help benchmarks to end flat Buying which emerged in last leg of trade helped markets to erase all of their initial losses to end flat on Friday. Markets started off on pessimistic note, as geo-political worries resurfaced with North Korea’s new provocative move of firing another ballistic missile over Japan. Key gauges traded in red terrain for most part of the day, as sentiments remained dampened with SBI research report stating that country’s GDP is likely to remain below 6 percent in the second quarter of 2017-18 owing to muted agriculture growth and sluggish performance of manufacturing and mining sector. The GDP stood at a three year low at 5.7% for April-June quarter of 2017-18, which the report said has raised concerns about the annual GDP numbers for the fiscal. Traders also remained concerned with United Nations’ report stating that effects of demonetisation and rollout of the Goods and Services Tax regime on the informal sector and reduction in pace of credit creation may affect India’s growth prospects and the country unlikely to serve as the ‘growth pole’ for the global economy in the near future. Domestic bourses even went to test psychological 32,150 (Sensex) and 10,050 (Nifty) levels, but the key gauges got some support near those intraday low levels as they trim their losses from thereon and ended near their neutral lines, as investors continued hunt for fundamentally strong stocks. Traders took some sense of relief with report that India and Japan have signed 15 key agreements including open sky agreement, after the historic launch of India's first bullet train project between Ahmedabad and Mumbai, to further expand the horizon of their bilateral relationship. Information Technology (IT) stocks remained on buyers’ radar after a senior US official sought to allay India’s concerns on the H-1B visa programme, which is being reviewed by the Trump administration, saying there are no restrictions in place. The official said around 70% of the visas issued under the H- 1B category over the past nine months have gone to Indians and that a record 1.2 million visas of Indians were adjudicated by the US last year. Select stocks from textile sector remained in focus, as the Textile Commissioner said that country’s technical textile market has huge growth potential and it is expected to grow at 12% per annum to reach $23 billion (Rs 1,50,000 crore) in 2020.

Global Market Overview

Asian markets end mostly in green on Friday Asian equity markets ended mostly higher on Friday. Japanese shares shrugged off a weak start to end modestly higher as the dollar regained its footing against the yen after sliding in early trading. Meanwhile, North Korea's latest missile launch over the Japanese archipelago earlier in the day stirred new worries and stronger-than-expected US inflation data stoked expectations of another Fed rate hike this year. Japan's PM Shinzo Abe said his country would ‘never tolerate’ North Korea's dangerous actions. Rex Tillerson, US secretary of state, said that these continued provocations only deepen North Korea's diplomatic and economic isolation. Chinese shares ended lower as a slew of soft data suggested the world’s second-largest economy is starting to lose some momentum in the face of rising borrowing costs and government-mandated capacity cuts. US markets closed higher; posts sharp weekly gains The US markets closed higher on Friday, posting sharp weekly gains, with a big assist from rally in telecommunication and bank shares, as Wall Street shook off North Korea’s latest missile launch. Stocks initially struggled for direction as investors weighed North Korea’s decision to fire a missile over Japan for the second time in a month, but soon found firmer footing. The New York Federal Reserve reduced its estimate of US gross domestic product growth for the third quarter and fourth quarter to below 2 percent, based on unexpected falls in industrial output and retail sales in August. The regional central bank’s ‘Nowcast’ model calculated the economy was expanding at an annualized pace of 1.34 percent in the third quarter, slower than 2.06 percent last week. Its GDP estimate for the fourth quarter was lowered to 1.82 percent from 2.62 percent a week earlier. The Dow Jones added 64.86 points or 0.29 percent to 22,268.34, the Nasdaq gained 19.39 points or 0.30 percent to 6,448.47 and the S&P 500 edged higher by 4.61 points or 0.18 percent to 2,500.23.

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Morning Notes

Index Futures

(OI in '000 Shares) Future Chg Spot Chg Prem / Total Open Interest 15-Sep (%) 15-Sep (%) Disc 15-Sep Chg (%) NIFTY 10,102 -0.12 10,085 -0.01 16.6 22,034 0.77

NIFTYIT 10,612 0.86 10,600 0.99 12.3 32 -1.24

BANKNIFTY 24,853 -0.51 24,844 -0.27 8.7 2,527 -0.47

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

Symbol Total OI Del Qty Cash Market Prev Increase Spot Fut Spot Fut Prem / 15-Sep % Chg. 15-Sep % Del. % Del. Del Qty (‎₹) (‎₹) Chg (%.) Chg (%.) Disc MFSL 5,659 20% 12,449,712 70% 57% 12,116,815 616 618 2.6% 2.7% 1.9

BAJAJ-AUTO 1,616 15% 273,385 44% 41% 217,948 3,026 3,034 3.4% 3.1% 8.4

SIEMENS 719 7% 172,063 56% 30% 20,923 1,383 1,382 0.0% -0.2% -0.5

TECHM 10,610 7% 1,244,114 62% 38% 794,466 444 444 0.4% 0.8% 0.1

BANKINDIA 20,718 6% 469,716 13% 10% 17,979 155 155 0.7% 0.9% 0.7

HCLTECH 7,125 6% 1,342,998 75% 70% 427,246 887 888 0.7% 0.9% 1.1

GODREJCP 1,962 4% 486,941 80% 48% 402,826 939 940 0.4% 0.2% 1.1

BRITANNIA 586 4% 91,826 63% 84% 9,482 4,357 4,370 0.4% 0.6% 12.8

LUPIN 8,414 3% 1,146,184 47% 42% 29,593 1,010 1,011 0.5% 0.3% 1.7

HINDUNILVR 9,938 3% 1,145,425 81% 71% 223,017 1,246 1,248 0.4% -0.2% 1.7

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

Symbol Total OI Del Qty Cash Market Prev Increase in Spot Fut Spot Fut Prem / 15-Sep % Chg. 15-Sep % Del. % Del. Del Qty (‎₹) (‎₹) Chg (%.) Chg (%.) Disc SHREECEM 37 15% 21,166 61% 59% 14,387 18,644 18,611 -0.8% -1.3% -32.9

BERGEPAINT 2,814 12% 1,094,416 42% 42% 591,280 264 266 -2.6% -2.5% 1.1

LICHSGFIN 10,438 11% 1,833,671 66% 31% 1,576,303 645 647 -2.1% -2.1% 2.3

ICICIPRULI 6,007 10% 1,340,679 61% 49% 827,331 424 426 -0.5% -0.4% 2.0

CGPOWER 22,548 8% 3,027,625 72% 51% 1,742,938 83 84 -2.6% -2.4% 0.3

INDUSINDBK 5,348 8% 2,298,196 82% 49% 1,793,449 1699 1706 -1.4% -1.5% 6.8

ITC 50,868 7% 10,827,399 80% 71% 5,619,351 269 270 -1.0% -1.1% 0.9

COLPAL 1,364 6% 244,104 70% 54% 152,640 1138 1138 -0.3% -0.8% 0.7

HEROMOTOCO 1,355 6% 274,499 68% 49% 176,422 3888 3901 -0.1% -0.2% 13.0

INDIGO 2,017 5% 561,274 63% 46% 314,246 1176 1181 -0.3% -0.2% 4.4

LKP Advisory

Morning Notes

Corporate News

 Asian Granito India has launched its new product range of Glazed Vitrified Tiles (GVT) in Grestek with brand name MARBLEX in size of 1200 x1200mm, 1200x2400mm with all new latest technology and High end finishing. It has also launched all new range of GVT tiles with brand name ‘Platina’ an exclusive new designs in all ready famous range of Marvel.

 Zydus Cadila’s Nesher Pharmaceuticals has received final approval from the United States Food and Drug Administration (USFDA) to market Oseltamivir Powder for Oral Suspension, 6 mg/ml which is used in the treatment and prevention of influenza.

 Vindhya Telelinks has received an approval for issuance of Commercial Paper(s) of aggregate face value up to Rs 155 crore to the permitted investors based on the competitive offers. The Board of Directors of the company at their meeting held on September 15, 2017 has approved the same.

 Somany Ceramics has redeemed Commercial Paper worth Rs 40.00 crore issued on June 20, 2017 with maturity date of September 15, 2017. The company has also redeemed Commercial Paper worth Rs 30.00 crore issued on July 25, 2017 with maturity date of September 15, 2017.

 Vindhya Telelinks has received an approval for issuance of Unsecured /Unlisted, Rated, Redeemable Non-Convertible Debentures Series-II aggregating to Rs 50.00 crore on private placement basis for pre-payment / re-payment of Inter-corporate Loans and other corporate purposes. The Board of Directors of the company at their meeting held on September 15, 2017 has approved the same.

 Piramal Enterprises has received an approval for the allotment of 2,000 Secured Redeemable Non-Convertible Debentures (NCDs), having the Face Value of Rs 10 lakh each, aggregating to Rs 200 crore on private placement basis. The Meeting of Administrative Committee of the Board of Directors of the Company held on September 15, 2017 has approved the same.

 Tata Consultancy Services (TCS) has been recognized as a Leader in the 2017 Gartner Magic Quadrant for Data Center Outsourcing (DCO) and Infrastructure Utility Services (IUS) in North America.

 HPL Electric & Power has issued Commercial Papers (CPs) of Rs 200 crore. The tenure of the instrument is 90 days and was allotted on September 15, 2017. The coupon/interest will be paid upfront at the rate of 7.45% per annum and the paper will mature on December 14, 2017.

 Sangam Advisors has acquired the 10,000 equity shares of Rs 10 each (representing 100% shareholding) of 8M Solar Fund, New Delhi. With this acquisition of shareholding, 8M Solar Fund became wholly owned subsidiary of the company with effect from September 15, 2017.

 Balrampur Chini Mills has received an approval for an investment of up to Rs 37.50 crore as first tranche and a cumulative investment of Rs 175 crore, in tranches, over a period of five years in financing activities in education sector. The board of directors at their meeting held on September 15, 2017, has approved for the same.

 Mangalam Drugs & Organics has recently received the final approval from WHO for the drug Emtricitabine. Earlier in May, the company had received the final approval from WHO-Geneva for its plant at Unit-2 situated at G.I.D.C, Vapi, in the state of Gujarat.

 Laurus Labs has received the Establishment Inspection Report (EIR) from US Food and Drug Administration (USFDA) for its Finished Dosage Formulations (FDF) & Active Pharmaceutical Ingredients (API) manufacturing plant, Unit 2, located at Atchutapuram, Vishakhapatnam, for the inspection completed in May 2017.

 Shipping Corporation of India (SCI) has taken physical delivery of a secondhand Very Large Gas Carrier (VLGC) of 53,503 DWT capacity Nanda Devi (46,506 GT) on September 14, 2017.

 Mahanagar Gas (MGL) has started Piped Natural Gas (PNG) supply in Dombivili (East) area in state of Maharashtra with the residential societies in Milap Nagar being the first households to receive domestic PNG. The company supplies eco-friendly and safe Compressed Natural Gas (CNG), Piped Natural Gas (PNG) in Mumbai Metropolitan Region (MMR) and Raigad district.

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Morning Notes

 Wipro plans to deliver the Wipro BoundaryLess Data Center (BLDC) solution built on Hewlett Packard Enterprise (HPE) ProLiant for Microsoft Azure Stack to help customers expand their infrastructure capabilities beyond the traditional walls of the enterprise datacenter.

 The US Food and Drug Administration (USFDA) has completed the inspection at Dr. Reddy’s Laboratories’ API Mirfield Plant, United Kingdom on September 15, 2017. The company has been issued a Form 483 with three observations.

 Zydus Cadila has received the final approval from the United States Food & Drug Administration (USFDA) to market Modafinil tablets USP, 100 mg and 200 mg. Modafinil tablets are indicated to improve wakefulness in adult patients with excessive sleepiness associated with narcolepsy, obstructive sleep apnoea or shift work disorder. The sales of Modafinil tablets USP are estimated at $148.66 million, as per IMS Health.

 Starlog Enterprises has been awarded a contract of Rs 5.45 crore for hiring of equipment for the Bharat Oman Refinery project from Anwesha Engineering & Projects.

 Hind Aluminium Industries’ subsidiary company -- Hind Aluminium Industries (Kenya) has started its commercial production.

 Hubtown through its subsidiaries, associates, partnerships and joint ventures is planning to launch affordable housing projects in Mumbai in the next six months. The launches in the affordable space is expected to increase by end of this year as the segment provides a good business proposition on a long-term basis because of the growing demand.

 Trishakti Electronics & Industries has generated a income of $100,000.00 as commission towards Agency Services, provided to SJ Petrolium Machinery Co., belonging to SINOPEC Group, China, for award of contract from PT Petrodrill Manufaktur, Indronesia, for 350HP Workover Rig.

 IDBI Bank has been awarded Rajbhasha Kirti Puraskar in linguistic region ‘B’ of nationalised banks and financial institutions category for the year 2016-17 for its Hindi Magazine ‘Vikas Prabha’. The award was received by the Bank at a function held at Vigyan Bhavan, New Delhi on September 14, 2017.

 Insight Solutions has bought 25 lakh shares of Welspun Enterprises. The company has purchased these shares at Rs 136.18 per shares on the BSE on September 14, 2017.

 The Joda East Iron Mine (JEIM) of Tata Steel’s Ore Mines Quarries (OMQ) Division located in the Keonjhar district of Odisha received the ‘Pollution Control Excellence Award’ for the year 2017 in the category of mines from State Pollution Control Board (SPCB), Odisha.

 Induslnd Bank has partnered with the Asian Development Bank (ADB) to provide a loan of up to $200 million to low income women borrowers in rural India. The 7-year senior loan will go toward Induslnd Bank’s microfinance activities.

 Tata Motors has unveiled its commercial vehicle -- Tata Yodha -- in Nepal in association with its authorised partner Sipradi Trading. The vehicle, which comes with a 3 litre engine, is suitable for diverse business requirements like transporting agri-produce, poultry and fish. The model can also be used as a cash van and as service support vehicle at construction sites etc.

 DQ Entertainment (DQE) has appointed new licensing agents for its popular brand The Jungle Book .The series will be represented for licensing & merchandising by The Licensing Group (TLG) in North America, CPL for Latin America & Mexico and CIMCA in Central America. Sinecast, Turkey has been appointed as promotional partners for the brand in Turkey.

 Lloyds Metals and Energy has received listing approval from Metropolitan Stock Exchange of India (MSEI) for listing of around 22.26 crore equity shares face value of Rs 1 each on September 14, 2017. Further, trading of shares on the MSEI shall be commenced with effect from September 18, 2017.

 Satin Creditcare Network is planning to issue Non-Convertible Debentures up-to the amount of Rs 20 crore through Private Placement. The meeting of Working Committee of the Board of Director of the Company is scheduled to be held on September 19, 2017 for the same.

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Morning Notes

 Vijay Shanthi Builders has received an approval to make the investments not exceeding Rs 800 lakh in a Subsidiary Company VAHI set up in Canada. The said subsidiary shall engage in development of townships, construction of residential/commercial premises in Canada. The amount to be invested shall be invested in various tranches from time to time and shall be upto an overall limit of Rs 800 lakh. The Board of Directors of the company at its meeting held on September 14, 2017 has approved the same.

 KDDL has received an approval for investment up to Rs 7 crore in Equity share capital of subsidiary company, Ethos at the rate of Rs 141 per share (including premium of Rs 131 per share as per the valuation report) either in one or more tranches. The Board of Directors of the company at its meeting held on September 14, 2017 has approved the same.

 Balmer Lawrie & Company is reportedly planning to invest Rs 150-200 crore primarily in the logistics and industrial packaging businesses over the next two years. In this regard, the company had appointed PwC as a consultant last year to suggest a roadmap for growth over the next four-to-five years.

 Autolite (India) will make investment in Autolite Manufacturing (AML) having orders worth Rs 480 crore to be supplied in phased manner to a leading OEM. The Board of Directors has authorized executive directors to make investment in terms of Section 186 of the Companies Act, 2013. AML is planning to set up production line of Lithium ion battery pack and battery management system in collaboration with a foreign company.

 Balmer Lawrie & Company has inked Memorandum of Understanding (MoU) with IIM Calcutta Innovation Park to provide seed fund of Rs 5 crore to start-up ideas in areas of operation of the PSU. IIM Calcutta Innovation Park would incubate the start-ups by providing work space, mentoring, networking, besides giving customer and investor-connect.

 Bajaj Finance has allotted over 2.6 crore shares to qualified institutional buyers (QIBs), fetching over Rs 5,044 crore. Further, there is no change in shares held by its parent Bajaj Finserv and persons acting in concert (PAC) i.e., promoter and promoter group.

 The State Pollution Control Board, Odisha (SPCB) on September 13, 2017 served a direction resulting in a temporary closure of Vedanta’s three units of 135 MW each of the 1,215 MW power plant, and two units of 600 MW each of the 2,400 MW power plant. This step has been taken following a breach in the Ash Pond dyke wall at Jharsuguda at the end of August. The remaining units of the 1,215 MW plant have been allowed to operate until October 12, 2017, and the remaining units of the 2,400MW plant have been allowed to operate until September 20, 2017.

 Elgi Equipments has launched a SIM-based Internet of Things (IOT) service ‘Air Alert’ that informs its customers on strategic, analytical and operational data about their compressors. The company is targeting a 15% growth in business this fiscal. By the year-end, the company hopes to have this service on around 500 compressors.

 Amara Raja Group is reportedly planning to set up two more Skill Development Centres at Diguvamagham in Chittoor district and in Guntur district of Andhra Pradesh. The first Amara Raja Skill Development Centre, started in 2014 with an investment of Rs 30 crore at Pettamitta, Tirupati also in Andhra Pradesh, has been training youth in new areas leading to their employment.

 GE Power India has been reportedly selected by the Shapoorji Pallonji Group (SP Group) to supply the power generation equipment for the upcoming 220 megawatt (MW) combined cycle power plant in the Bhola district, Bangladesh.

 Balmer Lawrie & Company is aiming to earn the Navratna status in five years time. The company presently has Miniratna company status and the turnover in the last financial year stood at Rs 1,900 crore. In next five years time, if the turnover touches Rs 8,000 crore, then the company will seek the Navratna status.

 Hinduja Ventures has received an approval for investment of Rs 7.946 crore in Hinduja Leyland Finance (HLFL) through rights issue. The Investment Committee on September 04, 2017 and Board of directors of the company at its meeting held on September 14, 2017 has approved for the same.

 Steel Authority of India (SAIL) has reported a 18% jump in sales during August over the corresponding month last year. The company has sold 91,000 tonnes in August and targets to sell 1 million tonnes through its dealer network in the current financial year and aims to double it in the next three years.

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Morning Notes

 Ujaas Energy has received Letter of Award of contract from WBREDA (West Bengal Renewable Energy Development Agency) for Installation and Commissioning of 150 nos. Rooftop Grid Connected Solar PV Power Plants each in array capacity of 10 Kwp at various locations of West Bengal.

 Wipro has joined The Linux Foundation as a Silver Member. The Linux Foundation is a nonprofit organization enabling mass innovation through open source technologies. In addition to supporting Linux, the Foundation also supports associated open source projects such as Open Network Automation Platform (ONAP), Hyperledger, Cloud Native Computing Foundation, Cloud Foundry Foundation and Automotive Grade Linux, among others.

 Ujaas Energy has received Letter of Award (LOA) from Oil India for EPC (Engineering, Procurement and Construction) contract for Solar Energy Generation project of 500 KW at Pump Station of Oil India at Jorhat in the state of Assam.

 Info-Drive Software has entered into a Memorandum of Understanding (MoU) with KM Wedding Events Management (KM India) popularly called ‘Kalayana Malai’. This step has been taken by the company as part of expansion initiatives in the ITeS and BPO space in order to expand the scope of operations.

 Ujaas Energy has received Letter of Award (LOA) from Oil India for EPC (Engineering, Procurement and Construction) contract for Solar Energy Generation project of 500 KW at Pump Station of Oil India at Jorhat in the state of Assam.

 Wipro has been awarded a seven-year contract by innogy SE to manage their data center and cloud services. innogy SE is an established European energy company. With its three business areas of Renewables, Grid & Infrastructure and Retail, it is well equipped for the work ahead in a modern, decarbonised, decentralized and digital energy world.

Economy

 India, Japan sign 15 agreements to widen ties

After the historic launch of India's first bullet train project between Ahmedabad and Mumbai, India and Japan have signed 15 key agreements including open sky agreement, to further expand the horizon of their bilateral relationship. The open sky agreement will allow the countries airlines to operate unlimited number of flights between the two countries.

Along with agreements like disaster risk management, international joint exchange program in science & technology and India- Japan Act East forum, the two nations also agreed to set up a working group to boost civil nuclear ties, reaffirming their commitment to work together for India to become a full member in multilateral export control regimes such as the Nuclear Suppliers Group (NSG), Wassenaar Arrangement and the Australia Group.

Besides, in order to accelerate and facilitate Japanese investments in India, an agreement was signed between the Department of Industrial Policy and Promotion and Japan's Ministry of Economy, Trade and Industry. To implement the commercial arrangement of ‘Cool EMS’ service, one more agreement was signed between India Post and Japan Post which will help to send fresh food from Japan to India in cool boxes for Japanese expatriates in India.

 India’s technical textile industry likely to grow at 12% CAGR

Textile Commissioner Kavita Gupta has said that the Indian technical textile market is expected to grow at 12 percent per annum to reach $23 billion in the next two years from the present $18.16 billion. She noted that the use of Technical textiles is expanding globally and India comprises only 4 percent of the global technical textiles exports, and 3 percent imports. She also said that technical textile offers immense potential and has been termed as a sunrise industry in India. With sufficient investments into the technology, she believes that the industry would grow exponentially.

The commissioner has stated that India’s textiles sector is also one of the largest contributing sectors of India’s exports contributing 14 percent to the country’s total exports basket. She said that the size of India's textile market is expected to touch $250 billion in 2020 from current $150 billion. Adding further, she said that the industry employs about 51 million people directly and 68 million people indirectly as India has overtaken Italy and Germany to emerge as the world’s second largest textile exporter.

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Morning Notes

Gupta further said that in India technical textiles is expected to attract lot of investment opportunities. She also highlighted that in the last five years period the growth has been 12.4 percent CAGR. In addition, she said that demand for technical textiles is expected to stay steady during the period 2017-2020, due to a broadening application in end-use industries, such as automotive, construction, healthcare, and sports equipment and so on. Besides, she said that the government is offering 15 percent subsidy for domestic players, who want to set up machinery and added that the government has also set up eight Centers for Excellence units to foster research & development in the sector.

 India’s informal sector may be further hit by GST; GDP growth to moderate: UN report

Lowering India’s GDP growth forecast for the year 2017 to 6.7% from 7% in 2016, a UN report has said that the informal sector which still accounts for at least one-third of the country’s GDP and more than four-fifths of employment, was badly affected by the government’s ‘demonetization’ move, and it may be further affected by the rollout of the Goods and Services Tax (GST) regime.

Referring to India and China, UNCTAD’s Trade and Development 2017 report noted that at the current levels of growth, the countries are unlikely to serve as growth polls for the global economy in near future. It pointed out that India’s growth performance depends to a large extent on reforms to its banking sector, which is burdened with large volumes of stressed and non-performing assets (NPAs), and there are already signs of a reduction in the pace of credit creation. It added that banking sector in India is saddled with NPAs of over Rs 8 lakh crore.

The report further said that since debt-financed private investment and consumption have been important drivers of growth in India, the easing of the credit boom is likely to slow GDP growth. It also said that the gradual slowdown of China is expected to continue as it moves ahead with rebalancing its economy, towards domestic markets. Thus, it noted that the dependence on debt makes the boom in China and India difficult to sustain and raises the possibility that when the downturn occurs in these countries, deleveraging will accelerate the fall and make recovery difficult.

 Crisil estimates bank’s NPAs to increase by 1 percentage point by March 2018

Credit ratings agency, Crisil Ratings in its latest report has estimated the gross non-performing assets (NPAs) in the banking system to increase by 1 percentage point to 10.5% of advances as of March 2018, up from 9.5% as of March 2017. It said that about two-thirds of the overall stressed assets in the banking system has already been recognised by banks as NPAs as on March 31, 2017. It also estimates the total amount of stressed loans, which includes NPAs and standard assets that are under pressure currently and could deteriorate into NPAs, to be at Rs 11.5 trillion or 14% of the system and added that infrastructure, power, engineering, and construction sectors contribute bulk of the stressed assets.

Crisil Ratings has said that the assets under pressure mostly comprise not-yet-recognised bad loans (recognised as NPA in one bank, but not in others), restructured standard accounts, and stressed assets structured under the Reserve Bank of India resolution schemes such as SDR (strategic debt restructuring), 5:25 refinancing and S4A (Scheme for Sustainable Structuring of Stressed Assets). It also said that faster resolution of stressed accounts through the Insolvency and Bankruptcy Code and various structuring schemes, is critical to improving the asset quality of banks. The report, however, said over the medium-term, a big increase in stressed loans is unlikely on factors like higher commodity prices, lower interest rates, improved capital structure, and efficiency gains for corporates.

The rating agency further said that with the majority of stressed assets now recognised as NPAs, rest of the corporate loan portfolio of banks can be expected to perform better over the medium-term. It also said there will be asset quality deterioration in loans to small businesses and farmers, which are impacted due to introduction of the goods and services tax and demonetisation, and debt waivers, respectively. But it said this is unlikely to put pressure on bank balance-sheets the way large exposures are doing. The agency expects that fresh NPA creation will decelerate this fiscal, but the overall stock would continue to rise because slippages would still outpace recoveries.

LKP Advisory Source: Reuters, ACE Equity & LKP Research

Tech View

CNX Nifty

Technical View

Nifty Spot Daily (10085.40) Nifty tried to clear out the previous high and also the week hurdle 10126 but failed to do so. For the week 10075-10051 acted as a strong support. the week gone had seen activity in not nifty counters and also midcap stocks. Pharma stocks were in demand and also IT sector looks to revive. For the Week major hurdle is 10126 - 10133 and above it 10151-10176-10203 Lower support placed at 10075-10051 and below it 10001-9951.Over the Trend is still bullish with lower levels 10075-10051 imp to hold. Bank nifty hurdle placed at 24925-24965 and above it will move in to next trajectory of 25004-250083-25123. Lower support are place at 24807-24886.

LKP Advisory

Tech View

PIVOT POINTS

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

ACC 1,821 1,864 1,842 1,824 1,806 1,784 COALINDIA 260 269 263 259 255 249

APOLLOTYRE 256 266 261 257 252 247 DLF 192 196 194 192 190 187

ASHOKLEY 117 121 118 116 114 112 CONCOR 1,355 1,415 1,386 1,362 1,338 1,308

AXISBANK 516 528 521 516 510 503 ADANIENT 131 134 132 131 129 127

BANKBARODA 145 148 146 145 144 142 DRREDDY 2,211 2,280 2,246 2,219 2,192 2,158

BATAINDIA 721 738 728 719 711 701 DISHTV 77 80 79 78 76 75

BEML 1,848 1,880 1,862 1,848 1,833 1,815 EICHERMOT 32,008 32,540 32,197 31,919 31,641 31,298

BERGEPAINT 264 281 273 267 260 252 ENGINERSIN 158 162 160 158 156 154

BHARATFIN 944 970 957 946 936 923 EQUITAS 162 168 165 163 161 158

BHARATFORG 1,240 1,273 1,257 1,244 1,231 1,215 EXIDEIND 218 224 221 218 216 212

BOSCHLTD 21,819 22,214 21,990 21,809 21,627 21,403 FEDERALBNK 115 118 116 115 114 112

BPCL 497 513 504 497 490 481 GODFRYPHLP 1,049 1,074 1,059 1,048 1,036 1,021

BRITANNIA 4,357 4,426 4,387 4,356 4,325 4,286 GODREJCP 939 962 949 939 928 916

CANFINHOME 2,794 2,860 2,825 2,796 2,768 2,732 GODREJIND 640 658 647 638 629 618

CGPOWER 83 87 86 84 82 80 HAVELLS 507 519 511 505 499 491

ADANIPORTS 405 415 410 406 402 397 HEROMOTOCO 3,888 3,945 3,914 3,889 3,865 3,834

ADANIPOWER 31 33 32 32 31 30 HINDALCO 248 258 251 246 241 235

ALBK 73 76 74 72 70 67 AMBUJACEM 284 292 287 284 280 275

CHENNPETRO 438 452 445 438 432 424 HINDPETRO 453 475 464 456 447 437

AMARAJABAT 772 793 782 774 766 755 HINDZINC 304 314 308 304 299 293

APOLLOHOSP 1,061 1,093 1,077 1,064 1,051 1,035 ESCORTS 669 689 679 670 662 652

ARVIND 413 430 420 412 403 393 IBREALEST 251 263 255 249 242 235

CHOLAFIN 1,164 1,212 1,186 1,166 1,145 1,120 IBULHSGFIN 1,266 1,294 1,275 1,261 1,246 1,228

CIPLA 561 574 567 561 556 549 ANDHRABANK 59 67 61 57 52 47

ASIANPAINT 1,246 1,273 1,255 1,240 1,226 1,208 ICIL 119 125 122 120 118 115

AUROPHARMA 758 782 770 760 750 738 IDFC 62 65 63 62 60 59

BAJFINANCE 1,903 1,941 1,918 1,899 1,880 1,856 IGL 1,440 1,494 1,461 1,434 1,406 1,373

BALRAMCHIN 175 183 179 175 172 167 FORTIS 150 155 153 150 148 145

BANKINDIA 155 161 157 154 151 147 INDIACEM 190 202 197 192 187 181

COLPAL 1,138 1,162 1,147 1,135 1,123 1,108 INDIGO 1,176 1,225 1,200 1,180 1,160 1,135

BHEL 132 138 135 133 130 128 GLENMARK 603 615 608 601 595 587

CUMMINSIND 939 965 951 940 929 916 INDUSINDBK 1,699 1,757 1,729 1,706 1,683 1,655

DALMIABHA 2,827 2,907 2,853 2,808 2,764 2,710 INFIBEAM 147 152 149 146 144 140

INFY 908 934 918 905 892 875

CADILAHC 482 500 488 479 470 458 IOC 416 434 425 418 411 402

CAPF 802 836 817 802 787 768 GRASIM 1,240 1,297 1,268 1,244 1,220 1,191

CASTROLIND 388 394 390 387 384 380 ITC 269 276 273 270 267 264

CENTURYTEX 1,288 1,320 1,302 1,287 1,273 1,255 HCLTECH 887 918 898 883 867 848

CESC 1,049 1,087 1,068 1,053 1,038 1,020 JETAIRWAYS 566 585 575 567 559 549

DCBBANK 190 194 192 190 189 186 JINDALSTEL 149 157 152 148 143 138

LKP Advisory

Tech View

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

HDFC 1,769 1,802 1,784 1,769 1,755 1,737 POWERGRID 213 219 215 211 208 204

HEXAWARE 278 284 280 277 274 270 RAYMOND 880 912 897 885 873 858

JSWENERGY 78 81 79 78 77 75 PFC 131 134 132 131 130 128

BAJAJFINSV 5,675 5,809 5,733 5,672 5,610 5,534 RBLBANK 532 544 537 531 525 517

JSWSTEEL 268 278 271 266 260 254 PNB 145 149 147 145 143 141

JUBLFOOD 1,359 1,392 1,373 1,358 1,343 1,325 GSFC 139 145 141 139 136 133

JUSTDIAL 385 399 392 386 380 373 RELCAPITAL 753 775 762 751 740 727

ICICIBANK 292 299 296 293 290 286 HDFCBANK 1,849 1,870 1,856 1,845 1,833 1,819

KAJARIACER 710 737 723 713 702 688 HDIL 62 65 63 62 61 60

KPIT 120 125 123 121 119 116 HINDUNILVR 1,246 1,275 1,259 1,246 1,233 1,217

KSCL 577 597 585 575 565 553 RELIANCE 842 868 854 843 832 818

KTKBANK 154 159 156 154 152 149 IDBI 57 58 58 57 56 55

L&TFH 207 218 211 206 200 193 SAIL 62 64 63 62 61 60

LICHSGFIN 645 666 656 649 641 631 SHREECEM 18,644 19,772 19,123 18,598 18,073 17,424

INFRATEL 374 394 384 376 367 357 PTC 122 127 124 122 120 118

LT 1,212 1,239 1,224 1,212 1,200 1,185 SIEMENS 1,383 1,426 1,399 1,377 1,355 1,328

LUPIN 1,010 1,039 1,020 1,005 989 970 RAMCOCEM 750 793 769 749 729 705

BIOCON 348 358 352 346 341 334 SINTEX 28 29 29 28 28 28

M&M 1,294 1,321 1,306 1,294 1,283 1,268 IFCI 23 24 24 24 23 23

M&MFIN 433 448 439 432 424 416 SBIN 272 278 275 272 269 266

MARUTI 8,100 8,192 8,134 8,087 8,041 7,983 SOUTHBANK 29 31 30 29 28 27

MCDOWELL-N 2,649 2,733 2,685 2,645 2,605 2,557 SRF 1,582 1,614 1,594 1,577 1,561 1,541

MOTHERSUMI 333 340 335 331 327 322 INDIANB 283 289 286 283 280 277

KOTAKBANK 1,005 1,024 1,014 1,005 996 985 SRTRANSFIN 1,082 1,120 1,100 1,084 1,068 1,048

MRF 64,544 65,955 65,027 64,277 63,526 62,599 SUNPHARMA 524 541 531 522 514 503

MFSL 616 655 633 615 597 575 TATACHEM 637 653 643 635 628 618

NCC 91 92 91 91 90 89 TATAGLOBAL 211 218 214 211 208 204

CANBK 348 355 351 348 345 341 TATAMTRDVR 228 236 232 229 226 222

NTPC 167 169 168 167 167 166 TATASTEEL 679 691 683 677 671 664

OIL 323 337 329 323 316 308 IRB 217 222 219 217 215 212

DABUR 310 318 313 309 305 300 TITAN 632 644 636 629 623 615

MRPL 136 140 138 136 133 131 TORNTPOWER 220 229 225 221 217 213

MUTHOOTFIN 507 522 513 506 498 489 TV18BRDCST 42 44 43 43 42 41

NBCC 212 217 215 213 211 208 TVSMOTOR 651 673 659 648 637 623

PAGEIND 18,877 19,322 19,016 18,769 18,522 18,216 UNIONBANK 137 141 139 137 136 134

DHFL 568 606 584 566 548 525 UPL 828 848 836 826 816 804

NESTLEIND 7,349 7,523 7,406 7,311 7,217 7,100 VEDL 319 334 325 318 311 302

NIITTECH 500 517 507 498 489 479 VGUARD 197 206 201 197 192 187

PEL 2,882 2,981 2,930 2,889 2,848 2,798 STAR 987 1,017 1,000 985 971 954

PETRONET 231 241 236 231 226 220 VOLTAS 545 561 550 542 533 522

PIDILITIND 838 852 844 838 831 824 YESBANK 1,845 1,888 1,863 1,844 1,824 1,800

PCJEWELLER 348 365 354 346 338 327 SUNTV 824 854 838 825 812 796

LKP Advisory

Tech View

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

SUZLON 17 17 17 17 17 17

MARICO 327 338 333 328 323 317

ZEEL 534 552 540 531 521 510

TATAMOTORS 402 412 407 403 399 394

TATAPOWER 84 86 85 84 84 83

AJANTPHARM 1,214 1,258 1,236 1,219 1,201 1,179

TECHM 444 458 450 443 437 429

TORNTPHARM 1,216 1,251 1,230 1,212 1,195 1,173

MGL 1,116 1,171 1,144 1,123 1,101 1,074

BAJAJ-AUTO 3,026 3,174 3,071 2,988 2,905 2,802

BALKRISIND 1,681 1,743 1,704 1,674 1,643 1,605

CEATLTD 1,764 1,796 1,778 1,763 1,749 1,731

ONGC 167 177 170 165 159 152

HCC 38 40 39 38 37 36

ORIENTBANK 134 138 136 133 131 129

RELINFRA 500 520 510 502 493 483

BHARTIARTL 396 411 403 397 392 384

DIVISLAB 868 930 897 871 844 811

MCX 1,100 1,137 1,119 1,103 1,088 1,069

MINDTREE 465 477 471 465 460 453

GAIL 400 412 406 401 396 389

NMDC 132 135 133 132 130 129

SYNDIBANK 70 76 72 69 65 61

TATAELXSI 1,823 1,859 1,839 1,823 1,807 1,787

GRANULES 126 130 128 126 124 121

LKP Advisory

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