Equity Research Report 28 November 2016 Ways2Capital

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-andhalf 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

8189

8061

7933

R1

PP

S1

S2

8236

8043

7850

7464

R1

PP

S1

S2

7479

5973

S1

S2

18194

17820

S1

S2

8445 WEEKLY

R2 8622

MONTHLY

R2 10491

8985

8232

S2 7877

BANK NIFTY DAILY

R2

R1

18942

WEEKLY

MONTHLY

PP

18568

18381

R2

R1

21051

19395

R2

R1

PP

S1

S2

21083

18985

16887

12691

25279

PP 18657

50 DAYS

17739

MOVING AVERAGE

21 DAYS

100 DAYS

NIFTY

8273

8446

BANK NIFTY

19091

19243

PARABOLIC SAR

DAILY

WEEKLY

NIFTY

8510

8686

7670

BANK NIFTY

18352

20309

15629

8442

16083

200 DAYS 8304

18951

MONTHLY

18319

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

S2

ACC ADANI PORTS

EQ EQ

1345 272

1326 268

1312 262

1293 258

1279 252

AMBUJACEM ASIAN PAINT AXISBANK BAJAJ-AUTO BANKBARODA BPCL BHEL BHARTIARTL BOSCH LTD BHARTI INFRATEL CIPLA COALINDIA CAIRN INDIA LTD DRREDDY GAIL GRASIM HCLTECH HDFC HDFCBANK HEROMOTOCO HINDALCO HINDUNILVR ICICIBANK ITC INDUSIND BANK INFY IDEA CELLULAR KOTAKBANK LT M&M MRF MARUTI SUZUKI ONGC NTPC RCOM RELCAPITAL RELIANCE RELINFRA RPOWER SBIN SSLT( VEDL) SUNPHARMA TATA MOTORSDVR TCS TATAMOTORS TATAPOWER TATASTEEL UNIONBANK YES BANK LIMITED ZEEL

EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ EQ

208 960 478 2663 174 652 129 310 19214 366 581 308 252 3276 429 840 836 1286 1214 3125 187 845 265 234 1103 1018 76 766 1398 1194 48002 4969 281 166 36 437 1002 469 40 267 232 737 298 2381 464 71 422 156 1200 460

205 953 474 2638 170 646 127 305 19029 360 572 305 248 3221 422 831 817 1269 1200 3091 183 838 262 231 1087 996 74 758 1382 1186 47566 4919 280 163 35 434 997 463 39 263 228 724 295 2340 459 70 415 154 1182 449

202 945 470 2620 168 640 126 302 18889 358 560 303 244 3149 413 817 794 1222 1179 3059 181 832 260 227 1066 963 73 751 1359 1169 47339 4856 277 159 35 428 991 457 39 261 223 705 287 2266 451 70 406 153 1153 440

199 938 466 2595 164 634 124 297 18704 352 551 300 240 3094 406 808 775 1192 1165 3025 177 825 257 224 1050 941 71 743 1343 1161 46903 4806 276 156 34 425 986 451 38 257 219 692 284 2225 446 69 399 151 1135 429

196 930 462 2577 162 628 123 294 18564 350 539 298 236 3022 397 794 752 1145 1144 2993 175 819 255 220 1029 908 70 736 1320 1144 46676 4743 273 152 34 419 980 445 38 255 214 673 276 2151 438 69 390 150 1106 420

TOP 15 ACHIEVERS SR.NO

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

//

PREV CLOSE

SCRIPT NAME

CMP

TECH MAHINDRA

445

487

HINDALCO INDUS

165

180

TCS

2125

2300

LUPIN LIMITED

1417

1508

WIPRO LIMITED

437

464

INFOSYS

920

977

TATA STEEL

385

408

HCL TECH

763

801

ASIAN PAINT

908

945

HUL

802

833

HERO MOTOCORP

2935

3045

SUN PHARMA

688

714

IDEA CELLULAR

71

73

ULTRATECH CEM

3392

3497

CIPLA

550

565

% CHANGE

+ 9.42 % + 9.16 % + 8.25 % + 6.41 % + 6.31 % + 6.25 % + 6.14 % +4.99 % + 4.10 % + 3.83 % +3.77 % +3.67 % +3.59 % + 3.08 % + 2.56 %

TOP 15 LOOSERS 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

1167

-1.11 %

1180

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.

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 201415 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 justreleased 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 highvalue 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 worldclass 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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