The market has opened lower On Monday, The Nifty down 54.75 points or 0.7 percent at 7555.70. The Asian equities were also trading lower on Monday after a further slump in oil prices on last
Friday.
Challenges and Opportunities: A Qualitative Study on Tax Compliance in Pakistan
Equity Research Report 21 December 2015 Ways2Capital
1.
2. TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )
CNX NIFTY - The market has opened lower On Monday, The Nifty down 54.75 points or 0.7 percent at
7555.70. The Asian equities were also trading lower on Monday after a further slump in oil prices on last
Friday. Equity benchmarks bounced back From Tuesday Nifty ended slightly above 7700-mark, up 50.85
points or 0.66 percent to 7700.90 which is a psychological level of Nifty. US Federal Reserve policy-setting
committee raised the range of its benchmark interest rate by 25 bps. The Equity market pared some positive
movement after the historic rate hike by the US central Bank. Going forward for Next Week, 7800-7850
would be a key resistance level to Nifty. If the Nifty manages to break this level, we may witness an
extension of this bounce towards 7900- 8000 levels. On the other side, 7720-7670 would be the support
levels for the index .Equity benchmarks ended at two-week closing high on Thursday, tracking rally in
global peers after the first Fed rate hike in almost a decade. Index heavyweights drove the market higher.
Nifty could test 8000 by December-end. On Thursday total 78 lakh share traded in Nifty option at the strike
level of 8000 in Nifty. It is a Indication of Strong Confidence Among the investors.The Expectation of
Market for Next week is on bullish the Nifty can give the high of 8000-8050. The Resistance for Nifty for
week is 7783-7864 And Support 7702-7685.
BANK NIFTY FUTURE - The Bank Nifty Also open in red on Monday trading session down by 130
point or 0.80 per cent lower at 16212.40. The Bank Nifty is currently trading at 16647 down by 124 point
or 0.74 per cent. The Banking stocks is Not performing well due to rate changing policy of Federal reserve
of US last Wednesday. The Bank Nifty is seems Strong for Next week. It can cross the level of 16900. The
Strong Resistance for Bank Nifty is 16894-16979 And the Banking Nifty Strong support is 16672-16634. If
the Bank Nifty able to break these Uper level we can expect the 17000-17200 For Next week.RBI has
Introduce the new base rate calculation methodology which will come into the effect from next financial
year. The All over the Trend of Banking Nifty is on Upside.
TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )
NIFTY
DAILY R2 R1 PP S1 S2
8026 7864 7783 7702 7540
WEEKLY R2 R1 PP S1 S2
8616 8020 7722 7424 6828
MONTHLY R2 R1 PP S1 S2
9016 8180 7762 7344 6508
3. BANK NIFTY
DAILY R2 R1 PP S1 S2
17118 16796 16635 16474 16152
WEEKLY R2 R1 PP S1 S2
18260 17098 16517 15936 14774
MONTHLY R2 R1 PP S1 S2
20677 18065 16759 15453 14147
MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS
NIFTY 7816 7969 8063 8263
BANK NIFTY 16920 17223 17482 17982
PARABOLIC SAR DAILY WEEKLY MONTHLY
NIFTY 7583 8358 8556
BANK NIFTY 16825 16085 19682
4. PATTERN FORMATION ( NIFTY AND BANK NIFTY )
Depiction of Chart - On The Above given daily Chart of MAs lag current price action because they are based on past prices the longer
the time period for the MA, the greater the lag. Thus a 100-day MA will have a much greater degree of lag than a Less-days MA because it
contains prices for the past 100 days. With breaks above and below this moving average considered to be important trading signals.for
Buying or Selling. MAs also impart important trading signals on their own, or when two averages cross over. A rising MA indicates that the
security is in an uptrend, while a declining MA indicates that it is in a downtrend. Similarly, upward momentum is confirmed with a bullish
crossover, which occurs when a short-term MA crosses above a longer-term MA. Downward momentum is confirmed with a bearish
crossover, which occurs when a short-term MA crosses below a longer-term MA.While on the Above given Chart both the condition are not
following.The chances of Nifty50 to give gap-up opening in next week. So we can expect that if the Nifty is crossing the level of 7800 it
can make the high of 7950-8000 for Next Week. Weekly Support of Nifty Is 7702-7540 And Resistance is 7864-8026.
5. BANK NIFTY MACD
Details of Chart On the Above given chart of Bank Nify MOVING AVERAGE for 100 Days along with EMA for 50 days. is the
strong Resistance for Bank Nifty in weekly chart.both the MA as Resistance leevel it could make high of 16900.The market is not more
volatile due to global news. However Next Session of Bank nifty could be expect in bullish trend. The Banking Industry Stocks is not
performing well. So Banking Industry Shares Can open in the upside on Monday. The Support for Bank Nifty Is 16474 S2 16152 And the
Resistance for Bank Nifty is R1 16900 R2 1700.. The All over trend of Bank Nifty will be positive we can see a sharp bullish opening
only for next trading session .
7. TOP 15 ACHIEVERS // TOP 15 LOOSERS
NEXT WEEK STARS (AS PER TECHNICAL ANALYSIS PRIDICTION)
NSE FUTURE
1. EXIDE INDIA FUTURE : EXIDE INDIA OPEN AT 143.30 AND CLOSE AT 144.70 MADE
HIGH OF 145.80 MOVES IN BULLISH TREND ON DAILY CHART OF EXIDEINDIA
SHOWS CONITNOUSLY BULLISH MOVEMNET WE CAN EXPECT FURTHER BULLISH
TREND IN EXIDE INDIA. WE CAN MADE LONG POSITION IN IT ABOVE 146 TGT 156
SL 144.
2. RECLTD FUTURE : RECLTD SHOWS BULLISH TREND ON DAILY CHART IT CAN
MOVE FURTHER IN UPSIDE DIRECTION WE CAN MADE LONG POSITION IN IT
ABOVE 224 TGT 250 SL 216.
SR.NO SCRIPT NAME PREV CLOSE CMP % CHANGE
1 Indian Bank 124.20 113.10
-8.94 %
2 PMC Fincorp 0.69 0.63
-8.70 %
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3 Punj. NationlBak 130.45 121.90
-6.55 %
4 Mahi. & Mahi 1,312.80 1240.5
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6 Union Bank of In 157.15 149.80
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7 Dish TV India Ltd. 101.45 96.90
-4.48 %
8 Tata Motors Ltd. 393.95 378.25
-3.99 %
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9 Axis Bank Ltd. 450.90 433.25
-3.91 %
10 ICICI Bank 259.50 250
-3.66 %
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11 Shriram Trans.Fi 852.25 821.90
-3.56 %
12 GujaratStatePetrone
t
132.15 127.85
-3.25 %
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13 SBI 234.35 227.05
-3.11 %
14 Max India Ltd. 515.95 500.30
-3.03 %
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15 Gujarat Pipavav
Port
153.90 150.05 -2.50 %
SR.NO SCRIPT NAME
PREV
CLOSE
CMP % CHANGE
1 BEML 1051.15 1263.60 +20.12 %
2 TATA ELXSI LTD. 1874.45 2194.00 +18.76 % 1. T
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3 GATI LTD. 152.25 177.80 +16.78 %
4 TATA STEEL 226.85 255.75 +12.74 % 6. T
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5 JET AIRWAYS 560.75 618.10 +10.23 %
6 RELIANCE CO. LTD. 76.00 83.65 +10.13 % R
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7 JSW STEEL 942.70 1031.55 +9.43 %
8 Essar Oil Ltd. 205.40 223.00 +8.57 % E
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9 Fortis Healthcare 162.60 176.35 +8.46 %
10 Reliance Inds. 915.95 993.10 + 8.42 % R
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11 BF Utilities Ltd. 579.40 628.00 +8.39 %
12 Havells India 282.60 305.60 +8.14 % H
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13 Finolex Cables 245.55 265.00 +7.92 %
14 Marico Ltd. 423.50 456.55 +7.80 % M
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15 Welspun Corp 104.25 112.35 +7.77 %
8. 3. AMBUJACEMENT FUTURE : AMBUJACEMENT FUTURE OPEN AT 196.60 MADE
HIGH OF 202.65 GIVES ALMOST 3% UPSIDE DIRECTION MOVEMNET ON DAILY OF IT
ALSO SUGGEST UPSIDE MOVEMENT WE CAN MADE LONG POSITION IN IT ABOVE
203 220 SL 199.
4. ASIANPAINT FUTURE : ASIANPAINT MOVES IN BULLISH TREND TODAY WE CAN
MADE LONG POSITION IN IT ABOVE 884 TGT 984 SL 870.
5. TATASTEEL FUTURE : TATASTEEL OPEN AT 256 MADE HIGH OF 257.90 MOVES IN
BULLISH TREND ON DAILY CHART OF TATASTEEL SHOWS UPSIDE RALLY WE CAN
EXPECT FURTHER UPSIDE MOVEMENT IN IT.MADE LONG POSITION IN TATASTEEL
ABOVE 258 TGT 280 SL 249.
NSE CASH
1. PNB NSE CASH : PNB IS TRADING IN A NARROW RANGE AND LONG POSITION CAN
BE MADE ON BREAKOUT OF 125.20 LEVEL ,TGT AND SL WOULD BE 135 AND 121
2. MOTHERSUMI NSE CASH : LONG POSITION CAN BE MADE ABOVE 293 FOR TGT
AND SL OF 317 AND 284
3. MRPL NSE CASH : MRPL CAN SHOW UPWARD MOMENT ABOVE THE LEVEL OF
69.20 . LONG POSITION CAN BE MADE ABOVE 69.20 FOR TGT AND SL OF 75 AND
66.70
4. DISHTV NSE CASH : LONG POSITION CAN BE MADE IN DISHTV ABOVE 98 FOR TGT
AND SL OF 106 AND 95 RESPECTIVELY.
5. FRL NSE CASH : LONG POSITION CAN BE MADE IN FRL ABOVE 145 FOR TGT AND
SL OF 157 AND 140 RESPECTIVELY.
9. NSE - WEEKLY NEWS LETTERS
TOP NEWS OF THE WEEK
Govt cuts market borrowing target for H2 FY16- The Government has cut its market
borrowings target for the second half of FY16 by INR 15,000 crore, citing the launch of
the Sovereign Gold Bond and Gold Monetisation schemes.“The gross market borrowings
have been adjusted down by INR 15,000 crore to take into account expected government
borrowings through Sovereign Gold Bonds and Gold Monetisation Scheme,” the Finance
Ministry said on Tuesday. The Centre plans to raise INR 2.49 lakh crore in the second
half of FY16 out of a gross borrowing target of INR 6 lakh crore. Of this, it plans to raise
INR 2.34 lakh crore through government securities. Gross borrowings in the first half of
FY16 totaled INR 3.51 lakh crore, of which INR 1.71 lakh crore were raised in the
quarter ended 30th September, the Finance Ministry said in its Quarterly Report on Debt
Management.
Disinvestment in FY16! Govt. garners Rs. 12,701 crore -: Government has raised Rs.
12,701 crore from stake sale in PSUs in this fiscal and lined up state-run firms in sectors
such as defence, oil and power for disinvestment to garner more capital, Finance Minister
Arun Jaitley reportedly said. he said Government sold part of its stake in REC, PFC,
Dredging Corp of India and Indian Oil Corp to raise a total of Rs. 12,701.33 crore this
year. "The government identified some CPSEs for disinvestment during the year in
sectors, which includes defence, fertiliser, heavy engineering, minerals and metals, oil,
power, steel, technical consultancy, tourism, transport services, trading and marketing,"
Jaitley was quoted as saying.
October IIP comes at five year high! Stands at 9.80% -: For the first time in five year,
Factory output, beating street estimates grew 9.8% in October on the back of strong show
in manufacturing and electricity sectors. This compares with 3.8% in September, which
was revised upwards from 3.6%. The cumulative growth for the period April-October
2015-16 over the corresponding period of the previous year stands at 4.8%. In terms of
industries, 17 out of the 22 industry groups in the manufacturing sector have shown
positive growth during the month of October 2015 as compared to the corresponding
month of the previous year. The Indices of Industrial Production for the Mining,
Manufacturing and Electricity sectors for the month of October 2015 stand at 130.0B,
188.1 and 201.6 respectively, with the corresponding growth rates of 4.7%, 10.6% and
9.0% as compared to October 2014.
10. Government allocates Pottangi mines to Nalco -: Pottangi mines located in Odhisa has
been allocated to state-run aluminium producer Nalco for manufacturing one MTPA
alumina refinery by 2020. This was informed by Vishnu Deo Sai, Minister of State for
Steel and Mines. The alumina refinery will come up at Damanjodi, Koraput district in
Odisha. The total cost of the refnery is estimated at Rs. 5,540 crore. The government of
Odisha has taken an in-principle decision in this regard, informed the minister.
Nov CPI rises to 14 month highs at 5.41% v/s 5% in October -: On account of sharp
rise in food price inflation, the country's consumer price index (CPI) based inflation
quickened to fourteen-month high of 5.41% as against 5% in October 2015 and 3.27% in
November last year. The General Indices for the month of November 2015 for Rural,
Urban and Combined stood at 128.3, 124.6 and 126.6 respectively. Correspondingly, CPI
for Rural and urban stood at 5.95% and 4.74% against 5.54% and 4.28% in October
respectively. Consumer food prices – which had weightage of about 47% in CPI index –
grew 6.07% in November 2015 as against 1.13% in November last year. The CFPI for
Rural, Urban and Combined for the same month are 132.5, 133.7 and 132.9 respectively.
India’s cement production reaches to 160 MT till Oct in FY16 -: India‟s total cement
production has reached to 160.45 million tonnes till October in the current financial year
and the dispatch have reached to 159.56 MT, said Nirmala Sitharaman, Minister of State
(IC) in the Ministry of Commerce & Industry. “The total installed capacity of cement
plants in India is 360 MT per annum. At present, the cement industry is not operating at
optimum capacity due to sluggish demand. As against the present installed capacity of
360 MT per annum, the total production during 2014-15 was only 270.93 MT per annum.
Thus, there is ample scope to meet future requirement,” said Sitharaman.
Twenty Eight oil fields to be auction under Marginal Field Policy -: To monetise the
idle oil and gas fields, under the Marginal Field Policy, the Government of India has
decided to auction 28 oil and gas fields out of the 69 small and marginal fields owned by
ONGC and Oil India. This was stated by Oil Minister Dharmendra Pradhan in Lok Sabha.
The said 28 oil fields are located in Mumbai offshore and are to be auctioned to private
players. The 69 idle oil and gas fields are owned by ONGC and Oil India, of which 28 oil
fields are in Mumbai offshore and 14 are in Krishna Godavari basin.
11. Rising Inflation might come in way of cutting rates to fuel growth -: Most of the
times, RBI is caught in a Catch-22 situation. At one end, it wants to cut rates to revive
India‟s stalling growth engine. On other end, it needs to keep rates high enough to ensure
that inflation does not go out of hand. In recent times, RBI has done well to control the
rising inflation and keeping it within acceptable range. From an average of 10% in 2008-
09, it is now closer to 5.5% for the past 1.5 years. But honestly speaking, a major part of
this low inflation has been contributed by subdued commodity prices. But one also needs
to give due credit to government for its prudent food supply management.
Exports decline for 12th straight month, down 24% in November - : Exports declined
for the 12th month in November, indicating that tepid global demand continues to be a
drag on India's economic recovery. A sharper fall in imports, however, helped keep the
country's trade deficit in check. Exports fell more than 24 per cent to $20 billion in
November, compared with $26.4 billion a year earlier, according to data released by the
commerce ministry on Tuesday. Imports declined over 30 per cent to $29.7 billion from
$42.7 billion a year ago, led by low crude oil prices and subdued imports of gold, coal
and fertilisers. This helped shrank the trade deficit to $9.7 billion from $16.2 billion.
Falling Crude Oil prices support switch from fixed to ad-valorem levy of cess - India
is lucky to witness a big fall in its import bills due to falling crude oil prices. But this fall
has created dual problems for oil exploration companies. As it is the net realization per
barrel is low due to price fall. In addition to that, explorers also need to pay a fixed cess
of Rs 4500 per ton of crude oil to the government. This cess was fixed and has remained
constant since 2012, when prices had breached $100. But with prices now close to
breaching decade-lows of $35, this fixed cess forms almost 33% of the total landed cost
of the fuel.
Indian drug market crosses Rs. 1 lk crore mark - On the back of new drugs launched
and enhanced R&D for drug discovery, the Indian pharmaceutical market has crossed Rs.
1,00,000 crore mark for the first time in November, according to a latest report by IMS
Health.The Indian pharmaceutical market has grown by 12%. The report further notes
that medicines for infections, heart ailments and gastrointestinal accounted for nearly
38% of market share. In November, the Indian pharmaceutical market stood at Rs.
1,00,115 crore, of which retail sector accounted for Rs. 84,279 crore.
12. Fitch: U.S. Fed Rate rise may add to Sovereign Challenges - The U.S. Federal
Reserve's decision to increase interest rates is in line with Fitch Ratings' expectation that
the U.S. central bank would start to normalise monetary policy by the end of 2015. This
process has been widely expected and rate increases will be gradual and to a moderate
level by historical norms, but U.S. tightening, divergent global monetary policies, and
potential market reactions may add to some of the challenges facing Fitch-rated
sovereigns, chiefly in emerging markets.On Dec. 16, the Fed raised the target range of the
Federal Funds rate for the first time since 2006, by 25bps to 0.25%-0.50%. We anticipate
three further 25bps rises in the rate through 2016, taking the upper end of the range to
1.25%.
GST delay will hurt India’s GDP by 1.5%-2% - Industry and foreign investors seems
to be losing their patience now. The unnecessary delay in Goods and Services Tax due to
opposition‟s rhetoric is hurting Indian economy more than the political party in power.
Hence quicker the rollout, better it is. There is no doubt about the success of GST. World
over, it is the standard way of taxation. It unifies a complex tax system and since it is
simpler to implement, it creates a broader tax base and efficient taxation too.
Rs. 1,700 crore a day required to build India’s infrastructure: CRISIL - The funding
requirement for building India‟s infrastructure is large. We need close to Rs 31 lakh crore
over the next five years to provide uninterrupted power supply to our homes and
factories, and improve our roads, telecom, transport and other urban infrastructure. That
translates into more than Rs 6 lakh crore of investments every year or around Rs 1,700
crore every day from April 2015 to March 2020.
Govt eyeing 30% rise in FDI in coming years - The Government is targeting a 30%
increase in the annual inflow of foreign direct investment in the next few years,
Department of Industrial Policy & Promotion Secretary Amitabh Kant said on Thursday.
FDI inflows touched US$47.50 billion between June 2014 and October 2015 compared
with US$35.09 billion in the previous 17 months.
“Since the announcement of Make in India, we have been able to get significant
investments. After the launch of Make in India, FDI in the last 17 months, as compared
with the previous 17 months, has grown by about 35%,” Kant said.
US to double H1B, L1 visa fee for Indian firms - US Congress doubled special fee on
13. the popular H-1B and L-1 visas raising it up to USD 4,500 to fund a 9/11 healthcare act
and biometric tracking system that will hit Indian IT companies. Congressional leaders,
while agreeing on the USD 1.1 trillion spending bill, has decided to impose a special fee
of USD 4,000 on certain categories of H-1B visas and USD 4,500 on L-1 visas. The US
House of Representative is slated to vote on the USD 1.1 trillion spending bill deal.
TOP ECONOMY NEWS
Govt approves 7 FDI proposals worth Rs. 5240.35 Crore - :Based on the
recommendations of Foreign Investment Promotion Board in its 227th meeting held on
9th November 2015, the Government has approved Seven proposals of Foreign Direct
Investment amounting to Rs. 5240.35 crore.
Will the Real Estate Bill finally become a reality -: Several amendments to the Real
Estate Bill, 2015, suggested by the select committee of Rajya Sabha, have now been
accepted by the Union Cabinet. This is a major step towards introducing the amended bill
in the Rajya Sabha. The bill will bring in much-needed transparency and accountability in
the real estate sector. It will create a much-needed consumer right protection umbrella for
buyers of real estate, thereby increasing consumer confidence as well as creating lasting
developer brands strong on quality and timely delivery of their projects.
Govt working on coal allotment procedure for commercial mining - The procedure
for allocating coal blocks for commercial mining is under the government's consideration,
Parliament was informed.
Sharp China slowdown would hit global growth hard: Fitch -:A sharp slowdown in
China's GDP growth rate Estimated to 2.3% during 2016-2018 would disrupt global trade
and hinder growth, with significant knock-on effects for emerging markets and global
corporates, according to a study by Fitch Ratings. In turn, this would keep short-term
interest rates and commodity prices lower for longer. This hypothetical scenario does not
reflect Fitch's current expectations for China's growth, but is designed to test credit
connections between China and the rest of the world.
14. ASSOCHAM : November WPI is giving positive signal to the industry -: The
estimates of low wholesale price inflation in November 2015 is in line with the industry
expectation and needs to be looked upon at by caution since it‟s in the negative territory
for last 13th month, said ASSOCHAM. The annual rate of inflation, based on monthly
WPI, stood at (-1.99%) for the month of November, 2015 as compared to (-0.17% ) that
was seen during the corresponding month of the previous year. WPI decline seems to
have been mainly been contributed by a softening of potato, minerals, high speed diesel,
sugar and iron & semis. The General Secretary of ASSOCHAM said.
13,204 MW of green power capacity added in 12th Plan till October - :A power
generation capacity of 13,204 MW from non-conventional or clean sources like solar and
wind has been added during the 12th Plan till October-end, the Parliament was informed.
Stainless steel body says anti-dumping duty will have negligible impact -: Indian
Stainless Steel Development Association has said that the recent imposition of Anti
Dumping Duty on Cold Rolled flat products will have a negligible impact as the import
trend has now shifted to higher widths. It was reacting to government decision to impose
ADD on CR flat products of widths between 600-1250 mm for five years after the sunset
review from China, Japan, South Korea, Malaysia, South Africa, Malaysia, Taiwan, EU
and USA.
Call Drop: COAI Blames Delay in Clearances for Poor Services -: Telecom industry
body COAI said that due to delay in getting clearances from the Centre and the state
authorities, they could set up only 20,000-25,000 towers in last two years against
requirement of 0.1mn sites. The industry body also ascribed call drop issue to heavy
usage of data on mobile phones in the "absence" of alternative infrastructure to support
growing data demand.
Smart strategies for PEs Investing in Real Estate -: Private Equity funds, famously
known as PEs are invested heavily in the Indian real estate. Even though the sector is
emerging only gradually from its slowdown, this could be the golden period of PE
investments to invest further, as the opportunities being offered are humungous.
FM expects GDP growth in range of 7-7.5% in FY16 -: Finance Minister Arun Jaitley
said that it expect GDP growth in range Of 7-7.5% In FY16. The growth in private sector
15. key to economic growth. We hope to stick to fiscal deficit target of 3.9% in FY16, says
FM. He reported that IMF has been lowering estimates of global growth.
GST is a game changing reform: Arvind Subramanian - Chief Economic Adviser
Arvind Subramanian reportedly said the spate of reforms in direct and indirect taxes will
help India transform into an efficient and clean system. Simplifying and eliminate
corporate taxes as well as cleaning up of legacy issues will continue going forward,
Arvind Subramanian was quoted as saying. Arvind Subramanian reported "We can really
change the image of the country which was until recently practicing tax terrorism to one
which really has a clean, efficient, modern broad-based tax system for the future.
After 9 years, Fed finally hikes interest rates - After 9 years, the Federal Reserve has
hiked interest rates indicating that the US economy is in better shape recovering from the
damage of the 2007-2009 financial crisis.
The US central bank's policy-setting committee raised the range of its benchmark interest
rate by a quarter of a per centage point to between 0.25 per cent and 0.50 per cent.
Arun Jaitley renews call to remove hurdles in road to GST - Indian industry – FICCI,
CII, ASSOCHAM and PHDCCI and trade represented by the Confederation of All India
Traders, today rose as one voice, giving a clarion call to all political parties to pass the
long pending Constitution Amendment Bill to give effect to the Goods & Services Tax in
the current session of Parliament so that the game-changing tax reform measure can come
into force at the earliest. A resolution to this effect was adopted by a voice vote by a
packed-to-capacity Convention Hall of Hotel Ashok here at an interactive session with
Arun Jaitley, Union Minister for Finance and Corporate Affairs, on „GST in India.
Government auctioned 31 Coal Mines: Piyush Goyal - Under the provisions of the
Coal Mines Act, 2015, the Central Government has successfully auctioned 31 Coal
Mines. This was stated by Piyush Goyal, Minister of State for Power, Coal & New and
Renewable Energy in a written reply to a question in the Lok Sabha.
US Federal Reserve decision underlines strong macroeconomic fundamentals of the
Indian Economy: FM - The US Federal Reserve raised the target range for the federal
funds rate by 25 to 50 bps yesterday. Responding to the said decision of the Federal
Reserve, the Finance Ministry states that this marks the beginning of gradual withdrawal
16. of the accommodative monetary policy stand adopted since 2006. Going forward, the
actions of the US Federal Reserve are expected to be cautious and data driven. The
Ministry in a Statement here further stated that the Indian Stocks and Forex Markets have
reacted well. Both the benchmark market indices actually rose in early trade today and
continue to trade in the green.
TOP CORPORATE NEWS -
Coal India Ltd. -: Opposing an immediate stake sale in Coal India Ltd, foreign investors
have told the Finance Ministry that further disinvestment in the coal miner should be put
off as the current market valuation is low.
Indian Oil Corporation Limited -: IOC will invest Rs 1.75 Lakh Crore over the next
seven years on expanding refinery capacity, building petrochemical plants and laying
pipelines.
Cairn india Ltd. -: Cairn India is set to launch the world's largest enhanced oil recovery
programme, investing about $760mn in the site where its first oil was discovered in the
Thar desert of Rajasthan.
Tata Power Company Ltd. -: Tata Power said its 120-MW joint venture Itezhi Tezhi
Hydro Power Project in Zambia has received Clean Development Mechanism nod from
United Nations Framework Convention on Climate Change.
IL&FS Engineering and Construction Company Limited -: IL&FS Engineering and
Construction Company Ltd has received a Letter of Acceptance from Metro-Link Express
for Gandhinagar and Ahmedabad Company Ltd for the construction of a viaduct corridor.
Tech Mahindra Limited -: Tech Mahindra, a listed subsidiary of Mahindra & Mahindra,
has agreed to acquire Italian car designer Pininfarina SpA, which has designed cars for
Ferrari, Maserati, Rolls-Royce and Cadillac.
Aurobindo Pharma Ltd. - Aurobindo Pharma said it has received final approval from
the USFDA to manufacture and market two drugs used for treating diarrhoea and allergy.
17. Jet Airways Ltd. -: Jet Airways India's second biggest airline by marketshare, Monday
announced it will shift its western hub to Amsterdam from Brussels, aligning operations
with strategic partner Etihad Airways.
Reliance Communications -: RCom. impending deal for tower asset sale would lower
its consolidated debt by 60 per cent, a report by CLSA said today.
Infosys Ltd. -: Infosys is planning to partner with Silicon Valley's storied venture capital
firm 500 Startups by investing in one of its funds.
HDFC - HDFC has agreed to sell 12,33,57,262 equity shares of Rs .10 each of HDFC
ERGO General Insurance Company, a subsidiary of HDFC, representing 22.92% of
HDFC ERGO's issued and paid up capital to ERGO International AG, Dusseldorf at a
price of Rs 90.973 per share).
Natco Pharma Limited -: Natco Pharma has got approval from the Drugs Controller
General of India to sell generic version of Daclatasvir, which is used for treatment of
chronic hepatitis C.
Tata Steel Ltd. -: Tata Steel said it has launched two new innovative products - a high
strength variant of steel hollow sections called Tata Structura 355, which has an enhanced
yield strength and an additional variant with fire-resistance properties.
PowerGrid Corporation of India - The RBI has now allowed foreign institutional
investors and registered foreign portfolio investors to buy more shares of PowerGrid
Corporation of India.
Adani Group -: An Australian court rejected a bid by environmentalists to stop Adani
Group‟s 16.5bn dollar controversy- hit coal mine project, but said that the firm has
exaggerated the economic benefits including the amount of jobs and royalties.
Reliance Infra - Anil Ambani-led Reliance Infrastructure has acquired an additional 17%
stake in Pipavav Defence for an estimated Rs. 850 crore through an open offer..
18. Tata Consultancy Services Ltd. - TCS announced signing a multi-year, multi-million
dollar contract with German carrier Lufthansa. As part of the deal, TCS will provide
testing services and help improve the quality of services of the airline's technology
operations.
ONGC Ltd. - A one-man committee has been constituted to look into acts of omission
and commission and recommend compensation to ONGC whose natural gas from Bay of
Bengal block had flowed to adjoining fields of Reliance Industries.
Coal India Ltd. - Coal India has decided to become the title sponsor of the 2016 season
of the Hockey India League. With the first game of the season commencing from January
next year, the company will be spending about Rs. 147.3mn as sponsorship payment.
Reliance Communication Ltd. - Vodafone and Reliance Communications are likely to
sign 3G and 2G intra-circle roaming agreements across five circles, including Bihar, West
Bengal and Odisha. The two companies are also in advanced talks to share 3G spectrum
in Delhi and Mumbai in order to reduce their operational expenses as well as improve
quality of service.
State Bank Of India - SBI said a meeting of its Committee of Directors is scheduled on
December 21 to discuss the modalities of raising equity capital, either in the domestic or
overseas markets or both, and also for mopping up additional non-equity capital by way
of bonds denominated either in dollars or rupees, as per media reports.
CESC Limited - The West Bengal Electricity Regulatory Commission has asked CESC
Ltd to map the existing generator sets in its command area in the city and its surroundings
for possible mitigation of sudden shortfall in available power in the grid through back-up
supply.
Maruti Suzuki India - Maruti Suzuki India Ltd has won shareholder approval to source
cars from a Gujarat plant to be built by parent Suzuki Motor, its chairman said.
19. TOP BANKING AND FINANCIAL NEWS OF THE WEEK
State Bank of India - SBI will issue EMV chip and pin based debit cards to its new
customers to ensure enhanced secure transactions. EMV chip and pin feature protects
against skimming and card transaction frauds. All SBI customers opening accounts with
the bank hence forth will receive this EMV chip and pin-based debit cards. Existing
customers can also request for upgrading their card by visiting their home branch against
payment of nominal fee", the bank said in a statement.
IndusInd Bank to expand investment banking division - IndusInd Bank Ltd. is
expanding its investment banking division with a focus on private equity and mergers &
acquisition advisory, The bank is in early talks with several global firms for potential tie-
ups to expand outbound advisory activities, says Roopa Satish, Country Head at IndusInd
Bank.“With the country witnessing increasing foreign institutional investment inflows,
and the expected recovery in the capital markets, we believe it is the right time to start the
advisory business,” according to Satish.
HDFC Bank bags FinanceAsia award for Best Equity Deal in Asia for 2015 - HDFC
Bank‟s equity offering to raise $1.6 billion through concurrent American Depository
Shares/Qualified Institutional Placement in February this year has been adjudged the Best
Equity Deal in Asia Award for 2015 by FinanceAsia.
Indian banks will get more resilient: Moody's - Growth in Indian banking system will
be more resilient, Moody's Investors Service reportedly said. Slower GDP growth is most
pronounced for small and open economies such as Taiwan, Singapore and Hong Kong,"
the rating agency said in a report. Report says that the operating environment is becoming
more challenging in most Asia-Pacific banking systems, according to Moody's.
RBI Pulls up Banks on Bad debts tag -Reserve Bank of India governor Raghuram
Rajan on Monday pulled up banks for lack of consistency in recognizing the same bad
loan among different lenders. The central bank has detected that some lenders have
continued to classify a loan as a standard asset even when their peers have made
provisions for bad debt.
20. United Bank of India to raise Rs. 1500 cr via Preferential Allotment - United Bank of
India has announced that at the meeting of the Board of Director scheduled to be held on
December 18, 2015, the proposal to raise Equity Capital by Preferential Allotment up to
Rs. 1500cr including premium to the President of India on behalf of the Central
Government or Life Insurance Corporation of India or funds therefore such other
investors as may be decided provided that the Central Government holding at any time
shall not fall below 51% of the equity capital of the Bank, shall inter-alia be taken up for
consideration.
RBI announces marginal cost of funds methodology for Interest rate on Advances -
The Reserve Bank of India released the final guidelines on computing interest rates on
advances based on the marginal cost of funds. The guidelines come into effect from April
1, 2016. Apart from helping improve the transmission of policy rates into the lending
rates of banks, these measures are expected to improve transparency in the methodology
followed by banks for determining interest rates on advances.
China, US rates pressures build for APAC Banks in 2016: Fitch - Banking sectors
within the Asia-Pacific region are likely to face a more challenging year ahead as
financial systems adjust to slowing growth in China and the higher US interest rates, says
Fitch Ratings in the agency's 2016 Outlook Report for the region.
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